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SR-402-001 (22) '- . . 7'02-.,- 00/ 6-M DEe 8 1981 C/ED:JLA:PC:ms Council Meeting December 8, 1987 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Approval of Extension of Time Limit for Development for the Project Approved as DR 305 and CUP 390, Located at 1723 Fourth street, a Hotel/Office Development Project, Santa Monica/Malibu Unified School District, Applicant. INTRODUCTION Staff recommends approving the request of the Santa Monical Malibu unified School District for a six month extension to the time limit set forth in condition 4 of the City Council's May 6, 1986 approval of DR 305/CUP 390. Condition 4 established a time limit to exercise the rights to develop the project, for one year from the effective date of approval and provided for extension by administrative action for an additional six months. Further extension of time requires action by the Council based on a finding of good cause. BACKGROUND On April 7th, 1986, the Planning Commission approved DR 305 and CUP 390 for construction of a mixed use project consisting of a 7-story, 255 room hotel with associated restaurant, bar and retail uses and a 3 story, 40,000 square foot office and retail building. The Planning commission approval was appealed to the City Council who upheld the approval at its May 6th, 1986 meeting and directed the project to return to the Planning commission for discretionary review of revised plans - 1 - for parking and /:J -k( DEe 8 1981 { . circulation, preservation of trees, and pedestrian access. The Planning Commission reviewed and approved these revisions on July 7, 1986. The conditions of approval established by the City Council (Condition 26 of May 6, 1986 approval) also required that action on the requested variances from CA District regulations be taken prior to issuance of building permits. The Zoning Administrator approved the requested variances on January 6, 1987. In addition, in order to create a separate parcel for the purposes of financing the project, the applicant requested approval of a subdivision. Tentative Parcel Map l8l34/CUP 438 were approved by the Planning Commission on November 10, 1986. The Final Parcel Map is scheduled for action by the Council on the December 8 consent agenda. In January of 1987, the applicant requested that a six month time extension for DR 305 and CUP 390 be administratively approved by the Planning Director based upon the 11.. . complexity of the entitlement requirements for this project and the process of completing all the required hearings for the project...." The Planning Director determined that the effective date of approval was July 7, 1986 and granted that time extension on April, 1st, 1987 for a period to expire January 7th, 1988. During the interim, the Beacon Company has become a partner to the School District and Midis properties in the development of the hotel/retail complex and will operate the hotel as the Guest Quarters Suite Hotel. The proj ect has proceeded through final - 2 - approval by the Architectural Review Board (October 7, 1987); has established conformance with conditions of approval in preparation for the plan check process; and is prepared to pay all City fees required in connection with the issuance of building permits. The District has requested that the city council grant an extension of the time limit because of the unanticipated length of time needed to obtain the best operator for the hotel, to structure agreements to secure financing, and meet all the legal requirements of the state Education Code. The complex process of structuring agreements was just recently concluded during the last week of November I 1987. The School District supports the newly concluded agreements and is prepared to proceed with the project. The District has executed all the necessary instruments of the conveyance of property and is prepared to take the final package to the state Board of Education as an agreement which is within the parameters of the law and satisfactory to lenders. The matter cannot be scheduled on the agenda of the state Board until mid-January at the earliest, past the January 7, 1988 date of expiration of DR 305/CUP 309. Therefore, the Santa Monica/Malibu Unified School District has requested that the city Council act to extend the time limit for an additional 6 months in order to ensure that the proj ect may proceed as planned. It is the District I s intention to secure building permits as soon as the state Board of Education has acted to approve the provisions of the final agreements. - 3 - . J The City Council has the authority to extend the time limit per Municipal Code section 9l48D which states that time limits may be extended by the City Council for good cause. BUDGET/FINANCIAL IMPACT The recommendation presented in this report does not have a budget or fiscal impact. RECOMMENDATION It is respectfully recommended that the City council adopt the following Finding and extend the time limit for this project to July 7th, 1988. FINDING 1. The City Council has reviewed the status of DR 305/CUP 390 and finds that the following circumstances exist which provide good cause for the extension of the time limits established as a condition of the granting of the permit: The project is consistent with the project approved by the City Council on May 6, 1986 based on findings that the proposal is consistent with the goals of the General Plan and good planning practice, is in the public interest, and is consistent with the findings and purpose of Ordinance 1321 as set forth in the specific findings of approval for DR 305, CUP 390: that since the original approval of the project, the applicant has exercised due diligence in establishing conformance to conditions, and obtaining subsequent approvals as required: that the unique nature of the public/private partnership which provides a long-term income stream to the District, required deliberate and time-consuming - 4 - . ~ attention to detail and complex review to ensure conformance to state Education Code requirements. Prepared by: Peggy Curran, Director Joan L. Akins, Assistant to the Director Community and Economic Development tempcc JLA:di 12/2/87 - 5 -