SR-11-13-2012-3Ic7
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City Council Report
Santa Mouiea
City Council Meeting: November 13, 2012
Agenda Item: a-3:
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Issuance of Request for Proposals for 4th /5th and Arizona Site
Recommended Action
Staff recommends that the City Council authorize staff to issue a Request for Proposals
(RFP) to development teams led by Forest City, Metropolitan Pacific Capital /Clarett
West Development and Related California for development of the City -owned property
at 4th /5th Streets and Arizona Avenue, in accordance with the criteria and approach
outlined in this report.
Executive Summary
An evaluation panel has completed a review of qualifications submitted by 12
prospective development teams who responded to the Request for Qualifications for the
opportunity to develop the three -acre, City -owned site between 4th and 5th Streets, south
of Arizona Avenue ( "Site "). The evaluation panel recommends that three teams be
invited to respond to an RFP. The three teams are led by Forest City, Related
California, and Metropolitan Pacific Capital/Clarett West Development.
Background
On December 14, 2010, Council endorsed Guiding Principles for formulating a vision for
the Site and approved initiation of a community planning process. The Guiding
Principles to reuse the Site called for development that would address the principles,
policies and recommendations set forth in the LUCE, provide a model of sustainable
development, create pedestrian activity, provide a wide range of public benefits, and
incorporate public parking into the project. In March 2011, the Planning Commission
and Downtown Santa Monica Inc. held two community workshops to solicit community
input on the vision for the future of the Site. The results of those community meetings
and an update on the visioning process were presented to Council at a Study Session
on May 10, 2011. Another community workshop was held on January 26, 2012, to
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discuss alternatives for development of the Site within the larger context of the
Downtown Specific Plan process.
On April 10, 2012, Council authorized the issuance of a Request for Qualifications
(RFQ) for the purpose of soliciting development team qualifications for the City- owned,
three -acre Site located between 4th and 5th streets, south of Arizona Avenue. The Site
consists of 12 contiguous parcels comprising 127,000 square feet. The parcels were
purchased by the City between 2007 and 2010. The Site is occupied by bank tenants
with leases that expire in 2022 and 2026, and three commercial tenants whose leases
expire on December 31, 2012. On August 14, 2012, Council authorized the exchange
of 15,000 square feet of the Site for another site to accommodate the future
development of a new Fire Station No. 1. Once the exchange transaction is finalized,
the Site area will be reduced to 112,000 square feet.
Discussion
The RFQ was issued on May 21, 2012, with submittals due to staff on July 18, 2012.
Twelve development teams submitted Statements of Qualifications (SOQs).
An evaluation panel comprised of a City- retained real estate financial advisor and staff
from the Public Works, Community and Cultural Services, Planning and Community
Development, and Housing and Economic Development departments reviewed the
SOQs. The RFQ evaluation criteria required that development teams have professional
experience in successfully developing and managing high - quality, mixed -use projects
that include a variety of uses, as well as experience in developing and managing public
and private parking with innovative parking solutions. Development teams were
expected to demonstrate deep experience in deploying innovative strategies to create
mixed -use, sustainable, urban infill developments with signature open spaces.
The evaluation criteria also sought development teams with demonstrated successful
experience with community involvement and similar public - private partnerships, as well
as the ability to secure financing for similarly complex, mixed -use developments.
After reviewing the SOQs of the 12 teams, the evaluation panel invited six teams to
present their experience and qualifications in- person. The evaluation panel has
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recommended that the three teams be invited to respond to an RFP, as discussed
below.
Teams Recommended to Receive RFP
The first recommended team includes Forest City, Robert A.M. Stern Architects, and
Brooks + Scarpa Architecture. Forest City is a 90- year -old, publicly traded, national firm
with offices in Los Angeles. Forest City specializes in large- scale, urban, mixed -use
development including office, retail, hotel, residential, and arts and cultural uses and
has successfully completed public /private joint ventures including development on
ground leases, with a total portfolio of over 200 projects throughout the country
representing $10.5 billion in assets. The company currently owns and operates more
than 24 million square feet of retail, 11.5 million square feet of office space, 48,000
residential units and over 1,000 hotel rooms. Mixed -use projects that are completed or
under construction include San Francisco Center, University Park at MIT, and
Metropolitan Mixed -Use Campus in Downtown Los Angeles. Robert A.M. Stern
Architects has an international reputation as a leading design firm with wide - ranging
experience. Brooks + Scarpa Architecture is a local firm with a national reputation for
creative, sustainable design.
The second recommended team includes Metropolitan Pacific Capital (MPC), Clarett
West Development, DLJ Real Estate Capital Partners, Office for Metropolitan
Architecture, Van Tilberg, Banvard & Soderbergh, AIA, and OLIN. Metropolitan Pacific
Capital has invested in, developed and managed in excess of $350 million of real estate
since 1980 and currently has five developments in process. Clarett West LLC has built
approximately 2.1 million square feet of real estate and is currently developing
Blvd 6200 in Hollywood, a $500 million mixed -use development. DLJ Real Estate
Capital Partners is a real estate investor and financial equity partner. Office for
Metropolitan Architecture is a Pritzker Prize - winning architectural firm that has designed
signature buildings throughout the world. Van Tilburg, Banvard and Soderbergh is a
local architecture firm with deep experience in infill and mixed -use projects. OLIN is a
landscape architecture firm that pioneered building landscapes over structures.
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The third recommended team includes Related California, Community Corporation of
Santa Monica, RTKL, Koning Eizenberg Architecture, and Rios Clementi Hale Studios.
Related California, an affiliate of Related Companies, is a privately owned real estate
development firm that specializes in urban infill developments and public /private
partnerships. Related California develops affordable and market -rate multi - family and
mixed -use residential properties in California and has partnered with over 20
municipalities and over 25 non - profit organizations. Related California's portfolio
includes more than $2.5 billion worth of developments including over 9,000 residences.
Projects completed or under construction by the Related Companies include Time
Warner Center in New York, CityPlace in West Palm Beach and The Village at Santa
Monica. Community Corporation of Santa Monica has developed approximately 1,500
affordable apartments in 90 properties in Santa Monica. RTKL is a global architecture
firm with a Los Angeles -based office that has extensive experience in mixed -use
development. Koning Eizenberg is a local architecture firm with extensive experience in
community design and a variety of public and private projects. Rios Clemente Hale
Studios is a landscape architecture firm that recently collaborated with Related on
Grand Park in Downtown Los Angeles and has completed projects in Santa Monica and
throughout the region. The team also includes consultants in retail design,
sustainability, public open space planning and management, traffic and parking, parking
operations, leasing, and pre- construction.
RFP: Project Objectives
Staff requests authorization to issue a Request for Proposals (RFP) for the Site to the
three recommended development teams. The RFP would request comprehensive and
thorough development proposals to implement the City's vision of the Site. To ensure
that the RFP clearly states the City's vision, goals, and objectives for the Site, staff
recommends that Council adopt project objectives for inclusion in the RFP. The
recommended objectives for development of the Site are:
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• Inclusion of an exceptionally designed and well- managed programmable
gathering space that adds to the community's civic life with public gatherings and
seasonal activities.
• Inclusion of ground -floor retail, restaurant and cultural uses that animate the area
and contribute to the pedestrian experience.
• Incorporation of a mix of uses such as retail, cultural, office, hotel and residential
that maximize market feasibility and create an anchor for the northern portion of
downtown. A single type of use for all of the upper -level spaces will not be
considered.
• The development must exemplify exceptional architecture and sustainable
design and construction.
• Public access to views should be considered in parts of the development with
ocean or mountain views.
• Parking for the development should consider LUCE parking approaches and
shared parking considerations. Parking that is exclusively reserved for the future
tenants should be minimized, while shared parking should be maximized for
public availability.
• The development, at a minimum, should include an additional 339 public parking
spaces to replace parking that will be lost when Parking Structure No. 3 is
demolished. A greater amount of public parking may be built provided there is a
viable financing plan and the shifts in traffic circulation as cars enter and egress
from the parking garage can be mitigated in accordance with the Downtown
Specific Plan.
• Development of the Site should encompass maximum flexibility in order to
respond to changes in community and market needs over the coming decades.
• The development must exemplify the concepts identified in the Downtown
Specific Plan process. Conceptualization and design of the Site must be
coordinated with the specific planning process to ensure that each process
informs the other.
Next Steps
With Council authorization, staff anticipates releasing the RFP before the end of the
calendar year. Respondents would be provided approximately three months to prepare
proposals. Once the proposals have been evaluated, staff would return to Council with
a request to enter into an Exclusive Negotiating Agreement with a recommended
development team, during which time the development would be further refined,
entitlements would be considered and business terms negotiated.
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development team, during which time the development would be further refined,
entitlements would be considered and business terms negotiated.
Environmental Analysis
Issuance of a Request for Proposal is not subject to the California Environmental
Quality Act. It is anticipated that a development will be subject to future environmental
review under the forthcoming Downtown Specific Plan environmental analysis.
Public Outreach
Public participation in the three community workshops, as well as feedback received
from the Downtown Santa Monica Inc. Board and Planning Commission, provide the
basis for the project objectives recommended to be included in the RFP and will provide
a basis for reviewing the RFP.
Financial Impacts & Budget Actions
There is no immediate budget /financial impact associated with releasing the RFP.
Prepared by: Jason Harris, Economic Development Manager
Approved:
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Andy Agle, Director
Housing and Econom evelopment
Forwarded to Council:
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Rod Gould
City Manager
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