May 24, 2022
Agenda Item No. 6
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Sean Levin, Interim Recreation and Senior Services Director - 949-644-3159, [email protected] PREPARED BY:
Justin Schmillen, Recreation and Senior Services Manager [email protected]
PHONE:
949-644-3160
TITLE:
Lease Agreement with Newport Ridge Community Association to Develop, Operate and Maintain Pickleball Courts at Newport Ridge Park ABSTRACT:
The sport of pickleball has grown in popularity in Newport Beach and around the country in recent years. The City of Newport Beach (City) has four pickleball courts for public use and due to the increase in demand from residents, an opportunity to add a new pickleball courts complex has been identified at Newport Ridge Park. Following the City Council’s November 2021 approval of authorization to apply for grant funds from the State of California for park development, a lease agreement was negotiated with Newport Ridge Community Association (NRCA), and is submitted for the City Council’s consideration. The lease will allow the City to use a portion of Newport Ridge Park to develop eight pickleball courts, with six courts maintained and operated by the City to meet the public demand for more courts, and the remaining two courts to be maintained and operated by NRCA.
RECOMMENDATION:
a) Determine this project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 and 15303 under Class 1 (Existing Facilitates) and Class 3 (New Construction or Conversion of Small Structures), respectively, of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. The exceptions to the Class 3 categorical exemption under Section 15300.2 are not applicable; b) Authorize the City Manager and City Clerk to execute a 30-year Lease Agreement by and between the Newport Ridge Community Association and the City of Newport Beach for the Development, Operation, and Maintenance of Pickleball Courts Complex at Newport Ridge Park (Lease) (Attachment A), in a form substantially similar to the agreement prepared by the City Attorney; and c) Review and approve the Conceptual Design (Attachment B) and direct staff to proceed with final construction documents.
DISCUSSION:
Pickleball continues to rise in popularity among Newport Beach residents, maintaining its reputation as one of the fastest growing sports in the country. In fall 2017, the City constructed four dedicated Pickleball courts at Bonita Canyon Sports Park Field #6 to meet the community need and growing interest in the sport. As the sport continues to gain momentum as a mainstream recreational activity, the outdoor courts at Bonita Canyon Sports Park have become heavily impacted and do not meet the increasing demand for available court time. Adding new courts in the City would fulfill the public need for more open court times and could also support recreational programs such as league play, group/private lessons, and tournaments for all skill levels and ages.
NRCA approached the City to partner in the development of pickleball courts at Newport Ridge Park, a 11.32-acre private park site located at 6331 Newport Ridge Drive in the Newport Coast area of the city. The park is owned and managed by NRCA, the homeowner’s association for the Newport Ridge housing development, and presents itself as the most viable park location in the City that meets important site conditions:
1. Distanced from homes to diminish noise impact from pickleball play.
2. Existing parking that is sufficient to support the new recreational amenity.
3. Does not displace or impact any existing recreational programs.
Project Design
In June 2021, the Parks, Beaches & Recreation Commission (PBR) appointed three commissioners to serve on the Newport Ridge Park Pickleball Courts Ad Hoc Committee to assist with conceptual design and community outreach. The Ad Hoc Committee, NRCA Board Members, the Recreation & Senior Services Department, and the Public Works Department have worked collectively to develop plans for the eight unlit courts, which will be located along the eastern edge of the park, adjacent to the City-owned Newport Coast Community Center parking lot, and other various associated site amenities.
All of the courts are designed to USA Pickleball Association (USAPA) specifications and the site will be furnished with shaded viewing areas, benches, trash cans, a bike rack and a bottle filling station. The two northern most courts will be fitted with a key fob system for NRCA resident access. The existing Newport Coast Community Center parking lot (120 spots) and restrooms will be utilized to support public use of the site. NRCA Pickleball players will access the courts by utilizing the community association parking lot and restrooms along the western edge of the park. The closest home to the proposed pickleball courts is approximately 340 feet away and located on the opposite side of San Joaquin Hills Road, south of the courts. The closest home east of the courts is approximately 650 feet away and the closest home on the west side is over 670 feet away, and both are elevated significantly higher than the park. Undeveloped open space and Highway 73 provide over a mile buffer from homes to the north.
In December 2021, the Conceptual Designs included in Attachment B were presented to PBR and the Commission voted to approve and forward design plans to City Council for final approval.
On March 31, 2022, NRCA Board of Directors notified their membership about the project, including the design parameters and received no opposition to the project. A copy of the notice is included as Attachment C.
Project Costs
Preliminary design and construction estimates are projected to be $1,000,000 and funds are included in the FY 2021-2022 Capital Improvement Project budget. The City of Newport Beach has also been awarded Per Capita and Urban County Per Capita Grant Funds in the amount of $177,952 and $53,284, respectively, and the grant funds are committed to the development of pickleball courts at Newport Ridge Park, and were previously approved by Council in November 2021 (Attachment D) and will supplement the budgeted CIP funds.
Project Entitlements
On April 29, 2022, pursuant to PA2022-091 (Attachment E), the Community Development Director approved Staff Approval No. SA2022-003, allowing conversion of a portion of an existing baseball field into eight outdoor pickleball courts, finding the proposed development is consistent with all applicable provisions of the zoning code, does not change the total square footage or operational characteristics of Newport Ridge Park, and provides new park amenities with portions designated for public use.
Previously, the County of Orange authorized Newport Ridge Park under Site Development Permit No. PA95-0043 before the property's annexation into the City of Newport Beach in 2000. The Site Development Permit allowed the development of a local park and related park amenities. Condition of Approval No. 3 in PA95-0043 authorizes changes to the approved plan, including location and alteration of any use or structures, provided the change complies with the provisions and spirit and intent of the approval action and that the action would have been the same for the changed plan as the approved plat plan. In this case, the proposed change involves altering an existing baseball field to accommodate eight pickleball courts. Pickleball is an increasingly popular sport and is a common recreational amenity in parks today. A pickleball court could have been part of the original plan based on the sport's current popularity. As a result, altering the existing baseball field to accommodate pickleball courts complies with the original approval's provisions, intent, and spirit.
Lease Agreement
Following is a summary of the proposed Lease terms:
The initial term is 30 years, with two automatic five-year options to extend, unless not renewed by the City, or terminated earlier as provided by the Lease.
In consideration of the City’s use of the land, the City will fund design and construction for eight courts and maintain and operate six courts for public use, with dedicated use of the two remaining courts for NRCA.
NRCA may, by following the standard application process and payment of fees, obtain a Special Event Permit to reserve the City’s public courts for special events.
City may, with no less than 90 days prior written notice, reserve the NRCA courts for public events. City events may not exceed two per quarter or 16 days in a 12-month period.
Each party is responsible for the regular cleaning, maintenance and repair of their respective courts.
City shall be responsible for maintenance, repair and/or replacement of the playing surfaces, fencing, windscreens, and the outer improvements of the pickleball courts complex like the immediately adjacent sidewalk and landscaping.
After the City’s initial installation, NRCA shall be responsible for the ongoing utility service costs for the courts.
City has a first right of refusal to purchase the property should NRCA decide to transfer its ownership of the property.
NRCA shall be responsible for any property taxes levied or assessed against the property, including any changes in value resulting from the project.
If the Lease is terminated early, NRCA shall reimburse the City for a prorated amount of the cost of the improvements, based on a 30-year amortization schedule.
Construction must commence before December 31, 2023, and must be completed by December 31, 2024.
The Lease has been reviewed by the City Attorney’s Office and has been approved as to form. NRCA has agreed to the terms of the Lease and executed the document.
FISCAL IMPACT:
The adopted Capital Improvement Program includes sufficient funding for the project and is in the Facilities Financing Plan. Fund sources are General Fund and State grant funds and will be expensed to the Newport Coast Pickleball Courts Project in the Adopted FY 2021-2022 CIP Budget Account No. 56201-980000-22P13.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 and 15303 under Class 1 (Existing Facilitates) and Class 3 (New Construction or Conversion of Small Structures), respectively, of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Class 3 exempts new commercial construction of less than 10,000 square feet in floor area, if zoned for such use, if not involving the use of significant amounts of hazardous substances where all necessary public services and facilities are available and the surrounding area is not environmentally sensitive. The project includes an agreement and conceptual approval to alter an existing baseball field with eight (8) pickleball courts at an existing park and thus the project is categorically exempt from CEQA.
The exceptions to the Class 3 categorical exemption under Section 15300.2 are not applicable. The developed project site does not impact an environmental resource of hazardous or critical concern, does not result in cumulative impacts, does not have a significant effect on the environment due to unusual circumstances, does not damage scenic resources within a state scenic highway, is not a hazardous waste site, and is not identified as a historical resource.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Lease Agreement
Attachment B – Conceptual Design
Attachment C – Newport Ridge Community Association March 31, 2022 Notice Attachment D – Resolution No. 2021-108
Attachment E – PA2022-091 CDD Action Letter
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Lease Agreement with Newport Ridge Community Association to Develop, Operate, and Maintain Pickleball Courts at Newport Ridge Park May 24, 2022
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