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HomeMy WebLinkAboutADOPT RESOLUTION 2007-42 - RECEIVE AND ACCEPT CALIFORNIA COA Huntington Beach Independent has been adjudged a newspaper of general circulation in Huntington Beach and Orange County by Decree of the Superior Court of Orange County State of California under date of Aug 24 1994 case A50479 PROOF OF PUBLICATION STATE OF CALIFORNIA ) f ) SS I COUNTY OF ORANGE ) I am the Citizen of the United States and a CITY OF HUNTINGTON BEACH COASTALA ACOMMISSION LEUL resident of the Count aforesaid I am over COASTAL ROGRAMC AL y ORDINANCE N NO 3774 NO O the age of eighteen years and not a party AdopCoun,lith City 206 WITH SUGGESTED I MODIFICATIONS ON AUGUST 6 2007 1 APRIL 11 2007 THE to or interested in the below entitled matter AN ORDINANCE OF THE COASTAL COMMISSION CITY OF HUNTINGTON ADOPTED REVISED FIND am a principal clerk of the HUNTINGTON IBEACIH AMENDING THE INGS REFLECTING THE sHUNTINGTON BEACH COMMISSIONS OCTOBER BEACH INDEPENDENT a newspaper of (ZONING AND SUBDIVI ACTION general circulation printed and published in ISION ORDINANCE BY ADOPTION OF THIS ORDI (AMENDING SPECIFIC NANCE ACCEPTS AND PLAN 5 (DOWNTOWN AGREES TO THE CALI the City of Huntington Beach County Of 1SPEGIFIt: PLAN) AND FORNIA COASTAL COMCHAPTEFINI MISSIONS SUGGESTED Orange State of California and the TIONS)ER 04 (USE S 203 D CLAS MODIFICATIONS AND AP SIFICATIONS) AND 2111 PROVES AND INCORPO attached Notice is a true and complete copy (COMMERCIAL DIS RATES THE COASTAL IFI as was printed and published on the CR0 NSF 0 REMEO +L C p COMMISSIONS M CATIONS INTO OURR LO LO AMENDMENT NO 206I CAL COASTAL PROGRAM following date(s) TO MODIFICATIONS (COASTAL ELEMENT ANDI MADE BY THE CAL IFOR IMPLEMENTING ORDI NIA COMMISSION NANCES) i I SYNOPSIS THE FULL TEXT OF THE + THE CITY COUNCIL AP , ORDINANCE IS i AVAIL PROVED GENERAL PLAN ABLE IN THE CITY! AMENDMENT NO 03 03 CLERK S OFFICE LOCAL COASTAL PRO PASSED AND ADOPTED( GRAM AMENDMENT �bytheCityCouncilofthe (LCPA) NO 03 02 AND City of Huntington Beach AUGUST 1 6, 2 0 0 7 Z O N I N G T E X T at a regular meet+by held AMENDMENT NO 0303the ON MARCH 21 2005 following roll call vote THESE WERE APPLICA AYES Bohr Carch+o TIONS SUBMITTED BY Cook Coerper Green CTHE ROBERT MAYER Hansen klardy CORPORATION WITH NOES None CONCURRENCE BY ABSTAIN None MAKAR PROPERTIES TO ABSENT None ALLOW FOR TIMESH This ordinance is effec ARE TYPE USES ON I five 30 days after THEIR RESPECTIVE11 adoption or in accor PROPERTIES dance with State Low I declare, under penalty of perjury that the THE LCPA SUBMITTAL effective immediately p y p � ry WAS FORWARDED TO upon approval of the THE CALIFORNIA California Coastal Com foregoing is true and correct COASTAL COMMISSION mission AS LOCAL COASTAL PRO CITY OF GRAM AMENDMENT 2 O6 HUNTINGTON BEACH FOR REVIEW AND AP 2000 MAIN STREET PROVAL IN MAY 2005 HUNTINGTON BEACH Executed On AUGUST 16 2 7 ON OCTOBER 12 2006 714 CA 3 648 52 i OAN L FLYNN I at Huntin ton Beach California CITY CLERK g Published Huntington (Beach Independent Au gust 16 2007 083 752 Signature I I 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)590-5071 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 HNB LCPA 2-06 psthrg Itr sgmd crtn 7.2.07 my - Exhibit"A" Resolution No.2007-42 APPENDIX A HNB 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 sb*e Gut text-. Text added as a result of the Commission's action is shown in b l double underline. Text removed as a result of the Commission's action is shown in de—twhi r•/er//ne c.{r'4e out Iev* 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 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 April 2007 Page 2 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. 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 OwnWOperator- The entity that owns and operates a hotel. ►f the hotel operator is separate from the hotel owner both are ioingy and severally responsible for ensuring compliance with the requirements described in this LCP and/or recorded against the property, as well as jointly 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 Overnig t 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) HNB 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 Hote/, 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 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, 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), master-^'a^ vWeGt 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 3.2.4 and re-number policies accordingly: Any hotel rooms for which a certificate of occupancy has been issued at 3 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings Apri12007 Page 25 HN8 LCPA 2-08 tmshrs RF rvsd sugmods 4.07 my 25 RCA ROUTING SHEET INITIATING DEPARTMENT: PLANNING SUBJECT: LOCAL COASTAL PROGRAM NO. 2-06 (TIMESHARES) COUNCIL MEETING DATE: July 16, 2007 RCA ATTACHMENTS _ STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached Not Appl!cable ❑ Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) AttachNot Applicable p Commission, Board or Committee Report (If applicable) Attached ❑ Not Ap licable Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable EXPLANATION FOR MISSING ATTACHMENTS' REVIEWED RETURNED FORWARDED Administrative Staff ✓� Deputy City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: (Below • . For Only) RCA Author: SH:MBB:RM CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN August 8, 2007 CITY CLERK Teresa Henry, District Manager California Coastal Commission South Coast Area Office 200 Oceangate, Ste. 1000 Long Beach, CA 90802-4302 Re: NOTICE OF ACTION -HUNTINGTON BEACH LOCAL COASTAL PROGRAM AMENDMENT NO. 2-06(TIMESHARES) Dear Ms. Henry: At their regular meeting held Monday, July 16, 2007, the City Council of the City of Huntington Beach took action on the following items: 1) Adopted Resolution No. 2007-42, "A Resolution of the City Council of the City of Huntington Beach Which Acknowledges Receipt of the Coastal Commission Action and Accepts and Agrees to Local Coastal Program Amendment No. 2-06 as Modified",and 2) Adopted Resolution No. 2007-43, "A Resolution of the City Council of the City of Huntington Beach Amending the Local Coastal Program by Amending the Coastal Element;and 3) Approved for Introduction Ordinance No. 3774, "An Ordinance of the City of Huntington Beach Amending the Huntington Beach Zoning and Subdivision Ordinance by Amending Specific Plan 5 (Downtown Specific Plan) and Chapters 203 (Definitions), 204 (Use Classifications), and 211 (Commercial Districts) Thereof to Conform LCP Amendment No. 2-06 to Modifications Made by the California Coastal Commission." At their regular meeting held Monday, August 6, 2007, the City Council of the City of Huntington Beach adopted Ordinance No. 3774_ Enclosed please find a copy of the Request for City Council Action dated July 16, 2007 that includes executed copies of Resolution Nos. 2007-42 and 2007-43, and Ordinance No. 3774, along with relevant pages from Action Agendas dated July 16, 2007 and August 6, 2007. If you have any questions regarding this matter, please contact my office at(714) 536-5227. Sincerely, V4, J n L. Flynn i Clerk nclosures: Request for City Council Action dated July 16, 2007 Action Agenda Pages 5 and 13 C: Penny Culbreth-Graft, City Administrator Jennifer McGrath, City Attorney Scott Hess, Director of Planning Mary Beth Broeren, Principal Planner Rosemary Medel, Associate Planner G:NOA\LCPA 2-06 (Telephone: 714-536-5227) C Council/Agency Meeting Held: -116 Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied L—� Ci tre ler s Sign Council o Meeting Date: 7 16/2007 Department ID Number: PL07-15 CITY OF HUNTINGTON BEACH 'REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY C UNCIL MEMBERS SUBMITTED BY: PEN LOP�LBRETH-GRAFT, D A, City Administrator PREPARED BY: SCOTT HESS, Director of Plannin4jv--- SUBJECT: ADOPT RESOLUTIONS AND ORDINANCE TO ACCEPT MODIFICATIONS TO LOCAL COASTAL PROGRAM AMENDMENT NO. 2-06 APPROVED BY THE CALIFORNIA COASTAL COMMISSION AND AMEND THE LOCAL COASTAL PROGRAM ACCORDINGLY Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Transmitted for your consideration are two resolutions and an ordinance relative to Local Coastal Program Amendment (LCPA) 2-06 for the purpose of: 1) accepting California Coastal Commission's approved modifications to the LCPA, 2) approving revisions to the Local Coastal Program Coastal Element and 3) approving modifications to the Downtown Specific Plan SP 5 (Districts 7 & 9) and Zoning and Subdivision Ordinance Chapters 203 (Definitions), 204 (Use Classifications) and 211 (Commercial Districts). The latter two actions are required to formally adopt the changes suggested by the Coastal Commission for the LCPA. Staff recommends the City Council approve the request because the modifications do not change the intent of the City Council's previous approval of the Coastal Element. Funding Source: Not Applicable Recommended Action: Motion to: 1, " Adopt Resolution No. 2nn7-42 (ATTACHMENT NO. 1), 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, and forward to the California Coastal Commission," 2. Adopt Resolution No. 2007-43 (ATTACHMENT NO. 2), a resolution of the City Council of the City of Huntington Beach amending the Local Coastal Program by amending the Coastal Element," and REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 7/16/2007 DEPARTMENT ID NUMBER: PL07-15 3. Adopt Ordinance No. 3774 (ATTACHMENT NO. 3), an ordinance of the City of Huntington Beach amending the Huntington Beach Zoning and Subdivision Ordinance by amending Specific Plan 5 (Downtown Specific Plan) and Chapters 203 (Definitions), 204 (Use Classifications), and 211 (Commercial Districts) thereof to conform LCP Amendment No. 2-06 to Modifications made by the California Coastal Commission." Alternative Actions : The CityCouncil may take the following alternative actions : Y 9 ( ) "Continue the Modifications to Local Coastal Program Amendment No. 2-06 and direct staff accordingly." Analysis: A. PROJECT PROPOSAL: Applicant: Shawn Milbern, The Robert Mayer Corporation, 660 (Newport Center Drive, Suite 1050, Newport Beach, CA 92660. Location: Downtown Specific Plan, District Nos. 7 and 9 (North side of Pacific Coast Highway between First Street and Beach Blvd.) Local Coastal Program Amendment No. 2-06 is being brought to the City Council for acceptance of the California Coastal Commission's suggested modifications to the Local Coastal Program as they pertain to the allowance of timeshares, condominium hotels and fractional interest units within the Coastal Zone, and specifically within the Waterfront and Pacific City master planned areas. All of the modifications are presented in the approval letter from the Coastal Commission (Attachment No. 4). The process for approving the modifications involves two resolutions and an ordinance in order to: 1) accept and agree to the California Coastal Commission's suggested modifications, and 2) to approve and incorporate the Coastal Commission's modifications into our Local Coastal Program (Coastal Element and Implementing Ordinances). Upon transmittal of Attachments No. 1 through 3 to the Coastal Commission, the Executive Director of the Commission will determine if the City has complied with the Commission's action. The LCPA for the Coastal Element is not effectively certified until such determination is made. B. BACKGROUND: The City Council approved General Plan Amendment No. 03-03, Local Coastal Program Amendment No. 03-02 and Zoning Text Amendment No. 03-03 on March 21, 2005. These -2- 7/2/2007 4:40 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 7/16/2007 DEPARTMENT ID NUMBER: PL07-15 were applications submitted by The Robert Mayer Corporation, with concurrence by Makar Properties, to allow for timeshare" type uses on their respective properties. The LCPA submittal was forwarded to the California Coastal Commission as Local Coastal Program Amendment 2-06 for review and approval in May 2005. On October 12, 2006 the California Coastal Commission approved Local Coastal Program No. 2-06 with suggested modifications. On April 11, 2007 the Coastal Commission adopted revised findings reflecting the Commission's October action (Attachment No. 4). Section 13537 of the California Code of Regulations states that the local government must accept and agree to the modifications by resolution within six months of Commission action or the Coastal Commission's approval expires. Recognizing that the six month period, which ended April 10, 2007, would elapse before Coastal Commission staff would even bring the revised findings to the Commission for approval, on March 15, 2007 the Coastal Commission extended the City Council's six month time limit to accept the suggested modifications for a period of one year to April 10, 2008. C. STAFF ANALYSIS AND RECOMMENDATION The purpose of the suggested modifications is to maximize public access to coastal resources but still allow private ownership of visitor accommodations. In this regard, the Coastal Commission approved a significant number of modifications that address how the ownership properties (condominium hotel at Waterfront and fractional interest units at Pacific City) must be operated as well as limited the number of total and consecutive days the owners could stay in their units. The modifications also include additional definitions for consistency as well as changes that affect all lodging properties in the Coastal Zone. The more substantive modifications include: • Added language stating that no existing hotel rooms may be converted to a limited use overnight visitor accommodation (LUOVA) (this is the new category used by the Commission to refer to timeshare, condominium hotel, fractional hotel or other similar use). • Limits LUOVAs in the Commercial Visitor Districts to only the Pacific City and Waterfront properties. • Allows Pacific City hotel to have 10 percent of its rooms as fractional interest and limits an owner's duration of stay to 90 days per year, with a maximum of 29 consecutive days. • Allows Waterfront to have a 100 percent condominium hotel (cannot convert either of the existing hotels) and limits an owner's duration of stay to 90 days per year, with a maximum of 29 consecutive days. • Requires both Pacific City and Waterfront LUOVA hotels to make rooms not occupied by their individual owners available to the general public. • Requires both Pacific City and Waterfront developers to pay $3,000/per LUOVA room to assist in the creation of lower cost overnight visitor accommodations in or near Huntington Beach. -3- 7/2/2007 4:40 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 7/16/2007 DEPARTMENT ID NUMBER: PL07-15 City staff and the developers of the Pacific City and Waterfront projects have evaluated the suggested modifications approved by the Coastal Commission and are in agreement with them. Staff recommends the City Council approve the suggested modifications from the Coastal Commission because the modifications will meet the intent of the goals and policies of the General Plan and the Certified Local Coastal Program. Strategic Plan Goal: L-4 Create an environment that promotes tourism to increase revenues to support community services and transform the city's economy into a destination economy. The inclusion of ownership units within Districts 7 & 9 of the Downtown Specific Plan will increase the opportunity for more revenue to the City due to the extended duration of stays. Studies have shown that because these types of pre-paid hotel stays, vacationers tend to spend more on dining, services and entertainment at the vacation destinations. Environmental Status: The Environmental Assessment Committee reviewed Environmental Assessment No. 03-03 for conformity with the California Environment Quality Act and concluded that all potentially significant effects related to the proposal to allow timeshare type uses were analyzed and adequately addressed in EIR No. 94-1, prepared for the comprehensive update of the General Plan. Therefore, no further review is required. Attachment(s): City Clerk's Page Number No. Description 1. Resolution No. 2007-42 , a resolution of the City Council of the City of Huntington Beach City, California, which acknowledges receipt fo the Coastal Commission action and accepts and agrees to Local Coastal Program Amendment No. 2-06 as modified 2. Resolution No. 2007-43 , a resolution of the City Council of the City of Huntington Beach amending the Local Coastal Program by amending the Coastal Element 3. Ordinance No. 3774 , an ordinance of the City of Huntington Beach amending the Huntington Beach Zoning and Subdivision Ordinance by amending Specific Plan 5 (Downtown Specific Plan) and Chapters 203 (Definitions), 204 (Use Classifications), and 211 (Commercial Districts) thereof to conform LCP Amendment No. 2- 06 to Modifications made by the California Coastal Commission. 4. California Coastal Commission letter received and dated July 2, 2007 4- 7/2/2007 4:40 PM ATTACHMENT # 1 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 y 2007. Ma�or APPROVED AS TO FORM: -72, 07 City Att rney INITI ED AND APPROVED: Z v7 Planning Efirector 2 07-1095/12094 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 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 subiect 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!rand 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 jPacific City), described in Table C-2, subiect to the Wowing 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 year-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 (VQ 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 questrooms (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 mana eg all auestrooms/units as part of the hotel inventory, which management shall include the booking of reservations, mandatory front desk check-in and check-out, maintenance, cleaning services and preparing units for use by_guests and owners. When an individual owner chooses not to occuoy his/her unit, that unit shall be added to the pool of hotel rooms available to the 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 during 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. subiect to the following requirements 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. O aftba asiaqtranm4mift uxUbIn tha Candaminhim- to r mblin an a vear r.+„i,ed bae.ie. A .ssavi.r,„.sf alE7594 of tip e.,,e.i tree+.++/„n:t uiithin tl,e nedaminksm- ntpi fawiiit,e►ja Le. ub dhoti do- d into agnara, 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 owner/operator 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 rental/booking of all guestrooms units. The hotel operator shall manage all 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, cleaning services and preparing►units for use by quests and owners. Owners of individual units 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 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 protected, encouraged, and, where feasible, provided. On oceanfront, waterfront or nearshore areas or lands designated for visitor uses and recreational facilities, an assessment of the availability of lower cost visitor uses shall be completedt 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 Huntington 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/motets, timeshares, eveFRight asr.ammedatieRs, overnight accommodations, cultural facilities, government offices, educational, health, institutional and similar uses. Commercial Visitor(CV) Hotels/motels, dmeshares7 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. In Subarea 4C (Pacific City) only, a Fractional Ownership Hotel subject_ to restrictions maybe allowed. In Subarea 4Q (Waterfront) only, a Condominium-Hotel sublect 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, timemare-, a Fractional Ownership Hotel subject to restrictions, and other uses (as permitted by the "CV"and ECG-'land use cate o s). 4D Permitted Uses Category: "-F7" Waterfront Hotels/motels, timeshares 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: T me haFe Anv a& er planned develbar e t wherein-. r+ ohaser ' reag . W. • to the r-eGiwre _ unit, rgemW. 2eft2gMni of X . - oeFiGd Gf time that has been er-wi#he aMefted from the useGF 9"WaRGI,01 Replace with the following timeshare definition: Timeshare-Any arrangements 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 LCPA 2-06 Revised Findings April 2007 Page 9 condominium ownership interests, as defined in California Civil Code section 13510). The prima►yunction of the Condominium-Hotel is to provide overnight transient visitor accommodations within every unit that is available to the 92neral 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. SUGGESTED MODIFICATION No. 16 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 quantity 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. !f the hotel operator is separate from the hotel owner both are join!&and severally responsible for ensuring compliance with the requirements described in this LCP and/or recorded a_- ainst the PropeHy, as well as jointly and severally liable for violations of said reguirements and restrictions. SUGGESTED MODIFICATION No. 18 Limited Use Overnight VjsitorAccommodations-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 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: 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_questrooms/units within the Fractional Ownership Hotel facility shall be available as transient hotel rooms. The non-fractional hotel rooms shall be operated as transient overnight visitor accommodations available to thhetc-general public on a daily basis, year-round. b) A maximum of 10% of the total number of questrooms/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 approved time period, which approved time 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-puestroom/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 r 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 occupanctr 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) HNB 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 Overniaht Visitor Accommodation. h) EEI:Qr to issuance of a building hermit and in conjunction wit approval of a coastal deye/op ent permit for any ape of hofel e landowner(s) of the prop rt dM upon which the existing and/or approved traditional hotel units/ooms (Le, transient r s) are or will be developed within Di tmt 7 shall execute and record a deed restrictions) su_biect to the review and appr Pal of the Planning Director and the Executive Director of the Coastal Commission which prohibits the conversion of traditional hole! units/moms to any other type of ownership (ea limited use overn arht Pis"tor accommodations), The deed restriction shall be ,jubmitted for revieW andapproyal of the Plannina Directorand the Executive Director of the Coastal Co mission prior to action on the coastal de-yeLmmont permit. The deed restriction(sj shall run with the land shall be ex cuted and consented to by the existing lessee(s1 of the affected impertv(les) and sh 11 be bindina on the lap owner(s) /es ee(s) and on all successors and assigns of the lance owners) and lessee(s). including without limitation any future lie holders The deed restrktion(A) shall not be removed or changed withQut am2royal of an amendment to the LCP by the Coastal Commission and to the un erlvind coastal development permit However minor c anaes that do not con ict with subsectio ) and g) above may be processed as an amendment to the coastal deve/o ment permit o Iv. unless it is determined by the Director of Planning and the Executive Director of the Coastal Commission Mal" an amendment is not legally re ulmd. 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 Planning, a Declaration of Restrictions or CC & R's (Covenants. Conditions &Restrictions), either of which shall include; 1. All the specific restrictions listed in a throuah 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 reauirements of a through i above cannot be changed without approval of an LCP amendment by the 11 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB 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 recuired. 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. I) 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 owner/operator 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 perpetuity and shall 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 owner/operator 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, shall notify buyers of the following: 1. The owners of a fractional interest in a unit are lojntly 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 Dermit 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 owner/operator shall monitor and record hotel occupancy and use by the general public and the owners of a fractional interest in a unit throughout each year. The monitoring and record keg ing shall include specific accounting of owner usacre for each individual questroom/unit. The records shall be sufficient to demonstrate compliance with the restrictions set forth in a through i 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 to the aerie al ub °i E e�cutive irector of the Coastal Commission upon request and to the auditor required by section q 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 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 required by this Section regarding notice, recordkeeping, and monitoring of the Fractional Interest Hotel. The audit shall evaluate compliance by the hotel owner/operator 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 identifying 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 shall be available to the e e ExecUtLye Director of the boa tal 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 If the hotel owner and the hotel operator at any point become separate entities, the hotel owner and the hotel operator shall be ioint/v and severally responsible for ensuring compliance 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 (restrictionsl 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 a plan 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 & 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 4.9.12 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 changes 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& Rs/Declaration shall not occur without an amendment to the coastal development mrmit 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 Q$3,000 in 2006 dollars (which shall be adjusted annually to account for inflation i.e. according to increases in the Consumer Price Index- U.S. City Avera_ae) times the total quantity of proposed and 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. & Ae leaw:fiw dollar++ w,.r.t that u,111 define u.hat-f" ,Qihf) w deveiw ent war, t:6,ta "I-miner wwct»wv-might via:twr awawrr.mndatiwnc .r.:ii dar,er..f w., the fewmi and mainnai amoniv al evarr.: ht.i: i for ac-ca—M -dat:w.� h a awil iewai:er, wi rw oseiJ �. r deveioomant at tha t:rr,e of d.f.-m,retionanx re,i:eui 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: Timeshare Unots Condominium-Hotel pursuant to section 4.11.13 SUGGESTED MODIFICATION NO. 26 Delete proposed Section 4.11.13 of the Downtown Speck Plan and replace with the following Section 4.11.13: 4.11.13 Condominium-Hotel: May be permitted and shall be conditioned as follows: a� 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. o of fi ,/ ' e S'" 17bdAo4'ded �-n-fe �'F-n,mf -,s.m6'-and calef for inrli•1.Jrr�/ The hotel owner/operator shall retain control and ownership of all structures, recreational amenities.-meeting space, restaurants, "back of house"and other non-quest unit facilities. When the Condominium-Hotel is located on land owned by the City, the hotel owner/operator 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 questroom/units, Whenever any individually owned hotel unit is not occupied by its ownerfs), 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 questroom/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 b 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 agent 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 obligations hereunder. gl 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. 1 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. 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. kjr 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. 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 subiect to the use restriction as if the -igere a single, continuous owner. MI 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. n� I'rlor to issuance of a building permit and in coniun tionw_ith approval of a coastal develonment hermit for the Condoiinium- Hotel the land wne (s) of the propertv(ies) within Di trict 9 upon which the traditional units/rooms (Le. transient hotel rooms) are deyeloped shall execute and record a deed res iction(s). subiect to the review and approval of the Planning Director and the xeoutive Director of the Coastal Commission, which prohibits the cony rsion of those traditional hotel units(rooms to any other 17 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 18 toe of ownership( rt. limited use ove nig t vi itor ac�mmodatio s). The deed restriction shall be submitted for vi w and apP oval of the Pia mina Direc or and the Executive Dimc or of the Coastal Commission prior to action on the coast/ d velopment permit The deed restriction shall run with the land, _shall bee ecuted apd co seated to by the existing lessee(s) of the aff cted gmed&as) and_shall b bindinci on the landowner(s) and Lessee(s) and on all sya eMorm and assigns of the andowner(s) and/essee(s) inchiMa without limitation anv future lie holders This deed res ictionfs shall not be removed or anaed without appWyAl of an amendment to fhe underlying copstal development De mit and approv l of an amendment to the LCP by the Coastal Commission, However minor chanaes that do no conflict with subsection a�and m) above m�v be processed as an amen mgnt to the coastal development permit only, unless it Is determined by the Director of Plannina and the Executive Director of the Coastal Commission that such an amendment is not legally reauir�i: 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 &R's (Covenants, Conditions & Restrictions) either of which shall include: 1. All the specific 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 changes 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 le_aally required. !f 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 clear&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 p1 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. 11 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 chancres 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 lecrally required. r The hotel owner/operator or any successor-in-interest shall maintain the legal ablllty to ensure compliance with the terms and conditions stated above at aH 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-quest 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. I All documents related to the markeyUg and sale of the condominium interests, including marketing materials, sales contracts, deeds, CC & Rs and similar documents, shall notify buyers of the followin-g: 1. Each owner of any individual hotel unit is jointly 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. t� 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 durin_g 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. I The hotel owner/operator and any successor-in-interest hotel owner and operator shall monitor and record hotel occupancy and use by the-general public and the.owners of individual hotel units throuahout 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 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 ..eaa-.-'gn,••h"^Executive Director of the Coastal 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. 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 audidna company, 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 regarding occupancy restrictions, notice, recordkeepiM 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 t,ndin_gs, conclusions and the evidence relied upon, and such resort shall be submitted to the Director of Planning, for review and approval, and shall be available to the~awera ..,.�►�,.Executive Dire for of the Coastal Commission upon reauest within six months after the conclusion of each one year period of hotel operations. After the 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. 20 — Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 21 SUGGESTED MODIFICATION NO. 27 Add new Section 4.11.14, as follows: 4.11.14!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. If the hotel owner and hotel operator become separate entities, they shall be ioint/y 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 application for a Condominium-Hotel shall 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 aarreement 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 pertaining to compliance with and enforcement of the terms and conditions required by Section 4.11.13 and this section including deeds and CC$Rs/Dectaration of Restrictions shall not occur without an amendment to the coastal development permit unless It Is determined by the Director of Planning that an amendment is not le4ally 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 (4.11.13)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 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 S5�0A0$3.000 in 2006 dollars,(which shall be adjusted annually to account for inflation i.e. according to increases in the Consumer Price Index— U.S. City Average) times z ° the total quantity of proposed ind 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 identiflab/e 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. dnil•p:sawni w{that.ufll.d f<we whw* .-+aelwwme t gon ta.6-4e «lwwer cant"almmlobt•iCnlfwr i.wMMGda+iw_.+_e will.deNe_.,.d on the Incal and r gional won fix a. w,.er fwh+vl i+wr_,eeew,rs+wr/• *lwr,e f, we andlocation wf nrwg.. development ffit the ♦ice of discrretio ar,i reWev. 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 211-4, 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-Hotel/ - PC f fflfor lettered as aparonriatel Fractional Owner_shla Hotel Quasi Residential Timeshares - PC FIG (1), (J) Residential Hotel - PC PC (J) Single Room Occupancy PC PG 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]: (M In the CV District, Condominium-Hotels and/or Fractional Interest Hotels are allowed oniv at the Pacific City(Downtown Specific Plan District 71 and Waterfront(Downtown Specific Plan District 9)sites. Refer to Downtown Specific Plan. Sugaested 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 loindy and severally 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 riaht 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.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 24 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. 34 Replace existing definition of"timeshare" in Chapter 204 with the following: Timeshare-Any arrangement elan, or similar program, other than an exchange program, whereby a purchaser receives ownership riahts in or the riaht 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 new definitions to Chapter 204: Condominium-Hotel-Facility providing overni-aht visitor accommodations where ownership of at least some of the individual auestrooms (units) within the larger building or complex is in the form of s2earate 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 generalgublic 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 guantity of days per year and each unit available for fractional ownership will have multiple owners. 24 Exhibit"A" Resolution No.2007-42 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings Apri12007 Page 25 HNB 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 ) 1, 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 ATTACHMENT #2 RESOLUTION NO. 2007-43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE LOCAL COASTAL PROGRAM BY AMENDING THE COASTAL ELEMENT WHEREAS, pursuant to State Planning and Zoning Law,the City Council of the City of Huntington Beach has held a public hearing relative to Local Coastal Program Amendment No. 2-06 wherein all information presented at said hearing was carefully considered, and after due consideration of the findings and all evidence presented to the City Council, the City Council found that such amendment to the Coastal Element was proper, and consistent with the Huntington Beach General Plan and Huntington Beach Local Coast Program; and Pursuant to the California Coastal Act, Local Coastal Program Amendment No. 2-06 was referred to the Coastal Commission for its consideration and certification; and The Coastal Commission has certified Local Coastal Program Amendment No. 2-06 with suggested modifications; and The City Council wishes to accept and approve said modification in accordance with the provisions of the California Coastal Act, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: Section 1. The proposed amendment to the Local Coastal Program Amendment No. 2-06 consisting of proposed modifications to the Coastal Element as identified on the attached Exhibit A and incorporated by this reference as though fully set forth herein, is hereby adopted and approved. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of July , 2007. a REVIEWED AND APPROVED: APkR0VM AS TO FORM: ity Ad inistrator /- aCttorney 1�Ia- tJ- INITIA D AID D PPROVED: 7 Z 7 Plann' g Dire or 07-1095/11789 Exhibit"A" Resolution No.2007-43 Exhibit"A" Resolution No.2007-43 APPENDIX A HNB 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 ft i4e out text Text added as a result of the Commission's action is shown in b d" italic" double underline. Text removed as a result of the Commission's action is shown in double un de hte hike out text 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 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 aruestrooms (units) within the larger buildin4 or complex is in the form of separate Exhibit"A" Resolution No.2007-43 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 2 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 daily basis year-round, while providing both general public availability and limited owner occu,Rancy 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 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 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 Owner/Operator— The entity that owns and operates a hotel. If the hotel operator is separate from the hotel owner both are loin!&and severally responsible for ensuring compliance with the requirements described in this LCP and/or recorded against the property, as well as ioointly 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 Overnice t Visitor Accommodations—Any hotel motel, or other similar facility that provides,overnight visitor accommodations wherein a Purchaser receives the right in perpetuity, for lift or a term of years, to the 2 Exhibit"A" Resolution No.2007-43 Appendix A(Suggested Modifications) HNB 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 pro_aram, 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. SUGGESTED MODIFICATION NO. 6 Delete the City's proposed new language to Land Use Plan Policy C 32.4 (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), master- lan arolegt. 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 3.2.4 and re-number policies accordingly: Any hotel rooms for which a certificate of occupancy has been issued at 3 Exhibit"A" Resolution No.2007-43 Appendix A (Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 4 the effective date of adoption of this Section shall not be permitted to be converted to a Limited Use Oveml-ght 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 subiect to the specific restrictions on quantity, 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(Pacific City), described in Table C-2, sublect 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 Questrooms (units) within the Fractional Ownership Hotel facility shall be available to the-general public as traditional use hotel rooms year-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 (VQ intervals within any one-year period. The hotel owner/operator shall retain control and ownership of all land, structures, recreational amenities, meetima space, restaurants, "back of house"and other non-Quest facilities. The non-fractional use Questrooms (units)shall be available to the Qeneral 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. 2007-43 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 5 The hotel operator shall manage all_ouestrooms/units as part of the hotel inventory which management shall Include the booking of reservations, mandatory front desk check-in and check-out, maintenance, cleaning services and preparing units for use by guests 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 during 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 C-2,subject to the following requirements as well as those contained in Section 4.11.13 of the Downtown Specific Plan; An by otel 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. o 11HUMM an how- 11"It's OfFaR r.�rrhiJ/ ��: A r»:+virrrrr� �f 7P0/ .,F if�+ r-rrdt,ir�wr»/rrr,ii�. ui)ih/r� iMe 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 owner operator 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 rental/bookin_g of all guestrooms units. The hotel operator shall manage all guestrooms/units as part of the hotel 5 Exhibit"A" Resolution No.2007-43 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 prevaring units for use by quests and owners. Owners of individual units 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 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 protected, , encouraged, and, where feasible, provided. On oceanfront, waterfront or 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 offset the lack of the preferred lower cost facilities in or near Huntin-aton 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, "eshwes�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.2007-43 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 7 the City. In Subarea 4C(Pacifc 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, imeshares, a Fractional Ownership Hotel subject to restrictions, and other uses (as permitted by the"CV"and 9CG"land use cate o s). 4D Permitted Uses Category: "-F7" Waterfront Hotels/motels, timeshares supporting visitor-serving commercial 7 Exhibit"A" Resolution No.2007-43 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 SUGG STED MODIFICATION NO. 14 In the Dow own Specific Plan Section 4.0.04 (Definitions), delete the proposed timeshares d 'nition: A\ Replace with the following timeshare %inition: Timeshare—An arran ement /animilar ro ram other than an exchan a pro-gram, whereby a ourchaser eceives ownership rights in or the right to use accommodations fora vertad of time less than a full year during any given year on a recuEyo basis&C more than one year, but not necessarily for consecutive years. Add the following definitions to the Downtown Specific an Section 4.0.04 (Definitions), in alphabetical order: SUGGESTED MODIFICATION No. 15. Condominium-Hotel—Facili rovldln overni ht visitor a ommodatlons where ownership of at least some of the individual ouestroonks (units) within the larger building or complex is In the form of separate 8 Res. No. 2007-43 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH j 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 Cit Jerk and ex-officio Oferk of the City Council of the City of Huntington Beach, California ATTACHMENT #3D ORDINANCE NO. 3774 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE BY AMENDING SPECIFIC PLAN 5 (DOWNTOWN SPECIFIC PLAN) AND CHAPTERS 203 (DEFINITIONS), 204 (USE CLASSIFICATIONS), AND 211 (COMMERCIAL DISTRICTS) THEREOF TO CONFORM LCP AMENDMENT NO. 2-06 TO MODIFICATIONS MADE BY THE CALIFORNIA COASTAL COMMISSION WHEREAS, pursuant to State Planning and Zoning Law, the City Council of the City of Huntington Beach has held a public hearing relative to Amendment No. 2-06 wherein all information presented at said hearing was carefully considered, and after due consideration of the findings and all evidence presented to the City Council, the City Council found that such amendment to the Specific Plan was proper, and consistent with the Huntington Beach General Plan and Huntington Beach Local Coast Program; Pursuant to the California Coastal Act, Local Coastal Program Amendment No. 2-06 was referred to the Coastal Commission for its consideration and certification; and The Coastal Commission has certified Local Coastal Program Amendment No. 2-06 with suggested modifications; and The City Council wishes to accept and approve said modifications in accordance with the provisions of the California Coastal Act; The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. The proposed amendments to the Downtown Specific Plan(SP 5) and Huntington Beach Zoning ad Subdivision Ordinance (Chapters 203, 204 and 211) as identified on the attached Exhibit A and incorporated by this reference as though fully set forth herein, and is hereby adopted and approved. SECTION 2. This ordinance shall become effective 30 days after its adoption. 07-1095/11790 1 Ordinance No. 3774 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 6th day of August 1 2007. r ATTEST: A OVED AS TO FORM: c City Clerk V �. City Att6mey 4 REVIEWED AND APPROVED: INITI D AND APPROVED: City inistrator Dire or f lanning 07-1095/11790 2 Ord. No. 3774 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 ordinance was read to said City Council at a regular meeting thereof held on the 16th day of July,2007,and was again read to said City Council at a regular meeting thereof held on the 61h day of August,2007, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy NOES: None ABSENT: None ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on August 16,2007. In accordance with the City Charter of said City Joan L. Flynn, City Clerk City Clerk and ex-officio C erk Deputy City Clerk of the City Council of the City of Huntington Beach, California Ordinance No. 3774 Ordinance No.3774 APPENDIX A HNB 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 ftrllre-Gut text Text added as a result of the Commission's action is shown in by1dffaftr,. double unlerline. Text removed as a result of the Commission's action is shown in bey An••I�/� • iJnrlene+ c.tr:/.. �••f taus 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 US PLAN SUGGESTED MO (CATION NO. 1 Add the following definitio the Glossary, Huntington Beach General Plan, which is found at the end oft certified Land Use Plan, pages IV-C-146 through IV-C-155, in alphabetical order: Condominium-Hotel—Facili rovi ovemi ht visitor accommodations where ownershipof at least some of th ndividual uestrooms units within the larger buildin or complex is in'Me form of separate Ordinance No.3774 Appendix A(Suggested Modifications) HN3 LCPA 2-06 Revised Findings April 2007 Page 8 uses (in accordance with Development Agreement), a Condominium-Hotel subject to restrictions. IMPLEMENTATION PLAN SUGGESTED MODIFICATION NO. 14 In the Downtown Specific Plan Section 4.0.04 (Definitions), delete the proposed timeshares definition: periods Into whkh aeried of dme that has been of!wN be allGited hem the use cw 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 durin_g 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 provlding overnight visitor accommodations where ownership of at least some of the individual questrooms (units) within the larger building or complex Is in the form of separate 8 Ordinance No.3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings Apri12007 Page 9 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. SUGGESTED MODIFICATION No. 16 Fractional Ownership Hotel-Facility arovidimg 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 quantity 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. !f the hotel operator is separate from the hotel owner both are iointiy and severalty 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. 18 Limited Use Overnight lrsitor 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, parcels 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 occuyancv 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 Ordinance No.3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 10 follows: TimeshaFe Units 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 auestrooms/units within the Fractional Ownership Hotel facility shall 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 approved time Period, which approved time period at the option of the hotel owner/opera(or may range up to three calendar months,in any one calendar near. c) The hotel owner/operator retains control and ownership of all land, structures, recreational amenities, meeting slaace, restaurants, "back of house"and other non-puestroom/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 reportina 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 Overniaht Visitor Accommodations or other proiect 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 Ordinance No.3774 Appendix A(Suggested Modifications) NNB LCPA 2-06 Revised Findings April 2007 Page I I 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 Overniaht Visitor Accommodation. h) Pry issuance_of a buildlna permit and in conlunctlon with aogroval of a coal Ida elop ent permit for3any tune of hotel faci W, the jAndowner( ) of the o j:Qpe&vies uoon which the existing andlor approved traditional hotel uni &i2oms a% transient hotel rQs) are or will be developed within istrict 7 shall execute and McoW a deed restrictiozlsl sect to the review and avvroval of the Planning Direct, and the Executive Director of the Coastal commission. which prohibits the mymmkw of traditional h teI unfits"o s to any other twe of Qwnershifa a limited use overnightvisitbraccomm9dAdom). The deed restriction shall be ,Submitted for review and approval of the Planning Director and the Executive Director of the Coastal Co mission prior to action on the coastal development permiL The deed restricdon(s)_sbff run wit Me land.shall be executed and consented to by the existino Lessee(s) of the affect d orope Pies) and sh H be bindina on the IandownerYs) les a&l and on aN successors and Mqans of the n ownerfs) and essee4). includina without limltatlon any future ffienhoiders. The deed restriction(s)shah not be removed or chanced without annrgval of an amMftent to the LCP-by-the Coastal ,Orr missiorand to the underiving wastal daz&Pment nermiL However minor changes that do not conflict with subsection a)and a) above may be processed as an amendment to the coastal development hermit o ►v. unless it is determined by the Director of Planning and the Executive DiA=r of the Coastal Commission tha an amendment is not leaal/y reaukyd. 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 durina 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 Planning, a Declaration of Restrictions or CC &R's (Covenants, Conditions &Restrictions), either of which shall include: 1. 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 Ordinance No.3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page U Coastal Commission and subsequent coastal development permit amendment However, minor changes that do not conflict with a)-1) 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 Declarationl=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 Declaradon/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 le_galiv required. m) The hotel owner/operator or any successor-in-interesthotel owner/operator shall maintain the legal ability 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 a fractional Interest in a unit is iointly and severally liable with the hotel owner/operator for violations of the terms and conditions hereof Imposed by the speclal 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, shall notify buyers of the following: I. The owners of a fractional interest in a unit are Jointly and severally liable with the hotel ownerloperator 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 Ordinance No.3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 13 to the general ublic 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 occupancy and use by the general public and the owners of a fractional interest in a unit throughout each year. The monitoring and record keggin_a shall Include specific accoundna of owner.usage for each individual _auestroom/unit The records shall be sufficient to demonstrate compliance with the restrictions set forth In a through I above The hotel owner/-operator shall also maintain documentation of rates paid for hotel occupancy and of adverdsing and marketing efforts. All such records shall be maintained for ten years and shall be made available to the City, and to the^g"a"a'nubLD^executive Director of the Coastal Commission upon request and to the auditor required bx section below. Within 30 days of commencing hotel operations, the hotel owner/operator shall submit notice to the Director of Plannina 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 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 required by this Section reaardino notice, recordkeepina, and monitoring of the Fractional Interest Hotel. The audit shall evaluate compliance by the hotel owner/operator 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 identlfyln_a the auditor's findinas� 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 " Executive DirecW of the pasta/Comtnisslon upon request, within six months after the conclusion of each one year period of hotel operations. After the 13 Ordinance No.3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 14 initial rive calendar years, the one-year audit erg iod 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 lolntly and severally responsible for ensuring compliance 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 frestrictions) 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 aplan specifving how the requirements outlined In 4.9.12 will be implemented. The plan must include, at a minimum, the fonn of the sale, deed and CC & Rs/Declaration 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 changes to the approved plan and subsequent documents pertaining to compliance with and enforcement of the terms and conditions reaulred by Section 4.9.12 and this section including deeds and CC& R'slDeclaradon 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 Ordinance No. 3774 Appendix A(Suggested Modifications) NNB LCPA 2-06 Revised Findings A012007 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 si_gnihcant fundln_g.to agsist 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$ $3,000 in 2006 dollars(which shall be adjusted annually to account for inflation i.e. according to increases in the Consumer Price Index— U.S. City Average) times ZWwA&the total quantity of proposed Fien 1wm-ar^^^* and 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 reci gent 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. ff the in lieu fee, or any portion thereof, is not committed toward a use ae. 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. r/nj%,4QA WF#wwr, tit:,ta "/w,u^r wwc t»wv i�r/,t vieitwr th^ /wwa/ and reoiena/ct, DIV G -daya-In.0i,7wnt at the "n3a of diewrwt/wnary r^viwu, 15 Ordinance No.3774 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: Timeshare Units 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: pI Anv 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. b) d M3jFjMggj" t*f 7 of the total. ,.m/.er-ois,t.neime ..,ifc. .»iv own The hotel owner/operator shall retain control and ownership of all structures, recreational amenities, meeting 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 owner/operator shall be a leaseholder of the land upon which the Condominium-Hotel exists. c� The Condominium-Hotel facility shall have an on-site hotel operator to manage rentaMooking of all guestroom/units. Whenever any individually owned hotel unit is not occupied by its ownerlsh that unit shall be available for hotel rental by the general public on the same basis as a traditional hotel room. qQ The hotel operator shall market and advertise all rooms to the general public. Unit owners may also independendv 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 guestroomlunits 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 Ordinance No.3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 17 t� If the hotel operator is not serving as the rental agent for an individually owned unit then the hotel operator shall nevertheless have the right,Lworking! 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 obll_gatlons hereunder. g) All agwiroomlunit keys shall be electronic and created by the hotel operator upon each new occupancy to control the use of the individually owned units. h1 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. 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. kI Each individually owned hotel unit shall be used by its owneri(s) (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 sublect to the use restriction as if they were a single, continuous owner. !V1 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 gro ect that differs from the approved Condominium-Hotel. n) Prior to Issuance of a building permit and in conlunction Sri h aRmyal_of a coastal development perrnit for the oadomin' Hotet the landowne (s) of the oropertv(les) within Di trlct 9 upo which the tra_dltional u_niWme_ms (I.e. transient hotel rooms)a deyel uo ed shall execute and record a deed rest-action(s). sublect fQ.th_e r-qv eW and eRMyai of the Plannina Director and the fame utive Director f the Coastal Commissiom which prohibits the conversion of those traditional hotel unitskooms to any of er 17 Ordinance No. 3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 18 tune of ow mhlo(e. . Im ted img overnight visitor accommodati Al all be submit ed r-Qyiew and goo oval of the UI aWna Director and the Executive �_ gcfor of the Coa_�tal Commission prior to ac Ion on the c asta/ devu_ -Imment permit The deed restriction shall run with the land shall be executed agd consented to by the existing lessees) of the aff cted n n�) and shaft be bindina on the 1 A), atig(on a/su censors and asslan�of h downa—W and lessee(s), 'n� eluding MOM limitation any future lienholders This deed restriction(s) shall not be removed or c anaed wouut ilygn—VAI of an amendment to the underlying _cQasbi develooment germit and aoorov 1 of an amendment to the MCP by the Coastal-Commission However minor chanoe�that Ito not conflict with subsection al and m) a ve m v be oroce ed as an amendment to tie coasta dexeJapment oermlt oniv�unless it k determined by the_Director of Plannina and the Ex amfte Dkgctor of the Coastal GqmmLujaa that aWh an amen men 1s not ieaa /v reau -yd. j The hotel ownerloperator 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 r which shall Include; 9. All the specific restrictions listed in a through m 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 CC&Rs/Declaradon 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 changes that do not conflict with a)—m] above may be processed as an amendment to the coastal develooment Qermlt, 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 DeclarationlCC&R's on amendments. 18 Ordinance No. 3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 19 pl 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. gl 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 W above may be processed as an amendment to the coastal development permit, unless it Is determined by the Director of Planing that an amendment is not le_valiv required. rl The hotel ownerfterator or any successor-in-interest shall maintain the legal ability to ensure compliance with the terms and . conditions stated above at all times In Per fulty and shall be responsible in all respects for ensuring that all parties subiect to these restrictions comply with the restrictions. Each owner of an individual guest room/condominium unit Is iolntiy and severaW 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. I 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 following 1. Each owner of any individual hotel unit is i i ft and severally liable with the hotel owner-operator for anK violations of the terns 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 owner's) 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 shag 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. t� The hotel_owner/gperator 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 ver calendar year with a maximum of 29 19 Ordinance No.3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings A012007 Page 20 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&Ws or Declaration of Restrictions. ut The hotel owner/operator and any successor-in-interest hotel owner and operator shall monitor and record hotel occupancy and use by the general ublic and the owners of individual hotel units throughout each year. The monitoring and record keeping shall includespecific accounting of owner usage for each individual vuestroom/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 CIW and the ganaml nei lis Executive Director of the Coastal Commission upon request and to the auditor reaulred 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. _v1 Within 90 days of the end of the first calendar year of hotel operadons and within 90 days of the end of each succeeding calendar year, the hotel owner-operator shag retain an independent auditing companZ 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 regarding occupancy restrictions, notice, recordkeevin_a. and monitorina 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 shag instruct the auditor to prepare a report identifying the auditor's findings, conclusions and the evidence relied upon,and such report shall be submitted to the Director of Plannina, for review and approval, and shall be available to the aeneral ou 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 Plannina may grant such approval if each of the previous audits revealed compliance with all restrictions imposed above. 20 Ordinance No. 3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 21 SUGGESTED MODIFICATION NO.2T Add new Section 4.11.14, as follows: 4.11.14 If the hotel owner and the hotel operator at any point become separate entitles, the hotel owner and the hotel operator shall belointiv and severally responsible for ensuring,compliance with the requirements identified above. if the hotel owner and hotel operator become separate entities, they shall be iolndy 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 application for a Condominium-Hotel shall include a plan specifying how the requirements outlined in 4.11.13 will be Implemented. The plan must include,at a minimum, the fonn of the sale deed and CC$ Rs/Dectaradon 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 ownerlo erator. The plan must demonstrate that the ap Ilcant 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 meetin-q these requirements shall be incorporated into the special conditions of approval of any coastal development permit for a Condominium-Hotel. Anv proposed changes to the approved plan and subsequent documents pertalnlnq to compliance with and enforcement of the terms and conditions required by Section 4.11.13 and this section Including deeds and CC$Rs/Declaradon of Restrictions shall not occur without an amendment to the coastal development permit unless It Is determined by the Director of Pianning_that an amendment is not legally required. SUGGESTED MODIFICATION NO. 29 Add new Section 4.11.16, as.foliows: 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 Ordinance No.3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings Apd12007 Page 22 (4,11.131 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 reauired 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 ea&Q j3.000 in 2006 dollars(which shall be adiusted annually to account for inflation Le. according to increases in the Consumer Price Index— U-& Cifv Average) times the total quantity of osed.no-0.4affiog-ar,GUN #ad limited use overni_ht visitor accommodation units 2. Prior to issuance of the coastal development permit,and upon execution of an appropriate agreement between the City and the desianated recipient that assures use of the in-lieu fee for the intended mifigation, 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. Hostelina 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 prolect) within one year of payment of the fee, the In lieu fee shall be made available to be applied toward lower-cost ovemiaht visitor accommodations at Crystal Cove State Park 3 T e oe.ifin dall..r amnyin*f f wid e�o�ne�Lebwf her of-I - !! fJ W-re- ig—b-i v si+ear GGG1 WMGdat1nnn &me and W-aido.+ allorgigGeed level men t t the time of d(sx--fien��m� 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 Ordinance No. 3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings Apri12007 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-HoteV - PC for lettered as WR opriatel Fractional Ownership Hotel Quasi Residential Timeshares - PC PC (1), (J) Residential Hotel - PC PC (J) Single Room Occupancy PC PG 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]: OM in the CV District, Condominium-Hotels and/or Fractional Interest Hotels are allowed only at the Pacific City(Downtown Specific Plan District 7)and Waterfront LDowntown Specific 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 iointly and severally responsible for ensuring compliance with the requirements described in this LCP and/or recorded against the property, as well as jointly and severally 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), or segment of the fagffffy, 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 Ordinance No. 3774 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 24 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. 34 Replace existing definition of"timeshare"in Chapter 204 with the following: Timeshare-Any arrangement, plan, or similar grogram, other than an exchange program, whereby a purchaser receives ownership rights In or the ri_aht to use accommodations for a period of time less than a full year during any given veer, 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_auestrooms(units) within the larger building or complex is in the form of separate condominium ownership interests, as defined in California Civll.Code section 1351(a. The orlmary 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 Ownersft 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 guars tJr of days per year and each unit available for fractional ownership will have multiple owners. 24 Ordinance No.3774 Appendix A(Suggested Modifications) HNB ICPA 2-06 Revised Findings Apil 2OO7 Page 25 NNB LCPA 2-06 tmstus RF rvsd sugmods 4.07 my 25 ATTACHMENT #4 CALIFORNIA COASTAL COMMISSION South Coast Area Office 200 Oceangate,Suite 1000 Long Beach,CA 90802-4302 (562)590-5071 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 HNB LCPA 2-06 psthrg Itr sgmd crtn 7.2.07 my APPENDIX A HNB 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 a0ke out Text added as a result of the Commission's action is shown in bolM italic. do big underline. Text removed as a result of the Commission's action is shown in dambia gindadinp L%Wka au#to 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 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 providina ovemight visitor accommodations where ownership of at least some of the individual auestrooms (units) within the larger building or complex is in the form of separate Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 2 condominium ownership interests, as defined in California Civil Code section 1351(). The primary function of the Condominium-Hotel is to provide overnight transient visitor accommodations within every unit that is available to the genera/public on a daily basis year-round, while providing both general public availablH&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 auandty of days ger 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 Owner/Operator- The entity that owns and operates a hotel. If the hotel operator is separate from the hotel owner both are ioingy and severe&responsible for ensuring compliance with the requirements described in this LCP and/or recorded against the property, as well as Lintly 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 Appendix A(Suggested Modifications) HNB 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—Anv 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. 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), ems* a1aftgr21K&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 3.2.4 and re-number policies accordingly: Any hotel rooms for which a certificate of occupancy has been issued at 3 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 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 auentity, manaaement 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 jn Area 4C(Pacific City), described in Table C-2, sublect 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 vear-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-Mar period. The hotel owner/operator shall retain control and ownership of all land, structures, recreational amenities, meetina space, restaurants, "back of house"and other non-guest 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 . nuestrooms/units. 4 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 5 The hotel operator shall manage all-guestrooms/units as part of the hotel inventory, which manaoement shall Include the booking of reservations, mandatory front desk check-in and check-out, maintenance, cleaning services and oreyaring units for use by guests 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 during 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 C-2, subject to the following requirements as well as those contained in Section 4.11.13 of the Downtown Speciflc 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 minimsom al 259A_ wf fhw fbe Candaminium-NOfw/ ufllha.d not frAldifiwnal hwfwl walts .. ..ilahlw to fhw a,nnwral n„hliw an 2 vear.-- udihin t ando,»ini,,..+_Nofwl f wlligy n+nMF -go-,� be cubdiv'dad into t wnnrsfw 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 owner/operator 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 rentaUbooking of all guestrooms units. The hotel operator shall manage all guestrooms/units as part of the hotel 5 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, cleaning services and preparing units for use by guests and owners. Owners of individual units 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 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.ouestrooms/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, encouraged. and, where feasible. provided. On oceanfront, waterfront or 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 Huntington 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, evemight aersommed overnight accommodations, cultural facilities, government offices, educational, health, institutional and similar uses. Commercial Visitor(CV) Hotels/motels, - restaurants, recreation-related retail sales, cultural uses (e.g., museums)and similar uses oriented to coastal and other visitors to 6 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 7 the City. In Subarea 4C(Pacific City) only=a Fractional Ownership Hotel subiect_ to restrictions maybe allowed. In Subarea 4D (Waterfront) only, a Condominium-Hotel subiect to restrictions maybe 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, #meshams, a Fractional Ownership Hote! subject to restrictions, and other uses (as permitted by the "CV"and "GG-'land use cate o $). 4D Permitted Uses Category: "-F7" Waterfront Hotels/motels, #i ,esaares supporting visitor-serving commercial 7 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: ,geri,ed ef time that has been or-i4 ;d from the"e 9F ge Feat vmpepl% annuaMy iw en some GthGF 0 seasonal 9F aer4Gdir- basis, Aw a Replace with the following timeshare definition: Timeshare-Any arrangement, clan, or similar program, other than an exchance 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 providina overnight visitor accommodations where ownership of at least some of the individual auestrooms (units) within the larger buildin_a or complex is in the form of separate 8 Appendix A (Suggested Modifications) HNB LC.PA 2-06 Revised Findings April 2007 Page 9 condominium ownership Interests, as defined.in California Civil Code section 1351 M. The primary function of the Condominium-Hotel is to Qrovide overnight transient visitor accommodations within every unit that is available to the aenera/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. SUGGESTED MODIFICATION No. 16 Fractional Ownership Hotel-Facility provldinQ overnight visitor accommodations where at least some of the auestrooms lunits) 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 auantW of days per year and each unit available for fractional ownership will have multiple owners. SUGGESTED MODIFICATION No. 1T Hotel Owner/Operator- The entity that owns and operates a hotel. If the hotel operator is separate from the hotel owner both are iolnt&and severally responsible for ensuring compliance with the requirements described in this LCP and/or recorded against the properly, as well as /ointly and severally liable for violations of said reau/rements and restrictions. SUGGESTED MODIFICATION No. 18 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 We or a term of years, to the recurrent, exclusive use or occupancy of a lot, parcel, unit, room is), 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 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 10 follows: Timeshare Units 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 facility shall 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 Questrooms/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 sap roved time period, which approved time period at the option of the hotel owner/operator may ran_ae 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-_auestroom/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 reportina 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 Overniaht Visitor Accommodations or other proiect that differs from the approved hotel units. f) 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 genera/public on the same basis as the traditional hotel units. 10 Appendix A(Suggested Modifications) HNB 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 Overniaht Visitor Accommodation. h) Prior to issuance of a building permit and in conjunction with apsrova/of a coastal develoment p rmit for any type of hotel facility. the landowners) of the impertv(jes) upon whicb the existina and/or ao_nroved traditional hotfl unjt�s(i.e. tmn ient hotel mom) are or will be developed within Mtrjct 7 shall execute and rid as deed restrjct/onfsl, subject to the review and approval of the Planning Director and the Exeggitive Director of the Coastal Qommiuion, Which vrohibjts the conversion of traditional hotel un/tWm ms to any other fvge of ow►nmhin fe.a. limited use overniaht vi 'tor mccommodaftW. The deed restriction shall be submitted for review and approval of the Plannina Director and the Executive Director of the Coastal Commission prior to action on he coastal development hermit The deed restrjctjonfs)shall run with the land, shall be executed and consented to by the existina essee( ) of the affected property(fes) and sh lobe binding on the andOwne al. Ilmeefsl. and on all successors and assians of the landowners) and lesseefs) includina without_ limitation any future IAnho/dens. The deed restriction(s) shall not be removed or hanged but al2l2rQyal of an amendment to the LCP by the Coastal .QQn2misislon.and to the under/vjng coastal development permit. How-ever minor changes that do not conftt with subsectio a) and g) above may be processed as an amendment to the coastal dam"/ i2ment permit on& unless it is determined b►f the Director of P iInd the Executive Di for of the Cogs al QQmmissLQ&thaj an meet is not legally required. l) Fractional time owners shall have the right to the use-of their units including a maximum use of 90 days per calendar vear 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 Planning,a Declaration of Restrictions or CC & R's (Covenants, Conditions &Restrictions), either of which shall include; ?. All the specific restrictions listed in a through 1 above: 2. Acknowledgement that these same restrictions are inde endently imposed as condition requirements of the coastal development penult: 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 11 Appendix A(Suggested Modifications) HNB 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 mam 1) The provisions of the CC&R's or Declaration of Restrictions described above shall not be changed without worov_al 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 owner/operator 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 nerpetuity and shall be responsible In all respects for ensuring that aH parties subject to these restrictions comply with the restrictions. Each owner of a fractional Interest in a unit is ioindy and severally liable with the hotel owner/operator 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 oursuant 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, shall notify buyers of the following 9. The owners of a fractional interest in a unit are jointly 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 Der 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 unfit shall be made available for rental by the hotel operator 12 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 genera/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 owneNogerstor and any successor-in-interest hotel owner/operator shall monitor and record hotel occupancy 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 speciric 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 i 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 to the p • '�'°�executive Director of the Coastal Commission upon request and to the auditor reguired by section a 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 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 reguired by this Section regarding notice. recordkeeping, and monitoring of the of Interest Hotel. The audit shall evaluate compliance by the hotel owner/operator and owners of fractional interests In a unit during the prior calendar year period._ The hotel owner/operator shall instruct the auditor to are a report identffvin4 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 shall be available to the Emudym Director of the Coastal Commission upon request, within six months after the conclusion of each one year period of hotel operations. After the 13 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 Plannina. The Director of Plannina may_-rant 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 If the hotel owner and the hotel operator at any point become separate entities, the hotel owner and the hotel operator shall be jointly an severally responsible for ensuring compliance with the requirements Identified above. If the hotel owner and hotel operator become separate entities they shall be jointly and severally liable for vjolations of the terms and conditions (restrictions) identified above. SUGGESTED MODIFICATION NO. 22 Add new Section 4.9.14 as follows: 4.9.14 A coastal development permit application fora Fractional Interest Hotel shall include a plan 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 & Rs/Declaradon of Restrictions that will be used to satisfy the requirements and the form of the rental program aareement 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 changes to the approved plan and subsequent documents pertaining to compliance with and enforcement of the terms and conditions required by Sect/on 4.9.12 and this section including deeds and CC &Rs/Declaration shall not occur without an amendment to the coastal development permit, unless it Is determined by the Director of Plannina that no such amendment is legally required. 14 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 reauired 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 S5&M$3,000 in 2006 dollars (which shall be adjusted annually to account for inflation i.e. accordjna to increases in the Consumer Price Index- U.S. Cliy Average) times the total quantity of proposed--^^_'^• �^_^^^� gag 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 recipient that assures use of the in-lieu fee for the intended mitigation, the applicant shall transfer the fee to the enW designated in the agreement, which shall be the City of Huntington Beach, the California State Department of Parks and Recreation, Hostelina International USA, or similar public agency and/or non - proN 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 proiect) 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. 9 Thw aaa ffin dollar r amai.at that will afis^ what tlirL+/al w� X. davelw wwt wwr.atit.,t^ "In-yar i.wat" mmiaht Ilia iiwr and 15 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: a1 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. a be subdA4ded.-Wa candaminkimc and sold for indlukhpa The hotel owner/operator shall retain control and ownership of all structures, recreational amenities, meeting 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 owner/operator 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 rentallbookin_g of all guestroom/units. Whenever any individually owned hotel unit is not occupied by its owners), that unit shall be available for hotel rental by the general public on the same basis as a traditional hotel room. 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. e� The hotel operator shall manage all nuestroom/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 questslowners, a service for which the hotel operator may charge the unit owner a reasonable fee. 16 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 anent for an individually owned unit, then the hotel operator shall nevertheless have the right working thro ah 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 w/thhold 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 obligations hereunder. g1 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 1 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. The hotel operator shall maintain records of usage by owners and renters and rates charged for all units, and shall be responsible for rei3ortlna 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. k1 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. ,Q 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 subiect to the use restriction as If they were a single, continuous owner. ,m)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 RM ect that differs from the approved Condominium-Hotel. n1 Pr1or tQ issuance of a building germlt and to conjunction with approval of a coastal development permit fnr the Cando Hotel, the propertv(les) within Di trict 9 upon mfth the traditional units/rooms(Le. transient hotel rooms) are developed shall execute and record a deed restr/ction(s), sublet to the review and approval of the P/annina Director and the ecutb Director at the Coastal Commisslm which prohibits the conversion of those trad/ Iona/hotel unitshooms to any other 17 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 18 tune of own rshin(e,a limited use oye nla t visitor accommodatio s). The wed restriction shall be submitted for review and w2awyal of the Planni a Director and the Executive Djmctor of the Cam!Commission prior to act/on on the c asta/ dmlonment i2amit The deed restriction shall run with the land, shall be executed and consented to by the existina leMeels) of theme,aftted nr nertvfies) andshaU be Windina on the lando ned(s) and(m ser.W. and o1LaU successors and assigns of the downer! ) and lesseefs). inc/udi g without limitation anv fy g lie►tho/ders This deed res iction(s) shall not be removed archa_nged i(hout impar-QyAl of an amendmm!to the underlying coastal dev lohment ne mit and approval of an amendment to tfm LC�P by(he Coastal Com iss/on However minor changes that do not conflict with subsection amend m) above may be processed as an amendment to the mastal development emit onl=unless it is determined by the Dkmr.CQr Qf P_lannina and theExecuti e DimcfQr of the Coas al C mmission that such an amendment is not feaa /v r aulred. 2 The hotel owngr&Aerator shall be required to submit, prior to Issuance of a coastal development hermit, for the review and @9proval of the Director of Planning, a Declaration of Restrictions or CC &R's (Covenants, Conditions & Restrictions) either of which shall include: 1. All the specific restrictions listed In a through m above; 2. Acknowledgement that these same restrictions are Independently imposed as condition requirements of the coastal development Dermit, 3. A statement that provisions of the CC &Rs/Declaration of Restricdons that reflect the requirements of a through n above cannot be chanaed without approval of an LCP amendment by the Coastal Commission and subsequent coastal development Perm-it amendment. However, minor changes 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 Plannina that an amendment is not leaally required, ►f 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 anv contradictory statements in the section of the Declaration/CC&R's on amendments. 18 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 19 p1 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. _qj The provisions of the CC &R's or Declaration of Restrictions described above shall not be chanced without approval of an amendment to the LCP by the Coastal Commission. However minor changes that do not conflict with a) through p) above may be orocessed as an amendment to the coastal development permit unless it Is determined by the Director of Planning that an amendment is not legally required. The hotel owner/operator or any successor-in-interest shall maintain the legal ability to ensure compliance with the terms and conditions stated above at all times In opMetuity 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 develo ment permit can result in penalties pursuant to Public Resources Code Section 30820. s) All documents related to the marketing and sale of the condominium interests, including marketing materials, sales contracts. deeds, CC & Rs and similar documents_, shall noti�f r buyers of the following: 1. Each owner of any individual hotel unit is iointly 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 owne►Ys) 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 t� 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 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 20 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. yj The hotel owner/operator and any successor-in-interest hotel owner and operator shall monitor and record hotel occupancy and use by the general public and the owners of individual hotel units throughout each year. The monitoring and record keeping shall includes eciflc accounting of owner usage for each individual auestroom/unit. The records shall be sufficient to demonstrate compllance 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 ge lera "-6k Executive D/rector of the Coasts 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. 1 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 required by this Section regarding occupancy restrictions, notice recordkeept% and monitoMng 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 rrndings, 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 theexalrbllc� rutive Director of the Coastal Commission upon request within six months after the conclusion of each one year period of hotel operations. After the 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. 20 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 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 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. If the hotel owner and hotel operator become separate entities. they shall be jointly and severally liable for violations of the terms and conditions frestrictions) identified above. SUGGESTED MODIFICATION NO. 28 Add new Section 4.11.15, as follows: 4.11.15 A coastal development permit application for a Condominium-Hotel shall include a plan specifying how the requirements outlined in 4.11.13 will be Jm lemented The vion 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 reauirements 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 pertaining 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 permit: unless It Is determined by the Director of Planning that an amendment is not legally 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 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 22 (4,11.13)shall not be permitted to be converted to Limited Use Overniaht Visitor Accommodations. SUGGESTED MODIFICATION NO. 30 Add new Section 4.11.17, as follows: 4.11.17/n Lieu Fee Reauired 1. New development of overnight accommodations that are not"lower cost"shall be reauired 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 15QjW$5.000 in 2006 dollars(which shall be adjusted annualiv to account for inflation i.e. accordi A to increases in the Consumer Price Index- U.S. Gity Average) times, the total quantity of proposed flan-Jame gn limited use overnj ht 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. Hostelin_o 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 ae. 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 appliedtoward lower-cost overnight visitor accommodations at Crustal Cove State Park. wwaname—daden-a u/lll donand an tba /anal and r iwnal w./w /a wi wlwv lwwwaawi ai tl.w *irnw wE nliwwrw+lw ara/rw■lino/ 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 211-4, under Quasi Residential, delete timeshares, residential hotels, and single room occupancy as 22 Appendix A (Suggested Modifications) HNB l.CPA 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-Hotel/ - PC Wfor lettered as as rooriatel Fractional Ownership Hotel Quasi Residential Timeshares - PC RG (1), (J) Residential Hotel - PC PC (J) Single Room Occupancy PC PG 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]: (Vie In the CV District. Condominium-Hotels and/or Fractional Interest Hotels are allowed only at the Pacific City(Downtown Specific Plan District 7) and Waterfront(Downtown Specific Plan District 91 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 OwnerlOgerator- The entity that owns and operates a hotel. If the hotel operator is separate from the hotel owner both are1oindy and severally responsible for ensuring compliance with the requirements described in this LCP and/or recorded against the Property, as well as jointly and severally 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, parcet. 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 Appendix A(Suggested Modifications) HNB LCPA 2-06 Revised Findings April 2007 Page 24 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. 34 Replace existing definition of"timeshare" in Chapter 204 with the following: Timeshare-Any arrangement Qlan, or similar program, other than an exchange_program whereby a purchaser receives ownership ri_ahts in or the right to use accommodations for a period of time less than a full year during 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 ovemight 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 condominium ownership interests, as defined In California Civil Code section 1351 M. The orlmary function of the Condominium-Hotel Is to provide overnight transient visitor accommodations within every unit that is available to the general 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 ow_nershia 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 guantity of days er year and each unit available for fractional ownershp will have muldble owners. 24