RESOLUTION NO. 25-137
AN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE APPROVING PUBLIC HEARING PROJECT 25-343 TO AMEND COMMERCIAL SITE PLAN PERMIT (SPP) 99-16 AND CONDITIONAL USE PERMIT (CUP) 99-17 TO MODIFY THE PREVIOUSLY APPROVED HOTEL AT 401 W. AVENIDA VISTA HERMOSA TO ALLOW FOR AN INCREASE IN HEIGHT FROM 45 FEET TO 62 FEET TO INCORPORATE A ROOFTOP RESTAURANT WITH OUTDOOR DINING; AND FINDING THAT ADDENDUM NO. 6 TO THE MCSP FINAL ENVIRONMENTAL IMPACT REPORT DEMONSTRATES NO NEW SIGNIFICANT IMPACTS AND THAT NO FURTHER ENVIRONMENTAL REVIEW IS NEEDED, CONSISTENT WITH CEQA GUIDELINES §15162 AND §15183 WHEREAS, on June 23, 1998, the City Council certified the Final Environmental Impact Report (FEIR) for the Marblehead Coastal Specific Plan (MCSP) (State Clearing House [SCH] No. 1995091037); and WHEREAS, on August 5, 1998, the City Council approved General Plan Amendment 95-01, Specific Plan 95-02, Tentative Tract Map (TTM) 8817, Site Plan Permit (SPP) 97-16, and a Development Agreement; and WHEREAS, on July 7, 1999, the City Council approved Site Plan Permit 99-16, Conditional Use Permit 99-17, and Sign Exception Permit 99-18, revising the commercial portion of the project to consist of 700,140 gross square feet of commercial uses, including 443,860 SF of specialty retail, 176,232 SF of entertainment, and 80,048 SF of general retail; and WHEREAS, on April 9, 2003, the California Coastal Commission (CCC) conditionally approved the Marblehead Coastal project, acknowledging that most, but not all, of the property lies within the Coastal Zone. Land outside of the Coastal Zone, including the subject site, does not fall under CCC jurisdiction. The plan approved by the CCC incorporated requirements that preserved additional environmentally sensitive habitat areas, set development back from preserved areas, required substantial restoration and enhancement of degraded open space, reduced the number of residential lots from 424 to 313, and approved 141,500 square feet of commercial space within the Coastal Zone; and WHEREAS, on September 16, 2003, the City Council approved an Amendment to TTM 8817 to reconcile differences between the CCC approval and the City’s prior approval; and WHEREAS, on July 20, 2004, the City Council adopted Resolution 04-61, which certified Addendum No. 5 to the MCSP Final Environmental Impact Report (FEIR) and approved an amendment to commercial Site Plan Permit 99-16, to include the addition of a hotel and conference center; and WHEREAS, the 2004 approval denoted an anticipated maximum parking demand of 3,061 parking spaces for the entirety of the commercial site plan development, including 349 spaces for the hotel (211 for hotel rooms and 138 to support the conference center); and WHEREAS, impacts of all parking spaces at the Outlets were fully analyzed in the Final EIR for the original project, including 3,718 parking spaces; and subsequent amendments and addenda analyzed alterations to the parking supply finally arriving at a count of 3,264 as approved by the Amended Commercial Site Plan 99-16 in 2004, rendering a surplus of 203 spaces; and WHEREAS, the City and Coastal Commission approved conversion of buildings 9-11 from retail and restaurant use to medical use in 2020 and 2022 respectively, resulting in an additional surplus of 34 parking spaces; and WHEREAS, the City approved a substantial conformance plan set in January of 2019 (B19-099) for a four-story hotel and conference center comprising 133,515 square feet with 130 guest rooms, a conference center, lobby restaurant, and outdoor pool, with a total parking demand of 309 spaces; and WHEREAS, this 2025 proposed amendment would allow an increase in height from 45 feet to 62 feet to establish a roof deck restaurant, with an updated project parking demand of 356 parking spaces; and WHEREAS, the net increase in parking demand (47 spaces) is less than the available surplus of 237 spaces; and WHEREAS, on June 25, 2025, the City Council adopted Resolution 25-085, which, among other things, directed staff to initiate an amendment to the MCSP and carry out required environmental review to establish additional height allowances for the hotel building on the Outlets property consistent with height allowances for other landmark structures, including the theater building; and WHEREAS, the City of San Clemente has prepared Addendum No. 6 to the certified MCSP FEIR to evaluate the proposed modification to MCSP Section 502(V)(D) through Zoning Amendment ZA25-362, which would designate the hotel as eligible for the same maximum 62-foot height exception currently provided for the theater and clock tower; and WHEREAS, pursuant to CEQA Guidelines Sections 15162 and 15164, the City as Lead Agency has determined that the proposed modification would not result in new significant environmental effects or substantially more severe impacts than those previously analyzed in the certified FEIR; and WHEREAS, the City has further determined that the Addendum demonstrates consistency with the Centennial General Plan, including policies that encourage visitor-serving lodging near freeway interchanges, preserve public view corridors, and ensure compatibility with community character; and WHEREAS, on September 16, 2025, the City Council introduced Ordinance No. 1795 (Ordinance) to certify Addendum No. 6 to the Marblehead Coastal Specific Plan Final EIR (SCH No. 1995091037) and to amend Section 502 (V)(D) within the Marblehead Coastal Specific Plan (MCSP) to effectuate the Project and the City Council’s directives on the same; and WHEREAS, on December 3, 2019, an application was submitted by Lodge at San Clemente, LLC, 4100 Macarthur Blvd 100, Newport Beach, CA, 92660 to request to amend previously approved commercial Site Plan Permit 99-16 and Conditional Use Permit 99-17 to increase the height of the previously approved hotel to incorporate a roof top restaurant with outdoor dining; and WHEREAS, the City's Development Management Team reviewed the proposed amended project for consistency with the General Plan policies and other applicable City ordinances and policies; and WHEREAS, the Design Review Subcommittee reviewed the 2004 project between November 24, 2003, and June 7, 2004; and subsequently reviewed the amended project proposal on June 10, 2020; and WHEREAS, on September 16, 2025, the City Council of the City of San Clemente held a duly noticed public hearing on the subject application in accordance with SCMC 17.12.180 (Applicant Requests to Change Approved Applications) and considered evidence presented by City staff, the project applicant and other interested parties.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
SECTION 1. Incorporation of Recitals. The City Council hereby finds that all of the facts in the Recitals are true and correct and are incorporated fully herein and adopted as findings of the City Council.
SECTION 2. CEQA Findings. The City Council hereby finds, based on substantial evidence in the record as a whole, that as demonstrated in the analysis of Addendum No. 6 to the Final Environmental Impact Report for the Marblehead Coastal Specific Plan (SCH No. 1995091037), the proposed modification would not result in new significant environmental effects. The proposed modification would also not substantially increase the severity of previously identified significant effects, and no new mitigation measures or alternatives are required. No new information, not known at the time of the prior analyses, has been disclosed that shows the potential for any new or more severe impacts. An Addendum is therefore the appropriate environmental document under CEQA Guidelines Section 15164. Following the City Council’s certification of Addendum No. 6 to the Marblehead Coastal Specific Plan FEIR (SCH No. 1995091037), no further environmental review is required, consistent with CEQA Guidelines Sections 15162.
The City Council hereby finds, based on substantial evidence in the record as a whole, that, as demonstrated in the analysis within Addendum No. 6 to the Final Environmental Impact Report for the Marblehead Coastal Specific Plan (SCH No. 1995091037), the project also qualifies for streamlined review under CEQA Guidelines section 15183. Section 15183 allows streamlined CEQA review for projects that are consistent with the development density established by existing zoning, community plan, or general plan policies for which an EIR was previously certified. Section 15183 requires the lead agency to determine whether there are project-specific significant effects which are peculiar to the project or its site that were not analyzed as significant effects in the prior EIR; that are potentially significant off-site impacts and cumulative impacts that were not discussed in the prior EIR; or that are previously identified significant effects that, as a result of substantial new information that was not known at the time the EIR was certified, will have more severe adverse impacts than discussed in the prior EIR. In this case, the City Council hereby finds, based on substantial evidence in the record as a whole, that the project is precisely the kind of project envisioned in Addendum No. 6 to the FEIR, which was adopted per current general plan, community plan, and zoning requirements. The project description assessed in Addendum No. 6 to the 1998 EIR included the development of a hotel and conference center within the Marblehead Coastal Specific Plan, and the increase in height to 62 feet to accommodate a rooftop restaurant and elevator towers will not produce any new or more severe impacts that were not discussed in the FEIR, in Addendum No. 6 to the FEIR, and other prior analyses.
SECTION 3. Amendment Findings and Conditions. With respect to PHP25-343 to amend Commercial Site Plan Permit (SPP) 99-16 and Conditional Use Permit (CUP) 99-17, the City Council affirms the findings made within Resolution 04-61, with the following revisions (added text is in bold, underline; deleted text is in strike-through):
Section 2 (F)(1) is revised to state: “The proposed commercial uses comply with the maximum 45-foot height limit of the Marblehead Specific Plan Regional Commercial zone. The theater and hotel comply complies with the maximum 55-foot height limit and a maximum architectural projection of 62-feet.” Section 2 (E)(4) is added to state: “Addendum 6 was prepared to evaluate an increase in allowable height for the hotel use and demonstrates that the proposed modification is consistent with the goals and policies of the City of San Clemente Centennial General Plan (City of San Clemente, 2014). The General Plan encourages visitor-serving uses such as lodging within the Marblehead Coastal commercial area (Policy ED-4.05), and requires new development to be compatible with community character (Policy LU-2.01). The General Plan also places strong emphasis on protection of public views (Policy UD-2.05 and Policy UD-5.14). As discussed in Addendum Chapter 3 and Chapter 4, the proposed height exception for the hotel would remain consistent with these policies, since it applies to a previously approved visitor-serving lodging use, does not alter approved setbacks or intensity, and would be subject to design review procedures that ensure compliance with the City’s Spanish Colonial Revival architectural standards.
Section 2 (A)(4) is added to state: “The project is consistent with General Plan Policy ED-4.05, which encourages visitor-serving uses such as lodging within the Marblehead Coastal commercial area; Policy LU-2.01, which emphasizes compatibility of new development with community character; and is consistent with the Marblehead Coastal Specific Plan goal.
Section 2 (A)(5) is added to state: “The project directly achieves the first four objectives of the Marblehead Coastal Specific Plan which are to:
Provide for a variety of land uses within the Specific Plan area capable of generating significant new tax revenues to the City.
Promote Regional Commercial Uses to Generate Sales Tax Revenues.
Enhance Existing and Future Public Access to the Coast.
Enhance Future Public Recreation Opportunities along the Shoreline by Providing Upland Recreation and Visitor-Serving Areas Designed to Support Recreational Use of Public Beaches in the City.
The following Conditions of Approval are appended to those existing conditions enumerated under Exhibit 1 of Resolution 04-61:
(Condition 86): Planning: Roof Deck Noise and Lighting. Amplified noise or entertainment are not requested or approved through this resolution. Should the applicant, in the future, wish to provide amplified sound, live entertainment, or different lighting systems that require additional discretionary review, the property owner shall submit a future amendment for review by the Planning Commission, not requiring approval by the City Council, unless appealed. (Condition 87): Orange County Fire Authority (OCFA) Plan Submittal: The applicant or responsible party shall submit the plan(s) listed below to the OCFA for review. Approval shall be obtained on each plan prior to the specified event:
Prior to OCFA clearance of a final map or issuance of a precise grading permit or a building permit, if a grading permit is not required:
fire master plan (service code PR145)
alternative methods and materials (AM&M) request (PR910) Prior to issuance of a building permit:
architectural for Group R-1 Occupancy (service codes PR268) and for Group A-2/A-3 Occupancies (service code PR200) tanks storing hazardous materials (service codes PR300), if a diesel generator will be included in the scope of work battery (service code PR375), if a back-up battery system will be included in the scope of work emergency responder radio system design (service code PR928); this submittal may be deferred when acceptable to the Building Department, but the required conduit must be installed prior to concealing interior construction underground piping for private hydrants and fire sprinkler systems (service code PR470-PR475) Prior to concealing interior construction:
fire alarm system (service code PR530)
fire sprinkler system (service codes PR425).
hood and duct extinguishing system (service code PR335) Prior to occupancy:
emergency responder radio system testing (service code PR928) (Condition 88): Emergency Responder Digital Radio System: An emergency responder digital radio system shall be provided in this structure. Refer to CFC 510 and the OCC/OCFA DAS/BDA guidelines (available at ocfa.org) for requirements. Evidence of compliance with emergency responder digital radio system design and performance criteria shall be provided prior to occupancy. (Condition 89): Temporary/Final Occupancy Inspections: Prior to issuance of temporary or final certificate of occupancy, all OCFA inspections shall be completed to the satisfaction of the OCFA inspector and be in substantial compliance with codes and standards applicable to the project and commensurate with the type of occupancy (temporary or final) requested. Inspections shall be scheduled at least five days in advance by calling OCFA Inspection Scheduling at 714-573-6150.
SECTION 4. Approval of PHP25-343. The City Council hereby approves Zoning Amendment PHP25-343 to amend Commercial Site Plan Permit (SPP) 99-16 and Conditional Use Permit (CUP) 99-17 to modify the previously approved hotel at 401 W. Avenida Vista Hermosa to allow for an increase in height to 62 feet to incorporate a rooftop restaurant with outdoor dining subject to the above conditions of approval and those set forth in Exhibit 1 of Resolution 04-61.
SECTION 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this _____ day of ____________________, _______.
ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-137 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
4934-9616-2407 v1
4934-9616-2407 v1
Resolution No. 25-137 Page 2
Attachment 1