CITY OF COSTA MESA
REGULAR CITY COUNCIL AND HOUSING AUTHORITY*
Agenda - Final Amended
City Council Chambers
77 Fair Drive
6:00 PMTuesday, April 15, 2025
*Note: All agency memberships are reflected in the title "Council Member" 4:00 P.M. Closed Session
NOTE THE FOLLOWING ITEM HAS BEEN REMOVED FROM THE AGENDA:
NEW BUSINESS ITEM NO. 1: REQUEST FOR CITY COUNCIL DIRECTION REGARDING
THE RESEARCH FOR POTENTIAL DEVELOPMENT OF AN ORDINANCE ESTABLISHING
STAFFING AND OPERATIONAL STANDARDS FOR SELF-CHECKOUT OPERATIONS (SCOS) IN GROCERY RETAIL STORES
The City Council meetings are presented in a hybrid format, both in-person at City Hall and as a courtesy virtually via Zoom Webinar. If the Zoom feature is having technical difficulties or experiencing any other critical issues, and unless required by the Brown Act, the meeting will continue in person.
TRANSLATION SERVICES AVAILABLE / SERVICIOS DE TRADUCCIÓN DISPONIBLE Please contact the City Clerk at (714) 754-5225 to request language interpreting services for City meetings. Notification at least 48 hours prior to the meeting will enable the City to make arrangements.
Favor de comunicarse con la Secretaria Municipal al (714) 754-5225 para solicitar servicios de interpretación de idioma para las juntas de la Ciudad. Se pide notificación por lo mínimo 48 horas de anticipación, esto permite que la Ciudad haga los arreglos necesarios.
Members of the public can view the City Council meetings live on COSTA MESA TV (SPECTRUM CHANNEL 3 AND AT&T U-VERSE CHANNEL 99) or
http://costamesa.granicus.com/player/camera/2?publish_id=10&redirect=true and online at youtube.com/costamesatv.
Closed Captioning is available via the Zoom option in English and Spanish.
1 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
As a courtesy, the public may participate via the Zoom option.
Zoom Webinar: (For both 4:00 p.m. and 6:00 p.m. meetings) Please click the link below to join the webinar:
https://us06web.zoom.us/j/81879579049?
pwd=_XoNBT2uciL7zrDsfj4A9Q9srLgExg.bQEU-le6VvXjPDeL
Or sign into Zoom.com and “Join a Meeting”
Enter Webinar ID: 818 7957 9049/ Password: 608584
• If Zoom is not already installed on your computer, click “Download & Run Zoom” on the launch page and press “Run” when prompted by your browser. If Zoom has previously been installed on your computer, please allow a few moments for the application to launch automatically.
• Select “Join Audio via Computer.”
• The virtual conference room will open. If you receive a message reading, “Please wait for the host to start this meeting,” simply remain in the room until the meeting begins.
• During the Public Comment Period, use the “raise hand” feature located in the participants’ window and wait for city staff to announce your name and unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.
Participate via telephone: (For both 4:00 p.m. and 6:00 p.m. meetings) Call: 1 669 900 6833 Enter Webinar ID: 818 7957 9049/ Password: 608584 During the Public Comment Period, press *9 to add yourself to the queue and wait for city staff to announce your name/phone number and press *6 to unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.
Note, if you have installed a zoom update, please restart your computer before participating in the meeting.
Additionally, members of the public who wish to make a written comment on a specific agenda item, may submit a written comment via email to the City Clerk at [email protected].
Any written communications, photos, or other materials for copying and distribution to the City Council that are 10 pages or less, can be e-mailed to [email protected], submitted to the City Clerk’s Office on a flash drive, or mailed to the City Clerk’s Office. Kindly submit materials to the City Clerk AS EARLY AS POSSIBLE, BUT NO LATER THAN 12:00 p.m. on the day of the meeting.
Comments received by 12:00 p.m. on the day of the meeting will be provided to the City Council, made available to the public, and will be part of the meeting record.
2 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
Please know that it is important for the City to allow public participation at this meeting. If you are unable to participate in the meeting via the processes set forth above, please contact the City Clerk at (714) 754-5225 or [email protected] and staff will attempt to accommodate you. While the City does not expect there to be any changes to the above process for participating in this meeting, if there is a change, the City will post the information as soon as possible to the City’s website.
Note that records submitted by the public will not be redacted in any way and will be posted online as submitted, including any personal contact information. All pictures, PowerPoints, and videos submitted for display at a public meeting must be previously reviewed by staff to verify appropriateness for general audiences. This includes items submitted for the overhead screen during the meeting. Items submitted for the overhead screen should be 1 page and provided to the City Clerk prior to the start of the meeting. No links to YouTube videos or other streaming services will be accepted, a direct video file will need to be emailed to staff prior to each meeting in order to minimize complications and to play the video without delay. The video must be one of the following formats, .mp4, .mov or .wmv. Only one file may be included per speaker for public comments, for both videos and pictures. Please e-mail to the City Clerk at [email protected] NO LATER THAN 12:00 Noon on the date of the meeting. If you do not receive confirmation from the city prior to the meeting, please call the City Clerks office at 714-754-5225.
Note regarding agenda-related documents provided to a majority of the City Council after distribution of the City Council agenda packet (GC §54957.5): Any related documents provided to a majority of the City Council after distribution of the City Council Agenda Packets will be made available for public inspection. Such documents will be posted on the city’s website and will be available at the City Clerk's office, 77 Fair Drive, Costa Mesa, CA 92626.
All cell phones and other electronic devices are to be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to conduct a phone conversation.
Free Wi-Fi is available in the Council Chambers during the meetings. The network username available is: CM_Council. The password is: cmcouncil1953.
As a LEED Gold Certified City, Costa Mesa is fully committed to environmental sustainability.
A minimum number of hard copies of the agenda will be available in the Council Chambers.
For your convenience, a binder of the entire agenda packet will be at the table in the foyer of the Council Chambers for viewing. Agendas and reports can be viewed on the City website at https://costamesa.legistar.com/Calendar.aspx. Las agendas y los informes se pueden ver en español en el sitio web de la Ciudad en
https://www.costamesaca.gov/trending/current-agendas/spanish-city-council-agendas.
3 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
In compliance with the Americans with Disabilities Act, Assistive Listening headphones are available and can be checked out from the City Clerk. If you need special assistance to participate in this meeting, please contact the City Clerk at (714) 754-5225. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102.35.104 ADA Title II].
En conformidad con la Ley de Estadounidenses con Discapacidades (ADA), aparatos de asistencia están disponibles y podrán ser prestados notificando a la Secretaria Municipal. Si necesita asistencia especial para participar en esta junta, comuníquese con la oficina de la Secretaria Municipal al (714) 754-5225. Se pide dar notificación a la Ciudad por lo mínimo 48 horas de anticipación para garantizar accesibilidad razonable a la junta. [28 CFR
35.102.35.104 ADA Title II].
4 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
CLOSED SESSION - 4:00 P.M.
CALL TO ORDER
ROLL CALL
PUBLIC COMMENTS Members of the public are welcome to address the City Council only on those items on the Closed Session agenda. Each member of the public will be given a total of three minutes to speak on all items on the Closed Session agenda.
CLOSED SESSION ITEMS:
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: Schaefer v. Costa Mesa
Orange County Superior Court Case No. 30-2022-01286737-CU-PO-CJC
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: DBO Investments CM, LLC v. Costa Mesa
Orange County Superior Court Case No. 30-2023-01360125-CU-CR-NJC.
3. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Pursuant to California Government Code Section 54956.8
APN: 140-041-81
Property: 3333 Susan Street, Costa Mesa, CA 92626
Agency Negotiator: Lori Ann Farrell Harrison, City Manager Negotiating Parties: Legacy Partners
Under Negotiation: Price and Terms of Payment
5 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
REGULAR MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY APRIL 15, 2025 – 6:00 P.M.
JOHN STEPHENS
Mayor
MANUEL CHAVEZ ANDREA MARR Mayor Pro Tem - District 4 Council Member - District 3
ARLIS REYNOLDS LOREN GAMEROS Council Member - District 5 Council Member - District 2
JEFF PETTIS MIKE BULEY Council Member - District 6 Council Member - District 1
KIMBERLY HALL BARLOW LORI ANN FARRELL HARRISON City Attorney City Manager
CALL TO ORDER
NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE
MOMENT OF SOLEMN EXPRESSION
[Per Council Policy 000-12, these presentations are made by community volunteers stating their own views. The City Council disclaims any intent to endorse or sponsor the views of any speaker.]
ROLL CALL
CITY ATTORNEY CLOSED SESSION REPORT
PRESENTATIONS:
1. Presentation: Active Transportation Committee
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Comments on Presentations and Consent Calendar items may also be heard at this time. Comments are limited to 3 minutes, or as otherwise directed.
6 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Each council member is limited to 3 minutes. Additional comments will be heard at the end of the meeting.
1. Council Member Marr
2. Council Member Reynolds
3. Council Member Pettis
4. Council Member Buley
5. Council Member Gameros
6. Mayor Pro Tem Chavez
7. Mayor Stephens
REPORT – CITY MANAGER
REPORT – CITY ATTORNEY
CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine and will be acted upon in one motion. There will be no separate discussion of these items unless members of the City Council, staff, or the public request specific items to be discussed and/or removed from the Consent Calendar for discussion.
1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL
ORDINANCES AND RESOLUTIONS
25-253
RECOMMENDATION:
City Council and Housing Authority approve the reading by title only and waive further reading of Ordinances and Resolutions.
2. READING FOLDER 25-254
RECOMMENDATION:
City Council receive and file Claims received by the City Clerk and authorize staff to reject any and all Claims: Karen Franco, Gail Kay, Nona Wolverton, Masoon Yazarlou.
7 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
3. ADOPTION OF WARRANT RESOLUTION 25-235
RECOMMENDATION:
City Council approve Warrant Resolution No. 2732.
1. Summary Check Registration 3-20-25
2. Summary Check Registration 3-25-25
Attachments:
4. MINUTES 25-255
RECOMMENDATION:
City Council approve the minutes of the regular meeting of April 1, 2025.
1. 04-01-2025 Draft MinutesAttachments:
5. 2024 2015-2035 GENERAL PLAN ANNUAL PROGRESS REPORT
(APR)
25-220
RECOMMENDATION:
Staff recommends the City Council approve the 2024 Annual Progress Report for the 2015-2035 Costa Mesa General Plan for submittal to the State Office of Land Use and Climate Innovation (LUCI) [formerly known as the Office of Planning and Research (OPR)], and State Department of Housing and Community Development (HCD).
Agenda Report
1. 8th Edition General Plan Annual Progress Report 2024 Attachments:
AT THIS TIME COUNCIL WILL ADDRESS ANY ITEMS PULLED FROM THE CONSENT
CALENDAR
------------------------------END OF CONSENT CALENDAR-------------------------------
8 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
PUBLIC HEARINGS:
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)
1. APPEAL OF THE PLANNING COMMISSION ’S DECISION TO
APPROVE A CONDITIONAL USE PERMIT (CUP) PCUP- 24-0011 TO
OPERATE A RETAIL CANNABIS STOREFRONT BUSINESS WITH
DELIVERY LOCATED AT 1912 HARBOR BOULEVARD ( “GREEN
MART”), IN THE LOCAL BUSINESS DISTRICT (C1)
25-228
RECOMMENDATION:
Staff recommends the City Council:
1. Find that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1) Existing Facilities.
2. Uphold the Planning Commission ’s decision to approve Conditional Use Permit PCUP-24-0011 based on findings of fact and subject to the conditions of approval as contained in the Resolution.
Agenda Report
1. Resolution
2. Appeal Application
3. Supplemental Information
4. Planning Commission Resolution
5. Planning Commission Agenda Report
6. Planning Commission Public Comments
7. Planning Commission Draft Minutes
8. City Council Public Comments
Attachments:
9 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
2. RESOLUTION FOR APPROVAL OF THE DRAFT RELOCATION PLAN AND RELOCATION ASSISTANCE FOR TENANTS OF 778 SHALIMAR
DRIVE
25-248
RECOMMENDATION:
Staff recommends the City Council:
1. Adopt proposed Resolution No. 25-XX approving the draft Relocation Plan for the Shalimar Park Expansion Project ’s acquisition of real property located at Assessor ’s Parcel Number 424-051-23 ( 778 Shalimar Drive) and appropriating funds thereof.
2. Authorize an appropriation of $203,717 in the Housing Trust Fund (Fund 222) for relocation assistance.
3. Authorize the City Manager, City Attorney, and Finance Director to implement the approved Relocation Program.
1. Draft Relocation Plan - English
2. Draft Relocation Plan - Spanish
3. Draft Resolution 2025-XX Approving a relocation plan for 778 Shalimar tenants and appropriating funds thereof
Attachments:
OLD BUSINESS:
1. APPOINTMENT TO THE ANIMAL SERVICES COMMITTEE AND
CONFIRMING THE ORANGE COUNTY MODEL ENGINEERS (OCME)
LIAISON TO THE FAIRVIEW PARK STEERING COMMITTEE
25-250
RECOMMENDATION:
Staff recommends:
1. Mayor Pro Tem Chavez make one ( 1) member appointment to the Animal Services Committee with a term expiration of April 2027.
2. The City Council confirm Hank Castignetti as the Orange County Model Engineers (OCME) City liaison to the Fairview Park Steering Committee.
1. Animal Services Committee ApplicationsAttachments:
10 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda - Final Amended April 15, 2025
NEW BUSINESS:
1. REQUEST FOR CITY COUNCIL DIRECTION REGARDING THE RESEARCH FOR POTENTIAL DEVELOPMENT
OF AN ORDINANCE ESTABLISHING STAFFING AND OPERATIONAL STANDARDS FOR SELF-CHECKOUT
OPERATIONS (SCOS) IN GROCERY RETAIL STORES
ADDITIONAL COUNCIL /BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND
SUGGESTIONS
ADJOURNMENT
11 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-253 Meeting Date: 4/15/2025
TITLE:
PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND
RESOLUTIONS
RECOMMENDATION:
City Council and Housing Authority approve the reading by title only and waive further reading of Ordinances and Resolutions.
12 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-254 Meeting Date: 4/15/2025
TITLE:
READING FOLDER
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:
City Council receive and file Claims received by the City Clerk and authorize staff to reject any and all Claims: Karen Franco, Gail Kay, Nona Wolverton, Masoon Yazarlou.
13 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-235 Meeting Date: 4/15/2025
TITLE:
ADOPTION OF WARRANT RESOLUTION
DEPARTMENT: FINANCE DEPARTMENT
PRESENTED BY: CAROL MOLINA, FINANCE DIRECTOR
CONTACT INFORMATION: CAROL MOLINA, FINANCE DIRECTOR AT (714) 754-5243 RECOMMENDATION:
City Council approve Warrant Resolution No. 2732.
BACKGROUND:
In accordance with Section 37202 of the California Government Code, the Director of Finance or their designated representative hereby certify to the accuracy of the following demands and to the availability of funds for payment thereof.
FISCAL REVIEW:
Funding Payroll Register No. 25-07 for $3,938,455.13, and City operating expenses for $3,660,012.18.
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 49
50 51
52 53
54 55
56 57
58 59
60 61
62 63
64 65
66 67
68 69
70 71
72 73
74 75
76 77
78 79
80 81
82 83
84 85
86 87
88 89
90 91
92 93
94 95
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-255 Meeting Date: 4/15/2025
TITLE:
MINUTES
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:
City Council approve the minutes of the regular meeting of April 1, 2025.
96 Minutes – Regular Meeting April 1, 2025 Page 1 of 12
REGULAR CITY COUNCIL AND HOUSING AUTHORITY
APRIL 1, 2025 - 6:00 P.M. - MINUTES
CALL TO ORDER – The Closed Session meeting was called to order by Mayor Stephens at 4:00 p.m.
ROLL CALL
Present: Council Member Buley, Council Member Gameros, Council Member Marr (Arrived 4:05 p.m.), Council Member Pettis, Council Member Reynolds (Arrived 4:01 p.m.), Mayor Pro Tem Chavez, and Mayor Stephens.
Absent: None.
PUBLIC COMMENTS – NONE.
CLOSED SESSION ITEMS:
1. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to California Government Code Section 54957.6, (a) Agency Designated Representative: Lori Ann Farrell Harrison, City Manager Name of Employee Organization: Costa Mesa City Employees Association (CMCEA).
2. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to California Government Code Section 54957.6, (a) Agency Designated Representative: Lori Ann Farrell Harrison, City Manager Name of Employee Organization: Costa Mesa Police Management Association (CMPMA).
3. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to California Government Code Section 54957.6, (a) Agency Designated Representative: Lori Ann Farrell Harrison, City Manager Name of Employee Organization: Costa Mesa Police Association (CMPA).
4. Public Employment, Workers’ Compensation Claim
Pursuant to California Government Code Section 54956.9 (b)(1) WCAB NO. ADJ17537318, ADJ17537816
5. Public Employment, Workers’ Compensation Claim
Pursuant to California Government Code Section 54956.9 (b)(1) WCAB NO. ADJ18957837
City Council recessed at 4:02 p.m. for Closed Session.
97 Minutes – Regular Meeting April 1, 2025 Page 2 of 12 Closed Session adjourned at 5:08 p.m.
CALL TO ORDER - The Regular City Council and Housing Authority meeting was called to order by Mayor Stephens at 6:00 p.m.
NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE – A video was played of the National Anthem and the Mayor led the Pledge of Allegiance.
MOMENT OF SOLEMN EXPRESSION – Led by Pastor Phil Eyskens, Lighthouse Church.
ROLL CALL
Present: Council Member Buley, Council Member Gameros, Council Member Pettis, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Absent: None.
CITY ATTORNEY CLOSED SESSION REPORT
PRESENTATIONS:
Arts Commission Chair Alisa Ochoa and Vice Chair Fisher Derderian introduced Costa Mesa Poet Laureate Danielle Hanson who spoke on art and read a poem.
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Flo Martin, Costa Mesa, praised first responders.
Speaker, spoke in support of a Trap Neuter Return program or a low cost spay and neuter program.
Speaker, spoke in support of spending the cannabis tax on the Arts and spoke against spending the money on salaries.
Jake Johnston, Costa Mesa, spoke against sober living facilities and mental health facilities in residential zones.
Cory Johnston, Costa Mesa, spoke against sober living facilities and mental health facilities in residential zones.
Priscilla Rocco spoke on the preservation of Fairview Park and against Harbor Soaring Society flying at the park.
Speaker, spoke in support of a Trap Neuter Return program.
Speaker, spoke on a person arrested on October 29, 2023, and requested a contact for inquiries on the case.
98 Minutes – Regular Meeting April 1, 2025 Page 3 of 12
COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Council Member Gameros thanked Police Chief Lawrence for his service to the City and thanked the Constituent Services team.
Council Member Marr spoke on attending the Radiant Health Center Gala, recognized Transgender Day of Visibility, and spoke on representing all constituents.
Council Member Reynolds spoke on the new Poet Laureate and exploring poetry in public spaces, spoke on the Arts Commission and funding grants and requested to fully fund the Songs in the Canyon grant, requested staff to review block party and special event permit processes, spoke on the City Nature Challenge, and requested clarification on the status of the Trap Neuter Return issue.
Council Member Pettis recognized small businesses in the City and spoke on attending the Harper BBQ soft opening on Cabrillo Street, spoke on the 311 Application and reporting uneven pavement, spoke on addressing homeless issues at Pinkley Park and requested increased patrols in the area.
Council Member Buley thanked Police Chief Lawrence for his service, thanked the Police Department for his ride along, thanked staff for the community meet and greet on the resurfacing of asphalt at Balearic Park, spoke on attending Senator Choi’s Women of Distinction event honoring Dr. Elvira Cravagan and Dr. Eunice Kang, spoke on the undergrounding of utility cables, spoke on meeting with members from the Finance and Pension Advisory Committee, spoke on staff responsiveness when he assisted a neighbor, spoke on attending the emergency preparedness meeting, and praised the services of Charlie Street, a non-profit organization that assists those with alcohol dependency.
Mayor Pro Tem Chavez thanked Police Chief Lawrence for his service, welcomed the Velasquez family who moved into a Habitat for Humanity Home, attended the Mesa Water Reliability Facility (MWRF) unveiling, requested the Trap Neuter Return program be brought back for discussion, and spoke on utilizing the Costa Mesa 311 Application.
Mayor Stephens spoke on attending the Women of the Year event with Assemblywoman Cottie Petrie Norris that honored Megan Clem and Katie Brundige and the RAD Camp Program, spoke on attending the Radiant Health Center event, stated that the Trap Neuter Return Program is in the pipeline and will be brought back for the Council to consider, requested staff to look into the complaints regarding sober living homes on Waxwing Circle and Hummingbird Drive, spoke on the cannabis tax being used for arts and the first time homebuyers program, spoke on attending the Harbor Mesa Lions Club fashion show, spoke on attending an Eagle Scout presentation, and thanked Police Chief Lawrence for his service.
REPORT – CITY MANAGER – Ms. Farrell Harrison thanked Chief Lawrence for his service, spoke on the Emergency Preparedness public meeting, the Springfest event on April 19 th, stated an update on the residential permit parking program will be forthcoming, thanked Council Members Marr and Reynolds for being panelists at the Women in History luncheon, spoke on the Trap Neuter Return Program coming back to Council, spoke on the Arts funding and it is part of the budget discussions and that the cannabis revenue is going into the fund, and will follow up on the sober living complaints.
99 Minutes – Regular Meeting April 1, 2025 Page 4 of 12 REPORT – CITY ATTORNEY – Ms. Hall Barlow responded to the speaker regarding the police incident and gave her phone number for the caller to reach out to her and acknowledged Ms. Tai and Ms. Gallardo-Daly for their work on the Jamboree Housing contract.
CONSENT CALENDAR
MOVED/SECOND: Mayor Pro Tem Chavez/Council Member Reynolds MOTION: Approve the Consent Calendar except for item nos. 5 and 10.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND
RESOLUTIONS
ACTION:
City Council and Housing Authority approved the reading by title only and waived further reading of Ordinances and Resolutions.
2. READING FOLDER
ACTION:
City Council received and filed Claims received by the City Clerk and authorized staff to reject any and all Claims: Gabriel Rolando Fierro.
3. ADOPTION OF WARRANT RESOLUTION
ACTION:
City Council approved Warrant Resolution No. 2731.
4. MINUTES
ACTION:
City Council approved the minutes of the Study Session of March 11, 2025 and the regular meeting of March 18, 2025.
6. APPROVE INCREASE IN PURCHASING AUTHORITY WITH PIVOT SOLUTIONS ACTION:
1. City Council approved and authorized the City Manager to execute change orders with Pivot Solutions LLC, dba: Maaco Store that would authorize an increase in purchase authority to $200,000 for vehicle paint and body repair services for the remainder of the current fiscal year and annually thereafter. 100
Minutes – Regular Meeting April 1, 2025 Page 5 of 12
2. Approved an appropriation of $100,000 in the Equipment Replacement Fund (Fund 601) fund balance for additional paint and body repair services.
7. ACCEPTANCE OF THE POLICE DEPARTMENT RANGE REMODEL AND UPGRADES PROJECT, CITY PROJECT NO. 22-03
ACTION:
1. City Council accepted the work performed by Kazoni Construction, Inc., 20371 Irvine Ave. Ste. 120, Newport Beach, CA 92660, for the Police Department Range Remodel and Upgrades Project, City Project No. 22-03, and authorized the City Clerk to file the Notice of Completion.
2. Authorized the City Manager to release the retention monies thirty-five (35) days after the Notice of Completion filing date, release the Labor and Material Bond seven (7) months after the filing date, and release the Faithful Performance Bond at the conclusion of the one (1) year warranty period.
8. SECOND AMENDMENT TO THE CITYWIDE TRAFFIC SIGNAL MAINTENANCE
CONTRACT
ACTION:
1. City Council approved the Second Amendment to the Maintenance Services Agreement (MSA) with Yunex, LLC to provide maintenance of the City’s traffic signals, increasing the annual compensation limit by $200,000, for an annual not to exceed amount of $700,000.
2. Authorized the City Manager and the City Clerk to execute the agreement and future amendments to the agreement.
9. AUTHORIZE PURCHASE ORDER WITH LN CURTIS AND SONS FOR SMALL DOLLAR COMMODITY PURCHASES THAT CUMULATIVELY EXCEED $100,000
FOR PURCHASE OF PERSONAL PROTECTIVE EQUIPMENT AND FIREFIGHTER
EQUIPMENT
ACTION:
City Council authorized the City Manager to execute a purchase order with LN Curtis and Sons within the department’s FY 2024-25 approved operating budget for various small dollar commodity purchases not to exceed $125,000.
ITEMS PULLED FROM THE CONSENT CALENDAR
5. DESIGNATION OF CITY NEGOTIATORS FOR THE COSTA MESA POLICE
MANAGEMENT ASSOCIATION (CMPMA), THE COSTA MESA POLICE
ASSOCIATION (CMPA) AND THE COSTA MESA CITY EMPLOYEES’
ASSOCIATION (CMCEA) LABOR NEGOTIATIONS PROCESSES AND
AUTHORIZATION TO PROCEED WITH THE FINANCIAL ANALYSIS OF THE
CURRENT MEMORANDUMS OF UNDERSTANDING (MOU) PER THE
TRANSPARENCY IN LABOR NEGOTIATIONS COUNCIL POLICY
101
Minutes – Regular Meeting April 1, 2025 Page 6 of 12
Public Comments: None.
MOVED/SECOND: Mayor Pro Tem Chavez/Mayor Stephens
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
ACTION:
1. City Council designated City Manager Lori Ann Farrell Harrison as the City’s Principal Negotiator, Assistant City Manager Cecilia Gallardo Daly, Deputy City Manager Alma Reyes, Human Resources Manager Kasama Lee and Finance Director Carol Molina as the City’s representatives in negotiations with the CMPMA, CMPA and CMCEA.
2. Authorized staff to have the independent fiscal analysis of the current CMPMA, CMPA and CMCEA MOUs completed per the requirements of the Transparency in Labor Negotiations Council Policy.
10. CONTRACT AMENDMENT TO INCREASE FUNDING FOR THE FAMILIES
FORWARD TENANT BASED RENTAL ASSISTANCE (TBRA) PROGRAM BY $50,000 FOR THE CURRENT FISCAL YEAR (FY) 2024-2025 AND INCLUDE UP TO 3 ADDITIONAL YEARLY RENEWALS FOR UP TO $200,000 EACH YEAR, IF
FUNDING IS AVAILABLE
Public Comments:
Rosalinda Bermudez, representing Families Forward, stated that most referrals come from City staff, and that last year there was a waiting list, and spoke on the program.
MOVED/SECOND: Council Member Marr/Council Member Reynolds MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
102
Minutes – Regular Meeting April 1, 2025 Page 7 of 12
ACTION:
1. City Council authorized the City Manager (or designee) and the City Clerk to execute an amendment to award additional HOME funding in the amount of $50,000 to Families Forward for the City’s Tenant Based Rental Assistance Program (TBRA) for FY 2024-2025 and include up to 3 additional yearly renewals for up to $200,000 each year, if funding is available.
2. Approved an appropriation of $175,000 to recognize the unspent allocation from prior years within the HOME Fund (Fund 205) that has been added to the FY 2024-2025 Annual Action Plan as a minor amendment to increase funding to the HOME TBRA program and Single-Family Housing Rehabilitation program. ------------------------------END OF CONSENT CALENDAR------------------------------- PUBLIC HEARINGS: NONE.
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.) OLD BUSINESS:
1. ADOPT AN ORDINANCE TO AMEND TITLE 13 OF THE COSTA MESA MUNICIPAL
CODE PERTAINING TO ACCESSORY DWELLING UNITS TO CONFORM TO RECENT REVISIONS TO STATE LAW (CODE AMENDMENT PCTY-24-0002) Presentation by Mr. Yeager, Senior Planner.
Public Comments: None.
MOVED/SECOND: Mayor Pro Tem Chavez/Council Member Marr
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
ACTION:
City Council adopted Ordinance No. 2025-02 approving Code Amendment PCTY-24-0002, amending Title 13 of the Costa Mesa Municipal Code (CMMC) pertaining to Accessory Dwelling Units (ADUs) to conform to recent revisions to State law.
103
Minutes – Regular Meeting April 1, 2025 Page 8 of 12
NEW BUSINESS:
1. PROFESSIONAL CONSTRUCTION MANAGEMENT SERVICES FOR THE RECONSTRUCTION OF FIRE STATION NO. 2
Presentation by Mr. Rahimian, Senior Engineer.
Public Comments:
Speaker, spoke on the level of efforts for the project in relation to the cost of the agreement.
MOVED/SECOND: Mayor Stephens/Council Member Gameros
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
ACTION:
1. City Council awarded Professional Services Agreement (PSA) to Accenture Infrastructure and Capital Projects LLC, 300 Spectrum Center Drive, Suite 1400, Irvine, California, in an amount not to exceed $1,774,775 for construction management services for the reconstruction of Fire Station No. 2, with an initial allocation of $225,000 and the remaining allocation following successful issuance of bond for Fire Station No. 2 Reconstruction Project.
2. Authorized a ten percent (10%) contingency in the amount of $177,477 for unforeseen costs related to the project.
3. Authorized the City Manager and the City Clerk to execute the PSA and any future amendments to the agreement.
2. APPOINTMENTS TO VARIOUS CITY COMMITTEES
Presentation by Ms. Green, City Clerk.
Public Comments: None.
ACTION:
City Council made appointments as follows:
104
Minutes – Regular Meeting April 1, 2025 Page 9 of 12
MOVED/SECOND: Mayor Pro Tem Chavez/Mayor Stephens
MOTION: Re-open the recruitment process for one week and to make his appointment on April 15th.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
Mayor Pro Tem Chavez directed staff to re-open the recruitment process for one week and to make his appointment on April 15th.
MOVED/SECOND: Council Member Reynolds/Council Member Gameros MOTION: Appoint Stephen Smith and Tammy McGregor to the Animal Services Committee.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
City Council made the following two (2) appointments to the Animal Services Committee with a term expiration of April 2027. Council Member Reynolds appointed Stephen Smith and Council Member Marr appointed Tammy McGregor.
MOVED/SECOND: Council Member Reynolds/Council Member Marr MOTION: Appoint Tiia Alcazar, Trace Yulie, and Joselyn Perez to the Active Transportation Committee.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
City Council made three (3) member appointments to the Active Transportation Committee with a term expiration of April 2027. Mayor Pro Tem Chavez appointed Joselyn Perez, Council Member Reynolds appointed Tiia Alcazar, and Council Member Marr appointed Trace Yulie.
105
Minutes – Regular Meeting April 1, 2025 Page 10 of 12
MOVED/SECOND: Council Member Reynolds/Mayor Stephens
MOTION: Appoint Jay Humphrey, Jose Toscano, Edwin (Bo) Glover, and Terri Fuqua to the Fairview Park Steering Committee.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
1. City Council made three (3) member appointments to the Fairview Park Steering Committee with a term expiration of April 2029. Council Member Buley appointed Jay Humphrey, Council Member Reynolds appointed Edwin (Bo) Glover, and Council Member Pettis appointed Jose Toscano.
2. City Council made one (1) member appointment to the Fairview Park Steering Committee with a term expiration of April 2027. Mayor Stephens appointed Terri Fuqua.
MOVED/SECOND: Council Member Buley/Mayor Stephens
MOTION: Appoint Daniel Morgan to the Finance and Pension Advisory Committee.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
City Council made one (1) member appointment to the Finance and Pension Advisory Committee with a term expiration of April 2028. Council Member Buley appointed Daniel Morgan.
MOVED/SECOND: Mayor Pro Tem Chavez/Council Member Marr
MOTION: Appoint Becks Heyhoe-Khalil, Valerie Hass, Andrea Schmidt, and Alma Fausto to the Housing and Public Service Grants Committee.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: None.
Abstain: None.
Motion carried: 7-0
106
Minutes – Regular Meeting April 1, 2025 Page 11 of 12
1. City Council made three (3) member appointments to the Housing and Public Service Grants Committee with a term expiration of April 2027. Mayor Pro Tem Chavez appointed Andrea Schmidt, Council Member Reynolds appointed Alma Fausto, and Council Member Marr appointed Becks Heyhoe-Khalil.
2. City Council made one (1) member appointment to the Housing and Public Service Grants Committee with a term expiration of April 1, 2026. Council Member Buley appointed Valerie Hass.
MOVED/SECOND: Council Member Reynolds/Mayor Stephens
MOTION: Appoint Nicholas Lapating, Stephen Brahs, Eric Vu, and George Sakioka to the Traffic Impact Fee Ad Hoc Committee.
SUBSTITUTE MOTION/SECOND: Council Member Buley/Council Member Pettis SUBSTITUTE MOTION: Appoint Nicholas Lapating, Stephen Brahs, George Sakioka, and Jim Fitzpatrick to the Traffic Impact Fee Ad Hoc Committee.
The motion carried by the following roll call vote:
Ayes: Council Member Buley, Council Member Gameros, Council Member Pettis, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: Council Member Marr and Council Member Reynolds.
Absent: None.
Abstain: None.
Motion carried: 5-2
1. City Council made four (4) member appointments to the Traffic Impact Fee Ad Hoc Committee with a term expiration of April 2029. George Sakioka as the Major Developers’ Representative, Stephen Brahs as the Small Developers’ Representative, and Nicholas Lapating and Jim Fitzpatrick as the At-large Representatives.
ADDITIONAL COUNCIL/BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS – NONE.
ADJOURNMENT – Mayor Stephens adjourned the meeting at 8:22 p.m. 107
Minutes – Regular Meeting April 1, 2025 Page 12 of 12
Minutes adopted on this 15th day of April, 2025.
___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
108
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-220 Meeting Date: 4/15/2025
TITLE:
2024 2015-2035 GENERAL PLAN ANNUAL PROGRESS REPORT (APR) DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES
DEPARTMENT/PLANNING DIVISION
PRESENTED BY: PHAYVANH NANTHAVONGDOUANGSY, PRINCIPAL PLANNER,
AND CAITLYN CURLEY, ASSISTANT PLANNER
CONTACT INFORMATION: PHAYVANH NANTHAVONGDOUANGSY, PRINCIPAL PLANNER, 714-754-5611
RECOMMENDATION:
Staff recommends the City Council approve the 2024 Annual Progress Report for the 2015-2035 Costa Mesa General Plan for submittal to the State Office of Land Use and Climate Innovation (LUCI) [formerly known as the Office of Planning and Research (OPR)], and State Department of Housing and Community Development (HCD).
109
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
Item #: 25-220 Meeting Date: 4/15/2025
TITLE: 2024 2015-2035 GENERAL PLAN ANNUAL PROGRESS REPORT (APR)
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING
DIVISION
PRESENTED BY: PHAYVANH NANTHAVONGDOUANGSY, PRINCIPAL PLANNER, AND CAITLYN
CURLEY, ASSISTANT PLANNER
CONTACT INFORMATION: PHAYVANH NANTHAVONGDOUANGSY, PRINCIPAL PLANNER, 714- 754-5611
RECOMMENDATION:
Staff recommends the City Council approve the 2024 Annual Progress Report for the 2015-2035 Costa Mesa General Plan for submittal to the State Office of Land Use and Climate Innovation (L UCI) [formerly known as the Office of Planning and Research (OPR) ], and State Department of Housing and Community Development (HCD).
BACKGROUND:
The Costa Mesa General Plan sets forth the vision, goals, objectives, and policies for the City. General Plan implementation ensure s that development decisions and improvements to public and private infrastructure are consistent with the community’s goals and visions. State Land Use and Zoning Law, Government Code Section 65000, et. seq., requires jurisdictions to submit a General Plan Annual Progress Report to the State agencies identified above. The State uses the General Plan APR to identify statewide trends in land use decisions to assess how local planning and development activities align with statewide planning goals and policies. Specifically, the General Plan APR provides an overview of the actions taken by the City during the 2024 calendar year to implement the City’s General Plan programs and policies. All jurisdictions are required to provide the State with separate General Plan and Housing Element Annual Progress Reports. The 2024 6th Cycle Housing Element Annual Progress Report HCD was approved by City Council on March 18, 2025 , and is available online at:
https://www.costamesaca.gov/home/showdocument?id=59930.
ANALYSIS:
General Plan Annual Progress Report
The General Plan Annual Progress Report (APR) highlights the City’s progress in implementing the goals and policies outlined in the General Plan. This annual assessment provides an opportunity to evaluate, adjust, and refine policies and implementation strategies to ensure continued alignment with the City’s long-term vision. It summarizes key actions taken during the 12 -month reporti ng period and demonstrates how land use decisions and City initiatives support the General Plan’s adopted goals, policies, and implementation measures.
110
Item #: 25-220 Meeting Date: 04/15/2025
In the previous versions of the City’s General Plan Annual Progress Reports, all City programs and actions were noted for each General Plan policy. On January 30, 2025, LUCI published guidance on a format to streamline the process. The focus of the APR is now on Major Planning/City Activities that implement the General Plan and a Summary of Housing Element Implementation.
While the APR is not intended to be an exhaustive record of all City initiatives and the technical guidance released this year emphasizes a streamlined approach to the report, the 2024 APR showcases several significant accomplishments. Highlighted accomplishments include the approval of land use projects consistent with General Plan policies, continued investment in public safety, emergency services, and community programs, and ongoing infrastructure improvements that promote active transportation and pedestrian mobility. The City has also reaffirmed its commitment to environmental stewardship and community well-being by prioritizing the preservation of open space and expanding access to high-quality recreational opportunities. Additionally, measurable progress has been made toward achieving the goals outlined in the Housing Element.
Land use projects a nd City activities are tracked through City Council and Planning Commission agendas, and those directly related to the General Plan are included in the APR. The Planning Division collaborates with other City departments to compile the report, which include s links to relevant staff reports and a map of completed Active Transportation Improvement Projects.
General Plan Consistency with the State’s General Plan Guidelines
The City of Costa Mesa’s General Plan consists of seven elements that are required by State statutes and three optional elements. For the seven required elements, the City’s General Plan provides goals and policies that address these categories consistent with the State law. The seven required elements include:
Land Use
Circulation
Housing
Conservation
Open Space and Recreation
Noise
Safety
The three optional elements address additional topics that are of particular local significance and include:
Growth Management
Community Design
Historic and Cultural Resources
The General Plan goals and policies for these elements are consistent with state law and follow State General Plan Guidelines.
In the future, to implement the 6th Cycle Housing Element and, specifically, to accommodate the City’s Regional Housing Needs Assessment allocation, the General Plan will be updated to ensure that the City’s General Plan will remain internally consistent and remain an effective guiding docu ment for orderly growth. Additionally, the City is reviewing other General Plan Elements to integrate 111
Item #: 25-220 Meeting Date: 04/15/2025
environmental justice policies in accordance with the Planning for Healthy Communities Act (SB 1000).
This law mandates the development of General Plan po licies that address the needs of lower-income areas disproportionately affected by pollution and other environmental hazards that contribute to negative health outcomes. As part of this effort, the City will identify existing policies that support environmental justice.
As shown through various City actions and approved projects that are summarized in the General Plan APR, the City’s General Plan remains an effective guide for orderly community growth and development, preservation and conservation of open space and natural resources, and efficient expenditure of public funds. Examples of the City’s actions for each General Plan Element are highlighted below.
1. Land Use Element
a. The City approved amendment s to the Costa Mesa Municipal Code (CMMC) to update Cannabis Regulations (Ordinances No. 2024-03 and 2024-04) on May 7, 2024. This project implements the Land Use Element Goal LU-6: “Economically Viable and Productive Land Uses that Increase the City’s Tax Base.”
b. The City approved amendments to the CMMC to streamline Outdoor Dining Areas development (Ordinance No. 2024 -01) on January 16, 2024. This project supports the Land Use Element Goals LU-1: “A Balanced Community with a Mix of Land Uses to Meet Resident and Business Needs” and LU-6: “Economically Viable and Productive Land Uses that Increase the City’s Tax Base ”. It also implements the Community Design Element Goal CD-1: “Vehicular and Pedestrian Corridors.”
c. The City continued its Business Improvement Area (BIA) Program to support the hotel and motel industry in promoting tourism. This program implements the Land Use Element Goal LU-6: “Economically Viable and Productive Land Uses that Increase the City’s Tax Base.”
2. Circulation Element
The following City activities achieve various goals of the Circulation Element, most notably Goal C -1:
“Implement “Complete Streets” Policies on Roadways in Costa Mesa”, Goal C-3: “Enhance Regional Mobility and Coordination”, and Goal C-5: “Ensure Coordination between the Land Use and Circulation Systems”.
a. The City approved the Pedestrian Master Plan (PMP) and an amendment to the General Plan Circulation Element (PGPA-23-0001) on May 7, 2024. This update aligns Circulation Element policies with the PMP, ensuring its goals are integrated into future public an d private projects.
b. The City completed several pedestrian and bikeway improvements as part of the Active Transportation Plan (ATP) implementation, including:
112
Item #: 25-220 Meeting Date: 04/15/2025
Installation of Rectangular Rapid Flashing Beacons (RRFB) at Paularino and Coolidge intersection, Town Center, Avenue of the Arts, and Whitter and Parkhill intersection;
Completion of the Adams Avenue Class II-B Bike Lane enhancements from the City boundary to Royal Palms Drive;
Installation of Class III Bike Route on Fullerton Avenue between18th Street and East Bay Street;
Installation of Class III Bike Route on East Bay Street to West Bay Street from Fullerton Avenue to Thurin Street;
Installation of a Class II-B Bike Lane on Santa Ana Avenue between Ogle Street and 17th Street;
Installation of a Class II Bike Lane on Santa Ana Avenue between 21st Street and 22nd Street;
Installation of High-Intensity Activated CrossWalk (HAWK) signals at Wilson Street and Fordham Drive, and at 18th Street and Lions Park;
Installation of a pedestrian signal at West 19th Street and Wallace Avenue; and, Installation of K71 bike lane bollards on Placentia Avenue between Victoria Street and 18th Street, and on 19th Street between Wallace Avenue and Federal Avenue.
3. Growth Management Element
The City actively implements the Growth Management Element Goals by aligning land use and transportation policies with state, regional, and local growth management initiatives. To support informed decision-making, growth projections, and transportation modeling, the City provides data and reports to the Center for Demographic Research, Southern California Association of Governments, State Department of Finance, Orange County Transportation Authority, and Newport Mesa Unified School District upon request.
4. Housing Element
a. The City approved its Annual Action Plan Funding Priorities for Community Development Block Grant (CDBG) and Home Investment Partnerships Grant: $1.5 million used for various activities that assist low - and moderate-income Costa Mesa residents. This City action implements the Housing Element Goals Goal #1: “Preserve and enhance the City’s existing housing supply”, Goal #2: “ Facilitate the creation and availability of housing for residents at all income levels and for those with special housing needs”, and Goal #4:
“Provide housing opportunities to residents of all social and economic segments of the community without discrimination on the basis of race, color, religion, sexual orientation, disability/medical conditions, national origin or ancestry, marital s tatus, age, household composition or size, source of income, or any other arbitrary factors.”
b. The 2024 Housing Element APR is attached to the General Plan Annual Progress Report as Attachment 1. It provides a summary of the housing development activities that occurred in 2024, including how many building permits were issued that will count towards the City meeting its Regional Housing Needs Assessment (RHNA) goals.
113
Item #: 25-220 Meeting Date: 04/15/2025
In 2024, the City completed construction of 284 housing units including 209 multifamily units at the Lux Apartments on 2277 Harbor Blvd. The City issued 123 residential building permits and entitled four housing projects adding a net total of ten units. Additionally, it received eight planning applications for projects with two or more units, totaling 272 net new units.
From October 15, 2021 (start of the 6th Housing Element Cycle) to December 31, 2024, the City issued building permits for a total of 373 residential units, including 312 affordable units and 60 above moderate-income units (shown in Table 1 Below). The majority of the affordable units were accessory dwelling units (ADUs) with 58 ADUs in the very low-income category, 162 ADUs in the low-income category and 32 ADUs in the moderate -income category. Additionally, completion of Phase I of the Mesa Vista Homekey development (2274 Newport Boulevard) provided 40 extremely low -income units and one above moderate manager’s unit. With the exce ption of the Mesa Vista project, these permitted housing units are all within existing residential neighborhoods.
Table 1: Total Building Permits Issued in 6th Housing Element Cycle Income
Category
RHNA
Allocation
(Housing
Units)
October
2021-
December
2022
2023 2024 Total Progress in
Housing Element
Reporting Period
(October 2021-
December 2029)
Very Low
Income
2,919 units 27 47 24 98
Low
Income
1,794 units 56 61 45 162
Moderate
Income
2,088 units 19 13 20 52
Above
Moderate
Income
4,959 units 16 11 34 61
Total: 11,760 units 118 132 123 373
Throughout the 2021-2029 Housing Element planning period, the City continues to monitor and track the number of housing units in the “pipeline” (constituting projects within entitlement review, entitled, under construction and recently constructed). These units officially count towards the City’s RHNA obligation when a building permit is pulled. As of December 31, 2024, the City is processing ten housing development projects that includes two or more units that will provide a net increase of 1,368 units, if approved. Furthermore, as of February 28, 2025, there are an additional 1,238 entitled housing units expected to complete construction within the 6th Cycle Housing Element period.
5. Conservation Element
The following City activities help achieve the Co nservation Element Goals CON -4: “ Improved Air Quality” and Goal CON-3: “Improved Water Supply and Quality.”
114
Item #: 25-220 Meeting Date: 04/15/2025
a. The City accepted the CalRecycle Senate Bill (SB) 1383 Grant award that will fund activities to implement SB 1383. SB 1383 aims to reduce emissions of short-lived climate pollutants by 75% by 2025 and achieve 20% edible food recovery by 2025. The grant will be used to implement programs relating to outreach, collection, edible food recover y, enforcement and inspection, procurement, and recordkeeping.
b. The City participated in the Clean Mobility Options (CMO) Pilot Program and the Orange County Transportation Authority (OCTA) Project Grant for Community-Based Transit. The CMO Voucher Pilot Program is a statewide initiative providing funding for zero-emission carsharing, carpooling, vanpooling, innovative transit, and on -demand ride services in underserved communities. With grant funds, the City launched Let’s Go Costa Mesa in November 2024.
6. Noise Element
The City continuously implements the Noise Element Goals by evaluating the existing and anticipated noise environment for all projects. Each project is assessed for compatibility with adopted noise and land use criteria, as well as interior and exterior noise standards, including Title 24 r equirements for new residential developments. Staff identifies potential noise mitigation measures during project evaluations and follows appropriate environmental review processes when needed. For example, acoustical studies lead to the incorporation of sound attenuation measures in both interior and exterior spaces. Additionally, mixed -use developments must position noise sources away from residential areas. The City also monitors developments related to John Wayne Airport operations, such as the recent General Aviation Program, to prevent increased noise levels. The Community Improvement Division investigates and addresses all noise-related concerns submitted for review.
7. Safety Element
The following City activities help achieve the Safety Element Goal S -1: “Risk Management of Natural and Human-Caused Disasters” by supporting emergency services and programs to ensure that the City can respond and reduce threats to life and property.
a. Fire Station No. 4 Training Tower and Site Improvement Project b. Conceptual Design of Fire Station No. 2 Reconstruction Project c. Animal Care Shelter Services – Priceless Pets Rescue d. 2023 Operation Stonegarden Funds to be used to Deter Narcotics Trafficking e. Extend Term of PSA with Falck Mobile Health Corporation for Ambulance Services f. Annual Fire Inspection pursuant to SB 1205: inspect public and private schools, hotels, motels, lodging housings, and apartment buildings
g. Acceptance and Allocation of the 2024-2025 Office of Traffic Safety Grant for the Selective Traffic Enforcement Program
h. Subrecipient Agreement for the 2023 Urban Area Security Initiative Grant
115
Item #: 25-220 Meeting Date: 04/15/2025
8. Community Design Element
The City consistently implement s the goals of the Community Design Element by ensuring that land use developments and capital improvement projects enhance the community’s visual character and overall quality of life. Land use projects are reviewed and designed to align with urban plans, General Plan policies, and zoning standards, while ensuring compatibility with surrounding neighborhoods.
Residential developments are evaluated to meet the City’s Residential Design Guidelines, promoting design excellence in new housing projects. Where a pplicable, developments must also comply with the City’s landscaping standards to ensure aesthetic appeal and environmental sustainability. The Capital Improvement Projects outlined in the Circulation Element, along with the recent approval of the Pedestrian Master Plan, reflect the City’s ongoing commitment to improving its vehicular and pedestrian pathways.
9. Open Space and Recreation Element
The following City activities help achieve the Open Space and Recreational Element Goals OSR-1:
“Balanced and Accessible System of Parks and Open Spaces”, R-2A: “Community Services Programs Meeting Community Needs”, and OSR -3: “Conserved Open Space”.
a. The City approved the Shalamar Park design improvement and purchase of 778 Shalimar Drive to support the expansion.
b. The City approved the Ketchum-Libolt Park design improvements. c. The City adopted plans to install new lighting facilities include Jack Hammett Sports Complex, TeWinkle Athletic Complex, Costa Mesa Tennis Center, and Bark Park. d. The City completed imp rovements to the sport s complex included parking lot pavement improvements, concrete sidewalk, access ramps, installation of a new storage building, site grading, lighting, landscape improvements, and integrated art features.
10. Historical and Cultural Resources Element
The City approved the “Leroy Anderson House” located at 208 Magnolia Street to be added to the Local Historic Register on June 18, 2024. This project implements the Historical and Cultural Resources Element Goal HCR -1: “ Historical, Arche ological, and Paleontological Resources Preservation.”
ALTERNATIVES:
The APRs summarize the City's efforts undertaken in 2024 to implement the General Plan. The APRs are required to be submitted annually to the State agencies and serves as an informational document.
Therefore, there are no presented alternatives for City Council consideration.
FISCAL REVIEW:
There are no fiscal impacts to the City’s Budget for the approval of the recommended actions.
116
Item #: 25-220 Meeting Date: 04/15/2025
LEGAL REVIEW:
The City Attorney’s Office has reviewed this Agenda Report and the attached 2024 General Plan APR and approves them both as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council goals:
1. Strengthen the Public's Safety and Improve the Quality of Life.
2. Diversify, stabilize, and increase housing to reflect community needs.
3. Advance environmental sustainability and climate resiliency.
CONCLUSION:
As required by the Government Code, the 2024 General Plan APR is required to be prepared and submitted to the State annually and provides a status on the City’s General Plan implementation .
Following City Council approval, the 2024 General Plan APR will be submitted to the State Office of Land Use and Climate Innovation (L UCI) and State Department of Housing and Community Development (HCD).
117
2024
ANNUAL REPORT
City of Costa Mesa
Development Services Department
77 Fair Drive
Costa Mesa, CA 92628
An Annual Report of the Costa Mesa 2015-2035 General Plan Lux Costa Mesa Apartments
Ketchum-Libolt Park (Conceptual Improvement) One Metro West ATTACHMENT 1
118
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 1
[Updated: March 31, 2025]
Background ……………………………… ……………………………… Page 2
Analysis …………………………………… …………………………….. Page 3
Conclusion ………………………………… ……………………………. Page 36
______________________
Attachment 1 – 6
th Cycle Housing Element Annual Progress Report Form 2024
Date to City Council: April 15, 2025
Agenda Item:
119
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 2
[Updated: March 31, 2025]
BACKGROUND
On June 29, 1953, the City of Costa Mesa was incorporated as a general law ci ty led by a City Council-Manager form of government. The City of Costa Mesa originally consisted of an area of
3.5 square miles and gene ral population of 16,840. The City’s current estimated population is 108,354 persons, and it consists of an overall land area of 16.8 square miles (US Census 2023).
The City adopted its first General Plan in 1957 and its second General Plan in 1970. The General Plan was comprehensively amended in 1981 and again in 1992. On January 22, 2002, the City Council adopted the Co sta Mesa 2000 General Plan. The 2000 General Plan recognized the community’s diverse evolution of residential neighborhoods, its regional commercial influence, and its recreational amenities.
The City completed its most recent comprehensive General Plan update (2015-2035 General Plan) that was approved on June 21, 2016. Many of the policies were carried over from the 2000 General Plan and new policies were added in compliance with the latest State mandates and in accordance with the economic growth of the City. This report includes the 2024 annual review of the General Plan and Housing Element for Pla nning Commission and City Coun cil review and approval as required by state law regarding the implementation of the programs and policies of the General Plan.
Table 1 provides a summary of the General Plan Amendments that were approved since 2002.
Four of the General Plan Amendments relates to housing development and two focused on active transportation and pedestrian mobility.
Table 1: General Plan Amendments Since 2002
Adoption
Date
General Plan
Element
Description
6/5/2018 Circulation
Element
Revision to the Roadway Typical Cross Sections and Conceptual Bicycle Master Plan figures and updated policies to support and implement the City’s Active Transportation Plan.
10/2/2018 Land Use
Element
Amended the General Plan land use designation of a 1.86-acre site located at 1957 Newport Bl vd. and 390 Ford Rd. from General Commercial to High Dens ity Residential, with a site- specific density of 20.4 du/acre.
11/13/2018 Land Use
Element
Review and revised the maxi mum density allowed in and
locations of the Residential Incentive Overlays.
6/15/2021 Land Use
Element
Amended the General Plan land use designation of the 15.23- acre site located at 1683 Sunflower Avenue from Industrial Park to High Density Residential with a site-specific density of 80 dwelling units per acre and maximum 1,057 units.
11/15/2022 Housing
Element
6th Cycle Housing Element was adopted by City Council on November 15, 2022. The March 1, 2023, includes minor technical changes to comply with Stat e Law. In May 2023, HCD has determined that the City Housi ng Element meets the statutory requirements of State Housin g Law. The Housing Element provides an in-depth analysis of the City’s population, economic, 120
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 3
[Updated: March 31, 2025]
Table 1: General Plan Amendments Since 2002
Adoption
Date
General Plan
Element
Description
and housing stock char acteristics as well as a comprehensive evaluation of programs and r egulations related to housing.
Through this evaluation and analysis, the City identifies priority goals, polices, and programs that directly address the housing needs of the City’s current and future residents.
5/7/2024 Circulation
Element
Incorporates the City’s Pedestrian Master Plan by reference and revised and include new policies to ensure future projects will consider and include street design elements to enhance
pedestrian mobility.
ANALYSIS
Government Code Section 65400
State Government Code Section 65400 requires that an annual progress report (APR) be made to the City’s legislative body on the status of the General Plan and progress in its implementation, including progress toward meeting its Housi ng Element goals and its regional housing needs allocation. This 8
th Edition of the Annual Progress Report includes the annual review for 2024.
State Law requires the following:
Provide by April of each year an annual repor t to the City Council, the Office of Land Use and Climate Innovation (LCI), and the Department of Housing and Community Development that includes all of the following:
(A) The status of the plan and progress in its implementation.
(B) The progress in meeting it s share of regional housing needs determined pursuant to Section 65584 and local efforts to remove governmental constraints to the maintenance, improvement, and development of housing. The housing element portion of the annual report shall include a section that describes the actions taken by the City of Costa Mesa towards completion of the programs and stat us of the local government's compliance with the deadlines in its housing element.
Annual Review and Housing Program Summary Report
The format of this year’s APR follows the suggested format published by the State of California Governor’s Office of Land Use and Climate Innovation (LCI) published January 30, 2025, for the 2024 reporting year. This report includes the following elements:
A. Major Planning/City Activities That Implements the General Plan
This section highlights major projects that implements the goals and policies of the General Plan Elements.
121
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 4
[Updated: March 31, 2025]
B. Summary of the Housing Element Implementation (Housing Program Status Report)
This section provides the City’s progress in meeting its share of the regional housing needs assessment, pursuant to State Government Code Section 65584 and local efforts to remove governmental constraints to the maintenance, improvement, and development of housing.
General Plan Consistency with the State OPR General Plan Guidelines
The City of Costa Mesa’s General Plan consists of seven elements that are required by State statutes and three optional elements. The seven required elements include: Land Use, Circulation, Housing, Conser vation, Open Space and Recreat ion, Noise, and Safety. The City’s General Plan provides goals and policies that address these categories consistent with the State law. The optional elements address addi tional topics that are of particular local significance and include: Growth Management, Community Design, and Historic and Cultural Resources. The General Plan goals and policie s are consistent wit h state law and follow OPR Guidelines.
As shown through various City’s actions and approved projects that are summarized in following sections of the General Plan APR, the City’s General Plan remains an effective guide for orderly community growth and development, preservation and conservation of open space and natural resources, and efficient ex penditure of public funds. Note that to implement the 6th Cycle Hous ing Element and, specifically , to accommodate the City’s RHNA allocation, future General Plan updates will be necessary to ensure that the City’s General Plan will remain internally consistent and remain an effective guiding document for orderly growth.
In addition, the City is currently developing its Climate Action and A daptation Plan (CAAP), which will assess the impacts of climate change on Costa Mesa and identify the most feasible, high-priority strategies for achieving the State’s goal of carbon neutrality by 2045.
Implementation of the CAAP may require further updates to the General Plan. The City anticipates completing this project by July 2026.
The General Plan’s Safety Element will be updated to incorporat e references to the City’s Local Hazard Mitigation Plan and to comply with applicable State laws , including SB 1035 (related to flood and hazard resilience) and AB 747/SB 99 (evacuation route planning). As part of this broader effort, Cit y staff will evaluate other General Plan Elements to integrate environmental justice policies in accordance with the Planning for Healthy Communities Act (SB 1000). A key component of this work involves identifying existing General Plan policies that support environmental justice, as well as developing new polic ies where needed. In alignment with SB 1425, the Cit y will also review and update t he Open Space Element, the Open Space Master Plan, and its associated ac tion program to ensure equitable access to open space for all residents. These updates will be coordinated with the City’s environmental justice policies to promote equity, inclusion, and long-term community resilience. These updates to the General Plan are expected to complete by end of 2026.
122
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 5
[Updated: March 31, 2025]
A. Major Planning/City Activities That Implement the General Plan
1) Major Planning Activities and Land Use Development Projects
This section highlights major planning activiti es and land use development projects that implement the General Plan. Approval of these projects requires findings of consistency with the General Plan and the description will note the primary General Plan Element or Elements that it implements.
a. Approved the Development Agreement, Rezone and Specific Plan for One Metro West (Ordinances No. 2024-05, 2024-06, and 2024-07) on June 18, 2024:
Implements the Land Use and Housing Elements.
o Land Use Element Goals:
LU-1: “A Balanced Community with a Mix of Land Uses to Meet Resident and Business Needs”
LU-5: “Adequate Community Services, Transportation System, and Infrastructure to Meet Growth”
o Housing Element Goal:
Goal # 2: “ Facilitate the creation and availability of housing for residents at all income levels and for those with special housing needs”
One Metro West is a mixed-use develop ment which includes 1,057 apartment units, 6,000 square feet of ground fl oor retail space, a 25,000 squar e-foot office building,
1.5-acres of publicly accessible open space, and various offsite improvements along Sunflower Avenue (e.g., new bicycle lanes and landscaped medians). On June 18, 2024, the City Council approv ed amendment to the Deve lopment Agreement to change the timing of payment of impac t fees and community benefits funding, modified project effective date to clarify that the project is exempt from the requirements of a vote of the electorate and modified the timing of the artwork design for approval. The final reading to adopt th e Development Agreement, Rezone, and Specific Plan were required to be effective. Once constructed, the project will increase the housing supply in the City of Costa Mesa, including 106 units that are affordable to lower-income households (i.e., 67 units reserved for very low-income households and 39 units reserved for low-income households). In addition to Development Impact Fees, the project will also provide funding towards public safety, roadway/trails improvement, and the City’s Economic Re covery and Community Enhancement Fund.
City Council June 18, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6726112&GUID=DF62C4 8D-76FA-4F74-9E1C-24555D1934E0
123
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 6
[Updated: March 31, 2025]
b. Approved Amendment to the Costa Mesa Municipal Code (CMMC) to update Cannabis Regulations (Ordinances No. 2024-03 and 2024-04) on May 7, 2024:
Implements the Land Use Element.
o Land Use Element Goal:
Goal LU-6: “Economically Viable and Productive Land Uses that Increase the City’s Tax Base”
The City reviewed and updated CMMC regul ations for cannabis retail uses. The updated provisions are intended to address issues of potential overconcentration, land use compatibility, as well as improving economic and business conditions.
City Council May 7, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6658310&GUID=197A983 E-9A68-417A-9FE6-AE8F8CA145CA
c. Approved Amendment to the CMMC to St reamline Outdoor Dining Areas (Ordinance No. 2024-01) on January 16, 2024:
Implements the Land Use and Community Design Elements:
o Land Use Element Goals:
LU-1: “A Balanced Community with a Mix of Land Uses to Meet Resident and Business Needs”
LU-6: “Economically Viable and Productive Land Uses that Increase the City’s Tax Base.
o Community Design Element Goal:
CD-1: “ Vehicular and Pedestrian Corridors”
The approved amendment to CMMC est ablished a permitting process and development standards for outdoor dining areas located on private properties within private parking lots, courtyards, oversized walkways, interior landscaped areas, and setback areas. Among other provisions in cluded in the Ordinance, the provisions provide for a streamlined permitting process, with parking regulation exemptions to incentivize outdoor dining in the City. The CMMC Outdoor Dining provisions and implementation program enc ourages new opportunities and supports existing businesses; as well as provides design elements to promote pedestrian amenities.
The program contributes to the City’ s beatification by enhancing the visual environment of Costa Mesa’s vehicular and pedestrian paths and corridors.
City Council January 16, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6478262&GUID=A10FEB 32-6266-471E-AFDF-D4EDFD3FCC0E
d. Approved Inclusionary/Affordable H ousing Ordinance on August 6, 2024:
124
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 7
[Updated: March 31, 2025]
Implements the Land Use and Housing Elements:
o Land Use Element Goals:
Goal LU-1: “ A Balanced Community with a Mix of Land Uses to Meet Resident and Business Needs”
o Housing Element Goals:
Goal # 2: “ Facilitate the creation and availability of housing for residents at all income levels and for those with special housing needs.”
Goal #4: “ Provide housing opportunities to residents of all social and economic segments of the community without discrimination on the basis of race, color, religion, sex, sexual orientation, disability/medical conditions, national origin or ancestr y, marital status, age, household composition or size, source of income, or any other arbitrary factors.”
The approved amendment to the CMMC to establish the affordable housing requirements for certain new residential development projects and a fee resolution to establish the affordable housing in-lieu fee schedule. Adoption of an Affordable Housing Ordinance is a step towards addre ssing this issue coupled with the other Housing Element programs intended to re move or reduce existing barriers and constraints to market-rate housing devel opments. Furthermore, the Ordinance will help towards achieving the City’s RHNA for the very-low-, low-, and moderate-income categories.
Following adoption of the Or dinance, the City has been dev eloping a program to monitor, manage and enforce the adopted inclusionary ordinance. These tasks include but are not limited to assisting developers with the City’s new inclusionary housing program, the collectio n and management of in-lieu fees, preparation of requests for proposals for housing projects funded by in-lieu fees, agenda reports for allocation of in-lieu housing funds, creation of community development partnerships, preparation and monitoring of affordabl e housing agreements for inclusionary projects, annual rent certifications to ensure required units are rented to households at the appropriate income levels, and appropriate tracking and reporting of units to the State annually.
This program fulfills the objective of Progr am 2A of the Housing Element and help achieve City Council’s goal to “diversify , stabilize, and increase housing to reflect community needs.
City Council February 27, 2024 Study Session Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6554564&GUID=FD7A6E 2C-57D9-41B7-AAA6-60D06D0D5B66
City Council April 2, 2024 Ordinance No. 2024-02 Staff Report:
125
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 8
[Updated: March 31, 2025]
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6606550&GUID=99160B5 7-AADB-402D-9FD2-7A72792DF456
City Council June 18, 2024 Fee Resolution and Ordinance No. 2024-02 Staff Reports:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6726107&GUID=E9E75 AF2-0FBD-43E4-A8A8-2F4FA2E63722
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6726106&GUID=71871 66B-02AF-4690-8CEA-627EC9ACD7DE
City Council August 6, 2024 Ordinance No. 2024-02 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6816039&GUID=25853D4 9-9834-48F6-AA12-8841A927FF9A&Options=&Search=
e. General Plan Sc reening Requests:
Implements Land Use Element Goal:
o Goal LU-1: “ A Balanced Community with a Mix of Land Uses to Meet Resident and Business Needs”
Pursuant to City Council Policy 500-2, the fo llowing privately-initiated General Plan Amendments were presented to City Council for consideration. The policy requires that the City Council screen the request prior to its acceptance for formal entitlement processing. The applicants have received feedback from City Council and have submitted a housing development proposal for processing:
1. 220 Victoria Place: 40-unit resi dential development on 1.77-acre site
City Council August 6, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6816049&GUID=802 DDB31-6CD1-40E5-9CCE-E01BF2F8224A
2. 3150 Bear Street: 146-unit residentia l development on 6.1- acre site
City Council September 3, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6845949&GUID=403 DA47F-9344-43A8-9509-1941A24CED2E
2) City Actions that Further the Goals of the General Plan
This section highlights other City actions, other than land use development, that further the goals of one or more specific general plan element(s). 126
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 9
[Updated: March 31, 2025]
a. Land Use Element
The following City activity implements the Land Use Element Goal LU-6:
Economically Viable and Productive Land Uses that Increase the City’s Tax Base:
1. Business Improvement Area (B IA) – reauthorize and levy annual assessment: Assist hotel and motel indus try in its promotion of tourisms within the City.
The BIA assessment will be us ed to fund Travel Costa Mesa (TCM). TCM will fund activities to promot e tourism in Costa Mesa and sponsor related tourist events that benefit the hotel and motel businesses within the City.
City Council June 4, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6712597&GUID=A62 CFDBD-686E-4199-AFF8-3BB777A82D48
b. Circulation Element
The following City activities achieve various goals of the Circulation Element:
o Goal C-1: “ Implement “Complete Streets” Policies on Roadways in Costa Mesa”
o Goal C-3: “Enhance Regional Mobility and Coordination” o Goal C-5: “ Ensure Coordination between the Land Use and Circulation Systems”
1. Approved the Pedestrian Mast er Plan and an amendment to the General Plan Circulation Element on May 7, 2024:
The approved General Plan Amendm ent (PGPA-23-0001) updated the Circulation Element policies to ensure that the Pedestrian Master Plan (PMP) goals and provisions are considered and implemented as private and public projects are approved by the City. The update will enhance the pedestrian environment for a ll pedestrian types, ages.
Implementation of the PMP and updated Circulation Element policies will help the City achieve its visi on for “a comprehensive and visible active transportation network and will promote safety, education, health, recreation, and access to important locations within the City while connecting to the larger regional network.”
City Council May 7, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6658305&G UID=27121A87-2A41-4746-AEAB-D917688B84C9
127
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 10
[Updated: March 31, 2025]
2. Updates to the City of Cost a Mesa Municipal Code Title 4 Bicycles and 10 Motor Vehicles and Traffic to be consistent with State provisions
Following the State’s approval of Assembly Bill (AB) 1909 and AB 2147, several provisions in the CMMC became inconsistent with the California Vehicle Code (CVC). Due to technological advancements and cultural shifts, public compliance and City enforcement of certain local transportation rules—especially those related to bicycles and pedestrians—have declined. In respons e, the City Attorney’s Office, Police Department, and Public Wor ks reviewed and recommended updates to Title 4 and Title 10 of the CMMC to align with state law, current technology, and community needs. These revisions also address the rise of e-bikes and aim to improve safety on roadways and sidewalks.
On March 6, 2024, Public Works and Police Department staff presented proposed updates to Titles 4 Bicycles and 10 Motor Vehicles and Traffic of the CMMC to the Active Transpor tation Committee. After receiving feedback, revisions were made and presented again on April 17, 2024, with final updates recommended by the Committee on May 1, 2024. Key changes included updated definitions for bicycles and bikeways to align with state law, new safety rules for bicyclists on sidewalks and roads, and clearer parking guidelines. Updates were also made to reflect recent state legislation on bike passing, pedestrian crosswalk use, and crosswalk visibility.
On June 18, 2024, City Council req uested additionally updates to address outdated terms like “accident” were replaced with “collision,” gendered language was made gender-neutral, and the term “nuisance” was reviewed for consistency. Other updates focused on legal language adjustments, and recommendations for public education and enforcement related to bike and pedestrian safety. Updates to CMMC Title 4 and 10 was approved by City Council on July 16, 2024.
City Council June 18, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6726104&G UID=CDF5E86D-9467-41AF-A404-E28B11294D4F
City Council July 16, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6781284&G UID=2EC21324-3DA5-432A-9152-69CCA5030DD8
128
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 11
[Updated: March 31, 2025]
3. Active Transportation Plan Impl ementation – Pedestrian and Bikeway Improvements
In 2024, the City completed Active Transportation improvements located throughout the City as shown on the Figure 1. The projects include:
Installation of Rectangular Rapi d Flashing Beacons (RRFB) at Paularino and Coolidge intersection, Town Center, Avenue of the Arts, and Whitter and Parkhill intersection;
Completion of the Adam s Avenue Class II-B Bike Lane
enhancements between the City boundary to Royal Palms Drive; Installation of Class III Bike Route on Fullerton Avenue between18th Street to East Bay Street;
Installation of Class III Bike R oute on East Bay Street to West Bay Street from Fullerton Avenue to Thurin Street,
Installation of a Class II-B Bike Lane on Santa Ana Avenue between Ogle Street to 17th Street,
Installation of a Class II Bike Lane on Santa Ana Avenue between 21st Street to 22nd Street,
Installation of High-Intensit y Activated CrossWalk (HAWK) signals at Wilson Street and Fordham Drive, and at 18th Street and Lions Park;
Installation of a pedestrian signal at West 19 th Street and Wallace Avenue; and,
Installation of K71 bike l ane bollards on Placentia Avenue between Victoria Street and 18th Street, on 19th Street between Wallace Avenue and Federal Avenue.
129
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 12
[Updated: March 31, 2025]
Figure 1: 2024 Active Transportation Improvements
i. Adams and Pinecreek Dr ive Intersection Project:
130
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 13
[Updated: March 31, 2025]
The project provides multi-modal intersection improvements at the intersection of Adams Avenue and Pinecreek Drive that encourage bicycling and improve mobility per the City’s approved Active Transportation Plan (ATP). The improvements at the intersection will include the removal of existing right turn slip lanes, slurry seal improvements, new bicycle facilit ies, bicycle and pedestrian ramps, green bike boxes, new signalized cr osswalk, new pavement striping and markings consisting of green t hermoplastic conflict zones, and high visibility crosswalks. The project will relocate the existing bus stop to the far side of the intersection and install new str eet lighting along the south side of Adams Avenue within the project’s limits. In addition, the project includes extensive traffi c signal modifications that include new signal poles, relocation of t he signal cabinet outside of the sidewalk, Accessible Pedestrian Signa ls (APS), yellow retroreflective border backplates, Leading Pedestrian Intervals (LPIs), and video detection capable of detecting motorists and bicyclists.
City Council February 20, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6504108& GUID=C4B4EEA3-8A11-49FC-9D84-B5CA6DE2203C
ii. Acceptance of Placentia Avenue, West 19th Street and East 17th Street Pavement R ehabilitation, Bicycle Facility, and Striping Improvement Project
The project consisted of street r ehabilitation, slurry seal, active transportation improvements, bicycle fa cility markings, and bike lane enhancements including the installation of K71 bollards, and parkway and median improvements. As part of this project, the newly installed bicycle lanes are consistent with the City’s Active Transportation Plan (ATP).
City Council September 17, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6862418& GUID=328E7157-D2B3-4001-972B-24E8AF8FAB6D
iii. Citywide Traffic Signal and HAWK Signal Installation Project – accept traffic signal improvements projects
The project included the construction and installation of a traffic signal at the intersection of West 19th Street and Wallace Avenue, and the installation of two (2) High-intens ity Activated cross-WalK (HAWK) signals at West 18th St reet next to Lions Park and at West Wilson Street next to Wilson Park. The project also included the installation of 131
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 14
[Updated: March 31, 2025]
a raised pedestrian crosswalk and a Rectangular Rapid-Flashing Beacon (RRFB) near the intersection of Meyer Place and Bay Street.
City Council March 7, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6658304& GUID=AB22B10D-AB3F-49D4-9178-9C73D16BF1CB
4. Preserve the character of residential neighborhoods:
i. Implementation of a Resi dential Permit Parking Program
The City adopt Resolution No. 2024-24, approving the implementation of a Resident Permit Parking (RPP) only restriction on Joann Street between Placentia Avenue and F ederal Avenue and on Federal Avenue between Joann Street and Darrell Street, and authorizing the Transportation Services Manager to extend the restriction within a 1,000-foot radius as needed, based on a qualifying petition from affected residents and Council-adopted guidelines.
City Council February 20, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6517260& GUID=67C0E258-0C1F-4CF2-9842-FE7AE1728A26
5. Roadway Maintenance and Improvement Projects
i. SB 1: Road Repair and Accountab ility Act – Project list for 2024- 2025
The City approved the Harbor Boulevard, West 17th Street, and Gisler Avenue roadway rehabilitation proj ects for funding with Road Maintenance and Rehabilitation Account (RMRA) revenues for Fiscal Year 2024-25. Public Works Department will also explore opportunities to incorporate bicycle and pedestrian improvements along these corridors.
City Council June 4, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6712585& GUID=20436AD5-41F4-4413-996B-073D85D75616
ii. Renewed Measure M2 Eligibil ity - Updated Citywide Pavement Management Plan, Eligible CIP projects includes Roadway Improvement, Active Transportation, Bikeway improvements.
132
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 15
[Updated: March 31, 2025]
Every year, the City renews its Measure M2 eligibility by submitting the required documents to Orange County Transportation Authority (OCTA). All Orange County cities are eligible for Fair Share funding, based on population, number of existi ng Master Plan of Arterial Highways centerline miles, and taxable sales. For FY 2024-25, Costa Mesa is estimated to receive approximately $3.6 million in Fair Share funds once OCTA eligibility requirements are met.
City Council June 4, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6712588& GUID=E6DEC895-8D7A-4CF8-BC43-2E82CCD74824
Measure M2 Expenditure Report, City Council November 19, 2024 Agenda Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=7025730& GUID=CCADB6FB-073D-4E69-8C90-55535D7704C6
iii. Submittal of a Grant Applicatio n for the Regional Traffic Signal Synchronization Program (Program P) Funding
The City submitted a grant application for the Regional Traffic Signal Synchronization Program (Project P) under the Orange County Transportation Authority’s (OCTA’s) Comprehensive Transportation Funding Program (CTFP) for Fi scal Years 2025-2026 to 2027-2028.
The RTSSP funds up to 80 percent of project costs with the remaining 20% covered by the City’s matching funds. The City of Costa Mesa, partnering with the Cities of Santa Ana and Newport Beach, submitted a joint Project “P” grant applicati on for the Bristol Street Corridor project to OCTA by the application deadline of October 24, 2024. The City of Santa Ana assumed the role of “Lead Agency” for the submittal of the application.
City Council November 19, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=7025731& GUID=3B9B0B1E-6409-4431-9FA5-9435A69642C4
iv. Profession Service Agreement with Kimely-Horn and Associates for professional engineering des ign services for the Signal Modernization for Systemic Safety Improvement Project
In 2022, the City of Costa Mesa co mpleted a Local Road Safety Plan (LRSP), which identified a framework to identify, analyze and develop traffic safety enhancements on the City’s roadway network. The LRSP identified systemic traffic signal-rela ted infrastructure improvements 133
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 16
[Updated: March 31, 2025]
that can be implemented throughout the City to enhance safety for all modes of travel.
In 2023, the City was awarded feder al grant funds to design and implement systemic safety improv ements to 129 of the City’s 131 signalized intersections. The Signal Modernization for Systemic Safety Improvements project (Project) will design and implement proven safety countermeasures for all users including implementing Leading Pedestrian Intervals (LPI) for up to 49 intersections, installing countdown pedestrian signal heads at 43 intersections, installing new yellow retroreflective border signal backplates at 129 signalized intersections to enhance signal visibility and compliance, upgrading all remaining 8” signal heads in th e City to standard 12” signal heads, installing battery backup systems at major intersections to keep signals and pedestrian crossings ac tive during unexpected power outages, and installing emergency vehi cle preemption devices at the remaining 30 intersections to complete the preemption network for the City’s emergency services. In 2024, the City retained Kimely-Horn and Associates to complete this project.
City Council November 19, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=7025732& GUID=B8234E90-7350-4A9F-BDC8-557AF81C0415
v. Development Impact Fees (DIF ) Annual Report and Traffic Impact Fee Analysis for Fiscal Year Ending June 30, 2024
The Mitigation Fee Act requires that City Council approve an annual report that provides information about the DIFs. These fees are required to be deposited into their ow n separate accounts or funds.
The law also requires that certain findings be made in association with accumulated DIFs. The City adopted a resolution to continue the citywide traffic impact fee for new development that incorporates recommendations from the Traffic Impact Fee Ad Hoc Committee and staff, which include:
o Adopt a traffic impact fee of $228 per Average Daily Trip (ADT) based on the Capital Im provement Projects in
Attachment 4 and Active Transportation projects in the
adopted Active Transportation Plan (ATP).
o Approve allocation of up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.
o Approve a five percent (5%) reduction in automobile trips as a result of ATP implementation and an additional five percent (5%) reduction in automobile trips for developments
134
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 17
[Updated: March 31, 2025]
proposing to implement active transportation improvements beyond typical development requirements.
o Approve the annual accounting of the Citywide Traffic Impact Fee Program.
City Council November 19, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=7025728& GUID=DFC74E4A-AFE5-428F-8A2E-D6B136B97AA7
c. Conservation Element
The following activities help achieve the Conservation Element Goals:
o Goal CON-4: Improved Air Quality
o Goal CON-3: Improved Water Supply and Quality
1. Acceptance of CalRecycl e SB 1383 Grant Award:
SB 1383 aims to reduce emissions of short-lived climate pollutants by 75% by 2025 and achieve 20% edible food recovery by 2025. The grant will be used to implement programs relating to outreach, collection, edible food recover, enforcement and inspection, procurement, and recordkeeping.
City Council November 19, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=7025736&G UID=892FA3D3-8B3C-4ECD-B8AC-C017CDE0238E
2. Participation in Clean Mobility Op tions (CMO) Pilot Program and OCTA Project Grant for Community Based Transit
The CMO Voucher Pilot Progr am is a statewide init iative that provides voucher-based funding for zero-emission carsharing, carpooling/ vanpooling, innovative transit services, and on-demand ride services in California’s historically underserved communities. The CMO program goals are as follows:
Increase clean mobility options for low-income and disadvantaged communities.
Provide community-driven mobility solutions throughout the State. Improve access to clean mobility opt ions that are safe, reliable, convenient, and affordable.
Reduce greenhouse gas emissions and criteria pollutants.
135
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 18
[Updated: March 31, 2025]
City Council January 16, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6478269&G UID=4692DC91-C6FD-4B10-96A3-54B6756FCFF4
The City used the grants funds to la unch Let’s Go Costa Mesa in November 2024. This program is a new on-demand rideshare service in partnership with Circuit to offe r free, clean energy transportation to residents with limited or no access to a personal automobile, though all members of the community are welcom e to use the service. The Let’s Go Costa Mesa service area consis ts of Westside Costa Mesa and College Park south of Joann Street and the area surrounding the East 17th Street shopping district bounded by East 18th Street on the north and East 16th Street on the south.
3. Acceptance of the Phase I Storm Drain Master Drainage Plan Update
The first part of the Storm Drain Master Plan (SDMP) update began with collecting new storm drain system maps and data throughout the City and then using that information to update the City's existing storm drain Geographic Information System (GIS). The City’s consultant team, Q3 Consulting, updated the GIS to include drainage projects built since the 2006 SDMPD.
Using this updated data, a new hy draulic model was developed to assess the existing storm drain system. The model identified and ranked drainage “hotspots” based on ponding depth during a 25-year design storm, prioritizing major roads and areas critical to emergency services.
The Existing Conditions Assessm ent Report (ECAR) analyzed these findings and ranked stormwater drainage issues citywide.
Following ECAR approva l, the next step was developing Proposed Drainage and Water Qua lity Improvements, in cluding Storm Water Alternatives Improvement Maps (SWAIM). These maps outline upgrades such as pipe rehabilitation, storm drain replacements, water quality enhancements, and Best Man agement Practices (BMPs) like infiltration galleries, diversion systems, and bio-filtration. These improvements will form the basis of the City's 20-year Stormwater Capital Improvement Program (CIP ) and guide future drainage fee proposals in the SDMP update.
City Council October 15, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6891887&G UID=6A645CEA-526C-4699-A1CF-B85D31C7CD2D
d. Safety Element
136
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 19
[Updated: March 31, 2025]
The following activities help achieve the Safety Element Goal S-1: Risk Management of Natural and Human-Caused Disasters:
These activities support emergency services and programs to ensure that the City can respond and reduce threats to life and property.
1. Fire Station No. 4 Training To wer and Site Improvement Project:
City Council April 2, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6606549&G UID=4ECBEF30-C6CC-4AF9-A170-ECA55B7EFADE
2. Conceptual Design of Fire Statio n No. 2 Reconstruction Project:
City Council October 15, 2024 Staff Report
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6891889&G UID=F43B59B9-6CD1-4256-81CD-A0F1C7E2FA7F
3. Animal Care Shelter Services – Priceless Pets Rescue
City Council April 16, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6634612&G UID=E5D48B91-0A6E-4C09-9516-CFFBC4063391
4. 2023 Operation Stonegarden Funds to be used to Deter Narcotics Trafficking
City Council May 21, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6698865&G UID=2E36EAFA-5BE8-4662-82D6-834B18BDCAAE
5. Extend Term of PSA with Falck M obile Health Corporation for Ambulance Services
City Council June 4, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6712583&G UID=A7787AFB-B083-4C77-9492-0ED63FEDFFB2
6. Annual Fire Inspection pursuant to SB 1205: inspect public and private schools, hotels, motels, lodging housings, and apartment buildings
City Council June 4, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6712582&G UID=3CF2FC3F-E30C-494B-8D35-545A293B2F73
137
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 20
[Updated: March 31, 2025]
7. Acceptance and Allocation of the 2024-2025 Office of Traffic Safety Grant for the Selective Traffic Enforcement Program
City Council October 1, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6876628&G UID=55FA1862-AE07-4953-83FF-B2489584A942
8. Subrecipient Agreem ent for the 2023 Urban Area Security Initiative Grant
City Council October 1, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6876629&G UID=1CA13706-2C72-4BF1-91B6-A733D90D892D
e. Open Space and Recreation Element
The following activities help achieve the Open Space and Recreational Element Goals:
o Goal OSR-1: Balanced and Accessible System of Parks and Open Spaces o Goal OSR-2A: Community Services Programs Meeting Community Needs o Goal OSR -3: Conserved Open Space
1. Expansion of Shalamar Park
The City approved the professional service agreement with Community Works Design Group to design improvements and expansion of Shalamar Park.
City Council January 16, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6478259&G UID=D31A5768-78BB-4750-A2BF-42DD898D895C
i. Approve Proposed Design Impr ovements for Shalimar Park
City Council August 6, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6816040 &GUID=BDE3B86B-99A0-4201-9398-04FD85E54CEB
ii. Approve purchase of 778 Shal imar Drive for park expansion
City Council November 19, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=7025742 &GUID=9C6A8BC6-1144-43F6-B714-ECE0671BA766
138
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 21
[Updated: March 31, 2025]
2. Expansion of Ketchum-Libolt Park
The City approved the professional service agreement with Architerra Design Group, Inc. to design improvements and expansion of Ketchum-Libolt Park.
City Council January 16, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6478260&G UID=C6009A04-F8A1-48C7-9E28-38FD8EF2B338
i. Approve Proposed Design Improv ements for Ketchum-Libolt Park
City Council July 16, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6781286 &GUID=1D3467FE-8D85-4BC5-81F4-91F916CA3B64
3. Light Installation and Athletic Facility Project
City adopted plans to install new lighting facilities include Jack Hammett Sports Complex, TeWinkle Athlet ic Complex, Costa Mesa Tennis Center, and Bark Park.
City Council January 16, 2024 Staff Report
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6478263&G UID=4575CBA7-79CE-44D1-87C4-D235007171A6
4. Completion of Improvements to the Jack Hammet Sports Complex
The improvements to the sport complex included parking lot pavement improvements, concrete sidewalk, access ramps, installation of a new storage building, site grading, lighting, landscape improvements, and integrated art features.
City Council January 16, 2024 Staff Report
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6478264&G UID=E0A415A6-6E64-43B2-93C2-F544099B7DA4
5. Vernal Pool Restoration Project at Fairview Park
The City approved amendment No. 2 to the Professional Service Agreement with Glenn Lukos Assocaites vernal pools restoration project and biological monitoring services fo r the Vernal Pools 5, 6, and 7 Restoration Project at Fairview Park. The scope of the vernal pools restoration project includes:
139
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 22
[Updated: March 31, 2025]
Removal of non-native plants and turf
Planting and reestablishm ent of vernal pool plants
Planting and establis hment of a coastal sage scrub (CSS) buffer around the vernal pool watershed area
Installation of a temporary irri gation system to supply water to the installed container plants during establishment
Repair and restoration of elevat ion and contours of vernal pools 5 and 6
Inoculation of fairy shrimp cysts
Delineation fencing and educational signage around the vernal pool 5, 6, and 7 watershed and buffer
The work under Amendment No. 2 is expected to be performed from spring 2024 through spring 2025, comp leting the 2nd year of the five- year establishment period for the restoration.
City Council May 7, 2024 Staff Report
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6658302&G UID=7C1F1807-31F0-4124-A5FB-CF1585C7C1FC
6. Continue Professional Service Ag reement with Cabco Yellow, Inc. for Senior Transportation Programs
The Costa Mesa Senior Center offers a Senior Transportation Program (STP) for Costa Mesa residents ages 60 and older. The STP includes two components - the Senior Mobili ty Program (SMP) and the Medical Transportation Program (MTP). The Senior Mobility Program (SMP) provides transportation to and from the Senior Center as well as for personal shopping trips and social tr ips within the boundaries of Costa Mesa’s city limits.
The Medical Transportat ion Program (MTP) progr am provides senior citizens with transportation to and from their home/residence to various medical facilities in Costa Mesa, as well as medical appointments in Newport Beach, Fountain Valley, Santa Ana, Huntington Beach, Tustin, Irvine, Westminster, Garden Grove, Orange, La Habra, Anaheim, and the Long Beach VA Hospital.
In 2020, the City entered into an emergency one-year PSA with California Yellow Cab. On May 18, 2021, City Council approved a five- year PSA for California Yellow Cab to provide services for the SMP and MTP. California Yellow Cab provides taxis for individuals in need of transportation and can be scheduled 48 hours in advance. California 140
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 23
[Updated: March 31, 2025]
Yellow Cab charges $12.50 per ride anywhere in Costa Mesa and charges an additional $2.50 per mile beyond Costa Mesa for appointments. Currently, the city subs idizes 100% of the cost of every ride to allow free transportation to pr ogram users, allows both one-way and round-trip rides, and has no limit on the number of rides a program user may book per month. The PSA with California Yellow Cab also provides services to Network for Homeless Solutions (NHS) clientele, but this service is in addition to the SMP or MTP.
City Council March 19, 2024 Staff Report
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6576103&G UID=F1165E56-CEBD-49E1-96DB-ED1E9D47C2F2
f. Housing Element
The following activities implements the Housing Element Goals:
o Goal #1: Preserve and enhance the City’s existing housing supply. o Goal #2: Facilitate the creation and availability of housing for residents at all income levels and for those with special housing needs. o Goal #4: Provide housing opportunities to residents of all social and economic segments of the community without discrimination on the basis of race, color, religion, sexual orientation, disability/medical conditions, national origin or ancestry, marital status, age, household composition or size, source of income, or any other arbitrary factors.
1. Annual Action Plan Funding Priori ties for Community Development Block Grant (CDBG) and Home Investment Partnerships Grant: $1.5 million used for various activities that assist low- and moderate-income Costa Mesa residents.
Funding from these grant resources will be used for the following City activities:
i. Capital Improvement: roof r eplacement at Senior Center ii. Public Safety: Fund a porti on of City’s Community Outreach Worker and public services grant for community-based non- profit organizations
iii. Housing Rehabilitat ion Program Administration – Fund staff and other direct costs associated with administering the City’s HOME-funded housing rehabilitation program.
iv. Community Improvement/Code En forcement – support work of two full-time and one- part time City Community Improvement Officers – activity will be limited to eligible low- and moderate- income Census Track Block Groups.
v. Administration – CDBG Progr am Administration and Fair Housing Foundation
141
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 24
[Updated: March 31, 2025]
City Council May 21, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6698866&G UID=847162F5-BE8E-447F-B378-6B281F11769E
2. Bridge Shelter Services: Amendm ent to the Professional Service Agreements with Mercy House and Bracken’s Kitchen
In April 2021, the City of Costa Mesa (City) completed construction of its permanent Bridge Shelter (Shelter) at 3175 Airway Avenue, offering 72 beds. In July 2023, the City Council approved an expansion, adding 16 beds and increasing the Shelter’s total capacity to 85 guests. Each year, the Shelter provides interim h ousing and comprehensive support services to approximately 220 individuals. Since opening, it has successfully helped over 170 people transition into permanent housing.
Mercy House will continue overseei ng shelter operations, including janitorial services, logistics, trans portation, volunteer coordination, and security. Bracken’s Kitchen will remain the Shelter Kitchen Operator, ensuring high-quality meals and staffing the kitchen.
City Council September 17, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6862419&G UID=215C8F49-9E96-434B-9256-C3B113A6C580
g. Historical and Cult ural Resources Element
Approved the “Leroy Anderson House” located at 208 Magnolia Street Local Historic Register on June 18, 2024
Implements the Historical and Cultural Resources Element:
o Historical and Cultural Resources Element Goal
Goal HCR-1: “ Historical, Archeological, and Paleontological Resources Preservation”
The home located at 208 Magnolia Street has special historical, architectural and community value in that the structure reflects the transitional period of early Costa Mesa residential development during whic h the former farming community of Harper evolved from an agricultural area to the more densely developed town and is one of the earliest residences construct ed in the Newport Heights Tract during that period. Additionally, the subject re sidence has community value in that the house was the long-term residence of Leroy P. Anderson, a prominent local attorney who was instrumental in the ear ly development of Costa Mesa. Further, preservation of this historical residenc e is consistent with the City’s Historic Preservation Ordinance “Purpose” in that designating the property on the City’s Historic Registry will: (1) further saf eguard the City’s heritage as embodied and 142
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 25
[Updated: March 31, 2025]
reflected in the subject property, (2) encourage public knowledge, understanding, and appreciation of the City’s past by fostering civic and neighborhood pride and a sense of identity based on the recognition of a cultural resource, (3) preserve a diverse and harmonious architectural style t hat reflects the City’s history, and (4) enhance property values and increase economic and financial benefits to the City by protecting a local neighborhood historical resource asset.
City Council June 18, 2024 Staff Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6726111&GUID=A1BB 898D-C5C6-4234-A680-E636BA5C51D5
h. Noise Element
The City continuously implements the Nois e Element Goals by evaluating both existing and anticipated noise conditions for all projects. Each project is assessed for compatibility with adopt ed noise and land use criteria, as well as applicable interior and exterior noise standards , including Title 24 requirements for new residential developments. St aff identifies noise mitiga tion opportunities during project evaluations and applies appropriate environmental review processes as needed. For instance, when an acoustical st udy is required, specific sound attenuation measures are incorporated into both interior and exterior spaces.
Additionally, mixed-use dev elopments must strategica lly position noise sources away from residential areas.
The City also monitors developments rela ted to John Wayne Airport operations, such as the recent General Aviation Pr ogram, to prevent in creased noise levels.
Meanwhile, the Community Improvement Division acti vely investigates and addresses all noise-related concerns submitted for review.
i. Growth Management Element
The City actively implements the Growth Management Element Goals by aligning land use and transportation planning policies with state, regional, and local growth management efforts. To suppor t informed decision-making, growth projections, and transportation modeling, the City provides data and reports upon request to the Center for Demographic Research, t he Southern California Association of Governments, the State Department of Finance, Orange County Transit Authority, and the Newport Mesa Unified School District.
j. Community Design Element
The City continuously implements the goals of the Community Design Element by ensuring that land use developments and c apital improvement projects enhance the community’s visual character and overall quality of life. 143
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 26
[Updated: March 31, 2025]
Land use development projects are revi ewed and designed to align with urban plans, General Plan policies, and zoning development standards while ensuring compatibility with surrounding neighborhoods. Residential developments are also evaluated to meet the City’s Residential Design Guidelines, which promote design excellence in new housing projects. When applicable, developments must also adhere to the City’s comprehensive la ndscaping standards outlined in the municipal code to ensure aesthetic appeal and environmental sustainability. The Capital Improvement Projects outlined in the Circulation Element, along with the recent approval of the Pedestrian Master Plan, highlight the City’s commitment to enhancing its vehicular and pedestrian pathways and corridors.
144
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 27
[Updated: March 31, 2025]
B. Summary of the Housing Element Implementation (Housing Program Status Report)
Below is a summary of the 2024 Housing Element APR.
1) The City’s progress in meeting its share of the Regional Housing Needs Assessment (RHNA) allocation:
The 6th Cycle Housing Element planning pe riod is between October 15, 2021 through October 15, 2029. The City’s 6th Cycle RHNA allocation is 11,760 total units including 6,801 lower income units (2,919 very-low, 1,794 low and 2,088 moderate-income units) and 4,959 above moderate-income units.
a. Building Permits Issued during the 6th Cycle Housing Element (thus far) and Building Permits Issued during 2024
From October 15, 2021 (start of the 6th Housing Element Cycle) to December 31, 2024, the City issued building permits for a total of 373 residential units, including 312 affordable units and 60 above moderate-income units (shown in Table 1 Below and Housing Element APR Attachment 1 - Table B). The majority of the affordable units were accessory dwelling units (ADUs) with 58 ADUs in the very low-income category, 162 ADUs in the low-income category and 32 ADUs in the moderate- income category. Additionally, completion of Phase I of the Mesa Vista Homekey development (2274 Neport Boulevard) pr ovided 40 extremely low-income units and one above moderate manager’s unit. With the exception of the Mesa Vista project, these permitted housing units ar e all within existing residential neighborhoods.
Table 1: Total Buildin
g Permits Issued in 6th Housing Element Cycle
Income
Category
RHNA
Allocation
(Housing
Units)
October
2021-
December
2022
2023 2024 Total Progress
in Housing
Element
Reporting
Period
(October 2021-
December
2029)
Very Low
Income
2,919 units 27 47 24 98
Low
Income
1,794 units 56 61 45 162
Moderate
Income
2,088 units 19 13 20 52
Above
Moderate
Income
4,959 units 16 11 34 61
Total: 11,760 units 118 132 123 373
145
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 28
[Updated: March 31, 2025]
Costa Mesa Housing Construction Calendar Years 2024
During the calendar year 2024, a total of 284 housing uni ts were constructed in the City. Because some new projects required demolition of existing housing units, the net increase of housing units for 2024 was 273 units. Of the 284 units constructed, nine were single-family residences, 66 were ADUs, and 209 were multifamily housing units associated with the Lux Apartments (2277 Harbor Boulevard) which were completed this year. Of the 284 units constructed in 2024, 75 were in the affordable category.
b. Housing Development Projects
The City also approved four housing development projects that required discretionary review that will provide a net increase of ten housing units (including five ADUs). Additionally, the City approv ed three housing development projects pursuant to Senate Bill (SB) 9 that will permit five units ; requires demolition of 2 units and provide a net increase of three housing units once constructed. Table 2 provides a list of housing development projects that were approved in 2024.
Table 2: 2024 Approved Housing Devel opment Projects (Discretionary Approval)
Housing
Development
Projects
Propos
ed
Units
Existing/Demolition Net Total
Two-unit small lot
subdivision at
1022 West Wilson
Street
2 1 unit, to be
demolished
1 Two-unit small lot
subdivision at 146
Rochester Street
2 1 unit, to be
demolished
1 Two duplexes with
four detached
ADUs at 374 and
376 Hamilton
Street
4 units +
4 ADUs
2 units, to be
demolished
2 units + 4 ADUs
Two-units and
ADU at 241 Ogle
Street
2 units
+1 ADU
1 unit, to be
demolished
I unit + 1 ADU
Total Net Units 10 housing units
146
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 29
[Updated: March 31, 2025]
For calendar year 2024, the City received a total of eight housing applications that includes two or more units for a total of 272 housing units. Table 3 provides a list of housing development projects that are currently under entitlement review and being processed by the City as of December 2024.
Table 3: Applied Housing Developmen t Projects (Discretionary Approval) - Under Review as of December 2024
Housing Development Projects Proposed
Units
Existing/
Demolition
Net Total
Multifamily Apartment at 3333
Susan Street [Applied 2023]
1,050 units 0 1,050
units
Single Room Occupancy at 2205
Harbor [Applied 2023]
46 units 0 46 units
Small-lot subdivision at 215 and
223 Mesa Drive, Density Bonus
Request [Applied 2024]
6 units 2 units, to be
demolished
4 units
Small-lot subdivision at 734 W
20th Street [Applied 2024]
3 units 0 3 units
Condominium at 220, 222, 234,
236 Victoria Street [Applied 2024]
40 units 0 40 units
Senior Housing (Jamboree) at
695 19th Street [Applied 2024]
70 units 0 70 units
Single Family and Townhomes at
3150 Bear Street [Applied 2024]
142 units 0 142 units
Small-lot subdivision at 2195
Pacific Avenue [Applied 2024]
10 units 0 10 units
Detached Single Family
Development at 2074 Pomona
Avenue [Applied 2024]
2 units 1 unit, to be
demolished
1 unit
Duplex, 1 Detached ADU at 210
Cabrillo Street [Applied 2024]
3 units 1 unit, to be
demolished
2 units
Total Net Units 1,368
Units
Throughout the 2021-2019 Housing Element pl anning period, the City continues to monitor and track the number of housing units in the “pipeline” (constituting projects within entitlement review, entitled, under construction and recently constructed).
These units officially count towards the RHNA when a building permit is pulled.
147
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 30
[Updated: March 31, 2025]
As of February 2025, there are an additional 1,238 entitled housing units expected to complete construction within the 6th Cycl e Housing Element period. These entitled housing developments are listed in Table 4.
Table 4: Entitled Pipeline Housing De velopment Projects, Anticipated to Complete Construction within Housing Element Planning Period Housing
Development
Projects
Very
Low
Income
Low
Income
Moderate
Income
Above
Moderate
Income
Total
Units
One Metro West -
1683 Sunflower
67 units 39 units -- 951 units 1,050
units
1711-1719 Pomona
Avenue (Live/Work)
-- -- -- 8 units 8 units
1540 Superior
Avenue (Live/Work)
-- -- -- 9 units 9 units
1400 Bristol Street
(Travelodge – Project
Homekey)
76 units -- -- 2 units 78 units
2274 Newport
(Phase II – Motel 6/
Mesa Vista
Apartments, Project
Homekey)
48 units -- -- -- 48 units
960 West 16th Street
(Live/Work)
-- -- -- 38 units 38 units
Total 191(Very
Low)
39 (Low) -- 1,008
(Above
Moderate)
1,238
Units
c. A listing of sites rezoned to acco mmodate the City’s share of regional housing need:
The City’s 6th Cycle Housing Element includes several housing programs that require updating zoning for specific areas in the City to accommodate housing on housing opportunity sites (“candidate site s”) based on the City’s share of the regional housing need. At this time, the City has not yet completed its rezoning of candidate sites that were identified in the 6th Cycle Housing Element; however, the City has assembled a staff team to work on the effort and secured project funding to complete the rezoning program.
The City issued a request for proposal for a qualified consultant to provide services to help complete the complex rezoning effort in October, 2024 and on February 18, 2025, City Council approved the professional serv ice agreement with Dudek 148
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 31
[Updated: March 31, 2025]
to complete the rezoning program. Staff is currently processing contracts for this and anticipates the effort to commence in March 2025.
The City-wide rezoning program will create the framework for additional future development of new housing in compli ance with the City’s Housing Element.
These programs are complex multi-year efforts that will require policy and process modifications to facilitate new developm ent while preserving existing residential neighborhoods. These major programs will involve community visioning and engagement, as well as environmental re view to comply with the California Environmental Quality Act. The program will account for notable progress in implementing 18 of the 47 Housing Elem ent programs, including completion Housing Element Programs 3C, 3D, 3H, 3 I, 3J, 3N and 3R, which specifically address increased densities and/or allowing housing as a permitting use in certain areas of the City.
It also important to note, that the City has progressed towards rezoning three of the housing candidate sites:
Housing Candidate Site #196 3333 Susan Street : The Housing Element envisioned 120 units on this site, with 59 units affordable to lower-income households on 2.4 acres. The property owner of this housing opportunity site submitted a housing development applicat ion to redevelop the entire 14.25 acre for mixed-use development. The proposed project component includes 1,050 multifamily units, open space, and a small retail component. The application was submitted in December 2023. The number of units that will be reserved for lower-income households will be determined as the project progresses through the development review process.
Housing Candidate Site #40 Fairview Developmental Center [Housing Program 3B]: The City is leading the effort to rezone the Fairview Development Center to provide opportunity for housing development. The Housing Element envisioned 2,300 units on this site, with 40% of the units affordable to low- and very low-income households. City has progressed its efforts to prepare a Specific Plan, General Plan Amendm ent and Environmental Impact Report to guide the reuse of the Fairview Deve lopmental Center (FDC). The planning process is being funded through a $3.5 million grant from the State pursuant to Senate Bill 188.
The City retained the professional services of Placeworks and initiated the Fairview Developmental Center (FDC) Specific Plan project in 2023. The current phase of the project generally includes the preparation of a specific plan and associated environmental review for th e re-use of the site with a range of affordable and market rate housing. Technical studies have been completed and the City continues to hold bi-weekly coordination meetings with the State Department of General Services (D GS) and Department of Development 149
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 32
[Updated: March 31, 2025]
Services (DDS). In addition, staff and Placeworks have coordinated and hosted 18 community outreach events on the vi sioning and land use framework, as well as land use concepts, mobility, and urban design. It is anticipated that in Spring 2025, additional study sessions and public hearings will occur to create a preferred land use plan for the FDC Specific Plan. Following these hearings, staff will proceed with prepar ation of the specific plan and environmental review. More information on this process can be found on the project webpage:
fdcplan.com.
Housing Candidate Site #14 695 W. 19 th Street (Jamboree – Senior Housing [Housing Programs 2D and 4A]): The Housing Element envisioned 60 units reserved for senior residents. In 2020, the City Council approved an Exclusive Negotiating Agreement (ENA) to partner with Jam boree Housing Corporation in determining the feasibility for the ri ght to acquire a long-term leasehold interest in an approximately 0.90-acre por tion of the parking lo t at the Senior Center to develop affordable housing for Costa Mesa’s seniors. The Urban Master Plan Screening for the project wa s presented to the City Council at its February 20, 2024, meeting and the project is in entitlement review. Since this meeting, the applicant has increased thei r unit count from 60 to 70 affordable housing units, (69 senior units plus one manager’s unit). The units will be restricted to provide a combination of very low- and low-income units, including 34 permanent supportive housing units. On December 9, 2024, the Planning Commission made recommendation to City Council to approve the project. It is anticipated that the project will be presented to City Council for consideration in March 2025.
2) Housing Element Programs (Completed and Underway):
This section provides an overview of the progression towards completing additional Housing Element Programs, in addition to the ones mentioned as part of the rezoning program. This list highlight s the programs that have been completed or have had significant efforts towards its completion. A complete list of the Housing Element Programs is included 2024 HCD APR Form Table D.
1. Monitoring and Preservation of At-Risk Housing Units [Program 1C] - Complete The City has 1,144 total housing units with affordability covenants. Of these units, 75 very-low income are located at 1844 Park Avenue (Casa Bella Apartments) and were identified as at-risk of converting to market rate during the 2021-2029 Housing Element planning period. The City has reached out to the property management company (Moss Management Services, Inc. ) and confirmed that they hold an agreement with the United St ates Department of Hous ing and Urban Development (HUD), which renews every five-years, and m andates restricting the units under an affordability covenant for the life of the project. As these units are no longer at risk of converting to market rate, this Housing Element program is considered complete.
150
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 33
[Updated: March 31, 2025]
2. Affordable Housing (Inclusionary) Ordinance [Program 2A] – Complete
The City Council adopted the Affordable Housing Ordinance on August 6, 2024, which became effective on Septem ber 6, 2024. The approved amendment to the Costa Mesa Municipal Code (CMMC) to establis h the affordable housing requirements for certain new residential development projects and a fee resolution to establish the affordable housing in-lieu fee schedule. Adoption of an Affordable Housing Ordinance is a step towards addressing this iss ue coupled with the other Housing Element programs intended to remove or reduce exis ting barriers and constraints to market- rate Housing developments. Furthermore, the Ordinance will help towards achieving the City’s regional housing needs for the very-low-, low-, and moderate-income categories.
Housing Trust Fund
To further support affordable housing effo rts, a $2.5 million c ontribution was made during the budget making process for Fiscal Year 2024-25, from the City’s General Fund for a new Housing Trust Fund including a first-time homebuyer’s program. Staff will be bringing the item back to the City Council to further elaborate on and finalize the housing activities eligible for the Funds . Please note this fund is separate and apart from the Housing Authority Fund that contains funding for the Citywide rezoning and visioning efforts financed by year-end General Fund savings in previous years. It is also separate and apart fr om the In-Lieu-Fee Fund that will potentially receive affordable housing in-lieu pay ments from developers pursuant to the City’s adopted Affordable Housing Ordinance.
3. Promote the Development of Accessory Dwelling Unit [Program 3E] (Ongoing) The City Council processed updates to t he CMMC to streamline the development of Accessory Dwelling Units (ADUs) in compliance with State Housing Law in 2023 and as recently as March 2025. The City launched an ADU pre-approved program, inviting architects and contractors to submit pre-approved ADU plans for review with the City.
The City is currently reviewing seven in dividual pre-approved ADUs and will make these plans available for public use in Spring 2025. The City launched its ADU Legalization Program on Janu ary 1, 2025, to provide a pathway to legalize unpermitted ADUs built prior to January 1, 2020. The City also has a dedicated webpage to assist property owners in the ADU permitting process.
https://www.costamesaca.gov/government/departments-and-divisions/economic- anddevelopment-
services/planning/accessory-dwelling-units-adu
4. Explore Opportunities to implement Motel Conversions Through Project Homekey [Housing Program 3F and 4A]
151
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 34
[Updated: March 31, 2025]
a. The Motel 6 property located at 2274 Ne wport Boulevard involves the acquisition and two-phase adaptive reuse of an 88-unit motel into permanent housing. This project is also referred to as Mesa Vist a Apartments. To help finance the project the Costa Mesa City Council approved a $3.5 million America Rescue Plan Act (ARPA) funded grant, a $1.5 million HOME funded loan and an $850,000 Low and Moderate Income Housing Fund loan.
Phase 1 is completed and includes 40 housing units that are available to individuals earning 30% or less than the Area Median Income, 30 of which are permanent supportive housing units serving homeless veterans, and ten of which are for homeless individuals who meet the Mental Health Services Act eligibility criteria. Phase II will convert the rema ining 48 units into permanent supportive housing with wraparound services for senior s (62+) earning 50% or less of the Area Median Income. Building permits for Phase II were submitted in August 2024 and approved in February 2025, with proj ect completion expected by Summer 2025.
b. A second Homekey Project has been appr oved at the former Travelodge Inn at 1400 Bristol Street. American Family Housing, Inc. and the County of Orange have secured a $29.0 million dollar grant to acquire the site and convert existing rooms into 76 income/deed-restricted and two manager’s units. Demolition permit was issued in 2024 and construction is anticipat ed to begin in 2025. For this project, the City Council approved a $1.5 million ARPA funded grant and a $2.5 million Low and Moderate Income Housing Fund loan to help bridge the remaining funding gap.
5. Tenant Protection Program Fair Housing [Program 4A] – Ongoing The City approved a Tenant Protection Progr am that progresses the City’s Fair Housing goals adopted in the City’s Housi ng Element in 2023. The City’s Tenant Protection Program includes adoption of the Urgency Ordinance No. 2023-04 amending various section of CMMC, allocati on of funds to suppor t the program and create three full time staff positions to implement, monitor and enforce the Ordinance, and conduct outreach to landlords. Since adoption of the urgency Ordinance, staff has made specific changes to the City’s permitting process to require an applicant for a building permit to inform staff when a tenant eviction will occur. When staff is notified of a potential eviction, staff evaluates the building pe rmit scope of work to determine the appropriate tenant protecti on process. A similar proce ss is also included when staff is notified by a tenant who is being ev icted. Implementatio n of the program is ongoing and for this planning period the City received no-fault eviction notices affecting 31 households. Of those affected:
Twenty evictions notices were authorized re sulting in the lawful eviction of the household. Each one of t hese households was contacted by a City Outreach Worker to offer voluntary assistance during the eviction process. 152
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 35
[Updated: March 31, 2025]
Eleven eviction notices were denied resulting in the eviction being reversed. These households were allowed to remain in their homes.
6. Bridges Homeless Shelter [Program 4F]
In April 2021, the City of Costa Mesa comp leted the construction of its permanent Bridge Shelter within the city. Construction of the Bridge Shelter, as well as the organization and operation of the temporary Bridge Shelter at Lighthouse Church, and the ongoing efforts of the City’s Street Outreach Team represent Costa Mesa’s commitment to assisting vul nerable residents currently experiencing homelessness.
With the shelter in full operation, the City is able to assist up to 72 residents at one time and connect these residents with serv ices and assistance toward permanent housing solutions. On June 6, 2023, the City Council approved a capacity increase of 16 beds bringing the Shelter’s total capacity to 88 beds. On August 1, 2023, the City Council approved the submission of a joint application with the Orange County Health Care Agency to the State Department of He alth Care Services for funding to add 15 behavioral health beds and associated services at the Shelter. The City has since received an award of $4.2 million dollars to implement the additional beds, which are anticipated to be available for occupancy by April 2024.
7. Safety Element Update and Envi ronmental Justice Policies [2G] City Council approved the professional services agreement with Dudeck to commence the Climate Action Adaption Plan process on October 15, 2024. A working draft of the Safety Element is being prepared that incor porates references to the City’s Local Hazard Mitigation Plan, as well as to address other applicable State laws (SB 1035- Flood and Hazards and AB 747/SB 99-Evacuation Rout es). As part of this process, staff will also be evaluating other General Plan Elements to incorporate environmental justice policies pursuant to the Planning for Healthy Communities Act (SB 1000). This law requires jurisdictions to develop and in corporate policies aimed at improving conditions in lower-income communities t hat are disproportion ately impacted by pollution and other environmental hazards contributing to adverse health outcomes.
A key component of this effort includes identifying existing General Plan policies that already support environmental justice, as well as developing new policies where needed. The intent of SB 1000, as outlined in the Office of Planning and Research’s General Plan Guidelines, is to “addr ess unique or compounded health risks in disadvantaged communities by decreasing pollution exposure, increasing community assets, and improving overall health.”
In addition, the City will address SB 1425 by reviewing and updating the Open Space Element, the City’s Open Space Master Plan, and the accompanying action program to ensure equitable access to open space for all residents. These updates will be coordinated with the Environmental Justice Policies to promote equity and inclusion. 153
Annual Review for 2024 of Costa Mesa General Plan and Housing Element (8th Edition) Page 36
[Updated: March 31, 2025]
The revised Open Space Element will also em phasize the critical role of open space in enhancing climate resilience, aligning with the broader goals of the Safety Element.
8. Zoning Ordinance Updates (Housing Elem ent Programs 2F, 2H, 2J, 2O, 4E, 2E, 2M, 4G, 4E, and 2K)
These programs require analysis, and w here necessary, updates to residential parking standards, certain housing definitions and terminologies, and changes to the City’s development review process and findings to help streamline project approvals.
It is anticipated that these updates will be included in the citywide rezone program update. However, certain mi nor amendments to comply with State law or correct inconsistencies will be incorporated in the City’s annual code clean-up effort, anticipated to be brought to hearing in 2025. The objective of Program 2K is to review application fees, with a special focus on the density bonus fee, and update the fee(s) to avoid creating a constraint to the devel opment of affordable housing. Additionally, the citywide rezone program will necessitate further review of the local development review process for new housing application types and planning application fees.
CONCLUSION
The Costa Mesa 2015-2035 General Plan serves as an effective guide for orderly growth and development, preservation and conservation of open space land and natural resources, and efficient expenditure of public funds.
As illustrated, completed City projects such as, but not limited to, adopted ordinances, zoning code updates, completed street improvements, funding sources for park improvement, awarding contracts are in co nformance with the Ge neral Plan’s goals, objectives, and policies for each respective element. Furthermore, significant progress on various public works projects or private developments are also in accordance with the 2015- 2035 General Plan. The City’s legislative bodies have used the 2015-2035 General Plan as the primary source of long-range planning and policy direction. All future development and activities will be consistent with these goals and policies that will continue to guide growth and preserve the quality of life within the community.
154
Annual Review of Costa Mesa General Plan (8th Edition) Page 37 [
Updated: March 31, 2025]
At
tachment 1
6th Cycle Housing Element Annual Progress
Report (APR) Forms
For 2024
Attachment 1 is available online at:
https://www.costamesaca.gov/home/showdocument?id=59930
155
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-228 Meeting Date: 4/15/2025
TITLE:
APPEAL OF THE PLANNING COMMISSION’SDECISION TO APPROVE A CONDITIONAL USE PERMIT (CUP) PCUP-24-0011 TO OPERATE A RETAIL CANNABIS STOREFRONT BUSINESS WITH DELIVERY LOCATED AT 1912 HARBOR BOULEVARD (“GREEN MART”), IN THE LOCAL BUSINESS DISTRICT (C1)
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/
PLANNING DIVISION
PRESENTED BY: SCOTT DRAPKIN, ASSISTANT DIRECTOR OF DEVELOPMENT
SERVICES
CONTACT INFORMATION: MICHELLE HALLIGAN, SENIOR PLANNER, (714) 754-5608 RECOMMENDATION:
Staff recommends the City Council:
1. Find that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1) Existing Facilities.
2. Uphold the Planning Commission’sdecision to approve Conditional Use Permit PCUP-24-0011 based on findings of fact and subject to the conditions of approval as contained in the Resolution.
156
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
Item #: 25-228 Meeting Date: 4/15/2025
TITLE: APPEAL OF THE PLANNING COMMISSION’S DECISION TO APPROVE A CONDITIONAL USE PERMIT (CUP) PCUP-24-0011 TO OPERATE A RETAIL CANNABIS STOREFRONT BUSINESS WITH DELIVERY LOCATED AT 1912 HARBOR BOULEVARD (“GREEN MART”), IN THE LOCAL BUSINESS DISTRICT (C1)
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING
DIVISION
PRESENTED BY: SCOTT DRAPKIN, ASSISTANT DIRECTOR OF DEVELOPMENT SERVICES
CONTACT INFORMATION: MICHELLE HALLIGAN, SENIOR PLANNER, (714) 754-5608
RECOMMENDATION:
Staff recommends the City Council:
1. Find that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1) Existing Facilities.
2. Uphold the Planning Commission’s decision to a pprove Conditional Use Permit PCUP -24-0011 based on findings of fact and subject to the conditions of approval as contained in the Resolution.
APPLICANT/APPELLANT:
The applicant is Keith Sheinberg on behalf of RDK Group Holdings, LLC and the property owner, Dave Ruffell.
The appeal was filed by Carney Mehr, ALC.
BACKGROUND:
On February 24, 2025, the Planning Commission approved a CUP for a new cannabis storefront at 1912 Harbor Boulevard (PCUP-24-0011). Prior to being scheduled for Planning Commission review, the project was reviewed for consistency with the City’s applicable separation requirements for cannabis storefront operations, a background check of the applicant team was completed, and the applicant’s proposed business and security plan was reviewed by the City’s cannabis consultant. The applicant successfully passed these evaluations and staff issued a “CBP Notice to Proceed,” which allowed the applicant to proceed for CUP review.
The CUP was approved by the Planning Commission subject to findings and conditions of approval. A comprehensive staff report was provided to the Planning Commission, which is provided as Attachment 5 to this report.
157
Item #: 25-228 Meeting Date: 4/15/2025
The subject property is an approximate 6,500 -square-foot site that has street frontage on Harbor Boulevard. The site was previously occupied by a BBQ retail establishment. A 20-foot-wide alley with access from Harbor Boulevard and West 19 th Street also pro vides access to the rear of the subject property (including access to several parking spaces in a shared parking lot). The subject property shares parking facilities and access with several other adjacent properties located to the north and south.
Image 1 – Existing Shopping Center Street Photo
The site is zoned C1 (Local Business District) and is surrounded by C1 properties to the north and south. There is a property zoned PDC (Planned Development Commercial) and a property zoned C2 (General Commercial) located to the east, and properties located to the west across Harbor Boulevard are zoned C2 (General Commercial). The site has a General Plan Land Use Designation of Commercial Residential. The subject property is located along one of the City ’s primary commercial corridors, which includes a variety of uses, including, but not limited to, retail stores, restaurants, offices, medical offices, car dealerships, residences, and a cannabis storefront.
ANALYSIS:
The application includes a request for approval to allow a 2,400-square-foot retail cannabis storefront with delivery in an existing commercial building. The project has been determined by staff to be consistent with the City’s applicable separation requirements for cannabis storefront operations, a background check of the applicant team was completed, and the applicant’s proposed business and security plan was reviewed and determined adequate by the City’s cannabis consultant.
Conditional Use Permit and Cannabis Operations
Pursuant to the Costa Mesa Municipal Code ( CMMC), a CUP is required for the establishment of cannabis retail storefronts in a commercial zone. To approve a CUP, the final review body must find that the evidence presented in the administrative record substantially meets the CUP findings, as follows:
The proposed development or use is substantially compatible with developments in the same general area and would not be materially detrimental to other properties within the area; Granting the conditional use permit will not be materially detrimental to the health, safety and general welfare of the public or otherwise injurious to property or improvements within the immediate neighborhood; and
Granting the conditional use permit will not allow a use, density or intensity which is not in accordance with the General Plan designation and any applicable specific plan for the property.
158
Item #: 25-228 Meeting Date: 4/15/2025
The subject site is located within a commercial zone (C1 – Local Business District) where commercial development is allowed to include retail uses. As defined in the CMMC, “This district is intended to meet the local business needs of the community by providing a wide range of goods and services in a variety of locations throughout the City”. Pursuant to the CMMC, cannabis retail storefronts are subject to extensive regulations which are adopted to prevent land use inconsistencies with adjacent properties. In addition, proposed uses subject to CUPs generally include site-specific conditions of approval to ensure the required findings can be met. Similar to all of the City’s previously approved cannabis operations, this proposal is subject to conditions of approval specifically including, but not limited to, the following:
The hours of operations are limited to 7:00 AM to 10:00 PM Monday through Sunday; Cannabis inventory shall be secured using a lockable storage system during non-business hours; At least one licensed security guard shall be on premises during business hours; The prohibition of consumption of cannabis or cannabis products in public areas; cannabis consumption is limited to non-public areas, such as within a private residence. State law further prohibits cannabis consumption and open container possession within 1,000 feet of sensitive uses and while riding in or driving a vehicle;
There must be continuous video monitoring and recording of the interior and exterior of the premises;
No one under the age of 21 is allowed to enter the premises. If the business holds a retail medical cannabis license issued by the State, persons over the age of 18 may be allowed with the proper medical approval;
Prior to employment, all prospective employees must successfully pass a background check conducted by the City, and the employee must obtain a City issued identification badge; Cannabis products shall not be visible from the exterior of the building; Cannabis goods to be sold at this establishment (either storefront or delivery) must be obtained by a licensed cannabis distributor and have passed laboratory testing; Cannabis product packaging must be labeled with required test results and batch number; Packaging containing cannabis goods shall be tamper-resistant; Cannabis deliveries must be made in -person by an employee of the licensed retailer. An independent contractor or third-party courier service is not allowed; The applicant shall maintain proof of vehicle insurance for any and all vehicles being used to deliver cannabis goods;
The business shall maintain a list of all deliveries, including the address delivered to, the amount and type of product delivered, and any other information required by the State; Delivery vehicles shall be installed with a dedicated global positioning system (GPS) device for identifying the location of the vehicle; and
Signs, decals or any other form of advertisement on the delivery vehicles are prohibited.
Interior and Exterior Improvements
In conjunction with the proposed new use, the applicant proposes tenant upgrades to both the building’s interior and exterior. The interior improvements include demolishing existing demising walls, construction of new walls, constructing a second restroom, adding commercial showroom finishes, and installation of an odor control system.
159
Item #: 25-228 Meeting Date: 4/15/2025
Image 2 – Proposed Project Site/Floor Plan
The exterior improvements include an update to the existing commercial building in conformance with the Building Code, and an overall change in the design of the building façade (see the below Image 2 for existing building pictures and the proposed project exterior building rendering).
Image 3 – Existing and Proposed Project
Existing
Harbor Blvd.
Alley
160
Item #: 25-228 Meeting Date: 4/15/2025
Proposed
Parking
Pursuant to the CMMC Section 13-6, when there is a mixture of uses within a single development that share the same parking facilities, the total requirement for parking is determined by the Costa Mesa shared parking analysis procedures which is adopted by City Council Resolution. In 2016, the shared parking for the site and adjacent properties was considered by the Planning Commission and determined to meet the parking requirements pursuant to the City’s parking provisions. Further, CMMC Section 13-204 permits that when a use is changed that requires the sa me amount of parking as the previous use, no additional parking is required. The previous and proposed use at 1912 Harbor Boulevard are both retail uses and subject to the same parking ratio requirement (four spaces per 1,000 square feet of gross floor are a), and therefore the project complies with the City’s parking standards.
In addition, Assembly Bill 2097 (AB 2097) was signed into law by Governor Newsom and became effective on January 1, 2023. The primary objective of this legislation is to limit local governments from imposing minimum parking regulations on commercial and residential projects that are located within
0.5 miles of a major transit stop. Staff reviewed the nearby public transit facilities and determined that the subject property is located within 0.5 miles of a major transit stop (near the intersection of Harbor Boulevard and W. 19th Street). Therefore, pursuant to AB 2097 the City of Costa Mesa cannot impose a minimum parking requirement on this land use entitlement.
Lastly, the applicant is proposing to install a bike rack to encourage multimodal transportation. As conditioned, vendor and delivery vehicles would schedule or coordinate arrivals (phone, text, etc.) to ensure adequate parking is available on the subject property, and if parking shortages or other parking- related problems occur that are related to the proposed cannabis storefront, the business owner or operator will be required to monitor the parking lot and institute appropriate operational measures necessary to minimize or eliminate the problem in a manner deemed appropriate by the Director of Economic and Development Services.
161
Item #: 25-228 Meeting Date: 4/15/2025
Odor Attenuation
All cannabis products would arrive in State compliant packaging that is odor -resistant sealed and remain unopened while on the premises. Pursuant to the CMMC, “odor control devices and techniques shall be incorporated in all cannabis businesses to ensure that odors from cannabis are not detectable off site”. Further, as conditioned, if cannabis odor is detected outside of the building or off-site, the business owner/operator will be required to institute further operational measures necessary to eliminate off-site odors in a manner deemed appropriate by the Director of Economic and Development Services or their designee.
Customer and Employee Access
Customer access would be limited to the lobby and retail area. Customer circulation into the proposed establishment includes entering the licensed premise through the door fronting Harbor Boulevard into the lobby. An employee would verify the customer’s identity and age before allowing the customer to shop in the retail sales area. After a customer’s identity and age is verified and their transaction is completed, they must exit the retail sales area through an exit directly from the lobby. As further conditioned, staff and a security guard would monitor the area to ensure that customers are following regulations. All other areas of the premises would be accessible only to employees with the proper security credentials. Employees would enter through the customer entrance or two access-controlled entrances that lead directly into the back-of-house area. Employees would be able to exit through the access-controlled doors or through the main entrance/exit.
Planning Commission Review and Public Comment
The application was heard by the Planning Commission on February 24, 2025. After receiving staff’s presentation and recommendation for approval, the Planning Commission asked staff questions and then opened the public hearing. The applicant provided a presentation and the Planning Commission subsequently asked questions of the applicant. The Planning Commission then heard and considered public comments before closing the public hearing. The Planning Commission approved the application on a 3-2 vote, with Commissioners Andrade and Rojas voting no. (For specific details of the Planning Commission discussion and motion for approval, please see the attached draft minutes, provided as attachment 7.) The final Resolution reflecting the February 24, 2025, Planning Commission action is provided as Attachment 4 to this report. The written public comments are provided as Attachment 6. The Planning Commission staff report, attachments, and meeting video are also provided at the below links:
Planning Commission Staff Report and Attachments:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=7144851&GUID=43828B4D-C883- 4612-8918-F6E315B00E8B
Planning Commission Meeting Video:
https://costamesa.granicus.com/player/clip/4216?view_id=14&redirect=true
Seven public comment letters opposing the proposed use were submitted to the City prior to noon on the day of the Planning Commission meeting. During the public hearing, two members of the public spoke in support, and three members of the public spoke in opposition to the application.
162
Item #: 25-228 Meeting Date: 4/15/2025
Appeal of the Planning Commission’s Approval
On March 3, 2025, an appeal of the Planning Commission’s approval of the permit was timely filed by VMA Harbor Place Holding Company, represented by Carney Mehr, ALC. VMA Habor Place Holding Company is the owner of Harbor Place, a multi-tenant commercial center located immediately south of the subject site. In summary, the application for appeal noted the following general reasons for the appeal:
The plans provided insufficient detail;
Architectural incompatibility with adjacent buildings; Potential parking impacts to the adjacent property;
Parking lot circulation conflicts;
Operational issues related to vehicle loading/unloading, odor control, safety, and loitering; Burden of business enforcement on adjacent properties; and Character of applicant and absentee landlord.
The appeal application is included as Attachment 2 to this report.
The applicant has provided supplemental information for the City Council considerat ion, which is included as Attachment 3.
City Council “De Novo” Hearing
Pursuant to CMMC Chapter 9, Appeal and Review Procedures, the City Council shall conduct a new or “de novo” review of the matter which is to be considered at the first regular meeting following receipt of the appeal that also provides sufficient time for required public noticing. In the case of this appeal, the first regular meeting would have been the April 1, 2025 , City Council meeting . However, the appellant indicated their first available date was for the April 15, 2025 meeting, and the applicant agreed on this meeting date.
The City Council may exercise its independent judgment and discretion in making a decision, and the appeal hearing is not limited to the grounds stated for the review or the evidence that was previously presented to the Planning Commission. The City Council’s decision on the matter is the final decision.
ENVIRONMENTAL DETERMINATION:
The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301, for the permitting and/or minor alteration of Existing Facilities, involving negligible or no expansion of the existing or prior use. This project site contains an exist ing commercial building that has been used historically for commercial /retail operations. The application does not propose an increase in commercial floor area or otherwise expand the prior use of the site as commercial. The project is consistent with the applicable General Plan land use designation and policies as well as with the applicable zoning designation and regulations.
Furthermore, none of the exceptions that bar the application of a categorical exempt ion pursuant to CEQA Guidelines Section 15300.2 applies. Specifically, the project would not result in a cumulative impact; would not have a significant effect on the environment due to unusual circumstances; would 163
Item #: 25-228 Meeting Date: 4/15/2025
not result in damage to scenic resources; is not located on a hazardous site or location; and would not impact any historic resources.
ALTERNATIVES:
The City Council can consider the following decision alternatives:
1. Deny the appeal and uphold the Planning Commission’s decision. The City Council may adopt the attached Resolution upholding the Planning Commission's decision approving the CUP; or
2. Deny the appeal and uphold the Planning Commission’s decision to approve a CUP , but require modifications to the conditions of approval. The City Council may uphold the Planning Commission's decision and approve the request with specific changes that are necessary to address City Council concerns; or
3. Continue the item. The City Council may continue the item to a future meeting to allow for modifications or additional analysis; or
4. Grant the appeal and reverse the decision of the Planning Commission. If the City Council believes that there are insufficient facts to support the findings for approval, the City Council may deny approval of a CUP and direct staff to prepare a Resolution for denial reflecting the City Council’s findings for denial.
FISCAL REVIEW:
Approval of this item will allow the business to operate as a retail cannabis storefront in the City of Costa Mesa. The business is subject to Cannabis tax of seven percent (7%) based on gross tax receipts, as defined in the Costa Mesa Municipal Code, Title 9, Section 9-29.5(e). Revenue generated from Measure Q retail is part of General Fund Revenue and provides financi ng for two restricted Special Revenue Funds: The Arts and Culture Master Plan Fund (Fund 130) and the First Time Homebuyers Fund (Fund 140).
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report and approves it as to form.
PUBLIC NOTICE:
Pursuant to Pursuant to Title 13, Section 13-29(d), of the Costa Mesa Municipal Code, three types of public notification have been completed no less than 10 days prior to the date of the public hearing:
1. Mailed notice. A public notice was mailed to all property owners and occupants within a 500- foot radius of the project site on Wednesday, April 2, 2025. The required notice radius is measured from the external boundaries of the property.
2. On-site posting. A public notice was posted on each street frontage of the project site on Friday, April 4, 2025.
3. Newspaper publication. A public notice was published once in the Daily Pilot newspaper on Friday, April 4, 2025.
164
Item #: 25-228 Meeting Date: 4/15/2025
Two public comments regarding this application were received in advance of publishing the agenda, provided as Attachment 8. Any public comments received after the publishing of the agenda for the April 15, 2025 City Council meeting may be viewed at this link: CITY OF COSTA MESA - Calendar (legistar.com)
CITY COUNCIL GOALS AND PRIORITIES:
One of the goals approved by the City Council is to “achieve long-term fiscal stability”. Retail cannabis uses are subject to a unique local tax that does not apply to other retail businesses in Costa Mesa. Retail cannabis uses generate increased tax revenues due to a seven -percent local tax on gross receipts.
Therefore, the operation of the proposed retail cannabis storefront with delivery would assist in achieving this City Council goal.
CONCLUSION:
The proposed use is a retail cannabis storefront with delivery at an existing commercial property that is located on one of the City’s primary commercial corridors. Staff and the City’s cannabis consultant completed the Pre -application Determination, Business Plan and Security Plan evaluations, owner background checks, and thoroughly reviewed the CUP materials. After careful review, staff determined that the application was consistent with the required CUP findings and the applicable provisions of the Costa Mesa Municipal Code and recommended that the Planning Commission conditionally approve the application . On February 24, 2025, the Plan ning Commission reviewed the application, heard public testimony and approved the application subject to numerous conditions of approval and made the required CUP findings. Staff recommends that the City Council deny the requested appeal, uphold the Planning Commission’s decision and adopt a Resolution to approve PCUP-24-0011. Staff has attached a draft City Council Resolution for approval based on the Planning Commission’s approval on February 24, 2025.
165
Resolution No. 2025-xx Page 1 of 18
RESOLUTION NO. 2025-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, UPHOLDING THE PLANNING COMMISSION APPROVAL OF A
CONDITIONAL USE PERMIT FOR A STOREFRONT RETAIL CANNABIS BUSINESS WITH DELIVERY IN THE C1 ZONE AT 1912 HARBOR BO ULEVARD (“GREEN MART”)
THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY FINDS AND DECLARES AS FOLLOWS:
WHEREAS, in November 2020, the Costa Mesa voters approved Measure Q; which allows for storefront and non -storefront retail cannabis uses in commercial ly zoned properties meeting specific location requirements, and non -storefront retail cannabis uses in Industrial Park (MP) and Planned Development Industrial (PDI) zoned properties;
WHEREAS, on June 15, 2021 , and May 7, 2024 , the City Council adopted Ordinance Nos. 21 -08, 21-09, 24-03 and 24-04 to amend Titles 9 and 13 of the Costa Mesa Municipal Code (CMMC) for cannabis storefront and non-storefront uses; WHEREAS, Planning Application PCUP -24-0011 was filed by Keith Sheinberg representing RDK Holdings, LLC, and the property owner, Dave Ruffel, requesting approval of the following:
A Conditional Use Permit to operate a cannabis retail storefront retail and delivery business within a 2,400 -square-foot, one -story commercial building located at 1912 Harbor Boulevard. The business would sell pre -packaged cannabis and pre -packaged cannabis products directly to cus tomers onsite and through delivery, subject to conditions of approval and other City and State requirements;
WHEREAS, a duly noticed public hearin g regarding PCUP24-0011 was held by the Planning Commission on February 24, 2025 with all persons having the opportunity to speak for and against the proposal;
Whereas, after hearing public testimony the Planning Commission conditionally approved the application by a 3 to 2 vote.
WHEREAS, the project was appealed by VMA Harbor Place Holding Company on March 3, 2025;
ATTACHMENT 1
166
Resolution No. 2025-xx Page 2 of 18
WHEREAS, a duly noticed public hearing was held by the City Council on April 15, 2025 with all persons having the opportunity to speak for and against the proposal; WHEREAS, pursuant to the California Environmental Quality Act (CEQA), the project is exempt from the provisions of the California Environmental Quality Act (CEQA) per California Code of Regulations Section 1530 1 (Class 1), for new the permitting and/or minor alteration of Existing Facilities; WHEREAS, the CEQA categorical exemption for this project reflects the independent judgement of the City of Costa Mesa.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES as follows:
BE IT R ESOLVED that based on the evidence in the record and the findings contained in Exhibit A, the City Council hereby upholds the P lanning Commission’s February 24, 2025 decision and approves Conditional Use Permit (PCUP-24-0011) with respect to the property described above.
BE IT RESOLVED that if any section, division, sentence, clause, phrase or portion of this resolution, or the document in the record in support of this resolution, are for any reason held to be invalid or unconstit utional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions.
BE IT FURTHER RESOLVED that the Costa Mesa City Council does hereby fi nd and determine that adoption of this Resolu tion is expressly predicated upon the activity as described in the staff report and upon applicant’s compliance with each and all of the conditions in Exhibit B, and compliance with all applicable State and local laws. Any approval granted by this resolution shall be subject to review, modification, or revocation if there is a material change that occurs in the operation, or if the applicant fails to comply with any of the conditions of approval.
BE IT FURTHER RESOLVED that if any section, division, sentence, c lause, phrase or portion of this resolution, or the document in the record in support of this resolution, are for any reason held to be invalid or unconstitutional by a decision of any court of co mpetent jurisdiction, such decision shall not affect the val idity of the remaining provisions.
167
Resolution No. 2025-xx Page 3 of 18
PASSED AND ADOPTED this 15th day of April, 2025.
_____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing i s the original of Resolution N o. 2025-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 15th day of April 2025, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 15th day of April, 2025.
___________________________
Brenda Green, City Clerk
168
Resolution No. 2025-xx Page 4 of 18
EXHIBIT A
FINDINGS
A. The propose d project complies with C osta Mesa Mu nicipal Code Section 13 - 29(g)(2) Conditional Use Permit findings because:
Finding: “The proposed development or use is substantially compatible with developments in the same general area and would not be materially det rimental to other properties within the area”.
Facts in Support of Findings: The subject site is located within a commercial zone (C1, Local Bus iness District) where commercial development is specifically allowed to include retail uses. In addition, the property is located on one of the Cit y’s primary commercial corridors that is predominantly intended for commercial uses. Pursuant to the CMMC, cannabis retail storefronts are permitted uses in the C1 zone and are subject to extensive regulation as described in this report.
All retail sales would take place under the roof, no outdo or storage or sales are proposed nor would be allowed, and operatio ns would be conditioned to be compliant with applicable local and State laws, as well as to minimize potential impacts on neighboring properties. S taff does not anticipate that the proposed retail cannabis use would be materially detrimental to uses in the vicinity such as restaurants, retail stores, offices, medical offices, car dealerships, and residences.
Lastly, the proposed use would not be materially detrimental to adjacent uses because the project would include features to ensure compatibility such as following a photometric plan so security lighting is shielded from adjacent properties, having a security g uard onsite during hours of operation , and implementing odor control measures. As proposed and conditioned, the retail cannabis use would be compatible with other properties within the area, and in compliance with local and State requirements.
Finding: “Granting the minor conditional use permit will not be materially detrimental to the health, safety and general welfare of the public or otherwise injurious to property or improvements within the immediate neighborhood”.
Facts in Support of Findings: The proposed cannabis retail storefront use would follow safety measures detailed in a professionally -prepared security plan. The security plan was evaluated for compliance by the City’s cannabis consultant, HdL. Measures designed to maintain safety at the site include, but are not limited to, at least one security guard that would be onsite during the hours of operation and security devices shall be ins talled before operation. 169
Resolution No. 2025-xx Page 5 of 18
Examples of security devices include window and door alarms, motion - detectors, limited access areas, and a monitored video surveillance system covering all exterior entrances, exits, and all interior limited access spaces. In addition, the business employees, including part -time staff, must pass a live scan background check and obtain an i dentification badge from the City that indicates they have passed certain employee requirements. The conditions of approval include, but are not limited to, the aforementioned security measures to ensure that the use would not be materially detrimental to the health, safety and general welfar e of the public or be otherwise injurious to property or improvements within the immediate neighborhood.
Finding: “Granting the minor conditional use permit will not allow a use, densi ty or intensity which is not in a ccordance with the general plan designation and any applicable specific plan for the property”.
Facts in Support of Findings: The property has a General Plan land use designation of “Commercial Residential”. The intent of this land use designation is to allow a mix of commercial and residential uses. As stated in the General Plan Land Use Element, the City’s commercial designations “accommodate a full range of commercial activity present and desired in Costa Mesa.” The proposed storefront is consistent wit h General Plan policies related to providing a mixture of commercial goods, services, and employment opportunities; expanding the City’s tax base; and promoting the incubation of specialized businesses. The City’s General Plan sets forth long-term policies that guide future development, where as the Zoning Ordinance implements general plan policies through detailed development regulations, such as specific use types and building standards. Therefore, in determining General Plan compliance for the proposed ca nnabis retail storefront use, a comparison of the proposed use with the use, density and intensity allowed by the applicable zo ning district is re quired. In this case, the applicable zoning district is “Local Business District” (C1). A variety of commercial uses are allowed in the C1 zone, in cluding a retail cannabis storefront, subject to a CUP. No additional square footage is proposed; therefore, the proposed use would not increase the floor area ratio (building intensity) or increase the number of residential units onsite (density).
B. The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) purs uant to C alifornia Code of Regulations Section 15301 (Class 1, Existing Facilities) , for the permitting and/or minor alteration of Existing Facilit ies, involving negligible or no expansion of the existing or prior use. This project site contains an existing commercial building that has been used historically for commercial activities. The application does not prop ose an increase in commercial floor area or otherwise expand the prior commercial use. 170
Resolution No. 2025-xx Page 6 of 18
The project is consistent with the applicable General Plan land use designation and policies as well as with the applicable zoning designation and regulations.
Furthermore, none of the exceptions that bar t he application of a categorical exemption pursuant to CEQA Guidelines Section 15300.2 applies. Specifically, the project would not result in a cumulative impact; would not have a significant effect on the environment du e to unusual circumstances; would not result in damage to scenic resources; is not located on a hazardous site or location; and would not impact any historic resources.
C. The project is subject to a traffic impact fee, pursuant to Chapter XII, Article 3 Transportation System Management, of Title 13 of the Costa Mesa Municipal Code. 171
Resolution No. 2025-xx Page 7 of 18
EXHIBIT B
CONDITIONS OF APPROVAL (PCUP-24-0011)
General
Plng. 1. The use of this property as a cannabis storefront business shall comply with the approved plans and terms described in the resolution, these conditions of approval, and applicable sections of the Costa Mesa Municipal Code (CMMC). The Planning Commission may modify or revoke any planning application based on findings related to public nuisance and/or noncompliance with conditions of approval [Tit le 13, Section 13 - 29(o)].
2. Approval of the planning/zoning application is valid for two years from the effective date of this approval and will expire at the end of that period unless the applicant establishes the use by one of the following actions: 1) a building permit has been issued and construction has commenced, and has continued to maintain a valid bui lding permit by making satisfactory progress as determined by the Building Official, 2) a certificate of occupancy has been issued, or 3) the use i s established and a business license has been issued. A time extension can be requested no less than 30 days or more than sixty (60) days before t he expiration date of the permit and submitted with the appropriate fee f or review to the Planning Division. The Director of Development Services may extend the time for an approved permit or approval to be exercised up to 180 days subject to specific findings listed in Title 13, Section 13 -29 (k) (6). Only one request for an e xtension of 180 days may be approved by the Director. Any subsequent extension requests shall be considered by the original approval authority.
3. No person may engage in any cannabis business or in any cannabis activity within the City including delivery or sale of cannabis or a cannabis product unless the person:
a. Has a valid Cannabis Business Permit from the City;
b. Has paid all Cannabis Business Pe rmit and all application fees and deposits established by resolution of the City Council, including annual Community Improvement Division inspection deposits;
c. Has obtained all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such cannabis business intends to operate;
d. Has obtained a City business license pursuant to Chapter I of the Municipal Code;
e. Is in compliance with all requirements of the Com munity Improvement Division regarding the property;
f. Has obtained any and all licenses required by State law an d/or regulations; and
172
Resolution No. 2025-xx Page 8 of 18
g. Has satisfied all CUP conditions of approval.
4. Any change in the operational characteristics of the use shall be subject to Planning Division review and may require an amendment to the Conditional Use Permit, subject to either Zoning Administrator or Planning Commission approval, depending on the nature of the proposed change.
5. No cultivation of cannabis is allowed anywhere on the premises.
6. The uses authorized by this Conditional Use Permit must be conducted in accordance with all applicable State and local laws, including, but not limited to compliance with the most current versions of the provisions of the California Code of Regulations that regulate the uses permitted hereby. Any violation thereof shall be a violation of th e conditions of this permit and may be cause for revocation of this permit.
7. Except for operations allowed by this Conditional Use Permit and un der an active Cannabis Business Permit and State Type 10 license, no permit holder or any of its employees sha ll sell, distribute, furnish, and/or otherwise provide any cannabis or cannabis product to any person, firm, corporation, group or any other entity, unless that person or entity is a lawful, bona fide customer, or it possesses all currently valid permits and/or licenses required by both the State of California and applicable local go vernmental entity to lawfully receive such cannabis and to engage in a “cannabis activity” as defined by Costa Mesa Municipal Code sec. 9-485. The permit holder shall verify tha t the recipient, regardless of where it is located, of any cannabis or cannabis product sold, distributed, furnished, and/or otherwise provided by or on behalf of the permit holder, possesses all required permits and/or licenses therefor.
8. The applicant, the property owner and the operator ( collectively referred to as “indemnitors”) shall each jointly and severally defend , with the attorneys of Ci ty’s choosing , indemnify, and hold harmless the City, its elected and appointed officials, agents, officers an d employees from any claim, legal act ion, or proceeding (collectively referred to as "proceeding") brought against the City, its elected and appointed officials, agents, officers or employees arising out of City's approval of the project, including but not limited to any proceeding under the California Environmental Quality Act. The indemnification shall include, but not be limited to, damages, fees and/or costs awarded against the City, if any, and cost of suit, attorney's fees, and other costs, liabilitie s and expenses incurred in connection with such proceeding whether incurred by the applicant, the City and/or the parties initiating or bringing such proceeding. This indemnity provision shall include the indemnitors’ joint and several obliga tion to indemn ify the City for all the City's costs, fees, and damages that the City incurs in enforcing the indemnification provisions set forth in this section.
9. If any section, division, sentence, clause, phrase or portion of this approval is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions.
173
Resolution No. 2025-xx Page 9 of 18
10. The use shall operate in accordance with the approved Security Plan. Any changes to the Securi ty Plan must be submitted to the Planning Division with a written explanation of the changes. If the Director determines that changes are substantial, a modification to the Cannabis Business Permit and/or amendment to the CUP may be required.
11. A parking and security management plan, including techniques described in Operational Condition of Approval No. 7, must be approved by the Director of Economic and Development Services or designee prior to any grand opening or other high-volume event on the subject property.
Bldg. 12. Development shall comply with the requirements of the following adopted codes: 2022 California Residential Code, 2022 California Building Code, 2022 California Electrical Code, 2022 California Mechanical Code, 2022 California Plumbing Co de, 2022 California Green Building St andards Code and 2022 California Energy Code (or the applicable adopted, California Residential Code, California Building Code, California Electrical Code, California Mechanical Code, California Plumbing Code, Californ ia Green Building Standards and California Energy Code at the time of plan submittal or permit issuance) and California Code of Regulations also known as the California Building Standards Code, as amended by the City of Costa Mesa. Requirements for access ibility to sites, facilities, buildings and elements by individuals with disability shall comply with chapter 11B of the 2022 California Building Code.
CBP 13. The operator shall maintain a valid Cannabis Business Permit and a valid Business License at all t imes. The Cannabis Business Permit application number associated with this address is MQ -22-0003. Upon issuance, the Cannabis Business Permit will be valid for a two-year period and must be renewed with the City prior to its expiration date, including the payment of permit renewal fees. No mo re than one Cannabis Business Permit may be issued to this property.
14. The use shall operate in accordance with the approved Business Plan. Any changes to the Business Plan must be submitted to the Planning Division with a written explanation of the changes. If the Director determines that changes are substantial, a modification to the Cannabis Business Permit and/or amendment to the CUP may be required.
15. A Cannabis Business Permit may be revoked upon a hearing by the Director of Economic and Development Services or designee pursuant to Section 9 -120 of the CMMC for failing to comply with the terms of the permit, the applicable provisions of the CMMC, State law or regulation and/or any condition of any other permit iss ued pursuant to this code.
Revocation of the Cannabis Business Permit shall trigger the City’s proceedings to revoke the Conditional Use Permit a nd its amendments.
The Conditional Use Permit granted herein shall not be construed to allow any subsequent owner/operator to continue operating under PCUP- 24-0011 until a valid new Cannabis Business Permit is received from the City of Costa Mesa.
16. A change in ownership affecting an interest of 51 or more percent, or an 174
Resolution No. 2025-xx Page 10 of 18
incremental change in ownership that will result in a change of 51 or more percent over a three -year period, shall require submittal and approval of a new Cannabis Business Permit. A chan ge in ownership that affects an interest of less than 51 percent shall require approval of a minor modification to the Cannabis Business Permit.
State 17. The business must obtain any and all licenses required by State law and/or regulation prior to engaging in any cannabis activity at the property.
18. The applicant shall obtain State License Type 10 prior to operat ing. The uses authorized by this Conditional Use Permit must be conducted in accordance with all applicable State and local laws, including, but n ot limited to compliance with the most current versions of the provisions of the California Code of Regulation s that regulate the uses permitted hereby. Any violation thereof shall be a violation of the conditions of this permit and may be cause for revocation of this permit.
19. Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the City, until the State of California, or its re spective department or division, reinstates or reissues the State license. Should the State of California, or any of its departments or divisions, revoke or termi nate the license of a cannabis business, such revocation or termination shall also revoke or terminate the ability of a cannabis business to operate within the City. This Conditional Use Permit will expire and be of no further force and effect if any State issued license remains suspended for a period exceeding six (6) months.
Documentation of th ree violations during routine inspections or investigations of complaints shall result in the Community I mprovement Division scheduling a hearing b efore the Direct or of Development Services to consider revocation of the Cannabis Business Permit.
20. Third parties are prohibited from providing delivery services for non - storefront retail.
21. Persons under the age of twenty-one (21) years shall not be allowed on the premises of this business, except as otherwise specifically provided for by state law and CMMC Section 9-495(h)(6). It shall be unlawful and a violation of this CUP for the owner/operator to employ any person who is not at least twenty-one (21) years of age.
PD 22. Every manager, supervisor, employee or volunteer of the cannabis business must submit fingerprints and other information specified on the Cannabis Business Permit for a background check by the Cost a Mesa Police Department to verify that person’s criminal history. No employee or volunteer may commence paid or unpaid work for the business unti l the background checks have been approved. No cannabis business or owner thereof may employ any person wh o ha s been convicted of a felony within t he past 7 years, unless that felony has been dismissed, withdrawn, expunged or set aside pursuant to Penal Code sections 1203.4, 1000 or 1385, or who is currently on probation or parole for the sale, distribution, possession or manufacture of a controlled substance. 175
Resolution No. 2025-xx Page 11 of 18
CID 23. Should any employee, volunteer or other person who possesses an identification badge be term inated or cease their employment with the business, the applicant shall return such identification badge t o the City of Costa Mesa Community Improv ement Division w ithin 24 hours, not including weekends and holidays.
24. The property owner and applicant shall use “Crime Prevention Through Environmental Design” techniques to reduce opportunities for crime, loitering and encampments on the property as deemed appropriate by the Community Improvement Manager and Director of Economic and Development Services.
Finance 25. This business operator shall pay all sales, use, business and other applicable taxes, and all licen se, registration, and other fees and perm its required under State and local law. This business operator shall cooperate with the City with respect to any reasonable request to audit the cannabis business’ books and records for the purpose of verifying compliance with the CMMC and this CUP, including but not limited to a verification of the amount of taxes required to be paid during any period.
26. The following records and recordkeeping shall be maintained/conducted:
a. The owner/operator of this cannabis busi ness shall maintain accurate books and re cords, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis, or at any time upon reasonable request of the City, the owner/operator shall fil e a sworn statement detailing the number of sales by the cannabis business during the previous twelve month period (or shorter period based upon t he timing of the request), provided on a per -month basis. The sta tement shall also include gross sales for each month, and all applicable taxes pa id or due to be paid.
b. The owner/operator shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the can nabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the cann abis business. The register required by this condition shall be provided to the City Manager upon a reasonable request. c. The owner/operator shall m aintain an inven tory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the retail sale process. Subject to an y restrictions under the Health Insurance Portability and Accountability Act (HIPPA), the owner/operator shall allow City officials to have acces s to the business’s books, records, accounts, together with any other data or documents relevant to its pe rmitted cannabi s activities, for the purpose of conductin g an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than twenty -four (24) hours after receipt of the 176
Resolution No. 2025-xx Page 12 of 18
City’s request, unless otherwise stipulated by the City. d. The owner/operator shall have in place a point-of-sale tracking system to track and report on all aspects of the cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, and gross sale s (b y weight and by sale). The owner/ope rator shall ensure that such information is compatible with the City’s record - keeping systems. The system must have the capability to produce historical transactional data for review by the City Manager or designees.
Insp. 27. The City Manager or designees may enter this business at any time during the hours of operation without notice, and inspect the location of this business as well as any recordings and records required to be maintained pursuant to Title 9, Chapter VI or under applicable provisions of Sta te law. If the a ny areas are deemed by the City Manager or designee to be not accessible during an inspection, not providing such access is cause for the City to begin a cannabis business permit (CBP) and/or conditional use permit (CUP) and/or business license revocation process as prescribed by the applicable Municipal Code revocation procedures.
28. Inspections of this cannabis business by the City will be conducted, at a minimum, on a quarterly basis. The appli cant will pay for the inspections according to the adopted Fee Schedule.
29. Quarterly Fire & Life Safety Inspections will be conducted by the Community Risk Reduction Division to verify compliance with the approved operation. The applicant will pay for the ins pection according to the Additional Required Inspections as adopted in the Fee Schedule.
30. Annual Fire & Life Safety Inspections will be conducte d by the Fire Station Crew for emergency response pre -planning and site access familiarization. The applic ant will pay for the inspection according to the adopted Fee Schedule.
31. Pursuant to Title 9, Chapter VI, it is unlawful for any person having responsibility for the operation of a cannabis business, to impede, obstruct, interfere with, or otherwise not to al low, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a cannabis business und er this chapter or under State or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordin gs or other documents required to be maintained by a cannabis business under this chapter or under State or local law.
32. Prior to the installation of any exterior mural at the subject property, the applicant shall pr ovide draft mural plans to the City. Once directed by staff to proceed, the applicant would apply for a Mural Permit through the Totally Electronic Self Service Application (TESSA), to be considered by the Arts Commission. If the application is approve d by the Arts Commission, prior to installation, the Planning Commission shall have the 177
Resolution No. 2025-xx Page 13 of 18
opportunity to consider if the mural is consistent with local and State cannabis provisions, and the project conditions of approval. The Planning Commission review shall be agendized for a regular meeting of the Planning Commission but shall not require a noticed public hearing.
Prior to Issuance of Building Permits
1. Plans shall be prepared under the supervision of a registered California Architect or Engineer. Plan shall be stamped and signed by the registered California Architect or Engineer.
2. The conditions of approval and ordinance or code provisions of PCUP- 24-0011 shall be blueprinted on the face of the site plan as part of the plan check submittal package.
3. Prior to the Building Division issuing a demolition permit, the applicant shall contact the South Coast Air Quality Management District (AQMD) located at:
21865 Copley Dr.
Diamond Bar, CA 91765-4178
Tel: 909- 396-2000
Or visit its website:
http://www.costamesaca.gov/modules/showdocument.aspx?documentid =23381. The Building Division will not issue a demolition permit until an Identification Number is provided by AQMD.
4. Odor control devices and techniques shall be incorporated to ensure that odors from cannabis are not detected outside the property, anywhere on adjacent property or public right-of-way. Building and mechanical permits must be obtained from the Building Division prior to work commencing on any part of the odor cont rol system. Air in the area s where cannabis is stored shall be classified as Class 3 air (air posed a significant sensory - irritation intensity, or offensive odor). Class 3 air is permitted to be recirculated within the space of origin but shall not be recirculated or transferred to other spaces. [CMMC 2021 -09(g)8, CMC 403.9, 403.9.3, 311.3, ASHRAE 62.1:5.16, 62.1:5.16.1, 62.1:5.16.3.3].
PC 5. Plan check submittal shall include, but not be limited to:
Landscaping plans including at least one 24-inch box tree (non- palm) other living plants such as living ground cover, with an emphasis on drought-tolerant plants.
A permanent bike rack that is publicly accessible and located in a bike parking area designed to prohibit automobiles from utilizing the space.
A drive approach that is consistent with the City’s Public Works Standard 514.
Removing the unpermi tted enclosure and secure the space with fencing (wrought iron or a similar material for visibility and 178
Resolution No. 2025-xx Page 14 of 18
security).
Odor control device specifications and locations.
Security camera installation locations.
A lighting plan showing all proposed exterior lighting fixtures and specifications, including security lighting.
A photometric study. Lighting levels on the pro perty including the parking lot shall be adequate for safety and security purposes (generally, at least 1.0 foot candle), lighting design and layo ut shall minimize light spill at the property line and glare shields may be required to prevent light spill.
6. No signage shall be installed until the owner/operator or its designated contractor has obtained permits required from the City. Business identification signage shall be limited to that needed for identification only. Business identification signage shal l not include any references to cannabis, whether in words or symbols. All signs shall comply with the CMMC.
7. Each entrance to a cannabis ret ail business shall be visibly posted with one clear and legible notice up to twelve (12) inches by eightee n (1 8) inches in size, indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the cannabis business is prohibited. The word “cannabis” is allowed to be used up to two times on each of these specific noti ces. Letter height in the notice shall be limited to up to two (2) inches in size. All notice lettering shall be the same font and color.
8. The plans and business operator shall comply with the requirements of the applicable California Fire Code, incl uding any referenced standards as amended by the City of Costa Mesa.
9. Obtain a permit from the City of Costa Mesa, Engineering Division, at the time of development and then reconstruct P.C.C. driveway approach per City of Costa Mesa Standards as shown on the Offsite Plan to comply with A.D.A. Location and dimensions are subject to the approval of the Transportation Services Manager.
10. The applicant s hall submit a Traffic Impact Fee to the Transportation Division prior to issuance of building permits. The fee is required in an amount determined by the Transport ation Division pursuant to the prevailing schedule of charges adopted by the City Council. The fee is calculated with consideration of standardized trip generation ratios for proposed uses and includes c redits for existing uses. The estimated Traffic Impact Fee for this application is $28,670.00. The fee will be calculated at the time of issuance of building permits and based upon the prevailing schedule of charges in effect at that time.
11. Construction documents shall include a temporary fencing and temporary security lighting exhibit to ensure the site is secured during construction 179
Resolution No. 2025-xx Page 15 of 18
and to discourage crime, vandalism, and illegal encampments.
Prior to Issuance of a Certificate of Use/Occupancy
1. The operator, contractors, and subcontractors must have valid business licenses to do business in the City of Costa Mesa. Final occupancy and utility releases will not be granted until all such licenses have been obtained.
Prior to Issuance of Cannabis Business Permit
1. The applicant shall c ontact the Plann ing Division for a facility inspection and provide a matrix of conditions of approval explaining how each was met prior to issuance of a Cannabis Business Permit.
2. The applicant shall pay the Planning Commission public notice fee ($1 per notice post card) and the newspaper ad publishing cost.
3. The final Security Plan shall be consistent with t he approved building plans.
4. Each entrance to the business shall be visibly posted with a clear and legible notice stating the following:
a. That sm oking, ingesting , or otherwise consuming cannabis on the premises or in the areas adjacent to the cannabis business is prohibited;
b. That no person under the age of twenty -one (21) years of age is permitted to enter upon the premises of the cannabis business unless the business holds a retail medical cannabis license (M -license) issued by the state;
c. That loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises is prohibited; and d. The premise is a licensed cannab is operation approved by the City of Costa Mesa. The City may also issue a window/door sticker, which shall be visibly posted.
5. The owner/operator shall obtain and maintain at all times during the term of the permit c omprehensive general liability insurance and comprehensive automotive liability insurance protecting the permittee in an amount of not less than t wo million dollars ($2,000,000.00) per occurrence, combined single limit, including bodily injury and prop erty damage and not less than two million dollars ($2,000,000.00) aggregate for each personal injury liability, products -completed operations and each accident, issued by an insurance provider admitted and authorized to do business in California and shall be r ated at least A -:viii in A.M. Best & Company's Insurance Guide. Such policies of insurance shall be endorsed to name the City of Costa Mesa as an additional insured. Proof of said insurance must be provided to the Planning Division before the business commences operations. Any changes to th e insurance poli cy 180
Resolution No. 2025-xx Page 16 of 18
must be submitted to the Planning Division within 10 days of the date the change is effective.
6. The applicant shall submit an executed Retail Cannabis Business Permit Defense and Indemnity Agreement on a form to be provided by the City.
7. The applicant shall post signs within the parking lot directing the use of consideration such as no loud voices, loud music, revving car engines, etc. The language of the parking lot signs shall be reviewed and approved by the Planning Division prior to installation.
Operational Conditions
1. No product deliveries to the facility shall occur after 10:00 PM and before 7:00 AM.
2. Onsite sales hours of operations are limited to 7:00 AM to 10:00 PM Monday through Sunday.
3. The applicant shall submit an updated delivery vehicle list each quarter with the quarterly update to the employee roster which is require d pursuant to the CBP. The number of delivery vehicles parked onsite shall not exceed the number of avail able onsite surplus parking spaces.
Delivery vehicles shall not be parked on City streets.
4. At least one security guard will be onsite during business operation, unless directed by the Chief of Police or designee to maintain a security guard twenty-four (24) hours per day;
5. The operator shall maintain free of litter all areas of the property under which applicant has control.
6. The use shall be con ducted, at all times, in a manner that will allow the quiet and safe enjoyment of the surrounding neighbor hood. The operator shall institute appropriate security and operational measures as necessary to comply with this requirement.
7. If parking shortages or other parking -related problems develop based on the operations approved under this application , the busine ss owner or operator will be required to institute appropriate operational measures necessary to minimize or eliminate the problem in a manner dee med appropriate by the Director of Economic and Development Services or designee. Temporary or permanent parking management strategies include, but are not limite d to, reducing operating hours of the business, hiring an additional employee trained in traffic control to monitor parking 181
Resolution No. 2025-xx Page 17 of 18
lot use and assist with customer parking lot circulation, and offering discounts for online and phone orders.
8. While working, employees shall not park on residential streets unless doing so temporarily to make a cannabis delivery.
9. All employees must wear an identification badge while on the premises of the business, in a fo rmat prescribed by the City Manager or de signee.
When on the premises, badges must be clearly visible and worn on outermost clothing and above the waist in a visible location.
10. The operator shall ensure that all vehicles are properly maintained, all delivery drivers have a good driving record, and each driver conducts a visual inspection of the vehicle at the beginning of each shift.
11. The operator shall ensure that deliveries are grouped to minimize total vehicle trips.
12. During each delivery stop, the delivery vehicle shall be parked in a safe manner (i.e., not impeding traffic circulation), the engine shall be turned off and the vehicle shall be locked.
13. Delivery/vendor vehicle loading and unloading shall only take place within direct unobstructed view of surveillance cameras, located in close proximity to the limited access entry door, as shown on an exhibit approved by the Director of Economic and Development Services or designee. No loading and unloading of cannabis products into or from the vehicles shall take place behind the buildi ng, in the alley , or outside of camera view. The security guard shall monitor all on -site loading and unloading of vehicle s. Video surveillance cameras shall be installed on the exterior of the building with direct view s of the vendor entry door and the entire parking lot. Any modifications or additional vehicle loading and unloading areas shall be submitted to t he Director of Economic and Development Services or designee for approval.
14. Delivery/vendor vehicle stan ding, loading and unloading shall be conducted so as not to interfere with normal use of streets, sidewalks, driveways, and alleys.
15. The sale, dispensing, or consumption of alcoholic beverages on or about the premises is prohibited.
16. No outdoor storage or display of cannabis or cannabis products is permitted at any time.
17. Cannabis shall not be consumed on the property at any time, in any form.
18. The owner/operator shall prohibit loitering on and within fifty (50) feet of the property.
19. No cannabis or c annabis products, or graphics depicti ng cannabis or cannabis products, shall be visible from the exterior of the property , or on any of the vehicles owned or used as part of the cannabis business.
20. The owner or operator shall maintain air quality/odor co ntrol devices by 182
Resolution No. 2025-xx Page 18 of 18
replacing filters on a regular basis, as specified in the manufacturer specifications.
21. If cannabis odor is detected outside th e building, the business owner or operator shall institute corrective measures necessary to minimize or eliminate the problem in a manner deemed ap propriate by the Director of Economic and Development Services.
22. Cannabis liquid or solid waste must be made unusable and unrecognizable prior to leaving a secured storage area and shall be disposed of at facility ap proved to receive such waste. No cannabis products shall be disposed in the exterior trash enclosure. If any damaged or expired cannabis products must be disposed, the owner or operator shall return the damaged or expired cannabis products to the origi nal licensed distributor or vendor and fo llow all applica ble State and City regulations.
23. Each transaction involving the exchange of cannabis goods between the business and consumer shall include the following information: (1) Date and time of transaction; (2) Name and employee number/identification of the employee who processed the sale; (3) List of all cannabis goods purchased including quantity; and (4) Total transaction amount paid.
24. All cannabis products shall be secured in a locked container durin g transportation between the facility and delivery and vendor vehicles. Prior to a vendor’s arrival, vendors are required to give notice to facility personnel.
Upon arrival, authorized facility personnel shall escort the vendor to the facility.
25. A staff person shall be required to periodically monitor the exterior including the parking lot, especially during the evening, to ensure customers and vendors are using consideration when entering or leaving the business.
26. Employees, customers, vendors, etc. a re prohibited from parking, loading vehicles, or unloading vehicles in the alley.
183
184
185
186
187
188
189
190
191
192
193
LAW OFFICES OF CRAIG S. WASSERMAN
12362 BEACH BLVD., SUITE 15
STANTON, CA 90680
(714) 799-0543
(714) 799-5504 FAX
[email protected]
March 18, 2025
Response to Appeal of Conditional Use Permit (PCUP-24-0011) – Green Mart City of Costa Mesa
Attn: Honorable Mayor John Stephens & City Council Members 77 Fair Drive
Costa Mesa, CA 92626
Subject: Response to Appeal of Conditional Use Permit (PCUP-24-0011) – Green Mart Dear Honorable Mayor Stephens and Members of the City Council, I am writing to respectfully respond to the appeal filed against the February 24, 2025, Planning Commission approval of Conditional Use Permit (PCUP-24-0011) for Green Mart at 1912 Harbor Boulevard.
As you are aware, the City of Costa Mesa has followed all proper procedures in reviewing and approving this CUP . The Planning Commission conducted a thorough and transparent review process, holding the required public hearing where community members, including the appellant, had the opportunity to raise concerns. After carefully considering the city staff report, the Planning Commission determined that the staff’s recommendation for approval met all applicable zoning and operational requirements.
Furthermore, the applicant has fully complied with all Planning Department requirements throughout this process, addressing all necessary conditions and working within the framework of the City's regulations. The application was properly vetted, and the CUP was granted in accordance with the established municipal code and land use policies.
The appeal does not introduce any new substantive facts that were not already discussed and carefully evaluated by the Planning Staff and voted on by the Planning Commission. Concerns such as parking, circulation, and neighborhood compatibility were extensively reviewed, and the conditions of approval ensure that the project will operate responsibly and in harmony with surrounding businesses.
ATTACHMENT 3
194
Additionally, the false and misleading character attacks included in the appeal are completely r
idiculous
and
have
already
been
addressed
by
the
Planning
Commission.
These
personal
attacks
do
not
belong
in
a
legitimate
land
use
appeal
and
should
not
be
considered
in
the
evaluation
of
this
CUP.
The
applicant
is
a
licensed
member
of
the
CA
bar
and
has
successfully
passed
the
required
Live
Scan
by
the
California
Department
of
Justice
and
Federal
Bureau
of
Investigation.
The
focus
should
remain
on
the
merits
of
the
application
and
the
thorough
review
process
already
conducted.
We appreciate the City’s commitment to a fair and consistent permitting process, and we respectfully
urge
the
Council
to
uphold
the
Planning
Commission’s
decision
based
on
the
comprehensive
record
already
established.
A
consistent
and
predictable
application
of
land
use
regulations
benefits
the
business
community
and
ensures
confidence
in
the
City's
decision-making
process.
Thank you for your time and consideration. Please do not hesitate to reach out if additional information
is
needed.
Respectfully submitted,
Craig S. Wasserman, Esq.
cc: Keith M. Scheinberg, Esq.
195
ATTACHMENT 4
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
-1-
PLANNING COMMISSION
AGENDA REPORT
MEETING DATE: February 24, 2025 ITEM NUMBER: PH-3 SUBJECT: CONDITIONAL USE PERMIT PCUP-24-0011 FOR A RETAIL CANNABIS STOREFRONT BUSINESS WITH DELIVERY (“GREEN
MART”) LOCATED AT 1912 HARBOR BOULEVARD
FROM: ECONOMIC AND DEVELOPMENT SERVICES
DEPARTMENT/PLANNING DIVISION
PRESENTATION BY: MICHELLE HALLIGAN, SENIOR PLANNER
FOR FURTHER
INFORMATION
CONTACT:
MICHELLE HALLIGAN
714-754-5608
[email protected]
RECOMMENDATION:
Staff recommends the Planning Commission:
1. Find that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1) Existing Facilities; and
2. Approve Conditional Use Permit PCUP-24-0011 based on findings of fact and subject to the conditions of approval as contained in the Resolution.
APPLICANT OR AUTHORIZED AGENT:
The applicant is Keith Scheinberg on behalf of RDK Group Holdings, LLC and the property owner, Dave Ruffel.
ATTACHMENT 5
215
-2-
PLANNING APPLICATION SUMMARY
Location: 1912 Harbor Boulevard Application Number: PCUP-24-0011 Request: PCUP-24-0010 is for a Conditional Use Permit for the establishment of a cannabis retail storefront with delivery.
SUBJECT PROPERTY: SURROUNDING PROPERTY:
Zone: C1 (Local Business District) North: C1 (Local Business District) General Plan: Commercial Residential South: C1 (Local Business District) Lot Dimensions: 50’ x 130’ East: PDC (Planned Development Commercial)
C2 (General Commercial)
Lot Area: 6,500 SF West: C2 (General Commercial)
Existing
Development:
The property is developed with a 2,400-square-foot single-story commercial building.
DEVELOPMENT STANDARDS COMPARISON
Development Standard Required/Allowed
C1 Zone
Provided/Proposed
Building Height 2 stories/30’ 1 story/12’-8”
Setbacks:
Front 20’ 60’-5”
Side 15’/0’ 6’/0’ 1
Rear 0’ 4’-9”
Landscape Setback – front 20’ 0 1
Parking 75 57 1,2
Floor area ratio (FAR) 0.20 0.37 1
1: Landscape setback, one side setback, parking, and FAR are legal nonconforming 2: The subject site shares a surface parking lot with five adjacent properties. The proposed parking count includes a bike rack credit of one space. Under AB 2097, the project is located within a half -mile of a major transit stop and is therefore exempt from the City’s parking requirements.
CEQA Status Exempt per CEQA Guidelines Section 15301 (Class 1, Existing Facilities) Final Action Planning Commission
BACKGROUND
The subject property is an approximate 6,500-square-foot site located at 1912 Harbor Boulevard. The midblock site has street frontage on Harbor Boulevard and is located between 19th Street and Bernard Street. A 20-foot-wide alley with access from Harbor Boulevard and West 19th Street also provides access to the rear of the subject property (including access to several parking spaces in a shared parking lot ). The site is zoned C1 (Local Business District) and is surrounded by C1 properties to the north and south.
There is a property zoned PDC (Planned Development Commercial) and a property zoned C2 (General Commercial) located to the east and Properties located to the west across Harbor Boulevard are zoned C2 (General Commercial). The site has a General Plan Land Use Designation of Commercial Residential.
216
-3-
Existing development on the subject property consists of a 2,400 -square-foot, one - story commercial building (see the below Image 1) with surface parking located in the front and rear of the building. Vehicular access to the site is provided by three common access driveways from Harbor Boulevard. The proposed cannabis retail establishment with delivery (“Green Mart”) would occupy the entire building. Although currently vacant, the previous tenant was a barbeque equipment store. The subject property is located along one of the Cit y’s primary commercial corridors which includes a variety of uses. Neighboring uses include, but are not limited to, retail stores, offices, medical offices, car dealerships, residences, and a cannabis storefront.
Image 1 – Existing Condition, 1912 Harbor Boulevard
Non-Conforming Development
The existing development is legal nonconforming in terms of a side-setback, landscaping, parking, and floor area ratio, and therefore is subject to the nonconforming provisions of the Costa Mesa Municipal Code Section 13-204. Pursuant to this code section, a conforming use may be located on a nonconforming property as long as the new site modifications do not result in greater site nonconformities, and proposed improvements bring the site into greater conformance with Code requirements.
Improvements would be made to bring this structure into compliance with current building and safety codes; however, and as specifically allowed by the CMMC, the existing site nonconformities can remain pursuant to the City’s legal nonconforming provisions. The applicant is proposing to bring the property into closer conformance by removing an unpermitted 145-square -feet enclosed area, adding a bike rack for a credit of one parking space, and adding 274-square -feet of landscaping. Proposed improvements are further described later in this report. 217
-4-
City of Costa Mesa Medical Marijuana Measure (Measure X) and Costa Mesa Retail Cannabis Tax and Regulation Measure (Measure Q)
In November 2016, Costa Mesa voters approved Measure X, allowing medical cannabis manufacturing, packaging, distribution, research and development laboratories, and testing laboratories in “Industrial Park” (MP) and “Planned Development Industrial” (PDI) zoned properties north of South Coast Drive and west of Harbor Boulevard (“The Green Zone,” excluding the South Coast Collection property located at 3303 Hyland Avenue).
Measure X provisions are included in Titles 9 and 13 of the CMMC.
In 2018, non -medical adult use cannabis became legal in California under the State’s Medicinal and Adult-Use Cannabis Regulation and Safety Act (Proposition 64). On April 3, 2018, the City Council adopted Ordinance No. 18-04 to allow non-medical cannabis facilities in the same manner and within the same geographic area as were previously allowed pursuant to Measure X.
On November 3, 2020, Costa Mesa voters approved Measure Q, the Costa Mesa Retail Cannabis Tax and Regulation Measure. This measure allowed the City to adopt regulations permitting cannabis storefront retail (dispensaries) and non-storefront retail (delivery) within the City subject to numerous operational requirements. On June 15, 2021, the City Council adopted Ordinances No. 21-08 and No. 21-09 to amend Titles 9 and 13 of the CMMC to establish regulations for legal cannabis storefront and non - storefront uses. A “non-storefront” retailer sells packaged cannabis goods to customers through direct delivery. On May 7, 2024, the City Council adopted Ordinances No. 24- 03 and No. 24-04 to amend the City’s retail cannabis provisions in Titles 9 and 13.
Cannabis Business Permit (CBP) Application Process
The process to establish a retail cannabis business is subject to an extensive submittal and application review procedure. Pursuant to the CMMC, retail cannabis applicants must obtain the following City approvals and obtain State approval before conducting business in Costa Mesa:
• Pre-Application Determination;
• CBP Notice to Proceed;
• Conditional Use Permit (CUP);
• Building Permit(s);
• Final City Inspections;
• CBP Issuance; and
• City Business License.
The “Pre-Application Determination” includes staff review of a detailed applicant letter that describes the proposed business, an existing site plan, statement attesting that there is/has been no unpermitted cannabis activity at the site within one year, a nd a 218
-5-
detailed map demonstrating the proposed storefront’s distance from regulated sensitive uses. Staff also conducts a site visit at this time. Planning staff has completed the aforementioned pre-application review, visited the site, and issued a letter indicating that the application complies with the City’s required separation distances from sensitive uses and may proceed to submittal of a CBP.
Following completion of the pre-application review, the applicant submitted a CBP application for the initial phase of the CBP review. Staff’s initial CBP review includes:
• A background check of the business owner(s)/operator(s); • An evaluation of the proposed business plan (including a capitalization analysis); and
• An evaluation of the proposed security plan by the City’s cannabis security consultant, HdL Companies (HdL).
The applicant successfully passed these evaluations and staff issued a “CBP Notice to Proceed,” which allows the applicant to submit a CUP application.
The CUP application and required supportive materials were submitted by the applicant and reviewed for conformance with City standards and regulations by the Planning Division, Building Division, Public Works Department (including Transportation and Engineering Divisions), Fire Department, and Police Department.
If the Planning Commission approves the CUP, the applicant may then begin the remaining steps of the CBP process, which include:
• Obtaining building permits;
• Completing tenant improvements; and
• Demonstrating through various City reviews/inspections that all conditions of approval have been satisfied, and that all other requirements of the CMMC have been met.
After passing the final City and HdL inspections, the CBP can be issued. CBP approval is valid for a two-year period and must be renewed (every two years) prior to expiration.
During the two-year CBP period, the Community Improvement Division (CID), along with other City staff, will conduct site inspections to verify that the b usiness is operating in compliance with CUP and CBP requirements. Violations identified during site inspections may be grounds for revocation of issued permits or non-renewal of a CBP.
After obtaining the CBP, the applicant would apply for and obtain a City Business License through the City’s Finance Department. Lastly, the applicant must obtain the appropriate license from the State Department of Cannabis Control (DCC) prior to operating.
Cannabis retail businesses are subject to a City established seven-percent gross receipts tax, which must be paid to the City of Costa Mesa’s Finance Department. Records and revenues are audited regularly by the Finance Department and HdL Companies.
219
-6-
DESCRIPTION
Conditional Use Permit application PCUP-24-0011 is a request to allow a 2,400-square- foot retail cannabis storefront with delivery in an existing commercial building at 1912 Harbor Boulevard. The affiliated State license is a Type 10 “storefront retailer” license.
If the CUP is approved and the operator also obtains a CBP, City Business License, and State license, the business would be allowed to sell pre-packaged cannabis and pre - packaged cannabis products to customers onsite and by delivery, subject to conditions of approval and other City and State requirements.
ANALYSIS
Conditional Use Permit Required
Pursuant to CMMC Sections 13-28(B) and 13-200.93(c)(1), subject to the approval of the Planning Commission, a CUP is required for the establishment of cannabis retail storefronts in a commercial zone. To obtain a CUP, an applicant must show that the proposed use is compatible with the City’s applicable zoning and General Plan provisions/policies/findings, and will not be detrimental to public health, safety, and welfare.
The subject site is located within a commercial zone (C1 – Local Business District) where commercial development is allowed to include retail uses. As defined in the CMMC, “This district is intended to meet the local business needs of the community by providing a wide range of goods and services in a variety of locations throughout the City”. Pursuant to the CMMC, cannabis retail storefronts are subject to extensive regulation (as further described in this report). These regulations are adopted to prevent land use inconsistencies with adjacent properties. Pursuant to the CMMC, the approval of a CUP requires that the Planning Commission make findings related to neighborhood compatibility, health and safety, and land use compatibility. Pro posed uses subject to CUPs will generally have site- specific conditions of approval to ensure the required findings can be met. A detailed project analysis regarding CUP findings is provided below in this report.
Separation Requirements
The proposed project location was evaluated based on the separation requirements in effect during the pre -application submittal. At that time, CMMC Section 13- 200.93(e) stipulated that no cannabis retail storefront use shall be located within 1,000 feet from a K-12 school, playground, licensed child daycare, or homeless shelter, or within 600 feet from a youth center as defined in CMMC Title 9, Chapter VI, Section 9- 485, that is in operation at the time of submission of a completed application.
220
-7-
Additionally, on June 7, 2024, the City Council adopted Ordinance No. 2024- 03, amending Title 13 pertaining to cannabis storefronts. Among other local cannabis regulatory changes, the amendment included increasing the minimum distance between a cannabis storefront and youth center from 600 to 1,000 feet and established a minimum separation of 250 feet between a cannabis storefront and properties zoned for residential use (no minimum distance was required prior). The subject site is located more than 1,000 feet from a youth center and approximately 27 feet from a property zoned PDC (Planned Development Commercial), where a master plan allowed the development of multifamily residences and a parking structure. However, the project location was determined to be in compliance with the separation requirements prior to the effective date of the revised Ordinance , and therefore the project is exempted from recently adopted changes regarding minimum distance from a property zoned for residential use.
All separation distances are measured in a straight line (“as the crow flies”) from the “premises” where the cannabis retail use is to be located to the closest property line of the sensitive use(s) (with the exception of playgrounds). For playgrounds, the property line is a 30- foot radius from the exterior physical boundaries of the playground equipment area. Premises is as defined in the State’s Business and Professions Code Section 26001 as the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee. Therefore, the premises only include the retail cannabis activity areas (including sales, storage, back-of- house and/or other ancillary areas) and excludes the parking lot and other areas that are not part of the area licensed by the State for commercial cannabis activity. The subject site complies with required separations from sensitive uses.
Exterior Improvements
The applicant proposes to update the commercial building into conformance with the Building Code, and improve the building façade with new awnings, doors, and paint.
Other proposed or conditioned exterior improvements include:
• Restriping the parking lot at 1912 Harbor Boulevard to be compliant with the City’s Parking Design Standards;
• Constructing a drive approach on the property that is consistent with the City’s Public Works Standards;
• Removing the unpermitted enclosure and securing the space with a wrought iron or similar fencing material;
• Adding a bicycle rack to encourage multi-modal transportation; • Adding irrigated landscaping planters to include at least one new 24-inch box tree and live, drought-tolerant plants. A detailed landscaping plan would be reviewed during the building plan check process; and
• Installing security lighting and surveillance cameras. 221
-8-
Proposed business signs would be reviewed and permitted separately per the City’s sign code requirements. Pursuant to Condition of Approval No. 6 (Prior to Issuance of Building Permits), business signage shall not include references to cannabis, whether in words or symbols. A rendering of the proposed exterior is provided in Image 2.
Image 2 – Proposed Exterior
Interior Tenant Improvements
The proposed interior remodel includes improvements such as, but not limited to, demolishing existing demising walls, construction of new walls, constructing a second restroom, adding commercial showroom finishes, and installation of an odor control system. A proposed floor area summary is provided in Table 1.
Table 1 – Floor Plan Summary
Operational Area Square Feet
Lobby 138
Retail Area 1,196
Receiving 80
Storage 342
Offices 200
Breakroom 100
Restrooms 120
Hallways 224
Total 2,400
222
-9-
Customer and Employee Access
Customer access would be limited to the lobby and retail area. Customer circulation into the proposed establishment includes entering the licensed premise through the door fronting Harbor Boulevard into the lobby. An employee would verify the customer’s identity and age before allowing the customer to enter the retail sales area.
After a customer’s identity and age is verified and their transaction is completed, they must exit the retail sales area through an exit directly into the lobby. Customers would have to leave the premise through the front door. As further conditioned, staff and a security guard would monitor the area to ensure that customers are following regulations.
All other areas of the premises would be accessible only to employees with the proper security credentials. Employees would enter through the customer entrance or two access-controlled entrances that lead directly into the back -of-house area. Employees would be able to exit through the access -controlled doors or through the main entrance/exit.
Vendor Delivery Operations and Access
All vendors (licensed distributors) will have pre -committed arrival times set by the storefront’s operational managers for product delivery. A limited access (secured) door is located on the south side of the building. All vendor vehicles will load and unload at the closest non-accessible parking space located approximately 45 feet from the limited access door. Vendors would only be allowed to enter the premise while accompanied by an employee with the proper security credentials. The access-controlled door, product path of travel, and vehicle loading/unloading area would be under camera surveillance at all times.
Storefront Operations
The proposed business is required to comply with the City’s adopted retail storefront operational requirements as follows:
• Display State license, CBP, and City business license in a conspicuous building location;
• The hours of operations are limited to 7:00 AM to 10:00 PM Monday through Sunday;
• Shipments of cannabis goods may only be accepted during regular business hours;
• Cannabis inventory shall be secured using a lockable storage system during non- business hours;
• At least one licensed security guard shall be on premises during business hours; 223
-10-
• The premises and the vicinity must be monitored by security and/or other staff to ensure that patrons immediately leave and do not consume cannabis onsite or within close proximity. The CMMC prohibits the consumption of cannabis or cannabis products in public areas; cannabis consumption is limited to non - public areas, such as within a private residence. State law further prohibits cannabis consumption and open container possession wi thin 1,000 feet of sensitive uses and while riding in or driving a vehicle; • There must be continuous video monitoring and recording of the interior and exterior of the premises;
• Adequate security lighting shall be provided and shall be designed to prevent offsite light spill;
• Onsite sales of alcohol or tobacco products and on-site consumption of alcohol, cannabis, and tobacco products is prohibited;
• No one under the age of 21 is allowed to enter the premises.
If the business holds
a retail medical cannabis license (M-license) issued by the State, persons over the age of 18 may be allowed with the proper medical approvals i.e. physician’s recommendation or medical card pursuant to CMMC Section 9-495(h)(6); • Prior to employment, all prospective employees must successfully pass a background check conducted by the City, and the employee must obtain a City issued identification badge;
• Customers are only granted access to the retail area after their age and identity has been confirmed by an employee;
• Each transaction involving the exchange of cannabis goods between the business and consumer shall include the following information:
o Date and time of transaction;
o Name and employee number/identification of the employee who processed the sale;
o List of all cannabis goods purchased including quantity; and o Total transaction amount paid.
• There must be video surveillance of the point-of-sale area and where cannabis goods are displayed and/or stored;
• Cannabis products shall not be visible from the exterior of the building; • Free samples of cannabis goods are prohibited;
• When receiving new inventory from licensed distributors, employees will verify the distributor’s identity and license prior to allowing them to enter the facility through an access-controlled door. After distributor’s credentials have been confirmed, an employee will escort the distributor to the shipping and receiving area and remain with them throughout the process;
• Cannabis goods to be sold at this establishment (either storefront or delivery) must be obtained by a licensed cannabis distributor and have passed laboratory testing;
• Cannabis product packaging must be labeled with required test results and batch number;
224
-11-
• Packaging containing cannabis goods shall be tamper- resistant; if packaging contains multiple servings, the package must also be re-sealable; • When processing orders for cannabis delivery, employees will collect the pre- packaged materials, load products into a secured container and transport the containers to delivery vehicles outside the building. Video surveillance cameras will be installed with direct views of the path of travel and loading and unloading area. All loading and unloading of delivery vehicles will be monitored by the required security guard;
• Cannabis deliveries must be made in -person by an employee of the licensed retailer. An independent contractor, third-party courier service, or an individual employed through a staffing agency would not be considered employed by the licensed retailer;
• The applicant shall maintain proof of vehicle insurance for any and all vehicles being used to deliver cannabis goods;
• During delivery, the employee shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers;
• A delivery employee shall not leave the State of California while possessing cannabis products and while performing their duties for the cannabis retailer; • The business shall maintain a list of all deliveries, including the address delivered to, the amount and type of product delivered, and any other information required by the State;
• Any delivery method shall be made in compliance with State law, as amended, including use of a vehicle that has a dedicated global positioning system (GPS) device for identifying the location of the vehicle (cell phones and tablets are insufficient);
• Signs, decals or any other form of advertisement on the delivery vehicles are prohibited;
• Deliveries must be made to a physical address that is not on publicly owned land and cannot be a school, a day care, homeless shelter, or a youth center; and • A cannabis delivery employee shall not carry cannabis goods valued in excess of $5,000 at any time, with no more than $3,000 of cannabis goods that are not already part of a customer order that was processed prior to leaving the premises.
Business Plan
The applicant has submitted a detailed business plan that was evaluated by the City’s cannabis consultant (HdL). The business plan describes the owner’s experience, proof of capitalization, start-up budget, a three-year pro forma, target customers, key software, and daily operations. The business plan contains proprietary details and is therefore not included as an attachment to this staff report. The City’s cannabis consultant determined that the applicant’s business plan was appropriate for the proposed retail storefront use.
225
-12-
Security Plan
The applicant has submitted a professionally prepared security plan for the proposed retail cannabis establishment. The City’s cannabis consultant reviewed the security plan and determined that appropriate security measures were included to address the City’s security requirements pursuant to CMMC Title 9, Chapter VI, and State law. In May of 2024, the City Council adopted Ordinance No. 2024 -04 amending Title 9 of the Municipal Code, which included a modification to the cannabis storefront security guard requirement from 24 hours per day to only during business hours, unless the Chief of Police determines otherwise. Therefore, and pursuant to the Municipal Code, staff has conditioned the proposed operations to provide security only during business operation, unless otherwise directed by the Chief of Police to maintain security twenty -four (24) hours per day.
Since the security plan contains sensitive operational details that require limited public exposure to remain effective, the plan is not included as an attachment. However, the following is a list of general security measures that are required for all cann abis retail storefronts:
• One security guard will be on -site during business hours, unless otherwise directed by the Chief of Police to have a security onsite twenty-four (24) hours per day;
• All employees, including drivers, must pass a “Live Scan” background check; • City-issued identification badges are required for employees; • An inventory control system shall be maintained;
• Exterior and interior surveillance cameras shall be monitored and professionally installed;
• An alarm system shall be professionally installed, maintained, and monitored; • Surveillance footage must be maintained for a minimum of 90 days; • Cash, cannabis, and cannabis products shall be kept in secured storage areas; • Sensors shall be installed that detect entry and exit from all secured areas; • Security lighting (interior and exterior) shall be installed; • Emergency power supply shall be installed;
• Employees shall be trained for use with any/all emergency equipment; • Delivery drivers shall be trained on delivery safety protocols; • Employees and vendors will be trained regarding cash and product transportation protocol;
• Visitor/customer specific security measures shall be required; • All facility entry and exit points and locations where cash or cannabis products are handled or stored shall be under camera surveillance;
• The applicant shall submit a list of all vehicles to be used for retail delivery purposes to the Costa Mesa Police Department. The list shall identify the make, model, color, license plate number, and registered owner of each vehicle. The 226
-13-
applicant shall submit an updated vehicle list each quarter with the required quarterly update to the employee roster pursuant to the CBP; • Delivery vehicle drivers shall be at least age 21, have a current driver’s license, successfully complete a live scan, and have a City-issued badge; and • The business operator shall ensure that all delivery vehicles are properly maintained, all delivery drivers have a good driving record, and each driver conducts a visual inspection of the vehicle at the beginning of a shift.
Circulation and Parking
Vehicular access to the aforementioned properties is provided via the shared parking lot and three driveways located along Harbor Boulevard. Access and p arking is also provided at the rear of the subject property via a public alley that is accessed from Harbor Boulevard and West 19
th Street.
On December 12, 2016, the City of Costa Mesa Planning Commission approved PA- 16-65, a CUP for shared parking for the subject property and five adjacent parcels (1912 through 1942 Harbor Boulevard), and to allow a deviation from parking requirements to facilitate the expansion of an existing massage business. Pursuant to the CMMC Section 13-6, when there is a mixture of uses within a single development that share the same parking facilities, the total requirement for parking is determined by the Costa Mesa shared parking analysi s procedures which is adopted by City Council Resolution. In 2016, the shared parking for the site and adjacent properties was considered by the Planning Commission and determined to meet the parking requirements pursuant to the City’s parking provisions. Further, CMMC Section 13-204 permits that when a use is c hanged that requires the same amount of parking as the previous use, no additional parking is required. The previous and proposed use at 1912 Harbor Boulevard are both retail uses and subject to the same parking ratio requirement (four spaces per 1,000 square feet of gross floor area), and therefore the project complies with the City’s parking standards.
Lastly, Assembly Bill 2097 (AB 2097) was signed into law by Governor Newsom and became effective on January 1, 2023. The primary objective of this legislation is to limit local governments from imposing minimum parking regulations on commercial and residential projects that are located within 0.5 miles of a major transit stop. AB 2097 defines “major transit stop” as an existing rail or bus rapid transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more majo r bus routes with a frequency of service interval of 20 minutes or less during the morning and afternoon peak commute periods. Staff reviewed the nearby public transit facilities and determined that the subject property is located within 0.5 miles of a maj or transit stop (near the intersection of Harbor Boulevard and W. 19th Street). Therefore, pursuant to AB 2097 the City of Costa Mesa cannot impose a minimum parking requirement on this land use entitlement.
227
-14-
As proposed and conditioned, the applicant would install a bike rack to encourage multimodal transportation. As also conditioned, vendor and delivery vehicles would schedule or coordinate arrivals (phone, text, etc.) to ensure adequate parking is available on the subject property , and if parking shortages or other parking -related problems occur that are related to the proposed cannabis storefront, the business owner or operator will be required to monitor the parking lot and institute appropriate operational measures necessary to minimize or eliminate the problem in a manner deemed appropriate by the Director of Economic and Development Services (see “Operational Conditions” of Approval No. 7 in the attached Resolution). Examples of parking demand management techniques include, but are not limited to, reducing operating hours of the business during peak hour parking lot demand periods, hiring an employee to monitor parking lot use and assist with customer parking lot circulation, encouraging delivery services to reduce in person store visits, and incentivizing employee carpooling/cycling/walking.
Traffic
CMMC Section 13-275(e) indicates that any increase in traffic generation by a change of use that is required to obtain a discretionary permit, shall be subject to review by the appropriate reviewing authority, which may impose fees to address increased trip generation. If required, the fee collected is used to fund the City’s comprehensive transportation system improvement program. The purpose of the program is to ensure that the City’s transportation system has the capacity to accommodate additional trips.
The Citywide Traffic Impact Fee related to new and expanding developments is determined using estimated Average Daily Trips (ADT), which is the combined total number of vehicular trips both in and out of a development generated throughout an average weekd ay. The Transportation Services Division determined that the appropriate ADT for a cannabis retail establishment is approximately 108 trips per 1,000 square feet based on the Institute of Transportation Engineers (ITE) 11 th Edition
Trip Generation Manual f or the most similar use - “pharmacy/drug store with drive - through”.
CMMC Section 13-275(a), specifies that “a traffic impact study shall be required for all development projects estimated by the Public Works Department to generate one hundred (100) or more vehicle trip ends during a peak hour.” The highest peak hour trips in either the AM or PM is used to estimate the number of vehicular trips generated both in and out of a new or expanded development known as vehicle trip-ends during a peak hour. Staff reviewed and determined that the proposed use would have 8.75 net peak hour trips and therefore does not meet the threshold of 100 peak hour trips requiring a traffic study. However, t he proposed use would be subject to a traffic impact fee, which is estimated to be $28,670. The fee calculation would be finalized during the building permit plan check process and must be paid prior to building permit issuance.
228
-15-
Odor Attenuation
If approved, cannabis products would arrive in State compliant packaging that is odor- resistant sealed and remain unopened while on the premises. Pursuant to the CMMC, “odor control devices and techniques shall be incorporated in all cannabis businesses to ensure that odors from cannabis are not detectable off site”. Further, as conditioned, if cannabis odor is detected outside of the building or off-site, the business owner/operator will be required to institute further operational measures necessary to eliminate off-site odors in a manner deemed appropriate by the Director of Economic and Development Services or their designee. Lastly, cannabis products are subject to State mandated waste protocols and are not allowed to be disposed of in any exterior trash enclosure.
Proximity to Residential
Similar to many commercial areas in the City, this area is developed with a mixture of commercial and residential uses. To ensure compatibility with residences in the area, proposed project conditions and requirements include the following:
• The business hours are limited from 7 AM to 10 PM;
• Security lighting is shielded and directed down/away from adjacent properties.
As conditioned, a photometric study would be required to be submitted during plan check to demonstrate that light levels are appropriate; • Operator shall post signs in the parking lot at 1912 Harbor Boulevard to remind customers and vendors to keep noise levels to a minimum (the security guard shall also be responsible for noise enforcement);
• A security guard shall be onsite during hours of operation; and • A staff person or the security guard will regularly monitor the site’s parking lot to ensure that customers are quiet, turn off vehicle engines promptly, do not play loud music, etc.
GENERAL PLAN CONFORMANCE
The Costa Mesa General Plan establishes the long‐range planning and policy direction that guides change and preserves the qualities that define the community. The 2015- 2035 General Plan sets forth the vision for Costa Mesa for the next two decades. This vision focuses on protecting and enhancing Costa Me sa’s diverse residential neighborhoods, accommodating an array of businesses that both serve local needs and attract regional and international spending, and providing cultural, educational, social, and recreational amenities that contribute to the quality of life in the community. Over the long term, General Plan implementation will ensure that development decisions and improvements to public and private infrastructure are consistent with the goals, objectives, and policies contained in this Plan.
229
-16-
The following analysis evaluates the proposed project’s consistency with applicable policies and objectives of the 2015-2035 General Plan.
1. Policy LU -1.1: Provide for the development of a mix and balance of housing opportunities, commercial goods and services and employment opportunities in consideration of the need of the business and residential segments of the community.
Consistency: The proposed use would provide commercial goods, and employment opportunities on the subject commercial property. The Municipal Code, amended in 2024, allows the processing of cannabis storefront applications that passed the pre -application phase prior to the May 2024 cannabis Ordinance amendments, up to 35 approvals. Currently there are 26 approved CUPs for cannabis storefronts, of which 12 are open. The proposed use passed the pre-application phase prior to the May 2024, and if approved would not result in the exceedance of the cannabis storefront limit established by the City Council in 2024.
2. Objective LU-6B: Encourage and facilitate activities that expand the City’s revenue base.
Consistency: Retail cannabis uses are subject to a unique local tax that does not apply to other retail businesses in Costa Mesa. Retail cannabis uses are expected to generate increased tax revenues due to a seven-percent local tax on gross receipts. Most of this revenue will be used for community services and infrastructure improvements that serve the community. A half percent of the retail cannabis tax funds the City’s Arts and Culture Master Plan and another half percent is set aside for the City’s First Time Homebuyers Fund.
3. Policy LU-6.15: Promote unique and specialized commercial and industrial districts within the City which allow for incubation of new or growing businesses and industries.
Consistency: The proposed use is part of the specialized industry that is limited in Orange County. Out of 34 cities in the county, only four have cannabis storefronts--Costa Mesa, Laguna Woods, Santa Ana, and Stanton.
Approval of this CUP would facilitate a business opportunity in a specialized and expanding industry along one of the City’s primary commercial corridors.
4. Policy LU-3.1: Protect existing stabilized residential neighborhoods, including mobile home parks (and manufactured housing parks), from the encroachment of incompatible or potentially disruptive land uses and/or activities.
Consistency: The subject property is located along Harbor Boulevard in an area categorized by a mixture of uses. As conditioned, the proposed use would operate during limited hours, operator would post signs regarding 230
-17-
noise in the parking lot, be required to control odor, and to provide onsite security during business hours, in addition to 24 -hour video camera surveillance and other security features. The cannabis operation conditions of approval and the State and local cannabis reg ulations exceed typical requirements for other retail uses.
FINDINGS
Pursuant to Title 13, Section 13-29(g), Findings, of the Costa Mesa Municipal Code, in order to approve the project, the Planning Commission must find that the evidence presented in the administrative record substantially meets specified Conditional Use Permit findings as follows:
• The proposed development or use is substantially compatible with developments in the same general area and would not be materially detrimental to other properties within the area.
The subject site is located within a commercial zone (C1, Local Business District) where commercial development is specifically allowed to include retail uses. In addition, the property is located on one of the City’s primary commercial corridors that is predominantly intended for commercial uses. Pursuant to the CMMC, cannabis retail storefronts are permitted uses in the C1 zone and are subject to extensive regulation as described in this report.
All retail sales would take place under the roof, no outdoor storage or sales are proposed nor would be allowed, and operations would be conditioned to be compliant with applicable local and State laws, as well as to minimize potential impacts on neighboring properties. Staff does not anticipate that the proposed retail cannabis use would be materially detrimental to uses in the vicinity such as restaurants, retail stores, offices, medical offices, car dealerships, and residences.
Lastly, the proposed use would not be materially detrimental to adjacent uses because the project would include features to ensure compatibility such as following a photometric plan so security lighting is shielded from adjacent properties, having a security guard onsite during hours of operation, and implementing odor control measures. As proposed and conditioned, the retail cannabis use would be compatible with other properties within the area, and in compliance with local and State requirements.
• Granting the conditional use permit will not be materially detrimental to the health, safety and general welfare of the public or otherwise injurious to property or improvements within the immediate neighborhood.
231
-18-
The proposed cannabis retail storefront use would follow safety measures detailed in a professionally-prepared security plan. The security plan was evaluated for compliance by the City’s cannabis consultant, HdL. Measures designed to maintain safety at the site include, but are not limited to, at least one security guard that would be onsite during the hours of operation and security devices shall be installed before operation. Examples of security devices include window and door alarms, motion -detectors, limited access areas, and a monitored video surveillance system covering all exterior entrances, exits, and all interior limited access spaces. In addition, the business employees, including part -time staff, must pass a live scan background check and obtain an identification badge from the City that indicates they have passed certain employee requirements . The conditions of approval include, but are not limited to, the aforementioned security measures to ensure that the use would not be materially detrimental to the health, safety and general welfare of the public or be otherwise injurious to property or improvements within the immediate neighborhood.
• Granting the conditional use permit will not allow a use, density or intensity which is not in accordance with the General Plan designation and any applicable specific plan for the property.
The property has a General Plan land use designation of “Commercial Residential”. The intent of this land use designation is to allow a mix of commercial and residential uses. As stated in the General Plan Land Use Element, the City’s commercial designations “accommodate a full range of commercial activity present and desired in Costa Mesa.” The proposed storefront is consistent with General Plan policies related to providing a mixture of commercial goods, services, and employment opportunities; expanding t he City’s tax base; and promoting the incubation of specialized businesses. The City’s General Plan sets forth long-term policies that guide future development, whereas the Zoning Ordinance implements general plan policies through detailed development regulations, such as specific use types and building standards. Therefore, in determining General Plan compliance for the proposed cannabis retail storefront use, a comparison of the proposed use with the use, density and intensity allowed by the applicable zoning district is required. In this case, the applicable zoning district is “Local Business District” (C1). A variety of commercial uses are allowed in the C1 zone, including a retail cannabis storefront, subject to a CUP. No additional square footage is pr oposed; therefore, the proposed use would not increase the floor area ratio (building intensity) or increase the number of residential units onsite (density).
The subject site is located within the boundaries of the 19 West Urban Plan. The Urban Plan establishes an overlay that allows commercial and residential mixed- use development on properties with a minimum size of one -acre through a Master Plan, where such development is not permitted by the underlying 232
-19-
zoning. The proposed project is not a mixed-use development and therefore is not utilizing any provisions of the 19 West Specific Plan.
ENVIRONMENTAL DETERMINATION
The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301, for the permitting and/or minor alteration of Existing Facilities, involving negligible or no expansion of the existing or prior use. This project site contains an existing commercial building that has been used historically for commercial activities. The application does not propose an increase in commercial floor area or otherwise expand the prior commercial use.
The project is consistent with the applicable General Plan land use designation and policies as well as with the applicable zoning designation and regulations.
Furthermore, none of the exceptions that bar the application of a categorical exemption pu rsuant to CEQA Guidelines Section 15300.2 applies. Specifically, the project would not result in a cumulative impact; would not have a significant effect on the environment due to unusual circumstances; would not result in damage to scenic resources; is no t located on a hazardous site or location; and would not impact any historic resources.
ALTERNATIVES
The Planning Commission can consider the following decision alternatives:
1. Approve the project . The Planning Commission may approve the project as proposed, subject to the conditions outlined in the attached Resolution.
2. Approve the project with modifications . The Planning Commission may suggest specific changes that are necessary to alleviate concerns. If any of the additional requested changes are substantial, the hearing could be continued to a future meeting to allow a redesign or additional analysis. In the event of significant modifications to the proposal, staff will return with a revised Resolution incorporating new findings and/or conditions.
3. Deny the project . If the Planning Commission believes that there are insufficient facts to support the findings for approval, the Planning Commission must deny the application, provide facts in support of denial, and direct staff to incorporate the findings into a Resolution for denial. If the project is denied, the applicant could not submit substantially the same type of application for six months.
233
-20-
LEGAL REVIEW
The draft Resolution and this report have been approved as to form by the City Attorney’s Office.
PUBLIC NOTICE
Pursuant to Title 13, Section 13-29(d) of the Costa Mesa Municipal Code, three types of public notification have been completed no less than 10 days prior to the date of the public hearing:
1. Mailed notice. A public notice was mailed to all property owners and occupants within a 500-foot radius of the project site. The required notice radius is measured from the external boundaries of the property.
2. On-site posting. A public notice was posted on each street frontage of the project site.
3. Newspaper publication. A public notice was published once in the Daily Pilot newspaper.
As of the date this report was circulated, no public comments have been received. Any public comments received prior to the February 24, 2025, Planning Commission meeting will be provided separately.
CONCLUSION
The proposed project is a retail cannabis storefront at an existing commercial property that is located on one of the City’s primary commercial corridors. Staff and the City’s cannabis consultant completed the Pre -application Determination, Business Plan a nd Security Plan evaluations, owner background checks, and thoroughly reviewed the CUP materials. If approved, the operation would be required to comply with all conditions of approval and extensive City and State regulations.
If the Planning Commission approves the project, the applicant would next obtain building permits, complete site and building improvements, and pass City inspections prior to obtaining a CBP and City Business License. The CBP would be valid for two years and must be continuously renewed, including inspections, prior to expiration.
During each two-year CBP period, the Community Improvement Division, along with other City staff, conducts site inspections to verify that the operation complies with CUP and CBP requirements.
As proposed and conditioned, the use would be consistent with other commercial uses in the C1 zone, the Zoning Code, and the City’s General Plan. The required findings for 234
-21-
the CUP can be made, as described above, and therefore, staff recommends approval of PCUP-24-0011 subject to conditions of approval.
235
ATTACHMENT 6
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
RECIVED
AFTER
12NOON
DEADLINE
265
266
267
ATTACHMENT 7
Minutes – Costa Mesa Planning Commission Meeting – February 24, 2025- Page 1
REGULAR PLANNING COMMISSION
MONDAY, FEBRUARY 24, 2025 - MINUTES
CALL TO ORDER - The Regular Planning Commission Meeting was called to order by Chair Jeffery Harlan at 6:00 p.m.
PLEDGE OF ALLEGIANCE TO THE FLAG – Commissioner Klepack led the Pledge of Allegiance
ROLL CALL
Present: Chair Jefferey Harlan , Vice Cha ir Jon Zich , Commissioner Angely Andrade , Commissioner Karen Klepack , Commissioner David Martinez, Commissioner Johnny Rojas
Absent: Commissioner Robert Dickson
ANNOUNCEMENTS AND PRESENTATIONS: None.
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA: None.
PLANNING COMMISSIONER COMMENTS AND SUGGESTIONS:
Commissioner Martinez announced that the City Council has approved a contract to begin the rezoning process, expressing hope for progress soon. He attended CicLAvia in Los Angeles, an event promoting non-vehicle transportation, and hopes Costa Mesa can host a similar event, as Irvine has already done. He highlighted upcoming events, including an Active Transportation Forum in Fullerton on February 27, the Costa Mesa Sanitary District Citizens Advisory Committee application deadline on March 4, and a Communi ty Bike Skills Workshop on March 8 at Iglesia Harbor Church.
CONSENT CALENDAR:
1. JULY 24, 2023 UNOFFICIAL MEETING MINUTES
MOVED/SECOND: ZICH/MARTINEZ
MOTION: Approve the Regular meeting Minutes of July 24, 2023.
The motion carried by the following roll call vote:
Ayes: Chair Harlan, Vice Chair Zich, Commissioner Andrade, Commissioner Klepack, Commissioner Martinez, Commissioner Rojas, Commissioner Rojas Nays: None
Absent: Commissioner Dickson
268
ATTACHMENT 7
Minutes – Costa Mesa Planning Commission Meeting – February 24, 2025- Page 2
Abstained: None
Motion carried: 6-0-1
------------------------------------END OF CONSENT CALENDAR------------------------------------
PUBLIC HEARINGS:
Chair Harlan announced that staff requested a reordering of the agenda to hear Public Hearing item number 1 last and asked the Commission to make a motion to reorder the agenda accordingly.
MOVED/SECOND: ZICH/Martinez
MOTION: Reordering of the agenda to hear Public Hearing item number 1 last.
The motion carried by the following roll call vote:
Ayes: Chair Harlan, Vice Chair Zich, Commissioner Andrade, Commissioner Klepack, Commissioner Martinez, Commissioner Rojas, Commissioner Rojas Nays: None
Absent: Commissioner Dickson
Abstained: None
Motion carried: 6-0-1
2. APPEAL OF THE DIRECTOR OF DEVELOPMENT SERVICES
DETERMINATION THAT CONDITIONAL USE PERMIT PA -21-23 TO
ESTABLISH A CANNABIS STOREFRONT LOCATED AT 1687 ORANGE
AVENUE (KING’S CREW) HAS EXPIRED
Two ex-parte communication reported by Vice Chair Zich and Commissioner Rojas.
Gabriel Villalobos, Assistant Planner, presented the item.
During the discussion with staff , commissioners sought clarification on various aspects of the staff report, including the date it was written, details regarding the applicant’s appeal, and information on Southern California Edison, which the applicant was present to address. Questions a rose about the criteria for issuing building permits, certificates of occupancy, and business licenses, with staff explaining that a certificate of occupancy could be issued without a building permit in cases where no significant tenant improvements were r equired. The process of assessing and collecting fees was also discussed, with staff outlining that fees are initially assessed and later collected in various subsequent permit review stages. It was confirmed that applicants are generally responsible for tracking deadlines and requesting extensions, and that significant tenant improvements require a reissued certificate of occupancy. The applicant had agreed to the conditions of approval at the initial hearing (including the expiration requirements) . Additi onally, commissioners inquired about requests for clean sets of plans, which were confirmed to have been made via email, and it was verified that all relevant 269
ATTACHMENT 7
Minutes – Costa Mesa Planning Commission Meeting – February 24, 2025- Page 3
departments had tentatively approved the plans, pending supplemental information and final clean sets for stamping.
The Chair opened the Public Hearing.
Commissioners questioned the applicant about project delays, focusing on why a request for a clean set of plans was not addressed. The applicant explained that Southern California Edison required electrical redesigns which took about two months to complete, delaying their ability to submit updated plans. They also cited challenges with securing an encroachment permit and communication gaps with city staff, including a planner’s departure, which contributed to the delays. When asked if they had requested an extension, the applicant stated they had inquired about maintaining compliance with the 2020 building code but had not specifically sought an extension for the Conditional Use Permit, as they were unaware of its pending expiration. Commissioners also sought clarity on the timeline for final city- approved plans, which the applicant estimated would have required an additional three months after Edison’s changes.
The Chair Opened for Public Comment.
Public comment:
No public Comments.
The Chair Closed Public Comment.
The Chair closed the Public Hearing and called for a motion.
MOVED/SECOND: ZICH/MARTINEZ
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Chair Harlan, Vice Chair Zich, Commissioner Andrade, Commissioner Klepack, Commissioner Martinez, Commissioner Rojas
Nays: None
Absent: Commissioner Dickson
Abstained: None
Motion carried: 6-0-1
ACTION: The Planning Commission adopt a Resolution to:
1. Find that the appeal is not subject to the California Environmental Quality Act per California Public Resources Code Section 15268; and
2. Uphold the Director of Development Services determination that Conditional Use Permit PA-21-23 has expired pursuant to Costa Mesa Municipal Code Sections 13-29(k)(2) and Conditional Use Permit Condition of Approval No. 2.
270
ATTACHMENT 7
Minutes – Costa Mesa Planning Commission Meeting – February 24, 2025- Page 4
3. CONDITIONAL USE PERMIT PCUP -24-0011 FOR A RETAIL CANNABIS STOREFRONT BUSINESS WITH DELIVERY (“GREEN MART”) LOCATED AT 1912 HARBOR BOULEVARD
Two ex-parte communications reported from Vice Chair Zich and Commissioner Andrade.
Chair Harlan recused himself due to a conflict of interest.
Michelle Halligan, Senior Planner presented the item.
Commissioners and staff discussed several aspects of the project, including floor plan accessibility, traffic /circulation, parking, cannabis delivery regulations, and broader land use policies. Concerns were raised about whether employees could move between restricted and public areas without exiting the building .
Commissioners inquired about murals, with staff noting the applicant was considering a green wall at this time . Questions on traffic circulation focused on ensuring delivery vehicles would not ob struct bike lanes and whether store front deliver vehicles should have identifying markings, which staff confirmed is prohibited by state law. Parking concerns were raised regarding the placement of a bike rack, with staff clarifying that while its inclusion was required by condition of approval, bike rack design details were not specified. Bike rack design and other improvement details would be reviewed during the building permit plan check process. Commissioners also sought clarity on distinguishing betwe en vendor deliveries and customer deliveries and concern was expressed regarding future parking impacts along Harbor boulevard due to AB 2097. The conversation shifted to broader cannabis storefront policies, such as how many additional applications are pending. Staff confirmed three additional CUP applications were pending and committed to provide updates on application statuses.
The Vice Chair opened the Public Hearing.
Commissioners sought clarification on how employees would move between the restricted access area and the retail sales area. The applicant explained that employees could access the retail space through a small pony wall with an unhinged opening near the ca sh registers. Additionally, a secure access door requiring a key card was located across from the restrooms, providing access to storage areas and other restricted sections. The discussion confirmed that both access points were designed to maintain securit y while allowing staff to assist customers as needed.
The Vice Chair opened for Public Comment.
Public comment:
271
ATTACHMENT 7
Minutes – Costa Mesa Planning Commission Meeting – February 24, 2025- Page 5
Jill Welton, expressed strong opposition to the proposed dispensary, citing past negative experiences with an illegal cannabis business that operated on their property. Concerns included parking issues, littering, loitering, marijuana odor, and the presence of homeless individuals, which led to significant financial losses and tenant departures. She argued that the proposed dispensary could cause similar problems, especially given the existing cannabis businesses nearby, and emphasized concerns about the adjacent property owner’s poor management and lack of maintenance, which they believed could further contribute to issues in the area.
Jane Flynn (adjacent property owner), expressed strong opposition to the proposed dispensary, citing past negative experiences with the applicant, whom they accused of repeatedly disregarding regulations in another city. She alleged that the applicant had previously misrepresented himself to secure a lease in Newport Beach, where he operated an unpermitted nightclub and adult filming studio, leading to multiple code violations and eventual eviction. Additionally, she noted that the applicant had a Conditional Use Permit revoked in Upland due to public safety concerns. Given this history and concerns over the adjacent property owner's lack of oversight, she urged the commission to deny the permit, warning of potential regulatory violations and negative impacts on the surrounding community.
Kendra Carney-Mayor, attorney representing a neighboring property owner, voiced strong opposition to the proposed dispensary, emphasizing concerns over enforcement, mitigation, and compatibility with surrounding businesses. She argued that the current conditions of approval defer mitigation until after issues arise, placing the burden on neighboring property owners and tenants to report problems. She requested additional conditions, such as a trigger for CUP review and potential revocation if multiple verif ied complaints are received, as well as an annual review incorporating community feedback. Concerns were also raised about parking, loading access, odor control, and inconsistencies in the project’s design, including the lack of rear access and a fireplace inside the retail space. Given the applicant’s alleged history of regulatory violations and concerns over the absentee landlord, they urged the commission to deny the permit or impose stricter conditions to ensure compliance and prevent future issues.
Lindsay LoBianco spoke in support of the proposed dispensary, praising the applicant’s business acumen, problem-solving skills, and ability to drive growth and efficiency. She described the applicant as an innovator with a professional demeanor and emphasized their positive impact on both the company and the surrounding community.
Braley Conticcio, spoke in support of the applicant, highlighting his leadership, strategic thinking, and problem-solving abilities. She praised his ability to navigate challenges, drive business growth, and foster a positive work environment, emphasizing his integrity and professionalism.
272
ATTACHMENT 7
Minutes – Costa Mesa Planning Commission Meeting – February 24, 2025- Page 6
The Vice Chair Closed Public Comment.
The Vice Chair closed the Public Hearing.
Commissioners questioned staff about security, background checks, site conditions, complaint tracking, and parking requirements. Staff confirmed that the floor plan would include a pony wall with controlled access and that applicant background checks focus on criminal and financial history but do not assess prior zoning code violations unless they resulted in criminal charges. Concerns about an existing fireplace were addressed, with staff explaining it w ould have to be inoperable and would be reviewed building permit during plan checks. Regarding parking, staff acknowledged that while state law AB 2097 prohibits minimum parking requirements, a condition of approval allows the city to work with businesses on mitigation strategies like delivery services and off -site employee parking if issues arise.
The Vice Chair Called for a motion.
Commissioner Martinez made the motion. Seconded by Commissioner Klepack.
Commissioner Martinez expressed support for the motion, referencing City Council’s decision to allow up to 35 cannabis storefronts and noting the presence of several nearby bus routes, which minimized his concerns about parking.
Commissioner Andrade opposed the motion, citing inconsistency with General Plan Land Use Policies LU-1.1 and LU-3.1. Vice Chair Zich stated he would support the motion and emphasized that the application complies with the city’s ordinance. He acknowledged public concerns regarding p arking, proximity to family -oriented businesses, overconcentration, safety, and clientele. He also noted that while the applicant’s community involvement is appreciated, it does not influence the commission’s decision under existing city policy.
MOVED/SECOND: MARTINEZ/KLEPACK
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Vice Chair Zich, Commissioner Klepack, Commissioner Martinez Nays: Commissioner Andrade, Commissioner Rojas
Absent: Commissioner Dickson
Abstained: Chair Harlan
Motion carried: 3-2-1-1
Action: The Planning Commission adopt a Resolution to:
1. Find that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1) Existing Facilities; and
273
ATTACHMENT 7
Minutes – Costa Mesa Planning Commission Meeting – February 24, 2025- Page 7
2. Approve Conditional Use Permit PCUP -24-0011 based on findings of fact and subject to the conditions of approval as contained in the Resolution.
The Vice Chair called for a break.
The Chair called the meeting back into order.
1. A RESOLUTION RECOMMENDING THAT THE CITY COUNCIL GIVE FIRST READING TO AN ORDINANCE TO AMENDING TITLE 13 OF THE COSTA MESA
MUNICIPAL CODE PERTAINING TO ACCESSORY DWELLING UNITS TO
CONFORM TO RECENT REVISIONS TO STATE LAW (CODE AMENDMENT PCTY-24-0002)
No ex-parte communications
Chris Yeager, Senior Planner presented the item.
Commissioners and staff discussed regulations pertaining to Accessory Dwelling Units (ADUs), deed restrictions, and the City’s role in promoting ADU development.
Staff explained that while deed restrictions can be applied to Junior ADUs (JADUs), they are prohibited for standard ADUs under state law. Commissioners questioned how the City could enforce short -term rental restrictions on ADUs without deed restrictions, and staff clarified that this restriction was incorporated into the municipal code instead. Further discussion touched on why the City actively promotes ADUs in its housing element, with staff explaining that ADUs provide a quick and efficient way to increase affordable housing stock. Commissioners also raised concerns about ordinance language, noting that the government code section governing ADUs is repeatedly referenced as an exception, and suggested that City Council review the structure of the ordinance for clarity. Lastly, questions arose about the ability of homeowners' associations (HOAs) to prohibit ADUs, with staff stating that HOAs cannot prohibit ADUs.
No Public Comments.
Commissioner Andrade asked how the city plans to track and ensure that future ADU rentals are considered affordable for low- or middle-income households. Staff explained that the city has conducted a survey of previously approved ADUs to gather information on rental rates and tenant income levels, including cases where units are provided to family members for free. Additionally, the new ADU on-line permit process now includes a section requesting this information to help the city count these units toward its Regional Housing Needs Assessment (RHNA) goals.
MOVED/SECOND: MARTINEZ/KLEPACK
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
274
ATTACHMENT 7
Minutes – Costa Mesa Planning Commission Meeting – February 24, 2025- Page 8
Ayes: Chair Harlan, Commissioner Andrade, Commissioner Klepack, Commissioner Martinez, Commissioner Rojas
Nays: Vice Chair Zich,
Absent: Commissioner Dickson
Abstained: None
Motion carried: 5-1-1
OLD BUSINESS: None.
NEW BUSINESS: None.
REPORT - PUBLIC WORKS - None.
REPORT - DEVELOPMENT SERVICES - None.
REPORT - ASSISTANT CITY ATTORNEY - None.
ADJOURNMENT AT 8:29 PM
Submitted by:
__________________________________
SCOTT DRAPKIN, SECRETARY
COSTA MESA PLANNING COMMISSION
275
From: FAI FO <[email protected]>
Sent: Thursday, March 13, 2025 5:05 PM
To: GREEN, BRENDA <[email protected]>; Jill Welton <[email protected]>; [email protected]
Subject: Please overturn retail cannabis on 1912 Harbor Blvd!
March 13, 2025
City of Costa Mesa
City Council
Attention: Honorable John Stevens
77 Fair Drive
Costa Mesa, CA 92626
To the Honorable Mayor and Members of the Costa Mesa City Council,
My name is Tri Luu and I am a small business owner operating iSolutions located at 442 West 19th Street for over 10 years. I am writing to express my strong support of the appeal of the Planning Commission’s decision to approve the CUP -24-0011, allowing a retail cannabis dispensary to operate at 1912 Harbor Boulevard in Costa Mesa, which is directly next door to our center. I strongly encourage the City Council to overturn the Planning Commission’s decision and deny the CUP for this use.
I am extremely concerned about the negative impact that a dispensary use will have on my business and our retail center in general. We have had experience with a dispensary in this center in the past and seen firsthand the negative impact that it had on the parking, which is shared between our center and the neighboring center. In addition, we are concerned about the types of customers that will be visiting the dispensary and overflowing into our retail center, potentially causing an undesirable environment for our employees and customers. We also have security concerns as our business has already experienced break -ins and theft in the past and I am concerned that dispensary use may increase safety and crime related issues.
The Planning Commission did not modify any conditions of approval for this use or the operator in the CUP approval process and I hope that the City of Costa Mesa City Council will overturn this CUP and take the surrounding businesses’ success and livelihood into consideration.
Thank you for your time and consideration,
ATTACHMENT 8
276
Tri Luu
iSolution
277
From: GREEN, BRENDA
To: TERAN, STACY
Subject: FW: Il dolce letter
Date: Monday, March 17, 2025 11:02:40 AM
Brenda Green
City Clerk
City of Costa Mesa
714/754-5221
From: Andres Bignes <[email protected]>
Sent: Friday, March 14, 2025 11:51 AM
To: GREEN, BRENDA <[email protected]>
Subject: Il dolce letter
Andres R. Bignes
1902 Harbor Blvd.
Costa Mesa, CA 92867
[email protected]
March 14th, 2025
Planning Division
City of Costa Mesa
City Hall Council Chamber
77 Fair Dr.
Costa Mesa, CA
Subject: Opposition to Proposed Marijuana Dispensary Near IL DOLCE RESTAURANT Application Number: PCUP-24-0011
To the Honorable Mayor and Members of the Costa Mesa City Council,
I hope this message finds you well. I am writing to formally express my strong opposition to the proposed medical marijuana clinic in the shopping center where my restaurant, IL DOLCE RESTAURANT, is located. This letter is in support of the appeal of the Planning Commission's resolution approving PCUP-24-0011, as I believe that this establishment will not only disrupt our operations but will also negatively impact the safety and overall atmosphere of our shopping center.
The previous illegal medical marijuana clinic in the shopping center created significant challenges for my restaurant. Its presence led to increased loitering and disruptive behavior from individuals in the area. It became a common sight to see groups lingering outside, which made our customers uncomfortable and discouraged them from visiting. The behavior associated with the clinic’s patrons 278
disrupted the family-friendly environment we have worked hard to maintain for the past 15 years.
Moreover, the influx of visitors to the former clinic resulted in a noticeable increase in litter and debris. This not only detracted from the overall aesthetics of the shopping center but also contributed to an unwelcoming atmosphere. A clean and well-maintained environment is essential for attracting customers, and the presence of litter significantly diminishes the appeal of the area, ultimately affecting all businesses within the center.
I must express my profound disappointment with the Planning Division's approval of the Conditional Use Permit (CUP) for this proposed dispensary. It is disheartening to see such a critical decision made without fully considering the adverse effects it will have on the surrounding businesses and the local community. The approval feels like a disregard for the voices of small business owners who have invested in and contributed to the character of this community.
Additionally, I wish to raise concerns regarding the owner of the proposed clinic. He approached me under the pretense of discussing a different type of business and presented a petition that I later discovered was intended for a medical marijuana clinic. I felt deceived and misled during this interaction, as it was clear he had undisclosed ulterior motives. During his visit, the proposed owner inquired about the letters we submitted to the City Council, questioning our concerns and the reasons behind our opposition to his establishment. His approach felt intrusive, leaving both my mother and me feeling uncomfortable about his intentions, further amplifying my concerns regarding the type of establishment he intends to run.
As a local business owner, I am deeply committed to fostering a thriving and safe community for all residents and visitors. I urge the City Council to reconsider the potential negative consequences of this new clinic and to prioritize the interests of existing businesses and the overall well-being of our community.
Thank you for your attention to this matter. I hope you will take my concerns seriously as you deliberate on this issue.
Sincerely,
Andres R. Bignes
IL DOLCE RESTAURANT
279
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-248 Meeting Date: 4/15/2025
TITLE:
RESOLUTION FOR APPROVAL OF THE DRAFT RELOCATION PLAN AND RELOCATION ASSISTANCE FOR TENANTS OF 778 SHALIMAR DRIVE
DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: CECILIA GALLARDO-DALY, ASSISTANT CITY MANAGER CONTACT INFORMATION: HADASSA JAKHER, ASSISTANT TO THE CITY MANAGER (714) 754-4885
RECOMMENDATION:
Staff recommends the City Council:
1. Adopt proposed Resolution No. 25-XX approving the draft Relocation Plan for the Shalimar Park Expansion Project’sacquisition of real property located at Assessor’sParcel Number 424- 051-23 (778 Shalimar Drive) and appropriating funds thereof.
2. Authorize an appropriation of $203,717 in the Housing Trust Fund (Fund 222) for relocation assistance.
3. Authorize the City Manager, City Attorney, and Finance Director to implement the approved Relocation Program.
BACKGROUND:
The residential real property (Property) located at 778 Shalimar Drive, Costa Mesa, California 92627, Assessor Parcel Number (APN) 424-051-23 was listed for sale on May 23, 2024. The 6,970 square- foot property includes a 3,390 square-foot, four-unit residential structure, with each unit having two bedrooms with one bathroom. Currently, three of the four units are occupied, with one unit vacant.
The Property is adjacent to Shalimar Park, which is located in the Westside neighborhood along Shalimar Drive, between Wallace Avenue and Placentia Avenue.
In June 2024, City staff identified the potential land acquisition of the Property for additional community-serving public uses for the neighborhood. The availability of the property presented an opportunity for the City to potentially expand recreational amenities in the neighborhood, consider the development of a community center with meeting space, and explore additional affordable housing opportunities. Later that month, the City Council authorized a letter of interest to the seller to begin negotiations.
280
File #: 25-248 Meeting Date: 4/15/2025
Exhibit 1: 778 Shalimar Drive
Acquisition Process
On November 19, 2024, the City Council approved moving forward with the acquisition of the Property for evaluation of future community-serving public uses. The approval included a Real Estate Purchase Agreement with acquisition terms, including appraisal and inspections, and authorized the City Manager and City Clerk to execute any and all real estate purchase documents, disclosures, escrow paperwork, and further authorized changes, and amendments necessary to execute the agreement.
On December 9, 2024, the City of Costa Mesa executed a purchase agreement with the Property owner, and Escrow was opened on December 10, 2024, signaling the start of a six-month escrow process. Escrow was established as a six-month term in order to allow for tenant relocation.
Relocation of tenants is necessary due to the condition of the units. Staff observed that substantial work would be required to bring the property to code compliance and make the units habitable given the building conditions. City staff determined that should the City acquire the property, the four-unit structure should be unoccupied and demolished while the consideration of the property’sfuture use is determined.
As part of Escrow, the City must comply with certain conditions in order to acquire the Property. One of the conditions precedents is the relocation of existing tenants, for which the City must comply with the Federal Uniform Relocation Assistance and Real Property Acquisition Act, the California Relocation Assistance Act, and other mandated requirements to relocate any existing tenants of the Property, including payment of relocation and moving expenses.
ANALYSIS:
A public entity is required to adopt a Relocation Plan whenever it enters into an agreement for the acquisition of real property which would lead to the displacement of people from their homes.
Federal, State, and local laws and regulations outline the requirements to which public entities must conform when undertaking real property acquisitions and relocation, including but not limited to:
· Federal Uniform Relocation and Real Property Acquisition Policies Act of 1970; · California Code of Regulations, Title 25, Division 1, Chapter 6, Subchapter 1 (Relocation