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MAR 2 4 1998
F \PPO\sHARE\cCREPORTWTHSTRP3 WPD
Council Meeting March 24, 1998 Santa MOnica, California
To Mayor and City Council
From City Staff
Subject Recommendation to Authorize the City Manager to Negotiate and Execute
a Contract with Rincon Consultants, Inc In an Amount Not to Exceed
$63,070 to Prepare an Environmental Impact Report and an Economic Study
for the Fourth Stre~t Senior Housing Project
INTRODUCTION
This staff report recommends that the City CouncIl authOrize the City Manager to negotiate
and execute a contract with Rincon Consultants, Inc In an amount not to exceed $63,070
including a 15% contingency, to prepare an EnVironmental Impact Report (EIR) and an
economic study for the Fourth Street Semor HOUSing Project
aACKGROUND AND DISCUSSION
In April, 1997, the City Council approved on appeal the development of a 66-unlt
affordable senior hOUSing project atop two levels of public parking at 1116-1146 Fourth
Street In June and July, 1997, two property owners, WI I-Fourth Partnership and
Channont Partners, Ud , filed laWSUits against the City and Menorah HOUSing Foundation
of the JeWish Federation Council relating to the Fourth Street Semor HOUSing Project
One of the claims against the project was that the City did not fully comply With the
California EnVironmental Quality Act (CEQA) With respect to thiS claim, the court ruled
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MAR 2 It 1998
that the City should perform additional analysIs with respect to two Issues (1) the effect
of the project on future parking needs In the area by eliminating the present surface
parking lot as a potential source of a future expansion Into a multi-level parking faCility, and
(2) the economic effects, If any, of the project upon nearby bUSinesses and commercial
establishments While the City disagrees with this ruling It has deCided to abide by It
because an EIR WIll proVide the most detailed level of environmental analysIs possible for
the project as well as the greatest amount of public review
Rincon Consultants, Inc prepared the onglnallnltlal Study/Mitigated Negative Declaration
for the project Staff recommends contracting with Rincon to prepare the EIR for three
reasons First, Rincon already understands many of the relevant environmental Issues
Second, Rincon has much of the onglnal environmental research and documentation In
Its records, which Will allow savings of time and costs Time savings are espeCially
Important In light of the delays to the project resulting from the legal challenges and the
time sensItive finanCial Interest of the Department of HOUSing and Urban Development
(H U D ) Finally, Rincon provided a high quality of work on the Initial Study/Mitigated
Negative Declaration and Will do the same on the EIR
In addition to updating the analyses contained In the onglnal Imtlal Study/Mitigated
Negative Declaration, the EIR Will examine several alternatives to the project as reqUired
by CEQA AnalYSIS of the alternatives adds conSiderably to the scope of work Moreover,
the scope of work for Rincon wllllnclude an economic analYSIS Intended to address Issues
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required by the court Kosmont & Associates, Inc, a firm experienced In real estate,
economiC, and planning analysIs, will prepare the economic analysIs as a subconsultant
to Rincon Consultants
FINANCIAUBUDGET ARY nVIPACT$
Through ItS predevelopment loan to the Fourth Street Senior Citizen Housing Corporation,
the City will lend $63,070 from the CitYWide Housing AcquIsition and Rehabilitation
(CHARP) Trust Fund to pay for the additional environmental and economic analysIs The
loan Will be financed from account number 15-720-264-18893-8905-99049
RECOMMENDATIONS
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a contract with Rincon Consultants, Inc In an amount not to exceed $63,070 to
prepare an Environmental Impact Report and an economic analysIs for the Fourth Street
Senior Housing Project
Prepared by Suzanne Frick, Director of Planning and Community Development
Karen Ginsberg, Planmng Manager
Susan Healy Keene, Associate Planner
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