Attachment B
Planning Commission Staff Report dated September 17, 2026
CITY OF NEWPORT BEACH
PLANNING COMMISSION STAFF REPORT
September 17, 2026
Agenda Item No. 2
SUBJECT: Fairway Three (PA2025-0019)
▪ Development Agreement
SITE LOCATION: 1 Clubhouse Drive – Housing Element Site ID No. 353 APPLICANT: Eagle Four Partners
OWNER: Golf Realty Fund LP
PLANNER: Jenny Hannsun, Associate Planner
949-644-3212 or [email protected]
PROJECT SUMMARY
The applicant is proposing a Development Agreement in connection with the potential future development of Fairway Three, a residential development consisting of up to 78 residential units at the northeastern portion of the Newport Beach Country Club (NBCC) (Project). No actual project or construction is proposed at this time. Before submitting an application for entitlements for this Project, the applicant is requesting a development agreement (DA) between the applicant and the City, pursuant to Chapter
15.45 (Development Agreements) of the Newport Beach Municipal Code (NBMC), which would provide the applicant with the vested right to develop the Project for a term of five years and to provide negotiated public benefits to the City.
RECOMMENDATION
1) Conduct a public hearing;
2) Find this Development Agreement is not subject to further environmental review pursuant to Section 21083.3 of the California Public Resources Code (PRC) and Section 15183 of the CEQA Guidelines because the Development Agreement is consistent with the previously certified Program Environmental Impact Report (SCH No. 2023060699); and
3) Adopt Resolution No. PC2026-025 recommending the City Council approve the Development Agreement filed as PA2025-0019 (Attachment No. PC 1).
Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
VICINITY MAP
GENERAL PLAN ZONING
LOCATION GENERAL PLAN ZONING CURRENT USE
ON-SITE Parks and Recreation (PR) Newport Beach County Club Planned Community (PC47)
Newport Beach Country
Club and Golf Course
NORTH General Commercial
Office (CO-G) Office-General (OG) Bank
SOUTH
Multiple Residential (RM),
General Commercial (CG),
and PR
Villa Point Apartments
Planned Community (PC30),
Use Permit No. 3641, and
PC47
Multi-family residential
and Armstrong Garden
Center
EAST RM and Visitor Serving
Commercial (CV)
Santa Barbara Residential
Planned Community (PC54)
and Commercial VisitorServing (CV)
Multi-family residential
(Granville) and Hotel
WEST RM Sea Island Apartments
Planned Community (PC21) Multi-family residential
Subject Property
Site ID No. 353
(Project Site)
Site ID No. 354
Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
INTRODUCTION
Project Setting
The 128.49-acre property of the Newport Beach Country Club (NBCC) and golf course is generally bounded by Jamboree Road to the west, East Coast Highway to the south, Santa Barbara Drive to the north, and intervening development towards the east along Newport Center Drive (Property). The Property is primarily surrounded by multi-family residential developments with Fashion Island located approximately 520 feet to the east.
Figure 1, the Newport Beach Country Club and Golf Course Background
Housing Opportunity (HO) Overlay Zoning District
On September 24, 2024, the Newport Beach City Council adopted Ordinance Nos. 2024- 16 and 2024-17, approving amendments to Title 20 (Planning and Zoning) of the Newport Subject Property
Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
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) of the NBMC and to create multi-unit objective design standards in Section
20.48.185 (Multi-Unit Objective Design Standards) of the NBMC. The new sections serve to implement Policy Actions 1A through 1G and 3A in the 6th Cycle Housing Element of the General Plan. Properties identified as a Housing Opportunity Site have 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. The multi-unit objective design standards are applicable to any residential project with a minimum density of 20 dwelling units per acre to ensure the highest possible design quality and provide a baseline standard for new multi-unit developments throughout the City.
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 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)
• 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 development limit that identifies the maximum number of dwelling units allowed.
The Property is categorized as Parks and Recreation (PR) by the General Plan and located within the Newport Beach Country Club Planned Community (PC47) Zoning District. Although the entire Property is not considered a Housing Overlay Site, the Property has two areas within the HO-4 (Newport Center Area) Subarea, Site ID No. 353 located towards the northeastern portion of the Property and Site ID No. 354 located towards the south of the Property, as shown in Figure 2 below (HO Sites). The Project will be located within Site ID No. 353 (Project Site). 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. Figure 2 below depicts properties identified as housing sites within the HO-4 Subarea and eligible for the development of housing pursuant to the Housing Overlay of the NBMC.
Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
Figure 2, HO-4 (Newport Center Area) Subarea map
Subject Property
HO Site ID No. 353
(Project Site)
HO Site ID No. 354
Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
Coastal Land Use Plan and Title 21 Amendment
In addition to the approved amendments to Title 20 as discussed above, implementation of the Housing Overlay in the coastal zone required an amendment to the City’s Local Coastal Program (LCP) which consists of the Coastal Land Use Plan (CLUP) and the Implementation Plan (IP), or Title 21, of the NBMC. The CLUP sets forth goals, objectives, and policies that govern the use of land and water in the coastal zone within the City and its sphere of influence, except for Newport Coast and Banning Ranch. Title 21 provides the zoning and development standards for those properties within the coastal zone.
On July 23, 2024, the Newport Beach City Council adopted Resolution No. 2024-52 authorizing the submittal of the corresponding Local Coastal Program Amendment (LCPA) to the California Coastal Commission (CCC) to amend the City's CLUP and Title 21 of the NBMC. The LCPA would establish the Housing Overlay Coastal Zoning Districts and their corresponding development standards applicable to properties located within the coastal zone to implement the Housing Element. The amendments would be complementary to the General Plan Land Use Element and Title 20 and included updated and new policies to implement the Housing Element programs and strategies. The City submitted the LCPA application to the CCC on August 16, 2024, and it was deemed filed by CCC staff on January 7, 2025.
On April 17, 2026, the CCC considered the LCPA, identified as LCPA No. LCP-5-NPB-24- 0032-2, to incorporate changes to both the CLUP and Title 21 of the NBMC to establish the Housing Overlay on selected parcels within the coastal zone. The LCP amendments were approved with suggested modifications by the CCC.
On May 26, 2026, the Newport Beach City Council adopted the LCPA with the CCC’s suggested modifications to the CLUP through Resolution No. 2026-30. Subsequently, on June 9, 2026, the City Council adopted the suggested modifications to Title 21 of the NBMC through Ordinance No. 2026-05.
On July 9, 2026, the CCC certified the LCPA and the Housing Overlay became effective in the coastal zone. The amendments included the two HO Sites on the Property.
Project Description
Pursuant to Chapter 15.45 (Development Agreements) of the NBMC, the applicant is requesting a development agreement (DA) with the City for vested rights to develop up to 78 residential dwelling units on the Project Site.
No specific design for the Project is included in this application, and no construction is proposed. Buildout of the Project would require future entitlements, including but not limited to, a site development review and a tentative tract map by the Planning Commission prior to building permit issuance.
Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
The proposed DA, which is described in more detail below, would provide the applicant with the vested right to develop the Project for a term of five years and a requirement to provide negotiated public benefits to the City.
DISCUSSION
Development Agreement
Pursuant to Section 15.45.020(A)(2)(a)(Development Agreement Required) of the NBMC, a DA is not required because the Project does not include a legislative act (i.e., a General Plan Amendment or Zoning Code Amendment) nor does the City’s 6th Cycle General Plan Housing Element require applicants to enter into DAs to develop housing units located on Housing Opportunity Sites. Nonetheless, the applicant is requesting a voluntary DA to vest rights to develop the Project for a term of five years. Additionally, the Project will be required to pay public benefit fees as part of the DA. The Project would also voluntarily provide much-needed housing opportunities in the City in furtherance of the certified Housing Element.
The DA provides assurance that the applicant may proceed with the Project in accordance with existing policies, rules and regulations, and conditions of approval.
Additionally, the DA helps the applicant avoid a waste of resources and escalated costs of the Project while encouraging a commitment to private participation in comprehensive planning.
Public Benefits
Article 3 (Public Benefits) of the draft DA outlines the public benefits due to the City in exchange for vested development rights. Pursuant to Section 3.1 (Public Benefit Fee), the applicant will be required to pay a public benefit fee of $128,205 per residential unit, paid prior to the issuance of the grading permit, for any portion of development of the 78 residential units. The public benefit fee is inclusive of Park Fees and Development Impact Fees (DIFs), adopted by the City pursuant to Resolution Nos. 2024-75 and 2024-83. The City anticipates that the Park Fees will be approximately $60,000 per unit and DIFs will be roughly $9 per square foot of development. Any remaining fees, up to the $128,205 maximum per unit, may be used for any public purpose at the discretion of the City Council. In contrast, the Park Fees and DIFs must be used for the intended public purpose (i.e., parks, recreation, police, fire, water, and sewer).
As required by Subsection 3.1.1 (Consumer Price Index [CPI] Increase), of the DA, the public benefit fee shall be increased based upon percentage increases in the Consumer Price Index (CPI) as provided in the DA. Assuming all units are developed, this would result in a potential public benefit fee of $9,999,990, before any CPI escalation is applied.
Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
Importantly, separate payment of Traffic Fair Share Fees and San Joaquin Hills Transportation Corridor Agency Fees would be required and are not included within the public benefit fee.
General Plan Consistency
The Project is consistent with the Goals and Policies of the recently updated General Plan, adopted in June 2026. Pursuant to General Plan Land Use Element Policy LU-11.1 (Residential Uses and Residential Densities [Focus Area]), residential use of any property included within an established housing opportunity overlay zoning district is allowed regardless of the underlying land use category or density limit established through Table LU-1 (Anomaly Locations) and Table LU-2 (Land Use Designations). An amendment to the General Plan is not required to develop residential uses within an established housing opportunity zoning overlay district. Therefore, although the Project Site has a General Plan land use category of Parks and Recreation (PR), a general plan amendment is not required to implement the Project because the Project proposes to vest the rights for the development of residential uses located within the HO-4 (Newport Center Area) Subarea of the Housing Overlay.
Additionally, General Plan Land Use Element Policy LU-1.7 (Housing Opportunity Overlay) supports the development of housing in the housing opportunity overlay zones consistent with the densities and development limits identified in the Zoning Code and Table LU-3 (Housing Opportunity Overlay). The DA will support the future development of the Project, which will comply with the development standards and densities pursuant to Section 20.28.050 of the NBMC and General Plan policies that pertain to design, compatibility, lighting, public views, etc.
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 (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.
The Project is not subject to further environmental review pursuant to Section 21083.3 of the California Public Resources Code (PRC) and Section 15183 of the CEQA Guidelines because, inasmuch as the Property is within the HO-4 Subarea, the 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.
Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
Section 15183 of the CEQA Guidelines provides, in relevant part:
a. Projects which are consistent with the development density established by existing zoning, community plan, or general plan policies for which an environmental impact report (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 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 limit the analysis of only those significant environmental effects for which:
i. Each public agency with authority to mitigate any of the significant effects on the environment identified in the EIR on the planning or zoning action undertakes or requires others to undertake mitigation measures specified in the EIR which the lead agency found to be feasible, and Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
ii. The lead agency makes a finding at a public hearing as to whether the feasible mitigation measures will be undertaken.
e. An effect of a project on the environment shall not be considered peculiar to the project or the parcel for the purposes of this section if uniformly applied development policies or standards have been previously adopted by the city or county with a finding that the development policies or standards will substantially mitigate that environmental effect when applied to future projects, unless substantial new information shows that the policies or standards will not substantially mitigate the environmental effect. The finding shall be based on substantial evidence which need not include an EIR. Such development policies or standards need not apply throughout the entire city or county but can apply only within the zoning district in which the project is located, or within the area subject to the community plan on which the lead agency is relying.
Moreover, such policies or standards need not be part of the general plan or any community plan but can be found within another pertinent planning document such as a zoning ordinance.
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 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 September 2026, and peer reviewed by Kimley-Horn & Associates, Inc., is provided as Exhibit “C” to Attachment No. PC 1 of this staff report and hereby incorporated by reference. The consistency analysis concluded that 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.
Summary and Next Steps
The Project is consistent with the HO-4 Subarea of the Housing Overlay and will help the City further the Goals and Policies of its Housing Element of the General Plan through the potential development of 78 new residential units.
Pursuant to Section 15.45.050 (Development Agreements – Public Hearing-Notice) of the NBMC, the Planning Commission’s role is to make a recommendation to the City Council for action. If a supportive recommendation is made, City staff intends to bring the matter to the City Council for consideration on October 13, 2026.
Fairway Three (PA2026-0019)
Planning Commission, September 17, 2026
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:
____________________________
Jenny Hannsun, Associate Planner
LAW/jt
Submitted by:
____________________________
Liz Westmoreland, AICP
Deputy Community Development Director
ATTACHMENTS
PC 1 Draft Resolution