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More housing recommended for Newport Beach airport area with townhomes plan

The proposed 132 townhomes would be spread out over 36 three-to-four story buildings in Newport Beach.
(Screenshot by Gabriel San Román)

Two more office buildings near John Wayne Airport may tumble to make way for housing after the Newport Beach Planning Commission recommended a townhome project for City Council approval.

The Lincoln Property Co. seeks to replace the office buildings on Dove Street with 132 for-sale townhomes. It is also planning to have seven units — or about 5% of the project — allocated for very low-income level affordable housing.

Commissioners considered the project during their Thursday meeting.

“Lincoln Properties has done a great job in the airport area,” said Commissioner Jon Langford. “I’m glad they’re here. It’s going to be a good project.”

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As Newport Beach continues to allow for more housing in land around John Wayne Airport, the Planning Commission this week was unanimous in its approval of the Residences at 1500 Quail Street.

In April, the commission approved a Lincoln Property Co. plan to build the Residences, a 100-condominium community at another office building on Quail Street in the airport area.

This time around, the developers sought a series of approvals in order to take a step toward breaking ground on the proposed townhomes.

As city officials did not originally identify the 6.5-acre property as a “housing opportunity site,” developers requested an amendment to ferry it into the overlay zoning designation that will count toward Newport Beach’s housing element plan.

The Lincoln Property Co. plan to add 5% affordable units also qualified it for a reduced park in-lieu fee of about $1 million. Developers would also pay a $3-million general public benefit fee and about $2.6 million in impact fees.

Langford inquired about the calculation of the park fee discount offered for the project.

Deputy Community Development Director Liz Westmoreland noted that city officials negotiated the discount as part of the development agreement and it is consistent with other agreements in the airport area. She also claimed that the general public fee was standard and part of the negotiations since the site was not included in the overlay.

“The affordability is the key component of the development agreement in this case,” Westmoreland said, affirming that the park discount was proposed in exchange for the affordable units.

Jim Mosher, a Newport Beach resident, raised questions about the project affordable housing inclusion, fees and noise analysis during the public hearing.

“The [park] concession is greater than the public benefit being offered,” he said. “That might weigh on the council’s decision as to whether this should actually be added as an overlay unit.”

Kimley-Horn and Associates has won a two-year, $610,000 contract to help Newport Beach prepare a specific plan for development near John Wayne Airport.

Mosher criticized the percentage of affordable housing units as too small in scale, which wouldn’t help the city meet its Regional Housing Needs Allocation numbers and places an unrealistic burden on future housing developments to incorporate a higher percentage.

Westmoreland countered by stating that the seven units will go toward Newport Beach meeting its obligations.

In the end, the opportunity to bring two-to-four bedroom townhomes to the airport area found favor with commissioners.

“Staff did a good job … getting low income, and it’s very low income, which is not being considered by a lot of projects, especially in our town,” said Commission Chair Tristan Harris. “It was fair deal and trade for the city.”

Commissioners unanimously approved the townhome project for council approval.

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