SR-021208-7CCity Council Meeting: February 12, 2008
Agenda Item: ~' -`G-
To: Mayor and City Council
From: Eileen Fogarty, Director of Planning and Community Development
Subject: Ordinances Amending the Lantana East, and Lantana South Development
Agreements (07 DEV-009). Applicant: Maguire Properties, LLC
Recommended Action
Staff recommends that the City Council introduce for first reading two Ordinances,
Attachment B and C approving modifications to the Lantana East, 3030 Olympic
Boulevard and Lantana South, 3131 Exposition Boulevard, Development Agreements to
allow a funding alternative to constructing facilities at Edison School campus for joint
City use.
Executive Summary
Development Agreements were approved by the City Council on September 14, 2004 to
allow the construction of two studio buildings at 3030 Olympic Boulevard (Lantana East)
and 3131 Exposition Boulevard (Lantana South). The City has been monitoring both
development agreements including provisions that require the developer to construct
outdoor playground improvements at Edison School. Due to voter approval of a school
bond measure last year, the Santa Monica-Malibu Unified School District (SMUSD) is
preparing plans to completely reconfigure the Edison School campus. This change in
circumstances makes construction of the playground facilities prior to February 2008
infeasible, necessitating modifications to both the Lantana East and Lantana South
Development Agreements. Instead, it is recommended that the developer be required
to post funds to the City which would be used to develop joint use public improvements
as part of the forthcoming campus reconfiguration plan. This modified requirement will
allow the developer to provide a comparable public benefit to the currently required
public benefit.
Discussion
Development Agreements were approved by the City Council on September 14, 2004 to
allow the construction of the following studio buildings on noncontiguous Lantana
parcels.
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Lantana East, 3030 Olympic Boulevard - a new three-story, 64,105 square foot
entertainment production/post-production studio building with atwo-level subterranean
parking garage providing parking for the existing building and 200 spaces for the proposed
building.
Lantana South, 3131 Exposition Boulevard -anew three-story, 130,000 square foot
entertainment production/post-production studio building with a one level subterranean
parking garage providing parking for the existing building and 364 spaces for the proposed
building.
The developer has obtained building permits and expects to be ready for final
inspections for the Lantana East project in February and for the Lantana .South project
in October. Both Lantana development agreements require that the Developer to
construct the following improvements on the Edison School campus for the City's
Playground Partnership Program:
1. New restroom/storage/office building as shown in Exhibit E of the development
agreements;
2. An 8' high chainlink security fence between the playground and school buildings;
and
3. New playground equipment comparable to other Playground Partnership sites.
The development agreements require that these improvements be completed prior to
the City issuing a Certificate of Occupancy for the first building to be completed. The
developer is also required to provide an annual operating subsidy for this Playground
Partnership facility of $35,600 per year for five (5) years.
The developer has worked in good faith with City staff to comply with all requirements of
both projects. However, due to voter approval of a school bond last year, the Santa
Monica-Malibu Unified School District (SMUSD) is preparing plans to completely
reconfigure the Edison School campus. As a result, it is infeasible for the developer to
construct the improvements prior to the campus redevelopment. In light of these
developments, staff and the developer entered into negotiations to establish a substitute
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public benefit. As a result of these negotiations, the developer has agreed to deposit
the value of the original capital improvement work, $356,200, with the City for use when
the campus is redeveloped. Since the original scope of work cannot presently be
undertaken, both Development Agreements must be modified. Requiring the developer
to deposit the funding with the City to develop joint use public improvements in
conjunction with the forthcoming campus reconfiguration plan will allow the City to
implement this public benefit.
The $356,200 payment for the future construction of joint use facilities is based on the
City's past experience implementing the Playground Partnership on other school
campuses and pertinent costs estimates for the City projects. At the time the City
entered into the original Development Agreement 3Yz years ago, the City estimated it
would cost the developer between $250,000 and $280,000 to construct the 600 square
foot restroom/office/storage building, chainlink fence and additional playground
equipment to augment the existing playground equipment that is specified in the
Development Agreement.
The existing requirement is specified in Section 3 of Exhibit G of both development
agreements (attached to this report as Exhibit A). Staff recommends replacing Section
3 with the following requirement:
3. Edison School Joint Use Improvements. Prior to the issuance of a Certificate of
Occupancy for the project, the Developer shall pay a fee of $356 200 to the Citv to be
deposited into a separate fund to be used for Joint Use Improvements and
programming for these improvements by the City of Santa Monica and The Santa
Monica-Malibu Unified School District (SMMUSD) at the Edison School campus (the
Edison School Joint Use Improvements). These funds shall be used either for capital or
operating costs for the Joint Use Improvements at the school. The specific Edison
School Joint Use Improvements shall be subseauently determined by the City and
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SMMUSD. Developer shall be released from this obliaation to pay the fee of $356 200
to the extent that the developer of Lantana (East or Southl satisfies this requirement.
In addition to the above obligation, Developer shall pay the City an annual operating
subsidy for this ~Irninrr~nnr+ D.~rFn°rc~h'n *^^•~,+., the Edison School Joint Use
Improvements of $35,600 per year for five (5) years. The first payment shall be due
~~..^.. +~.,°' ^.,,^;;.,~+.;o^ ~f ~..ch ;,^;pr~.~^;c^t~, ~, prior to the issuance of a Certificate of
Occupancy for Lantana East [South] (C of O) whether or not the improvements have
been constructed '' +"^ '^• °^*° ^ ° ^~+.• •^+^,+ "•, ' ...,+..^.. ~.. +, and the next
four payments shall be due on the first, second, third and fourth anniversaries of s+~#
se~letiert the C of O, respectively. Developer shall be released from the obligation to
make an annual operating subsidy payment to the extent that the developer of Lantana
South [East] ^^^^+•~ ~^+^ ^ •^" ' °^+^ has made such a payment. uaw~oe~
.+..wwp...• .auw
Section 2.5.5 of the Development Agreement also needs modification, replacing
reference to the developer constructing playground improvements to be consistent with
the new requirement. The recommended modification is provided in Attachment 1.
Two ordinances have been prepared to modify the Lantana East Development
Agreement (Attachment A) and Lantana South Development Agreement (Attachment
B).
Commission Action
After conducting a public hearing on January 16, 2007, the Planning Commission
recommends that the City Council approve the modification as presented. No one from
the public appeared to speak at the Planning Commission hearing and no
correspondence from the public was received in time to include with this report. A Copy
of the Planning Commission staff report is contained in Attachment C.
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Alternatives
In addition to the recommended action, the City Council could consider the following
with respect to the project:
Al Adopt alternative modifications;
A2 Make no modification to the development agreements; or
A3 Continue the project for specific reasons, consistent with applicable deadlines
and with agreement from the applicant;
Environmental Analysis
The City Council certified the Supplemental Environmental Impact Report (EIR) for this
project on July 14, 2004. No subsequent environmental analysis is required pursuant to
CEQA Guidelines Section 15162 since the proposed modification would not intensify
any project impact analyzed in the certified EIR. While the development agreements
identified specific playground improvements, the school campus is being redesigned so
the actual improvements that will be constructed with this funding is unknown and
cannot be analyzed at this time. However, potential environmental impacts that would
be associated with this funding will be analyzed pursuant to CEQA requirements for the
campus project.
Public Outreach
Pursuant to Municipal Code Section 9.04.20.20.080, at least ten days prior to the public
hearing date, the applicant submitted a photograph to verify the site posting and to
demonstrate that the sign provides the following information: Project case number, brief
project description, name and telephone number of applicant, site address, date, time
and location of public hearing, and the City Planning Division phone number. It is the
applicant's responsibility to update the hearing date if it is changed after posting.
In addition, pursuant to Municipal Code Section 9.04.20.22.050, notice of the public
hearing was mailed to all owners and residential and commercial tenants of property
located within a (500 foot) radius of the project and published in the Santa Monica Daily
Press at least ten consecutive calendar days prior to the hearing.
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Financial Impacts & Budget Actions
The recommendation presented in this report to approve the Development Agreement
modification would require the developer to pay funds to the City to be used by the City
to assist in the development and operation of joint City and school use of public
improvements at the Edison School campus. The funding will also supplement the
City's costs to operate joint programs at this facility. While the developer's funding
offsets City operating costs during the first five years, the City's income will be reduced
by $35,600 per year after the term of the Agreements. Because the School District is in
the early stages of planning and designing the school campus, staff has flexibility to
develop joint use proposals with the School District and return to the City Council with
specific proposals at a later date.
Prepared by:
Bruce Leach, Special Projects Administrator
Forwarded to Council:
~ileeri Fogarty
Director, Plangl
Development tt
Attachments:
1. First Modification of Lantana Development Agreement
A. Draft Ordinance amending the Lantana East Development Agreement
B. Draft Ordinance amending the Lantana South Development Agreement
C. January 16, 2008 Planning Commission Staff Report
F:\CityPlanning\Share\COUNCIL\STRPT\2007\07DEV009 Lantana Modification.doc
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Additional
attachments
available for review
at City Clerk's
Office.