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Waterfront Project - Study Session Re: Current Status - N/PC
} 1CITVJ• 4 OF HUNTINGTON BEACH 0 CITY COUNCIL COMMUNICATION FHNdTINGTON BEACH TO: Mike Uberuaga, City Administrator FROM: Ralph Bauer, Mayor Pro Tempore V� :3x'm DATE: June 24 1996 Lo Ca , r'f� SUBJECT: REQUIREMENTS WHICH SHOULD BE MET BY ANY NEW �� = PROPOSAL FROM THE ROBERT MAYER CORPORATION WITH REGARDS TO THE WATERFRONT PROJECT It is my understanding that there is activity by the Robert Mayer Corporation to propose a new project on city-owned land leased to the Robert Mayer Corporation. If there are changes anticipated I would like the following conditions to be adhered to prior to further discussions on this parcel: l. Since we currently have a contract with the Robert Mayer Corporation, we should insist on a letter from them that they are unable to meet conditions of the contract and that they would like to re-open the contract for re-negotiation. Circumventing the current contract without a letter is not ethical and may not be legal. 2. Since the city and the taxpayers of Huntington Beach own the land, any project which comes forward-must be a joint city/developer proposal. A unilateral proposal by the developer without city agreement is not in the best interest of the taxpayers of Huntington Beach. 3. Any land use proposal must be integrated into the land uses anticipated in the downtown area, the 31 acres owned by Morgan Stanley, and the recently adopted General Plan. 4. The existing contract anticipates the building of three more hotels. Based on the existing transient occupancy tax income from the Hilton of$830,000 annually, these additional hotels should bring in an additional income of$2.49 million annually. This, coupled with the cost of the mobilehome purchases by the city of about $1 million annually, suggests that any project proposed should generate a combined sales tax and transient occupancy tax income of at least $3.5 million annually. 5. The proposal that the incremental property tax will take care of financial needs is erroneous for the following reasons: r Waterfront Project June 24, 1996 Page -2- a. The incremental property tax goes primarily, if not completely,to capital projects in redevelopment areas and does not go to the general fund to support ongoing services. We currently have a$4,000,000 income shortfall in the general fund. b. Any residential project is financially unattractive since the property tax generated by homes, even if completely allocated to the general fund, will not support services to the homes producing them. Currently, property tax income to the city is$28 million, while the general fund expenses are $95 million. C. Projections of property tax income to the city beyond one year, especially in redevelopment areas is inappropriate since, under current law, the State legislature can theoretically take it all. Although this is unlikely, the legislature has taken increasing amounts in recent years. RECOMMENDATION At this point it is my intent to fully honor the current contract with the Robert Mayer Corporation concerning the area known as the"Waterfront Project." RB:paj xc: Honorable Mayor and City Councilmembers RECEIVED FROM C-66 s AND MADE A PART OF THE CO D AT TH E COUNCIL MEETING OF OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK The Waterfront... The Waterfront... City Council/ Goal: Familiarize the City Council with the Planning Commission Current Status of the Waterfront Study session Project,Land Use Options, and Future Actions June 24, 1996 The Waterfront... The Waterfront... Purpose of Study Session History of Proposed Development The Waterfront... The Waterfront... Scope of Development Under Current DDA/DA: ♦ Four Hotels(one completed) Existing Lease ♦ Health Club/Spa ♦ Retail ♦ Residential 1 Relationship of Waterfront The Waterfront... to Downtown 131 Acres Current Proposal: ♦ Hotel Tower 300 rooms General Plan: ♦ Conference Center ♦ Visitor-Serving Commercial ♦Timeshare(Hilton)280-320 Units ♦ Residential High Density (30 d.u./ac) ♦Residential (Single Family)250 -280 Units Relationship of Waterfront to Downtown/31 Acres The Waterfront... Downtown Specific Plan: ♦ District 7-Visitor-Serving Commercial City Council/ ♦ Planning Commission Discussion District 8-Residential High Density ♦ District 9-Commercial Recreation The Waterfront... Developer Presentations ♦ Introduction Shawn Millbem Process ♦ Hotel Expansion Terry Ashton, Waterfront ♦Convention Center Diane Baker,C&VB ♦ Timeshare Randy Carroll, Hilton Grand Vacations ♦ Residential Mark Scheurer,Scheurer& Associates 2 The Waterfront... 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This report sets forth certain details of a proposed Disposition and Development Agreement { "Agreement" } between the Agency and Robert L. Mayer ( "Developer" ) for the development of a multi-phased commercial/residential project including four first quality hotels, an athletic/tennis club, a specialty retail center and a medium density residential subdivision. The proposed project is located in the Main-Pier Redevelopment Project Area in the City of Huntington Beach. This report describes and specifies: 1. The cost of the proposed Agreement to the Agency, includ- ing relocation costs, site clearance costs, infrastruc- ture costs and the expected interest on any loans or bonds to finance the Agreement? 2 . The estimated value of the interests conveyed and leased, determined at the highest uses permitted under the Redevelopment Plan; 3. The purchase and lease payments to be paid by the Developer. This report and the proposed Agreement is made available for public inspection prior to the approval of the Agreement. A. SALIENT POINTS OF THE AGREEMENT 1 . Developer Responsibilities Under the proposed Agreement, the Developer agrees to ground lease the 20 acre commercial parcel and purchase the 24 acre residential parcel from the Agency. The developer must develop and construct, or cause the development and construc- tion of, a multi-phased commercial and residential development at a cost of at least two hundred and twenty-five million dol- lars ($225 million) , exclusive of land value. The project must be constructed within the prescribed time frame and must consist of the following uses: a) A 300 room first quality hotel to be commenced no later than 30 months after the signing of the DDA. b) An athletic/tennis club to be commenced no later than 1996. c) A 450 to 600 room first quality hotel to be commenced no later than 1996 . 06/17/1996 13:40 2136225204 KEYSER MARSTON LA PAGE 05 0 d) A 225 to 250 room all-suite hotel to be commenced no later than 2001. e) A 75,000 to 99,000 square foot specialty retail center to be commenced no later than 2004. f) A 400 to 450 room first quality hotel to be commenced no later than 2004. g) Residential development at a maximum density of 35 units per acre, with total development of 875 to $94 units. The residential phasing must coincide with the commercial development. h) All on-site improvements relating to the development of the property. These improvements must be constructed in accordance with the terms and schedules set forth in the Agreement including, but not limited to, the following: i. All on-site improvements - sidewalks, street light- ing, curbs, street trees, street improvements, park- ing structures, etc. These improvements shall con- form to the design and materials standards approved by the Agency. ii. Sanitary sewers, storm drains, fire hydrants, water supply, gas lines, telephone and electrical power facilities must be brought to, modified, or relo- cated from the perimeter of the property. iii. Additional improvements required as a result of an Agency and/or City review of plans, drawings, or en- vironmental assessments relating to the Developer improvements or to this Agreement. i) The costs associated with relocating the beach main- tenance facility located on the development site, and 1/2 of the costs ($250,000 maximum) associated with con- structing an overpass across Pacific Coast Highway. j) The developer shall be responsible for providing the Agency with a loan of up to $4.5 million to relocate the existing mobilehome park residents, plus 100% of the costs required to extend Walnut Avenue, provide a spur street from Pacific Coast Highway to the residential development and the reabandonment of the oil wells lo- cated on the development site. 2. ggency Responsibilities The Agency is responsible for and shall commit to the project the following: 06/17/1996 13:40 2136225204 KEYSER MARSTON LA PAGE 06 a) Purchase the development parcel from the City. Ground lease the 20 acre commercial parcel and sell the 24 acme residential parcel to the developer. b) All costs associated with relocating the existing mobilehome park residents. c) Repayment to. the developer of the costs associated with the infrastructure improvements detailed in 1-j ) above, to a maximum of 38.5% of the property tax increment revenues and 50% of the transient occupancy tax revenues generated during the first ten operating years of each development phase. d) All costs associated with the relocation of the existing oil pipeline, plus a maximum of $900,000 in soils test- ing/clean-up activities. e) in addition to (b) above, a rebate to the developer of 38.5% of the property tax increment revenues and 50% of the transient occupancy tax revenues generated by the commercial uses during the first ten operating years of each development phase. These revenues will be deferred and accumulated with interest until the commencement of the subsequent development phase. f) In addition to (b) above, a rebate to the developer of 38. 5% of the property tax increment generated during the first ten operating years of each residential development phase. 3. Method of Financing The proposed Agreement provides that the Agency will acquire the development parcel from the City of Huntington Beach. However, $16.1 million of the acquisition costs will be offset by the disposition proceeds received by the Agency from the developer. The remaining balance will be financed with a promissory note from the Agency to the City. This note will be repaid with project area revenues generated in the future. ', The Agency will repay the developer loans for regional in- frastructure improvements and mobilehome park residents relocation costs from 38.5% of the property tax increment and 50% of the transient occupancy tax revenues generated by each development phase for the first 10 years of operation. The Agency shall finance the mobilehome park residents reloca- tion costs not advanced by the developer using project area tax increment funds . The infrastructure improvements not financed by the developer will also be funded with project area revenues . 06/17/1996 13:40 2136225204 KEYSER MARSTON LA PAGE 03 8, COST OF AGREEMENT TO THE AGENCY The estimated net costs of the Agreement to the Agency, in present value terms, are as follows: Costs Fair market value of City parcel $45,200,000 (Less) Developer leasehold interest 22, 800,000 Agency cost to acquire City parcel $22,400,000 Direct public improvement and relocation costs 4,820, 000 Developer loan repayment - including interest 91280,000 Property tax increment and transient occupancy tax rebate to developer 9,550,000 Total Costs $46,050,000 Revenues Land Disposition Proceeds Commercial ground lease $10,060,000 Residential land sale 6,010,000 Total land disposition proceeds $16,070,000 Property tax increment 19, 150,000 Transient occupancy tax transferred to the Agency per Agreement 6,840,000 Total Revenues $42,450,000 Net Cost to Agency $ 3, 990,000 C. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED TO THE DEVELOPER DETERMINED AT THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN The determination of the estimated value of the interests to be conveyed to the Developer pursuant to the proposed Agree- ment was made by Keyser Marston Associates, Inc. (KMA) . KMA concluded that moderate density residential development would generate the highest value to the land, and that this type of development would support a land value of approximately $45 million, or $23.50 per square foot. However, the site is cur- 06117/1996 13:40 2136225204 KEYSER MARSTON LA PAGE e4 rently encumbered by a lease, which has a value to the lessee of $22 .8 million. Thus, the fair market value of the site at the highest and best use, and not taking the Agency goals and objectives into account, is $22 .4 million. D. PURCHASE PRICE BY DEVELOPER AND REASONS FOR DIFFERENCE IN FAIR MARKET VALUE FOR THE HIGHEST USE UNDER THE REDEVELOPMENT PLAN 1. The developer shall ground lease the 20 acre commercial parcel for a 99 year term. -The total of these payments is estimated at approximately $150 million, and the net present value of these payments is $10.06 million. 2. The Developer shall purchase the- 24 acre residential par- cel in phases. The net present value of the land payment is $6.01 million 3. The Developer land acquisition payment will be offset by a public revenues rebate with a net present value of $9 .01 million. The net acquisition price of the parcel is $7.06 million, which is $15.34 million less than the fair market value at the highest and best use. Given this differential in the actual sales price and lease payments, versus the fair market value of the site at the highest and best use consistent with the Redevelopment Plan, California Health and Safety Code Section 33433, requires an ex- planation for the Agency accepting a lower price. As a component of the Main-Pier Redevelopment Project Area Specific Plan the Agency established the goal of attracting major visitor serving commercial uses to the project area. The proposed project achieves this goal with the inclusion of four major hotels and a specialty retail center, which creates a resort type atmosphere, and is expected to attract over 150, 000 visitors annually. However, the magnitude of the project, and the quality level re- quired by the Agency makes the proposed project a pioneering ven- ture within the context of the downtown Huntington Beach market area. Thus, the developer must incur a significant level of risk to undertake this project. The economic analysis undertaken by KMA concluded that in order to mitigate the extraordinary developer risk level, and to allow the project to achieve economic viability, the Agency must reduce the land costs to the level justified given the economic characteristics of the proposed development. The KMA analysis determined that the economic terms embodied in the DDA and the ground lease are fair and reasonable. However, this conclusion is inextricably tied to the enforcement of the development scope and restrictions embodied in the proposed DDA, 06/17/1996 13:40 2136225204 KE'YSER MARSTON LA PAGE 07 KHH:1p 88319.HTB 14066.0006 RCA from Most Recent Annual Review of D.A. ....................................................................................T HMEN .........................-... ................................... ` 3........................................ 0 Council/Agency Meeting Held: Deferred/Continued to: ❑Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signature Council Meeting Date: March 18, 1996 Department ID Number: CD 96-11 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administratora049 PREPARED BY: MELANIE S. FALLON, Community Development Director ��/�� SUBJECT: ANNUAL REVIEW OF THE WATERFRONT DEVELOPMENT AGREEMENT Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Transmitted for your consideration is an annual review of the Waterfront Development Agreement. The purpose of this review is to determine whether or not the developer, Robert L. Mayer, has complied with the terms and conditions of the Agreement. It was approved by the City Council in August 1988 and recorded in January 1989. This is the fourth annual review, and there have been no changes since last year's review. Staff recommends the City Council approve this annual review because the developer is in compliance with the terms of the Agreement Fundinq Source: Not applicable. Recommended Action: PLANNING COMMISSION AND STAFF RECOMMENDATION: Motion to: 1. "Approve the Annual Review of the Waterfront Development Agreement and deem the developer, Robert L. Mayer, in substantial compliance with the terms and conditions of the Agreement. (ATTACHMENT NO. 2 )." Planning Commission Action on January 23 1996: THE MOTION MADE BY KERINS, SECONDED BY SPEAKER, TO DETERMINE THAT THE ROBERT MAYER CORPORATION IS IN COMPLIANCE WITH THE WATERFRONT DEVELOPMENT AGREEMENT AND FORWARD TO CITY COUNCIL FOR REVIEW AND ACCEPTANCE CARRIED BY THE FOLLOWING VOTE: AYES: LIVENGOOD, BIDDLE, HOLDEN, KERINS, SPEAKER, GORMAN NOES: NONE ABSENT: TILLOTSON ABSTAIN: NONE MOTION PASSED Alternative Action(s): The City Council may make the following alternative motion: 2. "Continue action on the Annual Review for more information." REQUEST FOR COUNCIL ti017ION MEETING DATE: March 18, 1996 DEPARTMENT ID NUMBER: CD 96-11 Analysis: Applicant: Robert Mayer Corporation, 660 Newport Center Drive, Suite 1050, Newport Beach, CA 92658 Location: Northside of Pacific Coast Highway between Huntington Street and Beach Boulevard A. STAFF ANALYSIS AND RECOMMENDATION: The Waterfront Development Agreement is an agreement between the City of Huntington Beach and Robert L. Mayer Corporation for the development of the Waterfront Mixed Use Project. The project will be built in several phases and includes visitor serving commercial components, including the Waterfront Hilton Beach Resort built in July 1990, and a residential component not yet constructed. The Development Agreement was approved by the City Council in August 1988 and recorded in January 1989. It provides assurance to the applicant that the project may proceed with a development in accordance with the City's existing rules, regulations and official policies in effect at the effective date of the Agreement. The purpose of the annual review is to monitor the Agreement and evaluate the performance of the development. Attachment No. 1 lists the sections of the Agreement which are the responsibility of the developer and whether or not they have complied with the terms of the Agreement. There have been no changes since last year's annual review. All the requirements of the Agreement, as well as applicable mitigation measures of the supplemental EIR No. 82-2, have been complied with. All but one of the entitlement conditions have been satisfactorily met. Condition No. 10 of Conditional Use Permit No. 87-19 requires that an affordable housing plan be submitted and approved. It will be completed before the second phase of the Waterfront project is processed. B. PLANNING COMMISSION MEETING SUMMARY: At the January 23, 1995 Planning Commission meeting to consider the Annual Review, Shawn Millbern, representative for Robert Mayer Corporation, reported that the affordable housing plan had been submitted and was not an outstanding issue. Approximately two years ago, the developer did submit an affordable housing document to the Economic Development Department. The document was deemed insufficient, however, and was returned to the developer for modification. No other affordable housing agreements have been submitted since then for the Waterfront project. No other persons spoke on this project. CD96-11.DOC -2- 02/21/96 8:51 AM 3 tQUEST FOR COUNCIL ACTIuN MEETING DATE: March 18, 1996 DEPARTMENT ID NUMBER: CD 96-11 C. SUMMARY The first phase of the Waterfront Project has been completed and the developer has met the required milestones set forth in the Agreement. Subsequent phases will trigger other requirements for the developer, including the outstanding issue of the affordable housing agreement. Staff recommends that the City Council approve this annual review for the Waterfront Development Agreement finding that the developer is in compliance with the terms of the Agreement. Environmental Status: The original approval of the Waterfront Development Agreement was covered by Environmental Impact Report No. 82-2. This annual review is exempt from the California Environmental Quality Act. Attachment(s): City Clerk's Page Numbe 1. Waterfront Development Agreement Compliance Matrix dated January 23, 1995 2. Development Agreement by and between the City of Huntington Beach and Robert L. Mayer recorded January 13, 1989 0?i 3. Conditional Use Permit O. 87-19/Tentative Tract No. 13045/Coastal Development Permit NO. 87-17 Conditions of Approval 4. Planning Commission staff report dated January 23, 1995 CD96-11.DOC -3- 02/21/96 8:51 AM :�:{;:'.':}.�:ts�:3:�:# 5:�:�: {::;'t';•`.Y2Y{:Y>Y�:;{'siYc't;2Y}Y:Y.........:... } i$YY'�i Y• :It�:>.YY::[T::} :.v^��iiuYYYY}i+i'i-:iY2':?}Y`v}YY�:�3`�:'. :,.t't.,::v:}.v,:}:•:Y•`.{YYYYYtttY;Y°:Y}YY't}YYYYY�?<2't;'S::::t:=.:.,•::•.::-::.,_._. Y+•:bit':`::}: } :YYYY�:Y�: ::>YY:r Yv,•.Yv.:vvxvvw. Y'Y:i:Yb:YYYYt}iii."•i:YYbt :;}::f�: :.Y:.. 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Yn...:.............,.v:wn!vv::{• V ATTACHMENT N0. 1 WATERFRONT DEVELOPMENT AGREEI•LNT DEVELOPER COMPLIANCE MATRIX January 23, 1996 estion Pao@ Item -- ,Status 1 .D(2) a(1) (a) is Phase l : first class hotel C (b) 15 Phase 2 : recreation facility F (c) is Phase 3 : first class hotel F (d) 16 Phase 4 : all-suite hotel F (e) i6 Phase s . SDec_alty retail Phase 6 : luxury hotel F (2) ( a) 16 Phase 1 . 438 residential units F (b) 17 Phase 2 : 219 residential units F (c) 17 Phase 3 : 7-1-8 reside-tiai units (3) 17 Parking Reciprocal Parking Agreement C1• (4 ) 1•8 Miscellaneous Site Imi-Drovements C1 (s) i8 Walnut Ave. Extension and t e "spur" scree$_ Cl. 20 Walnut ' rve. Extensior. (Phase 1) Cl. (6) (a) 20 Misceilaneo-,;s =ubi_c Impro•.e,,,ents-overcrossing F (b) 21 Mis cell aneo-os Public - s-overcrossing 21 Street Widening � C1 ( ii) 21 Street 1,7, roJc;nee, S C1 (iii) 21 S i 9 n a 1 i z a t-i on C1 ( iv) 21 Waterline extension Ci (v) 21 Utility Extension . C1 (d)' 22 Reabandon oil wells Ci (e) 22 im-arovements accepted by City Cl. 1.D(2)b. 22 Setbacks C1 C. 23 Bulding Construction Cl. d• 23 Signs (PSP) Ci e• 23 Screening C1 f • 24 . Landscaping C1 9 • 24-•,. Utilities C1 h • 25, Vehicular Access C i C = Complied C1 = Complied with as part .of Phase 1 ; other requirements necessary with future phases N = Non-compliance F = Future Development A (9946d) Section Pave Item Status l.E(1) 25 Permitted Uses Cl. (2) 25 Alcoholic Beverage Sales and Consumption Cl (3) 26 Dancing & Live Entertainment C1 1.F 26 Phasing of Development Cl 1 .G 29 Utilities Cl. 1 .H 30 Cost of Development Cl - .1. 1 30 Applicable Ordinances, Regulations,. Rules, andit-t-_ Official Policies 1 x 1 .J 32 Other Governmental Agency Permits Cl. 1.K 33 Transient Occupancy Ta: Ordinance Ci C = Complied C1 = Complied with as part of Phase 1; other . recuirements necessary with future phases N = Non-compliance F = Future Development * = See SEIR No. 82-2 Mitigation Measures and CUP No. 37-19 Conditions of r.Poroval ATT'A.Cf-l�AENT 1110 1. 2 �' (9946d) � • v L NT �}6.Reevnexq CJ XT- H Ay �R ON ex- ts = N 71* + � CZTY C LER KS OFFICE oil .... ........... ........... .......... 9 '}'tt}T2';'<t::2?22'ct;}.�•}}'t?2}.2:}}xx'?22?}}2's:a}Y't{}•::`.t ..Y.,,, .-}.T.}::::.:-::.;;T.X.,:.}..,.,,.t$,:..-..,,•-.+.,•:.:,:}-..:::,,.}..}::�,.}..s}.:},,u.}•'{•:;.•�x.}..�;:r•.}:x.,}'},•:•:'t.,Y:•ux.:;:„2',:.},•..,:.},:„YY•„:.:.•�..,.•..,:.,.:.}vvi•tv:.nv„n•}.2••..:.X, ?;r..}}};..:+.?,}..q,�,.\Y`T:2 kxv.,...vT.,> XA,. ,::.•}:}v•t•: 2}}Y i`y.}.}$h-.:<i}Yxrtk;.Y}2T2i2r2},�}.':22..,.. vv.,•...Y.,:}t.}.T.+:•'•.... 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(U C: I-h n•/[) to N z 11 J' rr 1: • ::r 0 J '.l 1-• n1 0 1-0• (D O G J (D I'• I••• to v) cn w r•h n in0 . N• Jq P. < I-•1 rl* rt (D U1 of (D I-' •v •:r• rl' VI N to 'U fD tU J N N ' CONDITIONAL USE PERMIT NO. 87-19 WITH SPECIAL Pc.RMITS , TENTATIVE TRACT NO . 13045 AND CO=.STAL DEVELOPMENT PERMIT NO . 87-17 .� Page Three FI '�DINGS rOR APPROVAL - TENTATIVE TRACT NO . 13045 - i . The proposed one lot subdivision for .commercial condominium purposes of this 3 . 7 net acre site zoned Do�:ntown Specific Plan , District 9 (Co,rmercial/Recreational ) is proposed to. be constructed . having a • 296 room hotel with ancillary uses . 2 . The property was previously sCudied for this intensity Of lane use and determsi ed adecuatc at the time 'C-he mixed-use land USE desionatlon , and DowntO� f n S-ec_ 2C _la' , D'_5 -_ -C4-- �' zon3;:g deS_Snatio..^. was placed 0n the subject pro_erty. 3 . 7',e G e n e r a I ?_an is des_cneC _0 4-ov..d_ •C. =0= th'_ S L p e G: 1anc ;}se as w as Sett1nC =0:Zn' OrOV Sicns for the _TiD!Enei:tc't1Gn 0_ tills • ts'?E: O com:nerclal aCt1V_ty. . The site is =elat _vely _Flat anc! v S;Ca- ly Si:-able =o_ t:ie p_ozosed L-,. Ne o: Ceve1O:IIlenz . � . =ant " _'. e _ :cCt = 0. 134 S COiSSte :t : L. ie SGaIS a:-d0 1 . t Policies G_ `Che r._.:t_ngton __ac:^. General Plan . 6 . Tentative Tact No-. 1 3�0145; is _n CCn=orin ance . 1th the az-aroved Conc:e u a 1 CO:::'.e_ci a .1 2s e: Site :1a-,1 . FINDINGS-FOR APPROVAL - COASTAL ZVELO?-ZN, 7_R:•'`NO 87-1 i '-- . ne ==o_•05ed cC •:.erci al development conforms wit.'1. _he alanS , iC1es , require:Tients and standards Of the Huntington Beach C 0 a S t a 1 Z'lement . 2 . Coastal Deve_' G-p^ent 'Permit No . 87-17 is consistent with the CZ Suffix and the Downtown Speciric *Plan as well as other provisions Of the Huntington :each Orainance Code aaplicable ACC the property. 3 . At the time of occupancy, the proposed commercial development can be provided with infrastructure in a manner that is consistent with the Huntington Beach Coastal Element and Land Use Plan of the General Plan . 4 . 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IIIh, I'• 1-%:� :7• 1-' tLl 1-1 1: 1 1 n O to :3 a 1-4 0 (A a D, D (n Imo• r►1 tU I-, n1 Mto r.: 0 1: m rr < z O m D, U' rr U O Y 19. n no O m hl m m tQ 1'1 Cf (n rl' rt• (n 1•11 1-h I- CL cu H m I-' O C: rr 0 Ln m ,� m 11 I.1 ►-' '77 CONDITIONAL USE rr.RNIT IN'0. 87-19 WITH SPECIAL PERMITS , TEN,TATIVt C TRACT NO. 13045 AND COASTAL DFVELOPM---NT PERMIT NO. 87-17 Pase Five • I d . Pursuant to Article 87 of. the Huntington Beach Fire Code , fire protection plan shall be submitted to and approved b} the Fire Marshal . This plan shall include , but not- be _... limited to . ( 1) Phased installation of fire sprinkler system. ( 2 ) .On-site security during construction . ( 3 ) On-site road%%ays a-d streets shall be i ':p=0':cd to an all-•:eat'%er driv-ing s:3r-race p rio= to Combustible . Cons.r ction . De:arrent access . e . - ' na! = =act :Jc: fo- t': s::�jecr s_ te :all e accepted by %fie C?ty Cour.C: _ t .'-: CO:y o= % 2 rE'>iSEC C_c37 i_rSt G C Co CCi:G1 =0i? No. G= Zn1s =E:ort as record =C= the condi :O^.a= 0se. _e:i:,i i. =_1j S:?a11 be sLbm t—ad . g1 n order ro :=overly s:Ze t 1e drai.-age s stem fo= the YYCLG_ frcn _ develovment p r'G' ec- , a r_.C.:oic y/:.vdraullC analysis shall hte, compl CL•e u ..or ll:e area to the lt1c:?i.e Avenue sror:i d ra_n :. 'p station . "±_ ar. re-:ed .a_ .,,easares to c1i::e= t1he ex'_si._ra drainage system or :u,;:v S%:ai1on are deemed necessary; they Siva 11 .be co^plered at the appropriate phase of the Master Plain . h . A. alai? for the :eri eter vedestri Bn lin :/Pub.,l_c sidewalk shall be reviewed and app roved by the Deaa=tments of CGTyiNn2i.y Development. and Pub1:.c Works . i : ' � A shadow study ,of' the proposed tower shall be prepared and L reviewed by the.-Planning Commission. 3 . The following Public Works Department requirements shall be Camplied with: a • Walnut Avenue shall be constructed to full width including the median improvements from Huntington Street to the' tract ' s southeasterly boundary. Q� A i t"k,C E:N CONDITIONAL US-` P`.RMI1 :NO- 87- 19 :.i T i SPECIAL PZRMITS , TENTH.T 1V� TRACT NO . 13045 AND COASTAL DEVELOPMENT PERMIT NO . 87-17 P• � Page Si.x b. Funtington' Street improve�-,,ents shall be constructed to Public works standards . C . The developer shall design- and construct the connection C between Wuntington Street-Walnut Avenue and the existing Huntington Street align-ent . d . The developer Shall ins-,Ell ti e _eGLired"'traffic si ona1 conduit at the _nte_ sect_on 0= Walnut and . Fun, :gt0:1 . v e . The cffiC Signal at cC: iC COaSt "iighaay and L'nt=^:to:: St=eet s all be _relocate_ e City ani_ C-1T_rens _ St and- rds . ` r'.! -�r.cifiC. .Coas_r 0Ye.-. e' _rs sno i i. ,Tie.it. Cite_ria . g . T%c.a onneCtion ^ C::.:e_ 1::r.^ ^v= ri ::CFl O. L. . S . D. Cv:.. L _rL'nk5 in �aci=_31 C Co_sr ":=:ay o= -h—a _each parM1.^.g !ot. , G CsoeC�=va � �, . ..s...._ '_ _rCYe _ne n C . S .D . _j , b j �. An i:-de_rc-round drFina,e e••et-eim Z`rom .i raCt :JCO to t.^.a +:e5Z side 0= Walnut _to crl=ll �e CCns - ruc"ed ce- ido s Sta^^_ards . Orr-Siteware_ ,::?_ns shall: =e CCi:St=i:_tea from 0=ive A.ven u'e/-hird .Street t_o the ro: ect s3-= . = i W=1::s�� .'.•'e2:L2 is Connstru,ct =rG'1 T.::!-e Gt_reet t0 n't!::L_'''tCn St_re e in c on. jLinCti On wJ'ch •this• t_racz:, an 18 _nC h main is necessai•' I T2 WaelT',ut JI' enue and 12 ; nch mains in. Pacific• COas- �+ :j1QhS•:ar, L•ate and un"I in:t-on. Otherwise, an 18 inch Mlain r shall be Constructed Coast Higmway,' and 1-2 inch mail -s _:: =i?ntincton Street (Pacific Coast HigS'i:•:ati t0 Walnut) and Walnut Avenue. (`un.tinyton Street to tii2 SOL'theaSterly tract boundary) Or another route location as deemed acceptable by 'Che Public Works _ Department to serve. the. project site . j . Landscaping ( including public right-of-way) shall be installed per the downtown guidelines and maintained by the developer/hotel operator. k. On-site public Water facilities shall be- located in /' vehicular access�:ays and dedicated to the City. 1 . Any enhanced street materials and landscape improvements shall be per the Downtown Design Guidelines and approved by J the Departments of Coi%munity Development and Public works . 1 �V l ''�� NO. 3•to c J \J rl Ql jir; JJ I, 1•0 O N O 117 N to r-t O o u .1.1 r. A tU 1Q 41 •-/ 11) IJ .0-1 (A J r: to .1J 14 JJ to •rl 1-I (:: .1.1 to O tU O (A - !Q r-+ IQ aJ 1': U) to .1 N A, - O t: 414 _N .-'1_ . 44 W N 4) 1•I •1.1 W U fit rl •rl lW 1-I rl N•4.1 •r1 O .( 4) to 1.1 :J O A (1) V) I= 1.1 :3 4) At o 10 44 44 in . (. 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TO: Planning Commission _ FROM: Howard Zelefsky, Planning Directoryr BY: Mary Beth Broeren, Assistant Planng-:� _ DATE: January 23, 1995 SUBJECT: ANNUAL REVIEW OF THE WATERFRONT DEVELOPMENT AGREEMENT (No. 91-3) LOCATION: Northside of Pacific Coast Highway between Huntington Street and Beach Boulevard STATEMENT OF ISSUE: The Waterfront Development Agreement is an agreement between the City of Huntington Beach and Robert L. Mayer Corporation for development of the Waterfront project. Annual review of the Waterfront Development Agreement (Development Agreement No. 91-3)is required pursuant to the Agreement. Since the Robert Mayer Corporation is in compliance, staff recommends determination of compliance and forwardins to the City Council. RECOMMENDATION: Motion to: "Determine that the Robert Mayer Corporation is in compliance with the Waterfront Development Agreement and for,vard to City Council for review and acceptance." GENERAL DI FORMATION: APPLICANT/ PROPERTY O Robert Mayer Corporation, 660 Newport Center Drive, Suite 1050, Newport Beach, CA 92658 REQUEST: Annual review of developer's compliance with the Waterfront Development Agreement. DATE ACCEPTED: December 4, 1995 I �3 '1• . I z zz ; zo 0 Z rD � � 6 fD c i SUBJECT PROPERTY AND SURROUNDING LAND USE, ZONING AND GENERAL PLAN DESIGNATIONS: Subject Property: GENERAL PLAN DESIGNATION: Visitor Serving Commercial, High Density Residential ZONE: Downtown Specific.Plan District 9 (Commercial Recreation) and District 8b (High Density Residential) LAND USE:. Hotel, Golf Course, Vacant North of Subject Property: GENERAL PLAN DESIGNATION: Medium Density Residential ZONE: R2-PD-CZ:FP2 (Medium Density Residential- Planned Development-Coastal Zone-Floodplain) LAND USE: Condominiums East of Subject.Properly: GENERAL PLAN DESIGNATION: Visitor Serving Commercial, Open Space Conservation ZONE: RA-0 (Residential Agriculture-Oil) and RH-28 (High Densitv Residential) LAlti'D USE: Vacant,.Apartments South ofSubiect ProDerf GE\TERAL PLAN DESIGNATION: Open Space Recreation ZONE: Downtown Specific Plan District I I (Beach Open Space) LAND USE: Beach West of Subject Property: GENERAL PLAN DESIGNATION: Visitor Serving Commercial, High Density Residential ZONE: Downtown Specific Plan District 8 (High Density Residential) and District 7 (Visitor Serving Commercial) LAND USE: Vacant Staff Report- 1/9/96 2 (p=173) PROJECT PROPOSAL: The Waterfront Development Agreement is an agreement between the City of Huntington Beach and Robert L. Mayer Corporation for development of the Waterfront project. The project consists of several components and will be built in phases. It consists of visitor serving commercial components, including the Waterfront Hilton Beach Resort, and a residential component not yet constructed. The purpose of the Agreement is to provide assurance to the applicant that the project may proceed with a development in accordance with the City's existing rules, regulations and official policies in force at the-effective date of the Agreement. Such agreements are intended to strengthen the planning process, encourage public participation in planning and reduce the economic risks of development. The City may enter into a development agreement pursuant to City Council Resolution No. 5390 and Chapter 246 of the Huntington Beach Zoning and Subdivision Ordinance under the authority of Government Code Sections 65864-65869.5. The Agreement is being submitted to the Planning Commission for annual review purposes, pursuant to Section 2 (Page 34) of said agreement, to determine whether or not the developer, Robert L. Mayer, has complied with the terms and conditions of the Agreement up until this date. It was approved by the City Council in August 1988, and recorded in January 1989. Phase I of the Agreement, Hilton Hotel, was completed in July 1000. Following a public hearing, the Commission shall either find that the developer has complied with the Agreement or, if it finds to the contrary, make a recommendation to.the City Council regarding appropriate action. Such action will be forwarded to the City Council for final action. Zoning Compliance The Waterfront Development Agreement covers properties located in the Downtown Specific Plan, District 9 (Commercial Recreation) and District 8b (High Density Residential). These two zoning classifications prescribe the development standards for the Waterfront project. The Development Agreement itself complies Arith the Downtown Specific Plan. ISSUES: General Plan Conformance: The proposed uses of the Development Agreement conform with the Commercial/Support Recreation and High Density Residential land use designations of the General Plan. Environmental Status: The original approval of the Waterfront Development Agreement was covered under Supplemental Environmental Impact Report'No. 82-2. This annual review is exempt from CEQA. Staff Report- 1/9/96 3 (pscr173) Coastal Status: Annual review of the Agreement is not subject to any additional coastal requirements. Each phase of the Waterfront project, however, is subject to a coastal development permit at the time of entitlement for that phase. Redevelonnient Status: The subject site is within the Main-Pier Redevelopment Project Area, and the City of Huntington Beach Redevelopment Agency has a Disposition and Development Agreement with the applicant. Redevelopment Agency staff has indicated that the developer is not in default on the Agreement for this annual review. Design Revieiv Board: Annual review of the Agreement is not subject to design review. New construction as part of the Waterfront project, however, is subject to design review. Subdivision Committee: :Tot applicable. Other Denaronents' Concerns: There were no other comments from City Departments indicating that the developer was not in compliance with the Agreement. ANALYSIS: The purpose of the annual review is to monitor the Agreement and evaluate the performance of the developer. This is the seventh such review; all prior annual reviews have been approved. Attached to the report is a compliance matrix which lists the sections of the Agreement whicn.are the responsibility of the developer and whether or not they have complied. As shown in the matrix, the developer is in compliance with all the requirements of the Agreement. There have been no changes since last year's review. All but one of the entitlement conditions have been met. Condition 10. 10 of Conditional Use Permit No. 87-19 requires that an ar:ordable housing plan be submitted and approved. It will be completed before the second phase of the Waterfront project is processed. ALTERNATIVE ACTION: _. ... The Planning Commission may determine that the developer is not in compliance with the Agreement and recommend appropriate action to the City Council. `� Staff Report - 1/9/96 4 (pscr173) Excerpts from Downtown Specific Plan AUACM M E T 4 • • Excerpts from the Downtown Specific Plan Section Three - Design Concept District No. Eight - Residential (High Density District Eight consists of two large parcels each of which is under one ownership, for a total of approximately 57 gross acres. District Eight is located in the northeasterly section of the Downtown Specific Plan. High density residential uses are most appropriate for these sites due to their location and unique characteristics. Projects, if properly designed, will be able to maximize view opportunities and access to recreational amenities. The two project areas within the District should be master planned (separately) prior to any subdivision. New residential development adjacent to the Downtown commercial core will provide the proposed commercial uses with the population base_ necessary to create viable services. The new residential development should also be designed to be compatible with the residential areas to the north. The plan anticipates development in District Eight to achieve the full potential of maximum density resulting in 1800 new residential units. Oil uses should also be allowed to continue in selected islands within a portion of the District. District No Nine - Mixed Use (Commercial/Recreation) District Nine is an area approximately 29 gross acres in size owned entirely by the City. This District is intended to develop with recreation—oriented commercial uses, including tennis and racquetball courts, swimming pools, gymnasiums or health clubs. Combined with these open air or enclosed sports and recreation facilities, hotels or motels with supporting restaurants and shops would be appropriate uses. Large coordinated development is encouraged in this District which provides an ocean—oriented atmosphere with opportunities for public beach access. The Plan anticipates commercial recreation development with a potential for 300-400 hotel rooms. PECAN- OUVE VW LNUT PACIFIC COAST HWY. �p ",;;,„. DEPARTMENT CALIFORNIA DISTRICT 8 DOWNTOWN SPECIFIC PLAN 4.10 DISTRICT#8: -HIGH DENSITY RESIDENTIAL Purpose. This District is intended to allow high density residential uses. New residential development will provide a population base to help support the commercial and office uses in the Downtown area. Boundaries. District#8 includes two consolidated parcels; one parcel is bounded on the north by Atlanta Avenue, on the east by Huntington Street, on the south by the proposed Walnut Extension and on the west by First Street. The second includes the area north of the proposed Walnut Avenue extension between Huntington Street and Beach Boulevard. 4.10.01 Permitted Uses. (a) The following list of uses and any new construction may be allowed in District No. 8 subject to the approval of a Conditional Use Permit. For example: Permanently attached residential uses; including multi-family housing, condominiums, stock-cooperatives or apartments. Public transportation center. 4.10.02 Minimum Parcel Size. No minimum parcel size shall be required in this District. However, prior to approval of any development, a conceptual plan for Sub-area a or Sub-area b shall be approved by the Planning Commission. Development which is in conformance with the site plan may then be permitted. 4.10.03 Maximum Density/Intensity. The maximum allowable number of residential dwelling units shall be 1 du/ 1,452 square feet of net lot area or thirty(30)units per net acre. 4.10.04 Maximum Building Height. The maximum building height shall be fifty(50)feet. 4.10.05 Maximum Site Coverage. The maximum site coverage shall be fifty(50) percent of net site area. 4.10.06 Setback (Front Yard). The minimum front yard setback for all structures exceeding forty-two (42) inches in height shall be twenty(20)feet. Note: An additional ROW dedication will be required to provide for the Walnut Avenue extension. 4.10.07 Setback (Side Yard). The minimum exterior side yard requirement shall be twenty(20) feet. Exception: The minimum exterior yard requirement from Beach Boulevard shall be twenty-five(25)feet. 4.10.08 Setback (Rear Yard). The minimum rear yard setback shall be twenty(20)feet. 4.10.09 Setback (Upper Story. That portion of structures which exceed thirty-five(35) feet in height shall be set back a minimum of one hundred (100) feet from the northern exterior property line. 4.10.10 Open Space. No public open space shall be required in this District. G:DWNTWNSP 44 Downtown Specific Plan Revised 6/1/95 4.10.11 Corridor Dedication. Development in District #8 shall require the dedication of a twenty(20) foot corridor between Atlanta Avenue and PCH for public access between the southern end of the Pacific Electric ROW and PCH. This requirement may be waived if the corridor is deemed unnecessary by the City. Any proposal for an alternative must be approved by the Planning Commission. 4.10.12 Resource Production Overlay. A portion of District#8 is designated with an oil suffix (0,01). Within this area all the requirements of the Resource Production Overlay shall apply(see Section 4.14). 4.10.13 Conservation Overlay A portion of District# 8 has been designated with a conservation overlay. Within this area all requirements of the Conservation Overlay shall apply(see Section 4.15). G:DWNTWNSP 45 Downtown Specific Plan Revised 6/1/95 OUVE Lk N 14 pfl mp HUNTINGTON BEACHCALIFORNIA, DISTRICT 9 DOWNTOWN SPECIFIC PLAN 0 . • 4.11 DISTRICT #9: COMMERCIAL/RECREATION Pu ose. The purpose of this District is to encourage large, coordinated development that is beach-oriented and open to the public for both commercial and recreational purposes. Boundaries. District#9 is bounded by PCH on the south, Beach Boulevard on the east, Huntington Street on the west, and on the north by the proposed Walnut Avenue extension. 4.11.01 Permitted Uses. (a) The following list of commercial recreation uses in District No. 9 may be allowed. Other visitor serving/recreational related uses as described in the Land Use Plan, and which have the same parking demand as the existing use not specified herein may be allowed subject to the approval of the Director. A change of use shall be subject to the approval of the Director. For example: Retail sales Tourist related uses Outdoor dining pursuant to S.4.2.32 (b) The following list of uses and any new construction, or change of such use in District No. 9 may be allowed subject to approval of a Conditional Use Permit. For example: Dancing and/or Live entertainment Hotels, motels Recreational facilities Restaurants 4.11.02 Minimum Parcel Size. No minimum parcel size shall be required for this District. However, prior to approval of a Conditional Use Permit by the Planning Commission for any development, a master site plan for the entire District shall be approved by the Planning Commission. Development which is in conformance with the site plan may then be permitted. 4.11.03 Maximum Density/Intensity. The maximum intensity of development shall be calculated by floor area ratio (FAR) for this District. The floor area ratio shall apply to the entire project area. Floor area ratios shall be calculated on net acreage. (a) The maximum floor area for developments in this District shall be calculated with a multiple of 3.0. 4.11.04 Maximum Building Height. No maximum building height shall be required. 4.11.05 Maximum Site Coverage. The maximum site coverage shall be thirty-five (35) percent of the net site area. Note: A maximum of twenty-five (25) percent of the net site area can be used for parking and vehicular accessways. 4.11.06 Setback (Front Yard). The minimum front yard setback for all structures exceeding forty-two (42) inches in height shall be fifty(50) feet, from PCH and Beach Boulevard. G:DWNTWNSP 46 Downtown Specific Plan Revised 6/1/95 4 • 4.11.07 Setback(Side Yard). The minimum exterior side yard requirement shall be twenty(20) feet. Exception: The minimum exterior yard requirement from Beach Boulevard shall be fifty (50) feet. 4.11.08 Setback (Rear Yard). The minimum rear yard setback shall be twenty(20) feet. Note: An additional ROW dedication will be required to provide for the Walnut Avenue extension. 4.11.09 Setback (Upper Story). No upper story setback shall be required. 4.11.10 Open Space. Development projects within this District shall provide public open space. A minimum of twenty-five(25) percent of the net site area must be provided for such a purpose. This area shall be available for public or semi-public uses for recreational purposes. Open space must have minimum dimensions of twenty-five (25) feet in each direction . Paved areas devoted to streets, driveways and parking areas may not be counted toward this requirement. A maximum of fifteen(15) percent of the required twenty-five (25)percent may be enclosed recreation space such as gyms, handball courts, health clubs, interpretive centers or similar facilities. A fee may be imposed for the use of such facilities. 4.11.11 Pedestrian Overpass. A pedestrian overpass may be required to connect the development in this District to the City Beach, as a condition of approval for any new development on, or further subdivision of, parcels within the District. The City may waive this requirement if the City determines that overpasses are unnecessary or impractical considering the type and design of new developments. 4.11.12 Mobile home District. A portion of District#9 is zoned for mobile home use. Within this mobile home area, the provisions of the Mobile home District of the Huntington Beach Ordinance Code shall apply(see Section 4.16). G:DWNTWNSP 47 Downtown Specific Plan Revised 6/1/95 Memorandum on 31 Acres (January 24, 1996) .............. ................ .............. ............... .............. ................. ............... ATTACHMENT ........... a �• i�' CITY OF HUNITIN GTONI BEACH • INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Distribution FROM: Melanie S. Fallon, Community Development Director DATE: January 24, 1996 SUBJECT: Facts and Vision for the 31 acre Chevron parcel on Pacific Coast Highway between First St. and Huntington Ave. Over the last few years, we have been asked many questions regarding the future of the 31 vacant acres adjacent to Pacific Coast Highway from interested developers, the property owners, Council Members, Planning Commissioners and staff. The purpose of this memo is to answer as many of these questions as possible and to describe an interesting/exciting vision for what we as the city expect to see someday on this very important parcel of land. BACKGROUND The generally vacant 31 acre parcel is bounded by Pacific Coast Highway (PCH), First Street, Atlanta Street and Huntington Avenue. Minimal development exists on the parcel. The PCH frontage is developed with a 50 room motel and restaurant with a surface parking lot at PCH and First Street. The remaining area is vacant of development. The property had been used as an oil production site in the past. It appears that the oil wells have been abandoned and removed. Verification will be necessary and any oil remediation issues will be addressed through the environmental review. Surrounding land uses include the 236 room Waterfront Hilton Hotel and an existing mobile home park to the east; City beaches directly across PCH to the south; existing single-family and multi-family residential to the north and minimal commercial and residential to the west. GENERAL PLAN/ZONING The parcel currently has two general plan land use designations; Visitor-Serving Commercial along the Pacific Coast Highway frontage and High Density Residential (25-35 du/ac) to the rear. The designations are bisected by the future extension of Walnut Ave/Pacific View Ave. The zoning on the parcel is also bisected by the future roadway segment. The 10.5 acre PCH frontage is (GA196hf2) r 4 Chevron Parcel• January 24, 1996 Page Two zoned Downtown Specific Plan District No. 7, Visitor-Servinq Commercial and the rear 20.5 acre area is zoned Downtown Specific Plan No. 8, High Density Residential (30 du/ac max.). Part of District No. 7 and No. 8 also include the zoning designation of -FP2 (Floodplain). See the attached zoning maps. District No. 8 includes two areas designated -01 (oil operations/oil drilling) and one area designated -0 (oil operations only). The current zoning and general plan designations are consistent. The Planning Commission's recent recommendation on the Draft General Plan has not changed the land use designations. The Downtown Specific Plan requires that each zoning district (Nos. 7 & 8) include a provision that prior to any development, including a subdivision, a master site plan for the entire District shall be approved by the Planning Commission (Section Nos. 4.9.02 & 4.10.02). Development which is in conformance with the site plan may then be permitted. Staff believes the current general plan and zoning designations in their current • configurations are proper to carry out the development of the parcel. This also includes the future Walnut/Pacific View extension for adequate access and circulation in the Downtown. Staff believes that it is very important to maintain the PCH frontage as visitor-serving commercial. The Visitor-Serving Commercial designation will provide continued economic growth. Staff also believes that the residential portion is important to provide the population base to maintain the commercial in the off-season times of the year. However, if the city is presented with an opportunity for expanded economic growth with a unique commercial/retail proposal on the entire site, the city may entertain an amendment to the residential district (No. 8). Development Options In review of the 31 acre parcel, it is important to remember that it is one of the last remaining large parcels of generally undeveloped land in Huntington Beach. It is also a vital part of the continued economic redevelopment of the Downtown area. The development of the parcel should tie the Waterfront development to the Downtown and vice versa and take advantage of the ocean/beach/views with creative design and pedestrian/landscaping Linkages. Another important factor is the ability to attract the beach goer to the site. With these issues in mind, the following commercial/retail development options are recommended for the PCH ® frontage: (GA196hf2) L Y Chevron Parcel January 24, 1996 Page Three * Ocean/Surf themed destination: This could include a surfing museum or public entertainment/educational facility (such as an aquarium) augmented with retail and restaurants. The development should be situated in a manner to take advantage of the views of the ocean and the pier. * Entertainment Center: This could include such uses as cinema complex, themed restaurants, entertainment oriented retail, and family entertainment centers. The development should be situated in a manner to take advantage of the views of the ocean and the pier. * The abovementioned development options should all include the high density residential component to the rear to provide the adequate population base to serve the downtown area. In conclusion, staff believes that this is a very important part of the continued development of the Downtown and should be carefully reviewed for it's economic benefit to the city. Any development proposed for the site should include at minimum a market analysis, a traffic study and environmental impact report. • xc: City Council Members Planning Commissioners Michael T. Uberuaga, City Administrator Ray Silver, Assistant City Administrator Department Heads Community Development Department Staff James R. Brooks, Morgan Stanley Real Estate Fund, Inc. 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PLANNING D PBEACHARTM CALIFORNIA DISTRICT 7 DOWNTOWN SPECIFIC P LA N PLANNING DEPARTMENT PLANNING ZONING DM 16Z ips ECTIONAL DISTRICT MAP 14-6-11 NOTE: CITY OF AODfTED YYp>,1O. all DIMENSIONS ARE IN FEET ANY DIE oJ0lYlxa AYY RIGHT Or rAY °TY LDIRIGL ORDIn ANCE N0.TSR S nl�D!0 TO [STCx4 TO THE CENTER Oi Sup RIGHT Of tlT. AMExOEO ZONECIL ORO NO, AMENOEO ZONE CA.9E CND.NO, LEGEND: }>-82 23T 900 12J-62 201 930 //. N,TNN FLOOD zc E-m 9.20la 52R IISa © MEDIWNGN KNOY nmmc.VT DISTRICT i a� �� !OR CONNUNM I"WTESDIECREATIOx l DISTRICT HUNTINGTON BEACH >-M4 �" � ��LL=°NES�" »•>0 ro>0-z ENO G•I•]0 ffTO-S 'Dal ® R0000.AM DISTRICT LlilYb>9To-fR10�� xmo [C�41011 NCIONa0RN000 CDMYCRDILL DISTRICT 0-M0 Ta-I 2089 [jj] NIGNMAY COYYERCLLI DISTRICT I2-N-TT T V, 22s3 2-Mw M>-8 zAIN ® CDMSIREO rITM OIL MODUCT ION ORANGE COUNTY, CALIFORNIA p v - -- C�.AL ZONE wuND.RT II-2h0aµsq a6S-z 22>0paa] ®i CD�mED N N Ok WOO—ION l4l rz fw tloRE zim ® DESIGNATES PRE RLAII OF STREET ALIGNMENT y�g 29y cmENARY NEDR01 D RSDEN:_.:C13TRET 0 2"/eTe p a aEi My 1 . ® RI-RRNw OEYELOPYENT OIRMCT . Pr. ? RRaYTE STREET -�-. Q ® MOBILE NONE OISTR- ���---LLL--- 13, G W IFIED CLANWICETNW / I•'i�J !y �• �F� `y ATLANTA STREETi -{-• // R2-PD-CZFP2 LrJ A•. (� DicrCi� e6 ,,a.y jwsWN- uhraeE¢ - '•, .•°� SA P� P`` - 9 .r �.?i?r�-m,:t�-1� eI R2-PO-C2'FP2 TOWN FIC P&M 'rolaz• •cz ;' -0IDIST ICI R2-PO-CZ FP2 m OR R'fD'CZ.flDi R2-PD-d-42 / ""40 •;:•ln, � 00 OAS SAF b � �~ �%K4�!?'=_fit:'...v4Q5�ts:-'••. ••\ �' iC ,s;' °s� OL r h e R2 fD CZ FP2 R2-PD C� 2 V NfA MH-CZ FP2 : -.:-------- R2 PD CZ FP2"•.°gpSVY°tON -0 DOWNTOWN SPECIFIC PLAN-� \ DIST 08b-FP2 14 C�- 10, A2 �\ OC t•',T WQ B' Architect Concepts for 31 Acres ............................................................................................................... ................................................AT .. ...................................TACHMENT #f ................................ �p U fly 'AJ . r r Ocean Front Property Huntington Beach, California Ocean Front Property Huntington Beach, California Prepared for: The Huntington Beach Company B3 Architects +Planners December 1993 JLL`- dftR4K BACKGROUND UWCENTRAL g 1 C "s C Igo I - In October 1993,The Huntington Beach Company contracted with B3 Architects &Planners to prepare planning and development concepts for a thirty-one(31) -- acre parcel in Huntington Beach, California. The property is located in the Downtown Specific Plan area and is bounded by Ist Street on the west,Atlanta E s J✓• Y Avenue on the north, Huntington Street on the east and Pacific Coast Highway d 1 I/ (P.C.H.)on the south. Future development within the Specific Plan area has the nU [ potential to change the historic negative image of downtown Huntington Beach A E E VAr � .,•-2 into an attractive, unique,vibrant community. • e J;/� Gg DATA COLLECTION/ANALYSIS The first task of our work consisted of inventorying existing environmental land use,infrastructure and programming information in order to determine development constraints and opportunities. As part of this effort,two base maps were prepared for the project. The first,a Site Specific Map at 1" =50',is based �lv C_D on a 1987 aerial topographic survey completed by the Keith Companies for the �_ Huntington Beach Company. The second a General Stud Area Ma at 1" _ i�•� � O©� ��� 100" is based on the above referenced survey as well as recent aerial photographs \y •°� `/Q�C 0�®�QQQ�"�" 'D�•�Dnn[.�d and City of Huntington Beach maps. The General Study Area is larger than the WAD i1q)[1)f�l ��O •p�0 �U nnD��r-!rwi�r� actual property and was chosen to look at City-wide planning issues that affect the 0 �� 0� ;� ❑ •[E Cl;xo��• o •�„ G'�p�0�p�,,O��pa �g;�( ,o*f1 specific property. oG �� During this phase of work,on-site investigations were conducted and existing O•�`7n0��� I environmental documents were reviewed. City Additionally, Ci of Huntington Beach ,MOEE '•�:� C°>��r-' .K land use documents were reviewed includin the General Plan,Zoning Ordinance DOWNTOWN ^ : ��.�.'' " ' Coastal Plan and the Downtown Specific Plan. AREA / PIER SITE Existing Land Use �.� �\ The majority of the property is vacant land with the exception of an existing 50- THE WATERFRONT room motel and restaurant adjacent to Pacific Coast Highway. The property has PROJECT \ been used as an oil production facility in the past;currently all of the wells have 1 been abandoned and removed. Previously completed environmental assessments prepared by the property owner anticipate no problems for development. Existing surrounding land uses include the 236-room Waterfront Hilton Hotel complex to the east;City beaches directly across Pacific Coast Highway;the Pier Colony condominiums one block to the west;existing single-family development to the north;and an existing mobile home project directly across Huntington Street to the east. Additionally,the Main Street Redevelopment project is in close proximity(three blocks to the west of the site). Existing Zoning • The site is characterized by a mix of spot zoning most of which is inconsistent with the General Plan and the goals.of the Downtown Specific Plan. Additionally, a Resource Production Overlay zone exists over some of the following base zones which allows for Oil extraction and production. Future project approvals will undoubtedly require removal of the Overlay zone as well as zone changes to achieve General Plan consistency. The Mobil Home zone may only be removed as set forth in the Downtown Specific Plan subject to the provisions of the Huntington Beach Ordinance code. The following zones currently exist on the subject property. R5 Office/Professional District R3 Limited Multiple Family R5-0 Office/Professional(Combining Oil Production) MH Mobil Home C3 General Business District Proposed Land Use The property is located within the City of Huntington Beach Downtown Specific Plan area. The Specific Plan was adopted in 1983 and it was originally proposed to encourage the revitalization of the downtown area and as a method of implementing the land use designations of the Coastal Element of the Huntington Beach General Plan. Currently,the Specific Plan is undergoing revisions that affect the subject property. The Specific Plan area is divided into eleven Districts, 2 each with its own unique character. The subject property consists of the following \�f two Districts: J District 7-Commercial Visitor Serving south of the proposed Walnut bb. JO r Avenue extension. This area is designated for visitor serving commercial uses that do not complete with the downtown commercial care. Seasonal uses such O as hotels,motels,restaurants and specialty commercial/recreational developments are envisioned by the City of Huntington Beach. The minimum `6 requirement for all development proposal in this district is that the entire street Q � 8a level of any proposed development be devoted to Visitor-Serving Commercial �,�n"m; % uses. Residential uses are not allowed in this District. • Proposed revised design guidelines include a maximum F.A.R. (Floor Area Ratio)of 3.0,a maximum site coverage of fifty-percent(501/o)of net site area, and a maximum building height of eight(8) stories. Additionally, a public Pacific Ocean and space and/or pedestrian access amenity may be required to assure a predominantly visitor-serving orientation. The dedication of a twenty-foot (20')corridor between Atlanta Avenue and Pacific Coast Highway for public access between the southern end of the Pacific Electric R.O.W. and Pacific Coast Highway may also be required. District 8 -Residential High Density north of the proposed Walnut Avenue extension. This District is designated as high density residential in order to provide the population base to help support the commercial and office uses in the Downtown area. Development criteria includes a proposed revised net density of 35 unit per • acre. Building height is limited to four(4)stories and site coverage is restricted to fifty-percent maximum. Additionally, common open space must be provided at the rate of twenty-five percent(25%)of the floor area of each residential unit. The dedication of a twenty-foot(20')corridor between Atlanta Avenue and Pacific Coast Highway for public access between the southern end of the Pacific Electric R.O.W. and Pacific Coast Highway may also be required. 3 Geology/Soils/Topography The property is located adjacent to the southeastern margin of the Huntington Mesa geologic formation,a wedge-shaped,upland area which rises from sea level to approximately elevation 85-feet. The soils consist of recent alluvial and coastal deposits. The property slopes gently to the east and south and has a maximum elevation of thirty-seven feet(37). Steep banks exists at one location along Huntington Street and at the mid point of the site. The City's Geotechnical Land Use Capability map rates the eastern edge of the property as Risk Il and the remainder of the property as Risk 1,the lowest risk rates shown on the map. Hydrology The subject property is located outside the Santa Ana River 100-year flood zone as designated by the Federal Emergency Management Agency(1984). Groundwater levels vary and generally exceed 30-feet below ground surface. These levels can fluctuate due to rainfall variations. Some authors conclude that a high potential for liquefaction exists with the soils found on the site and have recommended that a detailed site specific liquefaction analysis should be prepared. prior to development. Areas immediately west of the property(across Huntington Street)are within Zone A 12 of the 100-year flood plain as identified by the Federal Emergency Management Agency study,Feb. 16, 1983. The base flood elevation for these areas is 11-feet. Vegetation Except for some scattered Eucalyptus and Palms trees,there is no significant vegetation on the site. Noise High noise potential from Pacific Coast Highway. 4 / Infrastructure ( / The site is adequately served by water,storm and sanitary sewer as well as �U T r n system trunk sewers are electrical power and natural gas. Two major County y located beneath 1st Street and Atlanta Avenues. Major water lines (12-inch)are Salso located beneath these two streets. o� Access S Primary access to the site is from 1st Street and Atlanta Avenue and Huntington >� Walnut Exte`l a Streets. Pacific Coast Highway is the major traffic carrier in the Downtown • Specific Plan area with a planned increase in lane capacity from four to six lanes which will upgrade its status from a primary to a major arterial. The proposed ---® Walnut Avenue extension will serve to reduce access from Pacific Coast Highway a c�f �— to the site. The Huntington Beach General Plan designates Atlanta Avenue as a e c cif lc Hi u � Pa primary arterial providing access from Beach Boulevard to the Downtown core to reduce dependence on Pacific Coast Highway. The recent improvements to the Atlanta/Orange/Lake Avenue intersection have improved traffic flow in this area. The Downtown Specific Plan shows Walnut Avenue extending through the subject property to provide and alternative inland route to connect Beach Boulevard to 1 st Street. x Public Transportation. Currently,the site is served by buses operated by the Orange County Transit District(OCTD). The OCTD is interested in locating a transit center somewhere • in the downtown core. Bike and Pedestrian Circulation 1st Street is a designated class 2 bikeway with striped bicycle lanes incorporated into the existing street right-of-way. An additional class 2 bikeway is proposed for the Walnut Avenue extension. Overpass and underpass connections across Pacific Coast Highway are encouraged in the Downtown Specific Plan . 5 OPPORTUNITIES/CONSTRAINTS A number of site development opportunities and constraints exist including: Opportunities Proximity to major downtown redevelopment projects. Large undeveloped parcel under one ownership. Residential density and commercial F.A.R. in place under provisions of The Downtown Specific Plan. Proximity to major public beach amenity. Extensive frontage on Pacific Coast Highway. Dramatic views of the Pacific Ocean to the south and mountains to the north. Proximity to reconstructed Huntington Beach Pier. Constraints Noise and traffic on Pacific Coast Highway. Potential flooding problems on low areas of site adjacent to Huntington Street. Potential environmental problems from former on-site oil productions facilities. Existing Hilton Hotel,on adjacent property to the east,partially blocks Pacific Ocean views from portions of the site. Steep slopes in several areas of the site. 6 fh5`JW ItEJYE64°i4ftiV* \ JAbl,e,�_ 77 V/1` VV,•�9 ram y� � .1 ____.-_ _- olG VS GGg •� 'ham fCenb,iGp/a �� _ WA U7",f N YENUE �' �iV2. OII! 11 V, rtxp MIA F .+�;` .,' .' •_k � �=,ter '��. --�� !`.Q�" , �.,� ���� � %__`; [_� 1 . f �" �OC7�S ('l�� _ 0 0 0 0 0 A 0 0 �. F-1 n - n- • off ON.a:.;,, wz-.. } s i HUNTINGTON BEACH COMPANY 11UNTINGI'ON DEACII,CALIFORNIA B 3 CONCEPTS Site development concepts are based on of number of issues including the perception of the Huntington Beach image. Traditionally,this image has included the Surf City fun in the sun idea for teenagers and young adults. Over time this image has changed to reflect the population shifts in the Downtown Specific Plan area as well as the aging of the baby boom generation. ` The proposed Walnut Avenue extension will bisect the property and create two / development parcels. divided the property into two halves. Both the downtown \ \ specific plan builds on this separation b classifying the two halves into visitor � p p � Y �g serving commercial uses and high density residential. Concepts that favor uniting \ these two halves should be encouraged. \� District 7 The principal purpose of District 7 ..."is to provide commercial facilities to serve seasonal visitors to the beaches as well as to serve local residents on a year round basis. The District also provides a continuous commercial link between the Downtown and the visitor-commercial/recreational District near Beach Boulevard." At various times in the past,a number of specific uses and activities have been suggested for District 7 including : Ocean Life Interpretive Center Aquarium Surfing Hall of Fame Threaten/Auditorium Convention Center Cousteau Society Facility Transit Center Golden West College Campus Themed Water Feature In addition to these uses,the Downtown Specific Plan suggests: Beach, swimming and surfing equipment sales and rentals 8 Boat and marine supply commercial Yacht sales(display only) Tourist related public and semi-public buildings Hotels and motels ' Restaurants ' Commercial recreational uses Amusement arcades \, Health clubs ` All ground floor uses in this District must be Visitor Serving Commercial. Professional office and other similar uses are allowed above the first floor as long 1 I as they do not occupy more that fifty(50)percent of the total floor area. Potential maximum build-out in this District is 1,372,140 sq. ft.based on a site area of 10.5 acres;a site coverage of 50%; and an F.A.R. of 3.0. To achieve this build-out will require six-story buildings covering 50%of the site. District 8a The stated purpose of District 8a-is to provide high density residential uses in order to generate sufficient population for the commercial and office uses in the downtown core. The Downtown Specific Plan requires that District 8a residential use be high density attached housing including multi-family condominiums, stock- cooperatives or apartments. The maximum number of residential units that can be built in this zone is 717. This number is based on a site area of 20.5 acres times a maximum density of 35 units per acre. The potential build-out is based on a maximum site coverage of 50%and an average unit size of 1,500 sq. ft. 9 CONCEPTUAL SITE PLAN ALTERNATIVES AX The site plan alternatives are based on the following design criteria: \ The property is one of the last undeveloped parcels in Huntington Beach and any proposed development plan should recognize the property's uniqueness. A range of visitor serving commercial activities,that complement the existing downtown core and pier development, should be provided. \ ''\ ` • A smaller scaled theme attraction should be provided in District 7 to promote year round activity and to appeal to the"niche" market not covered by the large-scale theme parks such as Disneyland and Knott's Berry Farm • Strong pedestrian linkages should be provided between Districts 7 and 8a and the City beaches. • An additional visitor serving hotel should be provided in District 7 to stimulate year round beach front activity. Alternative I Extension of the existingdowntown urban fabric into the site is the distinguishing gn g feature of this plan. The existing Huntington Beach street pattern is extended into the site and individual development blocks are created to allow for incremental growth as dictated by market conditions. This concept reduces net developable acreage due to public street right-of-way dedications. However,this problem can be solved through density transfer agreements with the City. A formally organized open space paseo provides the major pedestrian linkage through the residential district to the visitor serving commercial district and the City beaches. The public streets are the organizing element of the scheme and all residential blocks relate to the rectilinear pattern. Individual residential buildings vary in height from three to four stories with all parking located in below grade structures. Approximately 700 condominium flats are proposed. 10 The District 7 visitor serving commercial area is divided into three block with an eight-story hotel tower and four-story wings occupying the eastern block; a water theme attraction and supportive visitor serving retail occupying the center block; and visitor serving commercial and professional offices dominating the western block. Buildout as shown is approximately 750,000 sq. ft. Alternative 2 This alternative suggests a more traditional developer approach to the residential portion of the project. An extensive paseo/green belt substitutes for public streets with the residential blocks taking on a more dynamic form than in Alternative 1. The District 7 visitor serving commercial area features an eight-story hotel tower that will serve as a project landmark at the Huntington Street,Pacific Coast Highway intersection. A water theme attraction featuring such things as a water slide, surf museum,and interpretive center is proposed for the center of District 7. The Pacific Coast Highway pedestrian bridge will provide a link between the residential uses in District 8a and the beaches to the south. The District 7 buildout is shown at 750,000 sq. ft. based on an eight-story hotel tower and adjoining four story elements. The remainder of the visitor serving commercial is depicted at four-stories with below and above grade structured parking. The pattern shown on District 8a is approximately 700 condominium flats arranged in three and four-story buildings. The absence of a street grid allows the buildings to be placed on the site to respond to views and sun orientation. Alternative 3 This plan represents a combination of the ideas suggested in Alternatives 1 and 2. Portions of the plan,particularly in District 7, suggest an individual block development pattern;however,the central open space element of Alternative 2 remains,without the pedestrian bridge crossing Pacific Coast Highway. This alternative de-emphasizes the mid-block crossing of Pacific Coast Highway in favor of at-grade crossings at both 1st and Huntington Streets. Visitor serving commercial development,adjacent to Pacific Coast Highway, is elevated 11 approximately one-half level above the road to allow views to the Pacific Ocean. The hotel tower remains as in the previous alternatives but on a smaller parcel. The potential build-out of this scheme is approximately 800,000 sq. ft. based on four-story buildings over structured parking. The hotel tower is shown at six- stories. Increasing the hotel tower to eight stories, and the remaining visitor serving commercial to 6 stories, would increase the yield by an additional 350,000 sq. ft. for a total of 1,150,000 sq. ft. Approximately 700 condominium units are shown on the District 8a portion of the site plan. The units are grouped in three and four story buildings organized around formal courtyards. 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':;r,r —Tt r e 'v f� ,�T^rs_"/ 79 r \ r �r 9J r �a it .,�':r•^'�i � �f�l'�p'' I r� r •, ti ) � , rl;.y vj rt!1 k:, a rl 1 r :�:• a�jlrr,/!1 'ir rt r I+ •'j / �l 1 I ,r , p7� I t • h Il-iN11NTI[NGTON ISI@ACH COMP u VIEW EW TO WATER THEME USE RIM a,; r HYINTINGTON SMACHoCALIFOAMA �3 .'w%�rCI1H0C16�4:'V13MBf6�: . 88f11IB OeSlal::.$IIRIb; r I 7 ry fll f. i f � UJ 1AI4F i 1 \ I I .,7 1 111� r•t__�I�.l I � .�,1 + s / .1 74("[ II 11 ''.-� '{.11'1 I — jyti. / 1 I �. y�'1� �'� 'ki.?°r 'q���,^'• y.,_ - � 7k�"� I Pt�.L 1 9u,1 1,, �r „)r I: Y � � 'S ....• 4 _r,�.f �� x�_ __ ""I�zv:: d"._`{- ;il-� I � �i�yl+". ::..li�$1d+{{."'. " ;I Y,;.'.t, , 1lyt�� �.`., F 7 ' py IIl � ( ��y�ji,'.�'L.' -• .n r �� " � •n. ,g1��yp�r t� a FI J,r���`1 ., r �.� 1 � I a�'1 �..,-�- .,. `Y i i, k L[.� •'�itt Ra' i i�,t,��9,� .1: r I n {','I:1 � � r� _ - � :r�% ,t � '9 (;. I'�f' !L r�� I r�f '.�zl+." -�Y ''' ✓.�"j' rf* t .4 5 "..✓i .r` ,••,•`�''" - �:r!ri1- ',e.. / � , e •te Pr� �y {'i T..s -f,�'i7.o'✓ Ie -� 1'4ia` l t 1 '1 !t �r�u.��r, �;t'f f l ITUNTINIGTON BEACH camb."Y VIEW TO COMMERCIAL 3 . - 0�®pe�b4sA �A�64.7 a ii av J 141%j�q�•��,1 Mill', 1til lag iij :'/rrrrt�i�'lied _ '�:..y �A�� ��i.+�_~"��i "•n.�r�rliri� �— J I■ i - . ar d �' P f _y I I '. !(� T��f`� , I ���N I?I' '� i I ( ��1:�I '•`,N ,1 �, � ' �,� : ��� � � � ��. � ��' l ` I II"'. I Vi�7 �li�l NCI' ��,' li. ( .•�,l.�i �I�f:NI :� REFERENCES The Waterfront, Phase 2 &3 Conditional Use Permit 30 January 1990 The Robert Mayer Corporation Geotechnical Feasibility Investigation Approximately Seven Acre Huntington Street property 30 January 1989 Stoney-Miller Consultants, Inc. Huntington Beach General Plan Amended through July 1990 Huntington Beach Downtown Specific Plan City of Huntington Beach Prepared by Department of Community Development Planning Division Revised January 1989 (With draft revision comments from August 1993) Coastal Element City of Huntington Beach LCP Certified March 1985 Amended through February 1990 21 i L_ L L L B3 Architects+Planners Barry Berkus Charles Torrence L Dean Abernathy Christopher Craig Ray Nalangan L I Process Flow Chart .......................................................................... .........................-.. ..... ATTACHME................ NT #7 ...-................................. Waterfront Master Plan Processing Schedule for Project and Revised Development Agreement Required Applications: Time Share Project Processing Time (Months) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Amend Land Use Regulations 1 Code Amendment 2 Development Agreement Amendment Application 3 Environmental Assessment/EIR Package EAC 4 General Plan Amendment Submitted - 5 Local Coastal Program Amendment 6 OC Master Plan of Arterial Highways 7 Precise Plan of Street Alignment Specific Project Approval 8 Coastal Development Permit DRB DRB Note: Planning Commission approval 9 Conditional Use Permit DRB DRB contingent on land use regulations 10 Tentative Tract Map SC being approved as indicated above. Redevelopment Actions 11 Disposition and Development Agreement 0 LEGEND • City of Huntington Beach Coastal Commission Month Environmental Processing Orange County Transportation Authority 4 Prepare Initial Study 40 City Council Hearing 5 Environmental Assessment Committee Meeting City Redevelopment Agency Hearing 6 Notice of Preparation (30 day response period) Cj Planning Commission Hearing 8 Complete Preparation of EIR Coastal Commission Hearing 9-10 Public Comment Period (45 days) ® OC Transportation Authority Hearing DRB Design Review Board EAC Environmental Assessment Committee Staff begins ongoing meetings with Orange County SC Subdivision Committee Trans ortation Authority and Coastal Commission staff Community Development Department 6/18/96 List of Future Issues A�"TACHMENT FUTREE ISSUES TO BE ADDRESSED Initial Issues Which will Dictate Future Steps Land Use Compatibility/Overall Downtown Objectives Circulation (regional/local) Other Issues Economic Terms Driftwood Relocation Oil Pipeline Relocation Hazardous Materials/Soils Remediation Beach Maintenance Facility Relocation Wetlands Mitigation Pedestrian Overcrossing Beach Cabana Affordable Housing Obligations