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sr-091410-7d7:36 ~'' ~~«r ~°? City of Santa MOll1C8° ~:i$~ 1 City Council Meeting: September 14, 2010 Agenda Item: 7-D To: Mayor and City Council From: Eileen P. Fogarty, Director of Planning and Community Development Subject: Development Agreement 10-001 and Mitigated Negative Declaration for the Construction of a New Biotechnology Research and Development Facility Amendments and Added Conditions The following correction, amendments, and added conditions are recommended for inclusion into the City Council report and Development Agreement: Correction 1. Page 19 of the City Council. report should indicate that the Development Agreement is Attachment C. It is incorrectly stated as Attachment B. Amendments 1. The reference to Exhibit "O" of the Development Agreement on page 39 should eliminated. The Mitigation Monitoring Plan is part of the Resolution adopting the Mitigated Negative Declaration and the Mitigated Monitoring Plan and is not included in the Development Agreement. 2. Amend Exhibit D of the Development Agreement (CON-1 (a)) and Condition #38 to state that noticing of construction activities will be provided to the neighborhoods bounded by Stewart Street, Centinela Avenue, Pico Boulevard, and Exposition Boulevard and the Mountain View Mobile Home Park in-lieu of specific radius notices. _-,~ ~°<~ / 7~~-i 6.1 Architectural Review Board Ap rp oval. Most elements of the design review process have been incorporated in the review process of this Agreement and have been considered and approved by the City Council pursuant to this Agreement. Therefore, only the Project's landscaping and signage shall be subject to review and approval or conditional approval by the ARB in accordance with design review procedures in effect under the Existing Regulations. Except for landscaping and signage, the ARB shall not review any features which are specifically approved by this Agreement or in the Project Plans. The ARB shall have no authority to disapprove or conditionally approve or otherwise adversely affect any features or matters which have been specifically approved by this Agreement or in the Project Plans (including without limitation height, intensity, setbacks, building location and orientation and the structural design of the Project) unless expressly authorized to do so by this Agreement. Decisions of the ARB are appealable to the Planning Commission in accordance with the Existing Regulations. Notwithstanding the foregoing, prior to the issuance of a building permit for the Project, Agensys shall consult with the Planning Director or her designee to address the issue of solar access on the windows of the eastern and western facades of the Project's south building. City Council Meeting: September 14, 2010 Agenda Item: '~ To: Mayor and City Council From: Eileen P. Fogarty, Director of Planning and Community Development Subject: Development Agreement 10-001 and Mitigated Negative Declaration for the Construction of a New Biotechnology Research and Development Facility Recommended Action Staff recommends the City Council: 1. Adopt the Mitigated Negative Declaration. 2. Introduce for first reading an ordinance adopting Development Agreement 10- 001. Executive Summary The proposed Agensys, Inc. project provides the opportunity to retain this long-standing employer within the City of Santa Monica and to consolidate operations into astate-of- the-art facility that will also provide many community benefits. Agensys, Inc., a bio- technology company specializing in the research and development of cancer pharmaceuticals, has been in Santa Monica since 1997 with facilities located throughout the City. Agensys, Inc. is seeking to consolidate its operations into a single site in Santa Monica and therefore is proposing a Development Agreement to allow a net increase of approximately 31,000 square feet of floor area. The site is located in the Bergamot Transit Village District of the recently adopted Land Use and Circulation Element (LUCE) of the General Plan. Agensys, Inc. specializes in therapeutic antibody research and development currently focuses on treatment of fourteen different types of tumor cancers. The Company has the capabilities to generate, develop, manufacture and move into clinical trials. Agensys is owned by parent company, Astellas, formed from the merger of Japan's third and fifth largest pharmaceutical companies. Astellas has approximately 15,000 employees worldwide and is committed to becoming a global leader in the field. The location of the project next to the future Exposition light rail station at Bergamot provides several opportunities to achieve important goals articulated in LUCE. Because of its location next to the rail station, the project is able to reduce the parking supply and rely on an aggressive Transportation Management Program consistent with the vision in LUCE to reduce single occupant vehicle trips. The redevelopment of the site also 1 provides the opportunity to connect the neighboring community with the Expo light rail station through a landscaped pedestrian pathway. The Agensys, Inc. Development Agreement proposes many community benefits that will only occur on the site if the proposal is approved. The community benefits offered through the Development Agreement include: • A publicly accessible pedestrian pathway to allow pedestrian connectivity to the planned light rail station at Bergamot Station and the uses at Bergamot Station • Publicly accessible passive open space along Stewart Street • Widened sidewalk along Stewart Street to further facilitate pedestrian connectivity • A cafe open to pedestrians during limited daytime hours • An aggressive Traffic Demand Management Program geared to the project site's location within a "Higher Goal" District designated by the LUCE • A sculpture garden with up to ten sculptures adjacent to the pedestrian path • A local hiring program including a job fair and a local hiring policy • A student internship program • Student tours • A signage and way-finding system • Shared parking for events at Bergamot Station • Continued community outreach • A one-time transit contribution toward improved transit infrastructure focused on bicycle access at the light rail station An additional community benefit is retaining astate-of-the art "home grown" company within the City of Santa Monica. Its presence will continue to provide broad cross- fertilization opportunities within the City's healthcare sector, including attractive employment opportunities and communication with the local medical provider community. Retaining Agensys in Santa Monica will enable the company to expand and continue its leadership role from a base in Santa Monica rather than elsewhere. Currently there is a permitted project for the site that is on hold pending the outcome of the Agensys Inc. Development Agreement application. The permitted project consists of fagade improvements, renovation of the existing buildings and the addition of 7,315 square feet of floor area, and would house an entertainment production company. If the proposed Agensys Inc. Development Agreement does not move forward, the permitted project would likely recommence and the existing configuration of the buildings would remain on the site. 2 As recommended by the Planning Commission and City Council on February 17, 2010 and April 27, 2010, staff proceeded with the proposed Development Agreement with Agensys, Inc., in which the applicant and the City: 1) Achieved a design with uses that achieve the LUCE vision. Specifically, an emphasis on the scale and design of new construction were considered. 2) Negotiated public benefits such. as a Pedestrian Path; Pedestrian Cafe Open to Public; Public Open Space; Widened Sidewalk along Stewart Street; Local Hiring Program; Internship Program; Student Tours; Signage and Wayfinding System; Shared Parking; Continuing Community Outreach; Transit Contribution. 3) Negotiated Transportation Demand Management measures to reduce single- occupant vehicle trips. Background The site is currently occupied by two buildings totaling approximately 138,000 square feet. The building located near the rear (west) of the site is a two-story, "L" shaped building that has been most recently used as entertainment production office space, while the second building is a steel warehouse structure that has also been used for filming and movie production. On February 19, 2009, the City approved an Administrative Approval application to allow facade improvements, renovation of the warehouse structure, and the addition of 7,315 square feet of mezzanine space for a new entertainment production company. Construction on this project has temporarily paused while the Agensys Inc. Development Agreement is in process. If the DA is not approved, construction would likely recommence and the site would be reactivated, without the inclusion of the community benefits. Original Submittal Since summer of 2009, City staff has been reviewing design plans and working with the applicant to address the massing, circulation, pedestrian orientation and siting of the building. The initial concept plans were designed with a large setback from Stewart Street to accommodate surface parking, and a corporate office complex aesthetic more commonly seen in a suburban setting. In response to staff input, the applicant redesigned the building to create a stronger connection to Stewart Street and a greater 3 distance between Bergamot Station and the rear of the proposed project. This large, rear setback area created an opportunity to provide ground-level public open space. In consideration of the opportunity for ground-level public open space, the site plan evolved further to incorporate a pedestrian path across the site, from east to west. The -path was identified as a necessary component of the project to provide pedestrian access to the proposed on-site open space, Bergamot Station, and the planned Bergamot Station light rail stop. Given this emphasis on pedestrian access, the applicant also proposed widening the sidewalk along Stewart Street, directly in front of the building, from seven feet to 10 feet. Staff also expressed concern about the massing and articulation of the proposed building, and commented on the linear length of the. front elevation and the need for a break in-the plane of the building: The applicant initially addressed these issues with building materials and varying setbacks. The resulting rendering is shown below: Furthermore, staff expressed concerns to the applicant regarding the amount of on-site parking proposed. Given the site's proximity to the planned Bergamot light rail station, staff believed a significant reduction of parking spaces was possible and would help 4 Initial Stewart Street Concept Rendering Agensys, Inc. achieve a higher average vehicle ridership (AVR) level as well as the LUCE goal of No Net New PM Peak Hour Trips. Planning Commission Float-Uo Based on stafFs initial comments, the applicant worked to address issues concerning urban design, parking, and pedestrian accessibility. A revised plan was presented to the Planning Commission on February 17, 2010. Although an improvement, the corporate character and design did not reflect the existing arts and industrial development pattern in the neighborhood. Rendering presented to the Planning Commission on February 17, 2010 The Planning Commission recommended that the architectural style be reconsidered to reflect an arts/industrial theme. Additionally, the Planning Commission, with input from the applicant and the public, also recommended the following to the City Council: • Begin Development Agreement negotiations; • Enhance the proposed architecture of the building possibly incorporating an arts theme; • Enhance ground level open space; 5 • Widen the Stewart Street sidewalk; • Provide greater park space on the west side adjacent to Bergamot Station; • Add apedestrian/bike path along the south side of the property; • Consider providing shared parking; • Ensure that Transportation Demand Management measures are incorporated to reduce single-occupant vehicle trips; • Consider providing job/internship opportunities for local youth; • Encourage designing the building to achieve LEED Gold status; • Plant upwards of forty (40) 36-inch box trees. City Council Float-Uo On April 27, 2010, City Council was presented a revised site plan and project plans incorporating much of the direction provided by staff and the Planning Commission. The result was a completely redesigned project, including partial reuse of the existing warehouse building frame, and partial retention of some walls. Retention of the steel frame represented a unique design strategy creating a canopy over the proposed pedestrian path and providing space for amenities such as a kitchen, a workout facility, locker rooms with showers, meeting rooms, and a public cafe with outdoor dining. The revised plans are shown below: 6 Stewart Street Elevation t<. t ' A~casys, Sne. „x,~ pai Proposed Site Plan The City Council believed the revised plans were moving in the direction of meeting the City's goals by improving the pedestrian connections, providing public open space and incorporating design elements consistent with the vision for the area. City Council directed staff to pursue the Development Agreement, with specific direction to address the following public benefits during the Development Agreement negotiations: • Prioritize the creation of a robust local jobs program; • Study the bike lane issue; • Consider locating car sharing in the campus plan; • Provide on-site way-finding signage; • Add an enhanced Transportation Demand Management program; • Include a cafe that is accessible to the public; • Provide for proactive community involvement and outreach to the neighborhood with a single point of contact for the community during construction and afterwards; • Provide opportunities for Youth Education in science programs with Santa Monica College or Santa Monica High School. 7 Discussion Proiect Description The proposed plans will consist of the following components: • 24,625 square feet for administration offices and entry lobby; • 45,590 square feet for manufacturing of new cancer treatments; • 72,050 square feet for research and development (R&D); • 11,390 square feet of meeting rooms, employee amenities including a cafeteria open to the public during lunchtime hours; • 5,140 square-feet of publicly accessible open space; • A publicly accessible pedestrian path to allow access to the Bergamot Station site and future Expo Line light rail station; • Surface parking for 200-220 cars. Proiect Design As previously noted, the proposed project evolved significantly through the float-up process. Initial plans included a contemporary, corporate design, parking at-grade and tucked under the building, and a second level private open space plaza that offered no visual or physical benefit to the neighborhood as shown in the rendering below. The redesigned project is proposed in a contemporary style with an industrial/arts theme. The existing warehouse building would be partially retained and the steel frame would be kept to maintain the industrial look of the site. Further, the new construction would be wrapped with corrugated metal, glass, exposed steel frames, and would 8 include ground level glazing to allow visibility into the structure. The administrative offices and R&D components would be within athree-story building facing Stewart Street. The manufacturing component would be within atwo-story building behind and to the west of the proposed R&D facility connected by a two-story lobby. The amenity functions, including meeting rooms, employee-only fitness center, and cafeteria/employee lunch room, would be located within a portion of the existing warehouse building. A rendering of the proposed design is shown below and complete project plans are included in Attachment D. Parking and Circulation Because the project is located directly adjacent to the future light rail station at Bergamot it provides an opportunity to actuate the LUCE goal of reducing single- occupant vehicle trips through reduced parking. LUCE identified this area as having a "Higher" transportation demand management goal because of the adjacency to the Expo light rail station. The proposed project would supply a minimum of 180 parking spaces and no more than 205 parking spaces. The 414 spaces required by code (SMMC 9.04.10.08) are excessive given the location of this project, and are not consistent with an aggressive transportation demand management strategy. 9 Proposed Stewart Street Elevation The parking layout includes parking dispersed throughout the site, but the primary parking areas include approximately 33 spaces along the west property line, 40 spaces located on either side of the driveway, 34 spaces in a tandem configuration to the west of the re-used warehouse building and north of the pedestrian path, and the remainder of the spaces along the northern property line and to the north of the amenities building. Circulation in and out of the site is proposed to be from a center, 20-foot wide, driveway that will double as the required fire lane. The proposed driveway has been located at the center of the lot in response to a variety of concerns. First, a driveway too close to the south side of the property could conflict with Exposition Boulevard. Second, a center driveway avoids disturbing the existing parkway street trees. Finally, a requirement of the California Public Utilities Commission (PUC) prohibits locating a driveway within 100 feet of the Stewart Street Expo light rail crossing. An existing driveway located towards the north side of the property would be retained and used as an exit only. ;;, ,, .ZSt<~t' ~easYS. In<. Proposed SiterPlan~~~~ ly S1TE PLiN 10 LUCE and Bicycle Network Connectivity The City is committed to creating a complete network of high quality bicycle facilities throughout the City, with the aim of increasing the number of people who use bicycles for everyday transportation. An emphasis for the Bergamot Transit Village District is enhancing circulation and transportation with pedestrian, vehicular, and transit improvements, including establishing an interconnected grid. LUCE has provided guidance for the Agensys project, including the strong emphasis on site permeability ahd connectivity, so that pedestrian and bicycle access for the neighborhood is maintained through to the Expo light rail station and the Bergamot Village area. Further detail will be incorporated in the upcoming Bergamot Transit Village area plan. This detailed process will address pedestrian, bicycle and vehicle connectivity, and parking as they relate to the community vision for the District. Exposition Dedicated Bike Path The LUCE identifies the Exposition Bike Path, on dedicated rail right-of-way directly adjacent to the Agensys project, as a key component of the City's bike network. It is slated as a premier east-west bicycle facility serving the Bergamot Station/Transit Village area, the City and the region. As shown in the map below, the Exposition Bike Path will be generally located to the north of the Expo light rail line in this area and will run parallel to the rail line to 17~h Street, where the right-of-way ends and the bike path joins the City's bike lane network. This east-west bike path will provide a dedicated route for cyclists and casual bike riders consistent with LUCE. It is essential to ensure good north-south connections from the Expo Bike Path spine to other parts of the City. Analysis of existing and future connections is currently underway as part of the refinement of the Expo Bike Path concept plan. Early next year the Expo Construction Authority will hire a firm to design and build the Phase 2 portion of the bike path from Culver City to Santa Monica. 11 Proposed "Michigan" Connection During the Development Agreement float-up process, community members identified the inclusion of a public bike path through the project site as a desired public benefit, with the focus on connectivity to a future east-west bike lane principally utilizing Michigan Avenue. The route would proceed from the Agensys site through the Bergamot Station parking area to Michigan Avenue and cross the I-10 Freeway at 20~h Street, utilizing an area of Caltrans right-of-way for a short section, proceed westward on Michigan Avenue and ultimately connect with the Civic Center area through a redesigned Santa Monica High School campus. Community members view the Agensys project as providing an opportunity to create a new bike connection at the eastern end of Michigan Avenue. The proposal has been evaluated in the context of the LUCE Bike 12 Network, the Exposition Bike Route, safety concerns, and impacts to the proposed project design. Bicycle Network Cdy of Santa Maraca .Land Use and Qrculatian:Element ® Lane/Pathl Bicycle Boukvartl Ikmva[W~i mpmmm~i:~~.°kYM+ M1Ylwetaf McAmIKM+ -^^^--- .Bicycle ROVle v~ b°tipu~.:rasa: :"~ i:vm++.R Uwu~xm:.~. „mr.°wm~w~i raepnaaya a ap.e..memroaww. Investment FOCUSGea wm aweemw~ma.eh'a..annuwn..m m.a~w ynw amrwynus.n+ Key Gonneclion LOS`.: n"'sa'rya'.a$"i~e~vni:~" E~"+"+''a'°akw1°..~rg . N +.M.,.+~a~ Light Ratl Slop wp.~a.anw.+.v.pa:mma.s '~z Mator eustlSt~p Future Malor Bus Stop Bicycle Route Options Explored by Applicant In response to Council direction, the project applicant proposed several ways to provide bike access to connect with a future Michigan Avenue route to the west. The options analyzed are summarized below: • Options through the Agensvs Site: Two options would bring bicyclists through Agensys' parking lots: one through the center of the project, and one to the north of the project, as shown below. Both options connected through to the Bergamot parking lot, so that the rider would cross the Bergamot lot and join Michigan Avenue. In the end, sharing the center project driveway with cyclists created significant safety 13 concerns because of vehicles backing out from parking spaces into the driveway and employees crossing from one side of the complex to the other. The passage way through the north side, directly adjacent to the Expo light rail line and bike path, also raised concerns with regard to vehicle-backing. For safety reasons, Agensys, Inc. does not find the shared path acceptable. '3 ~ Agensys Site -Shared Center Aisle Agensys Sife -Shared North Side Aisle Agensys states that there is not sufficient space to provide a separated facility through the site because of various site constraints. The project has been redesigned twice, with the current proposal adaptively re-using a portion of the existing warehouse building. The re-use of the warehouse responds to design concerns expressed by the Planning Commission, City staff, and the public regarding compatibility with the area's- eclectic mix of arts and industrial buildings. Additionally, other site constraints dictating the current configuration include the location of the main drive aisle. The driveway is located in the center of the site because - The (PUC) requires driveway access to be a minimum of 100 feet from the Stewart Street light rail crossing. - A driveway on the south of the lot is not advisable because of the awkward offset to Exposition Boulevard. 14 By retaining the existing footprint combined with the central driveway, new construction is limited to the southern half of the site. Agehsys, Inc. has explained the need for very specific floor plate dimensions, size and adjacencies to accommodate laboratories and associated facilities. Agensys, Inc. indicates that incorporation of a dedicated bike path on the site would require a project redesign, including shifting buildings and eliminating parking. This would result in significant project schedule delays. For Agensys, Inc. to remain in Santa Monica, an extremely aggressive time frame is essential. A bike path would require a complete redesign, thereby rendering the project infeasible from a timing standpoint. • Options for Routing Around the Agensys Site: The applicant also proposed two options to route bicyclists around Bergamot Station to connect with Michigan Avenue on the west. One route would utilize the southern edge of Stewart Park, the southern edge- of the City's Resource Recovery Center, transition onto Delaware Avenue and then onto Michigan Avenue. Design of the Resource Recovery Center is well ~.~,~~~~ South Route Option Stewart Park, Resource Recovery Cenfer and Delaware Avenue 15 underway and would need to be reduced and redesigned. Once the project is completed, large trucks that will be using Delaware Avenue would make the environment inhospitable for bicyclysts. Another option proposed is to utilize the Expo Bike Path 180 feet from the center driveway of the Agensys site and less than 400 feet from the southern edge of the site. The most immediate opportunity to join Michigan Avenue is by utilizing 26th Street and a short segment on Cloverfield Boulevard. Although 26th Street is one- way northbound, staff believes there are treatments that could safely accommodate bike lanes. The larger challenge is figuring out a way to safely navigate the short section of Cloverfield Boulevard to the Michigan Avenue intersection, since Cloverfield is already heavily utilized and congested. 26th Street.Option Expo Bike Path, 26`" Street and C/overfie/d Blvd Staff identified two additional opportunities for utilizing the Expo Bike Path to link to Michigan Avenue. One is at 17th Street, where the dedicated bike path ends and transitions to bike lanes. Michigan Avenue is approximately Y4-mile south of the bike path at this point. The other opportunity is turning south on 20th Street to reconnect with 16 Michigan Avenue, although currently there is an area just west of 20th Street that would need to be cleared and reconfigured in order to connect through to Michigan. Finally, the applicant proposed an option to allow cyclists to walk their bikes through the subject property along the proposed public pedestrian walkway. While this does not fully address the goal of bicycle advocates to ride through the site, this alternative would allow passage through this property and furthermore, in staff's opinion, would be consistent with LUCE policy T9.9 of providing through access for bicyclists and pedestrians on~ large property developments. Public Benefits The applicant proposes the following public benefits, as further described in this report and in Article 2.6 of this Development Agreement: 1. Pedestrian path. A public pedestrian path connecting the widened sidewalk at Stewart Street to the Bergamot Station has been incorporated into the plan. The pedestrian path will be approximately 570 feet long and vary in width from approximately 10 feet to 40 feet. The pedestrian path will be accessible to the public from (i) the earlier of 6:00 a.m. or one-half hour prior to the commencement of daily Expo Line operation at the planned station adjacent to Bergamot Station, until (ii) the later of 11:00 p.m. or one-half hour after Expo Line operations cease. Such public access shall be for walking, strolling, reading and other similar activity, as well as allowing cyclists to walk with their bikes along the path. In addition, Agensys shall develop a signage and way-finding system to direct pedestrians to the pedestrian pathway, public cafe, and on-site publicly accessible open space. Such signage will be subject to review and approval of the Architectural Review Board. 2. Pedestrian Cafe Open to Public. A pedestrian cafe open to the public, at a minimum, during the hours of 11:30 a.m. to 2:30 p.m. Monday through Friday is provided. The cafe would be limited to pedestrians only as no on-site parking would be made available to cafe patrons. The pedestrian cafe is designed with approximately 40 indoor and 60 outdoor seats. The DA requires Agensys, Inc. to use reasonable efforts to make residents and workers within walking distance aware of the pedestrian cafe including, but not limited to, the hours that it is open to the public and that no parking is available for cafe patrons. 3. Public Open Space Adjacent to Stewart Street. A passive open space adjacent to Stewart Street is proposed. The open space would be approximately 5,100 square feet and would be open to the public from dawn to dusk daily. 17 4. Widened Sidewalk along Stewart. A widened and improved sidewalk adjacent to Stewart Street will be provided. The sidewalk will be widened at the entry to the passive open space and the central entry driveway. The sidewalk would be widened for a total sidewalk width of 14 feet and length of 100 feet. A planting area will be added between the existing sidewalk and the new parking stalls at the north of the site. The new building at the southeast corner of the site will be set back eight feet from the existing edge of the sidewalk. The area adjacent to the sidewalk will be planted with a vegetated swale to capture rainwater runoff. 5. Traffic Demand Management Program. A Transportation Management Plan will be incorporated with the project. The TDM plan requires several elements to help achieve a high level of trip reduction. Aggressive Average Vehicle Ridership (AVR) rates of 1.6 (initially) and 1.75 (after the light rail train is operational) will be required due to the project site's location within a "Higher Goal" District of the LUCE. Agensys, Inc.'s current level of achievement is 1.25 AVR at its existing locations within the City of Santa Monica. Additionally, the following TDM program elements are included in the plan: • Mandatory participation in a Transportation Management Association (TMA); • A Transportation Information Center; • TDM website information; • An Employee Transportation Coordinator; • Pedestrian way-finding signage; • Opportunities for shared parking; • An on-site drop-off and pick-up loading zone; • Carpool program; • Transportation allowance for employees (parking cash-out) covering the costs of a transit pass; • Parking pricing (payment for parking on-site) at market rates; • On-site secured bike parking, and on-site showers and lockers for employees who bike to work; • Possible public car sharing space; • A compressed work week schedule and flex-time schedule; • Guaranteed return trip home for employees, • Astringent monitoring and compliance plan. All of these tools, combined with the project location adjacent to the light rail station, will reduce trips and move the City towards achieving the goal of No Net New Trips PM Peak Hour Trips. 6. Sculpture Garden. A sculpture garden is proposed to satisfy the provisions of the City's Cultural Arts Requirements. The sculpture garden would be installed on concrete pedestals with up to 10 sculptures adjacent to the pedestrian path. The initial set of sculptures will be made primarily of stainless steel, will be up to 10 18 feet in height, and may have an abstract biological theme. Agensys, Inc. will be responsible for the costs of transportation, installation, maintenance, security, and special lighting of the sculptures. Agensys, Inc. would change sculptures from time to time with the approval of the City's Arts Commission. 7. Local Hiring Program. A local hiring program is proposed and components of the program are discussed below; however, all provisions and definitions of the program are detailed in the Development Agreement (Attachment B of this staff report) and are more specifically described in DA Exhibit N. • Job Fair. Agensys, Inc. will organize an annual symposium/job fair designed to increase job opportunities in the biotechnology industry for City residents, including at-risk youth and young adults, in the vicinity of the Project site.- Agensys, Inc. will solicit and consider in good faith reasonable suggestions from interested community groups in connection with the symposium/job fair. Agensys, Inc. may invite other biotechnology companies to participate. The symposium/job fair will include (a) any other businesses in the area that are interested in mentoring and providing internship programs for at-risk youth who live in the vicinity of the project site, and (b) a jobs fair to match residents in the neighborhood to job opportunities in the biotechnology industry. The first symposium/job fair will be held on or about the first anniversary of the issuance of a certificate of occupancy for the Project and on or about, each subsequent anniversary of such issuance thereafter for five years. • Local Hiring Policy. Agensys, Inc. will implement a local hiring policy for the Project. Guidelines include: Targeted Jobs Applicants. Targeted Jobs Applicants will be low-income individuals and other City residents. Agensys, Inc. will consult with trade unions with apprenticeship and cooperative programs as appropriate to facilitate the hiring and training of apprentices from the local neighborhood. Coverage. The Local Hiring Policy will apply to hiring for all on-site jobs by Agensys, -Inc. and its contractors. Outreach. In order to inform Targeted Job Applicants of job opportunities, in addition to the job fairs Agensys, Inc. (or, during Project construction, the general contractor) shall advertise job openings in the Santa Monica Daily Pressor similar local newspaper. In addition, Agensys, Inc. will provide telephonic or email notice of job opportunities to two community- based organizations, including one in the Pico neighborhood, to be jointly selected by Agensys, Inc. and the City. 19 Hiring. Agensys, Inc. and its general contractor will consider in good faith each Targeted Jobs Applicant in accordance with their respective normal hiring practices. Term. Agensys, Inc. will implement the Local Hiring Policy commencing on the Effective Date until the seventh anniversary of the issuance of a certificate of occupancy for the Project. 8. Internship Program. A student internship program will be provided and will include at least two paid internships in biotechnology to students who attend Santa Monica College or are residents of Santa Monica. One of the internships will be a full-time position during the summer and the other will be a part-time position during the school year. 9. Student Tours. During each school year, Agensys, Inc. will send a letter to the Santa Monica-Malibu Unified School District inviting high school students (grades 9 to 12) for a total of four tours of the Project to help the students better understand the biotechnology industry. Each tour will be limited to 30 students at one time and will include a lecture from an Agensys, Inc. scientist. Students shall be accompanied at all times by teacher. 10. Shared Parking. Shared parking for events at Bergamot Station will be provided. Upon at least 30 days advance notice, Agensys, Inc. will make the parking area available at least five times per month between the hours of 7:00 p.m. to 10:00 p.m. Monday through Friday and from 11:00 a.m. to 10:00 p.m. Saturday and Sunday for special events at Bergamot Station. Agensys, Inc. may charge for such parking at then-prevailing market rates, and establish reasonable rules and regulations for the use of and access to and from the parking area. 11.Continuing Community Outreach. To encourage continuing community outreach, at least twice in the first year following completion of the Project, and at least annually thereafter, Agensys, Inc. will hold a community meeting at the Project site with the residents living in the neighborhood bounded by Exposition Boulevard, Stewart Street, Centinela Avenue, and Pico Boulevard and the Stewart Street Mobile Home Park residents. Agensys, Inc. will provide residents with at least 15 days' prior written notice of such meetings by U.S. Mail. The purpose of the meetings will be to identify and address any issues that may arise from Project operations. Furthermore, Agensys, Inc. will designate a community liaison coordinator to respond to any requests for information or respond to complaints. 12. Transit Contribution. Agensys, Inc. will contribute aone-time payment for transit infrastructure improvements focusing on bicycle access in the vicinity of the subject property. The contribution will be $70,350.00 and will be paid prior to the issuance of the Certificate of Occupancy. 20 Zoning Ordinance and General Plan Consistency LMSD Zoning District The existing LMSD zoning was established to support the preservation of existing light industrial uses, provide a location for studio-related and post-production uses and provide opportunities for artist live-work studios. Additionally, the zone permits laboratories and facilities for medical testing and scientific research development and testing by right. The LMSD zoning also sets forth the property development standards which govern the height, bulk, and mass of buildings. Land Use and Circulation Element (LUCE) The recently adopted LUCE created a new land use district for this area of the City, the Bergamot Transit Village. The Bergamot Transit Village is envisioned to be a mixed-use "village" that capitalizes on the new Expo light rail station by attracting a variety of uses to establish a vital, new complete neighborhood. It is further envisioned that the Bergamot Transit Village would expand opportunities for housing, local-serving retail uses, creative arts and consolidated parking in a small grid network of green streets and pedestrian pathways. As part of this vision, businesses engaged in advanced research and development are specifically identified in the LUCE. The project's overall floor area, stories, and use are all consistent with LUCE policies for the Bergamot Transit Village land use district. This district allows, subject to a discretionary review process, projects that provide community benefits to request a height up to 55 feet and 3.0 FAR subject to stepbacks and urban design standards. Planning Commission Action The Planning Commission formally considered the Development Agreement proposal and the Mitigated Negative Declaration for the project at the September 1, 2010 meeting. The Planning Commission unanimously recommended that the City Council 21 adopt the Mitigated Negative Declaration and the associated Mitigation Monitoring Plan and to approve the Development Agreement with a number of suggestions for the applicant and City Council consideration as described below. Potential Additional Public Benefits • Agensys to consider providing additional student tours beyond one per semester as stated currently in the Development Agreement; • Agensys to explore adding to the internship program a paid internship opportunity for at-risk youth from the Pico Neighborhood and; • City Council to consider whether Agensys be required to obtain SEED Silver certification. City staff will be discussing these issues with the applicant prior to the City Council meeting on September 14, 2010. Development Agreement Revisions and Added Conditions The Planning Commission recommended a few changes to the Development Agreement. Among the recommendations were: 1) to incorporate the Signage and Way-finding requirements into the Pedestrian Path provisions; 2) to revise the wording to public benefit "M", (Transit Infrastructure Contribution), to allow for greater geographical flexibility for bicycle access improvements; 3) to allow alternate parking arrangements other than just at-grade parking such as subterranean or parking lifts; and 4) staff to explore a provision that if shared parking becomes available in the area, then the City can require Agensys to eliminate some parking to allow for more open space and potentially a bike path in the future. The changes to the Development Agreement noted in items (1) and (3) above have been made. 22 Staff was directed to work with the applicant to discuss additional funds for bike improvements beyond the Transit Infrastructure contribution. City Council may recommend a condition that the applicant provide additional funding, $20,000, for city- wide bicycle studies and related improvements. The Transit Infrastructure Contribution is not intended to be allocated outside the Bergamot Transit area and does include bicycle access improvements. This contribution is based on a fair share analysis related to the Expo Bergamot Station. Therefore, Section 2.6.2 "M" (Transit Infrastructure Contribution) should be specifically related to the Bergamot Station area and clarify that the funds would be for an emphasis on bicycle access. A number of revisions to the Development Agreement were also requested by Agensys' attorney (letter attached), as well as a request to add conditions. The added conditions were suggested by the applicant after hearing from neighbors southeast of the site. The added conditions set forth a "good neighbor" policy and require that the proposed windows along the south elevation of the Manufacturing and Research and Development buildings would be designed to mitigate view into the homes of the adjoining neighborhood. City staff found the requested revisions and "good neighbor" policy to be friendly and minor in nature and therefore these issues are incorporated into the Development Agreement for City Council consideration and have given instruction to the ARB to address the windows. Guidance to the Architectural Review Board (ARB) The Planning Commission also made some friendly suggestions to the applicant to help enhance architectural aspects of the project so that the plans are further refined for review by the ARB. Among the suggestions were the following: • Plant Boston Ivy on south elevation 23 • Add parking lot screening • Add a row of trees along Stewart Street to form. a double row of trees with the existing street trees • Add more shade trees to the site • Clearly indicate where bike parking would be located • Ensure lighting to be shielded away residential neighborhood And as mentioned above, staff is suggesting the ARB pay particular attention to: • size and orientation of window openings in an appropriate manner for the neighborhood to the southeast. Architectural Review Board (ARB) Action On September 7, 2010 the ARB continued the proposed project to address concerns about: inconsistencies. between renderings and projects plans; the need for south facing elevations; landscaping; size of window openings along the south elevation; pedestrian amenities along the pedestrian walkway; a complete materials board; and sustainable aspects of the plan. Staff is working with the applicant to resolve the ARB's concerns. To help with this effort, specifically regarding added parking lot screening/landscaping and percentage of compact parking spaces, it is necessary to allow some additional flexibility concerning the overall number of parking spaces. Therefore, the applicant is requesting the ability to have a range of parking from a minimum of 180 parking spaces to a maximum of 205 versus 200 to 220 as is worded in the proposed Development Agreement and staff is supportive. Environmental Analysis Provided as Attachment G, an Initial Study/Mitigated Negative Declaration was prepared for the proposed project in accordance with the California Environmental Quality Act (CEQA). This analysis has resulted in a finding that there would not be any significant impacts associated with the proposed project. Potentially significant impacts 24 were identified in impact areas listed below; however, mitigation measures to reduce the possible impacts to a level of insignificance is possible for each of the identified areas: • Transportation and Traffic • Construction Effects • Hazards and Hazardous Materials To mitigate the above listed areas of potential significance, incorporation of mitigation measures is required. To ensure that these measures are properly enacted, a mitigation monitoring program is necessary and will be enforced during the construction and operation of the project if approved (Attachment E) Comments on Draft IS/MND One comment letter was received from two members of the public, two days after the comment period closed concerning the environmental analysis. Although the CEQA Guidelines do not require responses to comments on a proposed Mitigated Negative Declaration and this comment letter was late, a thorough response has been included with the Mitigated Negative Declaration. Community Meetino and Public Input Two community level meetings have been held to discuss the proposed design. The first meeting occurred on January 19, 2010 at the Thelma Terry Center at ,Virginia Avenue Park, with 14 members of the public in attendance. Conceptual plans were presented and the public commented on issues ranging from traffic concerns, how waste from. the proposed facility will be handled, and the amount of potential development in the general vicinity to concerns over possibly losing a Santa Monica- based business if the project is not approved. Following the float-up process, a second community meeting was held on June 9, 2010. At this meeting, the revised plans that were presented at the City Council meeting were reviewed. Comments received ranged from questions about incorporation of solar panels, consistency of the design with 25 Bergamot Station, and the need for a filtration system to the desire from many in attendance to incorporate a dedicated bike path through the site. Financial Impacts & Budget Actions Staff costs for the Development Agreement process are paid from application fees. There is a wide range of public benefits that the developer will be required to provide pursuant to the Development Agreement negotiations. There are no anticipated financial or budgetary impacts to the City. Prepared by: Bradley J. Misner, AICP, Principal Planner Forwarded to Council: Rod Gould City Manager Attachments A. Public Notification/Correspondence B. Ordinance Adopting Development Agreement 10-001 C. Proposed Development Agreement D. Development Agreement Findings E. Resolution Adopting Mitigated Negative Declaration and the Mitigation Monitoring Program F. Project Plans, Renderings G. Final Mitigated Negative Declaration 26 Attachments and additional documentation available in the City Clerk's Office.