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HomeMy WebLinkAboutCity Council - 2007-42 RESOLUTION NO 2007-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, WHICH ACKNOWLEDGES RECEIPT OF THE COASTAL COMMISSION ACTION AND ACCEPTS AND AGREES TO LOCAL COASTAL PROGRAM AMENDMENT NO. 2-06 AS MODIFIED WHEREAS, the California Coastal Commission reviewed and approved Huntington Beach Local Coastal Program Amendment No. 2-06 as modified at the April 11, 2007 Coastal Commission hearing; and Section 13537 of the Coastal Commission Regulations requires the local government to accept and agree to the modifications by resolution within six (6) months, or certification will expire; and Upon the City Council action staff will forward Resolution No. 2007-42 for final Coastal Commission certification; NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: Section 1. The City Council accepts and agrees to the Coastal Commission's approval of Local Coastal Program Amendment 2-06 by modifying Specific Plan 5 (Downtown Specific Plan, Districts 7 & 9),the City of Huntington Beach Zoning and Subdivision Ordinance (Chapters 203, 204 and 211) and the Coastal Element of the certified Local Coastal Program as suggested by the Coastal Commission in the letter dated July 2, 2007, attached hereto as Exhibit"A" and incorporated by this reference as though fully set forth herein. Said suggested modifications shall become effective 30 days after adoption of Resolution No. 2007-42 or upon final Coastal Commission certification, whichever occurs latest. 1 07-1095/12094 Resolution No. 2007-42 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held on the 16th day of ul v 2007. e Me� or APPROVED AS TO FORM: -72- 07 City Att rney INITI ED AND APPROVED: 2 v7 Planning E6ector 2 07-1095/12094 EXHIBIT A Exhibit"A" Resolution No.2007-42 CALIFORNIA COASTAL COMMISSION South coast Area office 200 oceangate,Suite 1000 Long Beach,CA 90802-4302 (562)&s0-5071 July 2, 2007 Scott Hess Planning Director City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re: Huntington Beach LCP Major Amendment No. 2-06 ("Timeshares") Dear Mr. Hess: In a letter dated April 24, 2007 we notified you that the California Coastal Commission, at its April 11, 2007 meeting in Santa Barbara, adopted revised findings reflecting the Commission's action of October 12, 2006 approving City of Huntington Beach Local Coastal Program Amendment No. 2-06 with modifications. Local Coastal Program (LCP) Amendment No. 2-06 is reflected in City Council Resolution No. 2005-20. The approved amendment, as modified, would allow limited ownership overnight visitor accommodations within limited areas of the Visitor Serving Commercial land use designation and zoning, under specific circumstances. The Commission approved the LCP amendment subject to suggested modifications. The April 24, 2007 letter indicated that the suggested modifications as approved by the Coastal Commission were attached. However, the suggested modifications that were attached to that letter did not include changes adopted by the Commission via a March 30, 2007 addendum to the Commission's staff report. Please find attached to this letter the suggested modifications as they were adopted by the Coastal Commission at its April 11, 2007 meeting in Santa Barbara. The April 24, 2007 letter is enclosed for your reference. Thank you for your cooperation and we look forward to working with you and your staff in the future. Please call Meg Vaughn or myself at (562) 590-5071 if you have any questions regarding the modifications required for effective certification of City of Huntington Beach LCP Amendment No. 2-06. Sincerely Teresa Hen ry District Manager cc: Mary Beth Broeren, Principal Planner NNB LCPA 2-06 psthrg W sgmd crtn 7.2.07 my Exhibit"A" Resolution No.2007-42 APPENDIX A HNH LCPA 2-06 Suggested Modifications Certification of City of Huntington Beach LCP Amendment Request No. 2-06 is subject to the following modifications. Suggested Modifications Nos. 1-13 are modification to the Land Use Plan. Suggested Modifications 14-34 are modifications to the Implementation Plan. The City's existing language is shown in plain text. The City's proposed additions are shown in bold text The City's proposed deletions are shown in The Commission's suggested additions are shown in bold, italic, underlined text. The Commission's suggested deletions are shown in boA UaUG, underkne spike out ta* Text added as a result of the Commission's action is shown in boa ita_ft, double underline. Text removed as a result of the Commission's action is shown in double • d-prilne_ct�l.e G11t tevIa. t The more significant changes made as a result of the Commission's action are found on pages 10, 11, 13, 15—22. Note: The numbering used in the suggested modification below may be re- numbered as necessary to conform to the format of the existing certified LCP document. LAND USE PLAN 4 SUGGESTED MODIFICATION NO. 1 Add the following definition to the Glossary, Huntington Beach General Plan, which is found at the end of the certified Land Use Plan, pages IV-C-146 through IV-C-155, in alphabetical order: Condominium-Hotel—Facility providing overnight visitor accommodations where ownership of at least some of the individual guestrooms (units) within the larger building or complex is in the form of separate Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings Ap012007 Page 2 condominium ownership interests,as defined in California Civil Code section 1351M. The primary function of the Condominium-Hotel is to provide overnight transient visitor accommodations within every unit that is available to the general public on a daily basis year-round, while providing both genera/public availability and limited owner occupancy of those units that are in the form of separate condominium ownership interests. SUGGESTED MODIFICATION NO. 2 Add the following definition to the Glossary, Huntington Beach General Plan, which is found at the end of the certified Land Use Plan, pages IV-C-146 through IV-C-155, in alphabetical order: Fractional.Ownership Hotel-Facility providing overnight visitor accommodations where at least some of the questrooms (units) within the facility are owned separately by multiple owners on a fractional time basis. A fractional time basis means that an owner receives exclusive right to use of the individual unit for a certain Quantity of days per year and each unit available for fractional ownership will have multiple owners. SUGGESTED MODIFICATION NO. 3 Add the following definition to the Glossary, Huntington Beach General Plan, which is found at the end of the certified Land Use Plan, pages IV-C-146 through IV-C-155, in alphabetical order: Hotel OwnerlOperator-- The entity that owns and operates a hotel. If the hotel operator is separate from the hotel owner both are jointly and severally responsible for ensuring compliance with the requirements described in this LCP and/or recorded against the property, as well as iointly and severally liable for violations of said requirements and restrictions. SUGGESTED MODIFICATION NO. 4 Add the following definition to the Glossary, Huntington Beach General Plan, which is found at the end of the certified Land Use Plan, pages IV-C-146 through IV-C-155, in alphabetical order: Limited Use Overnight Visitor Accommodations-Any hotel, motel, or other similar facility that provides overnight visitor accommodations wherein a purchaser receives the right in perpetuity, for life, or a term of years to the 2 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNS LCPA 2-06 Revised Findings April 2007 Page 3 recurrent, exclusive use or occupancy of a lot, parcel. unit, room(s), or segment of the facility, annually or on some other seasonal or periodic basis, for a period of time that has been or will be allotted from the use or occupancy periods into which the facility has been divided and shall include, but not be limited to Timeshare, Condominium-Hotel, Fractional Ownership Hotel, or uses of a similar nature. SUGGESTED MODIFICATION NO. 5 Add the following definition to the Glossary, Huntington Beach General Plan, which is found at the end of the certified Land Use Plan, pages IV-C-146 through IV-C-155, in alphabetical order: Timeshare—Any arrangement, plan, or similar program, other than an exchange program, whereby a purchaser receives ownership rights in or the rl_ght to use accommodations for a period of time less than a full year during any given year, on a recurrin_1 basis for more than one year, but not necessarily for consecutive years. SUGGESTED MODIFICATION NO. 6 Delete the City's proposed new language to Land Use Plan Policy C 3.2.4 (on page IV-C-108)as follows: Timeshares may be permitted in the Commercial General District(CG), and, Mixed Use Districts (M, MH, and MV), mast ��^ „ ^r^j^^* provided that any such project be conditioned as follows: (I-C 1, I-C 2, I-C3, I-C 7) a) That at least twenty-five percent of the units within any given facility be permanently reserved for transient overnight accommodations during the summer season (beginning the day before the Memorial Day weekend and ending the day after Labor Day). b) That the timeshare facility operate as a hotel including requirements for a centralized reservations system, check-in services, advertising, security, and daily housecleaning. SUGGESTED MODIFICATION NO. 7 Add the following new Land Use Plan Policy after existing Policy number 3.2A and re-number policies accordingly: Any hotel rooms for which a certificate of occu ancy has been issued at 3 Exhibit"A" Resolution No.200742 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings Apri12007 Page 4 the effective date of adoption of this Section shall not be permitted to be converted to a Limited Use Overnight Visitor Accommodation. SUGGESTED MODIFICATION NO. 8 Add the following new Land Use Plan Policy after the new policy above (Suggested Modification No. 7)and re-number policies accordingly: Within Commercial Visitor Districts(CV) Limited Use Overnight Visitor Accommodations shall be prohibited except for a Fractional Ownership Hotel in Subarea 4C(Pacific City) and a Condominium-Hotel in Subarea 4D (Waterfront) which shall be subject to the specific restrictions on guantity, management and use of such facilities listed below. SUGGESTED MODIFICATION NO. 9 Add the following new subset(a)to the new Land Use Plan Policy added as Suggested Modification No. 8, above (re-number policies as necessary): a. Fractional Ownership Hotel Area 4C A Fractional Ownership Hotel may be permitted in Area 4C jPacifrc City), described in Table C-2, subiect to the following requirements as well as those contained in Section 4.9.12 of the Downtown Specific Plan: Any hotel rooms for which a certificate of occupancy has been issued at the effective date of adoption of this Section shall not be permitted to be converted to a Limited Use Overnight Visitor Accommodation. A minimum of 90% of the total number of guestrooms (units) within the Fractional Ownership Hotel facility shall be available to the_general public as traditional use hotel rooms near-round. A maximum of 10% of the total number of units within the facility may be owned by separate individual entities on a fractional time basis. Fractional interests sold shall not exceed three month (%) intervals within any one-year period. The hotel owner/operator shall retain control and ownership of all land, structures, recreational amenities, meeting space, restaurants, "back of house"and other non-quest facilities. The non-fractional use guestrooms(units)shall be available to the_general public on a daily, year-round basis. The facility shall have an on-site hotel operator to manage rental of all questrooms/units. 4 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 5 The hotel operator shall manage aH guestrooms/units as part of the hotel_ inventory. which mana- eg ment shall include the booking of reservations, mandatory front desk check-in and check-out, maintenance, cleaning services and preparing units for use by_quests and owners. When an individual owner chooses not to occupy his/her unit, that unit shall be added to the pool of hotel rooms available to the general public. Fractional time owners shall have limited rights to use their units including a maximum use of 90 days per calendar year with a maximum of 29 consecutive days of use durin4 any 60 day period. SUGGESTED MODIFICATION NO. 10 Add the following new subset (b)to the new Land Use Plan Policy added as Suggested Modification No. 8, above (re-number as necessary): b. Condominium-Hotel Area 4D A Condominium-Hotel may be permitted in Subarea 4D (Waterfront), described in Table 0-2. subject to the following reguirements as well as those contained in Section 4.11.13 of the Downtown Specific Plan; Any hotel rooms for which a certificate of occupancy has been issued at the effective date of adoption of this Section shall not be permitted to be converted to a Limited Use Overnight Visitor Accommodation. t.9% of the g sw iraam/wfis usifhin fhw randaminiss HGAft f=a/1➢tv e.h.+ll hw rwf._+;-&d in w..snwrt•hi.+ by the hotel w..sefwr/anar+tar yf/// e d a •mites airailabla is tha aanwrr+l aubliw en raeend bas ig 4 mwvi esm of 75 wf fh e_sfraam/s. ii ueifhln fha e.Iwm/nisem_L/wfaI f i/iirs may ha e•s,hediv'elwd infer semi .+iw aminieem far w.+/w .. i e/ivie/.ewl auer.wr h' inferrer in The hotel owner/operator shall retain control and ownership of all structures, recreational amenities, meeting space, restaurants, "back of house"and other non-guest facilities. When the Condominium-Hotel is located on land owned by the City, the hotel ownerloperator shall be a leaseholder of the land upon which the Condominium-Hotel exists. The Condominium-Hotel facility shall have an on-site hotel operator to manage rentabbooking of all questrooms units. The hotel operator shah manage ail guestrooms/units as part of the hotel 5 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 6 inventory, which management shall include the booking of reservations, mandatory front desk check-in and check-out, maintenance,cleanin_g services and preparin_q units for use by guests and owners. Owners of individual units shall have limited rights to use their units includlnQ a maximum use of 90 days per calendar year with a maximum of 29 consecutive days of use during any 60 day period. When not occupied by the individual owner, each unit shall be available to the-general public in the same manner as the traditional guestrooms/units. SUGGESTED MODIFICATION NO. 11 Add the following new Land Use Plan Policy after existing Policy number 3.2.1 and re-number policies accordingly: Lower cost visitor and recreational facilities shall be,grotected, encourage , and, where feasible, provided. On oceanfront, waterfront or r nearshore areas or lands designated for visitor uses and recreational facilities, an assessment of the availability of lower cost visitor uses shall be completed at the time of discretionary review and an in-lieu fee in an amount necessary to off-set the lack of the preferred lower cost facilities in or near Huntimaton Beach shall be imposed. SUGGESTED MODIFICATION NO. 12 Modify Table C-1, (on page IV-C-26) as follows: Commercial General (CG) Retail commercial, professional offices, eating and drinking establishments, household goods,food sales, drugstores, building materials and supplies, personal services, recreational commercial, hotels/motels, timeshares, evert overnight accommodations, cultural facilities, government offices, educational, health, institutional and similar uses. Commercial Visitor(CV) Hotels/motels, timeshame restaurants, recreation-related retail sales, cultural uses (e.g., museums)and similar uses oriented to coastal and other visitors to 6 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 7 the City. /n Subarea 4C(Pacific City) only. a Fractional Ownership Hotel subject to restrictions may be allowed. In Subarea 4D (Waterfront) only. a Condominium-Hotel subject to restrictions may be allowed. Marine related development such as marinas, retail marine sales, boat rentals, and boat storage which are coastal dependent developments shall have priority over any other type of development(consistent with resource protection)on or near the shoreline. SUGGESTED MODIFICATION NO. 13 Modify Table C-2, (on page IV-C-37) as follows (only those portions of the table to be changed are shown): Subarea Characteristic Standards and Principles 4C Permitted Uses Category: Commercial PCH/First (Lake) Street Visitor("CV) Pacific City Visitor-serving and community-serving commercial uses, restaurants, entertainment hotels/motels, Omesham. a Fractional Ownership Hotej subject to restrictions, and other uses (as permitted by the"CV"and != land use sate o a). 4D Permitted Uses Category: °-F7" Waterfront Hotels/motels, "wham supporting visitor-serving commercial 7 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 8 uses (in accordance with Development Agreement), a Condominium-Hotel sub'ect to restrictions. IMPLEMENTATION PLAN SUGGESTED MODIFICATION NO. 14 In the Downtown Specific Plan Section 4.0.04 (Definitions), delete the proposed timeshares definition: ., r-GGmkJ. or-sgWent of period_ef time that has been or w !be allotted fmm the ce er wet w,i Replace with the following timeshare definition: Timeshare-Any arrangement, plan, or similar program, other than an exchange_program, whereby a purchaser receives ownership rights in or the right to use accommodations for a period of time less than a full year during any given year, on a recurring basis for more than one year, but not necessarily for consecutive years. Add the following definitions to the Downtown Specific Plan Section 4.0.04 (Definitions), in alphabetical order: SUGGESTED MODIFICATION No. 15. Condominium-Hotel-Facility Providing overnight visitor accommodations where ownership of at least some of the individual guestrooms (units) within the larger building or complex is in the form of separate 8 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LC.PA 2-06 Revised Findings Apri12007 Page 9 condominium ownership Interests, as defined in California Civil Code section 13510). The primary function of the Condominium-Hotel is to provide overnight transient visitor accommodations within every unit that is available to the-general Public on a dally basis Year-round,_while providing both genera/public availability and limited owner occupancy of those units that are in the form of separate condominium ownership interests. SUGGESTED MODIFICATION No. 16 Fractional Ownership Hotel-Facility providing overnight visitor accommodations where at least some of the_puestrooms (units) within the facility are owned separately by multiple owners on a fractional time basis. A fractional time basis means that an owner receives exclusive right to use of the individual unit for a certain guandbl of days per year and each unit available for fractional ownership will have multiple owners. SUGGESTED MODIFICATION No. 17 Hotel Owner/Operator- The entity that owns and operates a hotel. If the hotel operator is separate from the hotel owner both areloin!&and severally responsible for ensuring compliance with the reuuirements described in this LCP and/or recorded against the property, as well as iointly and severally liable for violations of said requirements and restrictions. SUGGESTED MODIFICATION No. 18 Limited Use Overnight Visitor Accommodations-Any hotel, mote/i or other similar facility that provides overnight visitor accommodations wherein a purchaser receives the right in D2Metuity, for life, or a term of years, to the recurrent,exclusive use or occupancy of a lot, parcel, unit, roomis), or segment of the facility, annually or on some other seasonal or periodic basis, for a period of time that has been or will be allotted from the use or occupancy periods into which the facility has been divided and shall include, but not be limited to Timeshare, Condominium-Hotel, Fractional Ownership Hotel, or uses of a similar nature. SUGGESTED MODIFICATION NO. 19 Modify the City's proposed addition to Section 4.9.01(b) Permitted Uses, as 9 — Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 10 follows: Timeshare Unots Fractional Ownership Hotel pursuant to section 4.9.12 SUGGESTED MODIFICATION NO. 20 Delete proposed Section 4.9.12 of the Downtown Specific Plan and replace with the following Section 4.9.12: 4.9.12 Fractional Ownership Hotel:May be permitted and shall be conditioned as follows: a) A minimum of 90% of the total number of hotel guestrooms/units within the Fractional Ownership Hotel facilityshall be available as transient hotel rooms. The non-fractional hotel rooms shall be operated as transient overnight visitor accommodations available to the-general public on a daily basis, year-round. b) A maximum of 10% of the total number of_guestrooms/units within the Fractional Ownership Hotel facility may be subdivided into separate saleable units each of which can be owned by multiple owners on a fractional time basis. A fractional time basis means that an owner(or owners)receives an exclusive right to the use of an individual unit for a combined period not to exceed the ap roved time period, which approved time period at the option of the hotel owner/operator may range up to three calendar months, in any one calendar year. c) The hotel owner/operator retains control and ownership of all land] structures, recreational amenities; meeting space, restaurants, "back_ of house"and other non-4uestroom/units. d) The hotel operator shall maintain records of usage by owners and renters and rates charged for all units, and shall be responsible for reporting Transient Occupancy Taxes based on records of use for all units, a service for which the hotel operator may charge the unit owner a reasonable fee. e) No portion of the Fractional Ownership Hotel(neither fractional units nor traditional hotel units) may be converted to full-time occupancy condominium or any other type of Limited Use Overnight Visitor Accommodations or other project that differs from the approved hotel units. t) When an owner of a fractional interest in a unit chooses not to occupy his/her unit for any portion of the time allotted to him/her, that unit shall be available to the_general public on the same basis as the traditional hotel units. 10 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNS LCPA 2-06 Revised Findings April 2007 Page 11 g) Any hotel rooms for which a certificate of occupancy has been issued at the effective date of adoption of this Section shall not be permitted to be converted to a Limited Use Overnight Visitor Accommodation. h) Prior to issuance of a building permit and in Miunction with approval of a coastal development hermit for any tvoe of hotel ity. the landowners) of the propert ftgAj upon which the existin_a and&L approved traditional hotel unit mg-m-s(Le. transient hotel rooms) are or will be developed within District 7 shall ex cute aid_ word a deed restrictions) s biect to the review and approval of the Planning Director and the Executive Director of the CQ&5tVI Commissm which prohibits the conversion of traditional h tel gtlltsLrooms to any other type of ownership -a, a. limited use ovgrn&ht visitor accommo at&ns). T�iP deed restriction shall be N.gbmitted for review and approval of the Plannina Director and the xecufive Director of the Coastal Commission prior to action on the cQpstai development permit The dW restrktLQnW shall run with the land shall be executed and coned to by the existina lessee(s) of the affected propertv(ies) and shall be binding on the landowner(s). /essee(s) and on all successors and assigns of the landowners) and lessee(s),including without limitation any future lienholders The deed restriction(.41 shall not be removed or han�gd without a2proyal of an amend eat to the LCP AV th!e Coastal Commission and to the un er/vinru goastal development,permi How-everminor changes that do not conflict with_subsection a)and g) above may be processed as an- mendment to the coastal deye�nf permit only unless it is determined by the Director of Planning and the Executive Director of the Coastal Commissionlat an endment is not lega&re wired. -' i) Fractional time owners shall have the right to the use of their units Including a maximum use of 90 days per calendar year with a maximum of 29 consecutive days of use during any 60 day period. j) The hotel owner/operator shall be required to submit, prior to issuance of a coastal development permit, for the review and approval of the Director of Plannina, a Declaration of Restrictions or CC& Rs (Covenants, Conditions&Restrictions), either of which shall include: ?. All the specific restrictions listed in a through I above: 2. Acknowledgement that these same restrictions are independently imposed as condition requirements of the coastal development permit: I A statement that provisions of the Declaration= & R's that reflect the requirements of a through i above cannot be changed without approval of an LCP amendment by the it Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) NNB LCPA 2-06 Revised Findings April 2007 Page 12 Coastal Commission and subsequent coastal development Permit amendment. However, minor changes that do not conflict with a)-i) above may be processed as an amendment to the coastal development permit, unless it is determined by the Director of Planning that an amendment is not legally required. if there is a section of the Declaration/CC&R's related to amendments, and the statement provided pursuant to this paragraph is not in that section, then the section on amendments shall cross-reference this statement and clearly indicate that it controls over any contradictory statements in the section of the Declaration/CC&R's on amendments. k) The CC&R's or Declaration of Restrictions described above shall be recorded against all Individual property titles simultaneously with the recordation of the condominium airspace map. 1) The provisions of the CC&R's or Declaration of Restrictions described above shall not be changed without approval of an amendment to the LCP by the Coastal Commission. However minor changes that do not conflict with a) through k)above may be processed as an amendment to the coastal development permit, unless it is determined by the Director of Planning that an amendment is not legally required. m) The hotel ownerloperator or any successor-in-interest hotel owner/operator shall maintain the legal ability to ensure compliance with the terms and conditions stated above at all times in oemetuity and shaft be responsible in all respects for ensuring that all parties subject to these restrictions comply with the restrictions. Each owner of a fractional Interest in a unit is iointly and severally liable with the hotel ownerloperator for violations of the terms and conditions hereof Imposed by the special conditions of the coastal development permit. Violations of the coastal development permit can result in penalties pursuant to Public Resources Code Section 30820. n) All documents related to the marketing and sale of the fractional interest units, including marketing materials, sales contracts deeds, CC & R's and similar documents, shaft notify buyers of the following: 1. The owners of a fractional interest in a unit are iointiv and severally liable with the hotel owner/operator for any violations of the terms and conditions hereof imposed by the coastal development permit. 2. The occupancy of the units is restricted to 90 days per calendar year with a maximum of 29 consecutive days of use during any 60 day period, and when not in use by the owner, the unit shall be made available for rental by the hotel operator 12 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 13 to the_general,public and that the coastal development permit contains additional restrictions on use and occupancy o) The hotel owner/operator and any successor-in-interest hotel owner/operator, and each future owner of a fractional interest in a unit shall obtain,prior to sale of a fractional interest a written acknowledgement from the buyer that occupancy by the owner is limited to 90 days per calendar year with a maximum of 29 consecutive days of use during any__60 day period, that the unit must be available for rental by the hotel operator to the-general public when not occupied by the owner, and that there are further restrictions on use and occupancy in the coastal development permit and the CC& R's or Declaration of Restrictions. p) The hotel owner/operator and any successor-in-interest hotel ownedoperator shall monitor and record hotel occu ancv and use by the_general public and the owners of a fractional interest in a unit throughout each year. The monitoring and record keeping shall include specific accounting of owner usage for each individual guestroom/unit. The records shall be sufficient to demonstrate compliance with the restrictions set forth in a through 1 above. The hotel ownerl-operator shall also maintain documentation of rates paid for hotel occupancy and of advertising and marketing efforts. All such records shall be maintained for ten years and shall be made available to the City, and to the aenerat Dub Executive Director of the Coastal Commission upon request and to the auditor required by section g below. Within 30 days of commencing hotel operations, the hotel owner/operator shall submit notice to the Director of Planning and to the Executive Director of the California Coastal Commission of commencement of hotel operations. q) Within 90 days of the end of the first calendar year of hotel operations, and within 90 days of the end of each succeeding calendar year, the hotel ownerloperator shall retain an independent auditing companZr approved by the Director of Planning, to perform an audit to evaluate compliance with special conditions of the coastal development permit which are required by this Section regardin_-g notice, recordkeepinQ, and monitoring of the Fractional Interest Hotel. The audit shall evaluate compliance by the hotel ownerloperator and owners of fractional Interests in a unit during the prior calendar year period. The hotel owner/operator shall instruct the auditor to prepare a report identifyin-g the auditor's findings, conclusions and the evidence relied upon, and such report shall be submitted to the Director of Planning, for review and approval, and sha11 be available to the geRerai eublis Executive Director of the Coastal Commission upon request, within six months after the conclusion of each one year period of hotel operations. After the 13 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 14 initial five calendar years, the one-year audit Period may be extended to two years upon written approval of the Director of Planning. The Director of Planning may grant such approval if each of the previous audits revealed compliance with all restrictions imposed above. SUGGESTED MODIFICATION NO. 21 Add new Section 4.9.13 as follows: 4.9.13/f the hotel owner and the hotel operator at any point become separate entities, the hotel owner and the hotel operator shall be jointly and severally responsible for ensuring compliance with the requirements identified above. /f the hotel owner and hotel operator become separate entities they shall be loint/v and severally liable for violations of the terms and conditions (restricdons2 identified above. SUGGESTED MODIFICATION NO. 22 Add new Section 4.9.14 as follows: 4.9.14 A coastal development permit application for a Fractional Interest Hotel shall include ap/an specifying how the requirements outlined In 4.9.12 will be implemented. The plan must include, at a minimum, the form of the sale, deed and CC & RslDeclaratlon of Restrictions that will be used to satisfy the requirements and the form of the rental program agreement to be entered into between the individual unit owners and the hotel owner- operator. The plan must demonstrate that the applicant will establish mechanisms that provide the hotel operator and any successor-in-interest hotel operator adequate legal authority to implement the requirements of Section 4.9.12 above. An acceptable plan meeting these requirements shall be incorporated into the special conditions of approval of any coastal development permit for a Fractional Interest Hotel. Any proposed chances to the approved plan and subsequent documents pertaining to compliance with and enforcement of the terms and conditions required by Section 4.9.12 and this section including deeds and CC & R's/Declaration shall not occur without an amendment to the coastal development permit, unless it is determined by the Director of Planning that no such amendment is legally required. 14 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 15 SUGGESTED MODIFICATION NO. 23 4.9.15 Any hotel rooms for which a certificate of occupancy has been issued at the effective date of adoption of this Section shall not be permitted to be converted to a Fractional Ownership Hotel. SUGGESTED MODIFICATION NO. 24 4.9.16 In Lieu Fee Required 1. New development of overnight accommodations that are not "lower cost'shall be required to pay, as a condition of approval of a coastal development permit, an in-lieu fee to provide significant funding-to assist in the creation of a substantial contribution to lower cost overnight visitor accommodations in or near Huntington Beach. The specific dollar amount of the fee shall be 55&M$3,000 in 2006 dollars(which shall be adiusted annually to account for inflation i.e. according to increases in the Consumer Price Index—U.S. City Average) times M%:etthe total quantity of proposed ann-inur __ana. ,HW limited use ovemight visitor accommodation units. 2. Prior to issuance of the coastal development permit, and upon execution of an appropriate agreement between the City and the designated reciEient that assures use of the in-lieu fee for the intended mitigation, the applicant shall transfer the fee to the entity designated in the agreement, which shall be the City of Huntington Beach, the California State Department of Parks and Recreation, Hostelin_a International USA, or similar public agency and/or non- profit provider of lower cost overnight visitor accommodations. if the in lieu fee, or any portion thereof, is not committed toward a use (i.e. with an effective agreement in place for use toward an idendflable protect) within one year of payment of the fee, the in lieu fee shall be made available to be applied toward lower-cost overnight visitor accommodations at Crystal Cove State Park. 4 Ae 6 pal fi.. dollar ami+,. at Wee4 ) e, r/nve/w .++eW wORc WUM «/n,uPr GOSO i+asrMir,ht 1.410' wr 15 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 16 SUGGESTED MODIFICATION NO. 25 Modify the City's proposed addition to Section 4.11.01(b) Permitted Uses as follows: Condominium-Hotel pursuant to section 4.11.13 SUGGESTED MODIFICATION NO. 26 Delete proposed Section 4.11.13 of the Downtown Specific Plan and replace with the following Section 4.11.13: 4.11.13 Condominium-Hotel. May be permitted and shall be conditioned as follows: p Any hotel rooms for which a certificate of occupancy has been issued at the effective date of adoption of this Section shall not be permitted to be converted to a Condominium-Hotel. 0 be c•„ f GGndominiu, s and an-ld- fi r b1 The hotel owner/operator shall retain control and ownership of all structures, recreational amenities, meetin_g space, restaurants, "back of house"and other non:guest unit facilities. When the Condominium-Hotel is located on land owned by the City, the hotel ownerloperator shall be a leaseholder of the land upon which the Condominium-Hotel exists. 0 The Condominium-Hotel facility shall have an on-site hotel operator to manage rental/booking of all guestroom/units. Whenever any individually owned hotel unit is not occupied by its owneds), that unit shall be available for hotel rental by the general public on the same basis as a traditional hotel room. d� The hotel operator shall market and advertise all rooms to the general public. Unit owners may also independently market and advertise their units but all booking of reservations shall be made by and through the hotel operator. The hotel operator shall manage all guestroom/units as part of the hotel inventory, which management will include the booking of reservations, mandatory front desk check-in and check-out, maintenance, cleaning services and preparing units for use by quests/owners, a service for which the hotel operator may charge the unit owner a reasonable fee. 16 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 17 f� If the hotel operator is not serving as_the rental accent for an individually owned unit, then the hotel operator shall nevertheless have the right working through the individually owned units' owners or their designated agents, to book any unoccupied room to fulfill demand, at a rate similar to comparable accommodations in the hotel. The owner or an owner's rental agent may not withhold units from use. In all circumstances, the hotel operator shall have full access to the condominiums'reservation and booking schedule so that the operator can fulfill its booking and management obliciations hereunder. gj All guestroom/unit keys shall be electronic and created by the hotel operator upon each new occupancy to control the use of the individually owned units. h! Unit owners shall not discourage rental of their unit or create disincentives meant to discourage rental of their unit. All individually owned hotel units shall be rented a rate similar to that charged by the hotel operator for the traditional hotel rooms of a similar class or amenity level. 12 The hotel operator shall maintain records of usage by owners and renters and rates charged for aH units, and shall be responsible for reporting Transient Occupancy Taxes based on records of use for aH units, a service for which the hotel operator may charge the unit owner a reasonable fee. k) Each individually owned hotel unit shall be used by its owners) (no matter how many owners there are) for not more than 90 days per calendar year with a maximum of 29 consecutive days of use during any 60 day period. 1 The use period limitations identified in (k) above, shall be unaffected by multiple owners or the sale of a unit to a new owner during the calendar year, meaning that all such owners of any given unit shall be collectively subject to the use restriction as if they were a single, continuous owner. !Vj No portion of the Condominium-Hotel may be converted to full- time occupancy condominium or any other type of Limited Use Overnight Visitor Accommodations or other project that differs from the approved Condominium-Hotel. W Pdor to issuancA of a budding permit and In conjunction with approval of a coastal deyelonment permit for the Condominium- Hotel. the landowne fs) of the i2ropertv(Ies1 within District 9 upon which the traditional units/rooms (Lo. transient hotel rooms) are developed shall execute and record a deed restrictionW subject to the review and approval of the Planning Director and the Emecutive Director of the Coastal Commission, which prohibits the conversion of those traditional hotel unj rooms to any other 17 Exhibit"A" Resolution No.200742 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 18 &Deaf ownership(ea. !!m"ted use overnight mis! o_r accommodationsl. The deed mtftV: ►n shall be submitted for e.r and approval of the Planning Dlrec or and the Executive Director of the Coastal Commission prior to action on the coastal development permit The deed restriction shall run with the land shall hSgocufegf and co se ted to by the exlstina lessee(s) of a_cted n_ per(v(ies) and abaft be-bindW on the i and lessees) and on aft gygamors and assigns of the landowne" and lemee{1). including without!i itatio_ n any f ature li�nholders. This deed restriction(s� shall not be removed or changed without awayAl of an amendment to the underlying coastal deve/oproent Hermit and approval of an amen me t to t e L P by the Coastal Commission Ho ever minor chanaes that do not ! t w-Hhsubsection a) nd m) bove may be pro a ed as an amendment to the coastal development 12"mlt only, unl ss it is determined by the Di ector of Piannincand the_Execuft D actor off e Coastal Commission that such an amendment is not leaal/v reaui 91 The hotel owner/operator shall be required to submit,prior to Issuance of a coastal development permit, for the review and approval of the Director of Planning, a Declaration of Restrictions or CC & R's(Covenants, Conditions &Restrictions) either of which shah include: 1. All the s ecitic restrictions listed in a through m above;. 2. Acknowledgement that these same restrictions are independently imposed as condition requirements of the coastal development permit: 3. A statement that provisions of the CC&Rs✓Declaration of Restrictions that reflect the requirements of a through n above cannot be changed without approval of an LCP amendment by the Coastal Commission and subsequent coastal development permit amendment However, minor chan_aes that do not conflict with a)-m) above may be processed as an amendment to the coastal development permit, unless it is determined by the Director of Planning that an amendment is not legally required. If there is a section of the C&Rs/Declaration of Restrictions related to amendments and the statement provided pursuant to this paragraph is not in that section, then the section on amendments shall cross- reference this statement and clearly indicate that It controls over any contradictory statements In the section of the Declaration/CC&R's on amendments. 18 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 19 p The CC &R's or Declaration of Restrictions described above shall be recorded against all individual property titles simultaneously with the recordation of the condominium airspace map. g1 The provisions of the CC&R's or Declaradon of Restrictions described above shall not be changed without approval of an amendment to the LCP by the Coastal Commission. However minor chan_ves that do not conflict with a) through p) above may be processed as an amendment to the coastal development permit, unless it is determined by the Director of Planning that an amendment is not legally regained. r1 The hotel owner/oyerator or any successor-in-interest shall maintain the legal ablllty to ensure compliance with the terms and conditions stated above at all times In perpetuity and shall be responsible In all respects for ensuring that all parties subject to these restrictions comply with the restrictions. Each owner of an individual guest room/condominium unit is jointly and severally liable with the hotel owner-operator for any and all violations of the terms and conditions imposed by the special conditions of the coastal development permit with respect to the use of that owner's unit: Violations of the coastal development permit can result in penalties pursuant to Public Resources Code Section 30820. All documents related to the marketing and sale of the condominium interests, including marketing materials, sales contracts, deeds, CC & Rs and similar documents, shall notify buyers of the followih-q: 9. Each owner of anv individual hotel unit is iolntly and severally liable with the hotel owner-operator for any violations of the terms and conditions of the coastal development permit with respect to the use of that owner's unit:and 2. The occupancy of the units by owners)is restricted to 90 days per calendar year with a maximum of 29 consecutive days of use during any 60 day period, and when not in use by the owner, the unit shall be made available for rental by the hotel operator to the general public per the terms of the coastal development permit and that the coastal development permit contains additional restrictions on use and occupancy. tZ The hotel owner/operator and any successor-in-interest hotel owner and operator, and each future individual unit owner shall obtain, prior to sale of individual units, a written acknowledgement from the buyer that occupancy by the owner is limited to 90 days per calendar year with a maximum of 29 19 - — Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 20 consecutive days of use during any 60 day erp lod, that the unit must be available for rental by the hotel operator to the general public when not occupied by the owner, and that there are further restrictions on use and occupancy in the coastal development permit and the CC& R's or Declaration of Restrictions. u) The hotel owner/operator and any successor-in-interest hotel owner and operator shall monitor and record hotel occupancy and use by the a general public and the,owners of individual hotel units throughout each year. The monitorina and record keepin_q shall include specific accounting of owner usage for each individual auestroom/unit. The records shall be sufficient to demonstrate compliance with the restrictions set forth in a through n above. The hotel owner-operator shall also maintain documentation of rates paid for hotel occupancy and of advertising and marketing efforts. All such records shall be maintained for ten years and shall be made available to the City, and the anno- Executive Director of the Coasta Commission upon request and to the auditor required by section v_below. Within 30 days of commencing hotel operations, the hotel owner-operator shall submit notice to the Director of Planning and to the Executive Director of the California Coastal Commission of commencement of hotel operations. _j Within 90 days of the end of the first calendar year of hotel operations, and within 90 days of the end of each succeeding calendar year, the hotel owner-operator shall retain an independent auditing company, approved by the Director of Planning, to perform an audit,to evaluate compliance with special conditions of the coastal development permit which are reauired by this Section re_garding occupancy restrictions, notice, recordkeepinp,_and monitoring of the Condominium-Hotel. The audit shall evaluate compliance by the hotel owner/operator and owners of individual hotel units during the prior one-year period. The hotel owner/operator shall instruct the auditor to prepare a report identifying the auditor's findin_as, conclusions and the evidence relied upon, and such report shall be submitted to the Director of Planning, for review and approval, and shall be available to the ipparal w"~,jam Executive Director of the Coastal Commission upon request, within six months after the conclusion of each one year period of hotel operations. After the initial rive calendar years, the one-year audit period may be extended to two years upon written approval of the Director of Planning, The_ Director of Planning may grant such approval if each of the previous audits revealed compliance with all restrictions imposed above. 20 — — Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings Apri12007 Page 21 SUGGESTED MODIFICATION NO. 27 Add new Section 4.11.14, as follows: 4.11.14 If the hotel owner and the hotel operator at anypoint become karate entities, the hotel owner and the hotel operator shall be Jointly and severally responsible for ensurincLcompliance with the requirements identified above. If the hotel owner and hotel operator become separate entities, they shall be Jointly and severally liable for violations of the terms and conditions (restrictions) identified above. SUGGESTED MODIFICATION NO. 28 Add new Section 4.11.15, as follows: 4.11.15 A coastal development permit implication for a Condominium-Hotel shag include a plan specifying how the requirements outlined in 4.11.13 will be implemented. The plan must Include, at a minimum, the form of the sale, deed and CC& Rs/Declaradon of Restrictions that will be used to satisfy the requirements and the form of the rental program agreement to be entered into between the individual unit owners and the hotel owner/operator. The plan must demonstrate that the applicant will establish mechanisms that provide the hotel operator and any successor- in-interest hotel operator adequate legal authority to implement the requirements of Section 4.11.13 above. An acceptable plan meeting these requirements shall be incorporated into the special conditions of approval of any coastal development permit for a Condominium-Hotel. Any proposed changes to the approved plan and subsequent documents pertainim to compliance with and enforcement of the terms and conditions required by Section 4.11.13 and this section including deeds and CC&Rs/Declaration of Restrictions shall not occur without an amendment to the coastal development pennit; unless it is determined by the Director of Planning that an amendment is not leaally required. SUGGESTED MODIFICATION NO. 29 Add new Section 4.11.16, as follows: 4.11.16 Any hotel rooms for which a certificate of occupancy has been issued in the District at the effective date of adoption of this Section 21 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 22 14.11.13)shall not be permitted to be converted to Limited Use Overnight Visitor Accommodations. SUGGESTED MODIFICATION NO. 30 Add new Section 4.11.17, as follows: 4.11.17 In Lieu Fee Required 1. New development of overnight accommodations that are not"lower cost"shall be required to pay, as a condition of approval of a coastal development permit, an in-lieu fee to provide slgniflcant funding to assist in the creation of a substantial contribution to lower cost overnicht visitor accommodations In or near Huntington Beach. The specific dollar amount of the tee shall be JS jQ,- 9 53.000 in 2006 dollars(which shall be adiusted annually to account for Inflation i.e. according to increases in the Consumer Price Index— U.S. Cify Average) times�5�the total quantity of proposed ngn-wmgar- md limited use overnight visitor accommodation units. 2. Prior to issuance of the coastal development permit~ and upon execution of an appropriate agreement between the City and the designated recipient that assures use of the in-lieu fee for the intended mitigation, the applicant shall transfer the fee to the entity designated in the agreement, which shall be the City of Huntington Beach, the California State Department of Parks and Recreation, Hosteling International USA, or similar public agency and/or non- profit provider of lower cost overnight visitor accommodations. if the in lieu fee, or any portion thereof, is not committed toward a use (i.e.. with an effective agreement in place for use toward an identifiable protect) within one year of payment of the fee, the in lieu fee shall be made available to be applied toward lower-cost overnight visitor accommodations at Crystal Cove State Park. avarn=eahf v/sWw�G-Mmmadafiaa . f,ma and/a�a.�fiar,_ of arana�.a�J a�r-�z-_�{��r►sQr-vvwrv,►,way dnve/ea enf of the dme of d/c are do n0 qx ra„iew Suggested Modification No. 31 In the Zoning and Subdivision Ordinance, in Chapter 211 C Commercial Districts, within Section 211.04 CO, CG, and CV Districts: Land Use Controls, on the allowable uses chart (pages 211-2 through 211-4), on page 2114, under Quasi Residential, delete timeshares, residential hotels, and single room occupancy as 22 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 23 uses within the CV district and add the following under Visitor Accommodations, after Hotels, Motels: CO CG CV Additional Provisions Visitor Accommodations Bed & Breakfast Inns . PC PC PC (K) Hotels, Motels - PC PC (1) Condominium Hotetl - PC flMfor lettered as appropriatel Fractional Ownership Hotel Quasi Residential Timeshares - PC RC (1), (J) Residential Hotel - PC PC (J) Single Room Occupancy PC RG Suggested Modification No. 32 At the end of section 211.04, Additional Provisions, add new Additional Provision (W)[or lettered as appropriate to conform to the City's format]: LW In the CV District. Condominium-Hotels and/or Fractional Interest Hotels are allowed only at the Pacific Cit rL{Downtown Specific Plan District 7) and Waterfront(Downtown Speck Plan District 9)sites. Refer to Downtown Specific Plan. Suggested Modification No. 33 In the Zoning and Subdivision Ordinance, in Chapter 203 Definitions, add the following definitions in alphabetical order: Hotel Owner/Operator- The entity that owns and operates a hotel. If the hotel operator is separate from the hotel owner both are Jointly and severally responsible for ensuring compliance with the requirements described in this LCP and/or recorded against the property, as well as Jointly and several/ry liable for violations of said requirements and restrictions. Limited Use Overnight Visitor Accommodations-Any hotel, motel, or other similar facility that provides overnight visitor accommodations wherein a purchaser receives the right in perpetuity, for life, or a term of years, to the recurrent, exclusive use or occupancy of a lot, parcel, unit, room(s), or segment of the facility, annually or on some other seasonal or periodic basis, for a period of time that has been or will be allotted from the use or 23 — — — Exhibit"A" Resolution No.200742 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 24 occMancy periods into which the facility has been divided and shall include, but not be limited_ to Timeshare, Condominium-Hotel, Fractional Ownership Hotel, or uses of a similar nature. SUGGESTED MODIFICATION NO. 34 Replace existing definition of"timeshare" in Chapter 204 with the following: Timeshare—Any arran_gement plan, or similar program. other than an exchange proc tram, whereby a purchaser receives ownership rights in or the right to use accommodations for a period of time less than a full year during_i any_given Lear, on a recurring basis for more than one year, but not necessarily for consecutive years. Add the following new definitions to Chapter 204: Condominium-Hotel—Facility providing overnight visitor accommodations where ownership of at least some of the individual guestrooms (units) within the larcrer building or complex is in the form of separate condominium ownership interests, as defined In California Civil Code section 1351(f). The primary function of the Condominium-Hotel Is to provide overnight transient visitor accommodations within every unit that is available to the_general public on a daily basis year-round, while providing both general public availability and limited owner occupancy of those units that are in the form of separate condominium ownership interests. Fractional Ownership Hotel—Facility providing overnight visitor accommodations where at least some of the guestrooms (units) within the facility are owned separately by multiple owners on a fractional time basis. A fractional time basis means that an owner receives exclusive right to use of the Individual unit for a certain guantitL of days 9er year and each unit available for fractional ownership will have multfible owners. 24 Exhibit"A" Resolution No.200742 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 25 HN8 LCPA 2-06 tmshrs RF rvsd sugmods 4.07 my 25 Res. No. 2007-42 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 16th day of July, 2007 by the following vote: AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy NOES: None ABSENT: None ABSTAIN: None Clerk and ex-offici Clerk of the City Council of the City of Huntington Beach, California