Attachment F
Planning Commission Resolution No. 2025-006 (No Exhibits) 23-175
RESOLUTION NO. PC2025-006
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING CITY
COUNCIL ADOPTION OF A PLANNED COMMUNITY
DEVELOPMENT PLAN AMENDMENT, DEVELOPMENT
AGREEMENT AMENDMENT, AFFORDABLE HOUSING
IMPLEMENTATION PLAN, AND WATER SUPPLY ASSESSMENT
TO ALLOCATE 1,500 BASE DWELLING UNITS FROM THE HO-
4 (NEWPORT CENTER) SUBAREA DEVELOPMENT LIMITS SET
FORTH IN SECTION 20.28.050 (HOUSING OPPORTUNITY (HO)
OVERLAY ZONING DISTRICTS) OF THE NEWPORT BEACH
MUNICIPAL CODE TO THE NORTH NEWPORT CENTER
PLANNED COMMUNITY (PC-56) DEVELOPMENT PLAN FOR 100
AND 190 NEWPORT CENTER DRIVE ALONG WITH VARIOUS
ADDRESSES WITHIN THE NORTH NEWPORT CENTER
PLANNED COMMUNITY (PA2024-0173)
THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1. On September 24, 2024, the City of Newport Beach (“City”) City Council adopted Ordinance Nos. 2024-16 and 2024-17, approving amendments to Title 20 (Planning and Zoning) of the Newport Beach Municipal Code (“NBMC”), to establish the Housing Opportunity (HO) Overlay Zoning Districts in Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) (“Housing Overlay”) and to create multi -unit objective design standards in Section 20.48.185 (Multi-Unit Objective Design Standards). The new sections serve to implement Policy Actions 1A through 1G and 3A in the 6 th Cycle Housing Element
("Housing Element") of the General Plan.
2. Section 20.28.050 of the NBMC allows for new housing opportunities within five subareas to ensure the City can accommodate its 6
th Cycle Regional Housing Needs Assessment
(“RHNA”) allocation. These subareas correspond to the Focus Areas identified in the Housing Element and are as follows: Airport Area Environs Area (HO-1), West Newport Mesa Area (HO-2), Dover-Westcliff Area (HO-3), Newport Center Area (HO-4), and Coyote Canyon Area (HO-5). Properties identified within these subareas are eligible for specified development allowances conducive to residential development at the prescribed average density of 20 to 50 dwelling units per acre. The standards include but are not limited to minimum lot area, setbacks, height, open space, landscaping, and parking. Each of the five subareas is also subject to a base density development limit. For the HO-4 Subarea, the development limit is 2,439 units.
3. A n application was filed by The Irvine Company (“Applicant”) concerning properties located at 100 and 190 Newport Center Drive and within the North Newport Center Planned Community (PC-56) Zoning District (“PC-56 Development Plan”), as described in Exhibit Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-176
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“A” (“Properties”), which is attached hereto and incorporated herein by reference, requesting approval of amendments to the PC-56 Development Plan.
4. The Applicant maintains ownership interest and control over several properties within the HO-4 Subarea and requests the following approvals (collectively, the “Project”):
• Amendments to the PC -56 Development Plan (“PC-56 Amendment”) to allocate 1,500 of the 2,439 dwelling units from the development limit identified in Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) of the NBMC for the HO-4 Subarea to the Properties within the PC-56 Development Plan.
Other amendments include increasing building height limits for Fashion Island, Block 100, and San Joaquin Plaza, modifying open space requirements, incorporating additional objective design standards, modifying parking standards for residential, updating sign standards, and other minor text changes. Lastly, the amendments change the zoning of 100 and 190 Newport Center Drive from OR (Office-Regional) to PC-56 Development Plan. No construction is proposed at this time;
• Development Agreement (“DA”) Amendment (“Third Amendment to DA”) between the City and the Applicant to vest development rights for 1,500 dwelling units created by the HO -4 Subarea in exchange for to -be-determined public benefits. The existing DA includes an Affordable Housing Implementation Plan, which will be supplemented as part of the project to help ensure there is a commitment to furthering affordable housing production;
• Affordable Housing Implementation Plan (“AHIP”) that specifies how the Applicant will assist the City in furthering the production of affordable housing; and
• Water Supply Assessment (“WSA”) to evaluate the water supply availability for a project including more than 500 dwelling units pursuant to Section 21151.9 of the Public Resources Code (“PRC”) and Section 10910 et seq. of the Water Code and as contemplated in the City’s Housing Implementation Program Final Program Environmental Impact Report (“EIR”).
5. The Properties are categorized as MU-H3 (Mixed Use Horizontal), CO -R (Commercial Regional Office), CR (Regional Commercial), RM (Multiple Residential), OS (Open Space), CO-M (Medical Commercial Office) by the General Plan Land Use Element and are either located within the PC-56 Zoning District with the properties at 100 and 190 Newport Center Drive categorized as the OR (Office-Regional) Zoning District.
6. The Properties are not located within the coastal zone.
7. A public hearing was held on March 6, 2025, in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of the time, place, and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. (“Ralph M. Brown Act”) and Chapter 20.62 (Public Hearings), and Section 15.45.050 (Public Hearing-Notice) of the Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-177
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NBMC. Evidence, both written and oral, was presented to and considered by, the Planning Commission at this hearing.
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
1. Pursuant to the California Environmental Quality Act (“CEQA”) as set forth in California Public Resources Code Section 21000 et seq. and its implementing guidelines set forth in California Code of Regulations, Title 14, Division 6, Chapter 3 (“CEQA Guidelines”), the City Council adopted Resolution No. 2024-50 on July 23, 2024, certifying Final Program Environmental Impact Report SCH No. 2023060699 ("PEIR"), approving a Mitigation Monitoring and Reporting Program ("MMRP"), and adopting Findings and a Statement of Overriding Considerations related to the implementation of the Housing Element involving amendments to the General Plan, Coastal Land Use Plan, and Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the NBMC which are available at: Housing Implementation Program EIR.
2. The Project is not subject to further environmental review pursuant to Section 21083.3 of the PRC and Section 15183 of the CEQA Guidelines because, inasmuch as the Properties involved are all within the HO -4 Subarea, t he Project does not change the underlying land use or zoning designations; and would not result in new significant impacts or a substantial more adverse impact than addressed in the PEIR.
3. Section 15183 of the CEQA Guidelines provides, in relevant part:
a. P rojects which are consistent with the development density established by existing zoning, community plan, or general plan policies for which an EIR was certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site. This streamlines the review of such projects and reduces the need to prepare repetitive environmental studies.
b. In approving a project meeting the requirements of this section, a public agency shall limit its examination of environmental effects to those which the agency determines, in an initial study or other analysis:
i. Are peculiar to the project or the parcel on which the project would be located;
ii. Were not analyzed as significant effects in a prior EIR on the zoning action, general plan, or community plan, with which the project is consistent;
iii. Are potentially significant off-site impacts and cumulative impacts which were not discussed in the prior EIR prepared for the general plan, community plan or zoning action; or
iv. Are previously identified significant effects which, as a result of substantial new information which was not known at the time the EIR was certified, are Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-178
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determined to have a more severe adverse impact than discussed in the prior EIR.
c. If an impact is not peculiar to the parcel or to the project, has been addressed as a significant effect in the prior EIR, or can be substantially mitigated by the imposition of uniformly applied development policies or standards, as contemplated by subdivision (e) below, then an additional EIR need not be prepared for the project solely on the basis of that impact.
d. This section shall apply only to projects which meet the following conditions:
i. The project is consistent with:
A. A community plan adopted as part of a general plan;
B. A zoning action which zoned or designated the parcel on which the project would be located to accommodate a particular density of development; or
C. A general plan of a local agency; and
ii. An EIR was certified by the lead agency for the zoning action, the community plan, or the general plan.
4. As part of its decision -making process, the City is required to review and consider whether the Project would create new significant impacts or significant impacts that would be substantially more severe than those disclosed in the PEIR. Additional CEQA review is only triggered if the Project’s new significant impacts or impacts that are more severe than those disclosed in PEIR such that major revisions to the PEIR would be required. A detailed consistency analysis has been prepared by T & B Planning Inc., dated February, 2025, and peer reviewed by Kimley-Horn & Associates, Inc., is attached hereto as Exhibit “B,” and incorporated herein by reference.
5. T he PEIR contemplated those future projects meeting the thresholds of Senate Bill No. 610 (“SB 610”) would require the preparation of a WSA. As evidence of the Project’s compliance with the PEIR and Section 15183 of the CEQA Guidelines, a WSA has been prepared for the Project. Although the PEIR concluded that there would be a potentially significant and unavoidable impact related to water supply for which the City adopted a Statement of Overriding Considerations, the Project specific WSA concluded that adequate and reliable water supplies are and will be available to serve units that are developed through this Project for at least the next 20 years.
6. Although the Project includes a zoning amendment to change the designation of 100 and 190 Newport Center Drive from the OR Zoning District to the PC-56 Zoning District, these properties were already identified in the HO -4 Subarea of the Housing Overlay , which would not change as part of the Project. Therefore, the analysis contained in the PEIR would remain applicable to those two sites and the Project would be consistent Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-179
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with the existing zoning that allows 20 to 50 dwelling units per acre of residential development.
7. The Project is consistent with the development density and use characteristics established by the City ’s General Plan Housing Implementation Program as analyzed by the PEIR, and the required determinations can be made, as detailed in Exhibit “B.” Therefore, in accordance with Section 21083.3 of the PRC and Section 15183 of the CEQA Guidelines, no additional environmental review is required to approve the Project.
The Planning Commission determines:
a. The Project is consistent with the development density of 20 to 50 dwelling units per acre established by existing zoning and general plan policies for which the PEIR was certified;
b. There are no significant environmental effects that are peculiar to the Project or the parcels on which the Project would be located;
c. There are no significant environmental effects of the Project that were not analyzed as significant effects in the PEIR;
d. There are no potentially significant off-site impacts or cumulative impacts which were not discussed in the PEIR; and
e. There are no previously identified significant effects which, as a result of substantial new information which was not known at the time the P EIR was certified, are determined to have a more severe adverse impact than discussed in the prior PEIR.
8. The Planning Commission finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges.
As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger.
SECTION 3. REQUIRED FINDINGS.
Planned Community D
evelopment Plan Amendment
An amendment to the North Newport Center Planned Community (PC-56) Development Plan is a zoning amendment and legislative act. Neither Chapters 20.56 (Planned Community District Procedures) and 20.66 (Amendments) of the NBMC, the North Newport Center Planned Community ( PC-56) Development Plan, nor California Government Code Section 65000 et seq., set forth any required findings for approval of such amendments. However, the PC-56 Amendment complies with the aforementioned based on the following findings:
Findings and Facts in Support of Finding:
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1. The Properties are in Newport Center, which includes a mixture of entertainment, major retail, recreation, professional offices, and residential development . T he Project’s proposal to allocate dwelling units to sites already within the HO -4 (Newport Center) Subarea of the Housing Overlay would not disrupt the existing uses within the PC -56 Development Plan. Instead, it would serve to add to the diversity of uses helping to activate an urban core in Newport Center while assisting the City in larger scale community planning and the provision of additional housing opportunities. Newport Center is an established, urban area of the city with significant amenities and services that can support the development of additional residential uses.
2. Although properties identified as Housing Overlay sites in Section 20.80.020 (Housing Opportunity Overlay Zoning District Maps) of the NBMC are subject to the standards set forth therein, the PC-56 Amendment to incorporat e the dwelling units into the PC-56 Development Plan would require its future residential development be subject to its development standards, not the development standards set forth in Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts). As such, future residential projects would be subject to the appropriate site and project specific setbacks, parking, and height limits for this urban location. Incorporation of these dwelling units into the existing PC-56 Development Plan allows for planning on a larger scale that will account for context and ensure the units are cohesively incorporated into a larger plan for the HO-4 Subarea. Proposed text revisions to the PC-56 Development Plan are set forth in Exhibit “C,” which is attached hereto and incorporated herein by reference.
3. Similarly, projects located within the Housing Overlay are subject to Section 20.48.185 (Multi-Unit Objective Design Standards) of the NBMC , which are intended provide for quality design of multi-unit residential and mixed-use development that build on context, contribute to the public realm and provide high quality and resilient buildings and public spaces. These standards apply to both market rate and affordable multi -unit development consisting of at least 20 dwelling units per acre. The existing PC-56 Development Plan includes design standards to ensure high quality design; however, additional objective design standards have been incorporated that are commensurate with the standards identified in the NBMC. For example, the PC-56 Amendment includes standards for general design, parking lots and structures, landscaping, common open space, recreation amenities, and private streets. These design standards would apply to both market rate and affordable multi -unit developments. The existing PC -56 Development Plan encompasses approximately 170 acres of land, which allows for larger scale planning efforts that are sensitive to context and provide for a robust, aesthetically pleasing, and functional public realm.
4. The PC-56 A mendment also includes changes to the existing private open space requirements for residential. The existing PC -56 Development Plan requires at least 50% of all dwelling units to provide private open space in the form of a patio, balcony, or similar feature, where the proposed PC would require at least 25% of dwelling units to provide private open space. No changes are proposed to the existing common open space requirements; however, the PC-56 Amendment includes a new requirement for “Recreation Amenities” to serve future residential project s. The new recreation Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-181
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amenities could include a clubhouse or lounge, a swimming pool, sport courts, or other similar amenities. Reducing the private open space that is required on a per unit basis would allow for larger, more functional communal and recreational outdoor spaces that will serve the future residents and encourage community activity.
5. The PC-56 A mendment would provide for a streamlined review of future residential development projects by the Community Development Director pursuant to Section IV - Planned Community Development Plan Administration of the existing PC-56 Development Plan. Compliance with both the PC-56 Development Plan and amended DA would ensure that the appropriate technical studies and other supporting documents are completed.
6. The PC-56 Amendment would modify existing standards for properties in Blocks that are fully developed and do not support any natural resources. No changes are proposed to properties that are designat ed for open space by the General Plan. All potential environmental impacts associated with the Project are appropriately addressed through compliance with standard building permit procedures, conditions of approval, and the PEIR, as discussed in Exhibit “B.”
7. The proposed changes to height for Fashion Island, Block 100, and San Joaquin Plaza in the PC-56 Development Plan would be consistent with the continued trend of urbanization in Newport Center that has occurred over the last several decades. The revised building heights would allow for future residential projects to meet the minimum density of 20 dwelling units that is required , while retaining open areas to increase walkability and activate the urban core of Newport Center. The proposed height increases are consistent with the original vision of Newport Center to allow taller buildings around the top (northeast) and center of Newport Center, with lower buildings following the topography and stepping down towards East Coast Highway . The proposed changes to height of buildings in the PC-56 Development Plan would be subject to review by the Airport Land Use Commission to ensure the changes are consistent with the County of Orange Airport Environs Land Use Plan for John Wayne Airport. Additionally, the proposed amendments would not impact the existing Newport Center Sight Plane, as established By Ordinance Nos. 1371, 1596, and 83- 27, which maintain residential views across the southeastern portion of Newport Center.
8. The PC-56 A mendment includes changes to signs to allow larger signs that are generally consistent with approved sign programs in Newport Center. The proposed sign standards are appropriate for the future development of housing and for the scale of Newport Center and its wide streets . Changes are also proposed to remove theater signs as a specific sign type, and the incorporation of a new digital sign type. Although the new sign type would include a digital display, the existing PC-56 Development Plan prohibits the establishment of any signs that are visible from the public right of way and include flashing, animation, blinking, strobing, or other effects that could impact safety for motorists and cyclists.
9. The PC-56 Amendment changes residential parking to 1.1 parking spaces per bedroom, inclusive of guest parking, including one covered space per unit with s tudio units Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-182
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counting as one bedroom. This is compared to the current parking requirement in the PC-56 Development Plan of two spaces per unit including one covered; plus 0.5 spaces per unit up to 50 units, then 0.25 spaces per unit thereafter for guest parking. As a comparison, the NBMC requires parking for residential (rental) units based on the number of bedrooms, ranging from 1.1 parking spaces per dwelling unit for studios up to two parking spaces for three-bedroom apartments. Visitor (guest) parking is required at a rate of 0.3 parking spaces per dwelling unit. In the NBMC, parking requirements for residential (ownership) units are similar to the rental rate, but slightly higher. Therefore, the proposed PC-56 Development Plan is generally consistent with the City’s standards for parking.
10. The Project is consistent with the City’s General Plan including the following General Plan policies:
a. Land Use Element Policy 2.2 – Sustainable and Complete Community - Emphasize and support the development of uses that enable Newport Beach to be a complete community that maintains the ability to provide locally accessible opportunities for retail, goods and services, and employment.
The proposed allocation of 1,500 dwelling units to Housing Overlay sites within the PC-56 Development Plan would contribute to the sustainability of the City by providing housing opportunities near retail, goods and services, and employment within Newport Center. The PC -56 Development Plan includes appropriate standards for all land uses, to support a cohesive and complete community with all of the necessary amenities.
b. Land Use Element Policy 3.3. – Opportunities for Change – Support opportunities for new development and improved physical environments for residents, businesses and visitors in the following districts and corridors, as specified in Policies 6.3.1 and 6.22.7:
Fashion Island/Newport Center: support balanced expansion and enhancement of retail uses, hotel rooms, and offices, and development of residential in proximity to jobs and services.
The proposed allocation of 1,500 dwelling units from Subarea 4 of the Housing Overlay to the PC-56 Development Plan would be consistent with this policy as it would provide additional residential opportunities in proximity to existing jobs and services.
c. Housing Element Policy Action 1 C– Newport Center- The City will establish a housing opportunity overlay, or similar rezoning strategy, in the Newport Center area for 163 acres of land to provide for the accommodation of at least 2,439 housing units in the Very Low, Low, Moderate and Above Moderate- income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-183
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of residential product types at a permitted average density of 50 dwelling units per acre.
The proposed allocation of 1,500 dwelling units to Housing Overlay sites within the PC-56 Development Plan would be consistent with this policy , as it would provide zoning in Newport Center to provide for the accommodation of up to 1,500 dwelling units at an average density of 20 to 50 dwelling units per acre. Although the 1,500 dwelling units would likely be market rate units, the Project includes an amendment to the DA and preliminary AHIP to ensure the Applicant provides affordable housing.
d. Housing Element Policy Action 3A – Objective Design Standards - State Housing law includes various exemptions for projects with an affordable housing component, which limits the City’s ability to apply discretionary design review requirements to certain residential projects. State Housing law specifies having objective design standards available to apply to housing projects where the City’s discretion over design review is otherwise preempted per State law. The City of Newport Beach will review existing ent itlement processes for housing development and will eliminate discretionary review for all housing development proposals that include a minimum affordable housing component. The City will also review the appropriateness of its current development standards to ensure that it reasonably accommodates the type and density of housing it is intended to support. The City will also amend existing development standards to replace or remove all subjective standards for projects with a minimum affordable housing component with objective standards that do not impede the type and density of housing it is intended to allow.
The City has implemented this policy through the establishment of Multi -Unit Objective Design Standards for all multi -unit residential projects consisting of 20 or more dwelling units per acre. As previously discussed in Fact 3, Section 20.48.185 (Multi-Unit Objective Design Standards) of the NBMC, was implemented to provide for quality design of multi -unit residential and mixed- use development that build on context, contribute to the public realm and provide high quality and resilient buildings and public spaces. The PC-56 Amendment incorporates additional objective design standards for parking lots, landscaping, open space, and other features.
Additionally, the PC-56 Amendment adjusts the allowed height of structures in Block 100, Fashion Island, and San Joaquin Plaza. These changes will reduce potential impediments to the construction of housing at the specified densities of 20 to 50 dwelling units per acre.
e. Land Use Element Policy 4.4 – Rezoning to Accommodate Housing Opportunities - Accommodate housing opportunities through the adoption of housing opportunity overlay zoning districts or other land use regulatory policy. The following areas are intended to be consistent with the Housing Element’s focus areas. Properties within each overlay district should include, but are not limited to, sites identified in the Housing Element; however, not all sites must be included, and other sites or adjustments may be identified in the future through rezoning unless precluded by state law. The goal is to ensure an adequate number of sites Citywide Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-184
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to accommodate the City’s overall allocation of the Regional Housing Needs Assessment:
Newport Center: the intent is to support a density between 20 and 50 dwelling units per gross acre to accommodate up to 2,439 total dwelling units within the area.
The Project is consistent with and wholly in furtherance of LU 4.4 since the PC-56 Amendment will provide a “land use regulatory policy” to implement the housing opportunities within the Newport Center S ubarea 4. The PC-56 A mendment allocates 1,500 dwelling units from the General Plan and Housing Overlay to another regulatory policy or zoning document, the PC-56 Development Plan. Further, as proposed, all 1,500 dwelling units must be located on sites that are included in Housing Overlay, as identified in Section 20.80.025 (Housing Opportunity Overlay Zoning Districts Maps) ( HO-4 Newport Center Area) of the NBMC . This allocation would not exceed the 2,439-d welling-unit limit for the Newport Center (HO -4) Subarea, nor would it impact the dwelling units reserved for properties that are located within the C oastal Zone. Lastly, the P C-56 Development Plan includes language that would require a minimum average of 20 dwelling units per gross acre for future projects on an individual basis and a maximum average of 50 dwelling units per gross acre in aggregate throughout properties regulated by the PC-56 Development Plan. This would ensure that future development w ill comply with minimum and maximum densities required, while allowing for planning on a larger scale. Therefore, the Project is consistent with General Plan Policy LU 4.4 and the development limits of the General Plan.
f. Land Use Element Policy LU 4.5 - Residential Uses and Residential Densities - Residential use of any property included within an established housing opportunity overlay zoning district is allowed regardless of and in addition to the underlying land use category or density limit established through Policy LU 4.1, Table LU 1 and Table LU 2, or any other conflict in the Land Use Element. A general plan amendment is not required to develop a residential use within an established housing opportunity zoning overlay district. The maximum density specified for the various overlay districts specified in Policy LU 4.4 is an average over the entire property or project site. For example, a portion of a development site may be developed at a higher density than specified by Policy 4.4 provided other portions of the site are developed at lower densities such that the average does not exceed the maximum. Density calculations and total units identified in LU 4.4 do not include units identified as pipeline units or units permitted pursuant to State density bonus law.
Although Policy LU 4.5 allows residential development on Housing Overlay sites regardless of the underlying zoning district or General Plan designation, the PC-56 Development Plan is being amended to specifically allow residential development within Fashion Island, Block 100, and Block 400 to provide consistency and allow future buildout pursuant to the PC -56 Development Plan, in-lieu of the standards identified in Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts).
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g. Land Use Element Policy LU 4.6 Continuation of Existing Development - Residential opportunities are in addition to existing uses allowed by the General Plan. Properties within the established overlay zones are not required to be developed for mixed- use or residential. Existing uses may continue to operate provided they are legally established and consistent with policies and regulations related to legal nonconforming uses. The adoption of housing opportunity overlay districts shall not affect existing rights to use the property.
The PC-56 Amendment would allow for the existing underlying development rights to be maintained. In particular, the two office buildings that are currently within the OR (Office -Regional) Zoning District would be rezoned to PC -56 as part of the Project and included in Block 100 of the PC-56 Development Plan, which allows for the continuation of office uses. Further, the existing floor area of those two buildings would be captured within the PC -56 Development Plan to ensure the existing buildings remain conforming.
h. Land Use Element Policy LU 6.14.4 - Development Scale. The Project reinforces the original design concept for Newport Center by concentrating the greatest building mass and height in the northeasterly section along San Joaquin Hills Road, where the natural topography is highest and progressively scaling down building mass and height to follow the lower elevations toward the southwesterly edge along East Coast highway.
The PC-56 Amendment to increase the height limits for Fashion Island (Major buildings and Periphery buildings) , Block 100, and San Joaquin Plaza would be consistent with this policy , as the greatest building mass and height would remain concentrated to the northeasterly section of Newport Center. For Fashion Island, the modified heights would remain lower than the existing height limits for buildings In Blocks 400, 500, and 600 of the PC-56 Development Plan. For Block 100 and San Joaquin Plaza, the increased height limit of 85 feet would be consistent with other recently approved residential projects in the city. As previously stated in Fact 7, the benefits of increasing heights include accommodating density on smaller sites and/or fewer sites, increasing walkability for residents, activating the urban core of Newport Center to create a true mixed- use community, and decreasing development footprints to provide increased open space and views through developments. The proposed amendments would not impact the existing Newport Center Sight Plane, as established By Ordinance Nos. 1371, 1596, and 83-27, which maintain residential views across the southeastern portion of Newport Center.
Development Agreement
(Zoning Implementation and Public Benefit Agreement)
The Project satisfies the requirements of Chapter 15.45 (Development Agreements) of the NBMC and California Government Code Section 65864 as follows:
Findings and F
acts in Support of Finding:
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1. The DA between the City and Applicant for this area is also referred to as the Zoning Implementation and Public Benefit Agreement. The existing agreement was approved in 2007, amended in 2012, and amended and restated in 2013. The DA provides development rights in exchange for significant public benefits over a term of 20 years.
The Third Amendment to the DA is requested between the City and Applicant to vest the increased residential density of 1,500 dwelling units in exchange for certain public benefits. The Third Amendment to the DA is attached hereto as “Exhibit D,” and incorporated herein by reference. The DA includes an AHIP, which will be supplemented as part of the P roject to help ensure there is a commitment to furthering affordable housing production. An amendment is also necessary to incorporate two additional properties within Newport Center (100 and 190 Newport Center Drive) into the DA that were not previously included.
2. The Third Amendment to the DA includes all the mandatory elements, including terms and public benefits that are appropriate to support conveying the vested development rights consistent with the city’s General Plan, NBMC, and Government Code Sections 65864 et. seq.
Affordable Housing Implementation Plan
Findings and Facts in Support of Finding:
1. The Applicant has committed to assisting the City in the provision of additional affordable housing opportunities. The location, type, affordability level, design, and other details will be determined in the future as part of a site- specific project review. The AHIP is attached as Exhibit “E” to this resolution.
2. The AHIP has been prepared consistent with the provisions of Section 20.52.015 (Affordable Housing Implementation Plan) of the NBMC.
Water Supply Assessment
A Water Supply Assessment (WSA) has been prepared by Fuscoe Engineering, Inc. dated January 14, 2025, for the project to evaluate the water supply availability pursuant to California SB 610 adopted in 2011, Section 21151.9 of the PRC, and Section 10910 et seq. of the Water Code and as contemplated in the City’s Housing Implementation Program Final Program EIR.
The WSA is attached hereto as Exhibit “F”.
Findings and Facts in Support of Finding:
1. The WSA evaluates whether the total projected water supplies, determined to be available by the city or county for the project during normal, single dry, and multiple dry water years during a 20- year projection, will meet the projected water demand associated with the Project, in addition to existing and planned future uses, including agricultural and manufacturing uses
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2. The WSA identifies all existing water supply entitlements, water rights, or water service contracts relevant to the water supply for the Project and describes the quantities of water received in prior years by the existing water supply entitlements, water rights, or water service contracts.
3. The Utilities Department has reviewed the WSA and found it to be acceptable. Based on the facts and analysis contained in the WSA, adequate and reliable water supplies are and will be available to serve the proposed project for the next 20 years.
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
1. Assembly Bill No. 2904 (“AB 2904”) and California Government Code Section 65854 state that an amendment to a zoning ordinance that affects the permitted uses of real property shall require notice at least 20 days prior to the public hearing with the Planning Commission. In accordance with said requirement, notice of th is public hearing was given on February 8, 2025, at least 20 days prior to March 6, 2025.
2. In accordance with Section 21083.3 of the California Public Resources Code and Section 15183 of the CEQA Guidelines, the Project is consistent with the development density and use characteristics established by the City ’s General Plan Housing Implementation Program as analyzed by the PEIR, and the required determinations can be made, as detailed in Exhibit “B”; therefore, the Planning Commission finds that no additional environmental review is required to approve the Project.
3. The Planning Commission of the City of Newport Beach hereby recommends approval of the Project to the City Council, including: (1) the North Newport Center Planned Community (PC-56) Development Plan amendment, attached hereto as Exhibit “C”; (2) the Third Amendment to the DA in compliance with Chapter 15.45 (Development Agreements) of the NBMC and California Government Code Section 65864 attached hereto as Exhibit “D” ; (3) the Affordable Housing Implementation Plan attached hereto as Exhibit “E”; and (4) the Water Supply Assessment, attached hereto as Exhibit “F.”
Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-188
Planning Commission Resolution No. PC2025-006
07-29-24
PASSED, APPROVED, AND ADOPTED THIS 6TH DAY OF MARCH, 2025.
AYES: Ellmore, Harris, Lowrey, Rosene, and Salene
NOES: None
ABSTAIN: None
RECUSED: Langford and Reed
BY:_________________________
Mark Rosene, Chair
BY:_________________________
David Salene, Secretary
Attachments: Exhibit A – Description and Depiction of Properties Exhibit B – Section 15183 Consistency Analysis prepared by T & B Planning, Inc. dated February, 2025.
Exhibit C – Amendment to the North Newport Center Planned Community (PC-56) Development Plan
Exhibit D – Draft Development Agreement (DA)
Exhibit E – Affordable Housing Implementation Plan (AHIP) prepared by CAA Planning Inc. dated February 26, 2025.
Exhibit F – Water Supply Assessment prepared by Fuscoe Engineering, Inc. dated January 14, 2025
Docusign Envelope ID: 487E8151-985A-4999-9214-C5D43B660D3C 23-189