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Attachment C - Planning Commission Staff Report (no attachments)

Newport Beach City Council
July 22, 2025

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Attachment C - Planning Commission Staff Report (no attachments)
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July 22, 2025
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Newport Beach City Council
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Attachment C
Planning Commission Staff Report
25-29

CITY OF NEWPORT BEACH

PLANNING COMMISSION STAFF REPORT
June 19, 2025
Agenda Item No. 2

SUBJECT: Uptown Newport (PA2025-0010)
▪ Development Agreement No. DA2012-003, Third Amendment SITE LOCATION: 4321 Jamboree Road
APPLICANT: Uptown Newport Jamboree, LLC
OWNER: Uptown Newport Jamboree, LLC
PLANNER: Rosalinh Ung, Principal Planner
949-644-3208 or [email protected]

PROJECT SUMMARY

Amendment to Section 4.5 (Light Industrial Land Uses) of Uptown Newport Development Agreement No. DA2012-003 (DA) to extend the allowable term of existing light industrial land uses currently operating as Tower Semiconductor (TowerJazz) located within future Phase 2 of Uptown Newport Planned Community (PC-58). The request is for an additional

3.5 years, from March 12, 2027 to September 12, 2030.

RECOMMENDATION

1) Conduct a public hearing;

2) Find that all significant environmental concerns for the proposed project have been adequately addressed in the previously certified Environmental Impact Report No.

ER2012-001 (SCH No. 2010051094), First Addendum No. ER2012-001, and Second Addendum No. ER2020-001; and

3) Adopt Resolution No. PC2025-009 approving Uptown Newport Development Agreement No. DA2012-003, Third Amendment (Attachment No. PC 1).

25-30
Uptown Newport Development Agreement No. DA2012-003 Third Amendment (PA2025-0010)
Planning Commission, June 19, 2025

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VICINITY MAP

LOCATION GENERAL PLAN ZONING CURRENT USE
ON-SITE MU-H2 (Mixed-Use
Horizontal 2)
PC-58 (Uptown
Newport Planned
Community)
Residential - Phase 1 &
Industrial (TowerJazz) –
Phase 2
NORTH MU-H2
PC-15 (Koll Center
Newport Planned
Community)
Office Developments
SOUTH UCI North Campus UCI North Campus UCI North Campus EAST MU-H2/UCI North
Campus
PC-15 & UCI North
Campus
Office/Commercial
Developments & UCI North
Campus
WEST MU-H2 PC-15 Office Developments
TowerJazz Facility
Phase 1
Phase 2
25-31
Uptown Newport Development Agreement No. DA2012-003 Third Amendment (PA2025-0010)
Planning Commission, June 19, 2025

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INTRODUCTION

Project Setting

The subject property is located in the Airport Area and is approximately 25.05 acres in size. Vehicular access to the project site is from Jamboree Road and Birch Street. The site is surrounded to the north, west, and south by commercial/office uses within the Koll Center Newport office park.

Background

Uptown Newport Planned Community (PC-58) Project Approval

On March 12, 2013, City Council adopted Ordinance No. 2013-5, among other entitlement applications, for the adoption of Uptown Newport Planned Community (PC-58) consisting of removing existing office and industrial uses in two primary phases and constructing a mixed-use planned community consisting of 1,244 residential units, 11,500 square feet of neighborhood-serving retail space, and approximately two acres of public park.

Phase 1 is located on the westerly side of the property and includes 680 residential units and a one -acre neighborhood park. This phase is nearly completed with a total of 548 residential units allotted to the following projects that are in various improvement stages:

• One Uptown Newport : a 458-unit apartment project inclusive of 92 affordable units (completed and occupied);
• Parkhouse Residences : a 30 -unit condominium project ( near completion , 24 units received Certificate of Occupancy);
• Uptown Newport Residences: a 60-unit condominium project (entitled); and • Phase 1 Park: a one-acre public park (improved and open to the public).

Of the 132 remaining unbuilt residential units for this phase, 77 units have been transferred to the Residences at Bristol Street project (PA2021-161) located in the Airport Area and 55 units to be transferred to Phase 2, as allowed by PC-58.

Exhibit 1 below illustrates the approved phasing plan for PC -58; and the locations of approved/improved residential projects and one-acre public park in Phase 1.

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Uptown Newport Development Agreement No. DA2012-003 Third Amendment (PA2025-0010)
Planning Commission, June 19, 2025

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Exhibit 1
Phase 2 is located on the easterly side of the property and currently occupied by TowerJazz. Timing for Phase 2 construction is contingent on the existing lease with the TowerJazz facility, which currently extends to March 12, 2027. At the conclusion of the lease term, the TowerJazz facility is intended to be demolished and redeveloped with a total of 619 residential units (564 originally planned + 55 un -built units transferred from Phase 1), 11,500 square feet of retail space transferred from Phase 1, and a remaining one-acre public park. The Vicinity Map above illustrates the existing location of TowerJazz facility with its ancillary uses and surface parking in Uptown Newport Planned Community.

Development Agreement (DA2012-003) – 2013 Approval
In addition to the PC -58 approval, the City Council adopted Ordinance No. 2013-6 to approve Development Agreement No. DA2012-003 (DA) and vesting development approvals to allow build -out of the project site under development standards and requirements in place at the time of project approval. The term of the DA is 15 years, with two five-year extensions. The DA became effective on April 11, 2013, and the earliest expiration could be in 2028 (2013+15). In exchange for vesting rights, the DA included several public benefits, including the payment of public benefit fees, park land dedication and improvements, park maintenance, publicly accessible open space, and construction of 102 housing units affordable to very low-income households.

Uptown Newport
Residences
Parkhouse
Residences
One Uptown Newport Residences
(Retail component moved to Phase 2)
25-33
Uptown Newport Development Agreement No. DA2012-003 Third Amendment (PA2025-0010)
Planning Commission, June 19, 2025

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First Amendment to DA2012-003
On May 12, 2015, the City Council adopted Ordinance No. 2015-11 to approve the First Amendment to DA (PA2015-015) to allow: 1) deferring the payment of public benefit fees to the City from the issuance of building permits to the issuance of certificates of occupancy; and, 2) the payment of fees in -lieu of parkland dedication for all units at the issuance of the first building permit for any unit in a final subdivision map to the issuance of building permits on a per unit basis. The approved First Amendment has no impact on the PC-58 development, the overall terms, condition or development rights specified in the DA; other than the timing of subject payments.

Second Amendment to DA2012-003
On October 22, 2024, the City Council adopted Ordinance No. 2024-24 to approve the Second Amendment to DA (PA2024-0078) to allow excess park in-lieu fee credits to be used towards the developer’s public benefit fee obligations for residential projects located within PC-58. The approved Second Amendment has no impact on the development of PC-58, the overall terms, condition or development rights specified in the DA; other than allowing excess park in-lieu fee credits to be used towards public benefit fee obligations.

DISCUSSION
Proposed DA Amendment
The applicant, on behalf of TowerJazz, proposes amending Section 4.5 (Light Industrial Land Uses) of the DA to extend the closure date for TowerJazz facility by an additional

3.5 years, from March 12, 2027, to September 12, 2030 (Attachment No. PC 2). The proposed amendment does not affect nor make any additional changes to the DA, other than extending the light industrial use beyond the intended expiration date.

No changes are required to PC-58 as the DA is the controlling legal document entered by the City and the property owners that specified the timeline of development for the entire planned community. The existing light industrial use will continue operating as a legal, nonconforming use pursuant to the Newport Beach Municipal Code. Staff supports the proposed amendment as drafted and attached as Exhibit “A” to the draft resolution.

Environmental Review
All significant environmental concerns for the proposed project have been addressed in the previously certified Environmental Impact Report No. ER2012 -001 (SCH No. 2010051094), First Addendum No. ER 2012-001, and Second Addendum No. ER2020 - 001, and the City of Newport Beach intends to use said document s for the above noted project, and further that there are no additional reasonable alternative or mitigation measures that should be considered in conjunction with said project. The previously 25-34
Uptown Newport Development Agreement No. DA2012-003 Third Amendment (PA2025-0010)
Planning Commission, June 19, 2025

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prepared environmental document s for the Uptown Newport project are available for public review at www.newportbeachca.gov/CEQA.

Additionally, a CEQA Consistency Memorandum has been prepared by PlaceWorks (Exhibit “A” of Attachment No. PC 1) and determined that the proposed amendment is consistent with the Uptown Newport Planned Community (PC-58) and within the scope of previously prepared CEQA documents . No additional environmental review pursuant to CEQA is required.

Public Notice
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 Municipal Code.

Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the city website.

Prepared by: Submitted by:

ATTACHMENTS
PC 1 Draft Resolution For Approval
PC 2 The Applicant’s Letter of Request
:\Users\PLN\Shared\PA's\PAs - 2024\PA2024-0078\PC\PC-Staff_Report.docx01/18/23 25-35

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