Mariner’s Mile Project Update

The following is an application submitted to the City of Newport Beach Planning Commission.  It has not yet been approved and the planning commission can either except or deny this project.  So if you have an opinion please speak out now.  HERE is the link to contact the planning commission.

.Application File 2332 W Coast Highway (Old Margaritaville Location)

In simple terms, the owner wants to replace the existing commercial building with a mixed-use project containing:

• 19 rental apartments
  • 4 studios
  • 11 one-bedroom units
  • 4 two-bedroom units
• A separate restaurant/retail building facing Coast Highway
• A parking garage beneath the residential portion

The residential building would havethree residential levels in total, although part of the ground level would be occupied by parking, the elevator lobby, and one apartment. The two upper residential levels would be wood construction over the concrete parking level.

Why 19 apartments are proposed

The property would normally accommodate approximately14 or 15 apartments, depending on which version of the application is being referenced. The developer is usingCalifornia’s STATE Density Bonus Lawto add units and reach 19 apartments.

That means at least part of the project must be reserved as affordable housing. In return, state law may allow the developer additional units and potentially some relief from normal development standards.

What approvals are being requested

The application presently lists three primary reviews:

• Affordable Housing Implementation Plan:Explains which apartment or apartments will be affordable, the income level served, and how affordability will be maintained.
• Major Site Development Review:Gives the City authority to review the project’s size, height, appearance, circulation, parking, and relationship to neighboring property.
• Conditional Use Permit:Generally addresses the restaurant use and operational matters such as outdoor dining, parking, hours, alcohol service if proposed, noise, and deliveries.

The case remains listed as“Applied,” not approved. Therefore, these drawings represent what the developer is requesting, not necessarily what the City will ultimately authorize.City planning case PA2025-0187

What each file in the folder contains

• AHIP document:The affordable-housing proposal.
• Project Description and Justification:The developer’s explanation of the project and arguments for approving it.
• Average Grade Plane Exhibit:Shows how the ground elevation is calculated. This matters because the permitted building height is measured from that calculated level.
• Mixed-Use Narrative:A written summary of the overall design and intended uses.
• Project Plans dated August 24, 2026:The newest plan set in the folder.
• Revised Architectural Drawings—4th Submittal:An earlier revised version of the architecture.
• Existing Survey:The property lines, elevations, existing building, and current site conditions.City application folder

One detail worth noting: the City’s earlier active case description says a1,500-square-foot retail building, while the newer SB 330 preliminary application describes approximately2,000 square feet of restaurant space, including a600-square-foot outdoor dining area. The newer application also describes14 base apartments plus 5 density-bonus apartments. These differences likely reflect revisions made during the application process.City SB 330 case PA2026-0021

The bottom line:this is a separate 19-unit apartment-and-restaurant/retail proposal at2332 West Coast Highway. It is not the much larger Newport Village project, which is located on both sides of PCH in Mariner’s Mile.  That project consist of 198 dwelling units plus retail and office space.  It would also add additional development and traffic within the same Mariners’ Mile corridor.