The Newport Beach Planning Commission voted Nov. 20 to deny an application (PA2024-0236) to convert a three-story, 27,931-square-foot office building at 20280 and 20312 Acacia Street into 12 medical-office condominiums.

Staff presentation: Oscar Orozco of the planning division told commissioners the site currently provides 109 parking spaces; a full medical conversion would require 140 spaces, producing a 32-space shortfall equal to 22.9% of the required parking. The applicant requested a condominium conversion, a tentative parcel map for 12 units, a conditional use permit for medical-office use, and a waiver of 32 parking spaces. Orozco said the applicantprovided a parking study (Michael Baker International) that relied on two comparable weekday surveys at Spectrum Medical Plaza (Irvine) and Second Journey Medical Plaza (Aliso Viejo); the selected comparables did not include urgent-care uses, and staff recommended conditioning the approval to prohibit urgent-care facilities at the site to remain consistent with the parking assumptions. A traffic study by Gondini Group, prepared under Public Works, estimated a net increase of approximately 703 average daily trips and concluded no intersection improvements were necessary.

Applicant and public comment: Applicant Peiqing Li, founder and CEO of CGN Development Company, said the project would include building upgrades (new roof, individual HVAC and electrical panels for each unit, landscaping and ADA improvements) and that 9 of the 12 units were already under contract with medical practitioners awaiting approval. Jason Crotz, speaking for Rita Newport Irvine LLC, did not oppose the project but urged the commission to apply standards consistently across projects.

Commission concerns and alternatives: Commissioners raised consistency and precedent concerns, noting recent and pending conversion applications in the same neighborhood. The staff presentation listed several options to address parking shortfalls under the municipal code, including demand studies, shared-mobility accommodations, bicycle facilities and showers, valet operations or a phased approach that would permit a smaller percentage of medical-office use by right. Commissioners discussed alternatives such as mandatory valet, parking lifts, a parking structure, or limiting the portion of the building converted to medical use and asked whether the applicant could return with an alternate proposal.

Motion and outcome: Commissioner Hallmark moved to deny the application as submitted; Commissioner Reed seconded. After confirming Commissioner Langford had recused himself from the hearing, the motion to deny carried by voice/roll-call procedures and was recorded as carrying unanimously among the voting commissioners. The denial applies to the application as proposed; the applicant may revise the proposal and return with additional parking solutions or a phased approach.

Why it matters: Commissioners said a large waiver in this neighborhood would risk encouraging similar conversions that cumulatively would strain on-street and neighborhood parking and set an inconsistent precedent. Staff noted that parking reductions tied to ride-share, bicycle accommodations or valet can be conditioned but that the commission must weigh neighborhood impacts and precedent.

Whathappens next: The commission did not approve the requested waivers or the condominium conversion. The applicant identified options (valet, bicycle facilities, mechanical lifts or a smaller share of medical-office square footage) and may return with a revised application. The project remains eligible for future resubmittal subject to any changes required by staff or new conditions.

Representative quotes:
"The parking study ultimately concluded that the parking waiver is acceptable with the addition of a shared mobility space," Oscar Orozco, Planning Division.
"I don't feel confident based upon this application and the demand versus the supplyI would be opposed to this application," Commissioner Hallmark.
"We have a total 12 unit proposed. And very good news is, 9 out of 12 are already under contract," Peiqing Li, applicant.
"The project is a net increase of approximately 703 average daily trips," Kevin Riley, city traffic engineer.

Ending: The commission denied PA2024-0236 as proposed; staff and commissioners encouraged the applicant to explore alternative parking solutions or scaled/phased approvals and to return with further analysis.