April 29, 2025
Agenda Item No. 23
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, [email protected] PREPARED BY:
Liz Westmoreland, AICP, Principal Planner - 949-644-3234, [email protected] TITLE:
Ordinance Nos. 2025-7 and 2025-8, and Resolution No. 2025-19 Approving an Amendment to the North Newport Center Planned Community (PC-56) ABSTRACT:
The Irvine Company (Applicant), is requesting to amend the North Newport Center Planned Community (PC-56) Development Plan to: (1) allocate 1,500 dwelling units from the 2,439-unit development limit identified in the HO-4 (Newport Center Area) Subarea of the Housing Opportunity (HO) Overlay Zoning Districts of the Newport Beach Municipal Code; (2) incorporate two parcels located at 100 and 190 Newport Center Drive into PC-56; and (3) update residential height limits, design standards, the plan review process, and other minor provisions in PC-56. As the request involves vesting development rights for dwelling units, the Applicant is also proposing an amendment to the existing Development Agreement (DA), an affordable housing implementation plan (AHIP), and a water supply assessment (WSA).
For the City Council’s consideration is the introduction of two ordinances that would amend the PC-56 Development Plan and amend the DA, as well as a resolution to adopt an AHIP and WSA.
RECOMMENDATIONS:
a) Conduct a public hearing;
b) Find this matter is not subject to further environmental review pursuant to Section 21083.3 of the California Public Resources Code (PRC) and Section 15183 of the California Environmental Quality Act (CEQA) Guidelines because it is consistent with the previously certified Program Environmental Impact Report (SCH No. 2023060699);
c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2025-7, An Ordinance of the City Council of the City of Newport Beach, California, Approving an Amendment to the North Newport Center Planned Community Development Plan (PC-56) to Allocate 1,500 Base Dwelling Units from the HO-4 (Newport Center Area) 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 and Various Addresses Within the North Newport Center Planned Community (PA2024-0173) and pass to a second reading on June 10, 2025; d) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2025-8, An Ordinance of the City Council of the City of Newport Beach, California, Approving a Development Agreement for the Project Located at 100 and 190 Newport Center Drive and Various Addresses Within the North Newport Center Planned Community (PA2024-0173) and pass to a second reading on June 10, 2025; and e) Approve Resolution No. 2025-19, A Resolution of the City Council of the City of Newport Beach, California, Approving an Affordable Housing Implementation Plan (AHIP) and Water Supply Assessment for Properties Located at 100 and 190 Newport Center Drive and Various Addresses Within the North Newport Center Planned Community (PA2024-0173).
DISCUSSION:
The City of Newport Beach’s Housing Element for the 6th Cycle Regional Housing Needs Assessment (RHNA) was adopted by the City Council on September 13, 2022, and certified by the California Department of Housing and Community Development (HCD) as statutorily compliant on October 5, 2022. A major component of the 6th Cycle Housing Element (Housing Element) is its Section 4 (Housing Plan), which outlines the City’s housing strategy with an implementation program and several policy actions. Notably, the Housing Element identifies Newport Center as a focus area that has the potential to accommodate additional residential development and/or redevelopment of existing sites with residential projects.
On September 24, 2024, the 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 Housing Element.
Section 20.28.050 of the NBMC allows for new housing opportunities within five subareas to ensure the City can accommodate its 6th Cycle RHNA allocation. These subareas correspond to the Focus Areas identified in the Housing Element. One of the Subareas is HO-4 (Newport Center Area).
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.
Many of the properties in PC-56 Zoning District and the properties at 100 and 190 Newport Center Drive are located within the HO-4 Subarea. The development limit for the HO-4 Subarea is 2,439 units and the required average density range is 20 to 50 dwelling units per acre.
Figures 1 and 2 below depict properties identified as housing sites within HO-4 and eligible for the development of housing pursuant to the Housing Overlay of the NBMC and the existing properties regulated by the PC-56 Development Plan.
Figures 1 and 2, Housing Opportunity Sites in Newport Center (left) and Existing Properties Within the PC-56 Development Plan (right) Project Description
The Applicant owns and/or controls most of the property within Newport Center. Based on the need for additional housing and the recent implementation of the City’s Housing Element, the Applicant seeks to revisit its master planning for the Newport Center area to incorporate additional residential opportunities and refine other development standards of PC-56. To accomplish its objectives, the Applicant seeks the following approvals from the City:
Amendments to the PC-56 Development Plan to allocate 1,500 dwelling units to the PC-56 Development Plan from the development limit identified in the HO-4 (Newport Center) Subarea of the Housing Opportunity (HO) Overlay Zoning Districts pursuant to Newport Beach Municipal Code (NBMC) Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts). 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 include changing the zoning of 100 and 190 Newport Center Drive from OR (Office-Regional) to PC-56; Development Agreement Amendment between the City and Applicant to vest the residential density of 1,500 dwelling units in exchange for public benefits. The existing Development Agreement includes an Affordable Housing Implementation Plan (AHIP), which will be modified 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 EIR.
No construction is proposed as part of this application and no additional residential units are being requested beyond what the existing General Plan and HO-4 Subarea already allow.
PC-56 Development Plan Amendments
This section summarizes the proposed amendments to the PC56 Development Plan, outlines minor text revisions, and provides a brief analysis of each change. Complete redlinestrikeout revisions are included as Attachment G; a detailed discussion appears in the Planning Commission staff report of March 6, 2025 (Attachment D).
Housing Overlay Integration
Properties identified as Housing Overlay sites in NBMC Section 20.80.025 (Housing Opportunity Overlay Zoning District Maps) are subject to the standards identified in said section. However, incorporation of the dwelling units into the PC-56 Development Plan would mean that future residential development is subject to its development standards and the provisions of the Housing Overlay would not apply. 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 1,500 dwelling units from the HO-4 Subarea’s development limit 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.
Dwelling Unit Limit and Allowed Uses
The proposed amendments would modify the existing maximum unit limit for PC-56 from 769 to 2,269 (i.e., an increase of 1,500 dwelling units). Although the new Housing Overlay allows construction of residential dwelling units regardless of the underlying zoning designation, the amendments include changing the allowed uses for Fashion Island and Blocks 100 and 400 to allow for residential development, consistent with the Housing Overlay.
The 1,500 dwelling units would only be developed on Housing Overlay sites and would be required to meet an average minimum density of 20 dwelling units per acre (per site) and an average maximum density of 50 dwelling units per acre (in aggregate).
Additional Properties Rezoned
The project includes rezoning the two properties at 100 and 190 Newport Center Drive from the OR (Office Regional) Zoning District to the PC-56 Zoning District, as identified in Figure 3 below. The existing properties are currently occupied by office buildings. The PC-56 Development Plan allows office as allowed use, thereby allowing for the continuation of office use if other uses are not constructed in the future. Further, the existing floor area of those two buildings has been captured within the PC-56 Development Plan amendments to ensure the existing buildings remain conforming.
Figure 3, Properties to be Incorporated into PC-56
Height
The amendments to the PC-56 Development Plan include changes to the allowed heights of buildings in three areas of Newport Center.
The PC-56 Development Plan designates height limits by sub-area, and for Fashion Island, it also specifies heights by type of building. The proposed changes to maximum height limits are described below in Table 1 and would apply to both residential and nonresidential structures (except as specified).
Table 1, Changes to Maximum Height Limits
Building Location/Building Type
Existing Height Limit
Proposed Height Limit
Fashion Island
Residential
Major Buildings
Mall Buildings
Parking Structures
Periphery Buildings
N/A
125 feet
75 feet
55 feet
40 feet
225 feet
125 feet
75 feet
55 feet
40 feet
Block 100
Nonresidential
Residential
50 feet
N/A
50 feet
125 feet
Blocks 400, 500, and 600
295 feet
295 feet
Block 800
Nonresidential
Residential
125 feet
200 feet
125 feet
200 feet
San Joaquin Plaza
65 feet
65/85**
*Height limits in PC-56 are generally measured from finished grade. **The height limit is 65 feet with the exception of 800 San Clemente Drive, which is limited to 85 feet.
The proposed height adjustments for Fashion Island, Block 100, and San Joaquin Plaza in the PC56 Development Plan continue Newport Center’s decadeslong trend toward urbanization. Even with these changes, the new height limits remain 70–210 feet below both the currently permitted maximums and the asbuilt heights in Blocks 400, 500 and 600. Therefore, any new structures built under these standards would be compatible with the existing Newport Center context.
The revised building heights would allow for future residential projects to meet the required minimum density of 20 dwelling units, 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 the 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 private residential views across the southeastern portion of Newport Center.
Similarly, the Planning Commission recently recommended approval of amendments to the Housing Overlay to increase the height limits for residential development, including several areas of Newport Center that are within PC-56 (Planning Commission Resolution No. PC2025-004). The amendments are intended to facilitate the design and construction of new residential development consisting of 20 dwelling units per acre to 50 dwelling units per acre. However, because the future development projects would be subject to the PC-56 development standards, the recent amendments are referenced in this report for informational purposes only.
Other Design and Development Standards
The amendments include other changes to development standards in PC-56 related to design, open space, residential parking, and signage. A summary of the proposed changes includes:
Objective Design Standards. Instead of relying on the standards in the NBMC related to design, future residential projects would be subject to the standards of PC-56. The amendments include new and revised standards that are commensurate with the NBMC that will ensure high quality design.
Open Space. Reducing the amount of private open space required for each dwelling unit and increasing the amount of common recreational amenities (pool, clubhouse, sport courts) required for each project.
Parking. Modifying residential parking requirements to be based on bedroom count instead of dwelling unit count, to be more in line with the Housing Overlay.
Signs. Increasing size of residential signs and adding a new digital monument sign. Only static images would be allowed.
Streamlined Review Process
The amendments 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. Currently, projects that are consistent with the General Plan and development standards of the PC-56 Development Plan are reviewed by the director in lieu of the Planning Commission or other discretionary body. This same procedure would apply to future residential projects that are consistent with the development standards. The community development director would be required to approve the project if it is consistent with the following findings for approval (as identified in the PC-56 Development Plan):
The proposed use and/or development is consistent with the General Plan.
The proposed use and/or development is consistent with the North Newport Center PC Development Plan and Design Regulations.
The decision by the community development director would be appealable to the Planning Commission pursuant to Section 20.64 (Appeals) of the NBMC.
Traffic Study
Projects that require the preparation of a traffic study pursuant to Chapter 15.40 (Traffic Phasing Ordinance) of the NBMC would also be subject to a streamlined review, as specified in the proposed amendments. This would be a new provision in the PC-56 Development Plan. However, if a traffic study reveals that the project trips will cause or make worse an unsatisfactory level of traffic service, then review by the Planning Commission and/or City Council would still be required. Therefore, this streamlining provision could expedite the construction of new housing opportunities in the city in furtherance of Housing Element Policy Action 4B (Streamlined Project Review) and is consistent with the longstanding implementation of the PC-56 Development Plan.
General Plan Consistency
An amendment to the PC-56 Development Plan is a zoning amendment and legislative act. Neither Title 20 (Planning and Zoning) of the NBMC, nor the PC-56 Development Plan, nor California Government Code Section 65000 et seq., sets forth any required findings for approval of such amendments. However, the matter has been evaluated for consistency with the General Plan as detailed in Attachment A. In summary, it is in direct furtherance of General Plan Policies.
Consistent with Land Use Element Policy 4.4 – Rezoning to Accommodate Housing Opportunities, the PC-56 Development Plan amendment will provide a “land use regulatory policy” to implement the housing opportunities within the Newport Center subarea of the city. The proposed amendment would allocate 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 the 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-dwelling-unit limit for the Newport Center (HO-4) Subarea, nor would it impact the dwelling units reserved for properties that are located within the Coastal Zone.
The PC-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 will comply with minimum and maximum densities required, while allowing for planning on a larger scale. Therefore, this matter is consistent with General Plan Policy LU 4.4 and the development limits of the General Plan.
Although the 1,500 dwelling units would likely be market rate units, the amended DA and AHIP will ensure the Applicant assists the City in the production of affordable housing.
Development Agreement (DA) and Affordable Housing Implementation Plan (AHIP) There is an existing DA between the City and Applicant for this area that is also referred to as the “Zoning Implementation and Public Benefit Agreement.” The DA, approved in 2007 and amended in 2013, provides development rights in exchange for significant public benefits over a 20-year term. The Applicant is seeking a third amendment to the DA to vest rights to construct 1,500 dwelling units on housing opportunity sites within the PC-56 Zoning District. The DA is included as Exhibit “B” of Attachment B and the key terms are summarized below.
Term: Extend existing DA by 10 years to 2042
Public Benefit Fee: $17,000/unit for any units constructed after 2032 Recreation/Park Fee: $34,000/unit for 700 units
Off-Site Improvements: Development of a landscape and street master plan for Newport Center and construction of improvements Development Impact Fees: Voluntary payment of Development Impact Fees Affordable Housing: Commitment to develop a minimum of 105 housing units affordable to very low or low-income households by 2029 In the event that the 105 affordable housing units cannot be constructed by 2029, the applicant shall dedicate land or provide in-lieu fees to the City to facilitate the construction of affordable housing.
Although the existing DA includes an AHIP, a new AHIP (included as Exhibit “B” to Attachment C) is required to address the Applicant’s new commitments to affordable housing. The AHIP has been prepared consistent with the provisions of Section 20.52.015 (Affordable Housing Implementation Plan) of the NBMC.
Water Supply Assessment (WSA)
Pursuant to California Senate Bill 610 adopted in 2011, Section 21151.9 of the Public Resources Code (PRC), and Section 10910 et seq. of the Water Code, a Water Supply Assessment (WSA) is required for projects that result in the construction of at least 500 dwelling units. Since the project includes the future construction of up to 1,500 dwelling units, and the City’s Housing Implementation Program EIR contemplated that future housing projects would prepare their own project specific WSAs, it was appropriate for the applicant to prepare a WSA as part of this project.
Thus, a WSA prepared for the project by Fuscoe Engineering, Inc. dated January 14, 2025, evaluated the water supply availability. The WSA is included as Exhibit “C” to Attachment C. The Utilities Department 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.
Planning Commission Review and Recommendation
On March 6, 2025, the Planning Commission conducted a duly noticed public hearing to consider the requested application. The Planning Commission discussed the merits of the project, its relationship to the recently reviewed Housing Overlay Amendments, height changes, outreach with surrounding neighbors, parking standards, and how the streamlining provisions of PC-56 would function. Four members of the public addressed the Planning Commission regarding the request. At the conclusion of the public hearing, the Planning Commission voted 5-0 with two commissioners recused, to adopt Resolution No. PC2025-006, recommending the City Council approve the project. The Planning Commission staff report, meeting minutes, and resolution are included for reference as Attachments D, E and F.
After the Planning Commission hearing and prior to the City Council hearing on this item the City received public comments on the project that are included as Attachment H.
Airport Land Use Commission (ALUC)
The project site falls within the airport planning area of the Airport Environs Land Use Plan (AELUP) for John Wayne Airport. Section 4.3 of the AELUP and Section 21676(b) of the California Public Utilities Code (CPUC) require the City submit General Plan and Zoning Code amendments to the Airport Land Use Commission (ALUC) for a consistency determination with the AELUP. ALUC conducted a hearing on the matter at its April 17, 2025, meeting and found the matter is consistent with the AELUP. In compliance with the AELUP and PC-56, any structures over 200 feet in height would be subject to review by the ALUC prior to building permit issuance.
FISCAL IMPACT:
As the project is not increasing overall density nor is it changing allowed land uses through an amendment to the General Plan Land Use Element, a fiscal impact analysis was not prepared. A fiscal impact analysis was prepared by Keyser Marston Associates dated July 9, 2024, for the Housing Element Implementation Program Amendments. The analysis concluded that residential projects could have a net negative fiscal impact unless they continue to be developed at higher price points. Additionally, fiscal impacts are often offset through payment of impact fees and DAs. In this case, should future market rate residential projects be constructed pursuant to the DA and PC-56, the applicant would provide various public benefit fees including development impact fees to the City based on the specific terms contained in the DA.
ENVIRONMENTAL REVIEW:
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, 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.
The proposed amendments are not subject to further environmental review pursuant to Section 21083.3 of the California Public Resources Code and Section 15183 of the CEQA Guidelines because, inasmuch as the properties involved are all within the HO-4 Subarea, the amendments will not change the underlying land use or zoning designations; and would not result in new significant impacts or a substantially more adverse impact than addressed in the PEIR. A detailed consistency analysis been prepared by T & B Planning Inc., dated April 2025, and peer reviewed by Kimley-Horn & Associates, Inc., is provided as Exhibit “C” of Attachment A and hereby incorporated by reference.
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 – Ordinance No. 2025-7
Attachment B – Ordinance No. 2025-8
Attachment C – Resolution No. 2025-19
Attachment D – Planning Commission Staff Report (No Attachments) Attachment E – Planning Commission Draft Meeting Minutes Attachment F – Planning Commission Resolution No. 2025-006 (No Exhibits) Attachment G – Redline-Strikeout Planned Community Development Plan Attachment H – Public Comments
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Ordinance Nos. 2025-7 and 2025-8, and Resolution No. 2025-19 Approving an Amendment to the North Newport Center Planned Community (PC-56) April 29, 2025
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