r- 10621City Council Meeting 10 -11 -2011 Santa Monica, California
RESOLUTION NUMBER 10621 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA, CALIFORNIA, APPROVING A SECOND AMENDMENT TO
THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF SANTA MONICA AND RELATED /SANTA
MONICA VILLAGE, LLC, AND MAKING CERTAIN FINDINGS WITH
RESPECT TO SUCH SECOND AMENDMENT
WHEREAS, the City is the owner of certain real property (the "Site ") located
within the Village Special Use District (the "District ") in the City of Santa Monica,
California (the "City "); and
WHEREAS, the Redevelopment Agency of the City of Santa Monica ( "Agency ")
and Related /Santa Monica Village, LLC ( "Developer ") entered into that certain
Disposition and Development Agreement dated as of June 10, 2008, as amended by
that First Amendment to Disposition and Development Agreement, dated as of July 1,
2010 (collectively referenced herein as "the DDA "), pertaining to the redevelopment of
the Site with a mixed retail and residential housing development (the "Improvements "),
in accordance with the terms and conditions of the DDA; and
WHEREAS, the Site was transferred by the Agency to the City on March 9,
2011, and the Agency's rights under the DDA were assigned to the City, in accordance
with that certain Assignment and Assumption Agreement, dated March 8, 2011, which
assignment was consented to by Developer; and
WHEREAS, due to Developer's assertion of changed financing conditions,
anticipated requirements of the California Department of Real Estate ( "DRE "), and
desire to begin utility relocation on and off the Site before construction financing is
obtained for the Improvements, Developer has requested certain amendments to the
DDA, which Developer asserts will be necessary for the Developer to obtain
construction financing and enhance the marketability of the Improvements; and
WHEREAS, the proposed amendments, which have been incorporated into the
Second Amendment, to Disposition and Development Agreement ( "Second
Amendment "), includes revisions to the 99 year leases for Parcel A, Parcel B, and
Parcel C on the Site (collectively, "Ground Leases ") with 50 year extension options for
Parcels A and C, that are consistent with the Redevelopment Plan ( "the Plan ") for the
Earthquake Recovery Redevelopment Project (the "Redevelopment Project ") and the
Five Year Implementation Plan for the Redevelopment Project, adopted in accordance
with Section 33490 of the California Community Redevelopment Law (Health & Safety
Code 33000 et seq.) ( "CRL ") (the "Implementation Plan "); and
WHEREAS, a public hearing has been duly called, noticed and advertised as
required by law for October 11, 2011, at 6:30 p.m. in the City Council Chambers of the
City of Santa Monica, 1685 Main Street, Santa Monica, CA 90401; and
WHEREAS, pursuant to Section 33433 of the CRL, the City has prepared a
summary ( "Summary Report") and has made the Summary Report and the Ground
Leases available for public inspection in accordance with the CRL; and
WHEREAS, the City certified an Environmental Impact Report ( "EIR ") for the
Civic Center Specific Plan, which was updated by the Addendum for the Development
Agreement for the Site; and
WHEREAS, the Second Amendment contemplates the same project that was
analyzed by the EIR as updated by the Addendum, and no additional environmental
review is required pursuant to Public Resources Code section 21166; and
WHEREAS, the City Council of the City of Santa Monica ( "City Council ") has duly
considered all terms and conditions of the proposed Second Amendment and believes
that it is in the best interests of the Redevelopment Project and the City of Santa Monica
and the health, safety, morals and welfare of its residents, and in accord with the public
purposes and provisions of applicable State and local law and requirements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA,
CALIFORNIA, HEREBY RESOLVES AS FOLLOWS:
SECTION 1. The City Council hereby finds and determines that all recitals set
forth in this resolution are true and correct and incorporated herein in full by this
reference.
SECTION 2. The City Council has reviewed and approves the Summary Report.
SECTION 3. The City Council finds and determines that the consideration to be
received by the City for the ground leasing of the Site for 99 years with 50 year
extension options for Parcels A and C is not less than fair reuse value at the use and
with covenants and conditions and development costs authorized by the Second
Amendment for, among other reasons, the reasons set forth in the Summary Report.
SECTION 4. The City Council finds and determines that the ground leasing of
the Site for 99 years and the development of the Site in accordance with the Second
Amendment will result in the provision of housing for low- or moderate - income persons,
for, among other reasons, the reasons set forth in the Summary Report.
SECTION 5. The City Council finds and determines that the ground leasing of
the Site for 99 years and the development of the Site in accordance with the Second
2
Amendment is consistent with the Implementation Plan adopted pursuant to CRL
Section 33490,
SECTION 6. The City Council has reviewed and hereby approves the ground
leasing of the Site to Developer for 99 years and the development of the Site in
accordance with the Second Amendment.
SECTION 7. The City Council hereby approves the Second Amendment in
substantially the form presented at this meeting or with such non - substantive changes
and amendment as may be approved by the City Manager and the City Attorney.
SECTION 8. In making the findings and determinations herein, the City Council
has considered all testimony presented at the noticed public hearing, all written
evidence presented, and the entire record prepared by City staff.
SECTION 9. The City Clerk shall certify the adoption of this Resolution and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM
M sha Jo e Moutri�
CV Atton e
3
Adopted and approved this 11th day of October, 2011.
RicWrd
I, Denise Anderson - Warren, Acting City Clerk of the City of Santa Monica, do
hereby certify that the foregoing Resolution No. 10621 (CCS) was duly adopted at a
meeting of the Santa Monica City Council held on the 11th day of October, 2011, by the
following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
McKeown, O'Connor
Mayor Pro Tern Davis, Mayor Bloom
Holbrook, O'Day, Shriver
Absent: Councilmembers: None
ATTEST:
U v
Denise Anderson- Warren, Acting City Clerk