SR-01-22-2013-3OFrom: David Martin, Director, Planning and Community Development
Subject: Annual Development Agreement Compliance Review
Recommended Action
Staff recommends that the City Council:
1) Review the status of Development Agreement compliance
2) Determine good faith compliance for those that are in compliance
Executive Summary
This report provides an annual summary of the status of compliance for each of the 21
Development Agreements that are currently in effect and subject to annual compliance
report submittals. Council reviewed the status of Development Agreement compliance
most recently at its May 11, 2010, September 28, 2010, January 25, 2011, and January
24, 2012 meetings. This year's summary includes review of all 12 previously -
constructed projects, five projects that are currently under construction, and the status
of the remaining four Agreements where construction has not yet commenced.
Attachment A to this staff report also provides a summary of the Transportation Demand
Management (TDM) Program requirements that have been imposed on new and
amended Development Agreements since 2010.
Based on staffs review of each of the 12 projects already built and the annual reports
submitted by the developers or successors -in- interest to demonstrate good faith
compliance, staff recommends that Council determine 11 of these Agreements are in
full compliance. As discussed more fully in this report, there is one outstanding matter
related to use of on -site parking spaces that is in the process of being resolved at the
1733 Ocean Avenue property.
Staff will continue its ongoing and annual review of compliance reports for each
Agreement submitted by the. developers, or successors -in- interest, to demonstrate good
faith compliance. The next annual report to Council for all Development Agreements
subject to annual compliance reporting is scheduled January 2014. This review will
again include all 12 previously- constructed projects and any new Agreements where
construction has commenced or recently been completed.
Background
Chapter 9.48 of the Municipal Code establishes the processes and requirements for the
City to enter into a Development Agreement. One of the provisions is annual review by
the City Council of each approved Development Agreement to determine good faith
compliance with the terms and conditions of the Agreements. Since the passage of this
ordinance in 1982, 21 Development Agreements have been enacted that are still in
effect. Each Development Agreement contains unique time frames, obligations, and
requirements. The obligations can be one -time or ongoing; some are fees, some are
actual physical improvements, and some are ongoing services. The 21 Development
Agreements monitored by the Planning and Community Development Department are
listed below and include four Agreements where construction has not yet commenced.
Development Full Compliance Working to Achieve � Under FNCootAgreements (21) (11) F,Full Compliance (1) Construction (5) Commenced (4)
Colorado Place II & II
(Colorado Center) (1se1) F-
National Medical Enterprise
'
F Water Garden(19sa)
F_- r
Santa Monica College
Parking &Pool (lses)
Maguire Thomas (lsso)
(Viacom) (1982)
Saint John's Health Center
(1998)
Bayview cA unlimited
Rand (2000)
r
(�
Partnership
1 F -- r
Saint Monica's Catholic
Community y (zolo)
I
(Sheraton Delfina) (1ss0)
1 Agensys (zolo)
FF_
Colorado Creative Studios
(2011)
702 Arizona Avenue (zo11)
(Arboretum (1ss7)
F Water Garden(19sa)
F_- r
Santa Monica College
Parking &Pool (lses)
Maguire Thomas (lsso)
I 1 I
Saint John's Health Center
(1998)
Rand (2000)
F Lantana East (2004)
Lantana South (2004)
I
( r
The Village (20oa) �)
1 F -- r
Saint Monica's Catholic
Community y (zolo)
I
1 Agensys (zolo)
FF_
Colorado Creative Studios
(2011)
702 Arizona Avenue (zo11)
r I
Fl-317 7[r' Street (2011)
401 Broadway (zon)
F F_ F_• F
710 Wilshire Boulevard (2012)
1 1548 d Streeo12)
li
Hill Street Partners III (2007)
I Expired in 2012 I I I
1004
As explained in the compliance report submitted to Council in 2010 -2012, there are also
five very early Development Agreements:
® Lincoln Property /Phase II of the Ocean Park Redevelopment Area
• 1426 California Avenue
• 2823 -2825 Santa Monica Boulevard
• 10404 th Street (Dorchester)
• 701 Santa Monica Boulevard
In general, these early Development Agreements required certain street improvements
and, in some cases, the payment of fees. For example, the Agreement for 701 Santa
Monica Boulevard required the payment of an Arts and Social Service Fee and an In-
Lieu Housing Fee. Such fee obligations were satisfied when the projects were
completed. Thus, compliance and monitoring have not, in general, been an issue.
However, in one case, the Dorchester, ongoing affordability obligations were imposed
by contract and recorded against the property. Since the Development Agreement's
inception in 1982 for the Dorchester, the original developer has sold off the fifteen
affordable units individually, creating a unique situation where owners of condominiums
have affordable housing restrictions with no market rate units to balance the costs.
Some Dorchester owners began buying the condominiums with the intention of living
there. For the Housing Division's monitoring period in 2012, nine of the fourteen (one
owner has two units) owners have reported that they are complying with the
development agreement. One of the delinquent owners had reported and verified
compliance in the 2010 monitoring and that case has been referred to the City
Attorney's office to get the new reports. Two more of the owners have cooperated with
the City but claim that it is financially impossible to comply; one is selling his unit and
the other is litigating the issue. Regarding the final two owners, the City sued them in
2010 and obtained a settlement agreement in August of 2012.
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Discussion
As noted above, as a result of staff's review of all 21 Development Agreements subject
to compliance reporting, 11 of the 12 previously- constructed projects have been
determined to be in full compliance. Since Council's last annual review of Development
Agreement compliance, one new Agreement has been executed for the property at 710
Wilshire Boulevard; this project has not yet advanced to the building permit application
phase.
Below is a summary of all Agreements where annual compliance reports have been
submitted for the current review period, and a brief status update on the five projects
under construction and four Agreements where construction has not yet commenced.
Attachment A to this report also provides a summary of program measures that have
been incorporated in newly- approved or amended Development Agreements since
2010 in conjunction with the City's Land Use and Circulation Element (LUCE)
implementation.
Recommend Finding of Good Faith Compliance
Colorado Place I & II (Colorado Center)
2600 -2800 Colorado Avenue
Agreement Effective: 10/27/1981
Expires: 9/15/2036
Amended:
4/1984; 7/1984; 5/1985; 12/1987; 6/2011
Reporting Period: 10/2712011 to 10/27/2012
Full Compliance Confirmed
The project was approved for approximately 900,000 SF of office uses along with a
daycare center, park, health club, food services and community rooms. Building heights
range from 65' to 80'. On -site parking structures currently contain 3,085 parking spaces.
4
Community Benefits Summary
Y Child care center (Hill 'N Dale)
• Public park with tennis courts, children's play structure, basketball court, and
public gathering space
• 51 units of affordable housing which per an agreement between the City Housing
Authority and the County, are monitored by the County and a contribution of
$2,652,909 to the City's Affordable Housing fund
• Community rooms open to the public and available free of charge for community
& neighborhood groups
• Nearly $3 million worth of art and social service benefits through Park &
Community room maintenance
• TDM Program (enhanced by Amendment No. 5)
• Off -site traffic signal, street lighting, and turn lane improvements
Status of Compliance
The required annual compliance report was received on October 26, 2012. The property
owner is in full compliance with all Development Agreement fee payments and public
benefits associated with requirements in effect during the 2011 -2012 reporting period.
The property owner has fully undertaken the enhanced Transportation Demand
Management Program that was approved by Council on June 28, 2011 as a
requirement of the Fifth Amendment to the Development Agreement that permits
leasing of up to 1,035 parking spaces to off -site parties. Some of these measures
include implementing a Transportation Management Association that serves all
employers on site, establishing baseline Average Vehicle Ridership data for the entire
site by conducting transit surveys and collecting data from large and small employers,
creating a transit /rideshare information center and website, and increasing on -site
bicycle parking.
In accordance with the Fifth Amendment, the property owner held its second annual
community meeting on October 4, 2012 to discuss Development Agreement compliance
with residents in the vicinity of the project site. In response to community input provided
at this meeting, the property owner ordered revised signage with a larger font to replace
signage installed last year at the main park entrance informing park visitors that free
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parking is
provided on weekends and
holidays.
Also in response to community
comments,
the property owner ordered
directional signs to be placed at garage
entrances
for park visitors who wish to
park on
site weekends and holidays. New
signage is anticipated to be installed by the end of January 2013.
Paseo Del Mar
1541 Ocean Avenue
Agreement Effective: 1/26/1982
Expires: 10/1/2031
Reporting Period: 1/26/2011 to 1/26/2012
Full Compliance Confirmed
„o
The project consists of approximately 54,000 SF in two buildings ranging in height from
28 to 36 feet. Uses include restaurant, office, retail, and 10 units of low, median, and
moderate income housing. The subterranean parking garage contains 72 spaces.
Community Benefits Summary
• 10 deed - restricted affordable housing units at a prime oceanfront location
Y $75,000 Art and Social Service fee or in -kind provision of art on -site
• Parking, Carpool, and Transit Incentive Program
Status of Compliance
The required annual compliance report was received on June 6, 2011 with additional
information provided on December 20, 2012. Planning and Housing and Economic
Development staff reviewed the information for the 2011 reporting period and verified
that the property owner is in full compliance with Agreement requirements, including
affordable housing obligations (compliance reconfirmed in Spring 2012), the new art
installation in the courtyard, and provision of additional bicycle parking on site.
I
National Medical Enterprise (Viacom)
2700 Colorado Avenue
Agreement Effective: 4/16/1982
Expires: 4/16/2037
Amended: 1/1987; 4/1987; 511988
Reporting Period: 4/16/2011 to 4/16/2012
Full Compliance Confirmed
The project consists of a 5 -story, 312,000 square foot building with creative offices. The
site also contains a child care center, a public park, and a 1,000 space subterranean
parking garage.
Community Benefits Summary
• Provision of 30 affordable rental units, later amended to require the payment of a
$1,500,000 in lieu fee
• On -site child care center
• Payment of $25,000 to Santa Monica Arts Foundation
• Park of approximately 7,200 square feet to be open to the public during
reasonable hours
Status of Compliance
The required annual compliance report was received on April 25, 2012. Staff has
verified compliance with all Development Agreement requirements for the 2011 -2012
reporting period. In addition, the child care facility implemented enhanced outreach
efforts by hosting an open house for tenant employees to ensure the facility continues to
provide child care programming that meets the needs of first priority children of
employees who work at the project site. Accordingly, staff's final review of the
Agreement indicates that the property is in full compliance with all requirements.
N
Bavview CA Unlimited Partnership
(Sheraton Delfina Hotel)
530 Pico Boulevard
Agreement Effective: 6/29/1983
Expires: 12/1/2022
Reporting period: 6/29/2011 to 6/29/2012
Full Compliance Confirmed
This Agreement allowed for the 72,400 square foot expansion of an existing Holiday Inn
hotel. The development included the addition of 134 hotel rooms and 282 parking
spaces. The hotel is currently operated by the Sheraton Delfina.
Community Benefits Summary
Y Hiring priority to Ocean Park and Pico neighborhood residents, and then to other
City residents
6 Job Training Program, with priority given to Santa Monica High School Students
and City residents (requirement expired in 2011)
• Hotel Room Voucher Program (requirement expired in 1996)
• Free Hotel Parking with sign denoting this in parking area
• Valet parking tipping prohibition with sign denoting this in parking area
• Relocation of on -site, rent - controlled apartment buildings (five of these units were
subsequently converted through the TORCA process)
• $50,000 annual contribution to the Big Blue Bus for the Tide Shuttle operation
(expired in 2011)
• Six rent controlled units added to the existing building at 1920 6th Street
• Installation of public art piece approved by the Arts Commission
Status of Compliance
The required annual compliance report was received on October 11, 2012. Staff has
reviewed the annual report and determined that the property owner is in full compliance
with all reporting year requirements, including provisions addressing operational
requirements, community benefits, and fees.
E:3
During the reporting year, the hotel continued its commitment to both its Job Training
Program and local employment recruitment goal through partnerships and outreach with
organizations such as Santa Monica High School (Job Shadow Day), Santa Monica
College (Internship Job Fair), the Art Institute of California (Culinary School), and the
Santa Monica Chamber of Commerce (participation on the Education Committee).
Arboretum (Previously Colorado Place III)
2000 Colorado Avenue
Agreement Effective: 12/16/1987
Expires: 1/1/2042
Amended: 12/1988; 2/1995
Reporting Period: 12/16/2011 to 12/16/2012
Full Compliance Confirmed
This Development Agreement involves the construction of Phase III of Colorado Place,
a 12.7 acre parcel located on Colorado Avenue. The Agreement initially allowed for the
construction of 1,040,490 square feet of floor area, with a Floor Area Ratio of 1.85, and
allowed 25,000 square feet of restaurant space, 10,000 square feet of retail, 35,000
square feet medical office, 20,000 square feet for banks, up to 720,490 square feet for
commercial office space, a 270,000 square foot hotel, and 60,000 square feet for a
health club. However, subsequent modifications to the Development Agreement
removed the hotel as a permitted use, and allowed for a general market/grocery use
(not to exceed 50,000 square feet), and multi - family residential development with some
affordable units.
Community Benefits Summary
• TDM Program/Traffic Emission Abatement Program
• $721,318 Housing Parks Mitigation Fee
• $5,000,000 Traffic Improvement Fee
• On -site art installation
• $250,000 child care contribution
0
Status of Compliance
The property owner's annual compliance report was submitted on November 27, 2012.
In June 2012, the City's Housing Division verified compliance with the Development
Agreement's affordable housing requirements. After reviewing the remaining Agreement
terms, all of the supporting documentation provided to the City, staff has determined
that the Arboretum is in full compliance with Development Agreement fee payments,
remaining public benefits, and operational requirements.
Water Garden
162026 th Street & 2425 Olympic Boulevard
Agreement Effective: 3/23/1988
Expires: 3/2312043
Reporting Period: 3123/2011 to 3/23/2012
Full Compliance Confirmed
The project was constructed in two phases and consists of four, six -story buildings,
totaling approximately 1,259,577 SF. The development contains commercial office,
medical office, retail space, restaurants, health club, child care facility, and
subterranean parking for 4,035 vehicles. The development also includes an open
space area and man -made lake.
Community Benefits Summary
• $3,811,307 Housing and Parks Mitigation Fee payment
• On -site child care facility for 54 children
• TDM Program submitted annually to the City
• $6,408,486 Traffic Improvement Fee payment
• Annual preferential Parking District fee payment to cover permit and district
administration costs
• $150,000 fee payment to the Santa Monica Arts Foundation
• $300,000 fee payment to the City for homeless services
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t
The project was constructed in two phases and consists of four, six -story buildings,
totaling approximately 1,259,577 SF. The development contains commercial office,
medical office, retail space, restaurants, health club, child care facility, and
subterranean parking for 4,035 vehicles. The development also includes an open
space area and man -made lake.
Community Benefits Summary
• $3,811,307 Housing and Parks Mitigation Fee payment
• On -site child care facility for 54 children
• TDM Program submitted annually to the City
• $6,408,486 Traffic Improvement Fee payment
• Annual preferential Parking District fee payment to cover permit and district
administration costs
• $150,000 fee payment to the Santa Monica Arts Foundation
• $300,000 fee payment to the City for homeless services
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Status of Compliance
After reviewing the Agreement terms, all of the supporting documentation provided to
the City on May 30, 2012, staff has determined that the Water Garden is in full
compliance with all Development Agreement fee payments, public benefits, and
operational requirements.
Santa Monica College
Parking and Community Pool
1900 Pico Boulevard
Agreement Effective: 11/14/1989
Expires12 /31/2014
Amended /Restated: 1/1999; 12/2000
Reporting Period: 11/14/2011 to 11114/2012
Full Compliance Confirmed
This Development Agreement covers specific locations on the Santa Monica College
Campus, including 3 parking structures (A, B and C) and the Municipal Swimming Pool,
which is located on the northwest side of the campus.
The Municipal Pool Facility is a 28' tall building surrounded by an 18' sound wall.
Parking Structure B, with a total of 486 spaces, was approved for a maximum height of
30' and 165,000 square feet of gross floor area. The restated agreement lists parking
structures A and C as completed prior to the restatement, and are no longer included in
the Development Agreement terms.
The original Development Agreement between the City and the District was entered into
on November 14, 1989. Due to damage sustained in the Northridge earthquake, the
agreement was revised on January 12, 1999, to relocate a damaged parking structure
and rebuild the Municipal Pool Facility in its place.
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Community Benefits Summary
• Santa Monica Swim Center, a first class recreational facility open to the public
with guaranteed parking availability at peak hours
• Improved circulation for neighborhood, with relocated traffic signals and 16th
Street parking structure rebuilt as exit only with right turn toward Pico Boulevard
• Earthquake- damaged parking structures replaced to meet needs of college
community and to reduce impacts on neighborhood
Status of Compliance
The required annual compliance report was received by staff on August 10, 2012. A
Joint Operating Agreement between the City and the Community College District
regulates parking for pool users as well as hours of operation, staffing requirements,
and maintenance. The property owner is in full compliance with all Development
Agreement community benefits and operational requirements.
Maguire Thomas
1733 Ocean Avenue
Agreement Effective: 10/18/1990
Expires: 10/1812045
Amended: 1211995
Reporting Period: 10/18/2011 to 10/18/2012
Pending Administrative Modification Request
]749
The Agreement for the property at 1733 Ocean Avenue authorizes construction of a
four -story, 56 foot tall commercial development. It allows for a 68,040 square foot
building, including a maximum 5,983 square foot/250 seat restaurant and a maximum of
8,040 square feet of retail space. Three levels of subterranean parking provide 267
parking spaces.
Community Benefits Summary
® $250,000 contribution to the Civic Center /Oceanfront Improvement Special Fund
$403,399 Housing and Parks Impact Mitigation Fee
• $820,854 Affordable Lodging Mitigation Fee
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Status of Compliance
City staff received the annual Development Agreement Monitoring Report from the
property owner on July 17, 2012. Based on staff's review of the Agreement and a site
visit, the property is in compliance with the provisions of its Development Agreement
with one exception that pertains to use of on -site parking spaces. Currently, 50
subterranean parking spaces are being used by off -site parties for vehicle storage and
for after -hours overflow parking from nearby hotels. While the concept of shared parking
between different uses is generally supported when no impacts are created for on -site
tenants, there is no provision in the Development Agreement to allow the lease of
parking spaces to off -site parties.
The property owner has been notified that this activity is not permitted and is in the
process of seeking an administrative modification to allow the leasing of the 50 spaces
until Spring 2014. Pending the property owner's submittal of a current parking utilization
study to demonstrate that there is sufficient parking available to meet on -site tenants'
parking demand, staff will review the request in accordance with Agreement terms that
allow for minor changes to the project and project site plan. Submittal of this additional
information is required by January 31, 2013. Such an administrative approval would
need to be based on a finding that the proposed project change is not detrimental to the
public health, safety, convenience or general welfare, and will not adversely affect the
architectural integrity of the project and public benefits associated with the project.
Saint John's Health Center
132822 nd Street
Agreement Effective: 6/911998
Amended: 7112/2011
Expires: 6/9/2053
Reporting Period: Calendar Year 2011
(compliance reports are due annually in July for the
preceding calendar -year reporting period)
Full Compliance Confirmed
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As amended in July 2011, the Saint John's Health Center Development Agreement
grants approval for construction of new hospital facilities that would occur in two
phases. Phase I consists of vested rights, subject to extension, for the construction of a
new 475,000 square foot hospital:
• Below -grade central plant
• Inpatient Center (205,000 SF & maximum height of 75 feet)
• Outpatient and Diagnostic & Treatment Center (265,000 SF & maximum height
of 58 feet) with ambulance entrance and North Lawn
• Provide on- and off -site parking to meet peak facility demand and construct an
Entry Plaza on Santa Monica Boulevard
Phase II has a 17 -year vested rights term, subject to extension, to implement a health
center master plan with sufficient floor area for health care - related uses and parking as
outlined in the Agreement; the City retains broad discretion to review future applications
for Phase II buildings. Key components include:
• Permit construction of up to 799,000 square feet of hospital and hospital - related
development with maximum building heights ranging from 70 -95 feet
• Requires approval of a South Campus Master Plan prior to approval of any
Phase II buildings
• Development Review Application required for Phase II buildings
• CEQA determination /review required for Phase II buildings
Community Benefits Summary
• Community Benefit Program and Annual Plan: Program to support the health
and well -being of Santa Monica residents and community; the annual plan
summarizes benefits provided and economic valuation.
Calendar year 2011: Saint John's Health Center provided services and cash
support equal to $10,196,637 in 2011 plus an additional $34,443,939 in
unreimbursed Medicare costs.
Based on the 2011 community benefit data self - reported from non - profit Catholic
hospitals throughout the state to California's Office of Statewide Health Planning
and Development (OSHPD), the average dollar value of community benefits
provided by these facilities in 2011 was $35,503,434. Saint John's Health Center
reported $44,640,576 for 2011, a value that exceeds the average value of
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benefits provided by other non - profit Catholic general acute hospitals that self -
reported data to OSHPD by more than 25 %.
• Santa Monica Community Access Plan: A component of the annual
Community Benefit Program requiring the following health service activities:
• In -kind and cash support to local non - profit agencies that service Santa
Monica residents and to the Santa Monica Malibu Unified School District
• Charitable medical and mental health services provided to patients that are
clients of and directly referred by local non - profit organizations
• Charitable medical and mental health services provided to patients that are
students and directly referred by the School District
• Free community services available to the general Santa Monica community
that promote health education and preventative health services
Annual minimum level of support: $732,000 dollar value subject to 1.5%
compounded annual adjustment ($888,320 required for calendar year 2011).
Saint John's Health Center provided health services valued at $5,742,751 during
calendar year 2011 through its Santa Monica Community Access Plan, an
amount that is over five times greater than its 2011 annual requirement.
• Child Care Program: provide a minimum of 49 full -day child care for employees
and the community; 21 of these spaces must be infant/toddler care
• North Lawn: 41,000 SF public open space, including landscaping and walkways
• Off -site traffic mitigation improvements: payment of a minimum of $332,000
in fees to the City to construct improvements
• Off -site public works improvements: payment of $641,000 in fees to the City
in July 1998 to construct sidewalks, curbs, streetlights, and street paving in the
project area .
• Transportation Demand Management Program: enhanced by First
Amendment
• Light rail shuttle: 15 -month requirement to operate shuttle to /from Memorial
Park Station (required by First Amendment)
• Off -site transit improvements: $100,000 Contribution for Memorial Park light
rail station upgrades paid to the City in December 2012 (required by First
Amendment)
• Neighborhood protection measures: 11 requirements including establishing a
community Ombudsperson, providing a reduced valet rate for parking 90 minutes
or less, and paying for installation of a crosswalk at 21st Street/Arizona Avenue
(required by First Amendment)
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Status of Construction
Phase One construction is nearing completion with the Entry Plaza on Santa Monica
Boulevard anticipated to be open for use during the first quarter of 2013. Per the
amended Development Agreement, the Phase One vesting period deadline was
December 31, 2012. A seven -month administrative extension of the Phase One vesting
deadline to July 31, 2013 was approved because of construction delays that have
resulted from reduced staffing at the State of California's Office of Statewide Health
Planning and Development ( OSHPD). OSHPD is responsible for reviewing and issuing
building permits for the hospital property. Issuance of building permits from OSHPD for
the Entry Plaza and associated work took approximately 20 months. This extended
OSHPD review period necessitated the need for the extension of the Phase One
vesting period deadline and is permitted by the Amendment Development Agreement
with the City based on a showing of good cause.
Status of Compliance
With respect to compliance with Development Agreement terms for the 2011 calendar
year review period, the required annual compliance report was received from Saint
John's Health Center on June 28, 2012.
The hospital held its first annual community meeting to discuss Development
Agreement compliance on July 12, 2012; there were approximately 14 members of the
public in attendance. Following the meeting, the hospital's Community Ombudsperson
provided staff with a summary of the issues and questions discussed at the meeting;
examples include employee behaviors in the neighborhood (smoking, handicap placard
use, jay - walking), core drilling at the facility during the week of July gth, gardeners
working before 8:00 am, availability of Ombudsperson contact information, protocol for
transferring phone calls to the Ombudsperson, employees parking at the US Bank
property at night, use of ambulance sirens, and delivery truck routes. Saint John's
Health Center has provided periodic updates to staff on how the hospital is addressing
these issues and also distributed a community update mailer to the neighborhood in Fall
2012 summarizing their efforts.
IN
Staff has reviewed the Development Agreement, all of the supporting documentation
provided to the City for the 2011 reporting year, and conducted a site visit during the
annual review period. Based on this review, staff has determined that Saint John's
Health Center is in full compliance with the terms and conditions of its Development
Agreement.
While not related to the 2011 annual review period, Saint John's Health Center recently
notified the City that the hospital received a 120 -day written notice from Equity Office's
parking operator, Standard Parking, to cancel the Parking License Agreement for all
spaces leased by Saint John's Health Center at Colorado Center (formerly Yahoo
Center) effective March 31, 2013. Based on this notification, Saint John's Health Center
has initiated the process specified in Section 2.2 of the First Amendment to the
Development Agreement which sets forth procedures for City review and approval of an
alternative parking arrangement to meet the parking demand generated from Saint
John's Health Center employees, patients, and visitors.
Finally, in response to an issue that arose during the First Amendment hearings in
2011, staff implemented a program to increase parking options for residents in the
vicinity of Saint John's Health Center. The City has changed parking meter regulations
on 23`d Street between Arizona Avenue and Santa Monica Boulevard and on Arizona
Avenue between 22nd and 23`d Streets. Vehicles displaying valid Zone 4 permits may
now park at these meters for free and may park longer than the two hour limit. Street
sweeping restrictions and the two block limitation on parking permit usage still apply.
This change is being implemented as a pilot program and is subject to future
modifications based on community feedback and parking occupancy data.
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Rand Corporation
1776 Main Street
Agreement Effective: 11/2312000
Expires: 11/23/2055
Reporting Period: 11123/2011 to 11/23/2012
Full Compliance Confirmed
The Rand Corporation Agreement involved the demolition and remediation of the
existing buildings on the 3.7 acre project site located at 1776 Main Street and the
construction of a 308,869 SF headquarters for Rand Corporation. The new five -story,
69' tall building houses research - related facilities, management, staff cafeteria, fitness
room, and meeting /conference rooms. Parking is provided in a four - level, 825 -space
subterranean parking garage.
Community Benefits Summary
• Land dedication and construction of Vicente Terrace
O Land dedication for Main Street Circle should this be constructed
• TDM Program implementation
• Policy Analysis Partnership on Childhood Development and Education including
pursuing research funding for early childhood development
® Early Childhood Development Research, including organizing conferences and
maintaining a child policy website, www.promisingpractices.com
• $500,000 contribution to Early Childhood Development Programs /Early Childcare
Education in the Civic Center
Status of Compliance
The required annual compliance report was received by staff on November 8, 2012.
The City Council approved an amendment to the Development Agreement in August
2012 to allow a conversion of approximately 18,216 square feet of parking garage into
17,300 square feet of usable work space. No additional compliance requirements
resulted from this amendment. Based on staff's review of the amended Development
In
Agreement, the property owner is in full compliance with all required fee payments,
public benefits, and operational requirements.
Lantana East
3030 Olympic'Boulevard
Agreement Effective: 10/28/2004
Expires: 10 /28/2024
Amended: 8/2008
Reporting Period: 10/28/2011to 10/28/2012
Full Compliance Confirmed
EUkI]
3000
Lantana East consists of a 3 -story, 64,105 SF building containing entertainment
production /post - production studio space and a total 433 parking spaces provided in a
subterranean parking garage and surface lot.
Community Benefits Summary
• $356,200 joint use improvement fee for improvements to Edison School, plus
$35,600 paid annually for 5 years (requirement shared with Lantana South)
• $266,650 childcare contribution
• $90,000 arts fee
• New public restrooms at Stewart Park
• Construction of neighborhood traffic protection & off -site roadway improvements
Status of Compliance
The required annual Development Agreement Compliance Report was submitted on
July 20, 2012 for the 2011 -2012 reporting year. Based on staff's review of the
Agreement, the project has been determined to be in full compliance with all
Development Agreement fee payments, public benefits, and operational requirements.
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Lantana South
3131 Exposition Boulevard
Agreement Effective: 10/28/2004
Expires: 10/28/2024
Amended: 812008
Reporting Period: 10/28/2011 to 10/28/2012
Full Compliance Confirmed
Lantana South consists of a 3- story, 130,000 SF building for entertainment
production /post- production studio space with a total of 456 parking spaces located within a
subterranean garage and surface lot.
Community Benefits Summary
• $356,200 joint use improvement fee for improvements to Edison School, plus
$35,600 paid annually for five years (requirement shared with Lantana East)
• $133,350 childcare contribution
i $60,000 arts fee
• Off -site roadway improvements
Status of Compliance
An annual Development Agreement Compliance Report was submitted in October
2012. As required by its Development Agreement, the Applicant has implemented
neighborhood traffic protection measures in the neighborhood area bounded by
Exposition Boulevard, Virginia Avenue, Stewart Street, and Centinela Avenue to
mitigate potential traffic generated by the project. Measures included curb extensions
with new landscaping, and wedge- shaped physical barriers at intersections. As part of
the process established by the Development Agreement, the Applicant provided a traffic
study with these measures in place once the Lantana South Building was occupied in
order to review the effectiveness of these measures.
The study compared the projected project traffic identified in the Certified Supplemental
EIR with the actual traffic resulting from the project. In accordance with the Agreement,
20
a community meeting was held in Fall 2011 to discuss the findings of the study, and to
obtain resident opinion on the traffic measures.
As part of the evaluation process established by the Development Agreement, staff will
be reporting to Council in early 2013 with the study findings and residents' feedback
regarding the neighborhood traffic protection measures implemented for the project.
Based on staff's review of property, the Applicant is in full compliance with all
Development Agreement fee payments, public benefits, and operational requirements.
Projects Under Construction
Saint Monica's Catholic Community
725 California Avenue
Agreement Effective: 5/27/2010
Expires: 5/27/2030
Project Under Construction
The Saint Monica's Catholic Community Development Agreement consists of
construction of a single -phase Campus Enhancement and Parking Improvement Plan
on St. Monica's property. The project includes the following key components:
• Demolition of existing Pastoral Center
• Construction of a new Community Center (27,500 square feet) with three levels
of subterranean parking (154 parking spaces)
• Construction of a 7,700 square foot, six classroom addition to the High School
East building
• Renovation of the existing auditorium, gymnasium and other facilities
Community Benefits Summary
• TDM Program for students, employees, and parishioners
• Shared parking allowing neighborhood use of 15 parking spaces located at the
off -site surface parking lot at 1140 7th Street during off -peak hours
21
F
The Saint Monica's Catholic Community Development Agreement consists of
construction of a single -phase Campus Enhancement and Parking Improvement Plan
on St. Monica's property. The project includes the following key components:
• Demolition of existing Pastoral Center
• Construction of a new Community Center (27,500 square feet) with three levels
of subterranean parking (154 parking spaces)
• Construction of a 7,700 square foot, six classroom addition to the High School
East building
• Renovation of the existing auditorium, gymnasium and other facilities
Community Benefits Summary
• TDM Program for students, employees, and parishioners
• Shared parking allowing neighborhood use of 15 parking spaces located at the
off -site surface parking lot at 1140 7th Street during off -peak hours
21
• Availability of a community meeting space to city departments, community
groups, and nonprofit organizations
• Public use of the Bookstore /Coffee Bar during all operating hours
Status of Construction
The St. Monica's Catholic Community project is under construction with completion of
the Community Center building anticipated in late 2013. Applications for Architectural
Review Board consideration of the project's second phase, consisting of courtyard
landscaping, surface parking re- striping, and the high school addition, will be submitted
in early 2013.
St. Monica's Catholic Community is in full compliance with Agreement requirements that
are required during the construction phase. For example, St. Monica's has complied
with the beginning stages of their LEED Silver requirement as demonstrated during the
plan check process and is operating in compliance with their required construction
mitigation plan that was reviewed and approved by the City prior to building permit
issuance. Staff's review of compliance with terms for the 2012 -2013 reporting year will
be provided to Council in January 2014.
Agensys
1800 Stewart Street
Agreement Effective: 10/2812010
Expiration: at termination of ground lease
Project Under Construction
The Agensys Agreement permits a project including the following key 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
22
• 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
• 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
Community Benefits Summary
• Publicly accessible pedestrian path
• Publicly accessible passive open space along Stewart Street
• Widened sidewalk along Stewart Street
• Cafe open to pedestrians during limited daytime hours
• TDM Program geared to the project site's location within a "Higher Goal" District
designated by the LUCE
• Sculpture garden with up to 10 sculptures adjacent to the pedestrian path
• Local hiring program including a job fair and a local hiring policy
• Student internship program
• Student tours
• Signage and way- finding system
• Shared parking for events at Bergamot Station
• Continued community outreach
• Transit contribution toward improved transit infrastructure focused on bicycle
access at the light rail station
Status of Construction
Construction for the Agensys project began in Spring 2011. It is anticipated that the
facility will open in early 2013. The Applicant is in full compliance with Agreement
requirements applicable to the construction phase, including payments of $70,350 for
the project's required Bergamot Station Transit Infrastructure Contribution and $20,000
for and bicycle access improvements in the area. Staff's review of compliance with
terms for the 2012 -2013 reporting year will be provided to Council in January 2014.
23
The Village
1725 Ocean Avenue
Agreement Effective: 5/27/2008
Expires: 12/31/2028
Project Under Construction
The Village development provides six residential buildings with approximately 324
residences, and approximately 20,000 square feet of commercial retail on three
separate development sites. The following summarizes key project components:
Site A:
• Two condominium buildings, with ground floor retail on Ocean Avenue
• Olympic Drive and Main Street frontages with approximately 66 residences
• Maximum 65' building height
• 109,346 gross square feet (GSF) of residential and 9,930 GSF of retail uses
• 180 parking spaces
Site B:
• Four affordable apartment buildings with ground -floor live /work space
• Approximately 28 one - bedroom, 56 two - bedroom, and 66 three - bedroom units
• 10 affordable units of live /work space intended for artists
• Maximum 60' building height
• 191,549 GSF
• 197 parking spaces
Site C:
• One condominium building with ground floor retail
• Approximately 98 one - bedroom and 98 two - bedroom residences
• Maximum 96' building height
• 159,288 GSF of residential and 7,400 GSF of retail uses
® 237 parking spaces
24
Status of Compliance
The project is currently under construction with completion anticipated by January 2014.
The Village project is operating in full compliance with Agreement requirements for the
project's construction phase. Examples of these requirements include work in progress
for the extension of Olympic Drive; implementation of the Ocean Avenue median design
process; and work performed in compliance with the required construction mitigation
plan. Staff's review of compliance with terms for the 2012 -2013 reporting year will be
provided to Council in January 2014.
702 Arizona Avenue
Agreement Effective: 12/8/2011
Expires: 12/8/2021
Project Under Construction
,3,5
The Development Agreement for 702 Arizona Avenue authorizes construction of a new,
four -story mixed -use building with approximately 6,276 SF of neighborhood - serving
commercial space on the ground floor, 49 residential units on the upper floors, and two
levels of subterranean parking.
Community Benefits Summary
• TDM Program that includes secure bicycle storage for residents, employees, and
visitors
• $50,000 contribution towards transit infrastructure in the Downtown area
O Infrastructure for potential future installation of electric vehicle charging stations
• Achievement of a minimum LEED Silver certification or a demonstrated
equivalent sustainable design status
• Local hiring program
• Urban design features including a small pedestrian courtyard and walkway
25
Status of Construction
The project is currently under construction with completion anticipated by February
2014. The property owner is operating in full compliance with Agreement requirements
for the project's construction phase. Examples of these requirements include work in
progress for compliance with sustainable design requirements; implementation of local
hiring program goals; and work performed in compliance with the required construction
mitigation plan. Transit, Cultural Arts, and Childcare contributions have been paid.
Staff's review of compliance with terms for the 2012 -2013 reporting year will be
provided to Council in January 2014.
1317 7'h Street
Agreement Effective: 12/8/2011
Expires: 12/8 /2021
Project Under Construction
��„
This Development Agreement authorizes construction of a new, five -story mixed -use
building with approximately 2,929 SF of neighborhood - serving commercial space on the
ground floor, 57 residential units on the upper floors, and two levels of subterranean
parking.
Community Benefits Summary
• One extra on -site affordable housing unit
• TDM Program with secure bicycle storage for residents, employees, and visitors
• $50,000 contribution towards transit infrastructure in the Downtown area
• Infrastructure for potential future installation of electric vehicle charging stations
• Achievement of a minimum LEED Silver certification or a demonstrated
equivalent sustainable design status
• Local hiring program
• Urban design features including a small pedestrian courtyard and walkway
I'
Status of Construction
The project at 1317 7th Street is currently under construction with completion anticipated
by February 2014. The property owner is operating in full compliance with Agreement
requirements for the project's construction phase. Examples of these requirements
include work in progress for compliance with sustainable design requirements;
implementation of local hiring program goals; and work performed in compliance with
the required construction mitigation plan. Transit, Cultural Arts, and Childcare
contributions have been paid. Staffs review of compliance with terms for the 2012-
2013 reporting year will be provided to Council in January 2014.
Update on Projects Not Under Construction
Colorado Creative Studios
2834 Colorado Avenue
Agreement Effective: 9/22/2011
Expires: 9122/2026
Compliance Not Required at this Time
This Development Agreement authorizes the construction of a four -story, 191,982
square foot mixed -use creative arts /entertainment production building over a three -level
subterranean parking garage with up to 640 parking spaces. The site includes
landscaping and seating areas and the building also features ground floor neighborhood
serving uses.
Community Benefits Summary
• Dedicated 62 -foot wide surface easement for the extension of Pennsylvania
Avenue and construction of roadway, curb, and gutters
• Contribution to Expo station enhancement at Bergamot of approximately
$363,000
• Widened sidewalks along Stewart Street to enhance the pedestrian environment
• Community cafe
27
• Internships to Santa Monica College students or Santa Monica residents
• Shared parking program
• TDM Program implementation
• Local hiring program for construction - related jobs
Status of Compliance
Since this project has not advanced to issuance of a building permit, public benefits
have yet to be realized and there are no compliance issues to report.
401 Broadway
Agreement Effective: February 9, 2012
Expires: February 9, 2022
Compliance Not Required at this Time
0
This Development Agreement was approved by Council on January 10, 2012 and
authorizes construction of a new, five -story mixed -use development project consisting of
56 residential units and 4,159 SF of ground floor commercial space.
Community Benefits Summary
• TDM plan with measures applicable to both the commercial and residential
components of the project
Y $125,000 contribution for transit /circulation infrastructure in the Downtown area
• Ground floor arcade that enhances the adjacent sidewalks providing additional
space for pedestrians at the street corner
• One on -site affordable housing unit exceeding the minimum five units required
6 Minimum LEED Silver certification per the LEED Rating System or a
demonstrated equivalent sustainable design status
• Roof - mounted photovoltaic solar panels
6 Local hiring provision to facilitate the employment of local workers . during
construction
Status of Compliance
The 401 Broadway project has not advanced to issuance of a building permit, therefore,
public benefits have yet to be realized and there are no compliance issues to report. An
amendment to the Development Agreement was filed in May 2012 to revise the project
to include residential parking on site in a subterranean garage. This amendment is
anticipated to be reviewed by Planning Commission and Council during Spring 2013.
710 Wilshire Boulevard
Agreement Effective: May 10, 2012
Expires: May T0, 2022
Compliance Not Required at this Time
fiIt
12V
im
This Development Agreement was approved by Council on May 10, 2012 and
authorizes adaptive re -use of a six -story Landmark building located at 710 Wilshire
Boulevard for a new hotel with 55 rooms and 6,950 SF of ground floor retail /restaurant
space. The project also includes construction of new six -story hotel building on site with
230 rooms; 8,700 SF of ground floor retail /restaurant; a ground floor, open -air paseo;
and up to 325 subterranean parking spaces. The project also includes a living wage
provision, including health benefits, for covered hotel workers.
Community Benefits Summary
• Preservation and rehabilitation of a City Landmark building
• TDM Program that includes a 1.75 AVR target for employees of the project
achieved by the third year after the City's issuance of a certificate of occupancy,
bicycle parking for employees and guests, shared bicycles for guest use, and
transit subsidies for employees
• $244,000 transportation infrastructure fee
• Bicycle sharing area
• Electric vehicle infrastructure in parking garage for 30 electric vehicles
• Provide meeting space for non - profits and community organizations on a
reduced cost basis at least 12 times a year
29
• Paid internship program for at least two Santa Monica residents who attend
Santa Monica High School or Santa Monica College
• Local hiring for permanent and construction employees
Status of Compliance
The 710 Wilshire Boulevard project has not advanced to issuance of a building permit,
therefore, public benefits have yet to be realized and there are no compliance issues to
report.
15486 th Street
Agreement Effective: November 22, 2012
Expires: November 22, 2022
Compliance Not Required at this Time
6)1
The 1548 6th Street Development Agreement was approved by Council on October 23,
2012 and authorizes the conversion of 3,038 square feet of non - usable space into four
residential units within an existing mix -use, market -rate rental housing project.
Community Benefits Summary
• One (1) one - bedroom deed - restricted very low income unit
• TDM Plan with measures that include a 1.75 AVR by the second year after
Certificate of Occupancy issuance
• $75,000 contribution towards transit and circulation infrastructure in the
Downtown area prior to issuance of a Certificate of Occupancy
• Residential tenant bicycle repair station and bicycle racks
30
Public Outreach
The Code requires that that the City provide at least 10 days' notice to the Developer or
successor -in- interest of the City Council's scheduled meeting to review the
Development Agreement. This notice has been provided.
Next Steps
Staff will continue its ongoing Development Agreement compliance review; reports will
be made to Council annually in January.
Financial Impacts & Budget Actions
All fees associated with constructed Development Agreements have been paid to date.
The recommendations presented in this report do not have any direct budget or fiscal
impact.
Prepared by: Roxanne Tanemori, AICP, Senior Planner
Approved:
avid Martin
Director, Planning & Community
Development
Attachments
Forwarded to Council:
Rod Gould
City Manager
A. TDM Program elements included in Development Agreements since 2010
31
Attachment A: TDM Program elements included in Development Agreements since 2010
Development
Average
Bicycle Parking &
Transportation
Light
Transportation
Shared Parking
E rking CashoutI
Agreements
Vehicle
Amenities
Fee
-Rail
Management
Facility
Financial Incentives - and - Transit
Ridership
Shuttle
Association (TMA)
Coordinator
Target (AVR)
I
Colorado 1.5 AVR
117 bicycle parking
•Establish and
Provides shared
•Yes
Center 1.6 AVR
spaces
operate facility-
parking facility
•Yes
with light rail
(2011)
wide TMA
Saint John's 1.5 AVR
• 90 bicycle parking spaces
$100,000
Required
Co -lead TMA
Utilizes off -site
• Yes
Health Center
• 1.6 AVR
j Shower & locker
18 -month
formation in
shared parking
• Yes
shuttle
Healthcare District
facility
2011 with light rail
( )
Space for future bicycle
operation
o p
( Fund TMA study
sharing station -
Participate in
j
future Healthcare
District TMA
Saint Monica's • 1.5 AVR
• 50 bicycle parking spaces
•Assist in formation
Provides shared
•Yes
Catholic
of geographic-
parking facility
Community
•Shower &locker
based TMA if City
•Yes
�', (2010)
requires
Participate in
!!
1 future geographic-
based TMA
I I
Agensys ! • 1.6 AVR '!, • 25 bicycle parking spaces
$75,000
•Participate in
ermitted to
Yes
future geographic-
are parking in
[sh
• 1.75 AVR Shower &locker
(2010)
_
based TMA
utu re
•Yes
with light rail
Colorado 1.6 AVR 64 bicycle parking spaces $363,200
Creative
•Participate in
future geographic-
Provides shared •Yes
parking facility
Studios • 1.75 AVR Shower & locker
based TMA
• Yes
(, with light rail j
• Space for future bicycle
(2011) 1
!,
sharing station
j
!, 702 Arizona i 1.75 AVR • 63 bicycle parking spaces $50,000
• Participate in
Permitted to Yes
Avenue by third year of
future geographic -
'� share parking in
occupancy Shower & locker
based TMA
I future Yes
(2011)
!,
13177`" Street 1.75 AVR 67 bicycle parking spaces
$50,000 - • Participate in
I Permitted to Yes
by third year of
future geographic-
share parking in
(2011) occupanc Y Shower &locker
based TMA
future Yes
Development
Average
Bicycle Parking &
Transit Fee
Light
Transportation
Shared Parking
Employee"Parking Cashout%
Agreements
Vehicle
Amenities
Rail
Management
' Facility
Financial Incentives- and - Transit
Ridership
Shuttle
Association (TMA)
Coordinator /Information Center
Target(AVR)
401 Broadway
AVR 89 bicycle parking spaces
$125,000
Participate in
We
• Yes
Fbh, d yeaoffuture
• Shower & locker
geographio-
(financial incentives)
(2012)
ancy
based TMA
•Yes
710 Wilshire
1.75 AVR 64 secure bicycle parking
$244,obo
Assist in formation
Permitted to
• Yes
Boulevard -
(.
by third year of spaces (employees) and
of geographic-
share &
occupancy bicycle check for hotel
based TMA if City
unbundle parking
• Yes
(2012)
guests
requires
in future
16 guest bicycle parking
- -
spaces
-
' - • 20 bicycles for shared use
by hotel guests (or provide
j
( vouchers)
1548 fi Strom
1.75 AVR 108 secure bicycle
$75,000
• Participate in
Permitted to
(2012)
by second year of parking spaces for
occupancy ( residents
future
geographic -based
share &
unbundle parking
Yes
(transit information center)
TMA
in future
• 28 publically accessible
spaces
• Residential tenant bicycle
i
repair station
i I
i