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SR-11-B (3) .. "~ . . //--8 ttJo.- tN:J J FEB Z 5 1986 CjED:EDD:PC:EF:CSR Councll Meetlng: February 25, 1986 Santa MOnlCa, Callfornia TO: The Mayor and Clty Councll FROM: Clty Staff SUBJECT: Recommendatlon Development of Alrport to Approve Request for the Residual Land at the Proposal for Santa Monlca INTRODOCTION ThlS report transmits to the Clty Councll for lts reVlew and conslderatlon the Flnal Draft Request for Development Proposal (RFP) for approxlmately 39 acres of land at the Santa Monica Alrport that wlll become available for new development once Alrport facilltles are reconflgured. The Final Draft RFP was approved by the City Plannlng Conunisslon on January 13, 1986. ThlS report descrlbes the process by WhlCh the Flnal Draft RFP was prepared and approved, summarizes the contents of the document, outllnes the process by WhlCh development proposals will be evaluated, and provldes the estlmated schedule for completlon of the process. The report recommends that the Council conslder the Flnal Draft RFP, lncorpor.ate revlsions it deems approprlate and approve the RFP, appoint two Councll members to a Selectlon Advlsory Committee, and authorlze staff to release the document and proceed wlth sollcltlng development proposals for the slte. //-8 FEB 2 5 19RF. - 1 - . .. BACKGROUND On February 19, 1985, the C~ty Counc~l approved a work program to develop the approx~mately 39 acres of land that wlll become ava~lable for new development once fac~lit~es at the A~rport are reconflgured to comply w~ th the A~rport Master Agreement (Contract No. 4069 CCS), the Inter~m A~rport Agreement. The work program ~ncluded the follow~ng maJor tasks: 1. C~ty Counc~l study session w~th dlScuss~on on the pol~cy opt~ons possible for the property, the reasons for using an RFP, and the mechan~sms to include the public in the development approval process. 2. Staff draft an RFP. 3. C~ty Counc~l conceptually approve draft RFP. 4. Plann~ng Comm~sslon and A~rport Comm~SSlon rev~ew and comment on draft RFP. 5. Clty Counc~l reVlse and approve the RFP. 6. Issue RFP. 7. Clty Manager establlsh a Selectlon Advlsory Commlttee to reVlew and evaluate submltted development proposals. 8. Top three proposals selected by the Commlttee to submlt addltlonal and more detailed development, deslgn, and f~nanclal lnformatlon. 9. Selectlon Comm~ttee recommend most qualified developer to the C~ty Councll and request authorlzat~on for staff to enter lnto excluslve negotlatlon with that developer. 10. Staff negotlate wlth selected developer and request the Clty Council to conceptually approve draft development and d~Sposlt~on agreements. 11. Clty Boards and Cornmlss~ons, and the publlC reVlew and recommend reflnements to the selected proJect and agreements. 12. Counc~l reVlew and approve proJect and agreements. - 2 - . . The study sess~on was held on July 23 f 1985. Staff presented several development opt~ons for the property and updated the Counc~l on the status of prepar~ng the draft RFP. After d1Scuss~on on tne need to ~ncrease publ~c part~c~pat~on 1n prepar~ng the RFP, the C~ty Counc~l dlrected C1ty staff to develop the RFP ~n conJunct~on w~th the Plann~ng Cornrniss~on. In September 1985, C~ty staff presented a work program to the Plann~ng Comrn~ss~on for draft~ng the RFP and select~ng a proJect and developer for the s~te. The Planning Commiss~on approved the work program but dec~ded to hold a pub11c workshop on development opt~ons for the property pr~or to draft~ng the RFP. The purpose of the workshop was to explore var~ous options and opportun~tles for the s~te w~th a group of ~nvited ~nd~viduals who had part~cular experc~se with development proJects of s~milar scale. The Alrport Development Workshop was held on December 7, 1985. Several res~dents from the Dewey Street ne~ghborhood to the south of the A~rport ~n the C~ty of Los Angeles expressed concern that development of the s~te could result ~n potent~al traff~c and other ~mpacts that would affect the~r nelghborhood and stated that the ne~ghborhood should be protected from these lmpacts. A member of the A~rport Assoc~at~on stated that there should be better commun~cat~on and coord~nation with the Assoc~at~on and also the A~rport Comrn~ss~on. Attachment A summar~zes some of the maJor top~cs and f~nd~ngs discussed at the workshop. - 3 - . . Draft Request for Development pro~osal To provlde a basls for dlScusslon at the Alrport Development workshop, Clty staff prepared a draft RFP for the Commisslon 's conslderatlon. The Plannlng Commlssion held a publlC hearlng on the draft RFP on January 13, 1986. The publlC hearing was advertlsed in the Evening Outlook and an announcement was mailed to approxImately 150 persons who have requested to be kept notifIed of the progress of this proJect. Several residents from the Dewey Street nelghborhood in the City of Los Angeles expressed theIr concern about the closure of Airport Avenue to through traffic and the potentIal traffic generated by new development in the area that might impact theIr nelghborhood. Two speakers stated that the Clty should consider Including an aviatIon museum faclllty or exhIblt space In the proJect and one speake!: supported the concept of requI!: Ing an on-s1. te child day care center in the proJect and suggested that child care professionals reVIew the proJect proposals to ensure that proposed child care facilities were adequate to meet the demand generated by the proJect and satlsfled State and federal laws. The Plannl.ng CommiSSion rev1.ewed the draft RFP and modifl.ed the document to respond to the diSCUSSlon that took place at the A1.rport Development Workshop, the comments at the publiC hearing, and the CommISSIon I S own concerns. The revised Draft RFP was approved unanImously by the fIve PlannIng CommiSSioners present at tne meetl.ng. (COmml.SS10ners Kirshner and Israel were absent.) - 4 - . . The Final Draft Request for Development Proposal lS lncluded as Attachment B for the Clty Councll's conslderation. The Plannlng Commlsslon-approved RFP was forwarded to the Airport CommlsSlon for ltS reVIew and comment. The CommIssIon I s only recommendatlon was to add an Airport CommissIoner to the Selectlon Advisory COITuuttee whICh has been Included in staff I s recommendatIon ln thlS report to the CIty Councll. SlImm':lry of the Request fat: Deve10llment Proposal; The RFP wlll provide potentlal developers wlth Information necessary to prepare and submIt development proposals for the Clty'S review and cons1deratlon and presents this 1nformation 1n nine sectlons: o Summary -- contalns an executlve summary of the RFP documentj o Background InformatIon and Market Potential contains general background and market lnformatlon about the CIty and surround1ng area; o The ProJect Slte -- presents spec1fic technlcal information about the proJect slte's topography, surroundIng land uses, traffIc c1rculatlon and publlC translt, and the hlstory of the Alrport. ThIS sectlon also descrIbes the applicable development and plannlng pollcles that affect development of the Sl te. o Development Proposals development standards, and for development proposals; oLand D1SposItlon procedures -- detalls the procedure by which the Clty WIll dIspose of the property; lIStS the goals, add1t1onal developer obJectlves, oblIgatIons o Selectlon Procedures, Negotlatlon Process, and Schedule detaIls the procedure by WhlCh the CIty wlll select the development for the SIte, negotlate an agreement WIth the developer, and the antlcIpated tlmlng for these actlons; o Proposal ReVIew and Selectlon CrIterla -- 11stS the crlterla by WhICh the CIty WIll select the developer and proJect; - 5 - . . o Proposal Submlttal requlrements for conslderatlon; Requlrements wlll submittlng proposals for contaln the the Clty'S In addl tlon to the RFP, the Proposal Applicat:l.on Package W:l.ll contaln forms, documents, and other ltems that wlll be needed to prepare and subml t development proposals for the Clty'S consl-deration. Development Parameters Sectlon IV of the RFP contalns the parameters for development of the Airport Sl te based on the provlslons of the Alr'port Master Agreement, the Clty'S adopted land use and clrculatlon goals and obJectlves, and the Plannlng Commisslon's recommendatlons. ThlS sectlon of the staff repore brlefly summarlzes the maJor development parameters contalned in the RFP. In additlon to the summarlzed parameters, the Clty recognlzes ltS obllgatlons under VarlOUS airport leases to provide continued reasonable access to Alrport leaseholds. Therefore, the City reserves the rlght to alter Alrport access conslstent wlth lts obllgatlon to ensure contlnued, adequate access to Alrport lessees. Land uses: Desu:ed uses: o Research and development offices and laboratorles lncludlng support assembly and 11ght manufacturlng faCllltles. o General Offlces. o Small buslness lncubator facllltles programs to asslst start-up companles early stages of business development. and support dur lng tne - 6 - . . o Other uses such as convenIence reta1l and restaurants are desIred 1f they are lntended prImarily for the convenlence of employees worklng 1n the proJect. Permltted uses: o All other uses that are compatIble WIth the AIrport. Unacceptable uses: o Those uses that are not compatlble with Airport operat1ons or are not consistent with Clty-w1de land use pollcies lnclud1ng resident1al, medIcal offIce, specialty and general retail, assembly, and heavy Industrial uses. Bulk: 1,275,000 square feet of floor area (0.75 FAR) maximum. Height: 2 to 3 storIes on most of the SIte and up to SIX stories on about one-half of the SIte furthest from the AIrport runway. Lot Coverage: not to exceed 50%. Building Design: exhIbIt superIor bUlld1ng design, establIsh a deSign concept that wlll vlsually unIfy all components and phases of the proJect, and prohibit large expanses of h1ghly reflect1ve mater1als and black glass. Traffic Circulation: No IntersectIon shall operate during peak rush hours at greater than 91% of its deSIgn capaCity, all access to the proJect slte shall be from Bundy Drlve, no access to the proJect site shall be permltted from 23rd Street except for emergency vehIcles, all Inter10r roads are to be deSIgned and constructed by the developer 1n accordance WIth CIty standards and must be ded1cated as publ1c streets, all 1mprovements to 1ntersect1ons 1n the surrounding area to be paId by developer. Parking: One parkIng space for each 250 square feet of floor area except for retaIl space Wh1Ch shall provlde one parkIng space for each 300 square feet of floor area and restaurants WhICh shall provide one park1ng space for each 75 square feet of floor area. The number of spaces may be reduced if a Transportat1on Systems Management (TSM) plan 1S 1mplemented. Open Space and Landscaping: The development proJect must contaln a contInuous and sensltlvely landscaped open space system that conslsts of parcel-specIf1c open spaces adJacent to indlvidual bU1ldIngs for the use primar1ly of bUlldlng employees and Vlsltors and a park-I1ke - 7 - . . common a~ea avaIlable to all development employees, v~s~to~s, and the public. The~e shall be a 20 I landscaped setback f~om Bundy D~~ve and f~om the southern p~operty l~ne adJacent to the ~es~dent~al neIghbo~hood to the south and a 6' to 8 I setback from the new A~~po~t perImete~ road near the reconf~gu~ed Airport facil~tIes adJacent to the runway. All surface parkIng lots should have at. least one tree for each 1,200 square feet of paved surface parkIng area consIstent with eXIsting and proposed City landscaping standards. Utilities and Infrastructure Improvements: These are specIfied as the responsIbIlity of the developer. Additional Developer Obli9atlons In addItIon to the development standards and paramete~s contained In the RFP, all develope~s shall include in their proposals p~ovlsIons fo~ complying WIth the follOWIng developer oblIgatIons. These OblIgations are conSIstent with adopted feder al, State, or CIty laws or pOlIcies and respond to publIC comments on the prelImInary draft RFP. The RFP states that the developer must cause to be paId prevaIlIng wages as determIned by State and federal laws and regulatIons In connection WIth the development and construction of the sIte and must prepare an affI~matIve actIon program to Involve raCIal and ethnIC mInorItIes and women as employees, cont~actors, subcontractors, JOInt venturers, and/or equI ty owners where feaSIble. In addItion, the developer must describe the benefIts the development p~oJect WIll have on employment oppo~tunItIes for local and ~egIonal reSIdents. The RFP also states that all proposals shall include an on-SIte chIld day care faCIlIty of a SIze and type suffIcient to meet the - 8 - . . ant~c~pated demand and budgets of employees who are ant~cipated to work in the proJect, shall prov~de affordable hous~ng and parks and publ~c open space or pay an in-l~eu fee cons~stent with adopted C~ty polic~es, and shall set as~de at least 1% of the total construct~on cost for commissioned on-s~te public art. Each development proposal shall also prov~de for the development and operat~on of a small bus~ness ~ncubator facil~ty and program to ass~st newly establIshed small bus~nesses ~n the~r early development phase, conslstent wlth adopted City land use objectives to encourage small buslnesses In the C~ty. Selection Procedure The Request for Development Proposals contalns a two phased process to evaluate and select a developer and proJect for the a~rport property. Phase I of the process requires that all lnterested partles submIt for the Clty' s review a Statement of Quallflcatlons and General Development Concept Plan. ThlS will enable the Clty to reVlew the quallficatlons of the proposed developer and evaluate hIS or her lnltial concepts for the use of the property. Those developers who are determ~ned to be most quallf~ed wllI be selected to continue to Phase 2. In Phase 2 of the process, selected developers wlll be asked to ref~ne thelr Inltlal development concepts and to provlde detalled deslgns and informatlon as to the spec~f~c proJect they propose for the slte. The evaluatIon crlteria wlll include the responslveness of the development proJect to the Clty'S goals and obJect~ves, the overall strength of the development team, the - 9 - . . quallty at the proJect deslgn, and the land lease and other revenues and benefits generated by the proJect, among other crlterla. A Selectlon Advl.sory Comrnlttee Wl.ll be appolnted by the Clty Manager conslstlng of two Clty Council members, one City Plannlng Commlssloner, one Airport Comml.ssioner, Cl.ty staff, and others if approprlate. The Committee wlll select those developers who may continue on to Phase 2 of the selectlon process and wlll recommend to the Cl.ty Councll the sl.ngle developer wlth which the Clty will enter into an exclUSlve right to negotl.ate. As part of the negotiatlon process, the speclfic proJect wl11 be presented to the publlC and revlewed by the City Plannlng Comlnlssion and other Boards and Commlsslons WhlCh wlll recommend modiflcations to the proJect to ensure that lt satisfles the Clty'S goals and ObJectives for development of the slte. Schedule The schedule for Sollcltlng and evaluatlng development proposals and for selectlng and reElnlng a specl.fl.c development project is antl.clpated to requl.re approxl.mately 17 months. The estimated tl.ffilng for specl.fl.c steps in the process are: EST. TIME TOTAL ELAPSED TIME Phase 1 o Clty lssues Request for Development Proposals -0- -0- o Response to RFP -- State- ment of Quall.flcatlons and 60 days 2 months - 10 - . . General Development Concept due. o Selectlon Adv1sory Commlttee review of Statement of Qual1f1cat10ns and General Development Concepts. Prelimlnary lnterv1ews and requests for add1tional and clarlfYlng 1nformatlon; developer responses to Clty requests for addltlonal informatlon. 45 days 3 1/2 months o Se1ectlon of most hlgh1y- qualifled developers by CitYi Clty author1zes preparatlon of Speclflc Development Proposals. Phase 2 o Spec1flc Development Proposals due. 6 1/2 months 90 days 45 days o Selectlon Advlsory Commlttee reVlew of Development Pro- posals. Intervlews, presen- tatlons and requests for add- ltlonal and clarlfYlng lnfor- matlon; developer responses to City requests for add1tional 1nformat10n. 8 months o Select10n of developer by CitYi acceptance of Offer to Negot1ate Exclusively. Refinement and Negotiation Period o PubllC review through approprl- ate Boards and Commlss1ons, reflne the selected development proJect, conduct env1ronmental reVlew, conduct lease negotlatlon, and execute agreements. 270 days 17 months BUDGET/FISCAL IMPACT There will be no dlrect budgetary or fiscal 1mpact resultlng 1n adoptlng the Request for Development Proposal for the pro] ect - 11 - . . area at the Airport. However, City revenue wl.ll be generated once a specific development proJect 1S selected and constructed through ground lease revenue and property, sales, busl.nsess llcense, utl.ll.ty user, and other tax revenue. RECOMMENDATIONS It is recommended that the C1ty Counc1l: 1) approve the RFP with any modlflcat1ons the Counc1l deems appropr1ate, 2) authorlze City staff development proposals, to release the RFP requestlng 3) appolnt two City Counc1l member s to the Selection AdVlsorY Commlttee, 4) dlrect the C1ty Manager to 1nclude one member of the Alrport Commiss1on on the Selectl.on Advlsory Commlttee, and 5) authorlze the Selectlon Advisory Commlttee and Clty staff to lden tlfy and recommend to the City Counc 11 the development proposal that merlts exclus1ve rlghts to negotiate. Prepared by: Peggy Curran, Actl.ng Director Communl.ty and EconomlC Development Department Ernesto R. Flores, Manager Chr1stopher S. Rudd, Senlor Adminlstratl.ve Analyst Economic Development D1V1S1on Communlty and Economl.C Development Department Attachment A: B: Summary of Al.rport Development Workshop Draft Request for Development proposal alrtocc - 12 - . . ATTACHMENT A SUMMARY OF AIRPORT DEVELOPMENT WORKSHOP The follow~ng ~s a summary of the maJor top~cs of d~scuss~on and f~nd~ng from thp A~rport Devplopment ,yorkshop conducted by the C~ty Plann~ng Comm1SS10n on December 7, 1985. 1. There lS a large and actlve market on the wests1de for offlce dpvelClpment Wh1Ch lS best 111ustratpd by the offlCP dpvplopmE'nt that lS C'lccurrlng along thp Olymplc Boulpvard corrldor. The wpst5~de 15 cons~dered an affluent market and UCLA provldes a maJor source of bus1ness profpss~onals wh0 llve or work on the wE'sts~de. 2. The employment base on the wpsts1de ~5 g00d for off1ce developmpn t. 3. It lS d1ff1cult to locatp or reta1n Industr1al buslnpsses on the WE'sts~de due to the h~gh land costs and to the l~m~ted ~ndustrlally-based labor markE't l~vlng In thE' wpsts~de area. 4. Growth on the wests~de ~s accommodated by InCrpaS1.ng development ~ntens1ty and dE'ns~ty on ex~st1ng parcels rather- than by expand~ng at lower dE'ns1tH's 1n outly~ng adJacent areaS WhlCh ~s prevented by the surroundlng Ocean and mounta~ns. 5. There 1S currently an excess supply of off~ce development 0n the wests~de w~th an oVE'rall vacancy rate of approx ~matply 15% (about 9% ~n Santa Mon1ca). Larger devE'lopment compan~es cont~nue to develop large offlce proJects dur1ng thlS "soft" market so as not to be affected by potentIal downzon~ng WhlCh ~s occurlng In many communltles on the westsIde. 6. The westslde nff1ce market absorbs about 1.25 to 1.5 mlll~on square feet of offlce space per year. 7. The WE>stsldp dops not nepd addltlonal off lce spacp but does need addlt10nal 1ndustr 1al space. Howevpr, attract1ng lndustrlal usps to thp area wlll requlre a subsldy to reduce thp land cost for th1S type of dE'velopment. 8. Research and development (R & D) IS a S1.ffiIlar use to gpneral offlce but WIth a greater proportIon of professIonal pmployees than 15 tYPlcally found In gE>neral offlce development. Hlgh technology R & D IS a very narrow market and 1S heavlly ~nfluencpd by changps 1n ~nternatl{lnal affalrs. - 1 - . . 9. The development at the proJect Sl te could bf' focussf'd on SC1ence and technology but th1S would assume that thf' Un1ted States w1ll ma1nta1n 1tS currf'nt status 1n technologlcal f 1.elds. Los Angeles lS the number ClOe hlgh-tech arpa 1n thp country and there arp no h1gh-tech buslnpss parks on the westslde. The C1ty may w1sh to consldpr an 1.nformal l1.nk wlth UCLA WhlCh may prov1dp a cOnVen1f'nt sourcf' of bus1.nf'sses establ~shf'd by Un1.vers1ty professors or graduate students who want to start the1r own bUSlness. A more formal assoc1atlon w1th the Un1verslty lS not rpqu1.red and could result 1.n delays due to the reVlew and approval process by the Unlverslty. 10. The proJect should conta1.n some bUlldlngs that can be dlv1ded 1nto 2,000 to 3,000 square foot modules to accommodate small buslnesses. 11. A small buslness locubator program must conslst of three maJor components: a. A bUl1dlng, group of bUlld1ngs, or a portlon of a bU1ldlng that can accommodate small buslnesses. b. SerV1Cf'S and facll1t1f'S such as comrn0n secrf'tarlal, rf'Cept1on, Janltorlal, and c0nferencf' r00ms that can bf' shared by all of the bUSlneSSf'S served by the lncubat0r program. c. Asslstancp and advlcP for newly created buslnpssps such as how to develop a bUS1nf'SS plan, how to obta1n small bUSlnf'SS loans, and how to df'velop a marketlng plan. 12. Incubatnr facllltles may bf' located In any type of buslness park. ThE're are about 100 lncubator programs 1n thf' Unl ted States prlmarlly 1n thE' Northeast. Fac1llt1E'S range from 40,000 50,000 square feet and the lndlvldua1 lncubator spacE's rangf' from about 100 to 6,000 square feet. 13. The rn1X of tenants In lncubator fac111tlPs should bE' cornpat1ble so that those bUSlnf'SSE"S that gf'npratE' dust arE' not adJacent to those bUSlnE'SSE'S that requlre a clean, dust-freE' enV1ronment. The lncubator facll1ty should not contal.n retall, wholesalf', or warehousE" buslnesses becausf' lncubator fac1llt1es arf' 1ntf'nded to pr<wlde tf'mporary spacE" for new buslnesses whlle they start up and arE' not lntenof'd to provldf' facllitles for bus1nessps that rf'qu1 r!'> hlgh-V1Slblllty or other spf'clal locatlonal requlrements. 14. Incubator programs should provlde for thf' recyc11.ng of thf' lncubator spaces wlth rf'qulrernpnts for bUS1nf'SSeS to vacatE" the space when they excepd a certaln Slze. Restrlctlons may also requlrf' that bUSlnf'SSeS vacatE" the space after a Cf'rtaln amount of tlme or If thp bus1ness does not grow and px pand. These restrlctlons are lntended to pnsure that the lncubator fac1llty dof's not compptp w1th the prlvatp market and lS targetpd to new bUSlnessPS only for that tlme pprlod nppded - 2 - . . dUT ~ng wh~ch the AppTOX ~matE'ly 90% locat~ons w~th~n fac~l~ ty. bus~nesses of the the same aTe beg ~nn~ng the~T ope Ta tHln. ~ncubator bus~nesses move to general area as the Incubator 15. The prof~t for the developer/owners of the ~ncubator fac~l~ty and program IS usually not from the Income generated directly from the fac~llty. The profIt to the developer is usually from the bUSinesses USing other products sold by the company, from the busl.ness movl.ng to another locatl.on owned by thE' company, from thE' company partlclpat~ng ~n thE' profIts from the company, or other means. PrIvatE' OwnE'rs of Incubator fac1l1t~es usually have equIty 1n thE' Incubator bUSlneSSE'S wh~le publlc owners of Incubator faC1l1tles generally do not. 16. ApproXImately 12% of the new hlgh-tech buslnesses are started by people assocIated WIth unlverSltles. The CIty must assE'SS 1f a unIversIty's faculty or graduate students are Interested 1n starting new bUSinesses In the area. 17. All amenItles reqUIred In the development proJect that do not add to the value of the proJect WIll requlre an adJustment of the land lease costs. Lessees do not care about the developer's cost to bUlla the development but only care about the cost to lease the space. 18. An auto park does not appear to be a v1able alternatIve for the pr0Ject Site because auto parks rE'quIre hIgh VISibilIty (generally adJacent to freeways), need to be well lIghted for nlght-tlme use whlch would be 1ncompat1ble WIth adJacent rE'sldentIal areas, are generally cc>nsIderE'd to be a form of, land bank~ng untIl a more pE'rmanent land USE' lS proposed (or made fpas1ble) f('lr the slte, and d('l not gpnE'rate slgnlf~cant land leasp rE'venue to the C('lmmun1ty. 19. The AIrport slte does not prov1de the level of amenltlE'S that other Sitps contaIn (such as TOTTE'Y P1nes BUS1nE'SS Park) so the C1ty must ensure that the development Will be ablE' to accommodatE' a WIde range of tenants. The narr('lWE'r the tenant cholce the greatE'r the r1sk to the developer and the proJect. 20. The des~gn ('If thi'" proJect should have "curb appeal" with landscaping an important factor. ThE' dE'vE'lopmi'"nt should malnta~n a common theme thr0ughout the proJE'ct. Thi'" bUildlngs should be des1gned to maintain max 1mum flex Ib11~ty Slncp each tpnant w1ll taIloT theIr space to thE'lr ~nd1vldual need S wIth thE'lr own tenant 1mprOvemE'nts. 'fhe park should not prov1de Its 0wn central computE'r system 0r central1zed tE'leC0mmunlcat1('1n faC111ty Slnce some bUSlneSSE'S WIll not requirp thesE' fac11itlE'S and the techn0l0gy IS changing S0 rapIdly that some of thE'se facllltlE'S may qU1ckly bpcomE' obsolE'te. 21. ParkIng for all USE'S 1n the pr0]ect should be requlrpd at the ratp requlrpd for offlce (lE'vE'10pment (gE'nerally one parkIng - 3 - . . spacE' per 250 square feet (If fl(lor area) to maIntaIn max Imum fleXIbIlIty for the proJect. 22. The CIty should defIne specIfIcally what It wants for the development of the proJect sIte. The CIty should narrow the typps of usps but should not be so preCIse that It reduces flex Iblll ty . 23. The CIty must determInE' WhICh restrIctIons or exactlons are most Important Slncp reStrlctHlnS and exactIons WIll reduce the revenue receIved from the land lease. 24. Thp CIty should conSIder USIng a Request for QualIfIcatIons (RFQ) In order to determIne WhICh development companIes are most capable of developIng, fInanCIng, and maIntaInIng a proJect at the AIrport SIte. Deve10pers favor a process where thE'Y are C0mpE'tIng WIth othpr equally well qualIfIed proposers. Developers must be assured tnat the CIty 15 serlous ab0ut deve10plng the pr0perty Slnce preparIng development proposals IS costly. 25. The CIty should look carefully at thp deve10per's flnanClal capabIlIty, experIence, and WIllIngness to respond to the concerns of the CIty and the opportunItIes and constraInts of the SIte. 26. The CIty should structure the deal WIth the deve10per so as to benefIt fr0m a greater than expected SUCCf'SS 0f the proJect. 27. The Clty should permIt a mllC of uses and should permIt some- retaIl and serVIce uses to serve employees worklng In the development proJect. The Clty should not be the developer of the proJect and must have a master developer due to the need to phase the proJect constructlon. A master devE'loper WIll also b€' able to control the mIX of tenants In thE' proJect thus redUCIng competlt10n from 0ther proJects In the area. alrtoccl - 4 - . ~RAF1 ATTACID:!ENT B DRAFT REQUEST FOR DEVELOPMENT PROPOSAL of AIRPORT RESIDUAL LAND SANTA MONICA, CALIFORNIA FEBRUARY 1986 . . REQUEST POR PROPOSALS -- AIRPORT PROJECT SITE TABLE OF CONTENTS PAGE ~. C0ver letter fT0rn the MaY0T l~. Table 0f C0ntents ~~ I . SUMMARY 1 PUTp0se f0T Request fOT Deve10pment The PT0Ject S~te Deve10pmpnt Opp0Ttunlty Deve10pment PaTameteTs PT0JPCt Select10n Pr0ceduTes Schedule 1 1 1 2 3 4 II. BACKGROUND INFORMATION AND MARKET POTENTIAL 5 The Cl ty The L0cal and Reg10nal EC0nomy 5 8 III. THE PROJECT SITE 12 GeneTal DescTlpt10n 0f the PT0Ject S~te Appl~cable Oeve10pment and Plannlng P01icies 12 14 IV. DEVELOPMENT PROPOSALS 16 Clty'S deve10pment g0al and 0bject~ves Deve10pment standaTds 16 17 1. Land uses 2. PaTcellzatlnn 3. BUlldlng bulk 4. BUlldlng helght 5. L0t CnvPTagp 6. BUlldlng deSlgn 7. ClTculatl0n 8. Parking 9. Open Space 10. Land scaplng 11. Slgnagp 12. L1ghtlng 13. Ut1llt1es 14. Sl"CUTlty 17 20 20 20 21 21 21 22 23 24 25 25 25 26 11 . , . . Page- AddltI0nal developpr oblIgatIons 26 1- 2. 3. 4. 5. 6. 7. 8. 9. PrevaIlIng wagE'S AffIrmatIVe actIon and WMBE EmploymE'nt OpportunItIes Day CarE' Affordable housIng and opE'n space EnVIronmental Impact mItIgatIon PublIC art ProtectlvP cove-nants Small BUSInE'SS Incubator FacIlIty and Program 26 26 27 27 27 28 28 29 29 V. LAND DISPOSITION PROCEDURES 30 MInImum FinanCIal Terms 30 CIty AssIstance 30 Master DevE'loper RequIred 31 VI. SELECTION PROCEDURES, NEGOTIATION PROCESS, AND SCHEDULE 32 General 32 Proposal PreparatIon and RE'VleW ProcE'SS 33 ProjE'ct Reflnem€'nt, EnVlronmpntal ReVIPW LE'ase NE'gntIatlon, Contract ~E'CutIon 34 SelectIon Process Schedul€' 36 VII. PROPOSAL REVIEW AND SELECTION CRITERIA 37 PhaSe One -- Statement of QualIfIcatIons and Development C0ncept CrIterIa 37 Phase Two Cn.terIa 38 VIII. PROPOSAL SUBMITTAL REQUIREMENTS 41 Phase One - Statement of QualIfIcatI0ns and Gpneral Development Concept Phase- Two - DetaIled DeSIgn ConCE'pt IX. PROPOSAL APPLICATION PACKAGE t" be added Inf0rmatI0nal D0cuments R€'quIred Proposal ApplIcatIon F0rms III . . I. SUMMARY Purpnse nf Request f~r Deve10pment Pr~pnsal ThE' Cl ty ('If Santa MOnlca IS sppklng oevE'lopment pr('lposals from quallfled oE'velop@rs for a larg@ parcpl of Clty-owopd land aOJacpnt to thp Santa Monlca Munlclpal Alrport. The pr('lperty lS locatE'o at thE' southE'astern cornpr (If thE' Clty at the IntE'Sectlon (If Bundy DrlVE' and Alrp~rt Avenue. ThlS RequE'st f(lr Dl"velopment Proposal C0ntalns backgr0und tE'ChnlCal and market p0tentlal Informatlon to pr0'llde thE' cC"lntl"x t In WhlCh prC"lJE'ct prC"lp(lsals shC"luld be prl"pared; dl"scrlbes thp pr0]E'ct SltE'; llStS thE' Clty's goal, Ob]l"ctlves, standards, and dE'vE'loper obllgatlons for the dpvp10pmE'nti descrlbes thE' Clty'S pr0cl"durE's to select a proJect and npgotlate agreemE'nts wlth the developpr; oE'talls the pr0posal r"'Vlew and sPlpctlon crIterla; and proVlOPs all npcE'ssary InformaLlon and f(lrms t(l submlt a developmpnt pr0p0sal. The ProJE'ct Site The prC"lJPct Sl t'" contalns approlC lmatply 39 acrps ('If land. It IS bordpred by ex lstIng sInglE' famIly resldE'ntlal nE' Ighborh00d s In the Clty 0f L0S Angeles dIrectly to the s0uth and to the past acr0SS Bundy DrlVl" and by the Santa MC"lnlCa Alrport to thl" nC"lrth and west. The pr0perty IS abC"lut 10' to 20' belC'lw thE' AlrpC'lrt runway levl"l and has a gentl'" 1% s10pp fr0m east to west Wl th E'levat10ns that range fr0m 120' to abC"lut 170'. Ih€' SItE' IS Il"ss than 0ne mlle s0uth 0f the Santa M0nlca Freeway (1-10) wlth dlrpct access pr0vlded by Bundy Drl'll". In 1985, maj0r Intprsectl0ns In thE' arE'a wl"rp OpE'ratlng durlng peak rusn h~urs at aoout 84% of thl"lr deslgn capaclty. Development Opp~rtunity The proJect Sltp rppresE'nts a development opportun~ty tnat 15 rare In thp westslde area 0f L0S Angelps C0unty n0t only due to the SlZP of thl" parcpl but also becausp of Its locatIon In an arpa that has pxpE'rlE'nced a str0ng dpmand for a varIety of land usE's. The proJect SltE' 15 sltuated In thp Clty 0f Santa M0nlca WhlCh lS l0catl"d on thl" wpstprn SIdE' ('If Los AngE'les County and IS oordered on thrE'p s~dE'S by the C~ty 0f Los Angples and by thE' Paclf~c Ocean to thE' west. ThE' Clty 15 connectE'd to othpr Important bUSlness CE'nters and faCllltles In the rE"g10n by thp Santa 1>10nlca FrE'pway (1-10) WhlCh pass;;>s through the centpr (If the Clty. Santa MC"lnlca IS a charter Clty provldlng a wlde range of C<'lmmunlty SE'rVICE'S such as a munlclpal a~rport, bus systpm, and watpr and sewpr SE'rV1CP. Gas and plectrlcal powE'r arl" prOVIOPQ by rpgiC'lnal suppl~E'rs. roe C~ty contalns 170 acres of parks and publlC oppn nlO>arly thrE'P mllps of sandy oe3.chps, an i"xcpllent publlC systpm, and outstandlng publlC llbrary facllltlPS. spacE' , scho0l It 16 - 1 . . C0DVPDIPDtly Callf0r:'Ua, UnlVE'rslty. 10cac?d near UCLA, the Pepp?rdlnE' UnlVPfslty, Unlv"'rslty 0f and L0Y01 a S0uthern !'larym0un t In 1980, there wprp 88,314 rpsldents In tnE' CIty. Santa M0nlca's p0pulat10TI IS dlvprSE'. In 1980, 78% of the Clty'S rpsldents wpre .vhlte, n0["l-H1Spanlc and 13% WE'rE' Hlspanlc, thE' Clty'S 1argpst mln0rlty gr0up. Th? resldent mpdlan agp was 34.3 and m0st 0f ltS reSldpnts (57.9%) had S(lmf' C(l11pge pducatl(ln. In 1983, thp per caplta lnC(lmE' was estlmatpd t(l bp $14,792 WhlCh was 34% gn>atE'r than f0r L0S Angples C0unty. Over tW0-thIrds 0f the Clty'S lab0r force wer? emplClyed In Iwhltf>-C01lar" IndustrlE>S. Santa M0nlca c0ntalns a dlverse eC0nomlC base wlth retall, Sf>rv lce, elpctronlc, research, and manufacturlng buslnessps and sUpp0rts a daytlme p0pulatlon ('If 141,159 w0rkers, sh('lppers, Vlslt0rs, and resldf>nts. In 1984, th? Clty had 0ver $870 mlll10n In t0tal tax abl€" r€"tall salps WhICh was a 23% IncreaSE' Clvpr 1982 flgurps. Tn€" Clty also cClntalned appr0Xlmately 3.8 mlll10n squarp fpet 0f 0fflCE> space wlth an 88% 0ccupancy ratp. SlnCf' 1980, thp annual 0fflCE> abs0rptI0n rate In Santa M0nlca has b@f'n 423,000 squarp fef't Wh1Ch was Clne-thlrd (If thf' tCltal (lfflCe spacE> avallablf' Cln the wf'stsldp. M0St Clf thf' C1ty's Industrlal actIv1tlPS arp c0ncpntratE>d In thf' Olymplc B0ulpvard c0rrld0T adJacent to thp Santa M0nlca frE'f'way but vf'ry llmltpd maj0r hf'W manufacturlng spacp has bf'pn bu~lt 1n Santa M0n1ca 0T thp wPStS10P 1n rpCE>nt ypars. Therp are appr0x Imatply 1,000 f1rst class h0tpl r00ms l0catpd 1n thf' Cl ty wlth an avpragf' 0ccupancy ratp 0f alm0st 78% In 1983. MarkE>t analysps pTPparf'd f0r thE> Clty Indlcates that th;:>re lS demand f0r an addIt10nal 1,000 r00ms by tOf' year 2000. D~velop~nt Paramet~rs The pr0jE'ct slte reprE>spnts an lmpClrtant rpS0urce f0r thE' C~ty and as such any devp10pment pr(lJect 0n the Sltf' must TPpTPsent a suppr10r use 0f thE> land. ThE> Clty'S gnal IS to transf0rm an undpruclllzpd publIC asset Into an InnovatlvP, apsthPtlcally SUPE>r10r, hlgh quallty w0rklng f'nVlr0nment tnat pr0ducE>s slgnlfIcant new TPVenUE>, E>mp10ymf'nt, bUSlnpss 0pp0rtunItlf'S, and rplatpd bpnef 1 ts for b0th the pr0]E>ct usprs and thE> CIty In gpnpral. The RFP pr0VIdE>s thp gf'neral standards fClr delle10pmpnt 0f the propprty that rpflpct thlS communlty g0al. The dE'velClpment pr0]Pct must cflntaln uSPs that arp c0mpatlblp wlth thp Alrp0rt (lppratl0ns and WIth thp surr0undlng nPlgnbClrhCl0d. It may cClntaln up to 1.275 mll110n squaT;:> fpet In structures that ar;:> prlmarlly 2 tCl 3 StflTIE>S In helght althClugh S0mp bUlldlngs may rpacn 6 st0rlPS In hp1.ght at thf' srouth..rn p0rtl0n 0f thE' pr0perty. At Ipast 50% 0f thp parcel must rE>maln as 0ppn spacf' and landscaplng must prrovldp a campus-llke ~nVlr0nmpnt w1th spf'c1al landscapp treatmenc al0ng maJ0r strppts and th;:> pf'rlphery 0f thE> pr0JE>ct s~tE>. Thp dE>vE>10pmpnt must pr0\1 ~d.. suff lClent parklng spacp p?r 250 square fept (If devp10pment) and (gpnf'rally at 1 llnpT0VE>mE>nts tro - 2 - , . . . maJ0r 1ntF'rSf'ctH'ns 1n the arE'a w1.ll bf' requ1.rod S0 tnat trafflc 9E'neratF'd by thE' pr0J@ct d0f's n0t rpsul,:: 1.n thpsp IntprspctH'ns F'JtCF'eClng 91% 0f thF'lr des1gn capac1ty to acc0mm0datp traff1c dur1ng peak rusn h0urs. Dpvp10pf'rs w1ll be rpqulred to pay prf'Va1.l1ng wagps In C0nnpctI0n W1th t.nF' C0nstructlC'n 0f thF' pr0JE'ct, must attF'mpt to aChlF'VF' accept.lblF' levels 0f mln0rl ty and fpmale (lwned bUSlnpss partlclpat1.0n In the plannIng and C0nstruct10n phases, and must descr lb€' the antlclpated empl(lyment bpnef l ts the pr(l]Pct wlll havF' (In the surr0undlng c0mmunlty. The dpvpl0per w1.ll bp exppcted to mlnlm1.Zf' and mItIgatE' all s1.gnlf1.cant pnvlr0nmental lmpacts and to c0mply wIth CIty ad0pted JUE'asures to satIsfy the antlclpated demand empl{'lyeps wlll generate f0r chlld day carF', aff0rdacle h0uslng, and parks and publlC 0pF'n space. In add1.t10n, the dpvpl0ppr w1.1l bp aSKf'd to pr0vidE' a small bUSlnF'ss Incubat0r faCIlIty and pr0gram that WIll acc0mm("ldatp and aSsIst small bus1.nessE's durIng thE'1.r parly devel0pment stagp. Proj~ct S~l~ctlon PT0cedure Sf'lect10n 0f a dE'veI0pE'r and pr0Jf'ct wlll takp placp ln tW0 phases. In Phase 1, tOf' dpvf'l0per must submlt a Statement 0f Quallflcat10ns that descrlbes tne dpve10perts quallflcatl("lns and PxpprlPncp ln dE've10plng and managIng pr0JPcts 0f Slmllar SC0pp and nature and h1.s or her flnanclal capablllty, and a GenE-ral Development C0ncept Plan that dpscrlbes at a c0ncpptual level the features 0f the pr0p0sed pr0]ect. ThE' Clty wlll n0t reqUIre the dpvel0per to subm~t detallf'd plans 0r renderlngs 0f the pr0Ject at thIS phasp ("If the reVlew pr0cPss. Thp CIty wlll pstabllsh a Select10n Advls0ry C0mmltt.ef' C0mprlSf'd 0f Clty C0unc~1 mpmbprs, Plannlng C(lmm~ss1.oners, Alrp0rt C0mmlssl0nprs, and C1.ty staff to reVlew and evaluate each devp10per and dF'velopment pr0p0sal and to sf'lect th0se m0st qual1.flpd dE'vpl0pers to partlclpate ln Phase 2 0f the SPlpctlon pr0cedure. F0r Phase 2, dpve10pers w1.l1 bp rpquE'stE'd to submlt m0rp spec~flC deve10pmpnt pr0p0sals. ThE'se Speclflc Dpve10pment Pr0p0sals must ~nclude a c0mplete descrlptl{'ln 0f both thF' bUSlness terms and f'C0n0mlCS 0f thf' devf'10pment pr0JPct as WE'll as dE'talled plans 0r rendprlngs and a model {'If tne pr0posd pr0]Pct. The Selpct10n Advls0ry Commltte€' wlll rev1.pw and evaluatp f'ach detallpd dE'vE'lopm€'nt pr0p(lsal and wlll rec0mmend to thp Clty C0uncll the SIngle dpve10ppr and pr0JE'ct that m0st cl0sply satlsf~E's thE' Clty'S goals and Ob]E'CtlVF'S f0r the Sltf'. The C0uncll wlll c0nsldpr the C0mmlttE'e' s rpc0mmendat10n and authorlze staff to enter Int0 an agrpempnt f0r excluslVP npg0tlatlon wlth thp dF've10pE'r It flnds m0st quallflf'd. Durlng thE' neg0tlat10n process, Clt.y staff and thp dE'vplopf'r w~ll flnallze C0mmltments and prf'pare agrf'emf'nts and 0tnpr c0ntracts f0r dlSp0sltl0n of thp pTC1pprty. In addlt10n, thp pr0JPct wlll be rf'vIPwpd at publ~c hearlngs bef0re C1.ty B0ards and C0mmlsSlons WhICh wlll recommend reflnpmpnts to thp pr0]Pct. Up0n succpssful - 3 - , . . . c0mplet10n ~f the neg0tlat10n pr0cess, the Clty C0uncll wlll appr0ve the pr0Ject and agrpements and the pr0JPct may pr0ceed to C0nstrL.lct10n. Schedule CC">mpletPd Stateml"nts 0f Qual1flcat10ns and General Devel0pment C~ncE'pt pr0p0sals must be submltted to the Cl ty no later than 4:00 P.M. Frlday, May , 1986. Candidates selected to c0ntlnup tC"l Phase 2 wlll be nC">tlf1pd by the C1ty 1n SE"ptember 1986. Thp Speclflc Dpvel0pment PrC">p0sals prepared f0r Phase 2 w111 be due In December 1986. - 4 - . . II. BACKGROUND INFORMATION AND MARKET POTENTIAL A. THE CITY 1. G@neral Descripti~n The Clty of Santa MonIca, sItuated on the western sIde of Los Angeles County, IS bordered by the CIty of Los Angeles communltles of Paclflc PalIsades, Brentwood, West L0s Angeles, Venlce, and by the Paclflc Ocean to the West. Santa MonIca encompasses SlIghtly more than elght square mlles and has an estImated populatl0n of 93,100 persons, WhICh makes It the SIX th largest Clty In L0s Angeles C()unty. Santa Monlca was Incorporated ln 1886 and subsequently adopted Its Clty Charter ln 1945. The Clty has a councIl-manager form of government, comprlsed of SE'ven Councll members who, aftE'r each electIon, select one of theIr membprs to serve as Mayor. The Clt.y Manag!"r servps at the pleasure ()f thp CIty CounCIl and IS responSIble for supervISIng day-to-day operatlons and for lmplementlng POllC1PS set by the CIty Councll. The Santa MonIca Freeway (1-10) passes through the appr()x Imate center 0f the CIty on an east-west C0urse and prov Ides dIrect C0nnE'ctlon Wl th downt'own Los Angeles, appr0x Imately 16 mIles t() thE' east. Ab()ut SIX mlles south of tne CIty lS thE' Los Angeles Internatl()nal Alrp0rt, the West's largest and bUSIest commercIal aIrport. Deep water shIppIng faCIlItIes at the Los Angeles and Long Beach Harb()rs can be reached dlrectly VIa the San DIego Freeway, located about 0ne mIle east of the CIty. The CIty r s clImate IS generally mIld WIth an average mean temp~rature of 62 degrees (Fl. Extremes range fr0m an average mInImum temperature ()f 56 dpgrees (F) to an average nIgh 0f 68 degrees (F). RaInfall averages approx lmatE'ly 14 Inches per year. ElevatIon ranges from sea level to 400 feet above sea levpl. 2. Charter P~wers The CIty of Santa M0n~ca ~s a full SE'rv ~ce, charter CIty. Under the munICIpal charter, the CIty operatE's a Par~lng AuthorIty, Red?velC'lpment Agency, and HOUSIng Auth0rlty and has recently establIshed an Industr~al Development Authority. As a charter CIty, Santa MonIca received In 1985 $4.8 millIon ln ~ndustrlal deve10pment b0nd allC'lcation frC'lm the State WhiCh was dedIcated to local proJects. Thp City's ParkIng AuthorIty currently operates 3795 spaces CC'lnSlstlng of surface (1046 spaces) and structured (2749 spaces) parkIng faCll~tles prImarIly lC'lcated ln the CIty'S d('lwnt0wn C0re. ThE' Santa MonIca Redevelopment Agency opf'ratE"S two proJPct areas Santa MonIca Place, a hIghly successful 550,000 square foot, fashlOn-C'lrlented regl()nal snopplng center and - 5 - . . Ocean Par~, a 1000 un~t m~xQd ~ncome rpsldpntlal dpvelopmenc W~ th panoram~c Vlews nf Santa Monlca Bay landscaped rpcfPatlnnal park and opach Clty'S Houslng Author1ty 1S a Ipgal pnt~ty npprate lts actlvlt~es under cnntract wlth Angples H0us~ng Auth0rlty. and 13 acrps ('If facillt~PS. The- tnat cnnt~nups to thp County of Los 3. Municipal Operations and Utilities Santa Monlca's self-supporting operatlnns lnclude the Munlclpal Alrport, bus IlnE'>, watE'>r and sewpr serv lCE'>. The Santa Monlca Alrp0rt ~s a 215 acre general aVlatlnn alrport and ~s a basE' f0f 550 a~rcraft. ThE' C11:y rE'CE'lVE'S revenues from leased tle-down spaces, flxed-basp operatof ground leases, and commlSSlClns on fuel sold at the Al.rpClrt WhlCh J01ntly help make the AnpClrt a pfoflt maklng venture. Thp Santa Mon1ca Mun1c1pal Bus Llnes prnv1des E'xcellpnt C('lverage wlth a bus routp locat",d wlthin a quartPf mlle of almost pvery resldent. rhe bus system's annual fldpfShlP has steadlly lncreased to 13.8 mllllon revenue passengprs 1n 1984. Abnut 45% of the Clty'S water needs are suppl1ed by its own wells, stored ln over 16 acres Clf well flelds and reserV01r grounds on C1ty-owned pr0perty lns1de and outslde the Clty Ilm1ts. The remaln1ng 55% ('If the water 1S purchased frnrn the Metropol1tan Water D1strlct of Southern Callforn1a (MWD). The Clty lS a member age-ncy of MWD and lS ent1tled to a preferent1al request to purchasp watpr at spec1f1E'd rates and quant1ty. The Clty'S modern, automated systE'm dellvers ('Ivpr 15 m~ll10n gallons ppr day to 15,500 water accounts, at a cost 0f less than 22 cents per t0n. Spwage treatment ~s pr0vlded f0r the Clty by thp L0s Angelps CClunty SanltatlCln D1strlct's Hyperlon Plant, locatpd 1n El Segundo. One sewer Ilf t plant ~s 10ca tpd W1 th1n thp Cl ty boundar lE'S. Sewage treatmpnt lS self-support1ng frClm sewer treatmpnt fees based Cln the amount of watpr c0nsumed by the custC\mE'r. S('Iuthern Cal1f0rn1a Gas Company lS the suppllef 0f natural gas to tnp C~ty and plectrlclty lS pr0v1ded by the S0uthern CallfC\rn1a Ed1son Company. General TE'leph0ne Company provldes telephClne serVlCE'. 4. Community Amenitl~s and Servicps Thp C1CY 0f Santa Monlca enJ0Ys the bene-flts ('If 1ts locat~0n along thp Paclf lC OCE'an and prov ldes a w~de range and hlgh dE'greE' of c0mmunlty SerV1CE>S. The C1ty currently pnJoys over 170 acrps nf parks and publ1C open space 1n addlt10n to appr0X lmately three mlles of br0ad sandy bpaches wlth nearby parklng, C0nceSS1ons, and support fac1lltlPS. L0catpd at thp foot 0f Colorado Boulevard lS the Santa Mon~ca P1E>r, an -6 - . . hlst0rlC landmark bUllt at thE' turn 0f thE' CE'ntury. T0day the P1E'r c0ntalnS varlOUS restaurants, amusement, and ,E'tall E'scabllshments. Its rE'st0rat10n and rE'C0nstructlon lS the 00]ect 0f a multl-ml1110n dollar pr0]ect, the flrst phase of WhlCh lS now underway. A c0rnerst0ne 0f thE' P1E'r lS ltS faffi0us 190Q-vlntage car0usE'1 WhlCn has beE'n c0ffiplE'tely rE'st0red. Educat10nal facllltles In th€" Clty lncludE' nlne E'lE'ffientary sch001s, tW0 ]Un10r hlgh sch001s, 0nE' hlgh sch001, and Santa M0nlca C0mmunlty C011egE'. Alt0gE'ther, tn€" Santa M0nlca-Mallbu Dnlfled Sch001 Dlstrlct r€"malns 0nE' 0f thE' bE'st publlC sch001 systE'ms In L0S Angeles C0unty. The Clty lS cE'ntrally 10cated Wl th C0nvenv'nt access to thE' nat10nally rec0gnlzed Onlverslty 0f Callf0rnla at L0S AngE'lE's, thE' Unlverslty 0f S0uthern Ca11f0rn1a, Pepperdlne Unlverslty, and L0Y01a Marym0unt UnlVE'rslty. Thp Cl ty has a maln publlC Ilbrary and thrpp ne1ghb0rh00d branchE's, 0VE'r 50 churches, tW0 nE'wspapE'rs, tW0 rac10 sta t10ns, a cable t€"lE'v lS10n SYSt€"ffi, and 1 7 bank br anche s. In addlt10n, the Clty E'n]0Ys a rpgH'nal rpputat10n f(\r ltS quallty restaurants and pedestrlan-0rlE'ntE'd sh0pplng strE'ets. ReSldpnt survE'ys c0nductE'd by the Clty dE'ffi<"lnstrate a h1gh level ~f useage and regard f0r munlclpal facllltles 11kp thp publlC Ilbrary, Pler, and C1V1C Centpr. Clty res1dents rate veri p0SltlVely the pr0vls10n 0f p<"lllCP and baS1C Clty SerV1CE'S (e.g. strE'et and park malntpnance, garbagE' plck-up and sld~walk and strpet sweeplng) and thE' gpn~ral qua1lty of Ilfe avallablE' In the Clty. Resld~nt prefE>rpncE>s f0r add 1 t10na1 lmprovements lncludE' an lncr~as~d supply 0f affordable h0uslng, parks, and publlC open spacE'. Appr0J( lmately 25% of h0use.h01ds wlth chlldren f'oXPTPSS a nppd f0T addItIonal daycaTP sprVlces. Survpys of arpa off lce w(\rkers lod lcate a slffillar demand for lncreaseo daycare facllltl~s near thelr place 0f work. Resldents als{'l state a preference fnr new deve10pmE'nt that does not dptract fr0m the surroundlng enVlr(\nm~nt, but d0F's pr0vlde var10US c0mmunlty senllng bf'neflts such as creatlng new f'ffip10ymf'nt and buslness 0pp0rtunltles and lncrpased revenues t{'l the Clty. 5. Population Characteristics In 1980, Santa M0nlca had a populat10n of 88,314 pe0ple WhiCh was a 2.8% lncrease from 1970, c0mparF'd tn a 6.3% p0pulat10n gr0wth rat.p f0r L0S Ange1f's C0unty durlng the same perlnd. Durlng the next 15 years, Santa M0nlca's populatl('ln IS exppcted t(\ increase by {'Inly 4% as c(\mparpd to the County's c('lntlnued 6% gr0wth rate, due to thE' Clty'S "bUllt-0ut" nature. - 7 - . . Santa Mnn~ca has a d~verse populat~0n 1n terms of ethn~c~ty, race, and age dlstr1but~on. In 1980, there wprQ 58,435 whIte, nnn-Hlspanlc resldents 1n the CIty or about 78% 0f the t0tal p0pulat~("\n. Th@ largf'st m1n0r~ ty group was H~spanIc, cnmp0s~ng appro1C Imately 13% of the p0pulat~0n. The mE>d~an age 0f the pnpulat~nn ~n 1980 was 34.3 years, a large decrease fr0m 37.9 years In 1970. ThlS decreasp was n("\t due to a s~gn~f~cant reduct~on ~n thE> elderly p0pulat~0n; ~nstead, the pnpulatH>n became m0re Y0uthful because Y0ung adults were replaclng mlddle age adults. Hlst0r1cally, per cap~ta InC0mes 0f Santa M0n~ca reSIdents havf' been g@neral1y hIgher than ~nC0mes f0r L0S Angel@s County resldents. The CIty'S h0usehold ~ncomes have ~ncreased fastpr than hr>usehr>ld ~nC0mes fr>r thE' Cr>unty. In 1980, the pe-r cap~ ta InC0mE' for Santa Monlca rE'sldE'nts was $11,126 wh~ch was 33% greatE'r than the $8,380 ppr capIta lnC0me f0r Los Angeles County resldpnts. By 1983, the estImated per caplta lncr>mp f0r Santa M0nlca Increas€'d to $14,792 or 34% greatE"r than the per caplta Income- for thE' County ($11,049). In 1980, thE' medlan h(luseh(lld lnCOme f0r Santa MonIca was $16,604, a 130% lncre-ase Slnce- 1970. Durlng the same perlod, me-dlan hOUSE"hold lncome for Los Angeles County Increased by 111% to $17,826. By 198:', the E'stlmated medlan Income for Santa M0nlca h0usehr>lds Increased tr> $22,074, a 33% lnCreaSE" 0ver the threE' year pl"rlr>d Slncp 1980. The est~mated medlan lnC0me f0r L0s Angeles C0unty lncreaspd by 26% over the same ppr~od to $22,482. Santa M0nlca's populat10n lS well educated. In 1980, the medlan number 0f sch001 years c0mpleted by Santa Monlca rpSldpnts 25 years and 01der was 13 years compared to 12.7 Yl"ars c0untywlde. Of Santa Monlca adults 25 and 01der, 57.9% had some c011ege E"dUcatlon, compared to 34.9% 0f the countywlde pr>pulat10n. Appr0x~mately 31% of Santa Mr>nlca rpsldents 18 to 34 years 01d In 1980 werp atti"nd Lng c(lllegp 1n 1980. B. THE LOCAL AND REGIONAL ECONOMY 1. General DeSCT~ptir>n Santa M(lnlCa IS a submarket of the larger westprn Los Angples C0unty eC0n0my, WhlCh ~ncludes Beverly Hl11s, Century Clty, Westw0od, Brentw0od, Marlna Del RE'Y, and WFSt Los Angeles. Thesf" communl tlE'S Pl ther equal or elt CE'f'd thf' lnC0ml" characterlstlcs of Santa Mr>nlca and arp gf"nerally regarded as vf"ry deslrable arE'as to Ilve and wr>rk. iilthln a SlX mlle radlus of the CltYI there lS a rps~dent pr>pu1atlr>n 0f approxlmately 435,000 persons wlth an est~matE'd averagp h0uspn01d lncomp 0f $38,699. 'rhE' Santa M0n~ca E"cC\nomy supports a daytlme p0pu1atlon of apprr>x lmately 141,159 pP0plE' 0f wh~ch approlt lmately 17,148 are reSIdents 0f the C~ ty. Appr0x Imati"ly 37,156 peoplt=> are - __d _- . . nC'n-rE>sldent E>mplC'YE>f"s whC' travE>l lnt0 thp. Cl ty 0n a dally basls. Thp rpmalnlng 47,197 pers00s ar? estlmatpd t('l bp thp avprage number {'If dally sh0ppers and VIslt0rs to tnp CILY. rhe f"sclmated t0tal nu;nbpr ('If ]{'IOS 10 the Cl ty 10 1985 lS psclmated t('l be 58,471. M0St Santa Manlca resldents w0rk 1n the "whlte-c011ar" 1ndustr H'S 0f pr0fess10nal, bUSiness, and pers0nal serVices; finance, lnsurancp, and real estate IndustrIes; and rptall trade. T0gether, th@se lndustrlE's emp10Y 69% 0f the Santa M001ca w0rkf0rce. The ffi0St C0mman emp10yer lS the Pr0fe$S10nal and Related Services industry, ln WhlCh 28% percent 0f Santa M0nlca resldents w0rk. Retall trade lS the sec00d m0st represented loduscry, emp10Ylng 14.5% af the W(lrklng p(llpulatlan. Manufacturing emp10Ys a slgnlflcant share 0f th@ l0cal w0rkf0rce, apprC1x lmately 14%. AccC1rdlng tC1 the City'S Genpral Plan, slgnlflcant gr0wth is expected tC1 0ccur f0r each (If these area thr0ugh thE' year 2000, ei: cept fC1r manufaturlng wnlch lS expectpd tn dpcrease slgnlflcantly (35%). Santa M0nlca 1$ a cent@r 0f electr0nlC, englneerlng, research and allied lndustrles. Am0ng lts largest manufacturing emplayers are G&H Techn0lagy (electrC1nlC assembly), Paper Mate (pens), Amerlcan Appllance (water heaters), Vlvltar (phC1t0graphlc equlpment), and L0uver Drape (vertlcal bllnds). St. Jnhn f s H0Spl tal, Santa M0nlca H0Spl tal, the Rand C0rp0rat10n (research), Gf"neral TE>leph0ne C0mpany (C0mmunlcat10ns) and Pennc0rp Flnanclal (lnSurance) are the largest n(ln-manufacturlng emp10yers In Santa M0nlca. 2. Retail Trade In 1982, then" were appr0x lmatE'ly 5,484 t 000 squarp feet Clf retall space 1n the Clty C1f Santa M0nlca. Of thlS amaunt, the maJorlty was C0ncentratpd ln the Downt0wn area (1,874,000) and a10ng ~'hlshlrf> B0ulevard and Santa 110n1ca B0ulevard (1,101,000). Santa M0nlca Place, a 550,000 square f00t rE'g10nal sh0pplng centpr lClcated ln thE' Clty'S Dnwntnwn, c0ntalns the largest C0ncentrat10n 0f retall space and currently supp0rts 163 spf>Clal ty st0res and 283,250 square feec (If anch0r department st0res -- Br0adway and Rablnson's. The City'S General Plan estimates a demand f0r an add1t10nal 1,655,000 square fpet of rE'tall space Clty-wlde by the year 2000. M(lst 0f thl S gr0wth (56% ) 15 prn] ected to 0ccur ln the Clty'S D0wnt0wn arf>a In C0n]Unct10n wlth the Clty'S recent eff0rts tn revltallze the Thlrd Stref>t Mall area. The Clty had t0tal tax able n'tall saIl'S ln 1932 0f $709,682,000; averaglng appr0xlmately $129 per square fnnt nf ava1lable rptall space. Santa M0nlca Place averagpd S250 per gr0ss leasable squarp feet durlng thlS same perlad. In 1984, the Clty'S tCltal taxable sales lncreased 23% to S870,550,000. Aut0 dealers prC'lvldpd the largpst S0urcp 0f taxable transact10ns In the Clty (28%) f0110wpd by Genpral - 9 - . . MercnanOlse and Apparel Establlshments (17%). (19% ) and Eatlog and Dn.nklng 3. Commercial Office As nf December 1984, there were nearly 23 mlll1nn square feet nf c('lmpetl t1ve ('Iff lce spacE' In thE' Cl ty ('If Santa M('II'!lca and the surrnundlng Lns Angeles market, 85% 0f walch was nccupled. As nf that date, Santa Mnnlca cnntalneo 3,816,000 square feet wlth a CltY-Wldp ('Iccupancy rate 0f 88%. Thp maJ0rlty of the offlCE' spacp 1S 10cated ln the Clty'S D0wnC0wn area (38.7%) and at tne Santa M0nlca Buslnesss Park (33.7%), a planned development 10cateo adJacent t('l the C1ty'S munlc1pal alrpnrt. Frnm 1970 tn 1983, the west L0S Angeles market abs0rbed an average of 967,000 square feet ('If offlC? space per year. Santa Monlca absnrbed apprnx lmately 0ne-quarter "f thp spac? avallable (221,000 sqllare feet per year) durlng th1S per10d. Thp average abs0rptl(1n rate lncreaspd dur1ng thp last five years "f the per10d to 1,114,000 square feet per year. Santa Mnnlca's 0ff1ce market absorbed apprnxlmately OnE'-thlrd 0f th1S lnVE'ntory (423,000 squar!" feet ppr year). Rental ratE'S 10 Santa t10n1ca In 1984 ranged frnm ~15 tn $30 per squarp f0nt. per year. 4. Industrial and &esearch & Development Facilities In recent years, tradlt10nal lndustrlal development ln the west L0S Angeles area has declloed In rE'spnnse to 1ncreas1ng land vallles. ThlS lS a reglonal trend wlth much nf the demand fnr new manufacturlng space belng drawn lnt0 0utlY1ng areas such as Ventura, R1versldp, and San Bernardln0 C011nt1Ps wnpre land prlces are lower. Wlth1n the west Lns Angelps arpa, lnclud1ng Santa M0n1ca, a recycl1ng prncpss has taken place In Wh1Ch m0re 1ntenslVP types of uses, such as nff1cP develClpment Clr "h1gh tech" research and dpvelnpment facl1lt1es, WhlCh an:' capable nf supp0rtlng hlgher land values, havp dlsplaced Clldpr 1ndustrlal uses. As a result, thpre has bpen Ilpry 11mlted maJClr new manufactur1ng spacp bU1lt nn the Westslde. Most of Santa Mrmlca' s 1ndllstr1al act1v1ty lS c0ncentrated a10ng thp Olymp1c B0u1pvard Cnrrld0T. In 1975, the Clty had apprClXlmately 414 acres 1n lndustrlal uSP, dPcllnlng ln 1982 tCl 374 acres. M0st pf the deve1nppd square footage ln th1S area sh1fted frnm trad1t:1Clnal manufactur1ng (e.g. fln1shed pr0ducts, wh01esalp, etc) tCl "h1gh tech" and Clfflee usps. The result:s nf a 1985 survpy nf 1ndustrlal prnJects w1thln tne Santa M0nlca, Marlna Del Rey and Fox Hll1s/Clllvpr C1ty arf'as lndlcated that vacancy levels arp currently qUltE' l0w In Santa M0n1ca and Culver Clty, (less than 5%) but are h1ghpr ln Marlna Del Rey (15%). Rental rates f('lr lndustrlal and research & dpvelClpment space ln Santa M0nlca range - 10 - . . between ;;0.27 to $1.25 per squarp f00t per ffi0ntn, trlple npt. liarph0uspjdlstr lbution spacp rents vary fr0m SO .19 to $1.00 per square f00t per ffionth, trlple net. 5. B~tpls TherE' are appr0x lmately 6000 first class hotPl rooms ln the western Los Angeles market, 0f WhlCh appr0Ximatply 1,000 rooms are located ln Santa Monlca. Santa M0nica hotels aVE"'raged an 0ccupancy rate of almost 78% in 1983 wlth an aVE'rage COmbinE'd slngle-d0uble rack ratE'" of $75.53. All of thE"'se h0tE"'ls completed maJ0r refurblshments to thE"'lr faCll1tiE"'S by the end of 1984 and had increased their rates by an average of 12% Slnce 1983. Corporate and bUSineSS travelers account for the largE"'st sharE' (44%) 0f the Santa Monica h0tE"'1 market dE'mand. These guests are primarlly oriented to 10cal c0mpanies such as System DE'velopment Corp0ration and the Rand C0rporatlon. Based 0n dem0graphic and eC0n0miC pr0J E"'ct10ns for the period 1980-2000, lt 1S estlmated that the City Will have a demand for approx imately 1,000 add1t10na1 first class hotel rooms. At thlS tlme, a new 344 first class, beachfr0nt h0tel has received all development approvals and 15 scheduled to begin construction at 1700 Ocean Avenue withln the next SiX months. ThiS faC111 ty Will be 0perated by Hyatt H0tels, and Will bf" 0r1ented to flrst class C0rp0rate guests and t0urlsts. - 11 - . . III. THE PROJECT SITE The proJec-c s~te presents a un~que development opportunl ty for the west Los Angeles reg~on ln that lt lS one of the largest cont~nguous parcels avallable for new development. Characteristlcs of the s~te and surround~ng area provide both opportun~t~es and challenges to developlng the proper-cy. A. General Description The proJec"C s~te conta~ns approxlmately 39 acres of land located at the southeast corner of the C~ty. The land, WhlCh lles on the Santa Mon~ca Munlclpal Alrport, was released from Airport use age for use compatlble w~th A~rport operat~ons. The s~te lS bounded by the Alrport on the nor th and west slde, by a slngle famlly residentlal nelghborhood ln the Clty of Los Angeles on the south, ana by Bundy Drlve ln the Clty of Los Angeles on the east. The proJect slte ~s owned by the Clty of Santa Monlca and currently contalns facllities related to Alrport operat~ons such as hangers, alrcraft tledown spaces, and Alrport offlce space. 1. Project Site Topography rhe proJect site lS generally 10' to 20' below the Alrport runway level. A central portlon of the project slte currently used for a~rcraft tledowns is almost 5 r to 10 I below tne surround~ng proJect Sl te. The Sl te gently slopes from east to west w1th elevations that range from approxlmately 170 I at Bundy Drlve on the east to about 120' at ltS western end. Except at the eastern end of the s~te wh~ch slopes down from Bundy Dr1ve at a 5% to 8% slope, most of the proJect slte lS relatlvely level with a slope of approxlmately 1% from east to west. 2. Surrounding Land Uses The proJect s~te lS adJacent to an eX.l.tlng slngle family res1dential nelghborhood ln the Clty of Los Angeles d~rectly to the south, and a s~ngle famlly resldent~al nelghborhood to the east across Bundy Drlve also ln the C~ty of Los Angeles. The Santa Mon~ca Airport 15 located directly north and west of the proJect s~te. A~rport facllitles adJacent to the s~te w~ll lnclude the new Airport AdmlnistratLon bu~ldlng and Flxed Base Oprator bu~ld~ng, a surface park~ng lot for A~rport users, a transient a~rcraft parking area, and an a~rcraft tledown area. To the north of the A1rport lS the Sant:a Monlca Business Park located along Ocean Park Boulevard. The buslness park conta~ns approximately 1,000,000 square feet of commerclal office space and assoc~ated restaurant, bank, and health club uses. 3. Traffic Circulatlon and Public Transit - 12 - . . Access to the proJect s~te ~s prov~ded by Bundy Dr~ve wn~ch forms the eastern end of toe property. Bundy Dr~ve prov~des d~rec~ access to tne Santa Mon~ca Freeway (I-IO) located approx~mately 3/4ths of a m~le nortn of the proJect s~te. In 1985, there were between 39,000 and 41,000 average da~ly tr~ps on Bundy Dr~ve adJacent to the proJect s~te and 38,000 average da~ly trips on Bundy Drive to the north of the proJect site near tne Santa Monica Freeway. Today all maJor ~ntersections on Bundy Drive operate at between 81% and 84% of their des~gn capacity with an afternoon peak hour level of serVice of "0". Intersecting Bundy Drlve north of the proJect s~te area are National Boulevard (wh~cn meets Bundy at a "T" intersect~on ~rnrned~ately north of the proJect site] wh~ch prov~des surface street access from the east and Ocean Park Boulevard wh~ch provides surface street access from Santa Monica to the west and Los Angeles to the east. Natlonal Boulevard carr~ed 16,000 average daily tr~ps in 1985 and Ocean Park Boulevard carrled between 14,000 and 26,000 average dally trlps. Alrport Avenue currently provides access through the proJect area. In 1985, thlS two lane road carr led 4,800 average dally 1:.rlpS on lts eastern portlon to Bundy Drive and 2,500 average dally trlps on ltS western portlon to the Walgrove Avenue/ 23rd Street ~ntersect~on. ThlS western port~on of Alrport Avenue wlll be redes~gned to provide only emergency and l~ml ted access to the pro] ect Sl te in order to prevent s~gnlflcant traff~c lntruslons lnto local res~dentlal ne~ghbornoods to the west. All pr~mary access to the slte mUSi: be provlded from Bundy Drive. As redeslgned, A~rport Avenue wlll provide an access easement to the A~rport admlnlstration area. Santa Monlca Munlclpal Bus Llne routes to tne proJect site are located on Ocean Park Boulevard and on Bundy Drlve. 4. History of Santa Monica Airport The Santa Monica Munlc~pal Airport ~s operatlng municipal airport ln Los Alrport has been lnvolved recently ln to make Alrport operatlons more surroundlng communlty. the oldest contlnuously Angeles County. The a maJor plannlng effort compatlble with the The Anport was establ~shed ~n 1919 when the C~ty leased a portlon of a barley field for aVlat~on uses. In 1926, the Douglas Alrcraft Company bu~lt an aircraft manufacturlng plant north of the Auport (currently occupied by the Santa Monlca Buslness Park) and ln the late 1950's, after shlftlng lts manufaCi:Urlng emphasis from propellor to Jet alrcraft, moved thlS operation to Long Beach because the Santa Monlca A~rport runway could not accommodate Jet aircraft. The Santa Monlca faclllty was used for research and development of m~sslle productlon. In the late 1940's and early 1950's, the - 13 - . . A~rport became a base for slgn~f1Cant general aV1atlon actlvltl.es. The most recent Al.rport plannl.ng efforts began 1n 1962 when the Douglas Company, the largest business In tne area, proposed that 140 acres of resldent1a1 property to the norch and west of the Alrport be condemned 1n order to construct lts corporate headquarters and to expand its parKlng fac1litles. A c1tl.Zen outcry erupted 1n the Sunset Park ne~ghborhood wltn residents demanding that the Cl.ty close the Airport rather than allow tne nelghbOl::nood to be destroyed. The Cl.ty determlned that the Airport could not be closed due to the Clty'S contractual obllgatl.Ons wltn the Federal Government regard1ng operat~on of the Alrport. The Douglas Company reJected an alternatlve Cl.ty proposal for expanslon and completely closed l.ts Santa Mon1ca facl.llty In 1972. Over the years, noise from alrcraft uSlng Santa Monica Alrport grew and the communlty became more annoyed with tnls source of nOlse. Proposals to close or restrlct the operatlon of the AlrpOrt led to a serles of court challenges by Al.rport users. In 1982 the City successfully negotlated varl.OUS plannlng and legal settlements to resolve these conflicts. B. APPLICABLE DEVELOPMENT AND PLANNING POLICIES 1. Federal Aviation Administration Agreement In November 1983, the Cl. ty Council adopted Resolutlon 6814 (CCS), approvlng an Alrport Layout Plan and Noise Mltlgatlon Program for Santa Mon~ca Airport. The Plan establ1shed nOlse ml.tigatlon standards and recommended that Airport operatl.ons and related busl.nesses be consoll.dated and relocated to the north side of the al.rfIeld, thus resultlng in approxlmately 39 acres of resl.dual alrport property -- the prOJect sIte -- deemed no longer needed for: aVIatl.On purposes. The Layout Plan recommended that the Clty proceed wl.th the development of the res1dual land In a manner compatlble with on-going al.rport operatl.ons. In January 1984, the Cl.ty Councl.l authorl.zed tne executIon of the Al.rport Master Agreement [Contract No. 4069(CCS)] wItn the Federal AV1atlon AdmInl.stratl.on (FAA). This Agreement obllgates the CJ.ty to operate the AHport untl.l the year 2015. The Master Agreement calls for the relocatIon of fl.xed-base operators (FBO's) to the north slde of the runway and speclfl.es varl.OUS alrport-related l.mprovements l.ncludlng new aIrport l~ghting, taxIway and runway resurfacIng, and nOl.se walls. The Master Agreement also imposes certal.n restrlctIons on the use of the proJect sIte. All development must be "alrport compatl.ble" and must adhere to bUl.ldl.ng hel.gnt limltatlons. The Agreement prevents the sale of any portIon of the proJect slte, requ~rIng lnstead that the Clty negotlate a long-term ground lease WJ. th future users of the site. - 14 - . . The Master Agreement calls for che contlnued operatlOn of the Alrport dur lng any development aCClvltles. As a result, no exisclng FEG's may be vacated from the proJecc slte untll new facllltles on the north Slde are constructed and made avallable for occupancy. ThlS precludes the development of tne proJect slte untll new airport facll1tles and related alrport improvements are completed. Efforts are underway to ensure that the proJect slte wlll be available to meet tl'>e development scnedule outllned ln ChlS Request for Proposals (RFP). Alrport lmprovements and reconflgurat1on w1ll be compleced ln two phases. phase 1 wlll lnclude the Airport facillcles lmprovements such as resurfaclng the runway and taxlways and lnstallIng new lightlng. This phase will beg in ln Spring 1986 and lS expected to be completed by December 1987. Phase 2 wlll include the deslgn and Base Operator (FSO) fac1l1tles Constructlon of these facllitles Summer 1986 and should be completed construction nor th of lS expected by December of new Flxed the runway. to being ln 1987. The C1ty recogn1zes ltS obl1gat1ons under var lOUS leases it has made of A1rport land, and the City wlll act consistently w1th ltS obllgatlons under tnose leases in developlng the proJect slte. 2. Appl~cable Planning policies In add1tlon to the provlsions conta1ned ln the Master Agreement between the C1ty of Santa Monlca and the Federal AVlatlon Adm1n1stratlon, development of the proJect slte must comply w1th the CIty I S General Plan. Development must also comply wlth the Clty's ZonIng Code, other appllcable provls1ons of the Santa MonIca Mun1clpal Code, and w1th the Clty'S GU1dellnes lmplementlng the Callfornla Envlronmental Quallty Act (CEQA). The Clty'S Land Use Element states only that development of the proJect slte area be 1n accordance w1th the concract between the Clty and Federal Aviat10n Admlnistratlon. The Element does not contaln speciflc height, bulk, or other property development standards S1nce they would be governed by the City's Master Agreement wltn the FAA and w111 be developed and refined ln the context of proposals submltted 1n response to th1S RFP. The proJect slte lS currently zoned M2 (General Industrlal). The Clty wlll conSlder changing the zon1ng classlflcatlon of property to SUlt the proJect selected for the Slte. - 15 - . . IV. DEVELOPMENT PROPOSAL A. Development Goal and Objectives The f~llowlng goal and 0b)ectlves f0r the proJect are pr0vlded to ass 1St dE>vE>10pE>r5 ln preparlng resp~nses t~ thlS RFP that wlll rE>prE>sent the best use 0f the proJect Slt€'. The development g0al and Ob]ectlves express thf' Clty'S deslres f0r the use of the pr0]f>ct 51 te and represent a C0mmunl ty C0nSf>nSUS regardlng thlS valuable publlC asset. ThE' g0al and 0b]f'ctlves wlll be used to help evaluate each deve10pment pr~p~sal and to selE>ct the pr0]ect f0r the pr0perty. 1. Goal Transform lnnov at1 VP, E"nV1r0nment ernp10ymf'nt, pr0Jf'ct Sltp an undf>rut111ZPQ publ1C land asspt lnt~ an apsthf't1cally super10r, h1gh qual1ty w0rk1ng that pr0duces slgn1f1cant new revenue, bus1ness opp0rtunlty and rplatE>d bE>nef1ts for users, and the Clty 1n general. 2. Objectives a) To crE>atp a pr0]ect that is f1nanclally feaslble and that pr0v1des a slgnlf1cant revenue stream to the C1ty. b) To dpvelop a pr0]ect that m1nlm1ZPS slgnlf1cant advprsp 1mpacts 0n tne surr0undlng area. c) r0 des1gn a proJect w1th bUlld1ngs and publlC open spaces that are arch1tecturally super10r 1n deslgn and d€'ta1l1ng, spnsltlve to the scale and charactpr of the area and the C1ty, and aesthet1cally harmonl~us. d) T0 dE>ve10p a pr0]ect that meets the needs of t0day's markpt and the futurE> nE>eds 0f lts many usprs. e) To E>stabllsh a c~nstruct1on pnaslng schedule rpsult 1n a pr0]Pct that wlll prorn0te the c0mplet10n of the pr0JPct and tlmely dellvery and other pr~Ject benef1ts. that w111 successful of revenue f) To ensure that thE> project 1S wpll malnta1ned 0ver tlme and w1ll rema1n a pOSl tl ve asset to the C1 ty Clnd the deve10per. - 16 - . . B. D~velopm@nt Standards Dpve>lnpme>nt of thp proJect SLte> must respond to thp genpral dE>velopment 0pportunLtLes and constraLnts, and thE' cpntral goal and Ob]ectLVE'S outlLned ab0ve. In addltLon, the fol10wLng property development standards and subJects must be addrt'>ssed. Unless specIfIcally stated, detaIled resp0nsps to standards WIll only be reqUIred for phase two of the developer selectIon process. Proposals submItted for phase one of the process must, h0wever, IndIcate In general tprms how each standard or t0pl.C WIll be addressed. 1. Land Us~s The pro]E>ct SItE> IS currently z0ned M2 (General IndustrIal Dl.strl.ct), the CIty'S mClst "InclUSIve" ZClnl.ng dIstrIct which permLts m0st commercIal and Industrial uses. The Land Use Element of the> Genpral Plan C0ntal.nS nn de>flne>d land use standards for thLs SIte 0ther than that uses be In acc0rdance WIth the Master Agreement WIth the FAA. The Master Agreement reqUIres that uses be "al.rp0rt cClmpatLble" whl.ch IS generally defLned In terms 0f n0lse measurement standard callpd the CommunIty N0lse EqUIvalent Lpvel (CNEL). ThIS standard LS the dally n01se level, averaged 0ver 24 h0urs, and welghted m0re heaVIly durIng pvpnlng and nIght tlmp h0urs to account for the lower tolerance of persons to nClLse durIng th0se hours. CNEL measurements are plotted as nOIse contours around an aIrport. ThE' AlTport reSIdual land falls WIthIn both the 55-60 CNEL contour and the 60-65 CNEL contour. The chart below depIcts thE' rpc0mmended land use crLte>rla for n0lse c0mpatlblllty near general aVIatIon alrpClrts In the nCllSler 60-65 CNEL range. Typp of Land Use ReSldpntlal/ LCld 9 lng S CNEL RanlJe 60-65 " Dlsc"uragp new SIngle famIly dwellJ.ngs " ProhlbJ.t MobJ.le Homes 0 New hotels and motels may be pe rml t ted o SIgnIfIcant p0tentlal ann('lyanc... ex lStS for PUblIC/ InstltutJ.onal " MClSt publIC use faCIlItIes and lnstltutlons reqUIre a qUIet lnterlClr enVl.rnnment o Such use s dLscouraged alternatIve> sh('luld n('lrmally unless l('lCatlon can b... no be - 17 - . . In addltlon, tn~ fol10Wlog USPS ar~ deSlred provlded they arE' lntendpd prlmarlly for tn~ conv~nlPncp of workers 10catQd on the Sl te : o Convenlence retall and personal serVlces o EatIng and drInklng establlshments o Food and beverage retall sales o Flnanclal, lnsurance and real estate serVlces PERMITTED USES o Other uses that are compatlble wlth the Alrport. UNACCEPTABLE USES The followlng uses are not acceptable because they are lncompatlbl~ wlth Clty-wlde land use and trafflc clrculatlon obJectlves, pose potentla1 securlty problems due to proxlmlty of Santa Monlca Alrport and nelghborlng resldentlal areas, or requlre greater pub11C access than lS avallab1e for the Slte duE" to ItS relatlve lsolatl{'ln fr{'lm other areas ('\f the Cl ty. Some uses are also clearly IncompatIb1e WIth FAA nOlse standards. Pr0posals WhlCh lnclude any (If these uses wlll requlre substantlal Justlflcatlon: (l Medlcal (lfflces and cllnlcs o Consumer repalr serVlces (e.g. app1lance repaIr, apparel repaIr) (l Specla1ty retall (e.g. arts and crafts, flowers and plants o General retall (e.g. department stores, furnIture st(lres) o Slng1e famIly resldentIa1 o MultIple famIly reSIdentIal o MobIle h(lme park (l Moteljh(ltels (l Gr{'lup reSIdentIal (e.g. board and care homes) (l Hospltal " Assemoly uses (e.g. churches, synag0gUE'S, elementary and sec(lndary schools, audlt('\rlums) - 19 - . . found; ~nter~or sound reduct~on of 25db should be accompl~shed Commerc~al/Off~ce o Sat~sfactory, wlth llttle nOlSP ~mpact and requ~rlng no spec~al nOlse lnsulatlon requlrements for new construct~on Industr lal o Satlsfactory, wltn l~ttle no~se ~mpact, and requ~r~n9 no spec~al no~se ~nsulat~on requ~rements for new CC'lnstruct~on Recreatlon/ Open Space o Satlsfact0ry o Outd00r mUS1C amph~theatres perm~tted shells should not and be o Nature areas fC'lr w1ldl1fe and Z0C'lS sh0uld not be perm~tted Santa M0n1ca res1dents have been very senS1 tlve to n01se 1n the past. Many 0f the areas subJect to frequent nOlse compla~nts have CNEL levels below 50 dec~bels Wh1Ch 1S generally cons~dered to be "qu~et suburban" by natlonal nOlse compatlbll~ty standards. Further, th~s local sl;lns~t~v~ty ~s well knC'lwn to the Federal AV1at10n Admlnlstrat~on, WhlCh wlll be revlewlng the C~ty I S dpvelopmpnt plans fC'lr the prC'lJE'ct Sl.te. As a rE>sult, SClme land uses that may tE>chn~cally be "a~rpClrt c0mpatlblE''' sh0uld n0t bE' enc"uraged to dE'velop on the prC'lJect Slte. Prellmlnary analys~s by thE" C~ ty, 9C'l0d land USE" practl.ce and current market dynam~cs ~nd~cate that the follClwlng class~f~cat~on of encouraged, acceptable and unacceptable land use cate9"r~es should gu~de development C'lf the proJPct SltP. DESIRED USES The fol10w~ng usps are des~red because they are cClmpat~ble", and are C0nslstent wlth Clty-wlde land trafflc clrculatlon ClbJectlves: "a~rp(>rt. use and ('I Re5parch and dpvpl0pment off~cP5 and labClrat0rles ~nclud~ng supp0rt assembly and l~ght manufactur~ng facllltles o Genpral offlCPS " Small buslness lncubat0r faCllltlPs pr09rams tCl ass~st start-up c0mpan~es parly stagps "f buslnpss deve10pment. and Supp0rt dur~ng the - 18 - . . o Gasolln~ sal~s o Sp~ctator sports and ~nt~rtaInmpnt faCIlItIes (e.g. mOVI~ and Ipgltlmate theatprs, stadIums) o Heavy lndustrlal uses 2. Parcelizat~on The CIty WIll c('Insldl"r dt>vpl('lpmpnt pr('lposals WhICh C('Intaln multlple devel('lpmt>nt SItes ('Ir parcels that are based ('In a pnaslng plan for the development. Prop('lsed parc~l dlvlslons should be clearly Iodlcatpd 10 resp('lnse t('l thIS RFP. Dev€'l('lpment parcel deslgnatl('ln should be supp('lrtf'>d by apprC'lpr1.ate mark~t analYSIS WhICh assures deve10pment p('ltentlal for all parcels. 3. Building Bulk The max lmum Floor Arpa Ratl.o (the ratl.('I of gross bUlldl.ng arpa to slte area) for the entIre proJect slte must n('lt exceed 0.75, or approxlmatply 1,275,000 squarp feet. No lntersectlon In the vlclnlty ('If the proJect SIte may exc~ed a v('Ilume-to-capaclty ratIo of 0.91 (Level ('If SerVIce D). HIgher Flo('lr Area Ratl('ls on portIons (1f the SIte must be balanced by lower ratl('lS elsewhere, subJect to dt>slgn reVIew. The upper flo0rs ('If structurt>s ab('lve three st('lrleS may be requlrt>d to "step back" from thp pprImeter of the bUIldIng If needpd t('l mlnlmlZP the> lmpact ('If pprcPlve>d mass, attpnuatp wlnd accplpratl('ln, and pr('ltect s('Ilar access to publlc oppn space. The h€'lght ('If any bUlldlngs adJacent t('l thp s(1uth property lIne must "step down" or otherwlse rt>latp to thp heIght ('If ad] acent reSIdentIal devplflpment to rt>ducp vIsual lntruSl('ln, ShadIng, and scale Inc('Ingrulty. 4. Building Height Dpvelopm~nt pr0p('lsals must c('Imply wLth F~d~ral AVlat10n Admlnlstratl('ln ht>lght lLmlt r~gulat10ns whlch escabllsh a max Iffium vertlcal devpl('lpment plane at a ratL('l ('If ('In!? f('l('lt lncreas~ In heLght f0r every sev~n feet 0f h0rlz0ntal dLstancp from the pdge 0f the prlmary surface ('If the> Alrp('Irt runway (appr('lx lmately 250' fr('lm the centprllnp ('If the runway) . 'rhls relatIonshIp, c('luplpd wlth ex IStlOg 51 tp elevatl('ln wlll generally pe>rmlt two to thrpE' st('lry devel('lpment ('In most ('If the Slte, up t('l SlX storIes ('In alm('lst ('Ine-half ('If the slte. Clty p01lcy doE'S O('lt permIt bUlldlngs to excppd SIX storl~S. - 20 - . . 5. Lot Coverage MaXlmum lot coverage on the entlre Slce must not exceed 50%. PubllC rlghts-of-way wlll not be consldered as open space when calculaclng lot coverage. Parcels or portlons of tne slte featurlng lot coverage values that exceed thlS Ilmlt must be balanced by lower coverage rates or addltlonal publlC open space elsewhere on the slte. SpeciflC bUllding setbacks from prlnclpal rights-of-way and adJacent buildlngs may be establlshed by the developer provlded the overall effect lS conslstent with the Clty I S general obJectlves for development of the slte. A minlmum 20'-0. landscaped setback from Bundy Drlve should be provlded. A mlnlmum 20'-0" setback wlth substantial nOlse-bufferlng must be provlded adJacent to slngle-famlly property at the south proJect slte boundary. A mlnlmum SlX to elght foot landscaped setback must be provided along the proJect slte boundary where It abuts the new Airport perlmeter road. 6. Building Design Development proposals must exhlblt superlor bUlldlng deslgn and overal~ aesthetic harmony for all components and phases and must establlsh a deslgn concept that wlll vlsually unlfy all components and phases of the proJect. The Clty will not requlre that bUllding deslgn conform to a partlcular style of archl tecture but all bUlldlng facades must recelve design attentlon Slnce they wlll llkely be vlslble from several vantage pOlnts on or off tne slte. BUlldln9 elements or artlculatlon WhlCh produce vlsual interest, partlcularly at the pedestrlan level are encouraged. Varled roofllnes should be consldered ln the deslgn. Large expanses of hlghly reflective materlals such as black or mlrrored glass are prohibited. Deslgn of building rooftops should conslder Vlews from adJacent bUlldlOgS and surroundlng locatlons. Rooftop mechanlcal equlpment lncludlng satelllte transmlSSlon dev lces should be screened or housed 10 enclosures which complement bUlldlng deslgn. BUlldings must conform wlth all appl~cable Cl ty and State bUlldlng, flre, dlsabled access, and energy regulatlons. 7. Traffic Circulation Access to the resloual land proJect s~te must be from Bundy Drlve WhlCh will also serve as a publlC entrance to Santa Monlca Airport. No access from 23 rd Street to the proJect slte wlll be permltted except for emergency vehlcles. All lnternal roads must be deslgned and constructed by the developer In accordance with Clty standards and must be deOlcated as publlC streets. The developer w~ll be respons~ble for all off-slte clrculatlon lmprovements to malnta~n or increase the capacity of all maJor lntersections ln tne area ~n order to accommodate new development on the proJect slte. All lntersectlons must - 21 - . . 0perate at n0 greater than 91% 0f deslgn capaclty. Thp maln access road enterlng thp pr0]Pct Slte sh0uld be appr0~lmately s~x ty-f0ur feet wlde assumlng tW0 lnbound lanes and f0ur 0utb0und lanps. DE>vel0pment C\f w~de, 4-lane AdmlnlstratlCln tleo0wn aTea. feet WE>st 0f to the maln thlS accf'SS D1TE>ct0r. the prCl] ect Sl te must lnclude a new 48 '-0" access TClad to serve the nf'W Alrp0rt bUlld~ng, Flxed Base Operat0rs and aIrcraft ThIS rClad IS to be 10catE'd appr0x lmately 900 the Bundy Dr ~ ve entranCE> and must be c0nnE>cted access r0ad. Spec~f~c IC'cat~0n and dE>Slgn 0f r0ad must be c00Tdlnated WIth thE' Alrp0rt Drlveways to lndlVldual bUIldIng lC'catlClns shCluld be sIted to pr0vlde clE>ar VISlb~l~ty tC' m0t0rlsts and pedestrIans and 10cated n0 cl0ser to IntE>rSf'ctlons than permItted by standard CIty requIrements. SIdewalks wIth a mInImum Wldth 0f 6 feet must be prOVIded alC'ng all rC'ads and streE>ts. C0nvenlent pedestrIan access sh0uld be pr0Vlded to all bUIldIng entrances fr0m parkIng l0ts and streets. PedestrIan aCCE>SS thrC'ugh parkIng lots must be dIstInctIve USIng walkways, paVIng patterns, or 0ther means WhIch physIcally or VIsually separate pedestrlan paths from trafflc paths. Curb cuts for access by the dIsabled must be pr0Vldpd In acc0rdance WIth applIcable Cl~y and State law. Appr0prlate landscapIng, street lIghts, and strE>pt bE> pr0vlded al0ng all streets In acc0rdance standards, but should be deSIgned to supp0rt a deSIgn thE'mE> for the pr0Ject Slt~. trees must with CIty conslstE>nt 8. Parking Par klng spaces must be pr0v lded 0n SIte> f0r all usps. As n0ted prl?v10usly, the CIty 1S 10 thE' pr0CE'SS 0f substantIally rE>VIslng Its z0nlog rE'gulat10ns, lncludlng parkIng rE>qulrements f0r a varlety 0f land usps. T0 malntaln maxlmum flex lblllty as to thf' mIX 0f USE'S ln the pr0JI?ct and to mlnlmIZE> potentIal parkIng lntrus10ns lntC' adJacE>nt reSIdentIal nE'lghb0rh00ds, the devE>lopment shall prDv ld;? Dnl? parkIng space f0r each 250 square fl?et 0f f100r arE>a E'X cept f0r the f0110wIng uses f0r WhlCh the parkIng requlremE'nts shall bE> as f0ll0ws: o Restaurant 1 spacE' pE>r 75 sq. ft. 0f f100r area o General rE>tall - I spacE> pE'r 300 sq. ft. 0f f100r arE'a ParkIng rE'qulrements f0r 0ther USE>S WIll DE' prC'v IdE'd oy the Clty upon requE'st. - 22 - . . All park.~ng 10t and park~ng s..ructur€' laY0uts must c0nform w~th C~ty standards f0r des~gn and c0nstruct~on, ~nclud~ng rpserved spaces f0r the disabled. up to 40% 0f requ~rpd spacE's may bE' C0mpact. The t0ta1 number 0f spacps requ~rpd f0r the pr0JPct may be reduced wher? a Transp0rtat~0n Systems Managempnt (TSM) Pr0gram acceptable to the C1ty w~ll be imp1ement€'d. The deve10per must prepar€' f0r the C1ty'S reView and appr0val all necessary analyses to Just1fy any parking reduct10n. The TSM Pr0gram must c0ntain pr0grams that have been dem0nstrated to be effective ln reduclng parking demand and wh~ch can be m0nlt0red and enf0rced f0r the Ilfe 0f the pr0Ject. Examples 0f such technlques may 1nclude but need n0t be Ilm1ted to a c0mbinat10n 0f dlsC0unt bus t0kens f0r empl0ye€'s, ridesnaring pr0grams, vanp0C'lls, "flex i-tlmE''' schedul1ng, fl€'ets 0f cars f0r C0mmC'ln mldday use I 1ntprnal develC"pment shut tIp systE"m, C"r slmilar pr0grams 0perated j0intly wlth 0ther nearby bUSlnpSSE's. All surface parking 10ts must bE' screenE"d, landscaped, and 11lum1nated (see LANDSCAPING and LIGHTING bp10w) , and arranged 1n clusters rather than cC"ntinu0US un1nterrupted r0WS. Any abC\ve 0r belC"w grade park~ng structures must bl'" designed to m1n1mize advE"rse effl"'cts 0f scale, materlals, deSign and use charactl"'r1stlcs. AbC\ve grade park1ng structures must nC"t PX cE"ed threl'" levels unless the structurE' ~s lnc0rpnrated ~ntn thE" dE'Slgn (If a bUlldlng. OffstrE"pt 10a01ng and serVice must be pr0vlded 1n acc0rdance wIth City 20n1ng regulat10ns (SMMC Sect10n 9130A and 9130B). 9_ Open SpacE' Devl"'lC\pment prC"p0sals f0r the pr0Ject Sl te must 1nclude a CC'lntlnu0us, sens1tlvely landscaped 0pen spp'ce system. TwC\ baslc types of 0pen space must OE' c0nsidered: 1) parcel-spec1f~c areas adJacl"'nt tc\ 1nd~vIdual bu~ld1ngs f0r USE' pr1mar1ly by bU1ld~ng €'mpl0yees and v~sltors; and 2) a park-l~ke C0ffim0n arl"'a available tC" all dE'velC\pment emplC"Yl"'es, V1s1t0rs and th€' genE'ral pUblIC. orne parcel-spec1fic C"pen spaces shC"uld pr0v1de c0mf0rtable pr0tl"'cted places fC'lr emp10yel"'s and V1sltC"rs to gather 0utdC"0rs f0r lunch 0r general recreatlon. These spaces sh0uld be 0r1ented to receive dIrect sunl1ght dur1ng the hC'lurs they are l1kely tc\ be In use and they sh('luld feature f~xed and ffi0veable seating. These spacE's sh0uld be lC"cated and deSigned tc\ aff0rd pr0tect~on frC\m prE'va1ling Winds and lncal currE'nts created by adJacent bU1ldings. Appr('lpr1ate landscape and water features, nE'arby f00d and bE'vE'rage SE'rVICe, newsracks and nther amen~t1es shC'luld be cC"nsIdered. The C('lmm(ln C"pen spacE' area sh0uld be centrally 10catl"'d 1n the devE'l('lpment SltE' f0r benef1t C'lf prflJect empI0yeE's, VisltC'lrS and the publIC wn0 may be unfam1l1ar With thl'" dE'velC"pment laY(lut. Appr0pr~ate landscapE' fE'aturl"'s and aml"'n~t1E'S sh0uld - 23 - . . bf' pr0V lded. Thl s C0mmC"'n area play area rpqulred by State dIscussed belC"'w. may law also Include f0r th.:> day th? care 0utdC"'0r CE'nter The sIte open spacE' system sh0uld be c0nnectE'd by p.:>destrIan walkways, par C0ursps and bICyclE' paths, and sh0uld Include approprlatp lIghtIng and otner safety featurps. All spaces sh0uld be eaSIly accessIble to the dIsabled. 10. Landscaping C0nsIstent WIth the CIty'S general ObJectIve f0r dpvE'10pment 0f the prC"'Jpct sIte to featurp an aesthetIcally super lC"'r, campus-lIke settIng WhICh pr0duces a hIgh qualIty envlr0nment f0r employeps and vlslt0rs, careful attE'ntl0n to landscapIng must be gIven In all prC"'p0sals. Landscape deSIgn sh0uld bp used to defIne and IdentIfy Important SIte areas and featurE's and als0 to adJust <,r amplI0ratp adverse Sltp c0ndltl0ns such as n0lse- and glarE'. Landscapp deSIgn, like bUIldIng deSIgn, sh0uld prOVIde a c0hesIve dpsIgn lde-ntlty for the entIrE' SIte. SE'veral areas of thp pro]Pct SItE' should reCeIVE' partIcular landscape dpslgn attent10n: <' the maIn pntrance at Bundy DrIve; <' thp Intprnal r0ad and walkway syste-m, partIcularly along Alrp0rt Avenue 0r Its replacpmenti o drIveway and bUIldIng entrances; o the 6' tCl 8 I setback parallel to thE' new AlrpClrt pE'rlmeter rClad; (1 the 20' setback parallel nelghb0rh00d adJacent t(1 b0undarYi to the the south SIngle famIly pr<'Ject SIte (1 bUIldIng Clr parcel-specIfIC <'pen spaces; o the park-lIKe C0mm(1n area 0ppn space; (1 lC"'catl(1nS of SIgnIfIcant Vle-WSi o bUIldIng areas resprved f(1r lCladIng, trash (1r Clther sprVlces Walls, fences, watpr features and "street furnlturp" shCluld all be part (\f an Integrated dpslgn concept. Plant deSIgn sh0uld Include substantIal numbprs (\f maturp tree plements. EmphaSIS sh<,uld be gIven t(1 natIve and speCImen matprlals t(11erant of pr0Jecc SIte cClndltl(1ns. Spasonal c(\l~r and texturp varlPty sh0uld als0 bp carpfully c0nsldpred. All surfacp parkIng 10ts sh(\uld f..aturE' canopy trl"PS at :;he mInImum ratl(1 (1f (\np trE'!" ppr 1,200 squarp fept Clf paved arE'a - 24 - . . to pr0v~de shade and rpl~eve v~sual m0n0t0ny. Landscappd park~ng ls1ands, ppn~nsulas and mpd1ans arp stnngly encnuraged. All landscaped areas must be sprv~cpd by an pnergy c0nserv1ng aut0mat1c 1rr1gat10n system tn ma1nta~n plant life and des~gn qual1ty. Mult~ple level structured park~ng n0t to exceed three st0r1es ab0ve grade may be prnpnsed to ach~eve add~t~0nal 0pen spacp and to rel~eve the v1sual m0n0t0ny 0f surface park~ng 10ts. II. Signag~ All slte slgnage must c0mply w1th the C1ty'S Slgn C0de (SMMC Sect10n 9900 E't SE'q.), wh~ch pr0h~blts c0mmerclal s~gnage abnve the sec0nd f100r level. A well-cnncelved slgn prngram sh0uld be deve10ped f0r the ent1re Sl te WhlCh lS c0ns~stent "nth the dE've10pmpnt pr0p0sal thE'mE'. S~gnagE' at toe Bundy E'ntrancp must 1nclude 1dentlflcati0n 0f Santa M0nlca Alrp0rt 1n a manner to be c00rd~nated wlth the A~rp0rt Dlrect0r. 12. Lighting Ex ter 10r l~ghtlng sh0uld be des1gned and 10cated as part (If the 0verall des~gn c0ncept. All parklng 10ts, bu~ld~ng €'ntrancE's, 10ad~n9 area, serv~cE' areas, r0utE'S 0f m0t0r1zed and pedestr~an travel, strE''''t ~ntersectHlns and Clther p(llnts 0f lnterest must be 111um~nat€'d. BUlld1ng facades may b€' ~llum~nated If C0nslstent wlth the pr0p0sed deve10pment C0ncept. All ~nter 10r and ex ter 10r llluminat10n sh0uld be arranged 0r Shl€'ldE'd to aV0~d exceSSlve glare 0r rpflpct10n 0nt(l any p0rt10n 0f an ad] acpnt street Clr lnt0 the path (If appr0achlng veh~clps 0r 0nt0 adJacent bU1ldlng SltE'S and pr0perty.. 13. Utilitles EXlstlng utlllty l~nes are be10w grade and are generally 10ca tE'd benpath 0r ad] acpnt tr> A1rp0rt Avpnue. ThesE' l~nes lnclude a 12" water l~ne, an 3" sanltary sewer Ilne, a 3" gas 11ne, and a 30" st(lrm draln. S0uthern Callf0rnla EdlS(ln C0mpany malntalns a 10 f00t paspmpnt parallel t(l the s0uth pr0perty l~ne where 1t abuts thp L0S Angeles slngle famlly nE'lghb0rhr>0d. C(lp1eS 0f the A1rp0rt MastE'r Dralnage Plan, sr>lls repr>rts and ut~l~ty drawlngs are ava1lable as part of the Pr0p0sal Appllcat10n Package. The deve10per w~ll be resp0nslble f(lr cn0rd1natlng dpslgn and CClnstructlon affect1ng ex ~st~ng utlllt1f>S and easpments wlth the reSpE'ct1VE' utll1ty c(lmpan~es. Any 0n-s1tp (lr {lff-slte utlllty 1mprnvements 1ncludlng rel(lCat10n 0r aban00nmpnt \lIl11 bp at thE' expense (If the dpvp10per. All utll~ tles must be placed belnw grade (lr c0ncealpd w~thln bUl1d1ngs. All meters and any (lther serVlce facl1~tles must be lC'lcated in - 25 - . . enclnsures wh~ch are arch~tecturally cnmpat~ble w~th the develnpment prnp0sal theme. Every eff0n:. sh0uld be made to ex cE'ed the rn~n~rnum E'nergy C0nservatI0n standards establ~shed by Cal~f0rnla AdmInlstratlve C0de Tltle 24, wlth respect to llghtlng, heat~ng, c00llng and water useage. Proposals Sh0Uld c0ns1.der, f0r examplE', l.nn0vatlve use C'f E'X tE'rnal shad~ng dev1ces, dayllght1ng deslgn, waste heat recovery systems, energy management systems, waste watE'r recycllng systems, and natural vent1latlon. 14. Security Slte deslgn must c0nf0rm w~th appllcable requlrements 0f FE'deral Av~at~0n Regulat~0n Parts 107 (Secur1ty) and 139 (Safety), and sh0uld lncorp0ra te "dE'fens~blE' space II plann~ng c0ncepts. Securlty systems and devIces planned for l.ndlVldual bu~ldlngs must be cC'ordlnated wlth the Santa M0nlca PC'llCf' Department. c. Additi~nal Devel0per Obligati0ns In addltlnn tn the develnpment standards outllned ab0ve, the. fnllow~ng requlrements must bE' consldered and IncC'rp0rated as apprnpr~ate ~n all prnp0sals subm~tted pursuant tC' th~s Request fC'r PropC'sals. As wlth the devel0pment standards llstE-d abC've, detalled resp0nses tn the fnllnwlng requlrements wlll be requlred for phase tW0 nf the devel0per selectlnn prC'cess. Prnp0sals subml tted fnr phasp nnp nf thp process must lnd lcate, In general terms, h0W each tC'plC WIll be addressed. 1. Prevailing Wages The deve10ppr must pay 0r causp to be pald prE'valllng ratE's 0f wages as detE'rm1ned by appllcablE' StatE' and Fed,=,ral laws and rpgulat10ns In cc>nnectlC'n wlth the devel0pment and C0nstruct~0n nf the proJPct s~te. 2. Wompn and K1nority Emploympnt and Business Particlpation 1'hE' develC'per must prepare an aff 1rmatlvP act10n pr0gram to lnvnlvp raclal and ethnlc ffilnC'rltlPs and W0men as empl0yees, c0ntract0rs, subcontract0rs, JC>lnt venturers and/c>r PqUlty c>wnE>rs whprp feaslblE'. A prc>p0sal submltted pursuant tC' thls RFP must lnclude an afflrmatlve act10n prc>gram Includlng respnnsps to the qupst10nnalrp In thp Pr0pC'sal Appllcat~c>n Package and must. lndlcate thp developer's cC'mmItment tC' cnmply wltn the Clty'S n0n-dlserlmlnaClon 1n empl0yment p011CY. The df>velC'ppr must maKE' E'very reas0nablE' E'ff0rt to aehl?ve a male m~n0rlty partlclpat10n target 0f 8-10 pprc,=,nt and a fpmale partlclpat10n targE't of 3 pprcpnt. - 26 - . . In advertlslng f~r bUSlness tenants, the develnper ~r pr0Ject manager must actIvely prnm0te equal ~ppnrtunlty f0r all pr~spectlve busln@ss tenants regardless 0f race, c010r, rellg10n, nat1~nal ~rlgln, ancestry, sex, sexual preference, age, 0r physlcal ~r mental handlcap c0ndlt10n 1n accnrdancp wlth State and Federal laws. The successful deve10p@r wIll be requIred tn submIt an Afflrmatlve r!arkE't1ng Plan fnr Clty apprnval. 3. Emplnyment Oppnrtunities The deve10per shall descrlbe In the deve10pment prnp0sal the benE'fIts thE' develnpment wIll have nn emplnyment npp0rtunltles fnr 10cal and reglnnal rE'sldE'nts. Each resp~nse to th1S Request f0r Prnpnsals must 1nclude a prO]ectl0n 0f the tntal ant1clpated C0nstruct1nn and permanent ]C\bs resultlng from the pr0Ject. F0r permanE'nt ]0bs acc0mmndated 1n the cnmpleted prnJect, the develC\per must 1dent1fy the proJected number ~f net new J0bs (excludlng eXlst1ng 0r transferpE' emplnyment) by genf'ral J0b categ0ry (P.g., cler1al, tecnnlc1ans, pr0fesslnnals, managers), general Sk1ll level (e.g., unskllled, selu-skllled, hlghly sJullpd), and pr~]f'ctE'd tlmlng nf empl0yment. Tn help lmplement C1ty 0bJE'ctlves to target emplnyment opp0rtunlt1es to CIty resIdents partlcularly those whn arE' cur rently unE'mplnyed 0r undE'rempI0yed, the devE'10per sh0uld c0nsldet 1ncludlng a Jnb npportunlty program as part nf the develnpment pr0pnsal. 4. Day Care PreVlnus surveys of CIty rE'sldents and of offIce workE>rs In partlcular have demnnstrated str0ng Interest ln day carp facIlltles l0cated near parents' w0rkplace. All resp0nses to thIS RE'quest fnr Prop0sal s must lncl ude an on-Sl te day care faclllty of a SIze and type sufflClent to meet the antlclpated dE'mand and budgets nf pr0]ect slte emp10yees. The day care fac1lI ty must be furn1shed, Pqulpp@d and ready f0r operatlnn when the proJect slte 15 scheduled to OE'gln np@ratlnn, 0r when the fIrst phase beglns lf the pr0Ject IS devel0ped In phases. Flrst pr10rlty for day care centE>r admlss10n may be reserved fnr pr0Ject slte empl0yees, but the faclllty may accept admlss10ns frnm other nE'arby E'mplnyel" centers. Operat10n of the day carp facIllty must comply In all respects wlth the llcenslng pr0vlSI0ns 0f the Callfnrnla H@alth and Safety Code. 5. Affnrdable Housing and Open Space It IS adopted Clty P011CY that lmpacts created by commercIal 0fflCE' space 0n the Clty'S affordable h0uslng stock and parks and publlC ~p@n space system must be mItlgated by prC'duclng npw aff0rdaole h0uslng and parks and publlC open spacp ('Ir by - 27 - . . paymenc 0f a fee ~n lleu nf prnduct10n tn the Clty 0r a thlrd party acceptable cn the C1CY. T0cal fees In 11eu 0f pr0duclng bCotn 0pen space and h('luslng are $2.25 per square:> f('lnt f0r the flrst 15,000 square feet 0f net rer.tablo c0mmprclal Cofflce f10r>r area, and $5.00 per square f00t f0r all net rentable c0mmprclal 0fflce flCo0r area ab0ve 15,000 square feet. Fnr the pr0Jpct slte, 0pen space may be pr0vlded 0n slte whlle h0uslng unlts must be l0cated 0ff slte due tCl the lncClmpatlbLll ty betweE'n resLdentlal land uses and Alrp0rt 0perat10ns. All detalls ('If satlsfYlng thlS rE'qulrE'ment wlll bE' subJect to appr0val by the Clty at a latE'r stagE' Ln the SE'lE'ctlCon pr0cess. Each pr0p0sal submltted, h0wE'ver, must lnclude an 0utllne 0r statempnt Clf hClW the deve10ppr prClpClSE'S to c0mply. The ad0ptE'd Clty p01lcy statement CClnCE'rnlng thlS lSSUE' may bp f('lund In thp Pr0pClsal ApplLcatl0n Package. 6. Envir0nmental Impact Mitlgati0n The successful deve10per wlll bp rpqulrpd tCl loclude mpasurps In the pr0Ject necpssary to mltlgatp any adverse envlrClnmental effects as rE'qulred by the Callf0rnla Envlr0nmpntal Quallty Act. Respnnses to thlS RFP must lnclude a narratlve summary of pOSSLble envlrClnmental effects created by the pr('lpCosal wlth respect to earth m0vement, alr quallty, water quallty, plant lL~e, anlmal 11fe, n01se, land use, aesthetlcs, rlsk Cof upset, p0pulat10n, h0uslng, transp0rtatl0n/clrculati0n, publlc serVlceS, energy, utllltles, health, aesthetlcs, flscal Lmpacts Con the Clty, recreatL0n, and cultural reSClurces. ThlS summary ~s nClt expected to nE"cessarlly be in a f0rm (lr level of detall necessary fClr an Inltlal Study Clr Envlr('lnmE"ntal Impact Rep0rt, but shCluld bE" sufflc~ently descrlpt~ve to highllght p(ltentlally benE"flClal and adverse envlr0nmental c0nsequences (If the devE"10pment conslderlng b('lth thE" C0nstructl0n pE"ri('ld and l('lng term Clperatlon. 7. Public Art At least onE" percent ('If tCltal "hardn devp10pment C0StS (C(lst of CClnstruct10n excluding pr0fess10nal deslgn and 0ther planning fees and flnanclng C0stS) must be set aSlde by the develClper f0r cClmmisssloned on-slte publlc art to be selectE"d ~n accClrdance WL th a publlC art plan to be created for thp proJect after cC'nsultatlCln wlth the Cl.ty's Arts CC'mml.ssJ.("In. Each resp0nsp t(l this Request f0r PrClposals ShClUld lndlcate In general tprms h(lw thls requlrE"mE"nt wlll bE" addrE"ssed. The successful develClper wlll be requlrE"d tCl submlt a sppclflC publlC art pr0gram to the Clty' 5 Arts Comm~ssl"n for reVlew and rec(lmmendatlon 0f appr0val by thp Cl ty. StrClng c0nSlderatl.Cln shall be glven to deflne publlC art as relatlng to thE' alrp0rt and/0r aVlatlon and c0nslderatl0n shall be made f0r a muspum (lr exnlblt area for aVlat10n and/0r aVlat~Cln hlstor~cal d~splays. - 28 - . . 8. Prntective C0venantsf Other Mecbanisms The C~ty wlll requlre that the successful developer to rec0rd prCotect~ve CClvenants and/ 0r other mechanlsms that are acceptable tCl the Clty Attnrney (l.e., cClvenants, condlt~Clns and restrIctIons) to ensurp that the quallty ('If thp prnJect SIte lmpr0vements aTe malnta~ned 0ver tlme or as subsequent phases are cnnstructed. All respnnses to thE> Request fnr PrnpClsals must lnclude a synClpsls 0f prnpClsed protectlve C0venants lncludlng the City's rlgnts; d€'velClpprs' Tlghts; the rlghts, lf any, nf an assnclatlnn and ltS p0wers, whether an aSSClcIatl0n wlll be establlshed lmmedlately 0r at a later date; the rlghts of lenders; mandatnry llenable assessments; and cnndLtlClns and restrlctl0ns 0n the use and ma~ntenance nf land and th€'ir enf('lTcement. 9. Small Business Incubatnr Facility and Prngram Each propnsal shall include a PT0vLsICln fnr the develnpment and operatl0n 0f a small buslness IncubatClr faCIlIty and pr0gram tn asslst newly establlshed small busln€'Sses In thelr early develClpment. Each lncubatnr faclllty shall cnnsist Clf leas€' space that can be dlvlded lntCo small lncrements that wll1 serve newly establlsh€'d buslnesses. Each lncubatnr prngram. shall C0nslst (\f faCIlltles that may be shared by partlclpants Clf the pr0gram that wlll reduce the space needs nf lndlvldual buslnesses (le. meetlng rnnms, receptl0n areas) and persnnal (\verhead (le. receptlnnlst, wClrd prCocPssClrs) durIng the perind 0f InLtlal start-up Clf the buslnesses. Each lncubator pr('lgram shall alsC' prClvlde technlcal adVIce and aSSIstance appr0prLate f0r newly establlshed buslnesses. The develnper may requIre restrlctlnns (\n thE' length and terms 0f C'ccupancy tCl ensure that th€' facllltles and prngrams are utlllzed by newly created buslnesses 0nly fC'r the perlCld Clf tlme necessary to start up and stabllze th€' buslness 0peratlon. RetaIl, wareh0use, and whCllesale busLnesses shall nnt bp permltted tn Incate In the lncubatCor fac~llty. The l0catI0n Clf uses In the lncubatClr facl1lty shall be c0mpatIble, fnr lnstance, a bUSlness requlr Lng a dust freE> enVlrConment shall n0t be IClcated near a buslness that causes dust. - 29 - . . V. LAND DISPOSITION PROCEDDRES ThlS sect100 of the Request for PrClposals descr~bes certaln aspects of h0W and under what m~nlmum terms the Clty wLll cClnvey @qultable loterest In the 39 acre pr0ject slte to the successful dE'velClper. Pr0spectlVE' deve10pers wlll be expected tCl subm~t a buslness Clffer, includlng base rent, Clty partlclpatlon f0rmula, and performance schedules. The selectE'd d@ve10per and the CIty w~ll fLnallze the specLf1c dispClSltlOO terms durlng a ISO-day oegCltlatlon perlCld. The Clty wl1l negCltlate a falr dlSpClsltlon value and terms f0r the prClj@ct based 0n the eCClnClmics and deslgn Clf the pr0ject. The dlSp0sltlCln terms Clffered wl11 be a crItical fact0r In the selectl0n Clf a deve10per. A. Minimum Financial Terms 1. GrC'und Lease Due to restrlct10ns imp0sed 00 the Clty by the Fed@ral AVlatl0n Admlnlstrat10n Master Agreement, the Clty will Cloly cooslder a lClng-tE'rm grClund lease nClt tCl exceed 55 years for the pr0perty. Annual lease payments WIll be based on the fee value of the land as determlned by a reuse appralsal. Th~s fee value wlll reflect the antlclpatf'od eCClnomlC performance of the proposed proJect Wl thln the cClntex t of ad] acent and comparable land values. Annual lease payments wlll lnclude a formula to reflect preva1llng and future real pstate market and flnanclng c0ndltlons and practlces. Such adJustments may lnclude annuallzed lease payments, payment of an advanc@ "lump sum" c0verlng a speclf led per lCld 0f the lease term, perlodlc modlflcatlClns tCl account f0r changlng eC0nClmlC c0ndltlons as they affect the proJect, a percentage or 0ther partlclpation lO the proJect revenue above the base lease amount, and any c0mblnat10n of the abClve. 2. Subnrdinatinn ThE' CIty may permlt l.ts lnterest tCl bt=> sub0rdlnated lf the developer provIdes acceptable guarantees that the Clty'S lnterest lS pr0tected In the evt=>nt of default. 3. Minimum Equity Cnntributinn A mlnlmum developer equIty contrIbutIon of 15% wlll be requlred for all pr0p0sals. B. City Assistance The CIty rpcognlzes that devt=>lClpmf'nt Clf tht=> proJect sLte may rpqulre development as a publl.c/prlvate partnf'rShlp. The Clty 1S - 30 - . . wllllng to consld~r and posslbly provlde asslstance If It 15 requested and speclflcally Just~flPd. Any proposal assumlng ClCY lssuance Clf tax exempt f~nanc~ng, such as Industrlal Development Bonds, must be deslgneo to comply wlth appllcable legal restrlctl0ns. The Clty wlll also c0nslder prCov ldlng Clther forms Clf flnanclal asslstanCE'. Any such asststance w~ll be in the form Clf a loan and the project proposal must contaln prClvlslons tCl repay such a loan. Repayment terms may lnclude but are n0t Ilmlted t('l a perce.ntage of syndlcat10n pr0ceeds (If syndlcated), addltlClnal cash flow dlstrlbutlon, or percentage 0f prCoceeds from pr0Ject sale Clr refinanclng. C. Master Developer The develClper may J01nt venture 0r enter lntCl Clther legal arrangements for implementatlon Clf thlS prC\Ject. However, the Clty seeks a "master developer", that lS, a slngle deve10pment pntlty for thE' total slte and wlll seek controls durlng negCltlatlClns that will rf>sult In the selectE'd developer havlng l{'lng term resp0nSlblllty and c0ntrCll for the t0tal developmpnt program. - 31 - . . VI. SELECTION PROCEDURES, NEGOTIATION PROCESS, AND SCHEDULE A. General The Clty ('If Santa M0nlca has the sClle auth('lrlty t('l self'ct the developer and reserves the rlght tCl reJect any and all pr0p0sals. A flve-membpr Select10n AdvlsClry durlng the develClper selectiC'ln C0nslst 0f tWC'I Cl ty Cnuncll C0mmlSSl('lner and apprC'lprLate Clty C('Imml ttee wl11 prC'lcess. The members, one staff members. adv lse the Cl ty C0mmlttee wlll Cl ty Plannlng The SelectlC'ln AdvlsClry CC'lmmlttee wlll be respC'lnslble f0r revlewlng develC'lper quallflcatlC'lns and devel('lpment prClpC'lsals. In the flrst phase 0f the develClper selectiCln pr0cess, the C0mmittee wlll recommend a "sh0rt llst" ('If the mClst hlghly-quallfied develClpers to the Clty fC'lr reView and actiC'ln. In the secClnd phase, the C0mmittee wlll recommend selectiCln C'lf a singlp devel0per for reVlew and actl0n by the City. The Clty may utl11ze the serVlces Clf consultants tn asslst In the evaluatlCln 0f deve10pment prC'lp0sals. The deve10per selectl0n pr0cess wlll be managed by Peggy Curran, Dlrect0r, Cnmmunlty & EcnnClmlc DevelClpment Department. ChrlstC'lpher S. Rudd, Senl0r Admlnlstratlve Analyst, DevelC'lpment DLvislCln, wl11 be the prlmary cC'lntact and lnfClrmatl0n f0r develClpers partlclpatlng in the pr('lcess. The Clty staff is respC'lnsible for: EC(ln('lmlC s"u r ce of selectl"n C'I 0verall management 0f the develClper selectlnn prncess; Cl management nf cnnsultant SuppClrt nf the selectlon pr0cess; o c0mmunicatlons wlth develClpers, Clty C0mmunl ty grClups I elected and appCllnted "thers; departments, nff iClals and o preparatl0n materlals; nf requl.red analYSlS and descrlptlve o staff suppnrt fnr the Selectl0n AdvlsClry C0mml.ttee; o neg0tlatl('lns with the deve10per. In the lntprest 0f falr and equltablp C0rnpetltl"n, the Clty retalns the sClle resp0nslbillty tn determlne the timlng, arrangement and meth0d nf pr0p('lsal prl?sentations thrClugh('lut thp devel"per selectlCln prC'lcess. DevelClpers are cautl0ned n0t tC'l undertake an~ actlvitles 0r actlClns tCl prnmClte Clr advertlsP thelr deve10pment prClpC'lsals except 1n the course 0f Clty-sp0nsClred prpsentatlons. - 32 - . . B. Proposal Preparation and Review Process Any develClper lnterested In submlttLng a proposal Sh0Uld send a letter on c0mpany letterhead lndlcatLng thE" name, address, phone number and lead cClntact for th@ c0mpany, along wlth a nonrefundable chE"Ck f0r $ payable to the Clty of Santa MClnlca. Upon reCE'lpt 0f a ll"tt@rand check., the Clty w~ll lmmedlat@ly forward a Pr0p0sal AppllcatlCln Package WhlCh lncludes all lnstructlClns and 0fficlal forms to be used In the selection process, along wlth suppClrtlng data and lnfClrmat~0n and coples of all applicable Clty p0l1cles and codes. 1. Phase One Statement nf QualificatiClns and General Development Cnncept DevelClpers wlll be glven 60 days to prepare an inlt~al Statement of Quallf lcat10ns and General Devel0pment Concept ln accClrdance wlth the requlrements 0utllned In SectlCln IX Clf thls Request f0r Pr0p0sals. The City strongly encourages develClpers tCl submit CClmments and questl0ns In wrltlng to the Clty and meet lndlvldually wlth the Clty staff to dlscuss pr0Ject detal1s, submlSSl0n requiremens and selectl0n crlterla. The Clty may schedule one of more brleflng seSSlons and Slte tours fClr lnterested developers. The Statement of Quallflcatlons and General Development Concept shall cOnslst of a detalled explanatiCln Clf the quallflcatlons of the deve10per, hlS Clr her eXperlE'nCp with developlng and managlng prClJects Clf a slmllar sCCope and naturE', the flnanclal capabl1lty Clf the deve10per, and the organlzatlon and management structure 0f the develClpment company, and thE" quallflcatlons of all key pers0nnE"l Clf thp prlmary and other flrms ~nv0lved in the prClJect. The Statement 0f QualiflcatlClns and General Deve10pment Concept shall lnclude a general descrlptlon 0f pr0p0sE'd uses, a cClnceptual Slte plan f0r the prClJect propClsal, and a general Clutlinp of the Small BUS1ness Incubator program; and shall lnclude a descrlpt~0n of the df>S1gn concept fClr the propClsed pr0Jpct WhICh may be presented ln narratlve, phCltographlc, Clr sketch form. The Clty is not requLrlng the developer to pr0v1de detailed plans 0r rE'nder lngs Clf the proJE'ct n0r dCles 1 t requlre a fully develClped and rf>flned proJect prClpClsal at thlS phase of the reVlew prClcess. The Clty 1S not requlrlng dE'velClpers to obtain cClmmltmpnts fr0m tenants at thlS phase. Develop@rs whCl have slgned tenants w111 nClt be givpn preff>rentlal treatment in the select10n of quallfled developers. BClwever, developers must pr0vlde evidenc@ that they have develCop@d successful proJects wlth tenants 0f the quallty deslred here. The Cl ty staff and Self>ctlCln Adv lsClry Comna ttee will carefully reVlew the Statement of Qualiflcatlons and General Devel0pmpnt C0ncppt prClposal and may meet wlth all Clr any of the developers. The City may requpst that devel0pers clarlfy, - 33 - . . supplement, m0dlfy 0r pr0VldE' regardlng varl0US aspE'cts of the Durlng thE' 45 day rev~ew perIod, the AdvlsClry CClmmlttee wlll reVlew wrltten clarlflcatlons, and may dl?vE'lopt"r S IJndE'r ser 10US prE>SE'ntatl0ns to thE' publlC may phase 0f the select10n prCocE'ss. addlt10nal lnf0rmatl0n lnf0rmatlCln submltted. Clty staff and Selpctlnn quallflcatl0ns, requE'st conduct lntervlews wlth c0nslderatlon. Llmlted also be requested 1n thlS The C1ty, after rEce1vlng the recClmmE'ndatlClns Clf tho" S€'lect~0n Advlsory Commlttpe, wlll select a Ilmlted number of the m0st hlghly-quallfll?d dE'vE'lC'pers tC' partlcipate in thE" sec0nd phase 0f the devel0per selectlCln prC'cess. All C'ffers may bp reJected at the dlscretlnn nf the Clty. 2. Phase Two - Specific Development Propnsals FnllCowing actlC'n by the Clty and wrl tten n0tlce to pr0ceed frC'm the Clty, develClpprs selected In the flrst phase C'f the deve10per selectlon pr0cess wlll be glven 90 days to prepare a cClmplete Deve10pment pr0posal as outllned 1n Secti(ln IX lncludlng a threE' dlmenslClnal mCldel Clf the pr0pC'sed pr0Ject. Tho" Clty strClngly encCourages develClpers tCl submlt C0mments and questlons ln wrltlng to the Clty and meet lndlvldually wlth the Clty staff early 1n the secnnd phast" 0f the selectlCln prncess tn dlSCUSS prClJect detalls, submlsslon requlrements, and selectlon crlterla. The Cl ty staff and SelectlCln Adv lsC'ry C0mrnl t tee wlll rev le-W each DevelClpment Pr0pClsal. The Clty may request that developers clarlfy, supplement, mCodlfy, 0r pr0vLde addltional lnf0rmatl0n regardlng varlOUS aspects nf the informatlon submltted and make a preSE>ntatlCln to the SelectlCln Advls0ry Commlttee. Durlng thE' 45 day reVlew periC\d, the Clty staff and Selectlon Adv1sory Cnmmlttee wl11 reV1ew DevelClpment Proposals, request wr1tten clarlflcatl0ns, cC'nduct lntervlews, and discuss devE'lClpment prC\posals wlth lnterested partles. The Clty, after recelvlng the advlce Cof AdvlsC\ry Commlttee and thE' staff's evaluatlCln, slngl€' devploper by acceptance of an Offer Ex cluslvely. the Select10n may select a to Negotlate As nClted prEvi0usly, all Clffers may be reJected at tho" dlscretlCln of the Clty. C. Project Refinement, Envirnnmental Revlew, Lease Negntlatlnn, and Contract Ezecution Fol10wlng selectl0n C\f the develC\per by thE" Clty thr0ugh accpptance C\f thE' deve10pE'r's OffE'r tCl Negotlatp Excluslvely, the deve10pE'r wlll be requlrf'd tCl pay a depClsl t fpE' to secure tho" - 34 - . . rlght to negCltlatl" thl" terms 0f a DlSp0slt10n and Dl"vel('lpment Agreement (DDA) wlth the Clty f0r a perl0d 0f 2iO days (the "Negntlatl.nn Per10d"). Thl" depnslt must be 1n the fnrm nf a cashler's check, certlfled chpck, 0r letter ('If credlt made payable to the Clty and wlll be retalned by the Clty pxcept that: 1) 1f the deve10per and the Clty enter int0 a DDA for the prClJE>ct, the dep('lslt wlll be applled to the lnltlal lease 0tl.C''In payment Clr refunded, upCln recelpt 0f thp Lease Optl('1n Payment re>qulred upCln enterlng lntCl thp DDA; Clr 2 ) lf the Cl.ty staff recClmmends and submlts a agreement whlch the City falls tCl apprC\ve, dep0s1t wl11 be refunded to the develClper, Clty'S thud-party expenses. The rlght t('l neg0t1ate a DDA lS granted to the selected devel('lper and ('Inly that developer. The rlght lS nCln-transferable Clr asslgnable Wl th('lut the ex press approval Clf the Cl ty. If an agreement lS n('lt reached wlth the Clty durlng the 270-day perlod, because the develC\per has n('lt attempted tCl negCltiate In gClCod falth, the right aut0matlcally termlnatps (unless the Clty agrees to an ex tenS1Cln) . ShCluld thlS 0ccur, the depC\Sl t wl1l be fClrfelted by the deve10per. pr<;'lp0sed thp n the less the Durlng the NegCltlatl<;'ln Perl<;'ld, the deve10per and Clty w1ll ref1ne the develClpment project and wll1 flnallze C0mmltmpnts made by the develClper durlng the deve10pment select10n pr('lcess wlth regard to bUSlnpss terms, schedule and Clther aspects ('If the dl'velClpment pr0pClsal, reVlew a flrm commltment frClm lnltlal tenant and Ipnder, and wlll negCltLate In gClod faith the terms ('If the DlSpClsltlon and DevelClpment Agreement (DDA) between the Clty and the develClper. The DDA will CClntaln the detallpd c0ntractual respClnSlbill tles 0f the City and the develClper, the methCld and amClunt Clf the land dlSpClsltl0n, the apprClval 0f the deslgn by the Clty, and all Clther terms and cClndltiClns Clf thp transactl('ln. The DDA wlll lnclude the clear ldentlflcat10n Clf the CClntractlng partlesi the scC\pe ('If deve10pment whlch clearly descrlbE's the pr('lp('lsed devE'l(lpmenti the descrlptlCln ('If thE' land dlSp(lSltl.(ln arrangement~ the schedule Clf perf('lrmancei the pr('lvlsi0n f0r a lease 0ptl('lni the C('IndltlClns regardlng asslgnment and pr0cedural ltems such as defaults, cures, and rernedles; and "'ther standard contractual Clbllgatl('lns. Once a tentatlve agreement has been reached the develClper may pr0ceed to secure any appllcable perml ts and entl tlements that precE"ed lssuance of a bUlldlng pe.rml t, lncludlng any n@cpssary Gpneral Plan Amendment, zone change, and Archl tectural Revlew Board apprClval. ThE" Clty wlll asslst the develClper ln 0btalnlng any permlts needed frClm the City ('If Los Angeles and the Federal AVlatlon AdmlnlstratlCon. At the c0nclus1.0n 0f thlS stage, thp DDA wlll be executed by the Clty and payment Clf the Ie asp (lptlCln wl1l be due to spcure the prClJect Sl te durlng the prl"paratl('ln Clf workl.ng drawlngs and prClJect construct1Cln. - 35 - . SCHEDULE TIME The schedule fClr the develClper selectlon process ~s antlclpated to be as follows: Phase 1 o Clty lssues request for Gen- -0- eral Development C0nc~pt PrCl- pClsals. Cl Response tCl Request for Gen- 60 days eral Devel0pment CClnc~pt due. n Select~on Advlsory CnmmittE>e 45 days reVlew of General Dev~10pment C0ncepts. Prellm1nary lnter- Vlews and requests for addlt~onal and clarlfYlng lnformatl0ni developer responses tCo Clty requests f0r addltlonal lnformati0n. o Selectl0n Clf most hlghly- quallfled deve10pers by CltYi Clty auth0Tlzes preparatlCln of Speclflc Dpvelopment PrCopClsals. Phase 2 ('\ Speclfic Development PropClsals due. Cl Selectlon Adv~sory C0mm~tte@ reVlew of Develnpment Pr0- posals. Intervlews, presen- tatlnns and requests fCor add- ltlClnal and clarlfYlng lnfClr- matLoni developer respnnses to Clty requests f0r addltlonal lnf0rmatl0n. o Selectlon of developer by CitYi acceptance 0f Offer tn NegCltlate Exclus~velYi deve10per payment 0f $ depnslt. Refinement and Hegntiatinn Period n Reflne the selected deve10pment proJect, cConduct envlr0nmental reVlew, cr>nduct lease npgCotLatlCln, and execute agreements. . 90 days 45 days TOTAL ELAPSED TIME -0- 2 months 3 l/2 months 6 1/2 months 8 months 270 days l7 mClnths - 36 - . . VII. PROPOSAL REVIEW AND SELECTION CRITERIA A. Statement of Qualif icatinns and General Df:>velopaent Concept -- Phase 1 - - The Clty lntends tCl develClp a llSt Clf the mClst hlghly-qua11fled developers based on informat10n submltted by the developer and fr0m lntervlewsi lnvestLgat1Con 0f the developer's previous pr0Jects, hlst0ry, and performance ln prev10us undertaklngsi flnanclal capab111tYi and 0ther pertlnent factClrs. In thlS phase, the SelectlCon Advlsory Committee wlll emphaslze the quallflcat10ns and flnancLal capabll1ty Clf the devel0per as well as the proposal's responSlveness to the gClals and 0bjectlves outllned ~n SectlCln IV of thlS Request for Proposals. The f0110wlng crlterla are those that the Selectlon Advlsory CClmmlttee and the Clty lntend to use In evaluatlng the Statement of QuallflcatlClns and General Dpve10pment CClncepts. ThE' SelectlCln Advlsory C0mmlttee wll1 determlne the ranklng fClT each crlterla: l. RespConslveness of the General Devel0pment CClncept to the gClals and obJectlves for thp proJect. 2. DevelClper Experlence a. MaJClr land develClpment proJects invCllvlng a mlX of cClmmerclal, 1ndustrlal, research and develClpment, parklng facll1t~es, Clff1ce bU11dings, comple~es and Clther uses descrlbed above. b. Success of fClll0wlng: comparable undertaklng related to the o ECClnomlc success (L.e. hlgh 0ccupancy rates, hlgh-qua11ty tenants, favorable reflnanclng. Cl Overall archltectural and urban design quallty. o PrClJect Slze In terms 0r ordE'r 0f magnltudE' Cof CClnstructlon C0stS. Cl Successful CoperatlCln 1n urban settlng w~th emphas~s on quallty malntenancp. o JOlnt publlc-prlvate prClJects. c. Hlst0ry of retalnlng prCoJects as lnvestments. d. CUT rent relatlonshlp Wl th, and demClnstra ted ablll ty to attract maJClr, high-quallty tenants. e. Tlmellness Clf perf0rmance. - 37 - . . f. DemClnstrated ablllty tCo undertake redeve10pment prCoJects and to respond to publlC obJectlves. 3. Management Experlence a. Management success In c0mparable undertaklngs. b. Experlence operatlng deve10pments In an urban settlng. c. Success In achievlng and enfClrcing hlgh-quality prClJect malntenance standards. 4. Flnanclal Capablllty of the Developer a. Ablllty to ralse adequate capltal for the project. b. Strength sources. Clf current relatl0nshlps wlth flnanclng c. Ablllty to provlde f0r ~peratl0n and malntenance. d. ReS0urces and tenacity ("staYlng pClwer"). 5. Organlzatlon and Management Appr0ach a. Clear Ilnes Clf resp~nslblllty wlthln the deve10per's organlzatl0n that the Clty can rely on to be €>ffectlve and respClnslve. b. Avallablllty Clf a full-time representative 0f the developer In Santa Monlca area durlng the development of the pr0Ject. 6. Quallflcatl0ns of Key Pers0nnel Quallflcat10ns and experlence of key deslgn and other persClns and entltles ass0clated wlth the develCoper. 7. Other Factors as Approprlate for Speclflc DevelClpment InfClrmat10n SubmlttE'd B. Specific Development Proppsal -- Phase 2 In the Spec1flc Development Pr0p0sal phase of the devel0per selectlon pr0cess, the Clty and Selectl0n Advls0ry Committee wll1 c0nslder all aspects of the develClpment pr0pClsal. EmphaslS wlll be glven to thE' prop("lsed physical development plan, dE'tails ("If Addltlonal Developer ObllgatlClns, financlng, and bUSlnE'SS terms in accordance wlth the f0110wlng general categ0rles (n0t necessarlly In prlorlty order): 1. Fulfl11ment Clf prClJect ObJectlves/ConfClrmance wlth Clty Plans and Pollcles -_38._ - . . a. Rl"Sp0nS1VE'neSS and c0nslstency wlth ProJect DevelC'lpment Standards and Addltlnnal Devl"lC'lper Ob11gat10ns b. RespOnSlVl"neSS to gpneral C1 ty dE"ve10pment gClals and ClbJectlves c. Reasonableness 0f any prClp0sed mC'ldlflcatl0ns to Clty plans, Zpnlng Ordlnancp, 0r Clther Clty pClllcles 2. Overall Strength 0f Deve10pment Team a. ECCln0mic and management strE'ngth 0f the deve10pment and management team b. Experlence Clf deslgnated plannlng/archltectural/urban dpslgn CC'lnsultants as eVldenced by Clverall architectural and urban deslgn quallty In prev10us prPJects c. Experlence and quallf1catiC'lns 0f pr0p0sed CClntract0r d. Ex perlence and strength spec1allsts deslgnated tp team Clf bE' 0ther key part Clf the c0nsultantsl dpvelClpment 3. pr0Ject EC0nClmlcs a. Development feasJ.blllty and l1kellhCo0d pf 0rderly and timely lmplementatl0n b. Resp0nslveness tp market factprs affectlng project comp0nents c. Quallty Clf deve10pment c0mp0nents 4. Archltecture and Deslgn Quallty a. Overall quallty Clf the C0nceptual deslgn withln the cpntext pf surr0undlng develppment, wlth emphasls pn thE' qual1ty, character, scale, 0Tlentat10n, and mass relatlpnshlp to surr0undlng structurE'S and uses. b. Dpgree 0f creat1ve 1ntegratlCon 0f pr0pCosed uses 5. Buslness Offer and Deve10pment Schedule a. Land lease and C'lther revenues generated tCl the Clty b. PropClsed method nf flnanc1ng c. Absence C'lf c0ntlngenCll"S d. Date fClr start Clf CClnstructl0n P. Phas1ng plan, lf appllcable, and dates fnr cClmplet10n of each phase - 39 - . . . . f. Ant~clpated date Clf cCompl~t10n fClr pntlre pr0JPct g. Cash flClw pr0JPctl0n f0r deslgn, c0nstruct10n phases. - 40 - , ' . . IX. PROPOSAL SUBMITTAL REQUIREMENTS A. Gen@Tal Dev@lopment Cnnc@pt -- PHASE 1 1. Ident~flcatlCln 0f D~ve10p~r and Entlty 2. Devel~pment CClncept Plan (sp~clfled drawlngs and text) 3. Quallflcat10ns 4. Flnanclal Capaclty 5. Organlzatl~nal and Managem~nt Appr0ach 6. Key D~slgn team members and Oth~r C~nsultants 7. Summary 0f Addltl0nal Devel~per ObllgatlClns Responses 8. OutlLnE' prClJect Pro F0rma 9. Pr~l~minary Devel~pment Schedule 10. DepClslt B. SPECIFIC Dev@lopment Prnposal -- PHASE 2 1. IdentlflcatlClo ('If Complete Deve10pm~nt Team 2. C0mpl~te D~scr~ptl0n Cof Physlcal Devel0pment Pr0p0sal lncludlng a 3 dlmenslClnal m0del ('If the pr~Ject 3. Detalls 0f Additlonal Developer Obllgati~ns lnclud~ng Small BUS10ess Incubator Facillty and Pr0gram 4. Detalled prClject Pro F0rma 5. Schedule and Phaslng 6. Pr~posed Buslness Terms 7. Tenant CClmmltment Letter(s) 8. Lender CClmmltm~nt Lett~r 9. Slgned Offer to Negotlate Excluslvely 10. D~p~sit - 41 - ~