REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Ricky Ramos, Planning Manager
Subject:
title
Adopt Resolution Nos. 2024-46 and 2024-47 regarding modifications to Local Coastal Program Amendment No. 17-001 approved by the California Coastal Commission and amend the Local Coastal Program and General Plan Land Use Element accordingly
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Statement of Issue:
The proposed resolutions would modify the Local Coastal Program Amendment (LCPA) No. 17-001 regarding Magnolia Tank Farm, which are necessary to formalize the California Coastal Commission’s (CCC) action on the subject LCPA by 1) accepting the CCC’s approved modifications to the Magnolia Tank Farm LCPA, and 2) approving revisions to the General Plan Coastal Element, Land Use Element, and the Magnolia Tank Farm Specific Plan (MTFSP) to reflect the CCC’s modifications. If the resolutions are not adopted the LCPA would remain uncertified and not effective, which will prohibit implementation of the proposed Magnolia Tank Farm Specific Plan.
Financial Impact:
Not applicable.
Recommended Action:
recommendation
A) Adopt Resolution No. 2024-47, “A Resolution of the City Council of the City of Huntington Beach, which Acknowledges Receipt of the Coastal Commission Action and Adopts and Agrees to Local Coastal Program Amendment (LCPA) No. LCP-5-HNB-24-0003-1 (Magnolia Tank Farm - Huntington Beach LCPA No. 17-001) As Modified;” (Attachment #1); and,
B) Adopt Resolution No. 2024-46, “A Resolution of the City Council of the City of Huntington Beach Amending the Coastal and Land Use Elements of the General Plan and the Magnolia Tank Farm Specific Plan to Adopt Local Coastal Program Amendment (LCPA) No. LCP-5-HNB-24-0003-1 (Huntington Beach LCPA No. 17-001) Modifications Made by the California Coastal Commission” (Attachment #2).
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Alternative Action(s):
Do not approve the recommended actions and direct staff accordingly.
Analysis:
A. PROJECT PROPOSAL:
Applicant: Shopoff Realty Investments, 18565 Jamboree Road, Suite 200, Irvine, CA 92612
Location: 21845 Magnolia Street
Local Coastal Program Amendment No. 17-001 is being brought back to City Council for a decision to either accept or not accept the CCC’s modifications to the Local Coastal Program (LCP) as they pertain to the Land Use Plan (LUP) and Implementing Ordinances (IP) for Magnolia Tank Farm. In approving the LCPA, the CCC approved modifications to the City’s Coastal Element and the MTFSP. All the modifications are presented in the approval letter from the CCC that is attached to Resolution No. 2024-47 (Attachment #1).
The process of approving the modifications involves two resolutions to: 1) accept the CCC’s modifications, and 2) approve the CCC’s modifications to the General Plan Coastal Element, Land Use Element, and the Magnolia Tank Farm Specific Plan (MTFSP). Upon transmittal of Attachment # 1 and 2 to the CCC, the Executive Director will determine if the City has complied with the CCC’s action. The Magnolia Tank Farm (MTF) LCPA is not certified until such determination is made.
B. BACKGROUND:
The City Council approved Environmental Impact Report No. 17-001, General Plan Amendment No. 17-001, Zoning Map Amendment No. 17-001, Zoning Text Amendment No. 17-005, Local Coastal Program Amendment No. 17-001, and Development Agreement No. 19-001 for the Magnolia Tank Farm on January 19, 2021.
The LCPA was submitted to the CCC for review and approval in August 2021. On July 10, 2024, the CCC approved the LCPA with modifications. 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 (by January 10, 2025) of CCC action or the CCC’s approval expires.
C. ANALYSIS:
All the modifications are presented in the approval letter from the Coastal Commission that is attached to Resolution No. 2024-47 (Attachment #1) and again in the legislative draft attached to Resolution No. 2024-46 (Attachment #2). The maximum development approved in 2021 by the City Council of 250 dwelling units and 215-room hotel in the MTFSP has not changed. The most significant modifications pertain to:
§ Land Use Plan changes due to increased Open Space-Parks and Commercial Visitor areas and corresponding decrease in the Residential Medium area.
§ Allowing rentals instead of 100 percent for sale dwelling units only.
§ Increased affordable housing requirement from 10 to 20 percent to be met onsite through construction of rental dwelling units instead of payment of in lieu fees.
§ A minimum of 25% of the hotel rooms to be lower cost accommodations (rates at no more than 75% of statewide peak season average daily rates).
§ Reduced time limit restrictions on parking spaces along Magnolia Street and Hamilton Avenue next to MTF and Ascon. No less than 5 hours between 6 am-10 pm and 3 hours between 10 pm-6 am.
§ Additional restrictions due to proximity to Ascon.
§ Additional sea level rise requirements.
§ Increased setbacks for the Commercial Visitor area from zero to 10 ft. all around and residences next to Ascon from 10 to 15 ft.
Below is a summary of the more notable modifications.
Coastal Element
1. Land Use Plan Designations - modified to incorporate various components of MTF including hotel with 25 percent affordable hotel rooms, parks, and up to 250 residential units of which 20 percent will be affordable with a minimum of 50 percent available on first right of refusal to income qualifying employees of the on-site hotel or other hotels in the coastal zone consistent with similar modifications to the MTFSP.
2. Table C-2 (Community District and Subarea Schedule) - modified to create subarea and identify permitted uses including Commercial Visitor, Residential Medium Density, and Open Space including requirements for each category that are also included in the MTFSP.
3. Table C-3 (Public Parking Opportunities) - modified to add new public parking spaces to become available onsite within the MTFSP and along Magnolia Street and Hamilton Avenue next to MTF and Ascon.
4. Figure C-9a (Land Use Plan) - modified land use plan to reflect an increase in Open Space-Parks by 1 acre, Commercial Visitor by 0.8 acre, and corresponding decrease in the Residential Medium area.
5. Figure C-10 (Subarea Map) - modified to create subarea 4L for MTF.
MTFSP Volume 1
1. Figure 1.10 (General Plan) - modified to match Figure C-9a changes above.
2. Figure 3.1 (Planning Area) - modified to align with Figure 1.10. Allow rentals instead of 100 percent for sale dwellings only.
3. Table 3.1 (Maximum Development) - modified net acres to align with Figure 3.1. Allow rentals instead of 100 percent for sale dwellings only.
4. Sec. 3.4.2 (Marsh Interpretive Programs) - modified to add a requirement for an Outreach Program for wetland tours.
5. Sec. 3.4.3 (Public Parks) - modified to provide more details including the expanded Marsh Park located near the flood control channel.
6. Sec. 3.4.5 (Public Parking) - modified to emphasize the availability of public parking along the MTF loop road as well as Magnolia Street next to MTF and Ascon frontages on Magnolia Street and Hamilton Avenue, which will be improved by MTF. Parking limitations are discouraged but in no case shall parking be limited to less than five hours between 6 am to 10 pm and three hours between 10 pm to 6 am. Currently parking on Magnolia Street next to MTF is limited to two hours between 6 am to 10 pm and one hour between 10 pm to 6 am, which will have to be amended to comply with the hours specified by the CCC with the development of MTF.
7. Sec. 3.4.8 (Resource Protection) - modified to add more detail regarding the required Domestic Animal Control Plan and Pesticide Management Plan.
8. Sec. 3.6 (General Development Requirements) - modified to increase setbacks for the Commercial Visitor area from zero to 10 ft. all around and residences next to Ascon from 10 to 15 ft.
9. The following miscellaneous requirements were added:
a. Sec. 3.6.3 (Detection Systems and Methane Mitigation Measures)
b. Sec. 3.6.4 (Burrowing Owl Surveys)
c. Sec. 3.6.5 (Notification of Superfund Site)
d. Sec. 3.6.6 (Walls and Fences Plan)
e. Sec. 3.6.7 (Seismic Hazards Investigation)
f. Sec. 3.6.8 (Contaminant Transport from Ascon) requiring confirmation that there is no transport of contaminants above residential standards from Ascon to MTF prior to construction and occupancy of residences.
g. Sec. 3.6.9 (Residential Construction Within 50 feet of Ascon) requiring that construction of housing within 50 feet of Ascon not commence until Ascon is remediated.
h. Sec. 3.10.1 (Habitat Management Plan)
i. Sec. 3.13 (Protection of Archaeological and Tribal Cultural Resources)
10. Sec. 3.8 (Affordable Housing) - modified to:
a. Increase the affordable housing requirement from 10 to 20 percent of the total residential units permitted.
b. All affordable housing units shall be onsite rental units made available to lower income households in perpetuity instead of allowing the payment of in lieu fees.
c. Affordability mix: minimum 10% extremely low income, 30% very low income, 30% low income, 30% to any income category above.
d. A minimum of 50% of affordable units shall be made available to employees of the onsite hotel on a first right of refusal then to other qualified tenants that are employed at hotels in the City’s coastal zone then to the public.
11. Sec. 3.12.1 (Lower Cost Overnight Accommodation) - modified to require a minimum of 25% of the rooms as lower cost accommodations with rates at no more than 75% of statewide peak season average daily rates for calendar year prior to open of hotel.
12. Sec. 3.14 (Policies/Regulations Regarding Sea Level Rise) - added to:
a. Reference a 2021 Sea Level Rise Study (SLR) and a 2024 SLR Flood Study submitted by the property owner to the CCC.
b. Identify a requirement for a Special Assessment District or equivalent financing mechanism to fund the property’s fair share of the cost to implement the adaptation measures identified in the 2024 SLR Flood Study or others that may be necessary in the future.
13. Sec. 3.14.2 (Addressing SLR within the Specific Plan Area) - added to:
a. Identify adaptation measures.
b. Require the recordation of a notice and assumption of risk.
MTFSP Volume 2
Volume 2 contains design guidelines. The modifications in Volume 2 are minor in nature and pertain to additional lighting restrictions, allowed or required improvements in the Coastal Conservation buffer and parks, and plant palette restrictions among others.
Environmental Status:
The preparation and approval of LCPA No. 17-001 is exempt from the requirements of CEQA pursuant to Section 21080.9 of CEQA and Sections 15251(f) and 15265 of Title 14, California Code of Regulations. In any event, LCPA No. 17-001 is covered by Environmental Impact Report No. 17-001 certified by the City Council on January 19, 2021 in accordance with CEQA requirements.
Strategic Plan Goal:
Goal 2 - Fiscal Stability, Strategy A - Consider new revenue sources and opportunities to support the City's priority initiatives and projects.
Approval of the CCC’s modifications to the LCPA will allow the development of a mixed-use project with a hotel, residential, and open space that could create new revenue sources for the City.
Attachment(s):
1. Resolution No. 2024-47 Accepting CA Coastal Commission Modifications
2. Resolution No. 2024-46 Approving Modifications to Coastal Element, Land Use Element, and MTFSP
3. Original and Modified Planning Areas
4. PowerPoint Presentation