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SR-11-27-2012-8BCity of City Council Report S4111ta Monica City Council Meeting: November 27, 2012 Agenda Item: To: Mayor and City Council From: David Martin, Director of Planning and Community Development Subject: Discussion of Concept Plans for a proposed Development Agreement at 3402 Pico Boulevard by TC Pico Development, LLC Recommended Action Staff recommends the City Council: 1. Discuss the applicant's Development Agreement proposal and provide direction regarding the appropriateness of the site development and potential community benefits; 2. Initiate the Development Agreement negotiation and review process between the City and Developer. Executive Summary Trammell Crow Company (TC Pico Development, LLC) is proposing that the City consider a Development Agreement to permit a new mixed -use project at 3402 Pico Boulevard. The project involves the construction of four new buildings ranging between two and four stories in height that would include a total of 260 residential units, approximately 2,999 square feet of ground floor commercial area, and approximately 505 parking spaces within a two -level subterranean parking garage. The project site consists of three contiguous parcels with a total of 112,056 square feet located on the south side of Pico Boulevard between 34th Street and Centinela Avenue. The site is currently developed with a vacant three -story office building facing Pico Boulevard and 34th Street, surface and below -grade parking, and a vacant cluster of residential units facing Centinela Avenue. Pursuant to the City's Interim Zoning Ordinance No. 2407 (CCS) ( "IZO "), this project requires approval of a Development Agreement as it is a Tier 3 project based on portions of the proposed project reaching 47 feet in height. Tier 3 level projects in the subject land use designation are buildings that exceed 36 feet in height. The proposed residential and neighborhood - serving commercial uses are consistent with the C2 (Neighborhood Commercial) and R2 (Low Density Multiple Residential) zoning and Mixed -Use Boulevard Low and Low Density Housing land use designations. Project compliance is limited to the Land Use and Circulation Element, while other aspects of the project such as density, height, parcel coverage, floor area ratio, setbacks, and other standard zoning requirements would be established by the Development Agreement. The applicant has worked with staff to modify the proposal by reducing the overall project density and improving the project design to better fit within the neighborhood context and would continue to further modify the proposal in response to Council's comments. Staff recommends that the Council focus on the following items in considering this matter and provide comments on: a. Appropriateness of the project as a Development Agreement; b. Compatibility with the neighborhood context; c. Consistency with the Land Use and Circulation Element; d. Consideration of alternatives; e. Identification of negotiating points; f. Discussion of desirable community benefits. If a Development Agreement is initiated, the negotiations between the applicant and the City should: 1) Achieve a building density, layout, and design with uses that are consistent with the LUCE, with an emphasis on ground floor pedestrian orientation and uses, building mass, scale, and neighborhood compatibility of new construction. 2) Identify community benefits including but not limited to new affordable and workforce housing, physical improvements to create connections and open space, and social and cultural facilities. 3) Identify Transportation Demand Management measures to reduce single - occupant vehicle trips. Background The project site consists of three contiguous parcels with a total of 112,056 square feet located on the south side of Pico Boulevard between 34th Street and Centinela Avenue. Approximately one -third of the site, at the north end, is located in the C2 Neighborhood Commercial district, and the remainder of the site,is located in the R2 Low Density Multiple Residential district. The site currently contains an existing three -story office building that formerly housed the National Academy of Recording Arts and Sciences at the northwest corner of the site and 11 vacant multi - family residential units located at the southern end of the site. 2 Project site — 3402 Pico Boulevard Existing front elevation along Pico Boulevard Discussion Development Agreements are negotiated contracts between the City and an applicant that specify the design details and requirements of a project. The purpose of this review (float -up) is to enable a pro- active preliminary discussion with the City Council regarding the proposed land use, project design, compatibility, and potential community benefits of the project, and to evaluate whether the City desires to enter into a Development Agreement. The Council's recommendations will inform staff and the developer on project development and development agreement negotiations. 3 Project Description The proposed conceptual project involves four separate buildings ranging between two to four stories in height with 260 residential units, approximately 2,999 square feet of ground floor commercial space along Pico Boulevard, and 505 parking spaces within a two -level subterranean parking garage. Vehicular access to the subterranean parking garage would be provided along 34th Street and Centinela Avenue. The originally proposed project design for the DA application included 300 units, 5,000 square feet of commercial space, and 554 parking spaces. PICC t i Conceptual site plan — Planning Commission float -up In response to concerns by the Planning Commission, staff, and community regarding the proposed project density, the applicant has reduced the scope of the project by eliminating 40 residential units, approximately 2,000 square feet of commercial floor area, and 49 parking spaces. 4 The proposed 260 residential units would be as follows: • 74 studio units O 109 one - bedroom units • 59 two- bedroom units • 16 three - bedroom units 27 units (or 10.4% of the total units) are proposed as very-low income affordable units. Site Location and Neighborhood Context The project site is located on the south side of Pico Boulevard between 34th Street and Centinela Avenue at the east end of the City adjacent to the border with the City of Los Angeles. Adjacent uses along 34th Street include one and two -story multi - family residential buildings located to the south of the project site transitioning to predominantly single - family residences further south. One and two -story commercial uses are located along Pico Boulevard to the west. An elevated portion of the Santa Monica Freeway is located to the north and east, and a three -story affordable housing project is located adjacent to the south on Centinela Avenue. A new 95 -unit mixed -use building is currently under construction on the northeast corner of Pico Boulevard and Centinela Avenue in the City of LA. The project site is served by existing public transportation with two Big Blue Bus lines and three MTA bus lines servicing Pico Boulevard. The anticipated Expo Line Bundy station will be located within a half -mile of the project site. Bike facilities are also located along Pearl Street, Stewart Street, and 28th Street. Review of Conceptual Building Desiqn The heights of the buildings range between two and four stories and are designed so that the highest portions are located adjacent to the freeway and within the center of the project site. The buildings are designed to transition in height, with the lower buildings placed towards the south adjacent to existing neighboring two and three story buildings. 5 PICO BLVD FLOOR RETAIL { BUILDINGA ' BUILDING B �n iME Revised site plan — City Council float -up Building 'A', facing Pico Boulevard and an elevated portion of the Santa Monica Freeway, is currently proposed at four stories with a height of 47 feet. Approximately 2,999 square feet of ground floor commercial space would be located adjacent to Pico Boulevard with studio and one - bedroom units located on all four floors. Building 'B' is located along 34th Street with portions of the building containing four stories at a height of 47 feet towards the interior of the site and portions containing three stories along 34th Street and adjacent to existing residential buildings to the south. Building 'B' would contain one and two - bedroom units. Building 'C' is located towards the center of the site with the end of the building fronting Centinela Avenue. The majority of the building contains four stories at a height of 47 feet with the southern portion of the building at three stories in height. Studio, one- bedroom, and two- bedroom units would be located within Building 'C'. E Building `D' would contain 16 three - bedroom units within a two -story building that would measure 30 feet in height due to a mezzanine level between the stories. The four buildings would be separated by a series of landscaped open spaces and pathways. During float -up review of the project, the Planning Commission, staff, and community expressed concerns with the project's density and design. The proposed number of units (300) was generally regarded as being too high, while the massing of the project was regarded as being too large and inconsistent with the pattern of existing development found in the primarily residential neighborhood. In response to staff and Commission comments, the applicant re- evaluated the initial project design and revised the project's design concept. The current proposal includes 40 less units, or 260 total, and redesigned features as shown on the revised floor plan shown on the following page. Further, the applicant has expressed a willingness to continue to work with staff, the community, Planning Commission, and the Council to further develop and refine these concept plans. Below is the project's initial first floor plan, followed by the revised drawing of the new conceptual first floor plan. Initial first floor plan — Planning Commission float -up 7 Smaller -- retail space���� and larger pedestrian R. — 10 FWY plaza / ,` Additional 5' setback s between building A� and freeway to allow landscaping to be New 3 w ® " ''' planted above non - exterior "s excavated area courtyard facing street ff I Revised first floor plan — City Council float -up An architectural design style has not yet been identified during this conceptual phase of the process, and specific design features, colors, and materials have not been provided. The heights of the buildings range between two and four stories (30' — 47') and are designed so that the highest portions are located adjacent to the freeway and within the center of the project site. The buildings are designed to transition in height and be lower towards the south adjacent to existing neighboring two and three story buildings including the use of upper -level stepbacks on the fourth floor. Staff would continue to work with the applicant to foster a design style that is unique but fits within the primarily residential context and development pattern of the neighborhood. Preliminary Design Comments Overall architectural design discussions between the applicant and the City design team have been kept to a general level during the conceptual phase of the proposed project. The applicant has not identified any specific architectural design styles or features at this early point in the process. Comprehensive project plans would be refined during the Development Agreement process based on direction from staff, Planning Commission, K J.__J_ -1 L1 �/� _ Larger usable open t� space area 7sretback Revised first floor plan — City Council float -up An architectural design style has not yet been identified during this conceptual phase of the process, and specific design features, colors, and materials have not been provided. The heights of the buildings range between two and four stories (30' — 47') and are designed so that the highest portions are located adjacent to the freeway and within the center of the project site. The buildings are designed to transition in height and be lower towards the south adjacent to existing neighboring two and three story buildings including the use of upper -level stepbacks on the fourth floor. Staff would continue to work with the applicant to foster a design style that is unique but fits within the primarily residential context and development pattern of the neighborhood. Preliminary Design Comments Overall architectural design discussions between the applicant and the City design team have been kept to a general level during the conceptual phase of the proposed project. The applicant has not identified any specific architectural design styles or features at this early point in the process. Comprehensive project plans would be refined during the Development Agreement process based on direction from staff, Planning Commission, K and City Council pertaining to the project's design, scale, pedestrian orientation, and streetscape design. However, the following initial design issues are identified below to help guide the Council's discussion and comments: • Gateway Presence: The project serves as an entry presence for motorists and pedestrians entering west into Santa Monica along Pico Boulevard. The proposed project should address, through form and design, shaping this gateway opportunity. • Massing: The subject lot is considerably larger than the surrounding properties. The massing of the project, particularly along 34th Street and its existing one and two -story multi - family residential buildings, should be broken up to be consistent with the width of the parcels and residential buildings in the adjacent areas. Building heights for the project should transition with the existing adjacent residential and commercial buildings, and open space areas should be incorporated. The applicant has revised the plans, most notably Building 'B' along 34th Street, to break up the mass of the previous building design. The revised design utilizes an open courtyard facing 34th Street, creating building fagade widths that are more consistent with the existing development pattern along 34th Street. • Setbacks and Step- backs: While the proposed project is still in its conceptual design phase, use of setbacks, step- backs, and mass modulation (i.e. breaks in plane, changes in material, variety of design, etc.) should be considered. The applicant has revised the plans to set back Building 'B' nine feet from the property line to be more consistent with the existing development pattern along 34th Street. The applicant has also increased the setback between Building `A' and the freeway by five feet allowing for additional landscaping between the building and the freeway. • Fagade and Building Plane Quality and Interest: Building facades should create interest through purpose and function, while considering existing building planes, heights, and surrounding design features, and have a sense of internal interest created through the use of materials, design modulation, and /or articulation. The facades of the proposed project should have a sense of quality and interest, in part, created through detailing of a base, middle, and top. • Pedestrian - Orientation: The ground floor design along Pico Boulevard should establish a strong relationship with the sidewalk and pedestrians. Particular attention should be paid to the Pico Boulevard /34th Street corner and how it wraps around from Pico Boulevard to 34th Street. Active uses and building entries should be located adjacent to the sidewalk. Blank walls at the ground floor should be avoided. Residential unit entries along 34th Street should be considered to reinforce the existing streetscape environment. The applicant has set back 9 Building V from the 34th Street property line and reoriented the building to provide a courtyard facing the street. However, the focus of the project design is predominantly inward - oriented towards the internal open spaces, and any opportunities to further open the project towards the streets and create permeability into the site are encouraged. • Ground Floor Commercial Component: Neighborhood - serving ground floor retail /food /drink establishments that could cater to pedestrians and tenants of the project would contribute to enhancing the pedestrian experience. The applicant has created a larger pedestrian plaza at the corner of Pico Boulevard and 34th Street adjacent to the commercial space. Parking I Vehicular Access The two -level subterranean garage would span over all three parcels, and is currently designed with access from 34th Street and Centinela Avenue. The garage would provide approximately 505 vehicular parking spaces for residential tenants and commercial guests. Pursuant to City Parking Standards, the project requires approximately 415 parking spaces and is therefore compliant with parking standards. A Transportation Demand Management plan would be established that would reduce the parking demand generated by the project. The Council should consider whether public or a potential shared parking arrangement at this location would be appropriate. Planning Commission Action The Planning Commission conducted a public hearing on this proposal on July 18, 2012. The Planning Commission voted to recommend that a Development Agreement be formally initiated, with the recommendation that the Council focus particularly on the Commission's concerns related to project density, design, and the relationship of the proposed project to vehicle trip generation. The Planning Commission's discussion is summarized below. Project Density and Trip Generation The Planning Commission recognized the uniqueness of the large project site and its location but believed the proposed density of 300 units was too high for the subject site. Suggestions of a maximum density of approximately 100 units per acre were proposed, but was not a majority viewpoint. The applicant's reduction of the project density to 260 units represents a revised density approximately equal to 100 units per acre density. Concerns regarding the relationship of the project density and potential traffic impacts 10 and trip generation were also raised with the understanding that a full traffic analysis would be conducted during the preparation of an Environmental Impact Report. Project Design The Commission expressed that the building design and massing could be improved, and along with it, the perceived density of the project. The Commission stated their concern with the massing of the proposed project, particularly with Building 'B' along 34th Street. The massing of Building 'B', with no setback from the property line, created an expansive four -story fagade fronting 34th Street with no breaks in building plane or visual permeability into the site. In response, the applicant has set the building back nine feet from the property line and created an open courtyard facing 34th Street, breaking up the building massing and creating building fagade widths and openings that are more consistent with the existing development pattern of residential buildings along 34th Street. The Commission was also concerned with the proximity of Building 'A' to the freeway. Based on the Commission's feedback, the applicant has set back Building 'A' five additional feet from the property line to allow for the planting of landscaping and creating a 19 -foot separation between the building and the freeway at its closest point. The Commission also recommended additional open space throughout the project. The applicant has addressed this comment by reconfiguring the interior of the site to provide a larger usable central open space in addition to the exterior courtyard facing 34th Street. LEED Certification The Commission recommended that the project be designed and constructed to achieve a minimum LEED@ Gold Certification. Community Benefits The LUCE identifies five priority categories of community benefits: Affordable and Workforce Housing, GHG Emissions and Future Congestion Reduction Requirement, Community Physical Improvements, Social and Cultural Facilities, and Historic Preservation. Considering these categories, the following is an additional baseline list of potential community benefits to initiate the Council's discussion on this topic: 11 1. Affordable Housing: The provision of on -site affordable housing beyond the minimum required by the project would be considered a community benefit. 2. Transit Impact Fee Contribution: A provision of a transportation and circulation infrastructure contribution to the City that would support a range of transportation and pedestrian improvements. However, the Council is currently considering implementing a required Transit Impact Fee for new projects such as the subject project, at which point such a contribution would no longer be considered a community benefit. 3. Urban Design / Physical Improvements: Considering the project is located at a gateway location at the east end of the City and on a street corner that would have considerable pedestrian activity, providing additional space for pedestrian access and passive use of the property would improve the existing sidewalk conditions and pedestrian circulation adjacent to and off of the subject site. The provision of open spaces on the perimeter and within the project site would also benefit the project and community. 4. Neighborhood - Serving Ground Floor Commercial: Establishment of small - scale, neighborhood - serving ground floor commercial uses available to the public and tenants of the project would be considered a community benefit. 5. LEEDO Gold Certification: Developer should design and construct the project to achieve a minimum LEEDO Gold certification as established by the LEEDO Rating System. 6. Transportation Demand Management Program: The program may include, but not be limited to, the following measures: Secured bicycle parking for residents and employees, including shower and locker facilities for employees. • Shared bicycle program that would include available bicycles on -site that could be utilized (at no cost) by tenants. • A transportation information center with information for employees, tenants, and visitors. • Developer participation in a Transportation Management Association (TMA). Vehicle sharing technologies made available to occupants of the project. Shared parking. 7. Local Hiring Provision: A local hiring provision to facilitate the hiring of local workers during construction and commercial employees could be negotiated A number of community benefits were discussed and suggested at the Planning Commission and community meeting. The following is a list of suggested community benefits provided by the Planning Commission and members of the community: • Improvements and contributions to neighboring schools • Contributions to historic preservation lib • Contributions to parks • A new police substation in the neighborhood • Reduced parking spaces and increased bike facilities and storage • Pedestrian considerations including off -site improvements for pedestrians and improvements to pedestrian infrastructure towards the future Expo /Bundy Metro Rail station • Alternative transportation opportunities • More usable green open spaces and or park space for neighborhood residents • Accessible green roofs, gardens, and roof decks • A running track on the roof • Free parking to limit impacts to street parking • Community pool /gym access The project's community benefits would be negotiated during the Development Agreement process based on comments and direction from the Planning Commission and City Council. Staff recommends that the Council consider the adequacy and level of potential benefits to be negotiated in this process. Community Meeting and Public Input On January 26, 2012, approximately 80 members of the public attended an initial community meeting at the Fairview Branch Library to learn about and provide feedback on the proposed project. City staff explained the Development Agreement process to the participants and how the project is in the initial phases of conceptual review. After a detailed project presentation by the applicant, the majority of the meeting was spent allowing members of the community to provide their initial thoughts on the project. Most of the comments were related to concerns with the project's density, height, potential traffic impacts, and the need for adequate community benefits to be provided. Zoning Ordinance and LUCE Consistency The LUCE sets goals and policies to guide development within the City over the next 20 -30 years and emphasizes neighborhood conservation and vehicle trip reduction. Encouraging compact, transit - oriented growth and new housing is integral while conserving the scale and character of the City's neighborhoods. The majority of the project site is located in the Mixed Use Boulevard Low land use designation, and a small portion is located in the Low Density Housing designation. The LUCE vision for the Mixed Use Boulevard Low land use designation seeks to encourage 13 vibrant, highly walkable areas and local- serving uses. New buildings should step down in relationship to the scale and character of adjacent low density neighborhoods and include a diverse mix of uses and housing types designated to complement and serve the existing residential neighborhood. The Low Density Housing designation encourages the preservation of low- density housing. New development should transition in mass and scale to adjacent structures in a way that protects the aesthetics and livability of the neighborhood. The proposed Development Agreement must be consistent with the objectives, policies, general land uses and programs specified in the general plan. The project is consistent with LUCE Policy LU11.1 in that providing a range of housing choices to meet the needs of residents continues to support healthy, diverse neighborhoods. Policy B18.4 encourages buildings with a variety of heights, architectural elements, and shapes to create visual interest along Pico Boulevard. Policy B18.10 encourages affordable and workforce housing in proximity to transit and major employment centers. The project is also consistent with Policy N1.8 to make a range of housing options available in multi- family neighborhoods to suit the spectrum of individual lifestyles and space needs. These LUCE goals and policies should be considered when shaping the proposed project. The implementation of a Transportation Demand Management (TDM) plan to reduce vehicle trips in the area and reduce associated parking demand would be consistent with LUCE Circulation Policy T19.2 which seeks appropriate TDM requirements for new development. Furthermore, the LUCE's overall land use policies include providing community benefits for the area, including but not limited to, a transit and circulation improvement contribution and a TDM plan that provides bicycle facilities for employees. Staff recommends that the Council focus on the following project - related areas 1. Whether the proposed unit density, building mass, size, and scale is appropriate for this location and within the neighborhood context. 2. How the commercial ground floor along Pico Boulevard should be designed for this corner lot and the types of uses that are appropriate considering the types of uses and users in the general area. 14 3. Whether the project design is consistent with LUCE policies to enhance the quality of the streetscape and create an open space environment that encourages pedestrian activity and interaction. 4. Discussion on community benefits that would be appropriate for this project. The Council should discuss community benefits to be negotiated, given the proposed development. Alternatives In place of the recommended action, the Council could consider the following with respect to the project: Continue discussion with the applicant regarding additional project options. Financial Impacts & Budget Actions There are no immediate financial or budget impacts associated with the actions recommended in this report. Prepared by: Tony Kim, Senior Planner Approved: I David Martin, Director Planning and Community Development Attachments: A. Preliminary Concept Plans B. Public Correspondence Forwarded to Council: Rod Gould City Manager F: \CityPlanning\ Share \COUNCIL\STRPT\2011 \11 DEV017 (DA - 3402 Pico Blvd) \3402 Pico Blvd (CC Float - Up).doc 15 ATTACHMENT A Preliminary Concept Plans Electronic version of attachment is not available for review. Document is available for review at the City Clerk's office and the Libraries. 16 ATTACHMENT B PUBLIC CORRESPONDENCE Electronic version of attachment is not available for review. Document is available for review at the City Clerk's office and the Libraries. 17 Attachment B available for review in the City Clerk's Office.