March 22, 2022
Agenda Item No. 15
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, Community Development Director - 949-644-3232, [email protected] PREPARED BY:
Chelsea Crager, Associate Planner, [email protected] PHONE:
949-644-3227
TITLE:
Resolution Nos. 2022-16 and 2022-20: Land Use Entitlements for the Residences at 1300 Bristol Project (PA2021-161) ABSTRACT:
The applicant is processing several entitlement applications that would allow for the development of a 193-unit apartment building atop a 346-space parking structure. The project is located in the Newport Place Planned Community, and at the northeast corner of Bristol Street North and Spruce Street in the Airport Area. Implementation of the proposed project would require demolition of the existing 33,292-square-foot office building and surface parking within the 1.97-acre site. For the City Council’s consideration is the adoption of two resolutions for environmental clearance and planning applications of which one is for the transfer of development rights from the Uptown Newport Phase 1 Development.
RECOMMENDATION:
a) Conduct a public hearing;
b) Adopt Resolution No. 2022-19, A Resolution of the City Council of the City of Newport Beach, California, Adopting Addendum No. 5 (ER2022-001) to the 2006 General Plan Update Program Environmental Impact Report and 2008-2014 City of Newport Beach Housing Element Update Initial Study/Negative Declaration for the Residences at 1300 Bristol Street Project Located at 1300 North Bristol Street (PA2021-161); and c) Adopt Resolution No. 2022-20, A Resolution of the City Council of the City of Newport Beach, California, Approving Site Development Review No. SD2021-003, Affordable Housing Implementation Plan No. AH2022-001, Traffic Study No. TS2022-001, and Transfer of Development Rights No. TD2022-001 for the Residences at 1300 Bristol Project Located at North 1300 Bristol Street (PA2021-161).
DISCUSSION:
The subject property is located in the Newport Place Planned Community (PC-11) and is approximately 1.97 acres in size. It is rectangular in shape, located at the northeast corner of Bristol Street North and Spruce Street, and adjacent to a surface parking lot utilized by Fletcher Jones Motorcars to the north and east. The subject property is currently improved with a two-story, 33,292-square-foot office building and a surface parking lot.
The applicant, BCD Newport Beach, LLC (The Picerne Group), proposes to demolish the existing office building and associated surface parking and landscaping at the project site and construct 193 residential apartment units atop a 346-space, subterranean parking structure. The base density allotted to the property is 77 units. This density is based on the conversion of the existing 33,292 square feet of office use and is consistent with the Land Use Element of the General Plan. The applicant also proposes a 50 percent increase of the base units in density of 39 units, pursuant to Government Code Section 65915 (Density Bonus Law), and a transfer of development rights of 77 units from the nearby Uptown Newport development at 4311 Jamboree Road, for a total of 193 residential units. The project description and project plans are available as Attachments F and G.
The application consists of the following components:
Major Site Development Review No. SD2021-003: A site development review in accordance with the Newport Place Planned Community and Section 20.52.80 (Site Development Reviews) of the Newport Beach Municipal Code (NBMC), for the construction of the project; Traffic Study No. TS2022-001: A traffic study pursuant to Chapter 15.40 (Traffic Phasing Ordinance) of the NBMC, which is required for projects that generate in excess of 300 new average daily trips; Affordable Housing Implementation Plan No. AH2022-001: A program specifying how the project would meet the City’s affordable housing requirements, in exchange for a request for a 50 percent increase in density and a request for six (6) development standard waivers related to park land dedication, building setbacks, building height, private open space for the studio-size rental units, common open space for the entire project, and overall residential project density, pursuant to NBMC Chapter 20.32 (Density Bonus) and Government Code Section 65915 (Density Bonus Law). Additionally, the Applicant also seeks two (2) development concessions related to the mix of affordable units and park in-lieu fee payment; Transfer of Development Rights No. TD2022-001: A transfer of development rights for transferring 77 residential dwelling units from the Uptown Newport Phase 1 Development located at 4311 Jamboree Road to the subject site, pursuant to NBMC Chapter 20.46 (Transfer of Development Rights); and Addendum No. 5 (ER2022-001) to the 2006 General Plan Update Program Environmental Impact Report No. ER2022-001 and the 2008-2014 City of Newport Beach Housing Element Initial Study/Negative Declaration: Pursuant to the California Environmental Quality Act (CEQA), the addendum was prepared to address environmental impacts resulting from the proposed development.
Residential Development
The proposed rectangular-shaped, multiple-unit residential building is designed as a “podium style” structure that consists of five stories over one level of on-grade parking and two levels of below grade parking. The project would be 78 feet in height and is designed with a contemporary modern architectural style, intended to be reflective of the surrounding office setting, according to the applicant.
The 193 rental units include 25 studio units, 89 one-bedroom units, and 79 two-bedroom units. The studios would be 515 square feet. The one-bedroom units would range from 613 to 848 square feet, and the two-bedroom units would range from 1,000 to 1,300 square feet in size.
Of the 193 rental units, 24 units would be affordable and restricted to lower income households (12 units for very-low-income households and 12 units for low-income households). The remaining 169 units would be market-rate rental units. The proposed unit mix for the affordable units is 10 studio units, 12 one-bedroom units, and two two-bedroom units. The affordable units would consist of the same size and amenities as the market-rate units and would be distributed throughout the project.
The demolition and construction activities for the proposed project will be done in two continuous phases, over an approximate 28-month period.
Airport Area General Plan Policies Consistency
The subject property is located in the Airport Area and has a General Plan Land Use Element designation of Mixed-Use Horizontal 2 (MU-H2), which provides for a horizontal intermixing of uses that may include regional commercial office, multifamily residential, vertical mixed-use buildings, industrial, hotel rooms, and ancillary neighborhood commercial uses. The MU-H2 designation applies to a majority of properties in the Airport Area outside the higher noise levels from John Wayne Airport. The MU-H2 allows a maximum of 2,200 residential units as replacement of existing office, retail, and/or industrial uses at a maximum density of 50 units per net acre. Any eligible density bonus allowed by Government Code Section 65915 (State density bonus law) is not included in the 2,200 allowance or the 50 dwelling units per acre standard. Of 2,200 units, a total of 550 units are identified as additive units, meaning they are not replacement units that would replace existing development. These 550 units may be constructed as “infill” on existing surface parking lots or areas not used as occupiable buildings on properties within the Conceptual Development Plan Area (CDPA) located east of MacArthur Boulevard, as depicted on Figure LU22 Airport Business Area of the Land Use Element. These units have been since allocated to the Uptown Newport and Residences at 4400 Von Karman developments. The remaining 1,650 units are allocated as replacement units, meaning they replace existing uses based upon traffic trip generation. Residential units approved, proposed and remaining within the MU-H2 designation of the Airport Business Area are listed in the table below.
Airport Area Residential Units
Residential Development Allocation
Base Units
Density Bonus Units
Project Totals with Density
Bonus
Replacement Units
Additive Units
Transferred Units
Total Units
General Plan Unit Limit (MU-H2)
1,650
550
0 2,200
Approved Projects
Uptown Newport
632
290
-77
845
322
1,167
Newport Crossings
259
0 0
259
91 350
Newport Airport Village
329
0 0
329
115
444
Residences at 4400 Von Karman
260
0 260
52 312
Projects Under Review
Residences at 1300 Bristol
77 0
+77
154
39 193
Remaining Development Allocation
353
0 353
The subject property has 33,292 square feet of existing office use, and is consistent with the development limit per Anomaly No. 17 of the General Plan Land Use Element. By using the City’s adopted land use conversion factors for the Airport Business Area to maintain traffic trip neutrality, the applicant can replace the existing office development with a maximum of 77 residential units. An additional 39 units (50 percent) are requested as density bonus units authorized by the Density Bonus Law. Lastly, the remaining 77 units are being transferred from the Uptown Newport Phase 1 development, pursuant to NBMC Chapter 20.49 (Transfer of Development Rights).
The General Plan contains a number of policies that provide for the orderly evolution of the Airport Area, from a business park, to a mixed-use district with cohesive residential villages integrated within the existing fabric of office, industrial, retail, and airport-related businesses. The Planning Commission Resolution No. PC2022-003 (Attachment No. E) includes facts in support of a finding of consistency of relevant Airport Area policies. Furthermore, the EIR Addendum includes a comprehensive analysis of all relevant General Plan policies. The project, as proposed, is consistent with all relevant General Plan policies.
Newport Place Planned Community (Zoning Code) Consistency The property is located within Residential Overlay of the Newport Place Planned Community (PC11) General Commercial Site 4. The Residential Overlay allows for multiple residential development as a stand-alone use provided a residential project includes a minimum 30 percent of the base density for lower income households. The proposed project provides this minimum number of affordable units (77-unit base density X 30% = 23.1 ~ 24 units will be included). The Residential Overlay also contains development standards for multiple residential development, including density, height, setbacks, parking, signage, airport noise compatibility, amenities, and landscaping. Although the project includes waivers or reductions of six development standards, the overall intent of providing residential opportunities in the Newport Place Planned Community, consistent with the MU-H2 Land Use designation has been met.
Site Development Review
A Site Development Review application is required for multiple residential development projects, pursuant to the Residential Overlay of PC 11 and consistent with NBMC Section 20.52.080 (Site Development Review). The required findings ensure the proposal is a quality project that is consistent with the General Plan policies, compatible with physical characteristics of the site and surroundings, and reduces or minimizes potential negative impacts. The site development review application ensures the project will be implemented consistent with the development standards established in the Residential Overlay of PC 11.
Traffic Phasing Ordinance
A traffic study has been prepared, under the supervision of the City Traffic Engineer, pursuant to the Traffic Phasing Ordinance (TPO) and its implementing guidelines. Additionally, the traffic study includes a vehicle miles traveled (VMT) analysis for only informational purposes. The analysis concludes that there is no significant impact as the project will neither cause nor make worse an unsatisfactory level of service at all studied intersections. All these intersections are forecasted to continue to operate at acceptable levels of service.
Affordable Housing Implementation Plan
The proposed Affordable Housing Implementation Plan (AHIP) illustrates compliance with the affordable housing requirements of the density bonus allowances. Consistent with the affordable housing requirements of the Residential Overlay, 30 percent or 24 units of the project’s 77 base apartment units would be set aside as affordable units to low-income households. Of the 24 affordable units provided, 12 units would be set aside for very low-income households for a minimum of 55 years, consistent with the Density Bonus Law, and 12 units would be set aside for low-income households for a minimum of 30 years, consistent with the requirements of the Newport Place Planned Community.
As encouraged by the Residential Overlay, and as authorized pursuant to Government Code Section 65915-65918 (Density Bonus Law), with the 30 percent allocation for low-income households, the project is entitled to a maximum density bonus of 50 percent (39 units) above the maximum number of units allowed by the General Plan. In addition to the 39 density bonus units, pursuant to Government Code Section 65915(d)(1), the project is eligible to request up to three incentives or concessions that would result in identifiable, financially sufficient, and actual cost reductions. Government Code Section 65915(e)(1) also entitles developers to waivers or modifications of development standards that, if applied, would physically preclude development of housing with the provided density bonus. The proposed project includes a request for two development incentives and a waiver of six development standards as follows.
Incentive Requests
1. Affordable Unit Mix - NBMC Section 20.32.070 requires affordable units in a density bonus project reflect the same range of unit types in the residential development as a whole. The project provides a higher percentage of affordable studio units and fewer affordable two-bedroom units compared to the market rate units provided. Granting this incentive will result in identifiable, financially sufficient, and actual project cost reductions by reducing the long-term rental subsidy costs associated with the two-bedroom units and thereby affording additional rental income for the project ensuring financial feasibility. This incentive is not a direct financial contribution to the Applicant, and is therefore a mandatory concession.
2. Park In-lieu Fee Payment – General Plan Policy LU 6.15.13 requires the dedication and improvement of a neighborhood park; however, this requirement may be waived where it can be demonstrated that the development site is too small to feasibly accommodate the park or is inappropriately located to serve the needs of nearby residents. Policy LU6.15.13 also requires the payment of an in-lieu fee to the City for the acquisition and improvement of other properties as parklands to serve the airport area if the neighborhood park dedication is waived. In this case, the project site is too small to feasibly accommodate the park and the applicant requests a waiver of the in-lieu fee as a non-mandatory concession. The estimated value of this park in-lieu fee waiver is approximately $4.12 million, including land value and estimated cost to improve a neighborhood park. This waiver of an in-lieu fee is an actual cost reduction that makes the development of the housing units financially feasible and staff supports a recommendation to the City Council to approve the fee waiver.
It should be noted that the 77 units transferred from the Uptown Newport Development will be subject to park in-lieu fees as required by the Uptown Newport Development Agreement and waiving this fee is not included in the applicant’s incentive request. The payment of the park in-lieu fees associated with the 77-transferred units will be used to improve nearby parks pursuant to City Council B-1 (Park Fee Policy) to help offset the project’s incremental impact on park usage. These fees are subject to interest charges and CPI adjustments annually. The estimated total park fee, including interest charges, for the 77 units is approximately $2 million. The estimated total public benefit fee for the 77 units is approximately $3 million.
Development Standard Waiver Requests
In addition to the density bonus units and financial concessions, the project is entitled to receive waivers or reductions of development standards if they would physically prevent the project from being built at the permitted density. In this case, the project applicant requests a waiver of the following six development standards, described in greater detail in the February 17, 2022 Planning Commission staff report (Attachment C):
1. Park Dedication Requirement
2. Street Setbacks
3. Building Height
4. Private Open Space
5. Residential Density
6. Common Open Space
Transfer of Development Rights
The project includes a transfer of development rights, pursuant to General Plan Land Use Element Policy LU4.3 and NBMC Chapter 20.46 (Transfer of Development Rights), for transferring 77 unbuilt residential units from Phase 1 of the Uptown Newport project at 4311 Jamboree Road to the project site at 1300 Bristol Street.
Pursuant to Uptown Newport Development Agreement No. DA2012-003 (DA), Uptown Newport is entitled for up to 1,244 residential units developed to be built in two separate phases with a maximum of 680 units in Phase 1 and 564 units in Phase 2. Phase 1 of the development is nearing completion, with 548 units constructed, under construction, or under entitlement review, which leaves a total of 132 (680-548) unbuilt units. The reduction of 77 unbuilt units from the Uptown Newport development will be reflected in the Phase 1 development and the remaining 55 (132-77) unbuilt units in this phase will be automatically transferred to Phase 2 for future development.
The 77-transferred units will be subject to a park in-lieu fee and a public benefit fee pursuant to the terms and conditions of the Uptown Newport DA. The use of park in-lieu fees is subject to City Council Policy B-1 (Park Fee Policy). The use of public impact fees is subject to the discretion of City Council. The applicant is responsible for the payment of these fees upon issuance of a building permit.
Planning Commission Review and Recommendation
On February 17, 2022, the Planning Commission conducted a duly noticed public hearing to consider the requested applications. The Planning Commission discussed the overall project’s components, including parking requirements, private balconies, and Spruce Street pull-off area. Two members of the public addressed the Planning Commission regarding the request. At the conclusion of the public hearing, the Planning Commission voted to adopt Resolution No. PC2022-003, recommending the City Council approve the project. The Planning Commission staff report, meeting minutes, and resolution are attached for reference as Attachment Nos. C, D, and F.
FISCAL IMPACT:
The applicant is required to reimburse the City for all costs associated with the review of the application, and to pay the following fees related to the 77-transferred units from Uptown Newport Planned Community: the public safety fee of approximately $123,000, the park in-lieu fee of approximately $2 million and the public benefit fee of approximately $3 million.
ENVIRONMENTAL REVIEW:
As the proposed project is within the allowable residential land use and density in the General Plan, Environmental Impact Report Addendum No. ER2022-001 has been prepared for the project in compliance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and City Council Policy K-3.
On the basis of the entire environmental review record, the project (inclusive of recommended conditions of approval) will not result in any new significant impacts that were not previously analyzed in the Program Environmental Impact Report for the General Plan 2006 Update (SCH No. 2006011119) and the 2008-2014 Housing Element Update Initial Study/Negative Declaration (together referenced as PEIR). The potential impacts associated with this project would either be the same or less than those described in the PEIR that have been appropriately mitigated. In addition, there are no substantial changes to the circumstances under which the project would be undertaken that would result in new or more severe environmental impacts than previously addressed in the PEIR, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified.
Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental document for the Project.
The entire Addendum and its technical appendixes are available online at the City’s website at: www.newportbeachca.gov/ceqa.
NOTICING:
Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways), including the applicant and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Newport Beach Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website).
ATTACHMENTS:
Attachment A – Resolution No. 2022-19 to Adopt ER2022-001 Attachment B – Resolution No. 2022-20 to Approve SD2021-003, AH2022-001, TS2022-001, and TD2022-001
Attachment C – Planning Commission Staff Report, Dated February 17, 2022 (without Attachments)
Attachment D – Planning Commission Minute Excerpts, Dated February 17, 2022 Attachment E – Planning Commission Resolution No. 2022-003 Attachment F – Project Description
Attachment G – Project Plans
Attachment H – Correspondence
15-3
15-1
Resolution Nos. 2022-16 and 2022-20: Land Use Entitlements for the Residences at 1300 Bristol Project (PA2021-161) March 22, 2022
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