SR-11-11-2014-7ACity Council Meeting: November 11, 2014
Agenda Item:
To: Mayor and City Council
From: David Martin, Director, Planning and Community Development
Subject: Introduction and first reading of an Ordinance adopting Development
Agreement 12DEV008 to allow a 32,088 square -foot, 32 -unit multi - family
residential development at 1112 -1122 Pico Boulevard.
Recommended Action
Staff recommends that the City Council:
1. Approve Development Agreement 12DEV -008 to allow a 32,088 square -foot, 32-
unit multi - family residential development at 1112 -1122 Pico Boulevard.
2. Introduce for first reading an Ordinance adopting Development Agreement
12DEV008.
Executive Summary
The applicant, Pico Eleven, LLP (Peter Bohlinger), proposes a Development Agreement
to allow a new 32,088 square -foot, 45- foot -tall residential building consisting of 32 rental
units (all two- bedroom units) at 1112 -1122 Pico Boulevard. The two -level subterranean
parking garage consists of 64 parking spaces. The project site is approximately 18,978
square feet, and located in the High Density Multiple Family Residential (R4) Zoning
District.
The Land Use and Circulation Element (LUCE) sets forth development parameters and
a tier system which allows graduated height and floor area ratio (FAR) standards. This
project exceeds the Tier One threshold of the High Density Housing designation on Pico
Boulevard which has a height of 30 feet and 35 dwelling units per acre density
limitation. The applicant proposes a project with a height of 45 feet and 48 dwelling units
per acre, density, which are the maximum limitations of a Tier Two project. Therefore,
pursuant to the City's Interim Zoning Ordinance (IZO) No. 2466 (CCS), this project
requires a Development Agreement. Council has determined priority categories for new
projects, which includes Tier 2 projects. The proposed project qualifies as a priority
category project as it complies with the Tier 2 parameters set forth in the LUCE.
The proposed use is consistent with the property's High Density Multiple Family
Residential (R4) district and High Density Housing land use designation. Project
development compliance is limited to the LUCE, while other aspects of the project such
as height, lot coverage, setbacks, and other standard zoning requirements would be
established by the Development Agreement.
Background
The project site is located on the south side of Pico Boulevard between 11th Street and
Euclid Street in the R4 district. The project site consists a vacant lot; it previously
contained 15 rent - controlled residential dwellings, which were removed from the rental
market pursuant to the Ellis Act and demolished in 2008. Adjacent uses along Pico
Boulevard include a motel and residential development. The project site encompasses
an approximate 160 -foot length along Pico Boulevard with an approximate 15- foot -10-
inch grade differential (11.5 percent slope) from east to west.
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Project Analysis
Proiect Description
The proposed project consists of a 32,088 square -foot, 45- foot -tall residential building
consisting of 32 rental units (all two- bedroom units) at 1112 -1122 Pico Boulevard. The
building would contain 4 very-low income units to be governed by City's Affordable
Housing Production Program and 11 price- restricted units with the initial rent for these
units established by the applicant without restriction, but subsequent rent increases
during the term of any tenancy only authorized once annually in accordance with the
consumer price index (CPI). The two -level subterranean parking garage consists of 64
parking spaces. The project site consists of approximately 18,978 square feet.
The proposed building has been designed to step down from east to west similar to the
property's slope along the front of Pico Boulevard. The building has been designed in
three vertical elements to follow the slope of the lot with the building dropping down
from four stories at the east, to three stories in the middle, and two stories on the lower
(west) side of the street frontage. The proposed building design is
modern /contemporary. The proposed building fagade materials are brown wood siding
with brown wood guardrails on the balconies with blue metal panels and glazing on all
four elevations. The front elevation features a widened sidewalk and a pedestrian
entrance (entry court) into the lobby of the building. The massing of the building is
divided into three vertical elements with two courtyard spaces open to Pico Boulevard.
The courtyards on the first floor are 3,654 square -feet combined. The upper - floors
feature communal roof decks that provide additional open space for the tenants of the
building.
The proposed ground floor design includes pedestrian access for residents and guests
into the lobby from Pico Boulevard, which leads to two ground floor units, an elevator to
the other levels of the building, and the pedestrian and bicycle access to the parking
garage. The vehicle entrance to the project would be accessed from Pico Court (alley),
which would include a car share parking space, 6 guest parking spaces, and 57 parking
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spaces for residents. A minimum of the two residential parking spaces would be
stubbed out for future electrical vehicle (EV) charging.
Proiect Design
The proposed project consists of a four -story, 45- foot -tall building along the south side
of Pico Boulevard. The property is located in the R4 Zoning District, which extends from
11th Street to Euclid Street. Within this segment of Pico Boulevard, buildings range in
height from one story to three stories. The three story developments are typically two
stories of residential above one story of parking. The subject property is situated
between a one -story residential building on the east and a one -story motel building on
the west. The project is proposed at four stories on the east and drops down to two
stories on the west, which follows the slope of the property. During the Architectural
Review Board (ARB) conceptual review, a three -story building was presented by the
applicant; however, the ARB expressed concerns with usablity of the open space and
courtyard areas and less concern with the height of the project. Therefore, the building
was redesigned to include a limited fourth floor in order to reduce the parcel coverage
on the first and second floor and provide larger courtyard areas. Staff believes the new
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design is an improvement from the prior design in that the larger courtyards proposed
are visible from the street. The 18,978- square -foot project site is similar in parcel size
with three other large parcels in the vicinity along Pico Boulevard including 1125 Pico
Boulevard (approximately 14,360 square feet), 1206 Pico Boulevard (18,250 square
feet), and 1211 Pico Boulevard (9,800 square feet), each of which contain large
apartment buildings. However, it is difficult for a four -story building on three combined
lots to exist in complete harmony with single -story buildings on single lots on each side
of the project site. The applicant has proposed a design that helps break up the
massing into three verticle elements to address this concern.
R4 Section of Pico and Surrounding Development
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Pedestrian Orientation
The existing sidewalk along Pico Boulevard adjacent to the project site is 8- feet -wide.
The applicant, in an exchange for encroaching into the required 20 -foot front setback by
8- feet -6- inches, is providing an additional 7 feet of sidewalk for public use. The total
sidewalk width adjacent to the project site would be 15 feet. The neighborhood
development pattern consists of a 0- to 11- foot -6 -inch front setbacks. The project would
appear to have a 3- foot -6 -inch front setback beyond the 8 -foot widened sidewalk;
however, the building would technically be set back 11- feet -6- inches from the property
line.
Circulation and Open Space
The property contains a 15- foot -10 -inch change in grade along the front property line,
which presents pedestrian access challenges to the site. The applicant has designed
the ground floor on the west side of the proeprty with a pedestrian walkway (entry court)
toward the lobby where residents and guests would have access to two ground floor
units, long term bicycle parking, and the vehicle parking garage. A courtyard area sits
above the lobby and would overlook the entry court area. The applicant has designed a
second pedestrian entrance to the site at the east courtyard, which is at the same level
as the sidewalk and the same level as the west courtyard that sits above the lobby.
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Circulation within the develoment flows around the courtyards. Also, with this design,
hallways are not double loaded, so the upper -level units have an opportunity for cross
ventilation by opening the windows. Three of the four floors have usable open space
including the courtyard level and the upper two floors contain large roof decks. The
project contains 3,654 square -feet of usable courtyard open space, 4,297 square -feet of
usable roof deck open space area, and 3,390 square -feet of private open space, which
totals 11,341 square -feet of usable open space within the project site.
Sustainable Design Features
The applicant has proposed a residential building to be designed with sustainable
features in order to achieve LEED® Platinum certification. Examples of the sustainable
features include large courtyards to allow for natural light into the units, cross - ventilated
units, photovoltaic panels located on the roof to generate energy for the building, and
electric vehicle (EV) charging stations for a minimum of two parking spaces.
►/
Vehicle and Bicycle Parking
The residential building consists of 32 two - bedroom units. Persuant to the Zoning
Ordinance, two parking spaces are required for a two - bedroom unit, with one guest
parking space for every five units. Therefore, the required parking for 32 -unit building of
all two- bedroom units is 70 parking spaces. However, in a density bonus project, the
code allows for "by- right' incentives which would allow for tandem parking and there is
no requirement for guest parking. Furthermore, the four affordable units require 1.5
parking spaces per unit. Therefore, a project outside of a Development Agreement
would only need to provide 62 parking spaces (56 for the 28 market rate units and six
for affordable units). The applicant is proposing 64 parking spaces on -site that will
include 6 guest parking spaces, 59 parking spaces for the residential tenants, and one
carshare parking space. Furthermore, two of the residential parking spaces will include
a stub -out for future EV charging. The building contains four short term bicycle parking
spaces located in the entry court along Pico Boulevard and 64 secured long term
bicycle parking spaces within the subterannean parking levels along with a 142 square
feet bicycle repair area on the P2 parking level.
Zoning Ordinance Development Standards
The R4 Zoning District establishes property development standards which govern the
height, lot coverage, and setbacks of the building. Furthermore, the zoning district was
established to provide a broad range of housing within high density multiple family
residential neighborhoods (zero to 48 dwelling units per net acre) free of disturbing
noises, excessive traffic, and hazards created by moving automobiles.
Development standards in the R4 district allow for a maximum height of four stories and
40 feet; however, a portion of the buidling not exceeding 50 percent of the parcel
coverage of the story immediately below may extend up to 45 feet in height with
limitations. The maximum parcel coverage is 50 percent on the first story and continues
to be reduced through the fourth story. Although the underlying zoning requirements
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provide guidance on size and massing, the Development Agreement would establish
the development standards of the project.
Table 2 is a comparison of the proposed project, Tier 1 standards, Tier 2 standards, and
current district development standards.
Table 2
=
Developmen# Standards
Proposed
Tier 1
"iier 2
Currett7- �4t>#ng
Building Height
45 feet
30 feet
45 feet
40 feet and 4 stories
May be exceed by 5 feet with limitations
Lot Coverage
1st Floor (50 %)
9,789
11,387
11,387
19,978 x (50 % +10 % *) = 11,387
2 "d Floor (80% of 1st floor)
9,789
9,109
9,109
11,387 x 80% = 9,109
3rd Floor (60% of 1st floor)
8,584
6,832
6,832
11,387 x 60% = 6,832
4th Floor 50% of 1st floor
3,926
5,693
11,387 x 50% = 5,693
Total Scluare Feet
32,088
27,328
33,021
33,021
Density
48 / acre
35 / acre
48 /acre
1 dwelling unit / 900 square feet
Number of Units
32
23
32
32
(including density bonus
* Density bonus incentive for providing affordable housing on -site. Additional 10% lot coverage.
The project has been designed to enlarge the courtyards and minimize the upper - floor.
The proposed lot coverage does not comply with the current zoning code; however,
staff supports the intent of not maximizing the first floor to allow for larger courtyards
and minimizing the fourth floor and height of the building. As designed, the proposed
building complies with the overall maximum amount of square footage allowed.
Development Standards Comparison
A project designed pursuant to the IZO as a Development Review Permit (Tier 1
Project) would consist of a 27,328 square -foot residential building, 23 units, and a
maximum height of 30 feet within three stories. This would result in fewer units and a
smaller development project during the IZO time period.
Development Agreement Overview
A development agreement can provide latitude to advance local planning policies
compared to the Development Review Permit process. While a development agreement
is an alternative to the standard development approval process, in practice it is similar
to other public review processes where Council makes the final decision with the
exception that Council has more discretion in imposing conditions and requirements on
the proposed project since Development Agreements are adopted by ordinance and are
negotiated contracts. Furthermore, through the DA process, community benefits as
prioritized in the LUCE can be negotiated.
The proposed development agreement is included as Attachment E.
Community Benefits
Prior to the Planning Commission hearing, the applicant and staff negotiated the
following community benefits for the proposed Development Agreement project:
a. On -Site Affordable Housing
On -site affordable housing units exceed the minimum on -site requirement
pursuant to the City's Affordable Housing Production Program (two units on -site
required by the AHPP, four units on -site provided in the project).
b. Community Physical Improvements
Enhanced walkway (sidewalk) consisting of a seven -foot setback for a widened
sidewalk for better walkability and pedestrian orientation. The total sidewalk width
adjacent to the project site will be effectively 15- feet -wide.
C. Transportation Infrastructure Contribution
Prior to obtaining a building permit for the Project, the Developer shall contribute
$77,445, to be used by the City for transportation infrastructure improvements.
® This is a community benefit because the application was deemed complete
on June 12, 2012. The TIF Ordinance was adopted on March 12, 2013, and
effective 60 days later. However, the fee amount was calculated based on the
TIF Ordinance. The affordable units were exempted entirely from this fee
calculation and the price - regulated units were provided a 50% discount.
d. Parks and Open Space Contribution
Prior to obtaining a building permit for the Project, the Developer shall contribute
$149,980.50 to be used by the City for construction of off -site parks and open
space.
® This is a community benefit because the application was deemed complete
on June 12, 2012. The new Parks and Open Space Ordinance was adopted
on October 14, 2014, and effective 60 days later. However, the fee amount
was calculated based on the new Parks and Open Space Ordinance. The
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previous parks fee was $200 per residential unit. The affordable units were
exempted entirely from this fee calculation and the price - regulated units were
provided a 50% discount.
f. Photovoltaic Panels
Photovoltaic panels shall be installed on the roof in accordance with the Project
plans.
g. Local Hiring
Developer shall implement the local hiring program for construction jobs as set
forth in Exhibit "H ".
Planning Commission Action
The Planning Commission considered this Development Agreement on August 27,
2014, and recommended Council approve the proposed Development Agreement with
the following recommendations for the City Council's consideration:
• LEED® Platinum Certification
Design and construct the project to achieve a minimum Platinum Certification, as
established by the LEED® rating system.
• Transportation Demand Management (TDM) Plan
A TDM plan intended to reduce project parking demand and vehicular trips in the
area. Specifically, provide a 50 percent transit pass subsidy for all tenants and
occupants (ages 5 and older) of the building. The TDM plan also includes a
transportation allowance for tenants of the building of the qualified driving age that
elect not to lease a parking space in the building.
• Price Regulated Units
Establish 11 units for which the initial rent will established by the applicant, but
which thereafter will only be adjusted once annually on the anniversary date of the
initial date of the tenancy at 100 percent of the consumer price index (CPI) until a
tenant moves out or is lawfully evicted. When such an event occurs, the developer
would again establish the initial rent without restriction. The same CPI adjustment
procedure would again be triggered.
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Applicant's Response
The applicant has agreed to the additional community benefits recommended by the
Planning Commission.
Planning Commission and Applicant Discussion
The Planning Commission discussed four additional items with the applicant that were
not community benefits:
Unexcavated Side Yard/ Loss of Two Parking Spaces
Provide unexcavated area in the side yard of the property in order to accommodate
landscaping in exchange for the loss of two parking spaces in the subterranean
garage.
Location of Fourth Floor
The proposed project was designed with the fourth floor close to Pico Boulevard and
away from the residences across the alley. After discussion, the applicant has
shifted the fourth floor back from Pico Boulevard behind a 503 square -foot balcony
and closer to the center of the building.
Landscaping in the Courtyards
The Planning Commission inquired whether trees in the courtyards could be flush to
the courtyard grade. The applicant responded that the courtyards would have a
thickened parking slab for landscaping, which would, in combination with a planter,
provide five feet of soil to plant a healthy tree. After further analysis, the applicant
has determined that a thickened parking slab is not possible. Furthermore, in order
to provide five feet of soil, a four - foot -tall planter above the courtyard grade would be
needed. Staff prefers landscaping to be planted as close to the courtyard grade as
possible and therefore does not support planters above grade. Since the landscape
plan is not fully developed, staff encourages the Council to direct the ARB to pay
particular attention to landscaping in the courtyard.
® Pico Boulevard Pedestrian Entrance
The Planning Commission inquired about the pedestrian entrance from Pico
Boulevard where the applicant has proposed an entry court and lobby behind a
retaining wall. The Planning Commission expressed concerns about the pedestrian
experience along the sidewalk adjacent to the project site and the appearance of a
basement type space. The applicant responded that a retaining a wall with the
proposed landscaping would enhance the space. Staff encourages Council to direct
the ARB to pay particular attention the Pico Boulevard entrance and the landscaping
in the entry court.
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Land Use and Circulation Element Consistency
The project consists of a multi- family building containing large two - bedroom units with
large outdoors spaces, which complies with its High Denisty Housing (HDH) land use
designation within the LUCE. The LUCE describes the HDH as authorizing multi - family
housing at a greater intensity than other residential neighborhoods. This designation is
intended to preserve and protect the character of the existing high - density
neighborhood. The LUCE has goals and policies for improving the quality of life
Citywide. Specifically, LUCE Goal LU10 requires new development to contribute directly
to the community's core social, physical, and transportation goals through mechanisms
such as community benefits. The proposed project complies with this goal by providing
affordable housing on site, designing a LEED® Platinum building that incorporates
widened sidewalks, provides a contribution to the City's transportation infrastructure,
and a TDM plan to help reduce vehicle trips. LUCE Policy LU10.2 requires new
development that requests height above the base to provide measurable benefits to
foster complete neighborhoods and support the goals of the LUCE, including reducing
vehicle trips and GHG emissions, maintaining diversity, and promoting affordable and
workforce housing. The proposed project complies with this policy in that it provides
community benefits including a LEED® Platinum certified designed building, a widened
sidewalk, a transportation contribution, an open space contribution, a TDM Plan, and
on -site affordable housing.
LUCE Goal LU11 promotes providing additional housing opportunities for a diversity of
housing options for all income groups, and advancing the City's sustainability goals
through housing production. The project meets this goal's intent by providing a LEED®
Platinum residential building consisting of all two- bedroom units. Four of the units would
be very-low income affordable units and elevent additional units would be price
regulated. LUCE Policy LU11.1 promotes continuing to support healthy, diverse
neighborhoods that provide a range of housing choices to meet the needs of the
residents. The project complies with this policy in that this project consists of large two -
bedroom units with large outdoors spaces in the courtyards and roof decks.
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Furthermore, the project would provide four very -low- income affordable units on -site
and eleven additional units would be price regulated.
Environmental Analysis
The proposed four -story, 32 -unit, residential project is exempt from the provisions of the
California Environmental Quality Act pursuant to CEQA Section 21159.24 which
exempts infill housing projects from CEQA if a project is consistent with the applicable
general plan and a community level environmental review was previously certified or
adopted in the last five years. Specifically, the proposed project meets all of the criteria
prescribed in Section 21159.24(a):
1. The proposed project is a residential project on an infill site. Per Section
21159.24(d), a residential project is defined as a project with residential units and
primarily neighborhood serving retail /commercial uses that do not exceed 15
percent of the total floor area. The proposed project does not include commercial
square feet.
2. The proposed project is located within an urbanized area as defined in CEQA
Section 21071. The project site was previously developed and is surrounded by
existing development.
3. The project site satisfies the criteria of Section 21159.21 in that the project is
consistent with the LUCE and applicable Zoning Ordinance provisions in effect at
the time that the application was deemed complete. In addition, the project can be
adequately served by existing utilities, and the project applicant will pay all
applicable in -lieu and development fees. The project site also does not contain
wetlands or wildlife habitat; is not listed as a hazardous waste site pursuant to
Section 65952.5 of the Government Code; and a Phase I environmental site
assessment has been conducted. The proposed project will have no impact on
historic resources in the area. The project site is not subject to wild -land fire
hazard, high risk of fire or explosion, or significant public health risk. The project
site is also not located within a delineated earthquake fault zone or seismic hazard
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zone or a landslide flood plain, and flood way area; on developed open space; or
within the boundary of a state conservancy.
4. Community level environmental review was adopted within five years of the date of
the project application. Specifically, a Final EIR for the LUCE was certified in June
2010.
5. The project site is approximately 0.47 acres and does not exceed the threshold of
four acres.
6. The project includes 32 units and does not exceed the threshold of 100 residential
units.
7. The proposed project will satisfy the City's Affordable Housing Production Program
by providing four (4) very-low income units.
8. The proposed project is located within one -half mile of a major transit stop at Pico
Boulevard and Lincoln Boulevard. This stop is served by four Big Blue Bus routes
including Lines 3, Rapid 3, 7 and Rapid 7.
9. The proposed project is approximately 32,088 square -feet and does not exceed
100,000 square feet.
10. The proposed project provides the equivalent density of 48 units per acre and thus,
is presumed to promote higher density infill housing.
Furthermore, in accordance with Section 21559.24(b), there is no reasonable possibility
that the project will have a project- specific, significant effect on the environment due to
unusual circumstances. There is no feature of this project which would distinguish it
from any other residential project in this area or other projects in the exempt class. No
substantial changes with respect to the circumstances under which the project is being
undertaken have occurred since the community -level environmental review (LUCE Final
EIR) was certified. In addition, no new information has become available regarding the
project and its circumstances that was not known at the time of the LUCE Final EIR.
Therefore, based on the above, the proposed project is exempt from CEQA pursuant to
Section 21559.24.
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Development Agreement
Overview
A development agreement is a contract between the City and a developer that
authorizes the type and amount of development that may occur within a specific period
of time. Development agreements are typically used to provide developers with
guaranteed development rights in exchange for public benefits. A development
agreement must comply with the General Plan, but can establish different development
standards than provided by zoning regulations.
A development agreement can provide greater latitude to advance local planning
policies compared to the Development Review Permit process. While a development
agreement is an alternative to the standard development approval process, in practice it
is similar to other public review processes where the City Council makes the final
decision with the exception that the City Council has more discretion in imposing
conditions and requirements on the proposed project since the Development
Agreements are adopted by ordinance and are negotiated contracts.
The proposed Development Agreement is contained in Attachment E.
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Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of this
recommended action. Staff will return to Council if specific budget actions are required
in the future. The Parks and Open Space contribution will be deposited into account
045551.410070, and the Transportation Infrastructure contribution will be deposited into
account 04267.402050.
Prepared by: Russell Bunim, Associate Planner
Approved:
t>Aj e—
David Martin, Director
Planning and Community Department
Attachments:
A. Development Agreement Findings
B. Financial Analysis
C. Ordinance
D. Plans
E. Development Agreement Document
Forwarded to Council:
Rod Gould
City Manager
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1 1
1. The proposed Development Agreement is consistent with the objectives, policies,
general land uses and programs specified in the general plan and any applicable
specific plan, in that The project is located in the High Denisty Housing (HDH)
land use designation within the LUCE. The LUCE describes the HDH as allowing
for multi - family housing at a greater intensity than other residential
neighborhoods. This designation is intended to preserve and protect the
character of the existing high- density neighborhood. The LUCE has goals and
policies for improving the quality of life Citywide. Specifically, LUCE Goal LU10
requires new development to contribute directly to the community's core social,
physical, and transportation goals through mechanisms such as community
benefits. The proposed project complies with this goal by providing affordable
housing on site, designing a LEED® Platinum building that incorporates widened
sidewalks, provides a contribution to the City's transportation infrastructure, and
a TDM plan to help reduce vehicle trips. LUCE Policy LU10.2 requires new
development that requests height above the base to provide measurable benefits
to foster complete neighborhoods and support the goals of the LUCE, including
reducing vehicle trips and GHG emissions, maintaining diversity, and promoting
affordable and workforce housing. The proposed project complies with this policy
in that it provides community benefits including a LEED® Platinum certified
designed building, a widened sidewalk, a transportation contribution, an open
space contribution, a TDM Plan, and on -site affordable housing. LUCE Goal
LU11 promotes providing additional housing opportunities for a diversity of
housing options for all income groups, and advancing the City's sustainability
goals through housing production. The project meets this goal's intent by
providing a LEED® Platinum residential building consisting of all two- bedroom
units. Four of the units will be very-low income affordable units. LUCE Policy
LU11.1 promotes continuing to support healthy, diverse neighborhoods that
provide a range of housing choices to meet the needs of the residents. The
project complies with this policy in that this project consists of large two- bedroom
units with large outdoors spaces in the courtyards and roof decks. Furthermore,
the project would provide four very-low- income affordable units on -site.
2. The proposed Development Agreement is compatible with the uses authorized in
the district in which the real property is located, in that the proposed project
consists of a four -story, 45- foot -tall building along the south side of Pico
Boulevard. The property is in the R4 Zoning District, which extends from 11th
Street to Euclid Street. Within this segment of Pico Boulevard, buildings range in
height from one story to three stories (two stories of residential above one story
of parking). The subject property is situated between a one -story residential
iE:
building on the east and a one -story motel building on the west. The project is
proposed at four stories on the east and drops down to two stories on the west,
which follows the slope of the property. During the ARB conceptual review, a
three story building was presented by the applicant; however, the ARB
expressed concerns with usablity of the open space and courtyard areas and
less concern with the height of the project. Therefore, the building was designed
to include a limited fourth floor in order to reduce the parcel coverage on the first
and second floor and provide larger courtyard areas. Staff believes the new
design is an improvement from the prior design in that the larger proposed
courtyards that are visible from the street. The 18,987 square -foot project site is
similar in parcel size with three other large parcels on this segment of Pico
Boulevard including 1125 Pico Boulevard (approximately 14,360 square feet),
1206 Pico Boulevard (18,250 square feet), and 1211 Pico Boulevard (9,800
square feet), which all contain large apartment buildings. However, it is difficult
for a four -story building on three combined lots to exist in complete harmony with
single -story buildings on single lots on each side of the project site. The applicant
has proposed a design that helps break up the massing into three verticle
elements to address this concern.
3. The proposed Development Agreement is in conformity with the public necessity,
public convenience, general welfare, and good land use practices, in that it
allows for the redevelopment of existing, underutilize properties with a mixed -use
project that is compliant with the new Land and Use Circulation Element vision
for the area. The proposed project provides 32 new residential units and will, and
would provide community benefits including additional affordable housing units
exceeding AHPP requirements, a variety of contributions to support area
improvements, construction of a LEED Platinum certified building including solar
panels and EV charging stub -outs, and a local hiring provision.
4. The proposed Development Agreement will not be detrimental to the health,
safety and general welfare, in that the agreement would allow for the
redevelopment of existing, underutilized parcels with a use that is compliant with
the new Land and Use Circulation Element vision for the area. The proposed
project will be located in an urbanized area and is consistent with other similar
improvements in the area, and does not have the potential to disrupt the urban
environment or cause health or safety problems. The proposed project provides
32 new residential units, and would provide community benefits including
additional affordable housing units exceeding AHPP requirements, a variety of
contributions to support area improvements, construction of a LEED Platinum
certified building including solar panels and EV charging stub -outs, and a local
hiring provision.
5. The proposed Development Agreement will not adversely affect the orderly
development of the property, in that the Development Agreement is contingent
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upon the review and approval of a specific site plan consistent with recognized
urban design principles that reflect the goals and policies of the City of Santa
Monica which were established through a long range planning process and are
reflected in the recently adopted update of the Land Use and Circulation Element
of the City's General Plan.
6. The proposed Development Agreement will have a positive fiscal impact on the
City, in that the City will incur no cost associated with the implementation of the
applicant's Transportation Demand Management plan and the associated
community benefit of reduced vehicle trips and parking demand in the area.
Furthermore, if the fee or monetary contribution options required in this
development agreement are exercised, the payment of fees relating to Parks and
Open Space of 119,836.70, and transportation impact Fee of 61,893.99, would
be collected. For these reasons, the project will have a positive fiscal impact on
the City.
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CITY OF SANTA MONICA
City Planning Division
Mr. Russell Bunim
£t Ms. Jing Yeo
REVISED AND UPDATED
ECONOMIC ANALYSIS OF
1112 PICO BOULEVARD
July 30, 2014
Executive Summary
BackgroundStatement ..................................................................................................................................... ..............................4
ProjectDescription .............................................................................................................................................. ..............................4
Tier1 - Base Zoning Alternative ................................................................................................................... ..............................6
Tier2 - Proposed Project Analysis ............................................................................................................... ..............................9
ValueEnhancement Analysis ....................................................................................................................... .............................12
FiscalImpact Analysis ...................................................................................................................................... .............................13
Assumptions and General Limiting Conditions ................................................................................... .............................14
Attachment 1: Tier I Construction Cost Estimate
Attachment 1 (cont.): Tier I Income Estimate.......
15
17
Attachment 2: Tier II Construction Cost Estimate .......................................................:..................... .............................19
Attachment 2 (cont.): Tier II Income Estimate ..................................................................................... .............................21
Attachment 3: Affordable Housing Calculation
ldlh
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A D V I S O R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica / 1
INTRODUCTION
At the request of the City of Santa Monica ( "City "), Tierra West Advisors, Inc. ( "Tierra West ") has
revised and updated Tierra West' previous report submitted to the City dated January 7, 2014.
Staff has indicated that ongoing development negotiations with the Applicant has concluded
with a new development program proposal that is being finalized and defined within a
Development Agreement (DA) being negotiated between the parties. City staff has indicated that
the Applicant has reaffirmed that it is constructing thirty-two (32) units of which four (4) units
will be dedicated by covenant to those persons who are within the very low income economic
bracket in Los Angeles County.
Tierra West reviewed a proposed development program submitted by Peter Bohlinger and Kiillefer
Flammang Architects ( "Applicant ") to develop the property located at 1112 -1122 Pico Boulevard
( "Proposed Project "). The Proposed Project, "Pico Eleven ", is currently designed as a LEED Gold
Certified apartment building with subterranean parking. It will feature 32 residential units and
64 subterranean parking spaces (or two spaces per residential unit). The proposed unit mix
currently consists of thirty -two (32) market -rate 2- bedroom units with an average unit size of
approximately 995 square feet. The building will feature cantilevered balconies, landscaped
rooftop open space for residents, along with other site- related landscaping.
The Land Use and Circulation Element ( "LUCE ") was updated in 2010, establishing the City's land
use, urban design, and transportation vision. The following analysis compares the 32 -unit
proposed Tier 11 build out of a multi- family residential project versus a 23 -unit Tier I build out.
The LUCE Tier I High Density Housing consists of a gross building area (GBA) of approximately
22,887 square feet. The Tier I scenario assumes a current allowable Unit Mix of twenty -three (23)
two- bedroom units. The allowable parking spaces /ratio is two (2) spaces per unit or a total of
forty -six (46) parking spaces.
Tierra West's analysis of the Proposed Project includes the following components
1. Base Zoning Alternative Analysis
Tierra West reviewed the Tier I base zoning alternative ( "Base Project "), projecting the
development as a residential project under the current site entitlements. This analysis
examined the value of the Proposed Project based upon projected development costs less
estimated market value of the final development. The remaining net value of the Base
Project will serve as the baseline for estimating the value enhancement between a project
designed under the current zoning and a higher density project, such as the Proposed
Project.
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A D V I S O R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica / 2
2. Value Enhancement Analysis
Tierra West prepared a Value Enhancement Analysis as it pertains to the Proposed
Project development scenario compared to the Base Project development scenario. This
analysis examined the value of the Proposed Project based upon projected development
costs less estimated market value of the final development. Pursuant to the Planning
Commission Report dated November 7, 2012, regarding Agenda Item 8 -C, the purpose of
this analysis is to compare the value between the Base Project categorized as Tier I, and
the Proposed Project, categorized as a Tier B High Density housing project.
Tierra West developed independent cost and revenue estimates based upon comparable
recent developments in the vicinity of the Proposed Project, costing guides, Tierra West's
experience and information provided by the Applicant. Project assumptions, combined
with the results of the Value Enhancement Analysis, have enabled Tierra West to provide
the City with a financial comparison of Proposed Projects.
3. Fiscal Impact Analysis
Revenues
Tierra West completed an independent Fiscal Impact Analysis examining the revenues
and costs associated with the Proposed Project. Based upon our analysis, Tierra West
estimated the initial revenues generated from the Proposed Project, most commonly in
the form of permit fees (building and safety, planning, public works, housing in -lieu,
etc). Additionally, our analysis included recurring revenues generated from the Proposed
Project. These revenues are more varied and include, but are not limited to, Property Tax
Revenue, Sales Tax Revenue, Utility Taxes, Parking Taxes, and Property Transfer Taxes.
Expenditures
Tierra West estimated the ongoing direct costs expected to be incurred by the City as a
result of the Proposed Project upon completion and occupancy. Average costs for
services, both for residents and non - residents, were identified for Police, Fire, Parks and
Recreation, Traffic Control and Roadway Maintenance, and General Local Government
staff time.
Based upon our findings, Tierra West developed an estimated net fiscal impact resulting
from the development of the Proposed Project. Tierra West based this information on
relevant data from the 2012/2013 City Fiscal Year Budget.
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A n V I S 0 R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 13
EXECUTIVE SUMMARY
Value BnhancementAnalysis
The following table summarizes the differences between the Proposed Project and the scope of
development allowed by the Base Zoning Alternative:
Tier I and Tier II Values I
Source: Tierra Nkst Advisors, no.
The updated Tierra West analysis of the revised development program of thirty -two (32) units
inclusive of four (4) very low income units concludes that that the Tier II revised Project
generates a project value that is approximately $1.8 million more than the value supported by
the Base Zoning Tier I Alternative or twenty -three (23) units. The original analysis prepared by
Tierra West concluded that the Tier B Proposed Project generated a project value that is roughly
$1.4 million more than the value supported by the Base Zoning Tier I Alternative. This
represents the value enhancement created by the density bonus incentive described in the
Proposed Project.
TIERRAWEST
A D V I S O R S
Development Cost Comparison (Tier I and Tier ii Value Analysis)
Market Rent $3,000 - Affordable Rent $944 - NO LMIH In -Lieu Fee
Ter I
Lurk
Tier II
/U�r ft
Difference
Lug
Project Value
$10,133,114
$440,570
$14,771,557
$461,611.16
($4,638,444)
na
Expenses:
Direct Costs
$4,360,270
$190,446.53
$6,060,965
$189,405
($1,680,695)
na
Indirect Costs
1,226,476
53,325
1,697,070
53,033
(470,595)
na
Financing Costs
570,853
24,820
752,849
23,527
(181,996)
na
Subtotal
$6,177,599
268,591
$8,510,885
$265,965
($2,333,286)
na
Acquisition
$0
$0
$0
na
Cost of Sale
0
0
0
no
Profit
1,013,311
1,477,156
(463,844)
na
- Total Construction Costs
$7,190,910
$312,648.26
$9,988,040
$312,126.26
($2,797,130)
na
Tier I and Tier II Values I
Source: Tierra Nkst Advisors, no.
The updated Tierra West analysis of the revised development program of thirty -two (32) units
inclusive of four (4) very low income units concludes that that the Tier II revised Project
generates a project value that is approximately $1.8 million more than the value supported by
the Base Zoning Tier I Alternative or twenty -three (23) units. The original analysis prepared by
Tierra West concluded that the Tier B Proposed Project generated a project value that is roughly
$1.4 million more than the value supported by the Base Zoning Tier I Alternative. This
represents the value enhancement created by the density bonus incentive described in the
Proposed Project.
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A D V I S O R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 14
Fiscal Impact Analysis
The difference between the fiscal impact of the Proposed Project and the scope of development
allowed by the Base Zoning Alternative are summarized in the following table:
Total Annual Revenues:
Less Annual Expenditures:
Source: Tierra West Advisors, Inc.
'Includes one -time and recurring expenses.
Revenue and
Berl 119111
$52,564 $74,116
$132,30 184 073
Tier]
$52,564
$328,08
RUH
$74,116
$456,45
Tierra West prepared a Fiscal Impact Analysis based on the Proposed Project, and estimated the
annual recurring net fiscal expense impact to the City's General Fund of approximately
$110,000. The Base Project analysis generated a recurring annual net fiscal expense impact to
the City's General Fund of approximately $80,000 per year. The table also shows the total
annual expenditure which includes both one -time expenditures as well as the annual recurring
expenditures. One -time expenditures are paid as expenses through permits and fees during the
development process and are not expected to affect on -going operations.
BACKGROUND STATEMENT
Tierra West has reviewed the Planning Commission Report dated November 7, 2012 regarding
Agenda Item 8 -C, Development Agreements and Economic Analyses Study Session as well as the
accompanying PowerPoint Presentation from the same November 7, 2012 City of Santa Monica
Planning Commission Meeting. City staff has implemented an analytical process that reviews
proposed projects in conjunction with various adopted City and Community plans such as Land
Use and Circulation Element ( "LUCE ") Strategy Framework, Open Space Element, Housing
Element and others. The Planning Commission and City Staff have instructed consultants to
provide reviews of Proponents' project submittals that include project fiscal impact, value
enhancement and financial feasibility. Based upon these documents and our subsequent
meetings with the City, Tierra West has drafted our analysis based on the City's newly adopted
practices.
PROJECT DESCRIPTION
The Applicant has proposed the construction of a new four -story multi- family residential
development with subterranean parking. The site is comprised of approximately 0.47 acres
(20,560 square feet) located within the City of Santa Monica and is situated on the south side of
Pico Blvd, between 11" Street and Euclid Avenue ( "Site "). The Site is generally bounded by Pico
Boulevard on the north, Bay Street on the south, Euclid Street on the east and 111" Street on the
TIERRAWEST
A D V I S O R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 15
west. The Site is currently zoned R4, High Density Multiple Family Residential Zoning District,
with a land use designation of High Density Housing.
The Applicant proposes to construct on the 20,560 square foot parcel an approximate 31,833
square foot multi - family residential building, featuring thirty -two (32) residential units, sixty -
four (64) subterranean parking spaces (or two spaces per residential unit) and sixty -four (64)
bicycle parking spaces. The proposed unit mix currently consists of an average unit size of
approximately 995 square feet.
The building will feature cantilevered balconies, landscaped rooftop open space for residents,
along with other site related landscaping. The major building material will be reclaimed teak,
which will be brown when first installed but will weather to a soft gray in a few years. The
building will be designed to a LEED Gold Standard and will have photovoltaic panels on the
roof. The building will have some portions that are 45 feet high in concurrence with the High
Density land use designation under the City's recently- adopted Land Use and Circulation
Element, but will step down along Pico Boulevard.
The building massing has been broken up into thirds, with two courtyards reaching from the
street back into the units. Most of the units have windows on three sides, allowing for ample
cross ventilation and natural light. The site sloped almost 16 feet from the high east property
line to the low west property line. The building steps down vertically from 4 stories at the higher
eastern end to 2 stories on the lower western end. Concurrently, it also steps down from 4 stories
at the south eastern edge along the alley to 2 stories at its lowest point along Pico Boulevard.
The building has a very strong pedestrian orientation with one courtyard opening on to Pico
Boulevard; where the slope lowers to the west, the glass -faced lobby also fronts the sidewalk at
Pico. Tierra West acknowledges that the project design is subject to change.
The property will be developed in accordance with the requirements of the zoning ordinance of
the City and any variances or modifications as approved by. the City. The Project shall be
constructed of quality materials and will incorporate the most recent image program
requirements consistent with a uniform image reflecting the modern, attractive and effective
commercial retail facility. The Project's design will include excellent operational efficiencies and
facility function, which in turn promotes an inviting combination of comfort and convenience to
consumers. All improvements shall be constructed or installed in accordance with City code
requirements and in accordance with the plans and specifications approved by the City. The
Applicant shall cause the proper documents to be filed and fees paid to all governmental and
regulatory agencies, including utilities. The project shall include onsite parking in accordance
with applicable City regulations.
�TIERRAWEST
A D V I S O R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica / 6
TIER I - BASE ZONING ALTERNATIVE
Scope of Development
• Gross building area (GBA) is approximately 22,887 square feet.
• The proposed allowable Unit Mix is comprised of twenty -three (23) two- bedroom units.
• Parking Spaces /Ratio is proposed at two (2) spaces per unit.
Estimated Construction Costs
Tier I project costs were derived from the Marshall and Swift Valuation Catalog for building cost
and information provided by the Applicant. The overall development costs for the project are
included in the following underlying costs assumptions.
Direct Costs
• Tier I building shell construction costs
• Subterranean parking structure costs
• Off -site improvements were estimated at
• On -site Improvements were estimated at
• Fixtures and Equipment (fixed equipment)
• General conditions was estimated at
• Affordable Housing Base Fee (In -Lieu)
Indirect Costs
• Architectural Et Consultant Fees
• Public permits and fees were estimated at
• Taxes, insurance, legal and accounting fees
• Developer fees were estimated at
• Project contingency was estimated at
$123.00 psf
$75.00 psf or $30,000 per stall.
$1.50 psf
$2.50 psf
$1.50 psf
$3.00 psf
$27.79 psf
4.0% of direct costs
5.0% of direct costs
3.5% of direct costs
3.0% of direct costs
10.0% of direct costs
Financing costs were generated from current market rates and the analyst's database for like
expenses. Total estimate of construction costs and fixture and equipment costs are
approximately $6.2 million (see Attachment 1).
Estimated Stabilized Net Operating Income
The pro forma outlines operating- income and expense assumptions. The following assumptions
were developed based on a review of similar residential developments and Tierra West's
experience with projects of the proposed scope and scale.
Market Rental Rates
To assess the market feasibility of the Subject Property rental rates, Tierra West reviewed on -line
resources, contacted local area brokers and property management companies to conduct
telephone interviews. Based on research and discussions with local real estate professionals,
average rents for two-bedroom/one-bathroom apartments ranged from $1,540 to $3,005 per
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A n V 1 S 0 It S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 7
month (or from $1.71 per square foot to $3.34 per square foot assuming an average unit size of
900 square feet). The rental rate used to estimate value of the Tier I project was $3,000 per
month or $36,000 annually.
Affordable Housing Rental Rate Estimate
All new multi family housing developments of two or more units, including multi - family that is
part of commercial or other development, must comply with chapter 9.56 of the Affordable
Housing Production Program ( "AFIPP ") of the City of Santa Monica, unless specifically exempted
by the terms of Chapter 9.56. The AHPP was originally adopted by the City Council on July 21,
1998, and implemented Proposition R. Approved by Santa Monica voters in November, 1990,
Proposition R requires that not less than 30 percent of all multi- family residential housing newly
constructed in the City each year be permanently affordable to, and occupied by, low- income
and moderate - income households. The AHPP gives developers of multi - family housing a variety
of options for satisfying the City's affordable housing requirements. Options included are as
follows:
• Fee Methodology Option
• On -Site Affordable Unit Option
• Off -Site Affordable Unit Option
• Land Acquisition Option
The Proposed Pico Eleven Project was originally reviewed based on the assumption that the City
and Applicant would utilize the Fee Methodology Option. The Fee Methodology Option allows
the developer to satisfy the affordable housing obligation through payment of the Affordable
Housing Unit Base Fee ( "Base Fee "). The amount of the Base Fee is based upon the floor area of
the project. The floor area of the project is multiplied by the Base Fee in order to determine the
total fee owed by each project.
The Tier I project proposes a total of 23 two- bedroom units. The total floor area of the Tier I
project is approximately 22,887 square feet. Under current City guidelines, the per square foot
Base Fee is listed as $27.79. Assuming the per square foot Base fee of $27.79 and the total Floor
Area of 22,887 square feet, the total fee would be $636,016.
The proceeds from this Base Fee are deposited into a special City Trust Fund and used to
facilitate the development of housing affordable to very -low- income, low- income and moderate -
income households.
However, the new development proposal negotiated between the City and Applicant and
memorialized in a Development Agreement provides that the Applicant will provide four (4) on-
site affordable units for persons within the very low income bracket based on the median income
of Los Angeles County. Rent for these four (4) qualified units is anticipated to be $944 per
month per unit or $11,328 annually.
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A n 4 1 S 0 R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 1 8
Operating Expenses
Though operating expenses can vary from property to property, based upon Tierra West's
experience with properties of this scope, operating expense data from other local properties as
well as examples of general operating expense standards, we assume an operating expense of
27.0% of the effective gross income ( "EGI "). Based upon research, general operating expenses
could range from 23.0% to approximately 45.0% of the effective gross income. The proposed
development is currently designed as a LEED Gold Certified apartment building. Review of LEED
building surveys and Building Owners and Managers Association (BOMA) real estate journal
information indicated that LEED projects could result in a building operating savings cost
ranging from approximately 10.0% to over 18.0%. As such, Tierra West has taken in
consideration building operations savings derived from a LEED project, as well as the cost
savings factors pertaining to the efficiencies of a newly developed building. The savings are
reflected in the operating expense assumptions.
Vacancy Rate
Review of similar multi- family residential developments and the analyst's experience with
similar projects included the application of a 5.0% vacancy rate for this analysis.
Property Valuation Factors
Tierra West reviewed the property valuation factors which include the income capitalization rate
( "Cap Rate "). Valuation factors are used to estimate the value of income property. For this
analysis, however, we focused our research on the local area Cap Rates. Our research of local
area Cap Rates included a range from 4.00/b to 7.0 %. A 5.0% cap rate was used to value the Tier
I Project.
Estimated Value
The project value of a current zoning Tier I project is estimated at approximately $10 million,
assuming a 5% vacancy rate, operating expenses of 27.0% of the EGI and a cap rate of 5.0 %.
Developer Profit
The analysis considers an estimated developer profit margin. The developer profit under the Tier
I proposed project is estimated at 10.0% of the project value or approximately $1.0 million.
Estimated Net Value
The project value of a current zoning Tier I project is estimated at approximately $10 million,
assuming a developer profit margin of 10.0% of the project value, the net project value would be
$9.0 million.
Estimated Tier I Value
The pro forma concludes by delineating the project site's value. Current market cost, income and
investment rates were used to estimate project value. If the project value exceeds total
construction costs, the project would have a surplus in value. If the project value and total
construction costs are equal or the construction costs exceeds the project value, the value is zero
and would require additional investment.
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A D V 1 5 0 R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 19
Tierra West has estimated the project's value at approximately $10.0 million. In this case the
project's construction cost of approximately $7.2 million is less than the estimated project value.
Assuming a residential project is developed, a Tier I development would generate approximately
$3.0 million in net value (see Attachment 1 cont.).
TIER II - PROPOSED PROJECT ANALYSIS
Scope of Development as Submitted
• Gross building area (GBA) is approximately 31,833 square feet.
• The proposed Unit Mix is comprised of thirty -two (32) two- bedroom units.
• Parking Spaces /Ratio is proposed at two (2) spaces per unit.
Estimated Construction Costs
Tier II project costs were also derived from the Marshall and Swift Valuation Catalog for
building cost and information provided by the Applicant. The overall development costs for the
project are included in the following underlying costs assumptions.
Direct Costs
• Tier II building shell construction costs
• Subterranean parking structure costs
• Off -site improvements were estimated at
• On -site Improvements were estimated at
• Fixtures and Equipment (fixed equipment)
• General conditions was estimated at
• Affordable Housing Base Fee (In -Lieu)
Indirect Costs
• Architectural Ft Consultant Fees were estimated at
• Public permits and fees were estimated at
• Taxes, insurance, legal and accounting fees
• Developer fees were estimated at
• Project contingency fees were estimated at
$123.00 psf
$75.00 psf or $30,000 per stall
$1.50 psf
$2.50 psf
$1.50 psf
$3.00 psf
$27.79 psf
4.0% of direct costs
5.0% of direct costs
3.5% of direct costs
3.0% of direct costs
10.0% of direct costs
Financing costs were generated from current market rates and the analyst's database for like
expenses. Total estimate of construction costs, fixture and equipment costs are approximately
$8.5 million (see Attachment 2).
Estimated Stabilized Net Operating Income
Tier II operating income assumptions were developed based on a review of similar commercial
developments and the analyst's experience with projects of the proposed scope and scale.
4M 7
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A n V 1 5 0 a s
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 10
Market Rental Rates
Review of internet real estate rental resources and discussions with these local real estate
professionals, indicated that the average rent for a two- bedroom /one- bathroom apartment
ranged from $1,540 to $3,005 per month (or from $1.71 per square foot to $3.33 per square foot
assuming an average unit size of 900 square feet). A $3,000 (or $3.33 per square foot) rental was
rate used to estimate value of the Tier H project.
Affordable Housing Rental Rate Estimate
All new multi family housing developments of two or more units, including multi- family that is
part of commercial or other development, must comply with chapter 9.56 of the Affordable
Housing Production Program ( "AHPP ") of the City of Santa Monica unless specifically exempted
by the terms of Chapter 9.56. The AHPP was originally adopted by the City Council on July 21,
1998, and implemented Proposition R. Approved by Santa Monica voters in November, 1990,
Proposition R requires that not less than 30 percent of all multi- family residential housing newly
constructed in the City each year be permanently affordable to, and occupied by, low- income
and moderate - income households. The AHPP gives developers of multi - family housing a variety
of options for satisfying the City's affordable housing requirements. Options included are as
follows:
• Fee Methodology Option
• On -Site Affordable Unit Option
• Off -Site Affordable Unit Option
• Land Acquisition Option
The Proposed Pico Eleven Project was originally reviewed based on the assumption that the City
and Applicant would utilize the Fee Methodology Option. The Fee Methodology Option allows
the developer to satisfy the affordable housing obligation through payment of the Affordable
Housing Unit Base Fee ( "Base Fee "). The amount of the Base Fee is based upon the floor area of
the project. The floor area of the project is multiplied by the Base Fee in order to determine the
total fee owed by each project.
The Tier I project proposes a total of 32 two- bedroom units. The total floor area of the Tier I
project is approximately 31,833 square feet. Under current City guidelines the per square foot
Base Fee is listed as $27.79. Assuming the per square foot Base fee of $27.79 and the total Floor
Area of 31,833 square feet, the total fee would be $884,639.
The proceeds from this Base Fee are deposited into a special City Trust Fund and used to
facilitate the development of housing affordable to very -low- income, low- income and moderate -
income households.
However, the new development proposal negotiated between the City and Applicant and
memorialized in a Development Agreement provides that the Applicant will provide four (4) on-
site affordable units for persons within the very low income bracket based on the median income
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A D V 1 5 0 It S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 11
of Los Angeles County. Rent for these four (4) qualified units is anticipated to be $944 per
month per unit or $11,328 annually.
Operating Expenses
Tierra West assumed an operating expense of 27.0% of the effective gross income ( "EGI "). Based
upon research, general operating expenses could range from 23.0% to approximately 45.0% of
the effective gross income. The Proposed Project is designed as a LEED Gold Certified apartment
building and is assumed to experience an operating cost savings of approximately 18.0% which
is reflected in the conservative operating expense assumptions.
Vacancy Rate
Review of similar multi - family residential developments and the analyst's experience with
similar projects included the application of a 5.0% vacancy rate for this analysis.
Property Valuation Factors
The Tier II analysis uses an income capitalization rate of 5.0% to value the Tier II development
alternative.
Estimated Value
The value is estimated at approximately $14.7 million assuming a 5.0% vacancy rate operating
expenses of 27.0% of the EGI and a cap rate of 5.0 %.
Developer Profit
The analysis considers an estimated developer profit margin. The developer profit under the Tier
B proposed project is estimated at 10.0% of the project value or nearly $1.47 million.
Estimated Net Value
The project value of a current zoning Tier II project is estimated at approximately $14.5 million,
assuming a developer profit margin of 10.0% of the project value, the net project value would be
$13.29 million.
Estimated Tier II Value
The Tier 11 project value is estimated at approximately $14.7 million. The project's construction
cost of approximately $10 million is less than the estimated project value. Assuming a
residential project is developed, the Tier B development is estimated to generate approximately
$4.7 million in net value (see Attachment 2 cont.).
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A p V I S 0 It S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica ( 12
VALUE ENHANCEMENT ANALYSIS
The following table presents a comparison of the revenue, construction cost and value
comparison for both the Tier I and Tier II development projects.
Source: Terra Mat Advisors, Inc.
The value of Tier I is estimated at an approximately $2,9 million. The Tier It value is estimated at
approximately $4.78 million. Comparatively, the Tier II value enhancement is approximately
$1.84 million greater than the value of Tier I.
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A 1) V I S 0 It 5
Development Cost Comparison
Market Rent $3,000 - Affordable
(Tier I and Tier II Value Analysis)
Rent $944 - NO LMIH In -Lieu Fee
Ter I
Wall
Tier II
/Unit
Difference
LU12
Project Value
$10,133,114
$440,570
$14,771,557
$461,611.16
($4,638,444)
na
Expenses:
Direct Costs
$4,380,270
$190,446.53
$6,060,965
$189,405
($1,680,695)
na
Indirect Costs
1,226,476
53,325
1,697,070
53,033
(470,595)
na
Financing Costs
570,853
24,820
752,849
23,527
(181,996)
t1q
Subtotal
$6,177,599
268,591
$8,510,885
$265,965
($2,333,286)
na
Acquisition
$0
$0
$0
na
Cost of Sale
0
0
0
na
Profit
1,013,311
1,477,156
(463,844)
na
Total Construction Costs
$7,190,910
$312,648.26
$9,988,040
$312,126.26
($2,797,130)
na
Source: Terra Mat Advisors, Inc.
The value of Tier I is estimated at an approximately $2,9 million. The Tier It value is estimated at
approximately $4.78 million. Comparatively, the Tier II value enhancement is approximately
$1.84 million greater than the value of Tier I.
TIERRAWEST
A 1) V I S 0 It 5
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica / 13
FISCAL IMPACT ANALYSIS
Tierra West completed an independent Fiscal Impact Analysis examining the revenues and costs
associated with the Tier I and Tier II projects. Based upon our analysis, Tierra West estimated the
initial revenues generated from the projects, most commonly in the form of permit fees (building
and safety, planning, public works, housing in -lieu, etc). Additionally, our analysis included
recurring revenues generated from both the Tier I and Tier It projects. These revenues are more
varied and include Property Tax Revenue, Sales Tax Revenue, Utility Taxes, Parking Taxes, and
Property Transfer Taxes, among others.
Tierra West estimated the ongoing direct costs expected to be incurred by the City as a result of
the projects upon completion and occupancy. Average costs for services, both for residents and
non - residents, were identified for Police, Fire, Parks and Recreation, Traffic Control and
Roadway Maintenance, and General Local Government staff time. Tierra West based this
information on relevant data from the 2012/2013 fiscal year City Budget Reports and previous
City budgets.
Based upon our findings, Tierra West developed an estimated net fiscal impact resulting from the
development of the Tier I and Tier Il projects. Results of the finding are shown in the following
table.
Fiscal Impact Analvsis IRecurrina Revenue and Expenditures)
Source: terra West Advisors, Inc.
'Includes one -time and recurring expenses
Total Expenditures'
TiierI Tierll
$52,564 $74,116
$328,08 456 459
As shown in the table above, Tier I generates annual recurring revenues of approximately
$53,000, and a Tier II project of approximately $74,000 in total recurring annual revenues.
It is estimated that a Tier I project generates approximately $132,000 dollars in annual recurring
expenditures; Tier H is estimated to generate $184,000 annually in recurring expenses.
Each of the Proposed Projects could result in a negative fiscal impact on the City's General Fund,
with Tier I resulting in a net fiscal impact of approximately $80,000 per year and Tier II
resulting in a net fiscal impact of approximately $110,000 annually. The table also shows the
total annual expenditure which includes both one -time expenditures as well as recurring
expenditures. One -time expenditures are paid as expenses during the development process
generally by fees owed and do not affect on -going operations.
TIERRAWEST
A 1) V I S 0 It S
TierI Tier 11
Total Annual Revenues:
$52,564 $74,116
Less Annual Expenditures:
$132,302 $184,073
Net Fiscal Impact:
($79,738) ($109,956
Source: terra West Advisors, Inc.
'Includes one -time and recurring expenses
Total Expenditures'
TiierI Tierll
$52,564 $74,116
$328,08 456 459
As shown in the table above, Tier I generates annual recurring revenues of approximately
$53,000, and a Tier II project of approximately $74,000 in total recurring annual revenues.
It is estimated that a Tier I project generates approximately $132,000 dollars in annual recurring
expenditures; Tier H is estimated to generate $184,000 annually in recurring expenses.
Each of the Proposed Projects could result in a negative fiscal impact on the City's General Fund,
with Tier I resulting in a net fiscal impact of approximately $80,000 per year and Tier II
resulting in a net fiscal impact of approximately $110,000 annually. The table also shows the
total annual expenditure which includes both one -time expenditures as well as recurring
expenditures. One -time expenditures are paid as expenses during the development process
generally by fees owed and do not affect on -going operations.
TIERRAWEST
A 1) V I S 0 It S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 114
ASSUMPTIONS AND GENERAL LIMITING CONDITIONS
Tierra West has made reasonable efforts to confirm the accuracy and timelines of the
information contained in this review. Such information was compiled from a variety of sources
deemed to be reliable. Tierra West does not warrant the accuracy of information and assumes no
responsibility for information by third parties. Updates and revisions to this report for events
and circumstances occurring after the date of this report will be done based upon City request on
a time and materials basis. No guarantee is made as to the possible effect on site development
due to present or future federal, state or local legislation
The analyses are based on estimates and assumptions developed in connection with the study
were developed using currently available economic data and other relevant information.
However, some assumptions may not materialize, and unanticipated events and circumstances
may occur. Actual results achieved during the development period will likely vary from the
projections, and some of the variations may be material to the conclusions of the analysis.
TIERRA WEST ADVISORS, INC.
John Yonai Principal
Walt Lauderdale, Jr., Director
r
Jason Chiang, Analyst
TIERRAWEST
A n V I S 0 R S
ECONOMIC ANALYSIS Of 1112 PICO BLVD
Attachment 1
Tier I Construction Cost Estimate
City of Santa Monica 1 15
TIERRAWEST
A D V I S O R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 1 16
ATTACHMENT
CITY OF SANTA MONICA
PICO BOULEVARD HOMES, MULTI- FAMILY HOUSING DEVELOPMENT
FINANCIAL PR0F0RI,IA {Rent - $3,080 nits
MKT -19 U Plus Very Lmv- 4_Tier I Value Analy rne LUCE ).Estimates
Site Sme Qn acresj: O 47
Number of units existing: 0.0
Number of units proposed: 23.0
Average Unit Size: 095
PROJECT COSTS
LAND ACQUISITION COSTS:
LAND PURCHASE
ACQUISITION COSTS
RESIDENTIAL W4IEU FEE
TOTAL ACQUISITION COSTS
DIRECT DEVELOPMENT COSTS:
DEMOLITON
OFFSITE IMPROVEMENTS
ON-SITE IMPROVEMENTS (nct. landscaping)
PARKING (Strua°ure)
RESIDENTIAL SHELL CONSTRUCTION
FURNITURE FIXTURES & EQUIPMENT (Fored Equipment)
GENERAL CONDITIONS
TOTAL DIRECT COSTS
TOTAL LAND & DIRECT COSTS
ARENUNITS PER SO FT PER UNIT TOTAL
24,560 50.00
$D
$0
20,560, 50.00
$0
$0
22,,807 50.00
$D
$0
$250
$0
to
Allowance
construction
Sa. FL
$0
20,560
$1.50
$1,341
93D,840
20,569
$250
$2,235
551,401
46.0
53,943
$30,DOD
$1,380,008
22,887
$123.00
$122,393
$2,815,040
22,881
$1.50
$1,493
$34,330
22,887
53.09
$2,905
568,600
$5,713
$131,488
SECURITY, THEFT & VANDALISM
$4,390,279
% of S per Bldg.
$4,380,270
INDIRECT COSTS:
construction
Sa. FL
$ per Unit
Total
ARCHITECTURE & ENGINEERING
4.0%
57.66
$7,618
S175,211
PUBLIC PERMITS & FEES
5.0%
$9.57
$9,522
$219,014
TAXES, INSURANCE, LEGAL & ACCOUNTING
3.5%
$630
$6,868
$153,309
MARKETING
(15%
$0.96
$952
$21,901
DEVELOPER FEE (Admoustration & Overhead)
3.9%
55.74
$5,713
$131,488
SECURITY, THEFT & VANDALISM
2.0%
$183
$3,809
$87,005
CONTINGENCY
IR13 %
919.14
$19040
$438.027
TOTAL SOFT COSTS
28.85;
$1,226,476
FINANCING COSTS:
CONSTRUCTION FINANCING (Interest During Construction)
11.0%
S21.05
S20,950
$481;853
FINANCING FEES
20%
$3.89
$3,870
$89,000
SUBTOTAL FINANCING COSTS
13.0%
$$70,893
TOTAL CONSTRUCTION COST
Source. P�crre 6Zent F4euars, Inc
$289.92 $265,591 $8,177,699
TIERRAWEST
A D v I S O It 5
ECONOMIC ANALYSIS OF 1112 PICO BLVD
Attachment 1 (cont.)
Tier I Income Estimate
City of Santa Monica 1 17
TIERRAWE.ST
A u V I S 0 is S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica / 18
ATTACHEMENT I cant.
CITY OF SANTA MONICA
PICO BOULEVARD HOMES, MULTI- FAMILY HOUSING DEVELOPMENT
FINANCIAL PROFORMA iRent - $3,000 MKT -19 Units Plus Very Low -4 -Tier l Value Analysis) Baseline LUCE Estimates
Residential Rental Income
Manager's Unit 0.0 Units @ $0 /Month $0
Markel Rate Units
Two - Bedroom 19.0 Units @ $3,000 /Month $684,000
Three - Bedroom 0.0 Units @ $0 /Month $0
Very-Low Income (oD 50% of Median
Two - Bedroom
4.0 Units @
$944 /fvbnth
$45,312
Three - Bedroom
0.0 Units @
$0 /Nbnth
$0
Laundry/Msc. Income
23.0 Units @
$8 /Nbnth
$2,208
Gross Income
$731,520
(Less) Vacancy and Collection
5.0% Gross Income
(36,576)
Gross Effective Income
$694,944
Operating Expenses
General Operating Expenses`
23.0 Units @
$2,900 /Unit
$66,700
Property Taxes
23.0 Units@
$365 /Unit °
100,740
Operating & Capital Reserves
23.0 Units @
$906 /Unit
20,848
(188,288)
Total Operating Expenses
23.0 Units @
($4,171) /Unit
Net Operating Income
$506,656
Value of the Units $10,133,114
Total Project Revenue $10,133,114
(Less) Developer Profit 10.0% of Project Value ($1,013,311)
(Less) Construction Costs (6,177,599)
Estimated Tier I Value /(Feasibility Gap) $2,942,204
Estimated Tier I Value /( Feasibility Gap) $2,942,204
Per Unit 23.0 Units $127,922
Per S.F. of Land 20.560 Sf $143.10
Source: Terre W,S(AMN.., NC
TIERRAWEST
A D V I S 0 R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
Attachment 2
Tier 11 Construction Cost Estimate
City of Santa Monica 1 19
TiERRAWEST
A D V I S O R S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 120
ATTACHMENT
CITY OF SANTA MONICA
PICO BOULEVARD HOMES, MULTI - FAMILY HOUSING DEVELOPMENT
FINANCIAL PROFORMA (Rent-$3,000 MKT -28 Plus Very Law -4 -Tier II Value Analysis) Density Bonus Estimates
_ _
_______________________ _______________________________
Site Size (in acres): 0.47
Number of units existing: 0.0
Number of units proposed: 32.0
Average Unit Size: 995
PROJECT COSTS
LAND ACQUISITION COSTS:
LAND PURCHASE
ACQUISITION COSTS
RESIDENTIAL IN -LIEU FEE
TOTAL ACQUISITION COSTS
DIRECT DEVELOPMENT COSTS:
DEMOLITION
OFF -SITE IMPROVEMENTS
ON -SITE IMPROVEMENTS (incl. landscaping)
PARKING (Structure)
RESIDENTIAL SHELL CONSTRUCTION
FURNITURE FIXTURES & EQUIPMENT (Fixed Equipment)
GENERAL CONDITIONS
TOTAL DIRECT COSTS
TOTAL LAND & DIRECT COSTS
INDIRECT COSTS:
ARCHITECTURE & ENGINEERING
PUBLIC PERMITS & FEES
TAXES, INSURANCE, LEGAL & ACCOUNTING
MARKETING
DEVELOPER FEE (Administration & Overhead)
SECURITY, THEFT & VANDALISM
CONTINGENCY
TOTAL SOFT COSTS
ARENUNITS PER SQ FT PER UNIT TOTAL
20,560 $0.00 $0 $0
20,560 $0.00 $0 $0
31,833 $0.00 $0 $0
Allowance
So. Ft.
per Unit
$0
20,560
$1.50
$964
$30,840
20,560
$2.50
$1,606
$51,401
64.0
$5,486
$30,000
$1,920,000
31,833
$123.00
$122,359
$3,915,475
31,833
$1,50
$1,492
$47,750
31,833
$3.00
$2,984
$95,499
10.0%
$19.04
$18,941
$6,060,965
$6,060,965
%of $per Bldg
construction
So. Ft.
per Unit
Total
4.0%
$7.62
$7,576
$242,439
5.0°/
$9.52
$9,470
$303,048
3.5%
$6.66
$6,629
$212,134
0.5%
$0.95
$947
$30,305
3.0%
$5.71
$5,682
$181,829
2.0%
$3.81
$3,788
$121,219
10.0%
$19.04
$18,941
$606,097
28.0%
$1,697,070
FINANCING COSTS:
CONSTRUCTION FINANCING (Interest During Construction) 11.0% $20.85 $20,745 $663,849
FINANCING FEES 1.5% $2.80 $2,781 $89000
SUBTOTAL FINANCING COSTS 12.4% $752,849
TOTAL CONSTRUCTION COST
Source: Terre West Advisers, he.
$267.36 $265,965 $8,510,885
TIERRA WEST
A D V I S 0 It S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
Attachment 2 (cont.)
Tier H Income Estimate
City of Santa Monica 121
TIERRAWI ?ST
A n V i S 0 e S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica 122
Net Operating Income
$738,578
ATTACHEMENT 2 cont.
CITY OF SANTA MONICA
Value of the Units
PICO BOULEVARD HOMES, MULTI - FAMILY HOUSING DEVELOPMENT
$14,771,557
__.__ FINANCIAL PROFORMA (Rent-$3,0 00 MKT -28 Plus Ve_r�LOw_4
-Tier ii Value Analysis) Densi Bonus Estimates_
sidential Rental Income
(Less) Developer Profit 10.0% of Project Value
($1,477,156)
Manager's Unit
0.0 Units @
$0 Month
$0
Market Rate Units
$4,783,517
Estimated Tier II Value /(Feasibility Gap)
Two-Bedroom
28.0 Units @
$3,000 Month
$1,008,000
Three - Bedroom
0.0 Units @
$0 Month
$0
VeD-Low Income Q 50% of Median
Two-Bedroom
4.0 Units @
$944 Month
$45,312
Three - Bedroom
0.0 Units @
$0 Month
$0
Laundry/Misc. Income
32.0 Units @
$8 Month
$3,072
Gross Income
$1,056,384
(Less) Vacancy and Collection
5.0% Gross Income
(52,819)
Gross Effective Income
$1,003,565
Operating Exoenses
General Operating.ExI)enses`
32.0 Units @
$2,900 /Unit
$92,800
Property Taxes
32.0 Units @
$370 /Unit °
142,080
Operating & Capital Reserves
32.0 Units @
$941 /Unit
30,107
(264,987)
Total Operating Expenses
32.0 Units @
($4,211) /Unit
Net Operating Income
$738,578
Net Operating Income
$738,578
ap Rate
5,0111.
Value of the Units
$14,771,557
Total Project Revenue
$14,771,557
(Less) Developer Profit 10.0% of Project Value
($1,477,156)
(Less) Construction Costs
(8,510,885)
Estimated Tier II Value /(Feasibility Gap)
$4,783,517
Estimated Tier II Value /(Feasibility Gap)
$4,783,517
Per Unit 320 Units
$149,485
Per S.F. of Land __.. 20,560 Sf
$232.66
cw Tromr Wo(A&V ., he
TIERRAWEST
A D V I S 0 It S
ECONOMIC ANALYSIS OF 1112 PICO BLVD
Attachment 3
Affordable Housing Chart
City of Santa Monica 23
TIERRAWEST
A D V I S O R S
Income Category
Household Size
HCD Housing Costs
Utility Allowance
Rent
Calculation -
Source: HCDlTierra West Advisors, Inc.
ECONOMIC ANALYSIS OF 1112 PICO BLVD
City of Santa Monica / 24
Very Low Income
3.0
$1,014
70
TIERRAWEST
A D V I S 0 It S
MAXIMUM ALLOWABLE INCOME (ANNUAL)
Household
Very Low
Low
Low
Moderate
Size
(50 %)
(60 %)
(80 %)
(100 %)
1
$29,900
$35,900
$47,850
$59,800
2
$34,200
$41,000
$54,650
$68,400
3
$38,450
$46,100
$61,500
$76,900
4
$42,700
$51,200
$68,300
$85,400
5
$46,150
$55,300
$73,800
$92,300
6
$49,550
$59,400
$79,250
$99,100
7
$52,950
$63,500
$84,700
$105,900
8
$56,400
$67,600
$90,200
$112,800
MAXIMUM ALLOWABLE RENTS
(Based on 30 % Affordability Standard)
Rents: Median Income for 4- person household x Income Level x Bedroom
Adjustment x Affordability Standard (30 %) / 12.
* Published income limits have decreased slightly since 2011; Income and
Rents limits in the tables above reflect a hold - harmless approach and are
therefore held at their highpoint reached in 2011.
Very Low
Low '
Low
Moderate
Unit Type
(50 %)
(60 %)
(80 %)
(100 %)
0 -Bdrm
$747
$897
$1,196
$1,495
1 -Bdrm
$854
$1,025
$1,366
$1,708
2 -Bdrm
$1,014
$1,217
$1,623
$2,028
3 -Bdrm
$1,158
$1,390
$1,853
$2,316
4 -Bdrm
$1,308
$1,569
$2,092
$2,615
Rents: Median Income for 4- person household x Income Level x Bedroom
Adjustment x Affordability Standard (30 %) / 12.
* Published income limits have decreased slightly since 2011; Income and
Rents limits in the tables above reflect a hold - harmless approach and are
therefore held at their highpoint reached in 2011.
ATTACHMENT C
21
F: \Municipal Law\S h a re\LAWS\Barry\P ico Eleven DA Ordinance 11 -11 -14
City Council Meeting 11 -11 -14 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
APPROVING THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
SANTA MONICA, A MUNICIPAL CORPORATION, AND PICO ELEVEN, LLP
WHEREAS, on June 12, 2012, PICO ELEVEN, LLP, hereinafter "Developer,"
submitted an application for a development agreement ("Development Agreement ")
which involves the construction of a 32,088 square -foot, 45- foot -tall residential
building consisting of 32 two- bedroom rental units and two -level subterranean parking
garage consisting of 64 parking spaces, with 4 of these units affordable for
occupancy by 50% Income Households and 11 additional units price- restricted ( "the
Project'); and
WHEREAS, this project is an infill housing project exempt from the California
Environmental Quality Act pursuant to CEQA Section 21159.24; and
WHEREAS, the Development Agreement is consistent with the objectives,
policies, general land uses and programs specified in the General Plan of the City of
Santa Monica, as described below, and as detailed in the accompanying City Council
staff report prepared for this proposed project and the exhibits thereto, including but
not limited to:
1
(a) The project consists of a multi - family building containing thirty -two large,
two- bedroom units with large outdoors spaces that would be developed in conformity
with the High Density Housing land use designation of the LUCE.
(b) Consistent with LUCE Goal LU 10 and LU Policy 10.2, which requires new
development to contribute directly to the community's core social, physical and
transportation goals through mechanisms such as community benefits, the proposed
project provides 4 on -site affordable housing units for occupancy by 50% Income
Households and 11 additional price- restricted units, is a LEED® Platinum building
that incorporates widened sidewalks and other sustainable design features, provides
a contribution to the City's transportation infrastructure, includes a TDM plan to help
reduce vehicle trips, and provides a contribution to open space.
(c) Consistent with LUCE Policy LU 10.2, which requires new development
that requests height above the base to provide measurable benefits to foster
complete neighborhoods and support the goals of the LUCE, the proposed project
provides 4 on -site affordable housing units for occupancy by 50% Income
Households and 11 additional price - restricted units, is a LEED® Platinum building
that incorporates widened sidewalks and other sustainable design features, provides
a contribution to the City's transportation infrastructure, includes a TDM plan to help
reduce vehicle trips, and provides a contribution to open space.
(d) Consistent with LUCE Policies H1.1 through H1.7, the proposed project
provides four affordable housing units subject to the City's Affordable Housing
Production Program and the City has provided direct financial assistance by waiving
specified fees and taxes for these units.
K
(e) Consistent with Housing Element Policy 2.4, which encourages the
distribution of affordable housing throughout the City, the proposed project provides
four affordable housing units subject to the City's Affordable Housing Production
Program.
(f) Consistent with Housing Element Policy 3.4, which encourages the
replacement of multi - family housing that is demolished, the proposed project will
provide thirty -two housing units.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The Development Agreement by and between the City of Santa
Monica, a municipal corporation, and Pico Eleven, LLP, which is attached hereto as
Exhibit 1 and incorporated herein by reference, is hereby approved.
SECTION 2. Each and every term and condition of the Development
Agreement approved in Section 1 of this Ordinance shall be and is made a part of the
Santa Monica Municipal Code and any appendices thereto. The City Council of the
City of Santa Monica finds that public necessity, public convenience, and general
welfare require that any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Development Agreement, to the extent
of such inconsistencies and no further, be repealed or modified to that extent
necessary to make fully effective the provisions of this Development Agreement.
t
SECTION 3. Any provision of the Santa Monica Municipal Code or appendices
thereto, inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, are hereby repealed or modified to that extent
necessary to effect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of any competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance, and each and every section, subsection, sentence,
clause, or phrase not declared invalid or unconstitutional without regard to whether
any portion of the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall attest to the
passage of this Ordinance. The City Clerk shall cause the same to be published once
in the official newspaper within 15 days after its adoption. This Ordinance shall be
effective 30 days from its adoption.
APPROVED AS TO FORM:
MARSKA JOKE$ MOIJTRI
City Attorney (. J
0
Reference:
ATTACHMENT D
PLANS
Is available at the City Clerk's Office
Filed with Staff Report 11/11/2014, Item
7A
Within Legislative File 401 -032
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ATTACHMENT E
23
Recording Requested By:
City of Santa Monica
When Recorded Mail To:
City of Santa Monica
Santa Monica City Attorney's Office
1685 Main Street, Third Floor
Santa Monica, CA 90401
Attention: Senior Land Use Attorney
Space Above Line For Recorder's Use
No Recording Fee Required
California Government Code Section 27383
DEVELOPMENT AGREEMENT
BETWEEN
CITY OF SANTA MONICA
AND
PICO ELEVEN, LLC
,2014
DevAgmt (draft 10.23.14)
Table of Contents
RECITALS..................................................................................................
..............................1
ARTICLE1
DEFINITIONS ........................................................................ ...............................
3
ARTICLE 2
DESCRIPTION OF THE PROJECT ...................................... ...............................
5
2.1
General Description ................................................................... ..............................5
2.2
Principal Components of the Project ......................................... ..............................5
2.3
No Obligation to Develop .......................................................... ..............................5
2.4
Vested Rights ............................................................................. ..............................6
2.5
Permitted Uses ........................................................................... ..............................8
2.6
Significant Project Features and LUCE Community Benefits .. ..............................8
2.7
Local Preference Housing ......................................................... .............................18
2.8
Parking ...................................................................................... .............................18
2.9
Design ....................................................................................... .............................19
ARTICLE 3
CONSTRUCTION ................................................................ ...............................
20
3.1.
Construction Mitigation Plan .................................................... .............................20
3.2.
Construction Hours ................................................................... .............................20
3.3.
Outside Building Permit Issuance Date .................................... .............................20
3.4.
Construction Period .................................................................. .............................21
3.5.
Tiebacks .................................................................................... .............................21
3.6.
Damage or Destruction—, ......................................................................................
21
3.7.
Construction Staging ................................................................. .............................21
ARTICLE 4
PROJECT FEES, EXACTIONS, AND CONDITIONS ....... ...............................
21
4.1
Fees, Exactions, and Conditions ............................................... .............................21
4.2
Conditions on Modifications ..................................................... .............................22
4.3
Implementation of Conditions of Approval .............................. .............................22
ARTICLE 5
EFFECT OF AGREEMENT ON CITY LAWS AND REGULATIONS ...........
22
5.1
Development Standards for the Property; Existing Regulations ...........................22
5.2
Permitted Subsequent Code Changes ....................................... .............................23
5.3
Common Set of Existing Regulations ....................................... .............................25
5.4
Conflicting Enactments ............................................................. .............................25
5.5
Timing of Development ............................................................ .............................25
DevAgmt (draft 10.23.14)
ARTICLE 6
ARCHITECTURAL REVIEW BOARD .............................. ...............................
25
6.1
Architectural Review Board Approval .....................................
.............................26
6.2
Expiration of ARB Approval ....................................................
.............................26
6.3
Concurrent Processing ..............................................................
.............................26
ARTICLE 7
CITY TECHNICAL PERMITS ............................................ ...............................
26
7.2
Diligent Action by City .............................................................
.............................26
7.3
Conditions for Diligent Action by the City ...............................
.............................27
7.4
Duration of Technical City Permits ..........................................
.............................28
7.5
Accessibility of Deed - Restricted Affordable Units ..................
.............................28
ARTICLE 8
AMENDMENT AND MODIFICATION ............................. ...............................
29
8.1
Amendment and Modification of Development Agreement ....
.............................29
ARTICLE9
TERM ................................................................................... ...............................
29
9.1
Effective Date ...........................................................................
.............................29
9.2
Term ..........................................................................................
.............................29
ARTICLE 10
PERIODIC REVIEW OF COMPLIANCE .......................... ...............................
29
10.1
City Review ..............................................................................
.............................29
10.2
Evidence of Good Faith Compliance ........................................
.............................29
10.3
Information to be Provided to Developer .................................
.............................30
10.4
Notice of Breach; Cure Rights ..................................................
.............................30
10.5
Failure of Periodic Review .......................................................
.............................30
10.6
Termination of Development Agreement .................................
.............................30
10.7
City Cost Recovery ............................................................. ...............................
30
ARTICLE11
DEFAULT ............................................................................ ...............................
31
11.1
Notice and Cure ........................................................................
.............................31
11.2
Remedies for Monetary Default ................................................
.............................31
11.3
Remedies for Non - Monetary Default .......................................
.............................32
11.4
Modification or Termination of Agreement by City .................
.............................34
11.5
Cessation of Rights and Obligations .........................................
.............................34
11.6
Completion of Improvements . ................................................
.............................35
ARTICLE 12
MORTGAGEES ................................................................... ...............................
35
12.1
Encumbrances on the Property .................................................
.............................35
ARTICLE 13
TRANSFERS AND ASSIGNMENTS ................................. ...............................
37
13.1
Transfers and Assignments .......................................................
.............................37
2
DevAgmt (draft 10.23.14)
13.2
Release Upon Transfer .............................................................. .............................37
ARTICLE 14
INDEMNITY TO CITY ....................................................... ...............................
38
14.1
Indemnity ................................................................................. ..............................3
8
14.2
City's Right to Defense ............................................................. .............................38
ARTICLE 15
GENERAL PROVISIONS ................................................... ...............................
38
15.1
Notices ...................................................................................... .............................38
15.2
Entire Agreement; Conflicts ..................................................... .............................39
15.3
Binding Effect ........................................................................... .............................39
15.4
Agreement Not for Benefit of Third Parties ............................. .............................40
15.5
No Partnership or Joint Venture ............................................... .............................40
15.6
Estoppel Certificates ................................................................. .............................40
15.7
Time ........................................................................................... ............................40
15.8
Excusable Delays ...................................................................... .............................41
15.9
Governing Law ......................................................................... .............................42
15.10
Cooperation in Event of Legal Challenge to Agreement .......... .............................42
15.11
Attorneys' Fees ......................................................................... .............................42
15.12
Recordation ............................................................................... .............................42
15.13
No Waiver ................................................................................. .............................42
15.14
Construction of this Agreement ................................................ .............................42
15.15
Other Governmental Approvals ................................................ .............................42
15.16
Venue ........................................................................................ .............................44
15.17
Exhibits ..................................................................................... .............................44
15.18
Counterpart Signatures .............................................................. .............................44
15.19
Certificate of Performance ........................................................ .............................45
15.20
Interests of Developer ............................................................... .............................45
15.21
Operating Memoranda .............................................................. .............................45
15.22
Acknowledgments, Agreements and Assurance on the Part of Developer .
.......... 45
15.23
Waiver of Protest ...................................................................... .............................46
15.24
Not a Public Dedication ............................................................ .............................46
15.25
Other Agreements ..................................................................... .............................46
15.26
Severability and Termination .................................................... .............................46
N
DevAgmt (draft 10.23.14)
DEVELOPMENT AGREEMENT
This Development Agreement ( "Agreement "), dated 2014
( "Effective Date "), is entered into by and between, PICO ELEVEN, LLC, a California
limited liability company ( "Developer "), and the CITY OF SANTA MONICA, a
municipal corporation organized and existing pursuant to the laws of the State of
California and the Charter of the City of Santa Monica (the "City "), with reference to the
following facts:
RECITALS
A. Pursuant to California Government Code Section 65864 et seq., Chapter
9.48 of the Santa Monica Municipal Code, and Santa Monica Interim Ordinance No.
2466 (collectively, the "Development Agreement Statutes "), the City is authorized to
enter into binding development agreements with persons or entities having a legal or
equitable interest in real property for the development of such real property.
B. Developer is the owner of approximately 19,000 square feet of land
located in the City of Santa Monica, State of California, commonly known as 1112 -1122
Pico Boulevard, as more particularly described in Exhibit "A" attached hereto and
incorporated herein by this reference (the "Property "). The Property is currently vacant
and unimproved.
C. The City has included the Property within the High Density Housing land
use designation under the City's recently adopted Land Use and Circulation Element of
its General Plan (the "LUCE "). To aid in the redevelopment of the Property, the City
and Developer desire to allow Developer to construct a new building and related
improvements.
D. On June 6, 2012, Developer filed an application for a Development
Agreement, pursuant to Santa Monica Municipal Code ( "SMMC ") Section 9.48.020
(the "Development Application "). The Development Application was designated by the
City as Application No. DEV 12DEV -008. The Development Application is for the
development of a four story residential apartment building containing 32 residential units
and two levels of subterranean parking and is more fully described in this Agreement.
The Project contains no commercial uses. Under the LUCE the Project is deemed a Tier
2 project. The Project is more particularly shown on the Project Plans attached hereto as
Exhibit `B" (the "Project Plans ").
E. On April 26, 2011, the City Council adopted Interim Ordinance No. 2356,
which has been extended and modified on several occasions thereafter, including most
recently by Santa Monica Interim Ordinance No. 2466 ( "IZO "). The IZO prohibits the
issuance of permits for development projects which would constitute a Tier 2 or Tier 3
project as established pursuant to LUCE Chapter 2.1 as delineated in the Land Use
Designation Map approved by the City Council on July 6, 2010 unless developed
pursuant to a development agreement adopted in accordance with the Development
Agreement Statutes. Adoption of this Agreement will allow for the issuance of permits
for the Project.
F. Developer has paid all necessary costs and fees associated with the City's
processing of the Development Application and this Agreement.
G. Following filing of the Development Application, the City determined that
the project was exempt from the California Environmental Quality Act ( "CEQA ")
pursuant to CEQA Guideline Section 21159.24.
H. The primary purpose of the Project is to create an apartment building that
contains family -sized units along with deed - restricted affordable units and would be
considered a multi - family "preferred permitted project" as defined in Zoning Ordinance
Table 9.04 -1 and is also consistent with the LUCE.
I. The Parties desire to enter into this Agreement in conformance with the
Development Agreement Statutes and the LUCE in order to achieve the development of
the Project on the Property.
J. The City Council has determined that a development agreement is
appropriate for the proposed development of the Property. This Agreement will
(1) eliminate uncertainty in planning for the Project and result in the orderly development
of the Project, (2) assure installation of necessary improvements on the Property,
(3) provide for public infrastructure and services appropriate to development of the
Project, (4) preserve substantial City discretion in reviewing subsequent development of
the Property, (5) secure for the City improvements that benefit the public, (6) ensure the
provisions of community benefits as envisioned in the LUCE, and (7) otherwise achieve
the goals and purposes for which the Development Agreement Statutes were enacted.
K. This Agreement is consistent with the public health, safety, and welfare
needs of the residents of the City and the surrounding region. The City has specifically
considered and approved the impact and benefits of the development of the Project on the
Property in accordance with this Agreement upon the welfare of the region. The Project
will provide a number of public benefits, including without limitation the following: on-
site affordable housing, a transportation demand management plan, shared parking,
community physical improvements including widened sidewalks, bicycle storage,
LEEDO Gold equivalency, a transportation infrastructure contribution, local hiring,
electric vehicle conduits, photovoltaic panels, family -sized residential units, and
enhanced project design.
L. The City Council has found that the provisions of this Development
Agreement are consistent with the relevant provisions of the City's General Plan,
including the LUCE.
M. The City Council has also found that the additional density bonus units in
the Project are consistent with both the City's Affordable housing Production Program
(SMMC Chapter 9.56) and the City's standards for density bonuses in residential zones
as set forth in SMMC Part 9.04.10.14, and with the State Density Bonus provisions as set
forth in California Gov't Code Sections 65915 et. seq.
N. On August 27, 2014, the City's Planning Commission held a duly noticed
public hearing on the Development Application and this Agreement. At such hearing, the
Commission recommended approval of the Development Application and this Agreement
subject to certain modifications to this Agreement.
O. On November 11, 2014, the City Council held a duly noticed public
hearing on the Development Application and this Agreement and at such hearing the City
made the necessary California Environmental Quality Act ( "CEQA ") findings that the
Project qualifies for an exemption from CEQA pursuant to Public Resources Code
Section 21159.24; and introduced Ordinance No. for first reading, approving this
Agreement.
P. On November 25, 2014, the City Council Adopted Ordinance No.
approving this Agreement.
NOW THEREFORE, in consideration for the covenants and conditions
hereinafter set forth, the Parties hereto do hereby agree as follows:
Article 1
The terms defined below have the meanings in this Agreement as set forth below
unless the Agreement expressly requires otherwise:
1.1 " Agreement" means this Development Agreement entered into between
the City and Developer as of the Effective Date.
1.2 "Affordable Units" means the two (2) dwelling units required by the
City's Affordable Housing Production Program, and the additional the two (2) dwelling
units being provided, for a total of four (4) dwelling units, pursuant to Sections 2.6.1(h),
2.6.201) and 2.6.2(a)(2) of this Agreement and as designated on the Project Plans.
1.3 "ARB" means the City's Architectural Review Board.
1.4 `Building" means a new four -story residential building, as shown on the
Project Plans (Exhibit "B").
1.5 "City Council" means the City Council of the City of Santa Monica, or its
designee.
1.6 "City General Plan" or "General Plan" means the General Plan of the
City of Santa Monica, and all elements thereof including the LUCE, as of the Effective
Date unless otherwise indicated in this Agreement.
1.7 "Certificate of Occupancy' means either a temporary or permanent
Certificate of Occupancy, unless otherwise expressly specified in this Agreement.
1.8 "Discretionary Approvals" are actions which require the exercise of
judgment or a discretionary decision, and which contemplate and authorize the
imposition of revisions or additional conditions, by the City, including any board,
commission, or department of the City and any officer or employee of the City.
Discretionary Approvals do not include Ministerial Approvals.
1.9 "Effective Date" has the meaning set forth in Section 9.1 below.
1.10 "Floor Area" has the meaning given that term in Section 9.04.02.030.315
of the Zoning Ordinance.
1.11 "Floor Area Ratio" and "FAR" means floor area ratio as defined in
Section 9.04.02.030.320 of the Zoning Ordinance.
1.12 "Including" means "including, but not limited to."
1.13 "LEED® Rating System" means the Leadership in Energy and
Environmental Design (LEED®) for New Construction & Major Renovations adopted by
the U.S. Green Building Council and implemented by the Green Building Certification
Institute in effect at the time of ARB submittal. In the event no such system exists at the
time Developer submits for ARB approval, an alternative green building rating system
may be selected by the Developer subject to approval by the City.
1.14 "Legal Action" means any action in law or equity.
1.15 "Ministerial Approvals" mean any action which merely requires the City
(including any board, commission, or department of the City and any officer or employee
of the City), in the process of approving or disapproving a permit or other entitlement, to
determine whether there has been compliance with applicable statutes, ordinances,
regulations, or conditions of approval.
1.16 "Parties" mean both the City and Developer, and "Ear" means either
the City or Developer, as applicable.
1.17 "Planning Director" means the Planning Director of the City of Santa
Monica, or his or her designee.
1.18 "Price Regulated Units" mean the eleven (11) deed restricted dwelling
units being provided pursuant to Section 2.6.2(a)(3) of this Agreement and as designated
on the Project Plans.
1.19 "Project" means the development project reflected on the Project Plans.
1.20 "Project Plans" mean the plans for the Project that are attached to this
Agreement as Exhibit `B ".
1.21 "Rental Housing" means dwelling units intended for Residential Use, as
defined in Section 1.21, but which are not available for separate or individual ownership.
The term Rental Housing shall not include short-term rental housing or hotel uses as
defined in SMMC Sections 9.04.02.030.778 and 9.04.02.030.410, respectively.
1.22 "Residential Use" means one or more rooms designed, occupied or
intended for occupancy as primary living quarters in a building or portion thereof.
1.23 "Subterranean Space" consists of two levels in the Project below
theoretical grade and designated as "P1" and "P2" as shown on the Project Plans attached
as Exhibit "B ".
1.24 "Zoning Ordinance" means the City of Santa Monica Comprehensive
Land Use and Zoning Ordinance (Chapter 9.04 of the SMMC), and Santa Monica Interim
Ordinance No. 2466, as the same are in effect on the Effective Date, as set forth in their
entirety as part of Exhibit "E" (Planning and Zoning).
ARTICLE 2
DESCRIPTION OF THE PROJECT
2.1 General Description. The Project includes all aspects of the proposed
development of the Property as more particularly described in this Agreement and on the
Project Plans. If there is a conflict or inconsistency between the text of this Agreement
and the Project Plans, the Project Plans will prevail; provided, however, that omissions
from the Project Plans shall not constitute a conflict or inconsistency with the text of this
Agreement.
2.2 Principal Components of the Project. The Project consists of the
following principal components, as well as the other components delineated in the Project
Plans, all of which are hereby approved by the City subject to the other provisions of this
Agreement:
(a) Construction of a new four -story residential building, including
thirty -two (32) two- bedroom Rental Housing units as shown on the Project Plans. Of the
32 two - bedroom Rental Housing units, four (4) will be deed - restricted affordable Rental
Housing units as specified in Sections 2.6. 10 2.6.l(a)(1) and 2.6.2(aa)(2) as the
Affordable Units, and eleven (11) will be deed restricted with price regulations as
specified in Section 2.6. 2(a)(3) as the Price Regulated Units.
(b) Sixty -Four (64) on -site vehicular parking stalls will be provided as
shown on the Project Plans.
2.3 No Obligation to Develop.
2.3.1 Except as specifically provided herein
(a) Nothing in this Agreement shall be construed to require
Developer to proceed with the construction of the Project or any portion thereof.
(b) The decision to proceed or to forbear or delay in
proceeding with construction of the Project or any portion thereof shall be in Developer's
sole discretion.
(c) Failure by Developer to proceed with construction of the
Project or any portion thereof shall not give rise to any liability, claim for damages or
cause of action against Developer, except as may arise pursuant to a nuisance abatement
proceeding under SMMC Chapter 8.96, or any successor legislation.
2.3.2 Failure by Developer to proceed with construction of the Projector
any portion thereof shall not result in any loss or diminution of development rights,
except upon expiration of Developer's vested rights pursuant to this Agreement, or the
termination of this Agreement.
2.3.3 Notwithstanding any provision of this Section 2.3 to the contrary,
Developer shall be required to implement all conditions required under this Agreement in
accordance with and at the time specified in Exhibit "D" and may be subject to all
remedies specified in this agreement for the failure to implement these conditions of
approval.
2.4 Vested Rights.
2.4.1 Approval of Project Plans. The City hereby approves the Project
Plans. The City shall maintain a complete copy of the Project Plans, stamped
"Approved" by the City, in the Office of the City Clerk, and Developer shall maintain a
complete copy of the Project Plans, stamped "Approved" by the City, in its offices or at
the Project site. The Project Plans to be maintained by the City and Developer shall be in
a half -size set. Further detailed plans for the construction of the Building and
improvements, including, without limitation, structural plans and working drawings, shall
be prepared by Developer subsequent to the Effective Date based upon the Project Plans.
2.4.2 Minor Modifications to Project. Developer with the approval of
the Planning Director, may make minor changes to the Project or Project Plans ( "Minor
Modifications ") without amending this Agreement; provided that the Planning Director
makes the following specific findings that the Minor Modifications: (i) are consistent
with the Project's approvals as approved by the City Council; (ii) are consistent with the
provisions, purposes and goals of this Agreement; (iii) are not detrimental to the public
health, safety, convenience or general welfare; and (iv) will not significantly and
adversely affect the public benefits associated with the Project. The Planning Director
shall notify the Planning Commission in writing of any Minor Modifications approved
pursuant to this Section 2.4.2. Any proposed change which the Planning Director denies
as not qualifying for a Minor Modification based on the above findings must be
processed as a Major Modification.
2.4.3 Modifications Requiring Amendment to this Agreement.
Developer shall not make any "Major Modifications" (defined below) to the Project
without first amending this Agreement to permit such Major Modifications. A " Manor
Modification" means the following:
(a) Reduction of any setback of the Project, as depicted on the
Project Plans, if by such reduction the applicable setback would be less than is permitted
in the applicable zoning district under the Zoning Ordinance in effect on the date such
modification is applied for;
(b) Any change in use not consistent with the permitted uses
defined in Section 2.5 below;
(c) A reduction in the number of Rental Housing units
specified in Section 2.2(a) by more than 3 units.
(d) Any increase in the number of parking spaces shown on the
Project Plans by more than three (3) spaces; or any decrease in the number of parking
spaces below 62;
(e) Any material change in the number or location of curb cuts
shown on the Project Plans;
(f) Any variation in the design, massing or building
configuration, including but not limited to, floor area and building height, that renders
such aspects out of substantial compliance with the Project Plans after ARB Approval;
and
(g) Any change that would substantially reduce or alter the
community benefits or significant project features as set forth in Section 2.6.
If a proposed modification does not exceed the Major Modification thresholds
established above, then the proposed modification may be reviewed in accordance with
Section 2.4.2.
2.4.4 City Consent to Modification. The Planning Director shall not
unreasonably withhold, condition, or delay his or her approval of a request for such
Minor Modification. The City may impose fees, exactions, conditions, and mitigation
measures in connection with its approval of a Minor or Major Modification, subject to
any applicable law. Notwithstanding anything to the contrary herein or in the Existing
Regulations, if the Planning Director approves a Minor Modification or if the City
approves a Major Modification (and the corresponding amendment to this Agreement for
such Major Modification), as the case may be, Developer shall not be required to obtain
any other Discretionary Approvals for such modification, except for ARB approval in the
case of certain Major Modifications.
2.4.5 Right to Develop. Subject to the provisions of Section 3.3 below,
during the Term (as defined in Section 9.2 below) of this Development Agreement,
Developer shall have the vested rights (the "Vested Rights ") to (a) develop and construct
the Project in accordance with the following: (i) the Project Plans (as the same may be
modified from time to time in accordance with this Agreement); (ii) any Minor
Modifications approved in accordance with Section 2.4.2; (iii) any Major Modifications
which are approved pursuant to Section 2.4.3; and (iv) the requirements and obligations
of Developer related to the improvements which are specifically set forth in this
Agreement, and (b) use and occupy the Project for the permitted uses set forth in Section
2_5. Except for any required approvals from the ARB pursuant to Article 6 of this
Agreement, the City shall have no further discretion over the elements of the Project
which have been delineated in the Project Plans (as the same may be modified from time
to time in accordance with this Agreement).
2.5 Permitted Uses. The City approves the following permitted uses for the
Project:
2.5.1 Permitted Uses. Permitted Uses in the Project are as specified
below:
(a) Rental Housing, including the residential lobby, as shown
on the Project Plans.
(b) Vehicle parking, bicycle parking and storage as shown on
the Project Plans.
Except as specifically provided herein, Developer will not be required to obtain any
additional Discretionary Approvals for any of the Permitted Uses. Permitted Uses may
commence in the Project upon issuance of a City business license and without any
discretionary planning approvals for such uses.
2.6 Significant Project Features and LUCE Community Benefits. The
significant project features and LUCE community benefits identified below in this
Section 2.6 shall be achieved and developed in accordance with the terms of this
Agreement.
2.6.1 Significant Project Features. Set forth below in this Section 2.6.1
are the significant project features that will be provided to the City:
(a) new Rental Housing, including family -sized units;
(b) tax revenues;
(c) construction jobs;
(d) City fee revenue for cultural arts;
(e) City fee revenue for child care facilities;
(f) Santa Monica - Malibu Unified School District fee revenue
for capital improvements;
(g) various standard public improvements and fees; and
(h) Developer shall meet its affordable housing obligation
through the development of two on -site units for 50% Income Households pursuant to the
City's Affordable Housing Production Program (Chapter 9.56 of the Existing
Regulations).
2.6.2 LUCE Community Benefits. Set forth below in this Section 2.6.2
are the additional community benefits that will be provided by the Project.
(a) On -Site Deed Restricted Housing.
(1) Instead of meeting part of its affordable housing
obligation through the payment of a fee as allowed by the City's Affordable Housing
Production Program (Chapter 9.56 of the Existing Regulations), Developer has agreed to
provide and shall provide an additional (third) on -site affordable unit for occupancy by
50% Income Households pursuant to the City's Affordable Housing Production Program.
(2) In addition to the affordable housing units
Developer is providing pursuant to Sections 2.6.1(h ) and 2.6.2(x)_(1), Developer shall
deed - restrict one (1) additional (fourth) Rental Housing unit for occupancy by households
making 50% Income Households pursuant to the City's Affordable Housing Production
Program (Chapter 9.56 of the Existing Regulations). The total number of affordable
housing units provided in the Project that will be deed - restricted and subject to the
provisions the City's Affordable Housing Production Program pursuant to Sections
2.6.1(h ), 2.6.2(a)_(1), and 2.6.2(a)(2) shall be four affordable units for occupancy by 50%
Income Households, which four (4) shall constitute the Affordable Units.
(3) In addition to the four (4) Affordable Units, the
Developer shall deed - restrict eleven (11) additional units as the Price Regulated Units as
shown on the Project Plans, which deed restriction shall establish the provisions for
regulating the rents on these units as set forth below:
(i) The Developer shall establish the initial rent for
each of these units without restriction.
(ii) The initial rent level established by the
Developer shall constitute the base rent for purposes of computing all future rent
adjustments during the tenancy of that tenant.
(iii) Upon initial rental of each of these units, the
Developer shall provide the following information to the Planning Director or his or her
designee:
(A) The name of the tenant(s) occupying the unit.
(B) The initial date of tenancy.
(C) The rental rate for the unit.
(D) The amenities included in the rent
(E) The amenities, including parking, that are provided for separate charge in addition to
the rent and the amount of that charge, if any.
(F) Evidence demonstrating that the tenant(s) have been informed in
writing of the restricted rent adjustments established in this subsection as set forth in the
lease.
(iv) Except after termination of the tenancy upon
just cause eviction pursuant to City Charter Section 2304, lawful court order or voluntary
vacancy of the unit by the tenant(s), the rent and the charge for any amenity shall
thereafter only be adjusted once annually on the anniversary date of the initial date of
tenancy for said tenant with said adjustment being equal to 100% of the percentage
increase in the Consumer Price Index (All Urban Consumers, Los Angeles, Riverside,
Orange County region) ( "CPP'). This increase shall be calculated as the percentage
increase in the CPI from the month that is two months before the month in which said
tenant commenced their tenancy to the month that is two months before the month in
which the adjustment is to occur.
(v) Upon termination of the tenant(s) lease for just
cause pursuant to City Charter Section 2304, lawful court order, or voluntary vacancy,
the Developer may again establish the rent and amenity charges, if any, for the
subsequent occupancy of the unit without restriction.
(vi) Upon re- rental of the unit, the
Developer shall provide the same information to the Planning Director as described
above in Section 2.6.2(a)(3)(iii) and the reason that the unit had previously become
vacant.
(vii) The rent level established by the
Developer shall constitute the new base rent for purposes of computing all future rent
adjustments during the tenancy of that tenant.
(viii) Except upon just cause eviction
pursuant to City Charter Section 2304, lawful court order or voluntary vacancy of the
unit by the tenant(s), the rent and the charge for any amenity shall only be adjusted once
annually on the anniversary date of the initial date of tenancy in accordance with the
same CPI increase procedure as set forth above in Section 2.6.2(a)(3)(iv).
(ix) Subdivisions (v) through (viii) shall
apply to each subsequent rental of the Price Regulated Units.
(4) All Affordable Units and Price Regulated Units
provided pursuant to Sections 2.6.1(h) and this Section 2.6.2(a) shall be two - bedroom
units and specifically identified on the Project Plans.
(b) Community Physical Improvements. Developer shall
incorporate, construct, operate and maintain enhanced elements of the Building's design,
including an Enhanced Walkway Area as shown on the Project Plans. Developer shall
make the Enhanced Walkway accessible to the public at all times, except that Developer
may limit public access to such Enhanced Walkway between the hours of 2:00 a.m.
through 5:00 a.m. The public use of the Enhanced Walkway shall be: (i) consistent with
the terms and conditions of this Agreement; (ii) solely for pedestrian access to and
passive use of the Enhanced Walkway by the public, including walking, strolling, and
similar activity; and (iii) compatible with Developer's development, use and enjoyment
of the Project. No use other than passive use of the Enhanced Walkway by the public
shall be permitted on the Enhanced Walkway.
The Enhanced Walkway shall remain the private property of
Developer with members of the public having only a license to occupy and use the
Enhanced Walkway in a manner consistent with this Article 2. Nothing in this
Agreement shall give members of the public the right, without the prior written consent
of Developer, which consent may be conditioned or withheld by Developer in
Developer's sole discretion, to engage in any other activity on the Enhanced Walkway,
including, without limitation any of the following: (i) cooking, dispensing or preparing
food; (ii) selling any item or engaging in the solicitation of money, signatures, or other
goods or services; (iii) sleeping or staying overnight; (iv) using sound amplifying
equipment; or (v) engaging in any illegal, dangerous, intimidating or other activity that
Developer reasonably deems to be inconsistent with other uses in the Project or with the
use of the Enhanced Walkway by other members of the public for the permitted purposes,
such as excessive noise or boisterous activity, bicycle or skateboard riding skating or
similar activity, being intoxicated, having offensive bodily hygiene, having shopping
carts or other wheeled conveyances (except for wheelchairs and baby strollers /carriages),
and Developer shall retain the right to cause persons engaging in such conduct to be
removed from the Project. Should any such persons refuse to leave the Property, they
may be deemed by Developer to be trespassing and Developer may contact local law
enforcement to request that appropriate law enforcement actions be taken. Developer
shall be entitled to establish and post rules and regulations for use of the Enhanced
Walkway consistent with the foregoing. Nothing in this Agreement or in the Project
Plans shall be deemed to mean that the Enhanced Walkway is a public park or is subject
to legal requirements applicable to a public park or other public space. Nothing in this
Section 2.6.2(b) is intended to limit the rights of any member of the public to use the
Enhanced Walkway for any purpose which is protected by the United States Constitution,
the California Constitution or any other applicable federal or California law that overrides
the rights granted to Developer under this Development Agreement with respect to
limitations on use of the Enhanced Walkway.
(c) Transportation Infrastructure Contribution. Developer shall
pay to the City, prior to obtaining a building permit for the Project, the sum of Seventy
Seven Thousand, Four Hundred Fifty Three Dollars and Fifty Five Cents ($77,453.55) to
be used by the City for transportation infrastructure improvements. In calculating this
sum, the Affordable Units were exempted entirely and the Price Regulated Units were
provided a 50 percent discount.
(d) Parks and Open Space Contribution. Developer shall pay
to the City, prior to obtaining a building permit for the Project, the sum of One Hundred
Forty Nine Thousand, Nine Hundred Eighty Dollars and Fifty Cents ($149,980.50) to be
used by the City for off -site parks and open space. In calculating this sum, the Affordable
Units were exempted entirely and the Price Regulated Units were provided a 50 percent
discount.
(e) Sustainable Design Features. Developer shall design the
Building so that, at a minimum, the Building shall achieve LEED® "Platinum"
certification by the Green Building Certification Institute under the LEED® Rating
System (the "Sustainable Design Status "). Developer shall confirm to the City that the
design for the Building has achieved the Sustainable Design Status in accordance with
the following requirements:
(1) Prior to the submission of plans and documents to
the City for Architectural Review Board review for the Building, Developer shall submit
for review by the City a preliminary checklist of anticipated LEED® credits along with a
narrative describing the project's sustainable features to demonstrate that the Building is
likely to achieve the Sustainable Design Status. The preliminary checklist will account
for credits targeted to be achieved; however, the credits shown on the preliminary
checklist may be subject to revision so long as the cumulative point total does not result
in a lower Sustainable Design Status.
(2) Prior to or concurrent with submittal of the plan
check application for the Building, Developer shall:
(i) Submit for review by the City an updated
checklist of anticipated LEED® credits along with a narrative describing the project's
sustainable features to demonstrate that the Building is likely to achieve the Sustainable
Design Status.
(ii) Retain the services of a third party,
independent individual designated to organize, lead, and review the completion of the
process of verifying and documenting that the Building and all of its systems and
assemblies are planned, designed, installed, and tested to meet the Building's
requirements (the "Commissioning Authority ").
(iii) Submit a Commissioning Plan which
includes the elements specified in California Code of Regulations Title 24, Part 11,
Section 5.410.2.3.
(3) Prior to issuance of a final Certificate of Occupancy
for the Building (but not a prerequisite to issuance of a temporary Certificate of
Occupancy to allow the Building to open for business), the City shall verify (which
verification shall not be unreasonably withheld, conditioned or delayed) that Developer
has submitted an application to the Green Building Certification Institute for LEED®
"Platinum" certification. Provided such application has been received by the Green
Building Certification Institute and is being processed, the Final Certificate of Occupancy
for the Building shall not be withheld or delayed based on the failure to receive
certification of the Sustainable Design Status.
(4) After the City's issuance of a final Certificate of
Occupancy for the Building and after Developer has opened the Building or any portions
thereof to the public, Developer shall be obligated to diligently pursue a determination
from the Green Building Certification Institute on such application.
(5) If the Building is ultimately denied certification for
the Sustainable Design Status by the Green Building Certification Institute and Developer
has exhausted all administrative remedies and appeals of that denial, then Developer shall
be subject to a fine in the amount of four dollars per square foot of Floor Area. This fine
may be waived if the City in its sole discretion determines that Developer made a good
faith effort to achieve and meet the intent of the Sustainable Design Status. Alternatively,
the fine may be waived if Developer commits to pursuing all necessary steps for the
Building to achieve certification to the "Platinum" level under the LEED ® Existing
Buildings Operations and Maintenance (LEED EBOM) rating system no later than 3
years after the Certificate of Occupancy was issued for the Project. If Developer fails to
obtain this certification within this time period, the fine shall be reimposed and
immediately payable to City.
(f) Shared Parking. In furtherance of the LUCE's shared
parking policies and consistent with providing sufficient on -site parking for the Project's
users, Developer may make any unused on -site parking (parking that is not leased to a
resident or required to be provided for Guest Parking in accordance with Section 2.8(a)
below) available for monthly lease to third parties ( "Shared Parking ") if (i) Developer
obtains a written report by a traffic and parking engineering firm that demonstrates that
the proposed additional parking spaces to be leased to third parties are not needed to meet
the Project's peak parking demand, (ii) Developer submits such report to the City for
review and approval, and (iii) the Planning Director approves the additional parking
spaces for Shared Parking. The Planning Director shall have the authority to include
reasonable conditions on the approval of any Shared Parking. Alternatively, Developer
may make parking spaces available for Shared Parking in accordance with any SMMC
procedure authorizing shared parking then in effect.
(g) Solar Panels. Photovoltaic panels shall be installed on the
roof deck in accordance with the Project Plans.
(h) Local Hiring. Developer shall implement the local hiring
program set forth on Exhibit "H ".
(i) EV Conduit. Developer shall in the parking garage provide
panel capacity and conduit stubs for installation of electrical outlets designed to allow the
simultaneous charging of a minimum number of 208/240 V 40 amp, grounded AC outlets
of at least two of the standard -sized parking spaces as shown on the Project Plans. If the
Planning Director makes a determination based on demonstrated demand by drivers at the
Project, that one or both of the spaces should be equipped with electric vehicle charging
stations, then Developer shall install such electric vehicle charging stations. Such electric
vehicle charging service shall be made available to Project residents at no charge and the
cost of leasing a parking space equipped with electric vehicle charging stations in the
Project shall be the same as the cost of leasing a regular non -tandem single -car parking
space in the Project. All parking spaces with electric charging stations may be utilized
without regard to vehicle type at Developer's sole and absolute discretion.
Notwithstanding the foregoing, to the extent permissible by law, the Developer shall,
within sixty days of Developer's receipt of a request from a tenant and to the extent such
spaces are not already leased to tenants who own or long -term (2 years or more) lease
electric vehicles, make those parking spaces equipped with electric charging stations
available to tenants who then own or long -term (2 years or more) lease an electric vehicle
on a first -come first served basis. Developer shall require any tenant leasing parking
spaces equipped with electric vehicle infrastructure (be it panel capacity and conduit
stubs for installation of electrical outlets or electrical vehicle charging stations) to enter
into a contract acknowledging and agreeing that:
(1) tenants of the Project who own or long -term lease
an electric vehicle have a superior right to lease such EV spaces on a first -come first-
served basis, and
(2) if such tenant, as the current lessee of the EV space,
does not then own or long -term lease an electric vehicle, that tenant's lease of the EV
space may be terminated upon 30 -days' notice and its parking rights relocated to another
available automobile parking space in the Project of Developer's choosing (irrespective
of whether the location of such replacement parking space is less convenient than the EV
space).
(j) TDM Plan. Developer shall maintain and implement the
following Transportation Demand Management Plan ( "TDM Plan "). Prior to issuance of
a Certificate of Occupancy or Temporary Certificate of Occupancy, Developer shall
submit for review and approval by the Planning Director a TDM Plan as follows:
(1) TDM Plan Format. Developer shall submit a TDM
Plan including:
(i) Project description;
(ii) Site conditions that affect travel;
(iii) Annual Budget to implement TDM Plan;
(iv) TDM Plan Physical and Programmatic
Elements; and
(v) Implementation Strategy that specifies how
the TDM Plan will be implemented, monitored, and who will be responsible for
submitting annual status reports to the City.
(2) TDM Plan Physical Elements:
(i) On -Site Transportation Information. The
Developer shall provide on -site transportation information located where the greatest
number of residents are likely to see it. Such transportation information may be provided
in an on -site physical location, such as a bulletin board or kiosk, or through other media,
such as on a website or other digital means. Information shall include, but is not limited
to, the following:
• Current maps, routes, and schedules for public transit routes
within one -half mile of the project site;
• Regional /local bike maps and bicycle safety information as
well as route and facility information within one -half mile of
the project site including: rental and sales locations and bike
share locations (if any) and service information;
• Walking maps and information about local services,
restaurants and recreational activities within one -half mile of
the project site;
• Transportation information including regional ridesharing
agency, local transit operators, and certified TMO where
available;
• Ridesharing promotional material supplied by trip reduction -
oriented organizations;
• Information for project tenants regarding the Project's TDM
Plan and the physical and programmatic elements of the
plan; and
• Information for project tenants regarding local job
opportunities.
GO Short -Term Bicycle Parking. Developer
shall provide bicycle parking for use by short-term parkers in the amount of four (4)
short -term bicycle spaces with signage identifying such spaces as being for "short- term"
use, as shown on the Project Plans.
(iii) Long -Term Bicycle Storage. The Developer
shall provide a convenient and secure bicycle storage area for residents of the Project in
the Subterranean Space that shall accommodate one bicycle per bedroom, as shown on
the Project Plans. Up to 50 percent of the total long -term bike parking may be provided
in a vertical or hanging rack.
(iv) Bicycle Amenities. Bike tools and a repair
stand shall be provided on -site for residents as shown on the Project Plans. The tools to
be provided shall include, but shall not necessarily be limited to, the following: (i) a
bicycle tire pump, (ii) a set of tire bars for replacing tire tubes, (iii) a set of monkey
wrenches, and (iv) a set of Allen wrenches (hex keys).
(v) Carshare Parking Space. Developer shall
offer one parking space free of charge to a carsharing service for a minimum of one (1)
car, if such a service is available from a third party provider on terms mutually and
reasonably acceptable to such third party provider and the Developer (including a
reasonable indemnification as well as reasonable insurance from the car share provider).
Any car share service operating at the Project will be available to the residents of the
Project as well as other customers of the particular car share provider who do not reside
at the Project. Required parking spaces may be used for carshare vehicles. The carshare
parking space shall be located as identified on the Project Plans.
(3) TDM Plan Programmatic Elements.
(i) Transportation Welcome Package for
Tenants. The Developer shall provide all new tenants of the Project with a welcome
package on a per -unit basis upon the commencement of a new tenancy. The
Transportation Welcome Package will inform tenants about the On -Site Transportation
Information discussed in section (1) above and the transportation allowance identified in
section (5) below.
(ii) Marketing and Outreach. Developer shall
prepare and implement a marketing and outreach program for the rental of units for the
Project pursuant to Section 2.7 below that is designed to, among other things, encourage
those that work in the area to consider residing in the Project.
(iii) Transportation Management
Association /Organization ( "TMO) Participation. Active participation in the formation
and ongoing activities of a certified TMO (if a TMO that includes the project site is
established), including: attendance at organizational meetings, providing travel and
parking demand data to the TMO and providing project tenants with information
regarding the services provided by the TMO.
(iv) Unbundled Parking. Developer shall lease
its parking to residential tenants separately from the residential units. Such parking shall
be leased at market rates established by Developer from time to time. However,
Developer shall offer one (1) parking space to each of the tenant(s) of the affordable units
at no additional cost. If an affordable unit tenant(s) declines a parking space, such tenant
shall be entitled to a $100.00 per month reimbursement from the Developer for each
month when he /she does not use such parking space. The aforementioned $100.00
monthly reimbursement amount shall increase each year on a cumulative basis by the
same percentage increase allowed for the rents on the affordable units. Developer may,
subject to the Planning Director's approval, reconfigure the parking spaces and
operations from time -to -time in order to facilitate unbundling of parking.
(v) Transportation Allowance. If individual
tenants or occupants listed on the leases at the Project elect not to lease parking spaces at
the Project and sign an acknowledgment that they do not own or long -term lease an
automobile and will not own nor long -term lease an automobile for so long as they are in
receipt of the transportation allowance identified in this section, Developer shall offer a
transportation allowance to said tenants and occupants as long as they meet the then -
applicable legal requirements to obtain a driver's license to operate an automobile in the
State of California (i.e., the tenant or occupant listed on the lease is old enough to be able
to obtain a driver's license). Any of such tenants or occupants accepting the
transportation allowance shall be required to execute a contract acknowledging that they
do not own or long -term lease an automobile. The transportation allowance shall be a
cash payment equivalent to 50% of the then- current cost of the Metro EZ Transit Pass (or
its successor equivalent). The transportation allowance made available under this section
is to be made available on a monthly basis.
In addition to the transportation allowance specified above, for all
tenants, and for occupants at the Project ages 5 and older residing at the building on a
full -time basis, the Developer shall make available, a universal transit pass, such as the
Metro EZ Transit Pass or Big Blue Bus 30 -Day Pass, at a discount of at least 50% of the
then current market rate for such transit pass. If the occupant is under the age of 18, the
Developer may require that the child's parent or guardian signs an affidavit stating that
the child permanently resides at the building on a full -time basis. Developer shall not be
required to offer a discounted transit pass to any individual at the Project whose pass was
sold or gifted to another. . The specific type of universal pass made available shall be in
the sole discretion of the tenant or occupant. Additionally, in the tenant's or occupant's
sole discretion, the tenant or occupant may choose an alternative transit pass of equal or
less value than the universal transit pass, such as a Big Blue Bus 13 Ride Pass which shall
similarly be made available at a discount of at least 50% of the then current price for such
transit pass as charged by the transportation agency selling the pass. The transit passes
shall be made available on a monthly basis.
(vi) Shared Bikes. A minimum of two free on-
site shared bicycles intended for resident and visitor use shall be provided unless bike
share is available within a two -block radius of the project site.
(4) TDMPlan Monitoring. As a part of this
Agreement's annual compliance report pursuant to Article 10 below, Developer shall
submit an annual monitoring report on the TDM Plan implementation and performance
the number of parking spaces leased per unit.
(5) Changes to TDMPlan. Subject to approval by the
City's Planning Director, the Developer may modify this TDM Plan provided the TDM
Plan, as modified, can be demonstrated as equal or superior in its effectiveness at
mitigating the traffic- generating effects of this Project. Any of the modifications to the
TDM proposed by Developer (or proposed by the Planning Director and agreed to by the
Developer) shall be subject to the reasonable approval by the City's Planning Director as
a Minor Modification.
(6) New TDM Ordinance. If the City adopts a new
ordinance of general application that updates or replaces Chapter 9.16 of the SMMC and
that applies to the geographic area in which the Property is located ( "New TDM
Ordinance'), then, subject to the Planning Director's approval in his or her sole and
absolute discretion, Developer may elect to comply with the New TDM Ordinance in lieu
of complying with the TDM Plan outlined in this Agreement.
2.7 Local Preference Housing. Prior to issuance of a Certificate of
Occupancy, the Developer shall prepare a marketing and outreach program for the rental
of units for the Project, except for the four Affordable Units, which program shall be
subject to the prior written approval of the Planning Director, which approval shall not be
unreasonably withheld, conditioned or delayed. This marketing and outreach program
shall target (i) employees of the City's police and fire departments, (ii) employees of
local hospitals and healthcare providers, (iii) employees of the Santa Monica Malibu
Unified School District and Santa Monica College, (iv) employees of businesses located
within a half -mile radius of the Property, and (v) employees of businesses outside the
half -mile radius but within the City of Santa Monica. For purposes of this Section 2.7,
employees shall also include households with persons who are job training in Santa
Monica or persons who were previously in the Santa Monica workforce but are now
receiving unemployment, worker's compensation, vocational rehabilitation benefits,
disability benefits or retirement benefits. In leasing units, the Developer shall give
priority to applicants in the foregoing categories, provided that all such applicants meet
generally applicable leasing qualifications and criteria imposed by such Developer.
Nothing in this Agreement shall require that any units in the Project be occupied by such
persons.
2.8 Parking.
(a) The number of parking spaces provided in the Project shall be
64 spaces, including up to 26 tandem spaces and up to 40% percent compact parking
spaces. A minimum of six of the side -by -side (non- tandem) parking spaces shall be
reserved for guest parking. This Agreement and the Project Plans set forth the exclusive
off - street parking requirements for the Project and supersede all other minimum space
parking requirements under the Existing Regulations, including without limitation Part
9.04.10.08 of the Zoning Ordinance.
(b) No residential tenant or occupant of the Project who decides not
to lease an on -site parking space(s) shall be entitled to obtain or renew Preferential
Parking Permits from the City pursuant to Santa Monica Municipal Code Chapter 3.08 or
any successor thereto ( "preferential parking regulations ") if the City's preferential
parking regulations are amended to authorize this prohibition. Developer shall include
notification of this prohibition on purchasing preferential parking permits from the City
in any lease it executes with Project residents at a time when the SMMC allows such a
prohibition.
2.9 Design.
(a) Setbacks. Developer shall maintain the setbacks for the Project as
set forth on the Project Plans. In the event that any inconsistencies exist between the
Zoning Ordinance and the setbacks established by this Agreement, then the setbacks
required by this Agreement shall prevail.
(b) Building Height. The maximum height of the building shall be 45
feet as set forth on the Project Plans. In the event that any inconsistencies exist between
the Zoning Ordinance and the building height allowed by this Agreement, then the
building height allowed by this Agreement shall prevail.
(c) Ste backs. Developer shall maintain the stepbacks for the Project
as set forth on the Project Plans. In the event that any inconsistencies exist between the
Zoning Ordinance and the stepbacks required by this Agreement, then the stepbacks
established by this Agreement shall prevail.
(d) Permitted Projections. Projections shall be permitted as reflected
on the Project Plans. In the event that any inconsistencies exist between the Zoning
Ordinance and the projections permitted by this Agreement, then the projections
permitted by this Agreement shall prevail.
(e) Signage. The location, size, materials, and color of any signage
shall be reviewed by the ARB (or the Planning Commission on appeal) in accordance
with the procedures set forth in Section 6.1 of this Agreement. All signs on the Property
shall be subject to Chapter 9.52 of the SMMC (Santa Monica Sign Code) in effect as of
the Effective Date, a copy of which is contained within Exhibit "E ". Directional signs for
vehicles shall be located at approaches to driveways as required by the City's Strategic
Transportation Planning Division.
(1) Balconies. Balconies shall be provided in accordance with the
Project Plans.
2.10 Contract with City. Developer hereby acknowledges that in approving
this Development Agreement for the Project, the City is waiving or reducing certain fees
and taxes, including but not limited to, childcare, transportation impact, and parks and
recreation fees and the City is modifying development standards otherwise applicable to
the Project such as increasing unit density and other property development standards. In
exchange for such forms of assistance from the City, which are of financial benefit to the
Developer, Developer has entered into this contract with the City and agreed to the other
conditions of the Development Agreement, including the requirement to provide and
maintain the four (4) Affordable Units on site for occupancy by income qualified
households subject to and consistent with the provisions of the City's Affordable
Housing Program and to provide and maintain the eleven (11) additional Price Regulated
Units subject to limitations on rent increases during the tenancy of each tenant. The
parties agree and acknowledge that this is a contract providing forms of assistance to the
Developer within the meaning of Civil Code Section 1954.52(b) and Chapter 4.3 of the
State Planning and Zoning Laws, Government Code Section 65915 et. seq. With regard
to the remaining 17 units not subject to any deed restrictions, there shall be no limitations
or restrictions upon the initial rental rates and all subsequent rental rates and increases,
including rent increases on existing tenants during their tenancies, notwithstanding
anything to the contrary herein. City acknowledges and agrees that nothing in Civil Code
Section 1954.52(b), Chapter 4.3 of the State Planning and Zoning Laws or Government
Code Section 65915 et. seq. limit or restrict the initial and subsequent rental rates and
increases, including any increases during a tenant's occupancy, that Developer may
charge on said 17 units.
ARTICLE 3
CONSTRUCTION
3.1. Construction Mitigation Plan. During the construction phase of the
Project, Developer shall comply with the Construction Mitigation Plan attached as
Exhibit "F" hereto.
3.2. Construction Hours. Developer shall be permitted to perform construction
between the hours of 8:00 a.m. to 6:00 p.m. Monday through Friday, and 9:00 a.m. to
5:00 p.m. Saturday; provided that interior construction work which does not generate
noise of more than thirty (30) decibels beyond the Property line may also be performed
between the hours of 7:00 a.m. to 8:00 a.m. and 6:00 p.m. to 7:00 p.m. Monday through
Friday, and 8:00 a.m, to 9:00 a.m. and 5:00 p.m. to 6:00 p.m. Saturday. Notwithstanding
the foregoing, pursuant to SMMC Section 4.12.110(e), Developer has the right to seek a
permit from the City authorizing construction activity during the times otherwise
prohibited by this Section. The Parties acknowledge and agree that, among other things,
afterhours construction permits can be granted for concrete pours.
3.3. Outside Building Permit Issuance Date. If Developer has not been issued
a building permit for the Project by the "Outside Building Permit Issuance Date" (defined
below), then on the day after the Outside Building Permit Issuance Date, without any
further action by either Party, this Agreement shall automatically terminate and be of no
further force or effect. For purposes of clarity, if Developer has not been issued a
building permit for the Project by the Outside Building Permit Issuance Date, the City
shall not be required to pursue its remedies under Section 11.4 of this Agreement, and
this Agreement shall, instead, automatically terminate. "Outside Building Permit
Issuance Date" means the date that is the last day of the thirty -sixth (30) full calendar
month after the Effective Date; provided that the Outside Building Permit Issuance Date
may be extended by applicable Excusable Delays and otherwise in accordance with the
remainder of this paragraph. If the approval by the ARB' of the Project design does not
occur within four (4) months of the submittal by Developer to the ARB of the Project
design, then the Outside Building Permit Issuance Date shall be extended one month for
each additional month greater than four that the final ARB approval is delayed. At any
time before the thirty -sixth (36b) full calendar month after the Effective Date, Developer
may deliver written notice to the Planning Director, requesting an extension of the
Outside Building Permit Issuance Date for an additional twelve (12) months. The
Outside Building Permit Issuance Date may be administratively extended not more than
one (1) time for an additional twelve (12) months. The Planning Director may grant such
extension if Developer can demonstrate substantial progress has been made towards
obtaining a building permit and show reasonable cause why Developer will not be able to
obtain the building permit for the Project by the initial Outside Building Permit Issuance
Date and can demonstrate that: (a) the condition of the Property will not adversely affect
public health or safety and (b) the continued delay will not create any unreasonable visual
or physical detriment to the neighborhood.
3.4. Construction Period. Construction of the Project shall be subject to the
provisions of SMMC Section 8.08.070.
3.5. Tiebacks. City will provide Developer with tiebacks, subject to
reasonable terms and conditions, for Pico Boulevard and Pico Court. Developer shall
compensate the City for such tiebacks in accordance with the City's tieback fees then in
effect.
3.6. Damage or Destruction. If the Project, or any part thereof, is damaged or
destroyed during the term of this Agreement, Developer shall be entitled to reconstruct
the Project in accordance with this Agreement if: (a) Developer obtains a building permit
for this reconstruction prior to the expiration of this Agreement and (b) the Project is
found to be consistent with the City's General Plan in effect at the time of obtaining the
building permit.
3.7. Construction Staging. Developer may use the Pico Boulevard frontage
and a portion of Pico Court for construction staging at City's customary costs and
procedures or permits then in effect.
ARTICLE 4
PROJECT FEES, EXACTIONS, AND CONDITIONS
4.1 Fees, Exactions, and Conditions. Except as expressly set forth in Section
2.4.4 (relating to modifications), Section 2.6 (relating to Community Benefits), and
Section 5.2 (relating to Subsequent Code Changes) below, the City shall charge and
impose only those fees, exactions, conditions, and standards of construction set forth in
this Agreement, including Exhibits "C ", "D" and "F" attached hereto, and no others. If
any of the conditions set forth on Exhibit "D" is satisfied by others, Developer shall be
deemed to have satisfied such measures or conditions.
4.2 Conditions on Modifications. The City may impose fees, exactions and
conditions in connection with its approval of Minor or Major Modifications, provided
that all fees, exactions and conditions shall be in accordance with any applicable law.
4.3 Implementation of Conditions of Approval.
4.3.1 Compliance with Conditions of Approval. Developer shall be
responsible to adhere to the conditions of approval set forth in Exhibit "D" in accordance
with the timelines established in Exhibit "D ".
4.3.2 Survival of Conditions of Approval. If Developer proceeds with
the construction of the Project, except as otherwise expressly limited in this Agreement,
the obligations and requirements imposed by the conditions of approval set forth in the
attached Exhibit "D" shall survive the expiration of the Term of this Agreement and shall
remain binding on Developer, its successors and assigns, and shall continue in effect for
the life of the Project. Notice of the conditions of approval shall be recorded by the City
separately and concurrently with this Agreement.
4.3.3 On -Site Affordable Fee Waivers and Reductions. Notwithstanding
the foregoing, the Project shall be entitled to all fee waivers and fee reductions available
for projects involving on -site affordable housing under the SMMC then in effect.
ARTICLE 5
EFFECT OF AGREEMENT ON CITY LAWS AND REGULATIONS
5.1 Development Standards for the Property; Existing Regulations. The
following development standards and restrictions set forth in this Section 5.1 govern the
use and development of the Project and shall constitute the Existing Regulations, except
as otherwise expressly required by this Agreement.
5. 1.1 Defined Terms. The following terms shall have the meanings set
forth below:
(a) "Existing Regulations" collectively means all of the
following which are in force and effect as of the Effective Date: (i) the General Plan
(including, without limitation, the LUCE); (ii) the Zoning Ordinance except as modified
herein; (iii) the IZO; (iv) any and all ordinances, rules, regulations, standards,
specifications and official policies of the City governing, regulating or affecting the
demolition, grading, design, development, building, construction, occupancy or use of
buildings and improvements or any exactions therefore, except as amended by this
Agreement; and (v) the development standards and procedures in Section 2 of this
Agreement.
(b) "Subsequent Code Changes" collectively means all of the
following which are adopted or approved subsequent to the Effective Date, whether such
adoption or approval is by the City Council, any department, division, office, board,
commission or other agency of the City, by the people of the City through charter
amendment, referendum, initiative or other ballot measure, or by any other method or
procedure: (i) any amendments, revisions, additions or deletions to the Existing
Regulations; or (ii) new codes, ordinances, rules, regulations, standards, specifications
and official policies of the City governing or affecting the grading, design, development,
construction, occupancy or use of buildings or improvements or any exactions therefor.
"Subsequent Code Changes" includes, without limitation, any amendments, revisions or
additions to the Existing Regulations imposing or requiring the payment of any fee,
special assessment or tax.
5.1.2 Existing Regulations Govern the Project. Except as provided in
Section 5.2, development of the Building and improvements that will comprise the
Project, including without limitation, the development standards for the grading, design,
development, construction, occupancy or use of such Building and improvements, and
any exactions therefor, shall be governed by the Existing Regulations. The City agrees
that this Agreement is consistent with the General Plan, including the LUCE, as more
fully described in the Recitals. Any provisions of the Existing Regulations inconsistent
with the provisions of this Agreement, to the extent of such inconsistencies and not
further, are hereby deemed modified to that extent necessary to effectuate the provisions
of this Agreement. The Project shall be exempt from: (a) all Discretionary Approvals or
review by the City or any agency or body thereof, other than the matters of architectural
review by the ARB as specified in Article 6 and review of modifications to the Project as
expressly set forth in Sections 2.4.2 and 2.4.3; (b) the application of any subsequent local
development or building moratoria, development or building rationing systems or other
restrictions on development which would adversely affect the rate, timing, or phasing of
construction of the Project, and (c) Subsequent Code Changes which are inconsistent
with this Agreement.
5.2 Permitted Subsequent Code Changes.
5.2.1 Applicable Subsequent Code Changes. Notwithstanding the terms
of Section 5. 1, this Agreement shall not prevent the City from applying to the Project the
following Subsequent Code Changes set forth below in this Section 5.2.1.
(a) Processing fees and charges imposed by the City to cover
the estimated actual costs to City of processing applications for development approvals
including: (i) all application, permit, and processing fees incurred for the processing of
this Agreement, any administrative approval of a Minor Modification, or any amendment
of this Agreement in connection with a Major Modification; (ii) all building plan check
and building inspection fees for work on the Property in effect at the time an application
for a grading permit or building permit is applied for; and (iii) the public works plan
check fee and public works inspection fee for public improvements constructed and
installed by Developer and (iv) fees for monitoring compliance with any development
approvals; provided that such fees and charges are uniformly imposed by the City at
similar stages of project development on all similar applications and for all similar
monitoring.
(b) General or special taxes, including, but not limited to,
property taxes, sales taxes, parcel taxes, transient occupancy taxes, business taxes, which
may be applied to the Property or to businesses occupying the Property; provided that (i)
the tax is of general applicability City -wide and does not burden the Property
disproportionately to other similar developments within the City; and (ii) the tax is not a
levy, assessment, fee or tax imposed for the purpose of funding public or private
improvements on other property located within the High Density Housing District (as
defined in the City's General Plan as of the Effective Date).
(c) Procedural regulations relating to hearing bodies, petitions,
applications, notices, documentation of findings, records, manner in which hearings are
conducted, reports, recommendations, initiation of appeals, and any other matters of
procedure; provided such regulations are uniformly imposed by the City on all matters,
do not result in any unreasonable decision - making delays and do not affect the
substantive findings by the City in approving this Agreement or as otherwise established
in this Agreement.
(d) Regulations governing construction standards and
specifications which are of general application that establish standards for the
construction and installation of structures and associated improvements, including,
without limitation, the City's Building Code, Plumbing Code, Mechanical Code,
Electrical Code and Fire Code; provided that such construction standards and
specifications are applied on a City -wide basis and do not otherwise limit or impair the
Project approvals granted in this Agreement unless adopted to meet health and safety
concerns.
(e) Any City regulations to which Developer has consented in
writing.
(f) Collection of such fees or exactions as are imposed and set
by governmental entities not controlled by City but which are required to be collected by
City.
(g) Regulations which do not impair the rights and approvals
granted to Developer under this Agreement. For the purposes of this Section 5.2.1(8),
regulations which impair Developer's rights or approvals include, but are not limited to,
regulations which (i) materially increase the cost of the Project (except as provided in
Section 5.2.1(a), (b), and (d) above) or (ii) which would materially delay development of
the Project, or that would cause a material change in the uses of the Project as provided in
this Agreement.
5.2.2 New Rules and Regulations. This Agreement shall not be
construed to prevent the City from applying new rules, regulations and policies in those
circumstances specified in Government Code Section 65866.
5.2.3 State or Federal Laws. In the event that state or federal laws or
regulations, enacted after the Effective Date, prevent or preclude compliance with one or
more of the provisions of this Agreement, such provisions of this Agreement shall be
modified or suspended as may be necessary to comply with such state or federal laws or
regulations; provided that this Agreement shall remain in full force and effect to the
extent it is not inconsistent with such laws or regulations and to the extent such laws or
regulations do not render such remaining provisions impractical to enforce.
5.3 Common Set of Existing Regulations. Prior to the Effective Date, the City
and Developer shall use reasonable efforts to identify, assemble and copy three identical
sets of the Existing Regulations, to be retained by the City and Developer, so that if it
becomes necessary in the future to refer to any of the Existing Regulations, there will be
a common set of the Existing Regulations available to all Parties.
5.4 Conflicting Enactments. Except as provided in Section 5.2 above, any
Subsequent Code Change which would conflict in any way with or be more restrictive
than the Existing Regulations shall not be applied by the City to any part of the Property.
Developer may, in its sole discretion, give the City written notice of its election to have
any Subsequent Code Change applied to such portion of the Property as it may have an
interest in, in which case such Subsequent Code Change shall be deemed to be an
Existing Regulation insofar as that portion of the Property is concerned. If there is any
conflict or inconsistency between the terms and conditions of this Agreement and the
Existing Regulations, the terms and conditions of this Agreement shall control.
5.5 Timing of Development. The California Supreme Court held in Pardee
Construction Co. v. City of Camarillo, 37 Ca1.3d 465 (1984), that failure of the parties in,
that case to provide for the timing of development resulted in a later- adopted initiative
restricting the timing of development to prevail over the parties' agreement. It is the
intent of Developer and the City to cure that deficiency by expressly acknowledging and
providing that any Subsequent Code Change that purports to limit over time the rate or
timing of development or to alter the sequencing of development phases (whether
adopted or imposed by the City Council or through the initiative or referendum process)
shall not apply to the Property or the Project and shall not prevail over this Agreement.
In particular, but without limiting any of the foregoing, no numerical restriction shall be
placed by the City on the amount of total square feet or the number of buildings,
structures or residential units that can be built each year on the Property, except as
expressly provided in this Agreement.
ARTICLE 6
ARCHITECTURAL REVIEW BOARD
6.1 Architectural Review Board Approval. The Project shall be subject to
review and approval or conditional approval by the ARB in accordance with design
review procedures in effect under the Existing Regulations. Consistent with Existing
Regulations, the ARB cannot require modifications to the building design which negates
the fundamental development standards established by this Agreement. For example, the
ARB cannot require reduction in the overall height of the building, reduction in the
number of stories in the building, reduction in number of Rental Housing units, or
reduction in Floor Area greater than two percent (2 %) either by floor or in aggregate
from the building. Decisions of the ARB are appealable to the Planning Commission in
accordance with the Existing Regulations.
6.2 Expiration of ARB Approval. Notwithstanding any provision of the
Existing Regulations, no ARB approval granted with respect to the Project shall expire
prior to expiration of the Outside Building Permit Issuance Date, including any
extensions thereof.
6.3 Concurrent Processing. Developer may concurrently process plan check
(SMMC § 8.08.060) with ARB design review (SMMC ch. 9.32); provided, however, that
Developer hereby agrees to accept the risk of plan check revisions if necessitated by the
outcome of the ARB design review.
ARTICLE 7
CITY TECHNICAL PERMITS
7.1 Definitions. For purposes of this Agreement, the following terms shall
have the meanings set forth below:
7.1.1 "Technical City Permits" means any Ministerial Approvals,
consents or permits from the City or any office, board, commission, department, division
or agency of the City, which are necessary for the actual construction of the Project or
any portion thereof in accordance with the Project Site Plan and this Agreement.
Technical City Permits include, without limitation (a) building permits, (b) related
mechanical, electrical, plumbing and other technical permits, (c) demolition, excavation
and grading permits, (d) encroachment permits, and (e) temporary and final certificates of
occupancy.
7.1.2 "Technical Permit Applications" means any applications
required to be filed by Developer for any Technical City Permits.
7.2 Diligent Action by City.
7.2.1 Upon satisfaction of the conditions set forth in Section 7.3, the
City shall accept the Technical Permit Applications filed by Developer with the City and
shall diligently proceed to process such Technical Permit Applications to completion.
7.2.2 Upon satisfaction of the conditions set forth in Section 7.3, the
City shall diligently issue the Technical City Permits which are the subject of the
Technical Permit Applications.
7.2.3 In accordance with SMMC Section 9.56.0500), the Project shall
receive priority building department plan check processing by which housing
developments shall have plan check review in advance of other pending developments to
the extent authorized by law.
7.3 Conditions for Diligent Action by the Cit
7.3.1 Acceptance and Processing of Technical Permit Applications. The
obligation of the City to accept and diligently process the Technical Permit Applications
which are filed by Developer, and then issue the Technical City Permits, is subject to the
satisfaction of the following conditions:
(a) Developer shall have completed and filed all Technical
Permit Applications which are required under the administrative procedures and policies
of the City which are in effect on the date when the Technical Permit Application is filed;
provided that such procedures and policies are uniformly in force and effect throughout
the City;
(b) Developer shall have paid all processing and permit fees
established by the City in connection with the filing and processing of any Technical
Permit Application which are in effect on the date when the Technical Permit Application
is filed; provided that such fees are uniformly in force and effect throughout the City; and
(c) If required for the particular Technical Permit Application,
Developer shall have obtained the approval of the ARB referred to in Article 6 above.
7.3.2 Issuance of a Technical City Permit. The obligation of the City to
issue a Technical City Permit which is the subject of a Technical Permit Application filed
by Developer is subject to the satisfaction of the following conditions (and only such
conditions and no others):
(a) Developer shall have complied with all of its obligations
under this Agreement which are required to be performed prior to or concurrent with the
issuance of the Technical City Permits for the proposed Building;
(b) Developer shall have received any permits or approvals
from other governmental agencies which are required by law to be issued prior to or
concurrent with the issuance of the Technical City Permits for the proposed Building;
(c) The proposed Building conforms to the development
standards for such Building established in this Agreement. In the event that a proposed
Building is not in conformance with the development standards, Developer shall have the
right to seek any relief from such standards under the procedures then available in the
City; and
(d) The proposed Building conforms to the Administrative and
Technical Construction Codes of the City (Article VIII, Chapter 1 of the Santa Monica
Municipal Code) (the "Technical Codes ") in effect on the date that the Technical Permit
Application is filed.
7.3.3 New Technical Requirements. From time to time, the City's
Technical Codes are amended to meet new technical requirements related to techniques
of building and construction. If the sole means of achieving compliance for the Project
with such revisions to the Technical Codes made after the Effective Date ( "New
Technical Requirements ") would require an increase from the allowable Building
Height established in this Agreement for the Project, then the Planning Director is hereby
authorized to grant Developer limited relief from the allowable Building Height without
amending this Agreement if the requested relief is in compliance with the City's General
Plan. Any such approval shall be granted only after the Planning Director's receipt of a
written request for such relief from Developer. Developer is required to supply the
Planning Director with written documentation of the fact that compliance with the New
Technical Requirements cannot be achieved by some other method. Any such relief shall
only be granted to the extent necessary in the Planning Director's determination for
Developer to comply with the New Technical Requirements.
7.4 Duration of Technical City Permits. The duration of Technical City
Permits issued by the City, and any extensions of the time period during which such
Technical City Permits remain valid, shall be established in accordance with the
Technical Codes in effect at the time that the Technical City Permits are issued. Subject
to the terms of the next sentence, the lapse or expiration of a Technical City Permit shall
not preclude or impair Developer from subsequently filing another Technical Permit
Application for the same matter during the Term of this Agreement, which shall be
processed by the City in accordance with the provisions of this Article 7.
Notwithstanding anything to the contrary in this Agreement, if Developer obtains
building permits for the Project and, at any time after the Outside Construction Start
Date, such building permits expire or are revoked pursuant to the applicable terms of the
SMMC (as the same may be amended from time to time), then Developer may not
subsequently apply for new building permits for the Project without first obtaining the
prior written consent of the Planning Director, which may be granted or withheld in the
Planning Director's sole discretion.
7.5 Accessibility of Deed - Restricted Affordable Units. The four deed -
restricted affordable units in the Project shall be fully accessible in accordance with 2013
California Building Code Chapter 1113, or any successor thereto. Developer shall inform
local disability advocacy organizations of the availability of these units and the
mechanism for applying to be placed on the City's Affordable Housing waiting list
administered by the City's Housing Division.
ARTICLE 8
AMENDMENT AND MODIFICATION
8.1 Amendment and Modification of Development Agreement. Subject to the
notice and hearing requirements of the applicable Development Agreement Statutes, this
Agreement may be modified or amended from time to time only with the written consent
of Developer and the City or their successors and assigns in accordance with the
provisions of the SMMC and Section 65868 of the California Government Code.
ARTICLE 9
IlNUMu!
9.1 Effective Date. This Agreement shall be dated, and the obligations of the
Parties hereunder shall be effective as of the date upon which the ordinance approving
this Agreement becomes effective (the "Effective Date "). The Parties shall execute this
Agreement within ten (10) working days of the Effective Date.
9.2 Term.
9.2.1 Term of Agreement. The term of this Agreement shall commence
on the Effective Date and shall continue for ten (10) years thereafter (the "Term"), unless
the Term is otherwise terminated pursuant to Section 11.4, after the satisfaction of all
applicable public hearing and related procedural requirements or pursuant to Section
2.3.4 or Section 3.3.
9.2.2 Termination Certificate. Upon termination of this Agreement, the
Parties hereto shall execute an appropriate certificate of termination in recordable form (a
"Termination Certificate "), which shall be recorded in the official records of Los
Angeles County.
9.2.3 Effect of Termination. Except as expressly provided herein (e.g.,
Section 4.4.2), none of the parties' respective rights and obligations under this Agreement
shall survive the Term.
ARTICLE 10
PERIODIC REVIEW OF COMPLIANCE
10.1 City Review. The City shall review compliance with this Development
Agreement once each year, on or before March 31St (each, a "Periodic Review "), in
accordance with this Article 10 in order to determine whether or not Developer is out -of-
compliance with any specific term or provision of this Agreement.
10.2 Evidence of Good Faith Compliance. On or before October 1St of each
year, Developer shall deliver to the City a written report demonstrating that Developer
has been in good faith compliance with this Agreement during the twelve (12) month
period prior to the anniversary of the Effective Date. The written report shall be provided
in the form established by the City. For purposes of this Agreement, the phrase "good
faith compliance" shall mean the following: (a) compliance by Developer with the
requirements of the Existing Regulations, except as otherwise modified by this
Agreement; and (b) compliance by Developer with the terms and conditions of this
Agreement, subject to the existence of any specified Excusable Delays (as defined in
Section 15.8 below) which prevented or delayed the timely performance by Developer of
any of its obligations under this Agreement.
10.3 Information to be Provided to Developer. Prior to any public hearing
concerning the Periodic Review of this Agreement, the City shall deliver to Developer a
copy of all staff reports prepared in connection with a Periodic Review, written
comments from the public and, to the extent practical, all related exhibits concerning
such Periodic Review. If the City delivers to Developer a Notice of Breach pursuant to
Section 11.1 below, the City shall concurrently deliver to Developer a copy of all staff
reports prepared in connection with such Notice of Breach, all written comments from the
public and all related exhibits concerning such Notice of Breach.
10.4 Notice of Breach; Cure Rights. If during any Periodic Review, the City
reasonably concludes on the basis of substantial evidence that Developer has not
demonstrated that it is in good faith compliance with this Agreement, then the City may
issue and deliver to Developer a written Notice of Breach pursuant to Section 11.1 below,
and Developer shall have the opportunity to cure the default identified in the Notice of
Breach during the cure periods and in the manner provided by Section 11.1.2 and Section
11.11, as applicable.
10.5 Failure of Periodic Review. The City's failure to review at least annually
compliance by Developer with the terms and conditions of this Agreement shall not
constitute or be asserted by any Party as a breach by any other Party of this Agreement.
10.6 Termination of Development Agreement. If Developer fails to timely cure
any material item(s) of non - compliance set forth in a Notice of Default, then the City
shall have the right but not the obligation to initiate proceedings for the purpose of
terminating this Agreement pursuant to Section 11.4 below.
10.7 City Cost Recovery. Following completion of each Periodic Review,
Developer shall reimburse the City for its actual and reasonable costs incurred in
connection with such review after provision of an invoice by the City.
ARTICLE 11
DEFAULT
11.1 Notice and Cure.
11.1.1 Breach. If either Party fails to substantially to perform any term,
covenant or condition of this Agreement which is required on its part to be performed (a
"Breach "), the non - defaulting Party shall have those rights and remedies provided in this
Agreement; provided that such non - defaulting Party has first sent a written notice of
Breach (a "Notice of Breach "), in the manner required by Section 15. 1, specifying the
precise nature of the alleged Breach (including references to pertinent Sections of this
Agreement and the Existing Regulations or Subsequent Code Changes alleged to have
been breached), and the manner in which the alleged Breach may satisfactorily be cured.
If the City alleges a Breach by Developer, the City shall also deliver a copy of the Notice
of Breach to any Secured Lender of Developer which has delivered a Request for Notice
to the City in accordance with Section 12.
11. 1.2 Monetary Breach. In the case of a monetary Breach by Developer,
Developer shall promptly commence to cure the identified Breach and shall complete the
cure of such Breach within thirty (30) business days after receipt by Developer of the
Notice of Breach; provided that if such monetary Breach is the result of an Excusable
Delay or the cure of the same is delayed as a result of an Excusable Delay, Developer
shall deliver to the City reasonable evidence of the Excusable Delay.
11.1.3 Non - Monetary Breach. In the case of a non - monetary Breach by
either Party, the alleged defaulting Party shall promptly commence to cure the identified
Breach and shall diligently prosecute such cure to completion; provided that the
defaulting Party shall complete such cure within thirty (30) days after receipt of the
Notice of Breach or provide evidence of Excusable Delay that prevents or delays the
completion of such cure. The thirty (30) day cure period for a non - monetary Breach shall
be extended as is reasonably necessary to remedy such Breach; provided that the alleged
defaulting Party commences such cure promptly after receiving the Notice of Breach and
continuously and diligently pursues such remedy at all times until such Breach is cured.
11. 1.4 Excusable Delay. Notwithstanding anything to the contrary
contained in this Agreement, the City's exercise of any of its rights or remedies under this
Article 11 shall be subject to the provisions regarding Excusable Delay in Section 15.8
below.
11.2 Remedies for Monetary Default. If there is a Breach by Developer in the
performance of any of its monetary obligations under this Agreement which remains
uncured (a) thirty (30) business days after receipt by Developer of a Notice of Breach
from the City and (b) after expiration of Secured Lender's Cure Period under Section
12.1 (if a Secured Lender of Developer has delivered a Request for Notice to the City in
accordance with Section 12.1), then an "Event of Monetary Default" shall have
occurred by Developer, and the City shall have available any right or remedy provided in
this Agreement, at law or in equity. All of said remedies shall be cumulative and not
exclusive of one another, and the exercise of any one or more of said remedies shall not
constitute a waiver or election in respect to any other available remedy.
11.3 Remedies for Non - Monetary Default.
11.3.1 Remedies of Parties. If any Party receives a Notice of Breach from
the other Party regarding a non - monetary Breach, and the non - monetary Breach remains
uncured: (a) after expiration of all applicable notice and cure periods, and (b) in the case
of a Breach by Developer, after the expiration of Secured Lender's Cure Period under
Section 12.1 (if a Secured Lender of Developer has delivered a Request for Notice to the
City in accordance with Section 12. 1), then an "Event of Non - Monetary Default" shall
have occurred and the non - defaulting Party shall have available any right or remedy
provided in this Agreement, or provided at law or in equity except as prohibited by this
Agreement. All of said remedies shall be cumulative and not exclusive of one another,
and the exercise of any one or more of said remedies shall not constitute a waiver or
election in respect to any other available remedy.
11.3.2 Specific Performance. The City and Developer acknowledge that
monetary damages and remedies at law generally are inadequate and that specific
performance is an appropriate remedy for the enforcement of this Agreement. Therefore,
unless otherwise expressly provided herein, the remedy of specific performance shall be
available to the non - defaulting party if the other Party causes an Event of Non - Monetary
Default to occur.
11.3.3 Writ of Mandate. The City and Developer hereby stipulate that
Developer shall be entitled to obtain relief in the form of a writ of mandate in accordance
with Code of Civil Procedure Section 1085 or Section 1094.5, as appropriate, to remedy
any Event of Non - Monetary Default by the City of its obligations and duties under this
Agreement. Nothing in this Section 11.3.3, however, is intended to alter the evidentiary
standard or the standard of review applicable to any action of, or approval by, the City
pursuant to this Agreement or with respect to the Project.
11.3.4 No Damages Relief Against City. It is acknowledged by
Developer that the City would not have entered into this Agreement if the City were to be
liable in damages under or with respect to this Agreement or the application thereof.
Consequently, and except for the payment of attorneys' fees and court costs, the City
shall not be liable in damages to Developer and Developer covenants on behalf of itself
and its successors in interest not to sue for or claim any damages:
(a) for any default under this Agreement;
(b) for the regulatory taking, impairment or restriction of any
right or interest conveyed or provided hereunder or pursuant hereto; or
(c) arising out of or connected with any dispute, controversy or
issue regarding the application or interpretation or effect of the provisions of this
Agreement.
The City and Developer agree that the provisions of this Section 11.3.4 do not apply for
damages which:
(a) do not arise under this Agreement;
(b) are not with respect to any right or interest conveyed or
provided under this Agreement or pursuant to this Agreement; or
(c) do not arise out of or which are not connected to any
dispute, controversy, or issue regarding the application, interpretation, or effect of the
provisions of this Agreement or the application of any City rules, regulations, or official
policies.
11.3.5 Enforcement by the City. The City, at its discretion, shall be
entitled to apply the remedies set forth in Chapters 1.09 and 1.10 of the SMMC as the
same may be amended from time to time and shall follow the notice procedures of
Chapters 1.09 and 1.10 respectively in lieu of Section 11.1 of this Agreement if these
remedies are applied.
11.3.6 No Damages Against Developer. It is acknowledged by the City
that Developer would not have entered into this Agreement if Developer were to be liable
in damages in connection with any non - monetary default hereunder. Consequently, and
except for the payment of attorneys' fees and court costs, Developer shall not be liable in
,damages to the City for any nonmonetary default and the City covenants on behalf of
itself not to sue for or claim any damages:
(a) for any non - monetary default hereunder or arising out of or
connected with any dispute, controversy or issue regarding; or
(b) the application or interpretation or effect of the provisions
of this Agreement.
The City and Developer agree that the provisions of this Section 11.3.6 do not apply for
damages which:
(a) are for a monetary default;
(b) do not arise out of or which are not connected with any
dispute, controversy or issue regarding the application, interpretation, or effect of the
provisions of this Agreement to or the application of, any City rules, regulations, or
official policies; or
(c) constitute Damages which arise under Section 14.1.
11.3.7 No Other Limitations. Except as expressly set forth in this Section
11.3, the provisions of this Section 11.3 shall not otherwise limit any other rights,
remedies, or causes of action that either the City or Developer may have at law or equity
after the occurrence of any Event of Non - Monetary Default.
11.4 Modification or Termination of Agreement by City.
11.4.1 Default by Developer. If Developer causes either an Event of
Monetary Default or an Event of Non - Monetary Default, then the City may commence
proceedings to modify or terminate this Agreement pursuant to this Section 11.4.
11.4.2 Procedure for Modification or Termination. The procedures for
modification or termination of this Agreement by the City for the grounds set forth in
Section 11.4.1 are as follows:
(a) The City shall provide a written notice to Developer (and to
any Secured Lender of Developer which has delivered a Request for Notice to the City in
accordance of Section 12.1) of its intention to modify or terminate this Agreement unless
Developer (or the Secured Lender) cures or corrects the acts or omissions that constitute
the basis of such determinations by the City (a "Hearing Notice "). The Hearing Notice
shall be delivered by the City to Developer in accordance with Section 15.1 and shall
contain the time and place of a public hearing to be held by the City Council on the
determination of the City to proceed with modification or termination of this Agreement.
The public hearing shall not be held earlier than: (i) thirty -one (3 1) days after delivery of
the Hearing Notice to Developer or (ii) if a Secured Lender has delivered a Request for
Notice in accordance with Section 12. 1, the day following the expiration of the "Secured
Lender Cure Period" (as defined in Section 12.1).
(b) If, following the conclusion of the public hearing, the City
Council: (i) determines that an Event of Non - Monetary Default has occurred or the
Developer has not been in good faith compliance with this Agreement pursuant to
Section 10. 1, as applicable and (ii) further determines that Developer (or the Secured
Lender, if applicable) has not cured (within the applicable cure periods) the acts or
omissions that constitute the basis of the determination under clause (i) above or if those
acts or omissions could not be reasonably remedied prior to the public hearing that
Developer (or the Secured Lender) has not in good faith commenced to cure or correct
such acts or omissions prior to the public hearing or is not diligently and continuously
proceeding therewith to completion, then upon making such conclusions, the City
Council may modify or terminate this Agreement. The City cannot unilaterally modify
the provisions of this Agreement pursuant to this Section 11.4. Any such modification
requires the written consent of Developer. If the City Council does not terminate this
Agreement, but proposes a modification to this Agreement as a result of the public
hearing and Developer does not (within five (5) days of receipt) execute and deliver to
the City the form of modification of this Agreement submitted to Developer by the City,
then the City Council may elect to terminate this Agreement at any time after the sixth
day after Developer's receipt of such proposed modification.
11.5 Cessation of Rights and Obligations. If this Agreement is terminated by
the City pursuant to and in accordance with Section 11.4, the rights, duties and
obligations of the Parties under this Agreement shall cease as of the date of such
termination, except only for those rights and obligations that expressly survive the
termination of this Agreement. In such event, any and all benefits, including money
received by the City prior to the date of termination, shall be retained by the City.
11.6 Completion of Improvements. Notwithstanding the provisions of
Sections 11.2, 11.3, 11.4, and 11.5, if prior to termination of this Agreement, Developer
has performed substantial work and incurred substantial liabilities in good faith reliance
upon a building permit issued by the City, then Developer shall have acquired a vested
right to complete construction of the Building in accordance with the terms of the
building permit and occupy or use each such Building upon completion for the uses
permitted for that Building as provided in this Agreement. Any Building completed or
occupied pursuant to this Section 11.6 shall be considered legal non - conforming subject
to all City ordinances standards and policies as they then exist governing legal non-
conforming buildings and uses unless the Building otherwise complies with the property
development standards for the district in which it is located and the use is otherwise
permitted or conditionally permitted in the district.
ARTICLE 12
MORTGAGEES
12.1 Encumbrances on the Property. This Agreement shall not prevent or limit
Developer (in its sole discretion), from encumbering the Property (in any manner) or any
portion thereof or any improvement thereon by any mortgage, deed of trust, assignment
of rents or other security device securing financing with respect to the Property (a
"Mortgage'). Each mortgagee of a mortgage or a beneficiary of a deed of trust (each, a
"Secured Lender ") on the Property shall be entitled to the rights and privileges set forth
in this Article 12. Any Secured Lender may require from the City certain interpretations
of this Agreement. The City shall from time to time, upon request made by Developer,
meet with Developer and representatives of each of its Secured Lenders to negotiate in
good faith any Secured Lender's request for interpretation of any part of this Agreement.
The City will not unreasonably withhold, condition or delay the delivery to a Secured
Lender of the City's written response to any such requested interpretation.
12. 1.1 Mortgage Not Rendered Invalid. Except as provided in Section
12.1.2, neither entering into this Agreement nor a Breach of this Agreement, nor any
Event of Monetary Default nor any Event of Non - Monetary Default shall defeat, render
invalid, diminish, or impair the lien of any Mortgage made in good faith and for value.
12.1.2 Priority of Agreement. This Agreement shall be superior and
senior to the lien of any Mortgage. Any acquisition or acceptance of title or any right or
interest in or with respect to the Property or any portion thereof by a Secured Lender or
its successor in interest (whether pursuant to foreclosure, trustee's sale, deed in lieu of
foreclosure, lease termination or otherwise) shall be subject to all of the terms and
conditions of this Agreement.
12.1.3 Right of Secured Lender to Cure Default.
(a) A Secured Lender may give notice to the City, specifying
the name and address of such Secured Lender and attaching thereto a true and complete
copy of the Mortgage held by such Secured Lender, specifying the portion of the
Property that is encumbered by the Secured Lender's lien (a "Request for Notice "). If
the Request for Notice has been given, at the same time the City sends to Developer any
Notice of Breach or Hearing Notice under this Agreement, then if such Notice of Breach
'or Hearing Notice affects the portion of the Property encumbered by the Secured
Lender's lien, the City shall send to such Secured Lender a copy of each such Notice of
Breach and each such Hearing Notice from the City to Developer. The copy of the
Notice of Breach or the Hearing Notice sent to the Secured Lender pursuant to this
Section 12.1.3(a) shall be addressed to such Secured Lender at its address last famished
to the City. The period within which a Secured Lender may cure a particular Event of
Monetary Default or Event of Non - Monetary Default shall not commence until the City
has sent to the Secured Lender such copy of the applicable Notice of Breach or Hearing
Notice.
(b) After a Secured Lender has received a copy of such Notice
of Default or Hearing Notice, such Secured Lender shall thereafter have a period of time
(in addition to any notice and/or cure period afforded to Developer under this Agreement)
equal to: (a) ten (10) business days in the case of any Event of Monetary Default and (b)
thirty (30) days in the case of any Event of Non - Monetary Default, during which period
the Secured Lender may provide a remedy or cure of the applicable Event of Monetary
Default or may provide a remedy or cure of the applicable Event of Non - Monetary
Default; provided that if the cure of the Event of Non - Monetary Default cannot
reasonably be completed within thirty days, Secured Lender may, within such 30 -day
period, commence to cure the same and thereafter diligently prosecute such cure to
completion (a "Secured Lender's Cure Period "). If Developer has caused an Event of
Monetary Default or an Event of Non - Monetary Default, then each Secured Lender shall
have the right to remedy such Event of Monetary Default or an Event of Non - Monetary
Default, as applicable, or to cause the same to be remedied prior to the conclusion of the
Secured Lender's Cure Period and otherwise as herein provided. The City shall accept
performance by any Secured Lender of any covenant, condition, or agreement on
Developer's part to be performed hereunder with the same force and effect as though
performed by Developer.
(c) The period of time given to the Secured Lender to cure any
Event of Monetary Default or an Event of Non - Monetary Default by Developer which
reasonably requires that said Secured Lender be in possession of the Property to do so,
shall be deemed extended to include the period of time reasonably required by said
Secured Lender to obtain such possession (by foreclosure, the appointment of a receiver
or otherwise) promptly and with due diligence; provided that during such period all other
obligations of Developer under this Agreement, including, without limitation, payment of
all amounts due, are being duly and promptly performed.
12.1.4 Secured Lender Not Obligated Under this Agreement.
(a) No Secured Lender shall have any obligation or duty under
this Agreement to perform the obligations of Developer's or the affirmative covenants of
Developer's hereunder or to guarantee such performance unless and until such time as a
Secured Lender takes possession or becomes the owner of the estate covered by its
Mortgage. If the Secured Lender takes possession or becomes the owner of any portion
of the Property, then from and after that date, the Secured Lender shall be obligated to
comply with all provisions of this Agreement; provided that the Secured Lender shall not
be responsible to the City for any unpaid monetary obligations of Developer that accrued
prior to the date the Secured Lender became the fee owner of the Property.
(b) Nothing in Section 12.1.4(a) is intended, nor should be
construed or applied, to limit or restrict in any way the City's authority to terminate this
Agreement, as against any Secured Lender as well as against Developer if any curable
Event of Monetary Default or an Event of Non- Monetary Default is not completely cured
within the Secured Lender's Cure Period.
ARTICLE 13
TRANSFERS AND ASSIGNMENTS
13.1 Transfers and Assignments.
13. 1.1 Not Severable from Ownership Interest in Property. This
Agreement shall not be severable from Developer's interest in the Property and any
transfer of the Property or any portion thereof shall automatically operate to transfer the
benefits and burdens of this Agreement with respect to the transferred Property or
transferred portions, as applicable.
13.1.2 Transfer Rights. Developer may freely sell, transfer, exchange,
hypothecate, encumber or otherwise dispose of its interest in the Property, without the
consent of the City. Developer shall, however, give written notice to the City, in
accordance with Section 15.1, of any transfer of the Property, disclosing in such notice
(a) the identity of the transferee of the Property (the "Property Transferee ") and (b) the
address of the Property Transferee as applicable.
13.2 Release Upon Transfer. Upon the sale, transfer, exchange or
hypothecation of the rights and interests of Developer to the Property, Developer shall be
released from its obligations under this Agreement to the extent of such sale, transfer or
exchange with respect to the Property if: (a) Developer has provided written notice of
such transfer to City; and (b) the Property Transferee executes and delivers to City a
written agreement in which the Property Transferee expressly and unconditionally
assumes all of the obligations of Developer under this Agreement with respect to the
Property in the form of Exhibit "G" attached hereto (the "Assumption Agreement ").
Upon such transfer of the Property and the express assumption of Developer's obligations
under this Agreement by the transferee, the City agrees to look solely to the transferee for
compliance with the provisions of this Agreement. Any such transferee shall be entitled
to the benefits of this Agreement as "Developer" hereunder and shall be subject to the
obligations of this Agreement. Failure to deliver a written Assumption Agreement
hereunder shall not affect the transfer of the benefits and burdens as provided in Section
13. 1, provided that the transferor shall not be released from its obligations hereunder
unless and until the executed Assumption Agreement is delivered to the City.
ARTICLE 14
INDEMNITY TO CITY
14.1 Indemnity. Developer agrees to and shall defend, indemnify and hold
harmless the City, its City Council, boards and commissions, officers, agents, employees,
volunteers and other representatives (collectively referred to as "City Indemnified
Parties ") from and against any and all loss, liability, damages, cost, expense, claims,
demands, suits, attorney's fees and judgments (collectively referred to as "Damages'),
including but not limited to claims for damage for personal injury (including death) and
claims for property damage arising directly or indirectly from the following: (1) for any
act or omission of Developer or those of its officers, board members, agents, employees,
volunteers, contractors, subcontractors or other persons acting on its behalf (collectively
referred to as the "Developer Parties ") which occurs during the Term and relates to this
Agreement; (2) for any act or omission related to the operations of Developer Parties,
including but not limited to the maintenance and operation of areas on the Property
accessible to the public. Developer's obligation to defend, indemnify and hold harmless
applies to all actions and omissions of Developer Parties as described above caused or
alleged to have been caused in connection with the Project or Agreement, except to the
extent any Damages are caused by the active negligence or willful misconduct of any
City Indemnified Parties. This Section 14.1 applies to all Damages suffered or alleged to
have been suffered by the City Indemnified Parties regardless of whether or not the City
prepared, supplied or approved plans or specifications or both for the Project.
14.2 City's Right to Defense. The City shall have the right to approve legal
counsel retained by Developer to defend any claim, action or proceeding which
Developer is obligated to defend pursuant to Section 14.1, which approval shall not be
unreasonably withheld, conditioned or delayed. If any conflict of interest results during
the mutual representation of the City and Developer in defense of any such action, or if
the City is reasonably dissatisfied with legal counsel retained by Developer, the City shall
have the right (a) at Developer's costs and expense, to have the City Attorney undertake
and continue the City's defense, or (b) with Developer's approval, which shall not be
reasonably withheld or delayed, to select separate outside legal counsel to undertake and
continue the City's defense.
ARTICLE 15
GENERAL PROVISIONS
15.1 Notices. Formal notices, demands and communications between the
Parties shall be deemed sufficiently given if delivered to the principal offices of the City
or Developer, as applicable, by (i) personal service, or (ii) express mail, Federal Express,
or other similar overnight mail or courier service, regularly providing proof of delivery,
or (iii) registered or certified mail, postage prepaid, return receipt requested, or (iv)
facsimile (provided that any notice delivered by facsimile is followed by a separate notice
sent within twenty -four (24) hours after the transmission by facsimile delivered in one of
the other manners specified above). Such notice shall be addressed as follows:
To City: City of Santa Monica
1685 Main Street, Room 204
Santa Monica, California 90401
Attention: City Manager
With a Copy to: City of Santa Monica
1685 Main Street, Room 212
Santa Monica, California 90401
Attn: Planning and Community Development Director
To Developer: Pico Eleven, LLC
1225 Coast Village Road Ste. C
Santa Barbara, CA 93108
With a Copy to: Harding Larmore Kutcher & Kozal, LLP
1250 Sixth Street, Suite 200
Santa Monica, California 90401
Attention: Kevin V. Kozal, Esq.
Notice given in any other manner shall be effective when received by the addressee. Any
Party may change the addresses for delivery of notices to such Party by delivering notice
to the other Party in accordance with this provision.
15.2 Entire Agreement: Conflicts. This Agreement represents the entire
agreement of the Parties. This Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto, and supersedes all negotiations or previous
agreements between the Parties or their predecessors in interest with respect to all or any
part of the subject matter hereof. Should any or all of the provisions of this Agreement
be found to be in conflict with any other provision or provisions found in the Existing
Regulations, then the provisions of this Agreement shall prevail.
15.3 Bindin Effect. ffect. The Parties intend that the provisions of this Agreement
shall constitute covenants which shall run with the land comprising the Property during
the Term for the benefit thereof and that the burdens and benefits thereof shall bind and
inure to the benefit of all successors -in- interest to the Parties hereto. Every Party who
now or hereafter owns or acquires any right, title, or interest in or to any portion of the
Project during the Term is and shall be conclusively deemed to have consented and
agreed to every provision contained herein, to the extent relevant to said right, title or
interest, whether or not any reference to this Agreement is contained in the instrument by
which such person acquired an interest in the Project.
15.4 Agreement Not for Benefit of Third Parties. This Agreement is made and
entered into for the sole protection and benefit of Developer and the City and their
respective successors and assigns. No other person shall have any right of action based
upon any provision of this Agreement.
15.5 No Partnership or Joint Venture. Nothing in this Agreement shall be
deemed to create a partnership or joint venture between the City and Developer or to
render either Party liable in any manner for the debts or obligations of the other.
15.6 Estoppel Certificates. Either Party may, at any time, and from time to
time, deliver written notice to the other Party requesting such Party to certify in writing
(each, an "Estoppel Certificate "): (a) that this Agreement is in full force and effect,
(b) that this Agreement has not been amended or modified either orally or in writing, or if
so amended, identifying the amendments, (c) whether or not, to the knowledge of the
responding Party, the requesting Party is in Breach or claimed Breach in the performance
of its obligations under this Agreement, and, if so, describing the nature and amount of
any such Breach or claimed Breach, and (d) whether or not, to the knowledge of the
responding Party, any event has occurred or failed to occur which, with the passage of
time or the giving of notice, or both, would constitute an Event of Monetary Default or an
Event of Non - Monetary Default and, if so, specifying each such event. A Party receiving
a request for an Estoppel Certificate shall execute and return such Certificate within thirty
(30) days following the receipt of the request therefor. If the party receiving the request
hereunder does not execute and return the certificate in such 30 -day period and if
circumstances are such that the Party requesting the notice requires such notice as a
matter of reasonable business necessity, the Party requesting the notice may seek a
second request which conspicuously states "FAILURE TO EXECUTE THE
REQUESTED ESTOPPEL CERTIFICATE WITHIN FIFTEEN (15) DAYS SHALL BE
DEEMED WAIVER PURSUANT TO SECTIONS 15.6 AND 15.13 OF THE
DEVELOPMENT AGREEMENT" and which sets forth the business necessity for a
timely response to the estoppel request. If the Party receiving the second request fails to
execute the Estoppel Certificate within such 15 -day period, it shall be conclusively
deemed that the Agreement is in full force and effect and has not been amended or
modified orally or in writing, and that there are no uncured defaults under this Agreement
or any events which, with passage of time of giving of notice, of both, would constitute a
default under the Agreement. The City Manager shall have the right to execute any
Estoppel Certificate requested by Developer under this Agreement. The City
acknowledges that an Estoppel Certificate may be relied upon by any Property
Transferee, Secured Lender or other party.
15.7 Time. Time is of the essence for each provision of this Agreement of
which time is an element.
15.8 Excusable Delays.
15.8.1 In addition to any specific provisions of this Agreement, non-
performance by Developer of its obligations under this Agreement shall be excused when
it has been prevented or delayed in such performance by reason of any act, event or
condition beyond the reasonable control of Developer (collectively, "Excusable Delays ")
for any of the following reasons:
(a) War, insurrection, walk -outs, riots, acts of terrorism,
floods, earthquakes, fires, casualties, acts of God, or similar grounds for excused
performances;
(b) Governmental restrictions or moratoria imposed by the City
or by other governmental entities or the enactment of conflicting State or Federal laws or
regulations;
(c) The imposition of restrictions or moratoria by judicial
decisions or by litigation, contesting the validity, or seeking the enforcement or
clarification of, this Agreement whether instituted by Developer, the City or any other
person or entity, or the filing of a lawsuit by any Party arising out of this Agreement or
any permit or approval Developer deems necessary or desirable for the implementation of
the Project;
(d) The institution of a referendum pursuant to Government
Code Section 65867.5 or a similar public action seeking to in any way invalidate, alter,
modify or amend the ordinance adopted by the City Council approving and implementing
this Agreement;
(e) Inability to secure necessary labor, materials or tools, due
to strikes, lockouts, or similar labor disputes; and
(I) Failure of the City to timely perform its obligations
hereunder, including its obligations under Section 7.2 above.
15.8.2 Under no circumstances shall the inability of Developer to secure
financing be an Excusable Delay to the obligations of Developer except to the extent the
inability to secure financing is directly associated with war, insurrection, walk -outs, riots,
acts of terrorism, floods, earthquakes, fires, casualties, acts of God, or similar grounds
beyond the control of Developer.
15.8.3 In order for an extension of time to be granted for any Excusable
Delay, Developer must deliver to the City written notice of the commencement of the
Excusable Delay within sixty (60) days after the date on which Developer becomes aware
of the existence of the Excusable Delay. The extension of time for an Excusable Delay
shall be for the actual period of the delay.
15.8.4 Nothing contained in this Section 15.8 is intended to modify the
terms of either Section 5.1.2 or Section 5.5 of this Agreement.
15.9 Governing Law. This Agreement shall be governed exclusively by the
provisions hereof and by the laws of the State of California.
15.10 Cooperation in Event of Legal Challenge to Agreement. If there is any
court action or other proceeding commenced that includes any challenge to the validity,
enforceability or any term or provision of this Agreement, then Developer shall
indemnify, hold harmless, pay all costs actually incurred, and provide defense in said
action or proceeding, with counsel reasonably satisfactory to both the City and
Developer. The City shall cooperate with Developer in any such defense as Developer
may reasonably request.
15.11 Attorneys' Fees. If any Party commences any action for the interpretation,
enforcement, termination, cancellation or rescission of this Agreement or for specific
performance for the Breach of this Agreement, the prevailing Party shall be entitled to its
reasonable attorneys' fees, litigation expenses and costs. Attorneys' fees shall include
attorneys' fees on any appeal as well as any attorneys' fees incurred in any post judgment
proceedings to collect or enforce the judgment. Such attorneys' fees shall be paid
whether or not such action is prosecuted to judgment. hi any case where this Agreement
provides that the City or Developer is entitled to recover attorneys' fees from the other,
the Party so entitled to recover shall be entitled to an amount equal to the fair market
value of services provided by attorneys employed by it as well as any attorneys' fees
actually paid by it to third Parties. The fair market value of the legal services for public
attorneys shall be determined by utilizing the prevailing billing rates of comparable
private attorneys.
15.12 Recordation. The Parties shall cause this Agreement to be recorded
against title to the Property in the Official Records of the County of Los Angeles. The
cost, if any, of recording this Agreement shall be borne by Developer.
15.13 No Waiver. No waiver of any provision of this Agreement shall be
effective unless in writing and signed by a duly authorized representative of the Party
against whom enforcement of a waiver is sought and referring expressly to this Section
15_13. No delay or omission by either Party in exercising any right or power accruing
upon non - compliance or failure to perform by the other Party under any of the provisions
of this Agreement shall impair any such right or power or be construed to be a waiver
thereof, except as expressly provided herein. No waiver by either Party of any of the
covenants or conditions to be performed by the other Party shall be construed or deemed
a waiver of any succeeding breach or nonperformance of the same or other covenants and
conditions hereof of this Agreement.
15.14 Construction of this Agreement. The Parties agree that each Party and its
legal counsel have reviewed and revised this Agreement and that any rule of construction
to the effect that ambiguities are to be resolved against the drafting Party shall not apply
in the interpretation of this Agreement or any amendments or exhibits thereto.
15.15 Other Governmental Approvals. Developer may apply for such other
permits and approvals as may be required for development of the Project in accordance
with this Agreement from other governmental or quasi - governmental agencies having
jurisdiction over the Property. The City shall reasonably cooperate with Developer in its
endeavors to obtain such permits and approvals.
15.15.1 Further Assurances; Covenant to Sign Documents. Each Party
shall take all actions and do all things, and execute, with acknowledgment or affidavit, if
required, any and all documents and writings, which may be necessary or proper to
achieve the purposes and objectives of this Agreement.
15.15.2 Processing. Upon satisfactory completion by Developer of all
required preliminary actions and payments of appropriate processing fees, if any, the City
shall, subject to all legal requirements, promptly initiate, diligently process, and complete
at the earliest possible time all required steps, and expeditiously act upon any approvals
and permits necessary for the development by Developer of the Project in accordance
with this Agreement, including, but not limited to, the following:
(a) the processing of applications for and issuing of all
Discretionary Approvals requiring the exercise of judgment and deliberation by City;
(b) the holding of any required public hearings; and
(c) the processing of applications for and issuing of all City
Technical Permits requiring the determination of conformance with the Existing
Regulations.
15.15.3 No Revocation. The City shall not revoke or subsequently
disapprove any approval or future approval for the development of the Project or the
Property once issued by the City provided that the development of the Project or the
Property is in accordance with such approval. Any disapproval by the City shall state in
writing the reasons for such disapproval and the suggested actions to be taken in order for
approval to be granted.
15.15.4 Processing During Third Party Litigation. If any third party
lawsuit is filed against the City or Developer relating to this Agreement or to other
development issues affecting the Property, the City shall not delay or stop the
development, processing or construction of the Property, or issuance of the City
Technical Permits, unless the third party obtains a court order preventing the activity.
The City shall not stipulate to or fail to oppose the issuance of any such order.
Notwithstanding the foregoing and without prejudice to the provisions of Section
15.8.1(c), after service on the City or Developer of the initial petition or complaint
challenging this Agreement or the Project, the Developer may apply to the Planning
Director for a tolling of the applicable deadlines for Developer to otherwise comply with
this Agreement. Within 40 days after receiving such an application, the Planning Director
shall either toll the time period for up to five years during the pendency of the litigation
or deny the requested tolling.
15.15.5 State Federal or Case Law. Where any state, federal or case law
allows the City to exercise any discretion or take any act with respect to that law, the City
shall, in an expeditious and timely manner, at the earliest possible time, (i) exercise its
discretion in such a way as to be consistent with, and carry out the terms of, this
Agreement and (ii) take such other actions as may be necessary to carry out in good faith
the terms of this Agreement.
15.16 Venue. Any legal action or proceeding among the Parties arising out of
this Agreement shall be instituted in the Superior Court of the County of Los Angeles,
State of California, in any other appropriate court in that County, or in the Federal
District Court in the Central District of California.
15.17 Exhibits. The following exhibits which are part of this Agreement are
attached hereto and each of which is incorporated herein by this reference as though set
forth in full:
Exhibit "A ": Legal Description of Property
Exhibit `B ": Project Plans
Exhibit "C ": Permitted Fees and Exactions
Exhibit "D" Conditions of Approval
Exhibit `B ": SMMC Article 9 (Planning and Zoning)
Exhibit "F ": Local Hiring
Exhibit "G": Construction Mitigation Obligations
Exhibit "H ": Reserved
Exhibit "I ": Assignment and Assumption Agreement
Except as to the Project Plans (attached hereto as Exhibit B) which shall be
treated in accordance with Section 2.1 above, the text of this Agreement shall prevail in
the event that any inconsistencies exist between the Exhibits and the text of this
Agreement.
15.18 Counterpart Signatures. The Parties may execute this Agreement on
separate signature pages which, when attached hereto, shall constitute one complete
Agreement.
15.19 Certificate of Performance. Upon the completion of the Project, or any
phase thereof, or upon performance of this Agreement or its earlier revocation and
termination, the City shall provide Developer, upon Developer's request, with a statement
( "Certificate of Performance ") evidencing said completion, termination or revocation
and the release of Developer from further obligations hereunder, except for any further
obligations which survive such completion, termination or revocation. The Certificate of
Performance shall be signed by the appropriate agents of Developer and the City and
shall be recorded against title to the Property in the official records of Los Angeles
County, California. Such Certificate of Performance is not a notice of completion as
referred to in California Civil Code Section 3093.
15.20 Interests of Developer. Developer represents to the City that, as of the
Effective Date, it is the owner of the entire Property subject to encumbrances, easements,
covenants, conditions, restrictions, and other matters of record.
15.21 Operating Memoranda. The provisions of this Agreement require a close
degree of cooperation between the City and Developer. During the Term of this
Agreement, clarifications to this Agreement and the Existing Regulations may be
appropriate with respect to the details of performance of the City and Developer. If and
when, from time to time, during the term of this Agreement, the City and Developer
agree that such clarifications are necessary or appropriate, they shall effectuate such
clarification through operating memoranda approved in writing by the City and
Developer, which, after execution, shall be attached hereto and become part of this
Agreement and the same may be further clarified from time to time as necessary with
future written approval by the City and Developer. Operating memoranda are not
intended to and cannot constitute an amendment to this Agreement but mere ministerial
clarifications, therefore public notices and hearings shall not be required for any
operating memorandum. The City Attorney shall be authorized, upon consultation with,
and approval of, Developer, to determine whether a requested clarification may be
effectuated pursuant to the execution and delivery of an operating memorandum or
whether the requested clarification is of such character to constitute an amendment of this
Agreement which requires compliance with the provisions of Section 8.1 above. The
authority to enter into such operating memoranda is hereby delegated to the City
Manager and the City Manager is hereby authorized to execute any operating memoranda
hereunder without further action by the City Council.
15.22 Acknowledgments, Agreements and Assurance on the Part of Developer.
15.22.1 Developer's Faithful Performance. The Parties acknowledge and
agree that Developer's faithful performance in developing the Project on the Property and
in constructing and installing certain public improvements pursuant to this Agreement
and complying with the Existing Regulations will fulfill substantial public needs. The
City acknowledges and agrees that there is good and valuable consideration to the City
resulting from Developer's assurances and faithful performance thereof and that same is
in balance with the benefits conferred by the City on the Project. The Parties further
acknowledge and agree that the exchanged consideration hereunder is fair, just and
reasonable. Developer acknowledges that the consideration is reasonably related to the
type and extent of the impacts of the Project on the community and the Property, and
further acknowledges that the consideration is necessary to mitigate the direct and
indirect impacts caused by Developer on the Property.
15.22.2 Obligations to be Non - Recourse. As a material element of this
Agreement, and in partial consideration for Developer's execution of this Agreement, the
Parties each understand and agree that the City's remedies for breach of the obligations of
Developer under this Agreement shall be limited as described in Sections 11.2 through
11.4 above.
15.23 Waiver of Protest. Developer acknowledges and agrees that by executing
this Agreement, Developer waives any and all claims and rights, if any, under
Government Code Section 66020 to protest fees, dedications, reservations, or exactions
required by this Agreement (hereinafter "exactions "), including the City's right to request
and receive the exaction pursuant to this Agreement, the total exaction amount if
specified by the Agreement, and the formula for subsequently calculating exactions if the
formula is established by the Existing Regulations. Notwithstanding the above, if the
amount of any exaction is not expressly set forth in this Agreement, Developer reserves
the right to protest the subsequent calculation of this amount.
15.24 Not a Public Dedication. Except for the dedications to be made by
Developer pursuant to Section 2.6, nothing in this Agreement shall be deemed to be a gift
or dedication of the Property, or of the Project, or any portion thereof, to the general
public, for the general public, or for any public use or purpose whatsoever, it being the
intention and understanding of the Parties that this Agreement be strictly limited to and
for the purposes herein expressed for the development of the Project as private property.
Developer shall have the right to prevent or prohibit the use of the Property, or the
Project, or any portion thereof, including common areas and building and improvements
located thereon, by any person for any purpose inimical to the development of the
Project, including without limitation to prevent any person or entity from obtaining or
accruing any prescriptive or other right to use the Property or the Project.
15.25 Other Agreements. The City acknowledges that certain additional
agreements may be necessary to effectuate the intent of this Agreement and facilitate
development of the Project. The City Manager or his /her designee is hereby authorized to
prepare, execute and record those additional agreements.
15.26 Severability and Termination. If any provision of this Agreement is
determined by a court of competent jurisdiction to be invalid or unenforceable, or if any
provision of this Agreement is superseded or rendered unenforceable according to any
law which becomes effective after the Effective Date, the remainder of this Agreement
shall be effective to the extent the remaining provisions are not rendered impractical to
perform, taking into consideration the purposes of this Agreement.
This Agreement is executed by the Parties on the date first set forth above and is
made effective on and as of the Effective Date.
ATTEST:
e
MARIA M. STEWART
City Clerk
APPROVED AS TO FORM:
MARSHA JONES MOUTRIE
City Attorney
DEVELOPER:
PICO ELEVEN, LLC
a limited liability company
By:
Name: Peter Bohlinger
Title: Managing Member
CITY:
CITY OF SANTA MONICA,
a municipal corporation
C
Rod Gould
City Manager
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
LOT 1 OF TRACT NO. 61782, IN THE CITY OF SANTA MONICA, COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1345 PAGES 94
AND 95 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
APN: 4284- 017 -041
A -1
EXHIBIT `B"
PROJECT PLANS
On file with the City of Santa Monica.
B-1
EXHIBIT "C"
PERMITTED FEES AND EXACTIONS
Developer shall pay the following fees and charges that are within the City's
jurisdiction and at the rate in effect at the time payments are made:
(a) Upon submittal for Architectural Review Board (ARB) review, Developer
shall pay City fees for processing of ARB applications;
(b) Upon submittal for plan check, Developer shall pay City plan check fees;
(c) Prior to issuance of construction permits, Developer shall pay the
following City fees and all other standard fees imposed on similar
development projects:
• Building, Plumbing, Mechanical, Electrical, Grading, Seismic Mapping,
Excavation and Shoring Permit fees (collected by Building & Safety)
• Shoring Tieback fee (collected by EPWM)
• Construction and Demolition (C &D) Waste Management fee (SMMC
Chapter 8.108) (collected by EPWM) (collected by EPWM)
• Wastewater Capital Facilities Fee (SMMC Section 7.04.460) (collected
by EPWM)
• Water Capital Facilities Fee & Water Meter Instillation fee (Water
Meter Permit fee) (SMMC Section 7.12.090) (collected by EPWM)
• Fireline Meter fee (SMMC Section 7.12.090) (collected by EPWM)
• Childcare Linkage Fee (SMMC Section 9.72.040). Developer shall
execute a contract to pay the fee prior to issuance of a building permit.
Developer shall pay the fee prior to the issuance of a final certificate of
occupancy for the Project. The affordable units are exempted entirely
from this fee calculation and the price - regulated units are provided a
50% discount.
C -1
® Cultural Arts Fee (SMMC Section 9.04.10.20). Developer shall execute
a contract to pay the fee prior to issuance of a building permit.
Developer shall pay the fee prior to the issuance of a final certificate of
occupancy for the Project.
(d) Upon inspection of the Project during the course of construction, City
inspection fees.
These fees shall be reimbursed to Developer in accordance with the City's
standard practice should Developer not proceed with development of the Project.
2. Prior to issuance of permits for any construction work in the public right -of -way,
or use of public property, Developer shall pay the following City fees:
® Use of Public Property Permit fees (SMMC 7.04.670) (EPWM)
® Utility Excavation Permit fee (SMMC 7.04.010) (EPWM)
• Street Permit fee (SMMC 7.04.790) (EPWM)
3. Developer shall reimburse the City for its ongoing actual costs to monitor the
project's compliance with this Development Agreement. The City shall bill
Developer for staff time and any material used pursuant to the hourly fees in
effect at the time monitoring is performed. Developer shall submit payment to the
City within 30 days after receipt of an invoice for same from the City.
C -2
EXHIBIT "D"
CONDITIONS OF APPROVAL
SECTION A - (RESERVED]
D -1
Project Specific Conditions
(g) The project shall provide the Significant Project Features and LUCE Community
Benefits as established in Section 2.6 of this Agreement.
CITY PLANNING
Administrative Conditions
(h) In the event Developer violates or fails to comply with any conditions of approval
of this permit, no further permits, licenses, approvals or certificates of occupancy
shall be issued until such violation has been fully remedied.
Conformance with Approved Plans
(i) This approval is for those plans dated XXX, a copy of which is attached to the
Development Agreement as Exhibit B. Project development shall be consistent
with such plans, except as otherwise specified in these conditions of approval.
(j) Minor amendments to the plans shall be subject to approval by the Director of
Planning. A significant change in the approved concept shall be subject to review
as provided in the Development Agreement. Construction shall be in conformance
with the plans submitted or as modified in accordance with the Development
Agreement.
(k) Except as otherwise provided by the Development Agreement, project plans shall
be subject to complete Code Compliance review when the building plans are
submitted for plan check and shall comply with all applicable provisions of
Article IX of the Municipal Code and all other pertinent ordinances and General
Plan policies of the City of Santa Monica prior to building permit issuance.
Fees
(1) No building permit shall be issued for the project until the developer complies
with the requirements of Part 9.04.10.20 of the Santa Monica Municipal Code,
Private Developer Cultural Arts Requirement. If the developer elects to comply
with these requirements by providing on -site public art work or cultural facilities,
no final City approval shall be granted until such time as the Director of the
Community and Cultural Services Department issues a notice of compliance in
accordance with Part 9.04.10.20.
D -2
(m) No building permit shall be issued for the project until the developer complies
with the requirements of Chapter 9.72 of the Santa Monica Municipal Code, the
Child Care Linkage Program.
Cultural Resources
(n) If any archaeological remains are uncovered during excavation or construction,
work in the affected area shall be suspended and a recognized specialist shall be
contacted to conduct a survey of the affected area at project's owner's expense. A
determination shall then be made by the Director of Planning to determine the
significance of the survey findings and appropriate actions and requirements, if
any, to address such findings.
Project Operations
(o) The operation of the project shall at all times be conducted in a manner not
detrimental to surrounding properties or residents by reason of lights, noise,
activities, parking or other actions.
(p) The project shall at all times comply with the provisions of the Noise Ordinance
(SMMC Chapter 4.12 or any successor thereto).
Final Design
(q) Plans for final design, landscaping, screening, trash enclosures, and signage shall
be subject to review and approval by the Architectural Review Board.
Furthermore, the Board shall pay particular attention to the massing and
compatibility of the proposed building to the surrounding neighborhood, subject
to Article 6.
(r) Landscaping plans shall comply with Subchapter 9.04.10.04 (Landscaping
Standards) of the Zoning Ordinance including use of water - conserving
landscaping materials, landscape maintenance and other standards contained in
the Subchapter.
(s) Refuse areas, storage areas and mechanical equipment shall be screened in
accordance with SMMC Section 9.04.10.02.130, 140, and 150. Refuse areas shall
be of a size adequate to meet on -site need, including recycling. The Architectural
Review Board in its review shall pay particular attention to the screening of such
areas and equipment. Any rooftop mechanical equipment shall be minimized in
height and area, and shall be located in such a way as to minimize noise and
visual impacts to surrounding properties. Unless otherwise approved by the
Architectural Review Board, rooftop mechanical equipment shall be located at
least five feet from the edge of the roof. Except for solar hot water heaters, no
residential water heaters shall be located on the roof.
D -3
(t) No gas or electric meters shall be located within the required front or street side
yard setback areas. The Architectural Review Board in its review shall pay
particular attention to the location and screening of such meters.
(u) Prior to consideration of the project by the Architectural Review Board, the
applicant shall review disabled access requirements with the Building and Safety
Division and make any necessary changes in the project design to achieve
compliance with such requirements. The Architectural Review Board, in its
review, shall pay particular attention to the aesthetic, landscaping, and setback
impacts of any ramps or other features necessitated by accessibility requirements.
(v) As appropriate, the Architectural Review Board shall require the use of anti -
graffiti materials on surfaces likely to attract graffiti.
Construction Plan Requirements
(w) Final building plans submitted for approval of a building permit shall include on
the plans a list of all permanent mechanical equipment to be placed indoors which
may be heard outdoors.
Standard Conditions
(x) Mechanical equipment shall not be located on the side of any building which is
adjacent to a residential building on the adjoining lot, unless otherwise permitted
by applicable regulations. Roof locations may be used when the mechanical
equipment is installed within a sound -rated parapet enclosure.
(y) Final approval of any mechanical equipment installation will require a noise test
in compliance with SMMC Section 4.12.040. Equipment for the test shall be
provided by the owner or contractor and the test shall be conducted by the owner
or contractor. A copy of the noise test results on mechanical equipment shall be
submitted to the Community Noise Officer for review to ensure that noise levels
do not exceed maximum allowable levels for the applicable noise zone.
(z) The property owner shall insure any graffiti on the site is promptly removed
through compliance with the City's graffiti removal program.
Condition Monitoring
(aa) The applicant authorizes reasonable City inspections of the property to ensure
compliance with the conditions of approval imposed by the City in approving this
project and will bear the reasonable cost of these inspections.
D -4
STRATEGIC AND TRANSPORTATION PLANNING
(bb) Final auto parking, bicycle parking and loading layouts specifications shall be
subject to the review and approval of the Strategic and Transportation Planning
Division:
httD: / /www smaov net /uploadedFiles/ Departments /Transportation/Ti-anspgAgion
Management/Parkina5tandardS.pdf
(cc) Where a driveway, garage, parking space or loading zone intersects with the
public right -of -way at the alley or sidewalk, on -site hazardous visual obstruction
triangles shall be provided in accordance with SMMC Section 9.04.10.02.090.
Please reference the following standards:
http• / /www.smaov.net/u iloadedFiles/D artments/Trans. ortation/Transvortation
Management /HVO.ndf
(dd) Slopes of all driveways and ramps used for ingress or egress of parking facilities
shall be designed in accordance with the standards established by the Strategic
and Transportation Planning Manager but shall not exceed a twenty percent slope.
Please reference the following standards:
http: / /,Nww smaov net /uploadedFiles/ Departments /Transportation/Transportation
Mana2ement/Ramp Slope. ndf
PUBLIC LANDSCAPE
(ee) Street trees shall be maintained, relocated or provided as required in a manner
consistent with the City's Urban Forest Master Plan, per the specifications of the
Public Landscape Division of the Community & Cultural Services Department
and the City's Tree Code (SMMC Chapter 7.40). No street trees shall be removed
without the approval of the Public Landscape Division.
(ff) Prior to the issuance of a building permit all street trees that are adjacent to or will
be impacted by the construction access shall have tree protection zones
established in accordance with the Urban Forest Master Plan. All tree protection
zones shall remain in place until construction has been completed.
(gg) Replace or plant new street trees in accordance with Urban Forest Master Plan
and in consultation with City Arborist.
OFFICE OF SUSTAINABILITY AND THE ENVIRONMENT
(hh) Developer shall enroll the property in the Savings By Design incentive program
where available through Southern California Edison prior to submittal of plans for
Architectural Review. Developer shall execute an incentive agreement with
Southern California Edison prior to the issuance of a building permit.
D -5
(ii) The project shall comply with requirements in section 8.106 of the Santa Monica
Municipal code, which adopts by reference the California Green Building
Standards Code and which adds local amendments to that Code. In addition, the
project shall meet the landscape water conservation and construction and
demolition waste diversion requirements specified in Chapter 8.108 of the Santa
Monica Municipal Code.
PUBLIC WORKS
General Conditions
0j) Developer shall be responsible for the payment of the following Public Works
Department (PWD) permit fees prior to issuance of a building permit:
a. Water Services
b. Wastewater Capital Facility
C. Water Demand Mitigation
d. Fire Service Connection
C. Tieback Encroachment, if any,
f Encroachment of on -site improvements into public right -of -way
g. Construction Waste Management — If the valuation of a project is at least
$50,000 or if the total square feet of the project is equal to or greater than
1000 square feet, then the owner or contractor is required to complete and
submit a Waste Management Plan. A performance deposit is collected for
all Waste Management Plans equal to 3% of the project value, not to
exceed $30,000.
Some of these fees shall be reimbursed to Developer in accordance with the
City's standard practice should Developer not proceed with development of the
Project. In order to receive a refund of the Construction and Demolition
performance deposit, the owner or contractor must provide receipts of recycling
70% of all materials listed on the Waste Management Plan.
(kk) Any construction related activity in the public right -of -way will be required to
acquire the approvals by the City of Santa Monica, including but not limited to:
Use of Public Property Permits, Sewer Permits, Excavation Permits, Alley
Closure Permits, Street Closure Permits, and Temporary Traffic Control Plans.
(11) Developer shall comply with the Construction Mitigation Obligations set forth in
Exhibit "G ", attached hereto.
i,
(mm) Plans and specifications for all offsite improvements shall be prepared by a
Registered Civil Engineer licensed in the State of California for approval by the
City Engineer prior to issuance of a building permit.
(nn) During construction, a security fence, the height of which shall be the maximum
permitted by the Zoning Ordinance, shall be maintained around the perimeter of
the lot. The lot shall be kept clear of all trash, weeds, etc.
(oo) Until completion of construction, a sign shall be posted on the property in a
manner consistent with the public hearing sign requirements, which shall identify
the address and phone number of the owner, developer and contractor for the
purposes of responding to questions and complaints during the construction
period. Said sign shall also indicate the hours of permissible construction work.
Water Resources
(pp) Connections to the sewer or storm drains require a sewer permit from the PWD -
Civil Engineering Division. New connections to storm drains owned by Los
Angeles County require a permit from the L.A. County Department of Public
Works.
(qq) Upon completion of construction, parking areas and structures and other facilities
generating wastewater with potential oil and grease content are required to
pretreat the wastewater before discharging to the City storm drain or sewer
system. Pretreatment will require that a clarifier or oil /water separator be
installed and maintained on site.
(rr) If the project involves dewatering, developer /contractor shall contact the LA
Regional Water Quality Control Board (RWQCB) to obtain an NPDES Permit for
discharge of groundwater from construction dewatering to surface water. For
more information refer to: http: / /www.waterboards.ca.gov /losangeles/ and search
for Order # R4- 2003 -0111.
(ss) Prior to the issuance of the first building permit, the applicant shall submit a
sewer study that shows that the City's sewer system can accommodate the entire
development. Developer shall be responsible to upgrade any downstream
deficiencies, to the satisfaction of the Water Resources Manager, if calculations
show that the project will cause such mains to receive greater demand than and
then can be accommodated. Improvement plans shall be submitted to the
Engineering Division. All reports and plans shall also be approved by the Water.
Resources Engineer.
D -7
(tt) Prior to the issuance of the first building permit, the applicant shall submit a water
study that shows that the City's water system can accommodate the entire
development for fire flows and all potable needs. Developer shall be responsible
to upgrade any water flow /pressure deficiencies, to the satisfaction of the Water
Resources Manager, if calculations show that the project will cause such mains to
receive greater demand than can be accommodated. Improvement plans shall be
submitted to the Engineering Division. All reports and plans shall also be
approved by the Water Resources Engineer.
(uu) Prior to the issuance of the first building permit, the applicant shall submit a
hydrology study of all drainage to and from the site to demonstrate adequacy of
the existing storm drain system for the entire development. Developer shall be
responsible to upgrade any system deficiencies, to the satisfaction of City
Engineer, if calculations show that the project will cause such facilities to receive
greater demand than can be accommodated. All reports and improvement plans
shall be submitted to Engineering Division for review and approval. The study
shall be performed by a Registered Civil Engineer licensed in the State of
California.
(vv) Absent City approval, Developer shall not directly connect to a public storm drain
pipe or direct site drainage to the public alley. Residential units are required to
either have an individual water meter or a master meter with sub - meters.
(ww) The fire services and domestic services 3- inches or greater must be above ground,
on the applicant's site, readily accessible for testing.
(xx) Developer is required to meet state cross - connection and potable water sanitation
guidelines. Refer to requirements and comply with the cross - connections
guidelines available at:
http: // www.lapublichealth.org /eh/progs /envirp /ehcross.htm. Prior to issuance of a
Certificate of Occupancy, a cross - connection inspection shall be completed.
(yy) All new restaurants and cooking facilities at the site are required to install Gravity
Grease Interceptors to pretreat wastewater containing grease. The minimum
capacity of the interceptor shall be determined by using table 10 -3 of the 2007
Uniform Plumbing Code, Section 1014.3. All units shall be fitted with a standard
final -stage sample box. The 2007 Uniform Plumbing Code guideline in sizing
Gravity Grease Interceptors is intended as a minimum requirement and may be
increased at the discretion of PWD, Water Resources Protection Program.
(zz) Plumbing fixtures that meet the standards for 20% water use reduction specified
in the California Green Building Standards Code are required on all new
development and remodeling where plumbing is to be added.
D -8
Urban Water Runoff Mitigation
(aaa) To mitigate storm water and surface runoff from the project site, an Urban Runoff
Mitigation Plan shall be required by the PWD pursuant to Municipal Code
Chapter 7.10. Prior to submittal of landscape plans for Architectural Review
Board approval, the applicant shall contact PWD to determine applicable
requirements, such as:
a. The site must comply with SMMC Chapter 7.10 Urban Runoff Pollution
Ordinance for the construction phase and post construction activities;
b. No storm water runoff, sediment and construction waste from the
construction site and parking areas is prohibited from leaving the site;
C. Any sediments or materials which are tracked off -site must be removed
the same day they are tracked off -site;
d. Excavated soil must be located on the site and soil piles should be covered
and otherwise protected so that sediments are not tracked into the street or
adjoining properties;
e. No runoff from the construction site shall be allowed to leave the site; and
f. Drainage control measures shall be required depending on the extent of
grading and topography of the site.
g. Development sites that result in land disturbance of one acre or more are
required by the State Water Resources Control Board (SWRCB) to submit
a Storm Water Pollution Prevention Plan ( SWPPP). Effective September
2, 2011, only individuals who have been certified by the Board as a
"Qualified SWPPP Developer" are qualified to develop and /or revise
SWPPPs. A copy of the SWPPP shall also be submitted to the PWD.
(bbb) Prior to the issuance of a Certificate of Occupancy for the Project, all required
offsite improvements, such as AC pavement rehabilitation, replacement of
sidewalk, curbs and gutters, installation of street trees, lighting, etc. shall be
designed and installed to the satisfaction of the Public Works Department and
Public Landscape Division.
(ccc) Unless otherwise approved by the PWD, all sidewalks shall be kept clear and
passable during the grading and construction phase of the project.
(ddd) Sidewalks, curbs, gutters, paving and driveways which need replacing or removal
as a result of the project or needed improvement prior to the project, as
determined by the PWD shall be reconstructed to the satisfaction of the PWD.
Design, materials and workmanship shall match the adjacent elements including
architectural concrete, pavers, tree wells, art elements, special landscaping, etc.
D -9
(eee) Street and alley sections adjacent to the development shall be replaced as
determined by the PWD. This typically requires full reconstruction of the street
or alley in accordance with City of Santa Monica standards for the full adjacent
length of the property.
Utilities
(fff) No Excavation Permit shall be issued without a Telecommunications
Investigation by the City of Santa Monica Information Systems Department. The
telecommunications investigation shall provide a list of recommendations to be
incorporated into the project design including, but not limited to measures
associated with joint trench opportunities, location of tie -back and other
underground installations, telecommunications conduit size and specifications,
fiber optic cable specifications, telecommunications vault size and placement and
specifications, interior riser conduit and fiber optic cable, and adjacent public
right of way enhancements. Developer shall install two Telecommunication
Vaults in either the street, alley and /or sidewalk locations dedicated solely for
City of Santa Monica use. Developer shall provide two unique,
telecommunication conduit routes and fiber optic cables from building
Telecommunications Room to Telecommunication Vaults in street, alley and/or
sidewalk. Developer will be responsible for paying for the connection of each
Telecommunications Vault to the existing City of Santa Monica fiber optic
network, or the extension of conduit and fiber optic cable for a maximum of lkm
terminating in a new Telecommunications Vault for future interconnection with
City network. The final telecommunications design plans for the project site shall
be submitted to and approved by the City of Santa Monica Information Systems
Department prior to approval of project.
a. Project shall comply with City of Santa Monica Telecommunications
Guidelines.
b. Project shall comply with City of Santa Monica Right -of -Way
Management Ordinance No. 2129CCS, Section 3 (part), adopted 7/13/04
62. Prior to the issuance of a Certificate of Occupancy for the Project, provide new
street- pedestrian lighting with a multiple circuit system along the new street right -
of -way and within the development site in compliance with the PWD Standards
and requirements. New street - pedestrian light poles, fixtures and appurtenances
to meet City standards and requirements.
(ggg) Prior to submittal of plan check application, make arrangements with all affected
utility companies and indicate points of connection for all services on the site plan
drawing. Pay for undergrounding of all overhead utilities within and along the
development frontages. Existing and proposed overhead utilities need to be
relocated underground.
D -10
(hhh) Location of Southern California Edison electrical transformer and switch
equipment/structures must be clearly shown of the development site plan and
other appropriate plans within the project limits. The SCE structures serving the
proposed development shall not be located in the public right -of -way.
Resource Recovery and Recycling
(iii) Development plans must show the refuse and recycling (RR) area dimensions to
demonstrate adequate and easily accessible area. If the RR area is completely
enclosed, then lighting, ventilation and floor drain connected to sewer will be
required. Section 9.04.10.02.151 of the SMMC has dimensional requirements for
various sizes and types of projects. Developments that place the RR area in
subterranean garages must also provide a bin staging area on their property for the
bins to be placed for collection.
(jjj) Contact Resource Recovery and Recycling RRR division to obtain dimensions of
the refuse recycling enclosure.
(kkk) Prior to issuance of a building permit, submit a Waste Management Plan, a map
of the enclosure and staging area with dimensions and a recycling plan to the
RRR Division for its approval. The State of California AB 341 requires any
multi - family building housing 5 units or more to have a recycling program in
place for its tenants. All commercial businesses generating 4 cubic yards of trash
per week must also have a recycling program in place for its employees and
clients /customers. Show compliance with these requirements on the building
plans. Visit the Resource Recovery and Recycling (RRR) website or contact the
RRR Division for requirements of the Waste Management Plan and to obtain the
minimum dimensions of the refuse recycling enclosure. The recycling plan shall
include:
a. List of materials such as white paper, computer paper, metal cans, and
glass to be recycled;
b. Location of recycling bins;
c. Designated recycling coordinator;
d. Nature and extent of internal and external pick -up service;
e. Pick -up schedule; and
f. Plan to inform tenants/ occupants of service.
Miscellaneous
(111) For temporary excavation and shoring that includes tiebacks into the public right -
of -way, a Tieback Agreement, prepared by the City Attorney, will be required.
D -11
(mmm)Nothing contained in the Development Agreement for this Project or these
Conditions of Approval shall prevent Developer from seeking relief pursuant to
any Application for Alternative Materials and Methods of Design and
Construction or any other relief as otherwise may be permitted and available
under the Building Code, Fire Code or any other provision of the SMMC.
FIRE
General Requirements
The following comments are to be included on plans if applicable.
Requirements are based on the California Fire Code (CFC), the Santa
Monica Municipal Code (SMMC) and the California Building Code
(CBC).
California Fire Code/ Santa Monica Fire Department Requirements
(nnn) A "Knox" key storage box shall be provided for ALL new construction. For
buildings, other than high -rise, a minimum of 3 complete sets of keys shall be
provided. Keys shall be provided for all exterior entry doors, fire protection
equipment control equipment rooms, mechanical and electrical rooms, elevator
controls and equipment spaces, etc. For high -rise buildings, 6 complete sets are
required.
(000) Santa Monica Municipal Code Chapter 8 section 8.44.050 requires an approved
automatic fire sprinkler system in ALL new construction and certain remodels or
additions. Any building that does not have a designated occupant and use at the
time fire sprinkler plans are submitted for approval, the system shall be designed
and installed to deliver a minimum density of not less than that required for
ordinary hazard, Group 2, with a minimum design area of not less than three
thousand square feet. Plans and specifications for fire sprinkler systems shall be
submitted and approved prior to system installation.
(ppp) Buildings four or more stories in height shall be provided with not less than one
standpipe during construction.
(qqq) The standpipe(s) shall be installed before the progress of construction is more
than 35- feet above grade. Two - and - one - half -inch valve hose connections shall
be provided at approved, accessible locations adjacent to useable stairs.
Temporary standpipes shall be capable of delivering a minimum demand of 500
gpm at 100 -psi residual pressure. Pumping equipment shall be capable of
providing the required pressure and volume.
(rrr) Provide Multipurpose Dry Chemical type fire extinguishers with a minimum
rating of 2A- IOB:C. Extinguishers shall be located on every floor or level.
Maximum travel distance from any point in space or building shall not exceed 75
feet. Extinguishers shall be mounted on wall or installed in cabinet no higher than
4 ft. above finished floor and plainly visible and readily accessible or signage
shall be provided.
f3Ea
(sss) An automatic fire extinguishing system complying with UL 300 shall be provided
to protect commercial -type cooking or heating equipment that produces grease -
laden vapors. A separate plan submittal is required for the installation of the
system and shall be in accordance with UFC Article 10, NFPA 17A and NFPA
96. Provide a Class "K" type portable fire extinguisher within 30 feet the kitchen
appliances emitting grease -laden vapors.
(ttt) Every building and /or business suite is required to post address numbers that are
visible from the street and alley. Address numbers shall be a minimum of six (6)
inches in height and contrast with their background. Suite or room numbers shall
be a minimum of four (4) inches in height and contrast with their background.
Santa Monica Municipal Code Chapter 8 Section 8.48.130 (1) (1)
(nun) When more than one exit is required they shall be arranged so that it is possible to
go in either direction to a separate exit, except dead -ends not exceeding 20 feet,
and 50 feet in fully sprinklered buildings.
(vvv) Exit and directional signs shall be installed at every required exit doorway,
intersection of corridors, exit stairways and at other such locations and intervals
as necessary to clearly indicate the direction of egress. This occupancy /use
requires the installation of approved floor level exit pathway marking. Exit doors
shall be openable from the inside without the use of a key, special effort or
knowledge.
(www) Show ALL door hardware intended for installation on Exit doors.
(xxx) In buildings two stories or more in height an approved floor plan providing
emergency procedure information shall be posted at the entrance to each stairway,
in every elevator lobby, and immediately inside all entrances to the building. The
information shall be posted so that it describes the represented floor and can be
easily seen upon entering the floor level or the building. Required information
shall meet the minimum standards established in the Santa Monica Fire
Department, Fire Prevention Division, information sheet entitled "Evacuation
Floor Plan Signs." (California Code of Regulations Title 19 Section 3.09)
(yyy) Stairway Identification shall be in compliance with CBC 1022.8
(zzz) Floor -level exit signs are required in Group A, E, I, R -1, R -2 and R -4
occupancies.
(aaaa) In buildings two stories in height at least one elevator shall conform to the
California Building Code Chapter 30 section 3003.5a for General Stretcher
Requirements for medical emergency use.
a. The elevator entrance shall not be less than 42 inches wide by 72 inches
high.
D -13
b. The elevator car shall have a minimum clear distance between walls
excluding return panels of not less than 80 inches by 54 inches.
c. Medical emergency elevators shall be identified by the international
symbol (star of life) for emergency elevator use. The symbol shall be not
less than 3- inches in size.
(bbbb) Storage, dispensing or use of any flammable or combustible liquids, flammable
compressed gases or other hazardous materials shall comply with the Uniform
Fire Code. The Santa Monica Fire Department prior to any materials being stored
or used on site shall approve the storage and use of any hazardous materials.
Complete and submit a "Consolidated Permit Application Package." Copies may
be obtained by calling (310) 458 -8915.
(cccc) Alarm- initiating devices, alarm- notification devices and other fire alarm system
components shall be designed and installed in accordance with the appropriate
standards of Chapter 35 of the Building Code, and the National Fire Alarm Code
NFPA 72. The fire alarm system shall include visual notification appliances for
warning the hearing impaired. Approved visual appliances shall be installed in
ALL rooms except private (individual) offices, closets, etc
(dddd) An approved fire alarm system shall be installed as follows:
a. Group A Occupancies with an occupant load of 1,000 or more shall be
provided with a manual fire alarm system and an approved prerecorded
message announcement using an approved voice communication system.
Emergency power shall be provided for the voice communication system.
b. Group E Occupancies having occupant loads of 50 or more shall be
provided with an approved manual fire alarm system.
c. Group R -1, R -2 Apartment houses containing 16 or more dwelling units,
in building three or more stories in height R -2.1 and R -4 Occupancies
shall be provided with a manual alarm system. Smoke detectors shall be
provided in all common areas and interior corridors of required exits.
Recreational, laundry, furnace rooms and similar areas shall be provided
with heat detectors.
(eeee) Plans and specifications for fire alarm systems shall be submitted and approved
prior to system installation
(ffff) California Building Code / Santa Monica Fire Department Requirements
Occupancy Classification and Division
• If a change in occupancy or use, identify the existing and all proposed new
occupancy classifications and uses
• Assembly (A -1, A -2, A -3), Business (B), Mercantile (M), Residential (R), etc.
D -14
• Include all accessory uses
Building Height
• Height in feet (SMMC defines a High -Rise as any structure greater than 55
feet.)
• Number of stories
• Detail increase in allowable height
• Type I (Ii -FR.) buildings housing Group B office or Group R, Division 1
Occupancies each having floors used for human occupancy located more than
55 feet above the lowest level of fire department vehicle access shall comply
with CBC Section 403.
a. Automatic sprinkler system.
b. Smoke - detection systems.
c. Smoke control system conforming to Chapter 9 section 909.
d. Fire alarm and communication systems.
1. Emergency voice alarm signaling system.
2. Fire department communication system.
e. Central control station. (96 square feet minimum with a
minimum dimension of 8' ft)
f. {omitted)
g. Elevators.
h. Standby power and light and emergency systems.
i. Exits
j. Seismic consideration.
Total Floor Area of Building or Project
• Basic Allowable Floor Area
• Floor Area for each room or area
• Detail allowable area increase calculations
Corridor Construction
• Type of Construction
• Detail any and all code exceptions being used
Occupant Load Calculations
• Occupancy Classification for each room or area.
D -15
• Occupant Load Calculation for each room or area based on use or occupancy
• Total Proposed Occupant Load
Means of Egress
• Exit width calculations
• Exit path of travel
• Exit Signage and Pathway Illumination (low level exit signage)
Atria - Atria shall comply with CBC Section 404 as follows:
• Atria shall not be permitted in buildings containing Group H Occupancies.
• The entire building shall be sprinklered.
• A mechanically operated smoke - control system meeting the requirements of
Section 909 and 909.9 shall be installed.
• Smoke detectors shall be installed in accordance with the Fire Code.
• Except for open exit balconies within the atrium, the atrium shall be separated
from adjacent spaces by one -hour fire- resistive construction. See exceptions to
Section 404.6.
• When a required exit enters the atrium space, the travel distance from the
doorway of the tenant space to an enclosed stairway, horizontal exit, exterior
door or exit passageway shall not exceed 200 feet.
• In other than jails, prisons and reformatories, sleeping rooms of Group I
Occupancies shall not have required exits through the atrium.
• Standby power shall be provided for the atrium and tenant space smoke -
control system. Sections 404.7 and 909.11.
• The interior finish for walls and ceilings of the atrium and all unseparated
tenant spaces shall be Class I. Section 404.8.
Atriums of a height greater than 20 feet, measured from the ceiling sprinklers, shall only
contain furnishings and decorative materials with potential heat of combustion less than
9,000 Btu's per pound. All furnishings to comply with California Bureau of Home
Furnishings, Technical Bulletin 133, "Flammability Test for Seating Furniture in Public
Occupancies."
All furnishings in public areas shall comply with California Bureau of Home Furnishings,
Technical Bulletin 133, "Flammability Test for Seating Furniture in Public Occupancies."
D -16
Los Angeles County Fire
(gggg) Fire Flow Requirements
I. INTRODUCTION
A. Purpose: To provide Department standards for fire flow, hydrant spacing
and specifications.
B. Scope: Informational to the general public and instructional to all
individuals, companies, or corporations involved in the subdivision of land,
construction of buildings, or alterations and /or installation of fire protection
water systems and hydrants.
C. Author: The Deputy Chief of the Prevention Services Bureau through
the Assistant Fire Chief (Fire Marshal) of the Fire Prevention Division
is responsible for the origin and maintenance of this regulation.
D. Definitions:
1. GPM — gallons per minute
2. psi — pounds per square inch
3. Detached condominiums — single detached dwelling units on
land owned in common
4. Multiple family dwellings — three or more dwelling units
attached
II. RESPONSIBILITY
A. Land Development Unit
1. The Department's Land Development Unit shall review all
subdivisions of land and apply fire flow and hydrant spacing
requirements in accordance with this regulation and the present
zoning of the subdivision or allowed land use as approved by the
County's Regional Planning Commission or city planning
department.
B. Fire Prevention Engineering Section
1. The Department's Fire Prevention Engineering Section shall
review building plans and apply fire flow and hydrant spacing
requirements in accordance with this regulation.
III. POLICY
A. The procedures, standards, and policies contained herein are provided
to ensure the adequacy of, and access to, fire protection water and shall
be enforced by all Department personnel.
IV. PROCEDURES
A. Land development: fire flow, duration of flow, and hydrant spacing
The following requirements apply to land development issues such as: tract
and parcel maps, conditional use permits, zone changes, lot line adjustments,
planned unit developments, etc.
D -17
Multiple family dwellings, hotels, high rise, commercial, industrial, etc.
a. Due to the undetermined building designs for new land development
projects (undeveloped land), the required fire flow shall be: 5,000
GPM 5 hrs. 300 ft.
NOTE: REDUCTION IN FIRE FLOW IN ACCORDANCE
WITH TABLE 1.
b. Land development projects consisting of lots having existing structures
shall be in compliance with Table 1 (fire flow per building size). This
standard applies to multiple family dwellings, hotels, high rise,
commercial, industrial, etc.
NOTE: FIRE FLOWS PRECEDING ARE MEASURED AT
20 POUNDS PER SQUARE INCH RESIDUAL
PRESSURE.
B. Building plans
The Department's Fire Prevention Engineering Section shall review building plans
and apply fire flow requirements and hydrant spacing in accordance with the
following:
Multiple residential, apartments, single family residences (greater than
5,000 square feet), private schools, hotels, high rise, commercial,
industrial, etc. (R -1, E, B, A, I, H, F, M, S) (see Table 1).
C. Public fire hydrant requirements
1. Fire hydrants shall be required at intersections and along access ways as
spacing requirements dictate
2. Spacing
a. All occupancies
Other than single family dwellings, such as commercial,
industrial, multi - family dwellings, private schools,
institutions, detached condominiums (five or more
units), etc.
Fire hydrant spacing shall be 300 feet.
NOTE:The following guidelines shall be used in
meeting the hydrant spacing requirements.
(1) No portion of lot frontage shall be more than
200 feet via vehicular access from a public hydrant.
(2) No portion of a building should exceed 400 feet
via vehicular access from a properly spaced public
hydrant.
b. Supplemental fire protection
When a structure cannot meet the required public
hydrant spacing distances, supplemental fire protection
shall be required.
NOTE: Supplemental fire protection is not limited to
the installation of on -site fire hydrants; it may include
automatic extinguishing systems.
D -18
3. Hydrant location requirements - both sides of a street
Hydrants shall be required on both sides of the street whenever:
a. Streets having raised median center dividers that make access to hydrants
difficult, causes time delay, and /or creates undue hazard.
b. For situations other than those listed in "a" above, the Department's
inspector's judgment shall be used. The following items shall be considered
when determining hydrant locations:
(1) Excessive traffic loads, major arterial
route, in which traffic would be difficult to
detour.
(2) Lack of adjacent parallel public streets in
which traffic could be redirected (e.g.,
Pacific Coast Highway).
(3) Past practices in the area.
(4) Possibility of future development in the
area.
(5) Type of development (i.e., flag -lot units,
large apartment or condo complex, etc.).
(6) Accessibility to existing hydrants
(7) Possibility of the existing street having a
raised median center divider in the near
future.
D. On -Site Hydrant Requirements
1. When any portion of a proposed structure exceeds (via vehicular access)
the allowable distances from a public hydrant and on -site hydrants are
required, the following spacing requirements shall be met:
a. Spacing distance between on -site hydrants shall be 300 to 600 feet.
(1) Design features shall assist in allowing
distance modifications.
b. Factors considered when allowing distance modifications.
(1) Only sprinklered buildings qualify for the
maximum spacing of 600 feet.
(2) For non - sprinklered buildings,
consideration should be given to fire
protection, access doors, outside storage,
etc. Distance between hydrants should not
exceed 400 feet.
2. Fire flow
a. All on -site fire hydrants shall flow a minimum of 1,250 gallons per
minute at 20 psi for a duration of two hours. If more than one on -site fire
hydrant is required, the on -site fire flow shall be at least 2,500 gallons per
minute at 20 psi, flowing from two hydrants simultaneously. On site flow
may be greater depending upon the size of the structure and the distance
from public hydrants.
D -19
NOTE: ONE OF THE TWO HYDRANTS TESTED SHALL BE
THE FARTHEST FROM THE PUBLIC WATER
SOURCE.
3. Distance fi•om structures
All on -site hydrants shall be installed a minimum of 25 feet from a
structure or protected by a two -hour firewall.
4. Shut -off valves
All on -site hydrants shall be equipped with a shut -off (gate) valve,
which shall be located as follows:
a. Minimum distance to the hydrant 10 feet.
b. Maximum distance from the hydrant 25 feet
5. Inspection of new installations
All new on -site hydrants and underground installations are subject
to inspection of the following items by a representative of the
Department:
a. Piping materials and the bracing and support thereof.
b. A hydrostatic test of 200 psi for two hours.
c. Adequate flushing of the installation.
d. Flow test to satisfy required fire flow.
(1) Hydrants shall be painted with two coats of red primer and
one coat of red paint, with the exception of the stem and
threads, prior to flow test and acceptance of the system.
6. Maintenance
It shall be the responsibility of the property management company,
the homeowners association, or the property owner to maintain on-
site hydrants.
a. Hydrants shall be painted with two coats of red primer and one coat of
red, with the exception of the stem and threads, prior to flow test and
acceptance of the system.
b. No barricades, walls, fences, landscaping, etc., shall be installed or
planted within three feet of a fire hydrant.
E. Public Hydrant Flow Procedure
The minimum acceptable flow from any existing public hydrant shall be 1,000
GPM unless the required fire flow is less. Hydrants used to satisfy fire
flow requirements will be determined by the following items:
1. Only hydrants that meet spacing requirements are acceptable
for meeting fire flow requirements.
2. In order to meet the required fire flow:
D -20
a. Flow closest hydrant and calculate to determine flow at 20
pounds per square inch residual pressure. If the calculated
flow does not meet the fire flow requirement, the next closest
hydrant shall be flowed simultaneously with the first
hydrant, providing it meets the spacing requirement, etc.
b. If more than one hydrant is to be flowed in order to meet
the required fire flow, the number of hydrants shall be
flowed as follows:
One hydrant 1,250 GPM and below
Two hydrants 1,251— 3,500 GPM flowing simultaneously
Three hydrants 3,501— 5,000 GPM flowing simultaneously
F. Hydrant Upgrade Policy
1. Existing single outlet 2 1/2" inch hydrants shall be upgraded to a
double outlet 6" x 4" x 2 1 /2" hydrant when the required fire flow
exceeds 1,250
GPM.
2. An upgrade of the fire hydrant will not be required if the required fire
flow is between the minimum requirement of 750 gallons per minute,
up to and including 1,250 gallons per minute, and the existing public
water system will provide the required fire flow through an existing
wharf fire hydrant.
3. All new required fire hydrant installations shall be approved
6" x 4" x 2 1/2" fire hydrants.
4. When water main improvements are required to meet GPM flow,
and the existing water main has single outlet 2 1/2" fire
hydrant(s), then a hydrant(s) upgrade will be required. This
upgrade shall apply regardless of flow requirements.
5. The owner - developer shall be responsible for making the
necessary arrangements with the local water purveyor for the
installation of all public facilities.
6. Approved fire hydrant barricades shall be installed if curbs are not
provided (see Figures 1, 2, and 3 following on pages 11 and 12).
G. Hydrant Specifications
All required public and on -site fire hydrants shall be installed to the
following specifications prior to flow test and acceptance of the system.
1. Hydrants shall be:
a. Installed so that the center line of the lowest outlet is
between 14 and 24 inches above finished grade
b. Installed so that the front of the riser is between 12 and 24
inches behind the curb face
C. Installed with outlets facing the curb at a 45- degree angle to
the curb line if there are double outlet hydrants
d. Similar to the type of construction which conforms to current
A.W.W.A. Standards
D -21
e. Provided with three -foot unobstructed clearance on all sides.
f. Provided with approved plastic caps
g. Painted with two coats of red primer and one coat of traffic
signal yellow for public hydrants and one coat of red for on-
site hydrants, with the exception of the stems and threads
2. Underground shut -off valves are to be located:
a. A minimum distance of 10 feet from the hydrant
b. A maximum distance of 25 feet from the hydrant
Exception: Location can be less than 10 feet when the water
main is already installed and the 10 -foot minimum distance
cannot be satisfied.
3. All new water mains, laterals, gate valves, buries, and riser shall
be a minimum of six inches inside diameter.
4. When sidewalks are contiguous with a curb and are five feet wide
or less, fire hydrants shall be placed immediately behind the
sidewalk. Under no circumstances shall hydrants be more than six
feet from a curb line.
5. The owner - developer shall be responsible for making the
necessary arrangements with the local water purveyor for the
installation of all public facilities.
6. Approved fire hydrant barricades shall be installed if curbs are
not provided (see Figures 1, 2, and 3 following on pages 11 and
12).
D -22
Barricade /Clearance Details
CONCRETE CAP
& BARRICADE POST
CONCRETE FILLED
T MIN. MIN. B' DIA. SCHEDULE 40
STEEL. SEE NOTE Al
CONCRETE
T
4- I4M.
to
Figure 1
Figure 2
ANT
g i
36" p
PLAN
FIRE HYDRANT BARRICADES
(TYPICAL)
D -23
Figure 3
Notes:
1.
2.
3.
4.
5.
6.
7.
8.
Constructed of steel no0ess than four itolies in diameter, six inches if heavy
truck traffic is anticipated, schedule 40 steel and concrete filled.
Posts shall be set not less than three feet deep in a concrete footing of not less
than 15 inches in diameter, with the top of the posts not less than three feet
above ground and not less than three feet from the hydrant
Posts, fences, vehicles, growth, trash storage and other materials or things shall
not be placed or kept near fire hydrants in a manner that would prevent fire
hydrants from being immediately discernible.
If hydrant is to be barricaded, no barricade shall be constructed in front of the
hydrant outlets (Figure 2, shaded area).
The exact location of barricades may be changed by the field inspector during a
field inspection.
The steel pipe above ground shall be painted a minimum of two field coats of
primer.
Two finish coats of "traffic signal yellow" shall be used for fire hydrant
barricades.
Figure 3 shows hydrant hook up during fireground operations. Notice apparatus
(hydra- assist - valve) connected to hydrant and the required area. Figure 3 shows
the importance of not constructing barricades or other obstructions in front of
hydrant outlets.
H. Blue reflective hvdrant markers replacement volic
1. Purpose: To provide information regarding the replacement of
blue reflective hydrant markers, following street construction or
repair work.
a. Fire station personnel shall inform Department of Public
Works Road Construction Inspectors of the importance of
the blue reflective hydrant markers, and encourage them to
D -24
enforce their Department permit requirement, that streets and
roads be returned to their original condition, following
construction or repair work.
b. When street construction or repair work occurs within this
Department's jurisdiction, the nearest Department of Public
Works Permit Office shall be contacted. The location can be
found by searching for the jurisdiction office in the "County
of Los Angeles Telephone Directory" under "Department of
Public Works Road Maintenance Division." The importance
of the blue reflective hydrant markers should be explained,
and the requirement encouraged that the street be returned to
its original condition, by replacing the hydrant markers.
TABLET*
BUILDING SIZE
(First floor area)
Fire Flow* (1) (2)
Duration
Hydrant Spacing
Under 3,000
sq. ft.
1,000 GPM
2 hrs
300 ft
3,000 to 4,999
sq. ft.
1,250 GPM
2 hrs
300 ft
5,000 to 7,999
sq. ft.
1,500 GPM
2 hrs
300 ft
8,000 to 9,999
sq. ft.
2,000 GPM
2 hrs
300 ft
10,000 to 14,999
sq. ft.
2,500 GPM
2 hrs
300 ft
15,000 to 19,999
sq. ft.
3,000 GPM
3 hrs
300 ft
20,000 to 24,999
sq. ft.
3,500 GPM
3 hrs
300 ft
25,000 to 29,999
sq. ft.
4,000 GPM
4 hrs
300 ft
30,000 to 34,999
sq. ft.
4,500 GPM
4 hrs
300 ft
35,000 or more
sq. ft.
5,000 GPM
5 hrs
300 ft
* See applicable footnotes below:
(FIRE FLOWS MEASURED AT 20 POUNDS PER SQUARE INCH
RESIDUAL PRESSURE)
(1) Conditions requiring additional fire flow.
a. Each story above ground level - add 500 GPM per story.
b. Any exposure within 50 feet - add a total of 500 GPM.
C. Any high -rise building (as determined by the jurisdictional building code)
the fire flow shall be a minimum of 3,500 GPM for 3 hours at 20 psi.
d. Any flow may be increased up to 1,000 GPM for a hazardous occupancy.
(2) Reductions in fire flow shall be cumulative for type of construction and a fully
sprinklered building. The following allowances and/or additions may be made to
standard fire flow requirements:
D -25
a. A 25% reduction shall be granted for the following types of construction:
Type I -F.R, Type II -F.R., Type II one -hour, Type II -N, Type III one -hour,
Type III -N, Type IV, Type IV one hour, and Type V one -hour. This
reduction shall be automatic and credited on all projects using these types
of construction. Credit will not be given for Type V -N structures (to a
minimum of 2,000 GPM available fire flow).
b. A 25% reduction shall be granted for fully sprinklered buildings (to a
minimum of 2,000 GPM available fire flow).
C. When determining required fire flows for structures that total 70,000
square feet or greater, such flows shall not be reduced below 3,500 GPM
at 20 psi for three hours.
D -26
EXHIBIT "E"
SMMC ARTICLE 9 (PLANNING AND ZONING)
On file with the City Clerk.
E -1
EXHIBIT "F"
LOCAL HIRING PROGRAM FOR CONSTRUCTION
Local Hiring Policy For Construction. Developer shall implement a local hiring policy
(the "Local Hiring Policy ") for construction of the Project, consistent with the following
guidelines:
Purpose. The purpose of the Local Hiring Policy is to facilitate the employment
by Developer and its contractors at the Project of residents of the City of Santa
Monica (the "Targeted Job Applicants "), and in particular, those residents who
are "Low Income Individuals" (defined below) by ensuring Targeted Job
Applicants are aware of Project construction employment opportunities and have
a fair opportunity to apply and compete for such jobs.
2. Findings.
a. Approximately 73,000- 74,000 individuals work in the City. The City has
a resident labor force of approximately 57,300. However, only about one-
third (32.2 percent) of the City's resident labor force works at jobs located
in the City, with the balance working outside of the City. Consequently, a
significant portion of the City's resident and non - resident work force is
required to commute long distances to find work, causing increased traffic
on state highways, increased pollution, increased use of gas and other
fuels and other serious environmental impacts.
b. Due to their employment outside of the City, many residents of the City
are forced to leave for work very early in the morning and return late in
the evening, often leaving children and teenagers alone and unsupervised
during the hours between school and the parent return from work outside
the area.
C. Absentee parents and unsupervised youth can result in increased problems
for families, communities and the City as a whole, including, but not
limited to, increased crime, more frequent and serious injuries, poor
homework accomplishments, failing grades and increased high school
dropout rates.
d. Of the approximately 45,000 households in the City, thirty percent are
defined as low- income households or lower, with eleven percent of these
households defined as extremely low income and eight percent very low
income. Approximately 7.6% of the City's residents are unemployed.
F -1
e. By ensuring that Targeted Job Applicants are aware of and have a fair
opportunity to compete for Project Construction jobs, this local hiring
policy will facilitate job opportunities to City residents which would
expand the City's employment base and reduce the impacts on the
environment caused by long commuting times to jobs outside the area.
3. Definitions.
a. "Contract" means a contract or other agreement for the providing of any
combination of labor, materials, supplies, and equipment to the
construction of the Project that will result in On -Site Jobs, directly or
indirectly, either pursuant to the terms of such contract or other agreement
or through one or more subcontracts.
b. "Contractor" means a prime contractor, a sub - contractor, or any other
entity that enters into a Contract with Developer for any portion or
component of the work necessary to construct the Project (excluding
architectural, design and other "soft" components of the construction of
the Project).
C. "Low Income Individual" means a resident of the City of Santa Monica
whose household income is no greater than 80% of the Median Income.
d. "Median Income" means the median income for the Los Angeles -Long
Beach Primary Metropolitan Statistical Area, as published from time to
time by the City in connection with its Affordable Housing Production
Program pursuant to SMMC Section 9.56.
e. "On -Site Jobs" means all jobs by a Contractor under a Contract for which
at least fifty percent (50 %) of the work hours for such job requires the
employee to be at the Project site, regardless of whether such job is in the
nature of an employee or an independent contractor. On -Site Jobs shall
not include jobs at the Project site which will be performed by the
Contractor's established work crew who have not been hired specifically
to work at the Project site.
4. Priority for Targeted Job Applicants. Subject to Section 7 below in this
Exhibit "F -I," the Local Hiring Policy provides that the Targeted Job Applicants
shall be considered for each On -Site Job in the following order of priority:
a. First Priority: Any resident of a household with no greater than 80%
Median Income that resides within the Low and Moderate Income Areas
identified in Figure 3 -12 of the City of Santa Monica's 2013 -2021
Housing Element;
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b. Second Priority: Any resident of a household with no greater than 80%
Median Income that resides within the City; and
C. Third Priority: Any resident of a household with no greater than 80%
Median Income that resides within a five (5) mile radius of the project site.
5. Coverage. The Local Hiring Policy shall apply to all hiring for On -Site Jobs
related to the construction of the Project, by Developer and its Contractors.
6. Outreach. So that Targeted Job Applicants are made aware of the availability of
On -Site Jobs, Developer or its Contractors shall advertise available On -Site Jobs
in the Santa Monica Daily Press or similar local media and /or electronically on a
city- sponsored website, if such a resource exists. In addition, Developer shall
consult with and provide written notice to at least two first source hiring
organizations, which may include but are not limited to the following:
a. Local first source hiring programs
b. Trade unions
c. Apprenticeship programs at local colleges
d. Santa Monica educational institutions
e. Other non - profit organizations involved in referring eligible applicants for
job opportunities
Hiring. Developer and its contractor(s) shall consider in good faith all
applications submitted by Targeted Job Applicants for On -Site Jobs in accordance
with their normal practice to hire the most qualified candidate for each position
and shall make a good faith effort to hire Targeted Job Applicants when most
qualified or equally qualified as other applicants. The City acknowledges that the
Contractors shall determine in their respective subjective business judgment
whether any particular Targeted Job Applicant is qualified to perform the On -Site
Job for which such Targeted Job Applicant has applied. Contractors are not
precluded from advertising regionally or nationally for employees in addition to
its local outreach efforts.
8. Term. The Local Hiring Policy shall continue to apply to the construction of the
Project until the final certificate of occupancy for the Project has been issued by
the City.
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EXHIBIT "G"
CONSTRUCTION MITIGATION OBLIGATIONS
Construction Period Mitigation
1. A construction period mitigation plan shall be prepared by the applicant for
approval by the following City departments prior to issuance of a building permit:
PWD; Fire; Planning and Community Development; and Police. The approved
mitigation plan shall be posted on the site for the duration of the project
construction and shall be produced upon request. As applicable, this plan shall:
a. Specify the names, addresses, telephone numbers and business license
numbers of all contractors and subcontractors as well as the developer and
architect;
b. Indicate where any cranes are to be located for erection/construction;
C. Describe how much of the public street, alleyway, or sidewalk is proposed
to be used in conjunction with construction;
d. Set forth the extent and nature of any pile- driving operations;
e. Describe the length and number of any tiebacks which must extend under
the public right -of -way and other private properties;
f. Specify the nature and extent of any dewatering and its effect on any
adjacent buildings;
g. Describe anticipated construction- related truck routes, number of hock
trips, hours of hauling and parking location;
h. Specify the nature and extent of any helicopter hauling;
i. State whether any construction activity beyond normally permitted hours
is proposed;
j. Describe any proposed construction noise mitigation measures, including
measures to limit the duration of idling construction trucks;
k. Describe construction - period security measures including any fencing,
lighting, and security personnel;
1. Provide a grading and drainage plan;
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m. Provide a construction - period parking plan which shall minimize use of
public streets for parking;
n. List a designated on -site construction manager;
o. Provide a construction materials recycling plan which seeks to maximize
the reuse /recycling of construction waste;
P. Provide a plan regarding use of recycled and low- environmental- impact
materials in building construction; and
q. Provide a construction period urban runoff control plan.
Ongoing Requirements throughout the Period of Construction
2. The following requirements shall be maintained throughout the period of the
Project's construction:
a. A detailed traffic control plan for work zones shall be maintained which
includes at a minimum accurate existing and proposed: parking and travel
lane configurations; warning, regulatory, guide and directional signage;
and area sidewalks, bicycle lanes and parking lanes. The plan shall include
specific information regarding the project's construction activities that
may disrupt normal pedestrian and traffic flow and the measures to
address these disruptions. Such plans must be reviewed and approved by
the Transportation Management Division prior to commencement of
construction and implemented in accordance with this approval.
b. Work within the public right -of -way shall be performed between 9:00 AM
and 4:00 PM, including: dirt and demolition material hauling and
construction material delivery. Work within the public right -of -way
outside of these hours shall only be allowed after the issuance of an after -
hours construction permit.
C. Streets and equipment shall be cleaned in accordance with established
PWD requirements.
d. Trucks shall only travel on a City approved construction route. Truck
queuing/staging shall not be allowed on Santa Monica streets. Limited
queuing may occur on the construction site itself.
e. Materials and equipment shall be minimally visible to the public; the
preferred location for materials is to be on -site, with a minimum amount
of materials within a work area in the public right -of -way, subject to a
current Use of Public Property Permit.
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£ Any requests for work before or after normal construction hours within the
public right -of -way shall be subject to review and .approval through the
After Hours Permit process administered by the Building and Safety
Division.
g. Off - street parking shall be provided for construction workers. This may
include the use of a remote location with shuttle transport to the site, if
determined necessary by the City of Santa Monica.
Project Coordination Elements That Shall Be Implemented Prior To
Commencement of Construction
3. Developer shall implement the following measures before construction is
commenced:
a. The traveling public shall be advised of impending construction activities
(e.g. information signs, portable message signs, media listing /notification,
implementation of an approved traffic control plan).
b. Any construction work requiring encroachment into public rights -of -way,
detours or any other work within the public right -of -way shall require
approval from the City through issuance of a Use of Public Property
Permit, Excavation Permit, Sewer Permit or Oversize Load Permit, as well
as any Caltrans Permits required.
C. Timely notification of construction schedules shall be given to all affected
agencies (e.g., Big Blue Bus, Police Department, Fire Department,
Department of Public Works, and Planning and Community Development
Department) and to all owners and residential and commercial tenants of
property within a radius of 1000 feet.
d. Construction work shall be coordinated with affected agencies in advance
of start of work. Approvals may take up to two weeks per each submittal.
e. The Strategic Transportation Planning Division shall approve of any haul
routes, for earth, concrete or construction materials and equipment
hauling.
Air Quality
4. Dust generated by the development activities shall be kept to a minimum with a
goal of retaining dust on the site through implementation of the following
measures recommended by the SCAQMD Rule 403 Handbook:
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a. During clearing, grading, earth moving, excavation, or transportation of
cut or fill materials, water trucks or sprinkler systems are to be used to the
extent necessary to prevent dust from leaving the site and to create a crust
after each day's activities cease.
b. All material excavated or graded shall be sufficiently watered to prevent
excessive amounts of dust. Watering shall occur at least three times daily
with complete coverage, preferably at the start of the day, in the late
morning, and after work is done for the day.
C. All active portions of the construction site shall be sufficiently watered
three times a day to prevent excessive amounts of dust.
d. Vehicles hauling dirt or other construction debris from the site shall cover
any open load with a tarpaulin or other secure covering to minimize dust
emissions. Install wheel washers where vehicles enter and exit the
construction site onto paved roads or wash off trucks and any equipment
leaving the site each trip. Immediately after commencing dirt removal
from the site, the general contractor shall provide the City with written
certification that all trucks leaving the site are covered in accordance with
this condition of approval.
e. During clearing, grading, earth moving, excavation, or transportation of
cut or fill materials, streets and sidewalks within 150 feet of the site
perimeter shall be swept and cleaned a minimum of twice weekly or as
frequently as required by the PWD.
f During construction, water trucks or sprinkler systems shall be used to
keep all areas of vehicle movement damp enough to prevent dust from
leaving the site. At a minimum, this would include wetting down such
areas in the later morning and after work is completed for the day and
whenever wind exceeds 15 miles per hour.
g. Soil stockpiles shall be covered, kept moist, or treated with soil binders to
prevent dust generation.
h. Cease all grading, earth moving or excavation activities during periods of
high winds (i.e., greater than 20 mph measured as instantaneous wind
gusts) so as to prevent excessive amounts of dust. Securely cover all
material transported on and off -site to prevent excessive amounts of dust.
i. Limit on -site vehicle speeds to 15 mph.
j. Sweep streets at the end of the day using SCAQMD Rule 1186 certified
street sweepers or roadway trucks if visible soil is carried onto adjacent
public paved roads (recommend water sweepers with reclaimed water).
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k. Appoint a construction relations officer to act as a community liaison
concerning on -site construction activity including resolution of issues
related to PM10 generation.
5. Construction equipment used on the site shall meet the following conditions in
order to minimize NOx and ROC emissions:
a. Diesel - powered equipment such as booster pumps or generators should be
replaced by electric equipment to the extent feasible; and
b. The operation of heavy -duty construction equipment shall be limited to no
more than 5 pieces of equipment at one time.
C. Developer shall ensure that architectural coatings used on the Project
comply with SCAQMD Rule 1113, which limits the VOC content or
architectural coatings.
Noise Attenuation
6. All diesel equipment shall be operated with closed engine doors and shall be
equipped with factory - recommended mufflers.
7. Electrical power shall be used to run air compressors and similar power tools.
8. For all noise - generating activity on the project site associated with the installation
of new facilities, additional noise attenuation techniques shall be employed to
reduce noise levels to City of Santa Monica noise standards. Such techniques
may include, but are not limited to, the use of sound blankets on noise generating
equipment and the construction of temporary sound barriers between construction
sites and nearby sensitive receptors.
9. Pile driving, excavation, foundation - laying, and conditioning activities (the
noisiest phases of construction) shall be restricted to between the hours of 10:00
AM and 3:00 PM, Monday through Friday, in accordance with Section
4.12.110(d) of the Santa Monica Municipal Code.
10. For all noise generating construction activity on the project site, additional noise
attenuation techniques shall be employed to reduce noise levels at to 83 dB or less
from 8:00 to 6:00 PM weekdays and 9:00 AM to 5:00 PM Saturdays. Per the
Noise Ordinance, construction noise may exceed 83 dB if it only occurs between
10:00 AM and 3:00 PM. Such techniques may include, but are not limited to, the
use of sound blankets on noise generating equipment and the construction of
temporary sound barriers around the perimeter of the project construction site.
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Construction Period
11. Any construction related activity in the public right -of -way will be required to
acquire the approvals by the City of Santa Monica, including but not limited to:
Use of Public Property Permits, Sewer Permits, Excavation Permits, Alley
Closure Permits, Street Closure Permits, and Temporary Traffic Control Plans.
12. During construction, a security fence eight feet in height shall be maintained
around the perimeter of the lot. The lot shall be kept clear of all trash, weeds, etc.
13. Vehicles hauling dirt or other construction debris from the site shall cover any
open load with a tarpaulin or other secure covering to minimize dust emissions.
Immediately after commencing dirt removal from the site, the general contractor
shall provide the City of Santa Monica with written certification that all trucks
leaving the site are covered in accordance with this condition of approval.
14. Developer shall prepare a notice, subject to the review by the Director of Planning
and Community Development, that lists all construction mitigation requirements,
permitted hours of construction, and identifies a contact person at City Hall as
well as the developer who will respond to complaints related to the proposed
construction. The notice shall be mailed to property owners and residents of the
neighborhood within 1000 feet of the Project at least five (5) days prior to the
start of construction.
15. A sign shall be posted on the property in a manner consistent with the public
hearing sign requirements which shall identify the address and phone number of
the owner and /or applicant for the purposes of responding to questions and
complaints during the construction period. Said sign shall also indicate the hours
of permissible construction work.
16. A copy of these conditions shall be posted in an easily visible and accessible
location at all times during construction at the project site. The pages shall be
laminated or otherwise protected to ensure durability of the copy.
17. No construction - related vehicles may be parked on the street at any time or on the
subject site during periods of peak parking demand. For the duration of
construction, all construction- related vehicles must be parked for storage purposes
either on -site or at on offsite location on a private lot. The offsite location shall be
approved as part of the Department of Environmental and Public Works review of
the construction period mitigation plan and by the Department of City Planning if
a Temporary Use Permit is required.
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18. In accordance with Municipal Code Section 4.12.120, the project applicant shall
be required to post a sign informing all workers and subcontractors of the time
restrictions for construction activities. The sign shall also include the City
telephone numbers where violations can be reported and complaints associated
with construction noise can be submitted. Construction period signage shall be
subject to the approval of the Architectural Review Board.
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EXHIBIT "H"
[Reserved]
H -1
EXHIBIT "I"
ASSIGNMENT AND ASSUMPTION AGREEMENT
Recording Requested By and
When Recorded Mail To:
HARDING LARMORE KUTCHER & KOZAL, LLP
1250 6th Street, Suite 200
Santa Monica, CA 90401
Attn: Kevin V. Kozal
ASSIGNMENT AND ASSUMPTION AGREEMENT
This ASSIGNMENT AND ASSUMPTION AGREEMENT ( "Agreement ") is made and
entered into by and between , a
( "Assignor "), and
( "Assignee ").
RECITALS
A. The City of Santa Monica ( "City ") and Assignor entered into that certain
Development Agreement dated , 2014 (the "Development Agreement "), with
respect to the real property located in the City of Santa Monica, State of California more
particularly described in Exhibit "A" attached hereto (the "Project Site ").
B. City has granted certain development approvals and permits with respect
to the development of the Project Site, including without limitation, approval of the
Development Agreement for the Project Site (collectively, the "Project Approvals ").
C. Assignor intends to sell, and Assignee intends to purchase, the Project
Site.
D. In connection with such purchase and sale, Assignor desires to transfer all
of the Assignor's right, title, and interest in and to the Development Agreement and the Project
Approvals with respect to the Project Site. Assignee desires to accept such assignment from
Assignor and assume the obligations of Assignor under the Development Agreement and the
Project Approvals with respect to the Project Site.
THEREFORE, the parties agree as follows:
I -1
DevAgmt (draft 10.23.14)
I . Assignment. Assignor hereby assigns and transfers to Assignee all of
Assignor's right, title, and interest in and to the Development Agreement and the Project
Approvals with respect to the Project Site. Assignee hereby accepts such assignment from
Assignor.
2. Assumption. Assignee expressly assumes and agrees to keep, perform,
and fulfill all the terms, conditions, covenants, and obligations required to be kept, performed,
and fulfilled by Assignor under the Development Agreement and the Project Approvals with
respect to the Project Site.
3. Effective Date. The execution by City of the attached receipt for this Agreement
shall be considered as conclusive proof of delivery of this Agreement and of the assignment and
assumption contained herein. This Agreement shall be effective upon its recordation in the
Official Records of Los Angeles County, California, provided that Assignee has closed the
purchase and sale transaction and acquired legal title to the Project Site.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the dates set forth next to their signatures below.
"ASSIGNOR"
"ASSIGNEE"
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RECEIPT BY CITY
The attached ASSIGNMENT AND ASSUMPTION AGREEMENT is received
by the City of Santa Monica on this day of
CITY OF SANTA MONICA
IC
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Planning Director