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SR 01-26-2016 8E City Council Report City Council Regular and Special Joint Meeting: January 26, 2016 Agenda Item: 8.E 1 of 53 To: Mayor and City Council From: David Martin, Director, Planning and Community Development, Planning Commission Agenda (PCD) Subject: Annual Development Agreement Compliance Review Recommended Action Staff recommends that the City Council: 1) Review the status of Development Agreement compliance 2) Determine good faith compliance for those that are in compliance Executive Summary This report provides an annual summary of the status of compliance for each of the 31 Development Agreements that are currently in effect and subject to annual compliance report submittals. Council reviewed the status of Development Agreement compliance most recently at its January 27, 2015 meeting. This year’s summary includes review of all 19 completed projects, five projects that are under construction, and the status of the remaining seven Agreements where construction has not commenced. Attachment “A” to this staff report provides a summary of the Transportation Demand Management (TDM) Program requirements that have been imposed on new and amended Development Agreements since 2010. Based on staff’s review of each of the 19 projects already built and the annual reports submitted by the developers or successors-in-interest to demonstrate good faith compliance, staff recommends Council determine that 18 of these Agreements are in good faith compliance with requirements specified for each property. As discussed more fully in this report, compliance for one completed project is still under review and staff will provide a report to Council on this property during the second quarter of 2016. This report also summarizes staff’s work with three other properties that are, consistent with development agreement requirements, implementing additional transportation demand management measures to achieve the numeric peak-hour Average Vehicle Ridership (AVR) targets identified in each Agreement. Staff will continue its ongoing and annual review of compliance reports for each Agreement submitted by the developers or successors-in-interest to demonstrate good faith compliance. The next annual report to Council for all Development Agreements 2 of 53 subject to annual compliance reporting is scheduled for January 2017. Background Chapter 9.48 of the Municipal Code (recodified as Chapter 9.60) establishes the processes and requirements for the City to enter into a Development Agreement. One of the provisions is annual review by the City Council of each approved Development Agreement to determine good faith compliance with the terms and condition s of the Agreements. Since the passage of this ordinance in 1982, 31 Development Agreements have been enacted that are still in effect. Each Development Agreement contains unique time frames, obligations, and requirements. The obligations can be one-time or ongoing; some are fees, some are actual physical improvements, and some are ongoing services. The 31 Development Agreements monitored by the Planning and Community Development (PCD) Department are listed below and include five properties under construction and seven properties where construction has not yet commenced. This includes three projects approved since Council’s last annual review of Development Agreement compliance in January 2015: 1415 5th Street, 1560 Lincoln Boulevard, and 1601 Lincoln Boulevard. All three are mixed-use commercial/residential projects in the Downtown District. PCD staff works closely with other City departments and divisions to confirm compliance with agreement terms that fit within those departments’ areas of expertis e. For example, Housing and Economic Development performs the annual compliance review of affordable housing obligations in Agreements and Community and Cultural Services performs the annual compliance review of child care program obligations. Development Agreements (31) Good Faith Compliance (18) Staff Review Pending (1) Under Construction (5) Construction Has Not Commenced (7) 2401-2525 Colorado Avenue - Colorado Place II & II (Colorado Center) (1981) • 1541 Ocean Ave - Paseo Del Mar (1982) • 2700 Colorado Ave - National Medical Enterprise (Viacom) (1982) • 530 Pico Blvd - Bayview CA Unlimited Partnership (Le Meridien Delfina) (1983) • 3 of 53 Development Agreements (31) Good Faith Compliance (18) Staff Review Pending (1) Under Construction (5) Construction Has Not Commenced (7) 2000-2200 Colorado Ave - Arboretum (AO Santa Monica) (1987) • 1620 26th Street & 2425 Olympic Blvd - Water Garden (1988) • 1733 Ocean Ave - Maguire Thomas (1990) • 2221 Santa Monica Blvd - Providence Saint John’s Health Center (1998) • 1776 Main Street - Rand (2000) • 3030 Olympic Blvd - Lantana East (2004) • 3030 Olympic Blvd - Lantana South (2004) • 1725 Ocean Ave - The Village (2008) • 725 California Avenue - Saint Monica’s Catholic Community (2010) • 1800 Stewart St - Agensys (2010) • 2834 Colorado Avenue - Colorado Creative Studios (2011) • 702 Arizona Avenue (2011) • 1317 7th Street (2011) • 401 Broadway (2011) • 710 Wilshire Boulevard (2012) • 1548 6th Street (2012) • 2930 Colorado Avenue (2013) • 1318 2nd Street (2013) • 1731 20th Street - Crossroads School (2013) • 1554 5th Street - Courtyard by Marriott (2013) • 501 Colorado Avenue - Hampton Inn & Suites (2013) • 315 Colorado Avenue - Arclight Cinemas at Santa Monica Place (2014) • 1402 Santa Monica Blvd - Mini Automobile Dealership (2014) • 1112-1122 Pico Blvd (2014) • 1415 5th Street (2015) • 1560 Lincoln Blvd (2015) • 1601 Lincoln Blvd (2016) • 1333-1337 Ocean Avenue - Hill Street Partners III (2007) Expired in 2012 1900 Pico Blvd - Santa Monica College Parking & Pool (1989) Expired in 2014 As explained in the compliance reports submitted to Council in 2010-2015, there are also five very early Development Agreements: Lincoln Property/Phase II of the Ocean Park Redevelopment Area 1426 California Avenue 2823-2825 Santa Monica Boulevard 1040 4th Street (Dorchester) 701 Santa Monica Boulevard In general, these early Development Agreements required certain street improvements and, in some cases, the payment of fees. For example, the Agreement for 701 Santa 4 of 53 Monica Boulevard required the payment of an Arts and Social Service Fee and an In - Lieu Housing Fee. Such fee obligations were satisfied when the projects were completed. Thus, compliance and monitoring have not, in general, been an issue. The Dorchester, which was one of the City’s earliest efforts to create affordable housing, is the only project in the City that includes affordable units that are condominiums, instead of apartments. The model proved to be problematic in several ways. There were problems with recordation and notification of the affordability requirement. Some of the unit owners purchased intending to live there themselves or house a family member. Many purchased with arguably insufficient notice of the restrictions. Most had no experience in property management, much less the management and financing of a lone affordable unit. For the Housing Division’s monitoring period in 2015 of the fifteen units, ten of the owners filed compliance reports pursuant to the Development Agreement. Four of the un accounted units are part of settlement agreements with the City, and the matter of the remaining unit has been referred to the City Attorney’s office. Discussion As noted above, as a result of staff’s review of all 31 Development Agreements subject to compliance reporting, 18 of the 19 constructed projects have been determined to be in good faith compliance. This report summarizes all Agreements where annual compliance reports have been submitted for the current review period, and provides a brief status update on the projects under construction, those properties where construction has not yet commenced, and the one property that is still under staff review. Once City review is completed for this remaining property, a recommendation regarding the status of compliance will be provided to Council during the second quarter of 2016. Attachment “A” to this report also provides a summary of TDM program measures that have been incorporated in newly-approved or amended Development Agreements since 2010 in conjunction with the City’s Land Use and Circulation Element (LUCE) implementation. 5 of 53 Recommend Finding of Good Faith Compliance: Completed Projects Colorado Place I & II (Colorado Center) 2500 Broadway and 2501 Colorado Avenue Agreement Effective: 10/27/1981 Expires: 9/15/2036 Amended: 4/1984; 7/1984; 5/1985; 12/1987; 6/2011 Reporting Period: 10/27/2014 to 10/27/2015 Good Faith Compliance Confirmed The project was approved for approximately 900,000 SF of office uses along with a daycare center, park, health club, food services and community rooms. Building heights range from 65’ to 80’. On-site parking structures currently contain 3,085 parking spaces. Community Benefits Summary Child care center (Hill ‘N Dale) Public park with tennis courts, children’s play structure, basketball court, and public gathering space 51 units of affordable housing located off -site which per an agreement between the City Housing Authority and the County, are monitored by the County and a contribution of $2,652,909 to the City’s Affordable Housing fund Community rooms open to the public and available free of charge for community & neighborhood groups Nearly $3 million worth of art and social service benefits through Park & Community room maintenance TDM Program (enhanced by Amendment No. 5) Off-site traffic signal, street lighting, and turn lane improvements Status of Compliance The required annual compliance report for Colorado Center was received from Equity Office on October 27, 2015. The property owner is in good faith compliance with all Development Agreement fee payments and community benefits associated with requirements in effect during the October 2014 to October 2015 reporting period. 6 of 53 The property owner has undertaken the enhanced Transportation Demand Management Program that was approved by Council on June 28, 2011 as a requirement of the Fifth Amendment to the Development Agreement that permits leasing of up to 1,035 parking spaces to off -site parties. Some of these measures include implementing a Transportation Management Association that serves all employers on site, establishing baseline Average Vehicle Ridership data for the entire site by conducting transit surveys and collecting data from both large and small employers, creating a transit/rideshare information center and website, and increasing on-site bicycle parking. The Fifth Amendment identifies a 1.5 Average Vehicle Ridership (AVR) target for both the a.m. and p.m. peak periods starting in November 2013. The amended Colorado Center Development Agreement specifies that the 1.5 AVR during the peak-periods is a target, rather than a requirement. Per the amended Development Agreement, the owner’s inability to achieve the AVR target for the peak periods shall not constitute a default within the meaning of the Agreement, provided that the owner is taking all reasonable and feasible steps to meet these targets, including implementing additional transportation demand management measures designed to achieve these stipulated AVR targets. Colorado Center management collects survey data for both large and small employers to determine its site-wide average vehicle ridership during the a.m. and p.m. peak periods. This expanded survey effort includes employers with more than 50 employees, as well as employers with fewer than 50 employees; the latter are not currently required to perform employee trip surveys per the City’s Trip Reduction Ordinance. The combined survey data for all Colorado Center employers in September 2015 yielded a 1.27 AVR during the a.m. peak period and a 1.26 AVR during the p.m. peak period. Though the site has not yet reached its AVR targets, and these results reflect a decline over the data collected from the 2014 reporting period, a number of new measures were implemented over the past year. Efforts to increase average vehicle ridership for all employees at Colorado Center during the past year centered on implementation of additional TDM measures required by the City starting in early 2015. 7 of 53 Colorado Center significantly expanded its “Evolve Your Commute” marketing plan to all tenants to promote alternative modes of transportation and car/vanpools to and from the property. The marketing plan reaches small and large tenants with weekly, monthly, and quarterly communications via newsletter, website, and social media. The topics include rideshare promotional events, bike-to-work and other commute challenges, and trip planning assistance and coordination. Colorado Center’s Transportation Coordinator works with CommuteSM (Ride Amigos) and VRide to assist tenants and employees in forming new vanpools and in filling vacant seats in existing vans with Water Garden, a neighboring commercial property. In summer 2015, Colorado Center launched its own Zagster Bikeshare Program for free use by all Colorado Center tenant employees. Equity Office also contracts with Zipcar and provides two car-share vehicles and parking on site for use by both members of the public Colorado Center tenants. To address this year’s survey results, staff met with Equity Office on December 16, 2015 to discuss new single-occupancy vehicle trip reduction measures to implement at Colorado Center during the next reporting cycle. In order to achieve the property’s AVR targets, additional incentives and trip reduction measures are necessary. These measures build on Equity Office’s 2015 plan improvements and focus on the following: Increase number of rideshare/bicycle/commuter events and challenges hosted by Colorado Center for all tenants Purchase, install, and maintain real-time transit arrival/departure information screens Continue outreach with individual tenants’ transportation coordinators and contacts and join the Citywide Transportation Management Organization when formed later this year Develop, in consultation with City staff, a comprehensive transit information packet and outreach plan specifically for new tenants as vacant office spaces are leased at Colorado Center Host Expo Light Rail information/outreach meetings for tenants with a Metro representative in conjunction with the Expo Light Rail line opening 8 of 53 Equity Office will be required to update and expand its TDM plan by the end of February 2016, subject to approval by the Planning Director. Implementation will begin immediately thereafter through Colorado Center’s site-wide Transportation Management Association and Transportation Coordinator. City staff will continue its bimonthly discussions with Equity Office to monitor TDM plan implementation over the next calendar year. In accordance with the Fifth Amendment, the property owner held its sixth annual community meeting on September 16, 2015 to discuss Development Agreement compliance with residents in the vicinity of the project site. Ten members of the public attended. The ownership will continue to collaborate with Santa Monica Mid-City Neighbors on annual community events that may be hosted at the property. Mid -City Neighbors worked with Equity Office and held its second annual Make Music Day at the Colorado Center park on June 21, 2015. Paseo Del Mar 1541 Ocean Avenue Agreement Effective: 1/26/1982 Expires: 10/1/2031 Reporting Period: 1/26/2015 to 1/26/2016 Good Faith Compliance Confirmed The project consists of approximately 54,000 SF in two buildings ranging in height from 28 to 36 feet. Uses include restaurant, office, retail, and 10 units of low, median, and moderate income housing. The subterranean parking garage contains 72 spaces. Community Benefits Summary 10 deed-restricted affordable housing units at a prime oceanfront loca tion $75,000 Art and Social Service fee or in-kind provision of art on-site Parking, Carpool, and Transit Incentive Program 9 of 53 Status of Compliance The required annual compliance report was received by Planning staff with additional annual documentation provided to the Housing and Economic Development Department as part of its work performed to confirm compliance with inclusionary housing obligations. Both Planning and Housing Division staff reviewed the information for the 2015 reporting period and verified that the property owner is in good faith compliance with Agreement requirements, including affordable housing obligations. National Medical Enterprise (Viacom) 2700 Colorado Avenue Agreement Effective: 4/16/1982 Expires: 4/16/2037 Amended: 1/1987; 4/1987; 5/1988 Reporting Period: 4/16/2014 to 4/16/2015 Good Faith Compliance Confirmed The project consists of a five-story, 312,000 square foot building with creative offices. The site also contains a child care center, a public park, and a 1,000 space subterranean parking garage. Community Benefits Summary Provision of 30 affordable rental units, later amended to require the payment of a $1,500,000 in lieu fee On-site child care center Payment of $25,000 to Santa Monica Arts Foundation Park of approximately 7,200 square feet to be open to the public during reasonable hours Status of Compliance The required annual compliance report was received in April 2015. Staff has verified compliance with all Development Agreement requirements for the 2014-2015 reporting period. In addition, the child care facility has continued their outreach efforts by hosting 10 of 53 an open house for tenant employees to ensure the facility continues to provide child care programming that meets the needs of children of employees who work at the project site. Accordingly, staff’s review of the Agreement indicates that the property is in good faith compliance with all requirements. Bayview CA Unlimited Partnership (Le Meridien Delfina Hotel) 530 Pico Boulevard Agreement Effective: 6/29/1983 Expires: 12/1/2022 Reporting period: 6/29/2014 to 6/29/2015 Good Faith Compliance Confirmed This Agreement allowed for the 72,400 square foot expansion of an existing Holiday Inn hotel. The development included the addition of 134 hotel rooms and 282 parking spaces. The hotel is currently operated by the Le Meridien Delfina. Community Benefits Summary Hiring priority to Ocean Park and Pico neighborhood residents, and then to other City residents Job Training Program, with priority given to Santa Monica High School Students and City residents (requirement expired in 2011) Hotel Room Voucher Program (requirement expired in 1996) Free Hotel Parking with sign denoting this in parking area Valet parking tipping prohibition with sign denoting this in parking area Relocation of on-site, rent-controlled apartment buildings (five of these units were subsequently converted through the TORCA process) $50,000 annual contribution to the Big Blue Bus for the Tide Shuttle operation (expired in 2011) Six rent controlled units added to the existing building at 1920 6 th Street Installation of public art piece approved by the Arts Commission 11 of 53 Status of Compliance The required annual compliance report was received on October 23, 2015. Staff has reviewed the annual report and determined that the property owner is in good faith compliance with all reporting year requirements, including provisions addressing operational requirements, community benefits, and fees. During the reporting year, the hotel continued its commitment to both its Job Training Program and local employment recruitment goal through partnerships and outreach with organizations such as Santa Monica High School, Santa Monica College, the Art Institute of California (Culinary School), and the Santa Monica Chamber of Commerce. This year, Le Meridien Delfina participated in the Santa Monica College Job Fair and implemented its own colleague referral program by providing incentives to current employees for referring new employees who are Santa Monica residents. There are currently a total of eleven Santa Monica residents employed by the hotel (as of Fall 2015) compared to eight employees as noted in the 2013 Council report. Arboretum - Previously Colorado Place III (AO Santa Monica) 2000-2200 Colorado Avenue Agreement Effective: 12/16/1987 Expires: 1/1/2042 Amended: 12/1988; 2/1995 Reporting Period: 12/16/2014 to 12/16/2015 Good Faith Compliance Confirmed This Development Agreement involves the construction of Phase III of Colorado Place, a 12.7 acre parcel located on Colorado Avenue. The Agreement initially allowed for the construction of 1,040,490 square feet of floor area, with a Floor Area Ratio of 1.85, and allowed 25,000 square feet of restaurant space, 10,000 square feet of retail, 35,000 square feet medical office, 20,000 square feet for banks, up to 720,490 square feet for commercial office space, a 270,000 square foot hotel, and 60,000 square feet for a health club. However, subsequent modifications to the Development Agreement removed the hotel as a permitted use, and allowed for a general market/grocery use 12 of 53 (not to exceed 50,000 square feet), and multi-family residential development that includes 97 affordable units. Community Benefits Summary TDM Program/Traffic Emission Abatement Program $721,318 Housing Parks Mitigation Fee $5,000,000 Traffic Improvement Fee On-site art installation $250,000 child care contribution Status of Compliance The property owner’s annual compliance report was submitted on December 2, 2015. After reviewing Agreement terms and all of the supporting documentation provided to the City, staff has determined that the Arboretum is in good faith compliance with Development Agreement fee payments, remaining community benefits, and operational requirements. Housing and Economic Development Department staff monitors the property’s compliance with affordable housing requirements and confirmed that the property is in compliance with its inclusionary housing obligations. Water Garden 1620 26th Street and 2425 Olympic Boulevard Agreement Effective: 3/23/1988 Expires: 3/23/2043 Reporting Period: 3/23/2014 to 3/23/2015 Good Faith Compliance Confirmed The project was constructed in two phases and consists of four, six-story buildings, totaling approximately 1,259,577 SF. The development contains commercial office, medical office, retail space, restaurants, health club, child care facility, and subterranean parking for 4,035 vehicles. The development also includes an open space area and man-made lake. 13 of 53 Community Benefits Summary $3,811,307 Housing and Parks Mitigation Fee payment On-site child care facility for 54 children $6,408,486 Traffic Improvement Fee payment Annual preferential Parking District fee payment to cover pe rmit and district administration costs $150,000 fee payment to the Santa Monica Arts Foundation $300,000 fee payment to the City for homeless services Status of Compliance After reviewing Agreement terms and all supporting documentation provided to the City on September 28, 2015, staff has determined that the Water Garden is in compliance with all Agreement fee payments, community benefits, and operational requirements. On November 17, 2014, the Architectural Review Board (ARB) approved plans to update and modernize the property grounds and sign program for the existing office building complex. The proposal included a reduction in the size of the existing water feature and redesign of the exterior space to improve the property’s park-like setting and provide more connection to the adjacent 26 th Street/Bergamot Expo Light Rail Station. The ARB approved new landscape plans, hardscape and paving, exterior lighting, open air pavilions, amenity and recreation areas, reconfigured pedestrian drop - off zone, and an updated sign program for the office complex. All work was confirmed to be in good faith compliance with Development Agreement requirements. These site improvements are currently under construction. Maguire Thomas 1733 Ocean Avenue Agreement Effective: 10/18/1990 Expires: 10/18/2045 Amended: 12/1995 Reporting Period: 07/01/2014 to 07/01/2015 Good Faith Compliance Confirmed 14 of 53 The Agreement for the property at 1733 Ocean Avenue authorizes construction of a four-story, 56 foot tall commercial development. It allows for a 68,040 square foot building, including a maximum 5,983 square foot/250 seat restaurant and a maximum of 8,040 square feet of retail space. Three levels of subterranean parking provide 267 parking spaces. Community Benefits Summary $250,000 contribution to the Civic Center/Oceanfront Improvement Special Fund $403,399 Housing and Parks Impact Mitigation Fee $820,854 Affordable Lodging Mitigation Fee Status of Compliance City staff received the annual Development Agreement Monito ring Report from the property owner on September 9, 2015. Based on staff’s review of the Agreement and a staff site visit, the property is in good faith compliance with the provisions of its Development Agreement. Providence Saint John’s Health Center 1328 22nd Street / 2121 Santa Monica Blvd Agreement Effective: 7/9/1998 Amended: 7/12/2011 Expires: 7/9/2053 Reporting Period: 1/1/2014 to 12/31/2014 Good Faith Compliance Confirmed Project Summary: Phase One As amended in July 2011, the Saint John’s Health Center Development Agreement grants approval for construction of new hospital facilities that would occur in two phases. Phase One consists of vested rights, subject to extension, for the construction of a new 475,000 square foot hospital and was completed by the end of the Phase One vesting period on January 31, 2014: 15 of 53 Below-grade central plant Inpatient Center (205,000 SF & maximum height of 75 feet) Outpatient and Diagnostic & Treatment Center (265,000 SF & maximum height of 58 feet) with ambulance entrance and North Lawn Provide on- and off-site parking to meet peak facility demand and construct an Entry Plaza on Santa Monica Boulevard Project Summary: Phase Two Phase Two has a 17-year vested rights term until July 2015, subject to extension and requirements for timely submittal of certain applications to maintain vested rights beyond the July 2015 term, to implement a Phase Two South Campus health center master plan with sufficient floor area for health care-related uses and parking as outlined in the Agreement. Consistent with Development Agreement requirements, applications for a South Campus Master Plan and Development Review Permits for associated buildings were timely submitted prior to the Phase Two vesting deadline in July 2015 as outlined below: Up to 799,000 SF of Phase Two development authorized by the original Development Agreement approved in July 1998 o Up to 396,500 SF on South Campus and 402,500 SF on North Campus All Phase Two buildings on the north and south camp uses require City review and approval of Development Review (DR) Permit Applications CEQA environmental review is required for Phase Two development South Campus Master Plan Application filed on 2/5/2015 o Process: Review by Planning Commission or Council on appeal DR Permit Applications for eight Phase Two buildings filed on 3/31/2015 o Process: Review by Planning Commission or Council on appeal Development Agreement Amendment Application filed on 3/31/2015 o Process: Review by Planning Commission; Council approval required Request to amend Development Agreement: Allow more time to obtain building permits for each of the eight Phase Two buildings; modify existing entry plaza design in response to staff comments to improve Phase Two vehicle circulation Proposed time frames to obtain building permits would be established 16 of 53 with the DR Permits for each of the eight buildings Requested time frames range from 21 months to 233 months following approval of the associated South Campus Master Plan and DR Permits Phase Two Process First applicant-hosted community meeting held on July 30, 2015 Planning Commission and City Council ’float-up’ review for proposed Development Agreement Amendments o Phasing and requested time to pull building permits (21-233 months) o Community benefits negotiations o Circulation concepts - new streets and alignment, parking CEQA Environmental Impact Report (EIR) preparation Public hearings at Planning Commission and City Council after Draft EIR is prepared for Development Agreement Amendment, Phase Two South Campus Master Plan, and associated DR Permits Phase One Community Benefits Summary 2014 Community Benefit Program and Annual Plan: Program to support the health and well-being of Santa Monica residents and community; the annual plan summarizes benefits provided and economic valuation. 2014 calendar year: Providence Saint John’s Health Center (PSJHC) provided services and cash support equal to $11,873,016 in 2014 plus an additional $38,444,645 in unreimbursed Medicare costs. Based on the 2014 community benefit data self -reported from non-profit Catholic hospitals throughout the state to California’s Office of Statewide Health Planning and Development, the five-year average dollar value of community benefits provided by these facilities was $40,805,734. Providence Saint John’s Health Center reported a five-year average of $44,663,564, a value that exceeds the five-year average value of benefits provided by other non-profit Catholic general acute hospitals that self-reported data to OSHPD by approximately 9.3%. In addition to the five-year average data provided, the calendar year 2014 value of benefits provided by the Health Center was $50,320,680. 17 of 53 2014 Santa Monica Community Access Plan: A component of the annual Community Benefit Program requiring the following health service activities: o In-kind and cash support to local non-profit agencies that service Santa Monica residents and to the Santa Monica Malibu Unified School District o Charitable medical and mental health services provided to patients that are clients of and directly referred by local non-profit organizations o Charitable medical and mental health services provided to patients that are students and directly referred by the School District o Free community services available to the general Santa Monica community that promote health education and preventative health services. Annual minimum level of support: $732,000 dollar value subject to 1.5% compounded annual adjustment ($928,897 required for calendar year 2014). Providence Saint John’s Health Center provided health services valued at $5,876,605 during calendar year 2014 through its Santa Monica Community Access Plan, an amount that is over six-times greater than its annual requirement for 2014. Child Care Program: Non-therapeutic child care for 47 children provided, including 21 infant and toddler spaces. North Lawn: 41,000 SF public open space, including landscaping and walkways. Off-site public works improvements: payment of $641,000 in fees to the City to construct sidewalks, curbs, streetlights, and street paving in the project area; payment made in July 1998. Transportation Demand Management Program: enhanced by First Amendment. Light rail shuttle: 15-month requirement to operate shuttle to/from Memorial Park light rail station starting within six months of the Expo light rail opening (required by First Amendment) unless duplicative public transit service is provided by the City. Off-site transit improvements: $100,000 contribution for Memorial Park light rail station upgrades paid to the City in December 2012 (required by First Amendment). Neighborhood protection measures: eleven requirements including establishing a community Ombudsperson, providing a reduced valet rate for parking 90 minutes or less, and payment of $30,000 for installation of a crosswalk at 21st Street/Arizona Avenue and payment of $15,000 for a pedestrian safety study (required by First Amendment; both amounts paid to the City in Spring 2013; City installation of the crosswalk anticipated during first quarter 2016). 18 of 53 Status of Compliance Providence Health and Services (Providence) assumed full sponsorship of Saint John’s Health Center from the Sisters of Charity of Leavenworth in early 2014. Providence is now the sole sponsor of the Saint John’s Health Center (renamed Providence Saint John’s Health Center), the John Wayne Cancer Institute, and all clinics and centers associated with the Health Center. City staff worked with Providence during its due diligence process and sponsorship transition to review the requirements of the Development Agreement and provide a detailed overview of the key issues and community concerns that were associated with Phase One development and the First Amendment. City staff also reviewed Phase Two procedural requirements with Providence. With respect to compliance with Development Agreement terms for the January 1, 2014 to December 31, 2014 review period, the annual compliance report was received from PSJHC on July 1, 2015. Phase One Completion The new Health Center Entry Plaza on Santa Monica Boulevard opened to the public in October 2013 with ancillary repaving and signage installation in and nearby the Entry Plaza completed in January 2014. Annual Community Meeting The hospital held its annual community meeting to discuss Development Agreement compliance on June 29, 2015. The Health Center’s Community Ombudsperson provided the City with a summary of the issues and questions discussed at the meeting, the annual Ombudsperson record of calls/correspondence from community members, and a summary of the Health Center’s responses to those inquiries. Transportation Demand Management With respect to compliance with vehicle trip reduction meas ures, staff has verified that Saint John’s Health Center is implementing its TDM program in accordance with Agreement terms, including the additional measures and incentives required by the First Amendment in 2011 and by City staff in 2014 and 2015. The First Amendment identifies a 1.5 Average Vehicle Ridership (AVR) standard for both the a.m. and p.m. 19 of 53 peak periods starting in November 2013. Non -achievement of the AVR standard does not constitute a default within the meaning of the Development Agreement so long as the Health Center is taking all feasible steps to achieve compliance, including implementing additional transportation demand management measures designed to achieve the 1.5 peak-period AVR standards. In 2015 the Health Center was required to implement a series of additional measures and incentives to increase the effectiveness of its TDM program which, in conjunction with existing TDM measures, were designed to achieve the AVR standard established by the amended Agreement. Over the past year, City staff has worked with PSJHC on a bimonthly basis to discuss TDM plan enhancements and review implementation status. Prior to the Health Center’s May 2015 AVR survey, the following additional trip - reduction incentives were implemented subject to City staff approval: Six month free paid vanpool lease for all newly formed vanpools Free 13 Ride Pass for Big Blue Bus for all new employees (regardless of their commute method) Enrollment in Metro Rewards Program to all employees who qualify Quarterly Rideshare “Spotlight on Green Commuting Superstar” article highlighting a caregiver who uses alternative transportation and their commuting experience New bike racks at the north side of the Health Center Following the Health Center’s May 2015 AVR survey, expanded TDM Plan measures were also implemented, subject to City staff approval: 100% free vanpool for all caregivers outside 15-mile radius. Increased internal marketing provided for this enhanced incentive Increased financial incentive to $3/day for all employees reporting they use a non-single-occupancy-vehicle (SOV) mode as their primary commute method The PSJHC Green Commute marketing plan to Health Center employees was redesigned and improved to feature the new incentives A 90-day trial for all new employees to receive $3/day financial incentive to use non-SOV mode even if they have not committed to non -SOV mode as their primary commute method 20 of 53 Hosted a self-defense class that discussed safety as potential barrier to walking, biking, public transportation use; this class will also be held in spring 2016 Bike maintenance education workshop was held on December 17, 2015 In Fall 2015, the PSJHC Transportation Coordinator submitted to the City its annual AVR survey results with and without South Coast Air Quality Management District (AQMD) off-peak hour trip credits used in the AVR calculation. The term ‘off -peak hour trips’ refers to those employee arrival/departure trips that occurred outside of the a.m. and p.m. peak hours: 1.34 AVR during the a.m. peak period and 1.36 AVR during the p.m. peak period 1.45 AVR during the a.m. peak period and 1.48 AVR during the p.m. peak period with off-peak hour trip credits In either case, the Health Center’s survey results do not meet the 1.5 AVR goal for the peak periods, despite the facility implementing new TDM measures in 2014 and 2015, its recognition in May 2014 as a Metro Diamond Award recipient for Outstanding Rideshare Leadership for 2013-2014, and no significant work shift changes for Health Center employees. City staff, PSJHC Administration, and its Transportation Coordinator reviewed in detail the survey results, methodology, and aggregate employee shift data and identified employee response errors that may have affected the Health Center’s overall AVR calculation. Based on this review, due to the non-traditional schedules worked by many Health Center employees, survey response errors appear to have affected the peak - hour AVR calculations during the last reporting cycle. More specifically, the Health Center’s compressed work schedules for nurses and other employees have proven to be difficult to record accurately in the AQMD survey format applicable to large employers (250+ employees) as it is structured for traditional office- type employee schedules. For example, during the five -day survey period in May 2015, there was an average of 107 employees each day working a compressed work week schedule, however, on any day, only 8 -17 employees reported their shift accurately. 21 of 53 While this evaluation of the Health Center’s data collection and reporting procedures does not change the results of its 2015 AVR survey, it does provide context for the AVR calculations in light of the Health Center’s on-going efforts to improve its Transportation Demand Management Plan and reduce single-occupancy vehicle trips associated with Health Center employees. The City has had a series of meetings with Health Center Administration to formulate the additional TDM Plan measures that will be necessary, building on the enhanced plan adopted as part of the First Amendment, and the measures implemented last year. Most recently on December 15, 2015, City staff and the Health Center also discussed its plan to reevaluate its AVR survey methodology and employee education plan to ensure that the next AVR survey results more accurately reflect typical, weekday employee travel and work shift patterns at the Health Center. To date, City staff and the Health Center have identified the following additional measures for implementation in 2016. Some of these additional measures and obligations have been under discussion since Spring 2015 to ensure the financial incentives, operational requirements, and information are in place for the opening of the Expo Light Rail later this year, and are incorporated in the Health Center’s annual budget cycle: Execute Service Agreement with Big Blue Bus (BBB) o PSJHC to pay for Big Blue Bus public transit service enhancements from the Memorial Park Expo Light Rail Station to PSJHC with 15-minute frequency of service and an estimated six-minute travel time that matches Health Center peak employee shift times. o Routes 41 and 42 would be adjusted to travel between the corner of Santa Monica Boulevard and 20th Street and the station entrance at 17th Street and Colorado Avenue, stopping only one time in between the Health Center and the station, at or near the corner of Broadway and 20th Streets. o PSJHC to pay for Big Blue Bus Transit Pass Program for all Health Center employees and contract employees with unlimited BBB use. o This Service Agreement is in lieu PSJHC’s 15-month employee shuttle 22 of 53 requirement between the Memorial Park Expo Light Rail Station and the Health Center; it provides transit service enhancements available to the broader community and establishes the BBB transit pass program for all Health Center employees. Continued participation and leadership role in Santa Monica Transportation Management Association (TMA) formation. PSJHC recently participated in the City’s selection committee for the consultant team that will form and staff the Citywide TMA. Provide direct outreach to all Health Center employees who request a RideGuide guide and who live in Santa Monica zip codes offering personal assistance to set up alternative transportation. Provide $35,000 for Transportation Management Association formation, as required by the First Amendment. The Health Center’s TDM plan modification will be finalized by end of February 2016 and is subject to approval by the Planning Director. Staff will require PSJHC to implement the new measures before the Health Center’s annual employee AVR survey in May. Parking Obligations The Health Center provided its annual Parking Management Plan in February 2015. Staff has reviewed the documentation and periodically monitored changes in the Health Center’s overall parking supply during the reporting year. Based on this review, City staff determined that the facility’s effective parking supply of approximately 1,350 spaces in February 2015 and 1,265 spaces as of June 2015 is sufficient to meet the 1,060-space peak parking demand for the Health Center. The parking demand summary provided in the February 2015 Walker Report is consistent with the Health Center’s previous annual submittal which estimated a peak parking demand of approximately 1,126 spaces. The current data is also consistent with the parking demand assessments previously submitted during the years 2008 -2013 which includes the time-period following the 2009 completion of the In-Patient Suites and Diagnostic and Treatment Center on the North Campus. The City also requires a minimum of 948 spaces that are either owned or deemed functionally-equivalent leased 23 of 53 spaces, per the amended Agreement, which are provided. Therefore, in accordance with Section 2.2 of the First Amendment, PSJHC has met its requirement to provide sufficient parking to meet the peak parking demand of its various user groups and has met its requirement to provide parking that is functionally- equivalent to the originally approved North Subterranean Parking Structure. Summary of Compliance In summary, staff has reviewed the amended Development Agreement, all of the supporting documentation provided to the City for the January 1, 2014 to December 31 , 2014 reporting year, including current 2015 AVR data. Accordingly, staff has determined that Providence Saint John’s Health Center is in good faith compliance with the terms and conditions of its Development Agreement, including its annual and ongoing Community Benefit Program and Santa Monica Community Access Program obligations, and Phase One construction obligations and fee payments for neighborhood protection measures approved with the First Amendment in 2011. Rand Corporation 1776 Main Street Agreement Effective: 11/23/2000 Expires: 11/23/2055 Reporting Period: 11/23/2014 to 11/23/2015 Good Faith Compliance Confirmed The Rand Corporation Agreement involved the demolition and remediation of the existing buildings on the 3.7 acre project site located at 1776 Main Street and the construction of a 308,869 SF headquarters for Rand Corporation. The new five -story, 69’ tall building houses research-related facilities, management, staff cafeteria, fitness room, and meeting/conference rooms. Parking is provided in a four-level, 825-space subterranean parking garage. 24 of 53 Community Benefits Summary Land dedication and construction of Vicente Terrace Land dedication for Main Street Circle should this be constructed TDM Program implementation Policy Analysis Partnership on Childhood Development and Education including pursuing research funding for early childhood development Early Childhood Development Research, including organizing conferences and maintaining a child policy website $500,000 contribution to Early Childhood Development Programs/Early Child care Education in the Civic Center Status of Compliance The required annual compliance report was received by staff in November 2015. The required annual compliance report was received in Nove mber 2015. Based on staff’s review of Rand’s Development Agreement, including the ongoing compliance with their Transportation Demand Management Program and activities relating to early childhood programs, the project has been determined to be in good faith compliance with all requirements. Lantana East 3030 Olympic Boulevard Agreement Effective: 10/28/2004 Expires: 10/28/2024 Amended: 08/2008 Reporting Period: 10/28/2014 to 10/28/2015 Good Faith Compliance Confirmed Lantana East consists of a 3-story, 64,105 SF building with entertainment production/post- production studio space and 433 subterranean and surface parking spaces. Community Benefits Summary $356,200 joint use improvement fee for capital improvements to Edison 25 of 53 Language Academy, plus $35,600 paid annually for five years (requirement shared with Lantana South) $266,650 child care contribution $90,000 arts contribution New public restrooms at Stewart Park Construction of neighborhood traffic protection & off-site roadway improvements Status of Compliance The annual Development Agreement Compliance Report was submitted in August 2015 for the 2014-2015 reporting year. Based on staff’s review of the Agreement, the project has been determined to be in good faith compliance with all Development Agreement fee payments, community benefits, and operational requirements. The Santa Monica Malibu Unified School District (“School District”) approved construction of a new school facility and associated playground area for the Edison Language Academy. The Joint Use Improvement Fees collected from the Lantana East and Lantana South Development Agreements funds a small portion of the School District’s overall capital cost for the school campus improvements and outdoor areas that are utilized, in p art, through the Playground Partnership with the City where by the City may use School District facilities for outdoor activity programs. A total of $356,200 for capital costs and $178,000 for a program operating subsidy was required as a shared obligation between the Lantana East and Lantana South Development Agreements. These payments were made to the City per the amended Agreement and the School District anticipates that the Edison Language Academy playground improvements will be completed and in use by January 2016. Lantana South 3131 Exposition Boulevard Agreement Effective: 10/28/2004 Expires: 10/28/2024 Amended: 8/2008 Reporting Period: 10/28/2014 to 10/28/2015 Good Faith Compliance Confirmed 26 of 53 Lantana South consists of a 3-story, 130,000 SF building for entertainment production/post-production studio space with a total of 456 subterranean and surface parking spaces. Community Benefits Summary $356,200 joint use improvement fee for capital improvements to Edison Language Academy, plus $35,600 paid annually for five years (requirement shared with Lantana East) $133,350 child care contribution $60,000 arts fee Off-site roadway improvements Status of Compliance The annual Development Agreement Compliance Report was submitted in November 2015 for the 2014-2015 reporting year. Based on staff’s review of the Agreement, the project has been determined to be in good faith compliance with all Development Agreement fee payments, community benefits, and operational requirements. The Village 1725 Ocean Avenue Agreement Effective: 5/27/2008 Expires: 12/31/2028 Reporting Period: 10/1/2014 to 10/1/2015 Good Faith Compliance Confirmed The Village development provides six residential buildings with approximately 324 residences, and approximately 20,000 square feet of commercial retail on three separate development sites. The following summarizes key project components: Site A: Two condominium buildings, with ground floor retail on Ocean Avenue Olympic Drive and Main Street frontages with approximately 66 residences 27 of 53 Maximum 65’ building height 109,346 gross square feet (GSF) of residential and 9,930 GSF of retail uses 180 parking spaces Site B: Four affordable apartment buildings with ground-floor live/work space Approximately 28 one-bedroom, 56 two-bedroom, and 66 three-bedroom units 10 affordable units of live/work space intended for artists Maximum 60’ building height 191,549 GSF 197 parking spaces Site C: One condominium building (96’ height) with ground floor retail Approximately 98 one-bedroom and 98 two-bedroom residences 159,288 GSF of residential and 7,400 GSF of retail uses 237 parking spaces Community Benefits Summary 160 affordable units, including 10 units of live/work space intended for artists LEED Silver certified buildings Completion of the Olympic Drive Extension, including signalization at the intersections of Olympic Drive with Main Street and with Ocean Avenue, with new sidewalks and landscaping $500,000 toward design, construction, operation and/or maintenance of a Civic Center Child Care Facility prior to issuance of a Certificate of Occupancy for project buildings $700,000 Transit Service Enhancement Fund payable in two installments prior to issuance of a Certificate of Occupancy for project buildings Provide two public art pieces on site, valued at approximately $920,000 with a minimum value of $460,000 for the art work itself and pay an in -lieu Private Developer Cultural Arts contribution for a portion of the site’s square footage prior to issuance of a Certificate of Occupancy 28 of 53 Status of Compliance The Village project completed construction in late 2014. Based on staff’s review of the Agreement and the owner’s annual report, the project has been determined to be in good faith compliance with Agreement requirements. Examples of these requirements include public infrastructure improvements, payment of the Transit, Cultural Arts, and Child care contributions outlined above, and operational requirements such as allocating 50% of the retail square footage to neighborhood -serving uses and providing a minimum of two spaces on site for a carshare service available to the public. Saint Monica’s Catholic Community 725 California Avenue Agreement Effective: 5/27/2010 Expires: 5/27/2030 Reporting Period: 5/27/2014 to 5/27/2015 Good Faith Compliance Confirmed The Saint Monica’s Catholic Community Development Agreement consists of construction of a single-phase Campus enhancement and parking improvement plan on St. Monica's property. The project includes the following key components: Demolition of existing Pastoral Center Construction of a new Community Center (27,500 SF) with three levels of subterranean parking (154 parking spaces) Construction of a 7,700 SF addition to the High School East building Renovation of the existing auditorium, gymnasium and other facilities Community Benefits Summary TDM Program for students, employees, and parishioners Shared parking allowing neighborhood use of 15 parking spaces locate d at the off-site surface parking lot at 1140 7th Street during off-peak hours Availability of a community meeting space to city departments, community groups, and nonprofit organizations Public use of the Bookstore/Coffee Bar during all operating hours 29 of 53 Status of Compliance Pursuant to the Development Agreement, St. Monica’s plans for interior renovations to the gymnasium, and interior/minor exterior improvements to the Trepp Center located on-site are currently being reviewed by the City, with anticipated construction commencing in 2016. St. Monica’s Catholic Community is in good faith compliance with Development Agreement requirements for the 2014-2015 reporting year. 1548 6th Street Agreement Effective: November 22, 2012 Expires: November 22, 2022 Reporting Period: 11/22/2014 to 11/22/2015 Good Faith Compliance Confirmed The 1548 6th Street Development Agreement was approved by Council on October 23, 2012 and authorizes the conversion of 3,038 square feet of non-usable space into four residential units within an existing mix-use, market-rate rental housing project. Community Benefits Summary One one-bedroom deed-restricted very low income unit TDM Plan with measures that include a 1.75 AVR by the second year after Certificate of Occupancy issuance $75,000 contribution towards transit and circulation infrastructure in the Downtown area prior to issuance of a Certificate of Occupancy Residential tenant bicycle repair station and bicycle racks Status of Compliance Construction for this project is completed. A Minor Amendment to the Development Agreement was approved on February 14, 2014, to reduce the number of publicly- accessible bicycle racks from 28 to 24. The bicycle racks and required residential tenant bicycle repair station have been installed. The final inspection on the building permit was completed on September 24, 2014. Compliance has been verified for the requirement to provide one one-bedroom deed-restricted, very-low income residential unit and the applicant has paid the $75,000 contribution towards transit and circulation 30 of 53 infrastructure in the Downtown area. Arclight Cinemas at Santa Monica Place 315 Colorado Avenue Agreement Effective: May 23, 2014 Expires: May 23, 2034 Reporting Period: 5/23/2014 to 5/23/2015 Good Faith Compliance Confirmed The Arclight Cinemas at Santa Monica Place project consists of conversion of approximately 50,000 square feet of existing entitled, vacant retail space on the third level of the Bloomingdale’s building located on the property into a multi-screen movie theater complex with up to 13 screens, up to 1500 seats (including stadium -style seating), related ticketing, lobby and concession space. The approved project does not include new floor area. The project includes bar/café/retail spa ce and/or a lounge area each with food and beverage service, including alcoholic beverages. Alternatively, the lounge area could be used for additional theater space or theater concession areas, depending upon the needs of the theater operator. To accommodate the theater, the existing roof of the Bloomingdale’s building was raised by up to approximately 36 feet, from a current height of 48 feet, to up to approximately 84 feet above existing grade. The project was approved by Council in April 2014. Project and Community Benefits Summary $140,820 Colorado Esplanade Contribution for design and physical improvements $100,000 Downtown Wayfinding Metro Grant project Contribution Minimum LEED Gold certification per the LEED Rating System Theater Operator to make up to three movie screens available to the American Film Market during its annual film festival Local Hiring Provision: job fair targeted toward recruitment of local residents for theater services employment Transportation Demand Management Program including a 2.0 AVR target commencing one year after opening theater to public (or 1.75 AVR until the 31 of 53 Fourth Street Station for the Exposition Light Rail Line is fully operational), and transit subsidies Status of Compliance The Arclight Cinemas Project completed construction and opened to the public in November 2015. All community benefits and construction-related requirements have been met. The Colorado Esplanade contributions ($140,820) and wayfinding program contribution ($100,000) were paid to the City as stipulated by the Agreement and prior to commencement of construction. The required wayfinding signs in Santa Monica Place to direct members of the public to areas outside Santa Monica Place, including Santa Monica Pier and the Third Street Promenade were installed prior to opening the theater in November. Arclight submitted its required local hiring plan to the Director of Planning in August 2015. This plan was approved and Arclight implemented its outreach and on-site job fair targeted towards recruitment of local resident candidates for employment at the theater. Based on staff’s review of the Agreement, the project has been determined to be in good faith compliance with its Development Agreement requirements. 702 Arizona Avenue Agreement Effective: 12/8/2011 Expires: 12/8/2021 Reporting Period: 12/8/2013 to 12/8/2014 Good Faith Compliance Confirmed The Development Agreement for 702 Arizona Avenue authorizes construction of a new, four-story mixed-use building with approximately 6,276 SF of neighborhood-serving commercial space on the ground floor, 49 residential units on the upper floors, and two levels of subterranean parking. 32 of 53 Community Benefits Summary TDM Program that includes secure bicycle storage for residents, employee s, and visitors $50,000 contribution towards transit infrastructure in the Downtown area Infrastructure for potential future installation of electric vehicle charging stations Achievement of a minimum LEED Silver certification or a demonstrated equivalent sustainable design status Local hiring program Urban design features including a small pedestrian courtyard and walkway Status of Compliance Project construction completed during the last reporting period and residential and commercial occupancy of the building has begun with one of the two ground floor commercial spaces occupied to date. The annual compliance report was submitted for the property on December 2, 2015. Transit ($50,000), Cultural Arts ($66,030), and Child care ($5,873.12) contributions were paid to the City in August 2012. Some of the community benefits that have been provided during the last reporting period include the following: Transportation information center is located in the lobby of the leasing office, and transportation information welcome packets are provided to all new residents On-site transportation coordinator is located on site Residents are charged for unbundled parking on site Transit passes are offered to employees and residents in lieu of parking Secure bicycle storage and shower and locker facilities are provided on site Property owner has been marketing the residential component of the project to Downtown employers as well as employers throughout the City to encourage those that work in the area to consider residing in the project AVR requirement of 1.75 is required for the employees of the commercial tenant spaces by the third year after the issuance of the Certificate of Occupancy for the project Based on staff’s review of the property, the 702 Arizona Avenue project has been determined to be in good faith compliance with its Development Agreement requirements. 33 of 53 1317 7th Street Agreement Effective: 12/8/2011 Expires: 12/8/2021 Reporting Period: 12/8/2014 to 12/8/2015 Good Faith Compliance Confirmed This Development Agreement authorizes construction of a new, five -story mixed-use building with approximately 2,929 SF of neighborhood -serving commercial space on the ground floor, 57 residential units, and two levels of subterranean parking. Community Benefits Summary One extra on-site affordable housing unit TDM Program with secure bicycle storage for residents, employees, and visitors $50,000 contribution towards transit infrastructure in the Downtown area Infrastructure for potential future installation of electric vehicle charging stations Achievement of a minimum LEED Silver certification or a demonstrated equivalent sustainable design status Local hiring program Urban design features including a small pedestrian courtyard and walkway Status of Compliance Project construction completed during the last reporting period. The property owner is operating in good faith compliance with Agreement. Requirements including Transit ($50,000), Cultural Arts ($77,524), and Child care ($6,807.48) contributions were paid to the City in August 2012. The following are some of the community benefits that have been provided during the last reporting period: Transportation information center is located in the lobby of the leasing office, and transportation information welcome packets are provided to all new residents On-site transportation coordinator is located on site Residents are charged for unbundled parking on site Transit passes are offered to employees and residents in lieu of parking 34 of 53 Secure bicycle storage and shower and locker facilities are provided on site Property owner has been marketing the residential component of the project to Downtown employers as well as employers throughout the City to encourage those that work in the area to consider residing in the project AVR requirement of 1.75 is required for the employees of the commercial tenant spaces by the third year after the issuance of the Certificate of Occupancy for the project Based on staff’s review of the property, the 1317 7th Street project has been determined to be in good faith compliance with its Development Agreement requirements. Crossroads School 1731 20th Street Agreement Effective: August 8, 2013 Expires: August 8, 2033 Reporting Period: 8/8/2014 to 8/8/2015 Good Faith Compliance Confirmed The Crossroads School Science Learning Center project permits development of a new three-story (41’), 23,856 SF science learning center and temporary modular classrooms and 50 bicycle parking spaces. The project was approved on June 25, 2013. Community Benefits Summary Development of an educational facility that provides enhanced educational opportunities for students Bicycle Path Easement Agreement with for establishing a public bicycle path Photovoltaic Panels and Photovoltaic Panel-Ready Roof Pico Neighborhood Outreach and Prioritization for Summer Program Status of Compliance Project construction recently completed for the beginning of the 2015-2016 school year. The school operated in full compliance with Agreement requirements for project’s construction phase. The required annual compliance report was received from Crossroads School on November 18, 2015. The property owner is in good faith 35 of 53 compliance with Development Agreement requirements. The following are some of the community benefits that have been provided during the last reporting period: Representatives from Crossroads admissions and summer programs held informational sessions in February 2015 at the Pico Youth and Family Center and in September 2015 at Virginia Avenue Park for Pico neighborhood residents Crossroads continues to prioritize residents of the Pico neighborhood for both enrollment and financial aid and offers some free enrollment for Pico neighborhood residents to classes that are not fully enrolled Employees and students are required to pay for parking, and employees who ride a bike, walk, or take public transit to Crossroads receive financial and other incentives (bus passes, TAP cards, gift certificates, etc.) Crossroads maintains a full time employee transportation coordinator and transportation information center Crossroads School is meeting with City staff to review its TDM Plan and implement additional measures to achieve its AVR goal of 1.6 for both a.m. and p.m. peak periods. Their latest report indicates an a.m. AVR of 1.54 and p.m. AVR of 1.5. City staff is currently working with Crossroads on these revisions to their plan and anticipates approving the TDM plan revision by the end of February. Completed Projects - Recommendation on Compliance Pending Agensys 1800 Stewart Street Agreement Effective: 10/28/2010 Expiration: at termination of ground lease Reporting Period: 10/28/2014 to 10/28/2015 Recommendation on Compliance Pending Completion of Staff Review The Agensys Agreement permits a project including the following key components: 24,625 square feet for administration offices and entry lobby 45,590 square feet for manufacturing of new cancer treatments 72,050 square feet for research and development 36 of 53 11,390 square feet of meeting rooms, employee amenities including a cafeteria open to the public during lunchtime hours 5,140 square-feet of publicly accessible open space Publicly-accessible pedestrian path to allow access to the Bergamot Station site and future Expo Line light rail station Surface parking for 200-220 cars Community Benefits Summary Publicly-accessible pedestrian path Publicly-accessible passive open space along Stewart Street Widened sidewalk along Stewart Street Café open to pedestrians during limited daytime hours TDM Program geared to the project site’s location within a “Higher Goal” District designated by the Land Use and Circulation Element (LUCE) Sculpture garden with up to 10 sculptures adjacent to the pedestrian path Local hiring program including a job fair and a local hiring policy Student internship program Student tours Signage and way-finding system Shared parking for events at Bergamot Station Continued community outreach Transit contribution toward improved transit infrastructure focused on bicycle access at the light rail station Status of Compliance Construction for the Agensys project began in Spring 2011 and was completed in January 2013. Staff received the facility’s annual compliance report on December 2, 2015. All of the site community benefits such as the pedestrian path linking Bergamot Station to Stewart Street, the Sculpture Garden, Pedestrian Café (LIME), public open space, and widened sidewalk were complete with the construction of the project site. Operational community benefits such as a local hiring program; internship program for 37 of 53 Santa Monica College students or Santa Monica residents; Santa Monica-Malibu Unified School District student tours; providing shared parking for special events at Bergamot Station; and continuing community outreach are on -going benefits. Agensys is in good faith compliance with these Agreement requirements. Financial payments of $70,350 for the project’s required Bergamot Station Transit Infrastructure Contribution and $20,000 for bicycle access improvements in the area were verified in January 2014. In contrast to other development agreements where AVR rates are structured as targe ts or goals, the Agensys Development Agreement specifies that Agensys’ initial employee average vehicle ridership requirement shall be 1.6 until such time that the Expo light rail is operational. More specifically, Agensys is required to achieve a 1.6 AVR rate for the a.m. and p.m. peak-hour periods (6:00 a.m. to 10:00 a.m. and 3:00 p.m. to 7:00 p.m., respectively). This is due to the project site’s location within a “higher goal” LUCE District for achieving vehicle trip reduction. The Agensys Agreement also provides that in the event the applicable AVR requirement is not reached in any annual Employee Trip Reduction Plan (ETRP), Agensys shall propose modifications to the TDM program to achieve the AVR requirements by the next ETRP submittal. This issue of non-compliance with the AVR requirement was also reported on during the last compliance review cycle for 2014. As a result, staff met with Agensys in March 2015 to review the additional TDM measures required to achieve the AVR requirement. The annual Emission Reduction Plan submitted by Agensys to the City in September 2015, in accordance with the City’s Employee Trip Reduction Ordinance (SMMC Chapter 9.53), contains the numeric AVR calculation for the last reporting period and indicates that the property complies with the 1.6 AVR requirement. However, the City disagrees with the methodology used for Agensys’ 2015 AVR survey and consequently the validity of the survey results. This disagreement is being addressed in accordance with the procedures established in SMMC Chapter 9.53 for employer monitoring, enforcement, and administrative appeals. Staff is also working with Agensys to clarify how several of its TDM Plan requirements have been implemented. Therefore, 38 of 53 determination of Agensys’ compliance with all Development Agreement requirements is still under City review pending the outcome of the SMMC Chapter 9.53 process. Staff anticipates providing a report to Council on the status of compliance for the property during the second quarter of 2016. Projects Under Construction 1318 2nd Street Agreement Effective: July 25, 2013 Expires: July 25, 2023 Reporting Period: 7/25/2013 to 7/25/2014 Project Under Construction The 1318 2nd Street project consists of a four-story (45’) and 46,421 SF mixed-use development with 6,664 SF of commercial space; 53 residential units, 6,664 SF of retail space, 66 subterranean parking spaces, and 132 bicycle parking spaces. The project was approved by Council on June 25, 2013. Community Benefits Summary $125,493 Transportation Infrastructure contribution $125,000 Colorado Esplanade contribution $225,000 Open Space contribution $25,000 Big Blue Bus contribution $25,000 Historic Preservation contribution TDM Plan that exceed Zoning Ordinance requirements 24 Solar panels Five electric vehicle charging stations Local Hiring Provision to facilitate the hiring of local workers during construction and for permanent commercial employees 39 of 53 Status of Compliance Building permits for the project were issued in October 2014. Required Development Agreement contributions towards Historic Preservation ($25,000), Transportation Infrastructure ($125,493), Colorado Esplanade $125,000, Big Blue Bus $25,000, and Open Space ($225,000) were paid to the City prior to build ing permit issuance. Building completion is anticipated for Summer 2016. The project has been determined to be in good faith compliance with Development Agreement requirements, including construction-period monitoring such as construction mitigation and local hiring (construction employees), at this current phase of the development. Courtyard by Marriott Hotel 1554 5th Street Agreement Effective: December 26, 2013 Expires: December 26, 2038 Project Under Construction The Courtyard by Marriot Hotel project consists of development of a new six-story, 78,750 SF hotel with 136 guest-rooms, and 78 subterranean parking spaces. The project was approved by Council on November 26, 2013. Community Benefits Summary Permanent Historic Commemorative Installation on the property in a publicly accessible location Artistic Exhibition Program for the purpose of showcasing different forms of art in periodic exhibitions at the hotel, including art sourced from professional galleries, local artists, and Santa Monica students Community access to on-site meeting space Physical space dedicated for a future bicycle sharing program station $294,000 Colorado Esplanade contribution $50,000 Hospitality Training Academy contribution $75,000 Historic Preservation contribution Fourth Court Alley Improvement contribution (or if not implemented, contribution would become a Parks & Recreation/Open Space contribution of $210,000) 40 of 53 Affordable Housing contribution of $21,000 Minimum LEED Gold certification as established by the LEED Rating System Solar energy systems including photovoltaic solar panels One electric vehicle charging station and seven stub-outs for charging stations Minimum 30% water reduction for the hotel’s total water use Local Hiring provision: internship program, job fair, and 40% hiring goal TDM Program including a 2.0 AVR target, bicycle parking, bicycle rentals, car- share spaces, transit subsidies, etc. Physical Improvements consisting of expanded sidewalks Shared parking provision Status of Compliance The demolition permit for this project was issued in September 2014, with overall building permit issuance in March 2015. The project is currently under construction. Required contributions towards Historic Preservation, Colorado Esplanade, Fourth Court Alley Improvements, Affordable Housing Linkage, and the Hospitality Training Academy were provided to the City prior to building permit issuance. The Director of Planning issued a minor modification in February 2015 during plan check review to allow a 47% compact parking percentage whereas a maximum of 40% is required by the Development Agreement due to placement of required structural columns within the subterranean garage levels, and to reduce the drive way openings into a single curb cut, resulting in a reduction of the overall driveway width along 5th Street. The developer presented the project’s Historic Commemorative Installation to the Santa Monica Landmarks Commission in December 2015 as a courte sy review to invite comments and suggestions on the proposed installation. Building completion is anticipated for Summer 2016. The project has been determined to be in good faith compliance with Development Agreement requirements, including construction -period monitoring such as construction mitigation and local hiring (construction employees), at this current phase of the development. 41 of 53 Hampton Inn & Suites Hotel 501 Colorado Avenue Agreement Effective: December 26, 2013 Expires: October 31, 2035 Project Under Construction The Hampton Inn & Suites Hotel project consists of development of a new six-story, 78,750 SF hotel with 143 guest rooms, and 78 subterranean parking spaces. The project was approved by Council on November 26, 2013. Community Benefits Summary $294,000 Colorado Esplanade contribution $50,000 Hospitality Training Academy contribution $25,000 Historic Preservation contribution $69,343 Transportation Impact contribution $196,657 Parks & Recreation/Open Space contribution Minimum LEED Gold certification as established by the LEED Rating system Solar energy systems including photovoltaic solar panels One electric vehicle charging station and seven stub-outs for charging stations Minimum 30% water reduction for the hotel’s total water use Artistic Exhibition Program showcasing different forms of art in periodic exhibitions at the hotel, including art sourced from professional galleries, local artists, and Santa Monica students Community access to on-site meeting space Local hiring provision: internship program, job fair, and 40% hiring goal TDM Program including a 2.0 AVR target, bicycle parking, bicycle rentals, car- share spaces, transit subsidies, etc. Physical Improvements consisting of expanded sidewalks Shared parking provision Status of Compliance The demolition permit for this project was issued in September 2014, with overall 42 of 53 building permit issuance in September 2015. The project is currently under construction. Required contributions towards Historic Preservation, Colorado Esplanade, Transportation Infrastructure, Parks and Recreation, and the Hospitality Training Academy were provided to the City prior to building permit issuance. Building completion is anticipated for Summer 2016. The project has been determined to be in good faith compliance with Development Agreement requirements, including construction-period monitoring such as construction mitigation and local hiring (construction employees), at this current phase of the development. Colorado Creative Studios 2834 Colorado Avenue Agreement Effective: 9/22/2011 Expires: 9/22/2026 Project Under Construction This Development Agreement authorizes the construction of a four-story, 191,982 square foot mixed-use creative arts/entertainment production building over a three-level subterranean parking garage with up to 640 parking spaces. The site includes landscaping and seating areas and the building also features ground floor neighborhood serving uses. Community Benefits Summary Dedicated 62-foot wide surface easement for the extension of Pennsylvania Avenue and construction of roadway, curb, and gutters Contribution to Expo station enhancement at Bergamot of approximately $363,000 Widened sidewalks along Stewart Street to enhance the pedestrian environment Community café Internships to Santa Monica College students or Santa Monica residents Shared parking program TDM Program implementation Local hiring program for construction-related jobs 43 of 53 Status of Compliance A building permit for the project was issued on July 1, 2015 and it is currently under construction. Compliance with the construction-related requirements of the Development Agreement are ongoing and will be continually monitored by the Build ing & Safety Division, Public Works Department, and City Planning Division throughout the duration of construction. The payment of the contribution to the Expo station enhancement at Bergamot is required prior to the issuance of a Certificate of Occupancy. MINI Automobile Dealership 1402 Santa Monica Boulevard Agreement Effective: August 22, 2014 Expires: August 22, 2024 Project Under Construction The project at 1402 Santa Monica Boulevard consists of the construction of a 33,400 square foot, 35-foot tall automobile (MINI) dealership that would include a 6,144 square- foot sales floor and offices, 507 square-foot café, 21 service bays, and 135 parking spaces within an enclosed surface parking area and a two -level subterranean parking garage The project was approved by Council on July 22, 2014. Community Benefits Summary $20,000 Historic Preservation contribution $189,424.74 Transportation Infrastructure contribution Minimum LEED Platinum certification as established by the LEED Rating system Photovoltaic solar panels Two electric vehicle charging stations and two conduits for charging stations Local hiring provision Internship program TDM Program including a 1.6 AVR target (1.75 AVR with Memorial Park Station fully operational for at least one year), bicycle parking, employee transportation 44 of 53 allowance and parking cash out, free on-site shared bicycles for employees, etc. Café at corner of the project site open to the public during hours no less than 8:30 a.m. to 4:00 p.m., Monday through Saturday, with a minimum of 10 seats Status of Compliance The project is currently under construction with completion anticipated by 2017. The property owner is operating in good faith compliance with Agreement requirements for the project’s construction phase. Examples of these requirements include work in progress for compliance with sustainable design requirements; implementation of local hiring program goals; and work performed in compliance with the required construction mitigation plan. Transportation Infrastructure contribution ($189,424.74) and Historic Preservation contribution ($20,000) were paid prior to the issuance of a building permit in September 2015. Update on Projects Not Under Construction 401 Broadway Agreement Effective: February 9, 2012 Expires: February 9, 2022 Amended: October 22, 2013 Compliance Not Required at this Time This Development Agreement was approved by Council on January 10, 2012 and authorizes construction of a new, five-story mixed-use development project consisting of 56 residential units and 4,159 SF of ground floor commercial space. An amendment to the Development Agreement was approved on October 22, 2013 to permit 49 subterranean parking spaces accessed by a car elevator and minor modifications to t he ground floor plan. Community Benefits Summary TDM plan with measures applicable to both the commercial and residential components of the project $125,000 contribution for transit/circulation infrastructure in the Downtown area 45 of 53 Ground floor arcade providing additional space for pedestrians at the street One on-site affordable housing unit exceeding the minimum five units required Minimum LEED Silver certification per the LEED Rating System or a demonstrated equivalent sustainable design status Roof-mounted photovoltaic solar panels Local hiring provision to facilitate the employment of local workers during construction Status of Compliance The 401 Broadway project has not advanced to issuance of a building permit, therefore, community benefits have yet to be realized and there are no compliance issues to report. An Administrative Approval and Architectural Review Board approvals were issued for a 7,500 SF commercial building in 2015. This commercial building is currently in plan check review and is not associated with the approved Development Agreement. 710 Wilshire Boulevard Agreement Effective: May 10, 2012 Expires: May 10, 2022 Compliance Not Required at this Time This Development Agreement was approved by Council on April 10, 2012 and authorizes adaptive re-use of a six-story Landmark building located at 710 Wilshire Boulevard for a new hotel with 55 rooms and 6,950 SF of ground floor retail/restaurant space. The project also includes construction of new six-story hotel building on site with 230 rooms; 8,700 SF of ground floor retail/restaurant; a ground floor, open -air paseo; and up to 325 subterranean parking spaces. The project also includes a living wage provision, including health benefits, for covered hotel workers. Community Benefits Summary Preservation and rehabilitation of a City Landmark building TDM Program that includes a 1.75 AVR target for employees of the project achieved by the third year after the City’s issuance of a certificate of occupancy, bicycle parking for employees and guests, shared bicycles for guest use, and transit subsidies for employees 46 of 53 $244,000 transportation infrastructure fee Bicycle sharing area Electric vehicle infrastructure in parking garage for 30 electric vehicles Provide meeting space for non-profits and community organizations on a reduced cost basis at least 12 times a year Paid internship program for at least two Santa Monica residents who attend Santa Monica High School or Santa Monica College Local hiring for permanent and construction employees Status of Compliance The 710 Wilshire Boulevard project foundation-only permit issued for foundation and subterranean garage only last year. The $244,000 Transportation Infrastructure fee paid on September 15, 2015 as a prerequisite to issuance of permit for foundation permit. The applicant indicates that there have been no job openings related to the foundation - only permit (shoring and excavation). Morley is the contractor for the main construction but their contract has not been executed yet pending outcome of design review process. The project design was reviewed by the Joint Design Review Body (JDRB), a single - purpose body created by the development agreement and consisting of members from the Architectural Review Board and Landmarks Commission. The property owner’s appeal of the JDRB’s denial of the ARB application for the new hotel building was heard by Council on December 8, 2015. The appeal was denied and a revised design and new ARB application will need to be filed for future review by the Joint Design Review Body. 2930 Colorado Avenue Agreement Effective: May 9, 2013 Expires: May 9, 2023 Compliance Not Required at this Time The 2930 Colorado Avenue project consists of an approximately 341,290 SF total Mixed-use development with approximately 24,940 SF of commercial space, 377 47 of 53 residential units, including 38 affordable units, and 705 subterranean parking spaces. The project was approved on April 9, 2013. Community Benefits Summary Two new streets (Pennsylvania Avenue and New Road) that will be dedicated to the City as surface easements $1,650,000 Transportation Infrastructure Fee $179,000 contribution to trust fund to be used for child care subsidies for low income families (includes voluntary assignment of required child care linkage fee) $350,000 contribution to trust fund to be used for services for seniors, disabled persons, and families with minor children with priority given to entities who are providing services to Village Trailer Park residents Approximately 27,000 SF of general public open space including expanded sidewalks for outdoor dining and gathering on Colorado Avenue, smaller on -site plazas, pedestrian pathways, and green space at the intersection of New Road and Pennsylvania Avenue Approximately 15,000 SF of residential public open space including pedestrian pathways and courtyards Local hiring program for construction Local hiring program for permanent employment for commercial uses greater than 1,500 SF Status of Compliance The project is currently in plan check review for subterranean concrete work and the first floor slab. The required $350,000 contribution for Senior and Disabled Services was paid on May 12, 2015. The funds were disbursed as part of the Communi ty Cultural Services Department - Human Services Division grant cycle. These funds will be distributed over the next four years to the following agencies: Meals on Wheels West - More than a Meal: Home Delivered Meals OPCC - Interim Housing and Wellness Program Westside Center for Independent Living - Independent Living Services WISE & Healthy Aging - Care Management Federal Transit Administration - New Freedom Program (Cash Match) Human Services Division - Senior Housing Task Force 48 of 53 1112-1122 Pico Boulevard Agreement Effective: December 26, 2014 Expires: December 26, 2024 Compliance Not Required at this Time The 1112-1122 Pico Boulevard project consists of construction of a 32,088 square -foot, 45-foot-tall residential building consisting of 32 two-bedroom rental units and a two-level subterranean parking garage with 64 parking spaces, Four of the residential units are deed-restricted as affordable for occupancy by 50% Income Households and 11 additional units are price-restricted. The project was approved by Council on November 25, 2014. Community Benefits Summary Four residential units deed-restricted as affordable for occupancy by 50% Income Households 11 price-regulated residential units $77,453.55 Transportation Infrastructure contribution $149,980.50 Parks and Open Space contribution Minimum LEED Platinum certification as established by the LEED Rating system Photovoltaic solar panels Two electric vehicle conduits for charging stations Local hiring provision TDM Program including a 2.0 AVR target, carshare parking space, long- and short-term bicycle storage/parking, bicycle rentals, two free on-site shared bicycles for resident and visitor use, car-share spaces, transit subsidies, etc. Physical Improvements consisting of expanded sidewalks Shared parking provision Status of Compliance The project has not advanced to issuance of a building permit, therefore, community benefits have yet to be realized and there are no compliance issues to report. 49 of 53 1415 5th Street Agreement Effective: November 27, 2015 Expires: November 27, 2018 Compliance Not Required at this Time The 1415 5th Street project mixed-use project involving construction of a six-story (84 feet) building consisting of approximately 52,545 tota l square feet: 6,345 square-feet of ground floor commercial space, 64 residential units, and 105 parking spaces within a three-level subterranean parking garage. The project was approved by Council on October 13, 2015. Community Benefits Summary 14 deed-restricted affordable units Minimum LEED Platinum certification as established by the LEED Rating System Water conservation requirement fifty percent (50%) below the CALGreen (Title 24) baseline for exterior water use and landscaping, and (ii) 30% below the CALGreen (Title 24) baseline for interior building water use Energy conservation designed to use and shall achieve 15% less energy than required by the California Energy Code TDM Program including a Transformation Information Center, employee secure bicycle storage, employee showers and locker facilities, short-term bicycle parking, unbundled parking, AVR target of 2.2, parking cash out and 100% transportation allowance $20,000 Transportation Management Association contribution $40,000 Big Blue Bus contribution $90,000 Enhanced Transportation Impact Fee $280,000 Enhanced Parks and Recreation Fee $100,000 Early Childhood Initiatives contribution $50,000 Historic Preservation contribution $300,000 Water Conservation Program contribution Local hiring provision Shared parking provision Local preference marketing plan 50 of 53 Status of Compliance The project has not advanced to issuance of a building permit, therefore, community benefits have yet to be realized and there are no compliance issues to report. 1560 Lincoln Boulevard Agreement Effective: November 27, 2015 Expires: November 27, 2018 Compliance Not Required at this Time The 1560 Lincoln Boulevard project was approved by Council on October 13, 2015 for a new five-story, 102,500 square-foot mixed-use project consisting of 100 residential units, 13,800 square feet of ground floor commercial space, and 232 parking spaces within a three-level subterranean parking garage. It is anticipated that Architectural Review Board consideration of the building’s design, colors, and materials will occur later this year. Community Benefits Summary 20% On-Site affordable housing: 20 residential units o 50% income households: 10 one-bedroom units & 5 two-bedroom units o 80% income households: 5 two-bedroom units Enhanced impact fees o Transportation Impact Fee: $750,000 o Parks and Recreation Fee: $745,000 o Affordable Housing Commercial Linkage Fee: $175,000 Early Childhood Initiatives contribution: $150,000 Historic Preservation contribution: $50,000 Big Blue Bus contribution: $80,000 Transportation Management Association contribution: $50,000 Transportation Demand Management Plan including a 2.2 AVR target, short and long-term bike parking, and a 100% transportation allowance Sustainability elements 51 of 53 o LEED® for Homes Platinum Certification o Solar panels o 15% less energy than required by California Energy Code o Interior building water usage 30% below CALGreen baseline standards o Non-potable water for landscape irrigation and exterior water usage of 50% below CALGreen baseline standards o Water Conservation contribution of $300,000 Bioswale infiltration system that would capture, treat, and infiltrate stormwater along Lincoln Bouevard Electric vehicle parking Shared parking for City use: 20 parking spaces Community meeting space Local hiring program Status of Compliance The project has not advanced to issuance of a building permit, therefore, community benefits have yet to be realized and there are no compliance issues to report. 1601 Lincoln Boulevard Agreement Effective: February 12, 2016 Expires: February 12, 2019 Compliance Not Required at this Time The 1601 Lincoln Boulevard project was reviewed by Council on December 8, 2015 and the project was approved on second reading of the ordinance on January 12, 2016. The project consists of a new five-story, 77,758 square-foot mixed-use project consisting of 90 residential units, 10,617 square feet of ground floor commercial space, and 168 parking spaces within a two-level subterranean parking garage. It is anticipated that Architectural Review Board consideration of the building’s design, colors, and materials will occur later this year. 52 of 53 Community Benefits Summary  21% On-Site affordable housing: 19 residential units o 50% income households: 11 one-bedroom units, 2 two-bedroom units, and 1 three-bedroom unit o 80% income households: 2 one-bedroom units & 2 two-bedroom units o Moderate income households: 1 studio unit  Enhanced Impact Fees o Transportation Impact Fee: $820,000 o Parks and Recreation Fee: $600,000 o Affordable Housing Commercial Linkage Fee: $175,000  Early Childhood Initiatives contribution: $150,000  Historic Preservation contribution: $50,000  Big Blue Bus contribution: $80,000  Transportation Management Association contribution: $50,000 Transportation Demand Management Plan including a 2.2 AVR target, short and long-term bike parking, and a 100% transportation allowance  Sustainability elements o LEED® for Homes Platinum Certification o Solar panels o 15% less energy than required by California Energy Code o Interior building water usage 30% below CALGreen baseline standards o Non-potable water for landscape irrigation and exterior water usage of 50% below CALGreen baseline standards o Water Conservation contribution of $300,000  Electric vehicle parking for 20% of the parking spaces (i.e. 34 spaces)  Shared parking for City use: 15 parking spaces  Local hiring program Status of Compliance The project has not advanced to issuance of a building permit, therefore, community benefits have yet to be realized and there are no compliance issues to report. 53 of 53 Public Outreach The Municipal Code requires that that the City provide at least 10 days’ notice to the Developer or successor-in-interest of the City Council’s scheduled meeting to review Development Agreement compliance. This notice has been provided. Next Steps Staff will provide an update to Council at a future meeting during the second quarter of 2016 to make a recommendation regarding the status of Development Agreement compliance for the property still under City review. Staff will continue its ongoing Development Agreement compliance review; reports will be made to Council annually in January. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared By: Roxanne Tanemori, Senior Planner Approved Forwarded to Council Attachments: A. Attachment A: TDM Program elements included in Development Agreements since 2010 B. Written Comments C. Powerpoint 1 Attachment A: TDM Program elements included in Development Agreements since 2010 Development Agreements Average Vehicle Ridership Peak Hour Targets (AVR) Bicycle Parking & Amenities Transit/ Infrastructure Contribution Light Rail Shuttle Transportation Management Association (TMA) Shared Parking Facility Employee Parking Cashout / Financial Incentives -and- Transit Coordinator/ Information Center Colorado Center Amendment (2011)  1.5 AVR starting in 2013  1.6 AVR with Light Rail  117 bicycle parking spaces  Establish and operate facility-wide TMA Provides shared parking facility  Yes  Yes Saint John’s Health Center Amendment (2011)  1.5 AVR starting 2013  1.6 AVR with Light Rail  90 bicycle parking spaces  Shower & locker  Space for future bicycle sharing station $100,000 Required 15-month shuttle operation  Co-lead TMA formation in Healthcare District  Fund TMA study  Participate in future Healthcare District TMA Utilizes off-site shared parking facility  Yes  Yes Saint Monica’s Catholic Community (2010)  1.5 AVR  50 bicycle parking spaces  Shower & locker  Assist in formation of geographic- based TMA if City requires  Participate in future geographic- based TMA Provides shared parking facility  Yes  Yes Agensys (2010) Requirements:  1.6 AVR  1.75 AVR with Light Rail  25 bicycle parking spaces  Shower & locker $75,000  Participate in future geographic- based TMA Permitted to share parking  Yes  Yes Colorado Creative Studios (2011)  1.6 AVR  1.75 AVR with Light Rail  64 bicycle parking spaces  Shower & locker  Space for future bicycle sharing station $363,200  Participate in future geographic- based TMA Provide shared parking facility  Yes  Yes 2 Development Agreements Average Vehicle Ridership Peak Hour Targets (AVR) Bicycle Parking & Amenities Transit/ Infrastructure Contribution Light Rail Shuttle Transportation Management Association (TMA) Shared Parking Facility Employee Parking Cashout / Financial Incentives -and- Transit Coordinator/ Information Center 702 Arizona Avenue (2011) 1.75 AVR by third year of occupancy  63 bicycle parking spaces  Shower & locker $50,000  Participate in future geographic- based TMA Permitted to share parking  Yes  Yes 1317 7th Street (2011) 1.75 AVR by third year of occupancy  67 bicycle parking spaces  Shower & locker $50,000  Participate in future geographic- based TMA Permitted to share parking  Yes  Yes 401 Broadway (2012 & 2013 Amendment) 2.0 AVR by third year of occupancy  89 bicycle parking spaces (including secure spaces for employees and residents, and publically assessable for commercial and residential visitors)  Shower & locker $125,000  Participate in future geographic- based TMA Required to unbundle parking  Yes  Yes 710 Wilshire Boulevard (2012) 1.75 AVR by third year of occupancy  64 secure bicycle parking spaces (employees) and bicycle check for hotel guests  16 guest bicycle parking spaces  20 bicycles for shared use by hotel guests (or provide vouchers) $244,000  Assist in formation of geographic- based TMA if City requires Permitted to share & unbundle parking  Yes  Yes 3 Development Agreements Average Vehicle Ridership Peak Hour Targets (AVR) Bicycle Parking & Amenities Transit/ Infrastructure Contribution Light Rail Shuttle Transportation Management Association (TMA) Shared Parking Facility Employee Parking Cashout / Financial Incentives -and- Transit Coordinator/ Information Center 1548 6th Street (2012) 1.75 AVR by second year of occupancy  108 secure bicycle parking spaces for residents  28 publically accessible spaces  Residential tenant bicycle repair station $75,000  Participate in future geographic- based TMA Permitted to share & unbundle parking  Yes (transit information center) 2930 Colorado Avenue (2013)  1.5 AVR for commercial tenants  PM peak-hour vehicle trip cap established  64 bicycle parking spaces for visitors  5 secure bicycle parking spaces (employees)  377 spaces for residents  Residential tenant bicycle repair station  Shower & locker  Space for future bicycle sharing station $1,650,000  Participate in future geographic- based TMA  Fund $50,000 toward area TMA formation Requirement to share portion of parking & permitted to unbundle parking  Yes  Yes 4 Development Agreements Average Vehicle Ridership Peak Hour Targets (AVR) Bicycle Parking & Amenities Transit/ Infrastructure Contribution Light Rail Shuttle Transportation Management Association (TMA) Shared Parking Facility Employee Parking Cashout / Financial Incentives -and- Transit Coordinator/ Information Center 1318 2nd Street (2013) 2.0 AVR by the third year of occupancy  7 short-term bicycle parking spaces for commercial patrons  6 short-term bicycle spaces for resident visitors  4 secure bicycle parking spaces (employees)  One bicycle parking space per residential unit  53 additional bicycle parking spaces for residents  Shower & locker $125,493  Participate in future geographic- based TMA Required to unbundle parking  Yes  Yes 1731 20th Street (Crossroads) (2013)  1.6 AVR until the second year after opening of Light Rail  1.75 AVR by the third year after opening of Light Rail  Execute an easement agreement granting to the City a ten-foot wide surface easement across the southerly portion of the property for purposes of establishing a public bike path  50 bicycle parking spaces for employees, students, visitors (and increase as needed) None None  Participate in the formation of a geographic- based TMA  Yes  Yes 5 Development Agreements Average Vehicle Ridership Peak Hour Targets (AVR) Bicycle Parking & Amenities Transit/ Infrastructure Contribution Light Rail Shuttle Transportation Management Association (TMA) Shared Parking Facility Employee Parking Cashout / Financial Incentives -and- Transit Coordinator/ Information Center 1554 5th Street (Courtyard by Marriott Hotel) (2013)  2.0 AVR from one year after the City’s issuance of a final certificate of occupancy  1.75 AVR if Light Rail is not fully operational at that time  31 long-term bicycle parking spaces for employees and hotel guests  12 short-term bicycle parking spaces for visitors  10 bicycles available for rental by hotel guests  Shower & locker $294,000 Colorado Esplanade contribution $210,000 for 4th Court alley bicycle improvements OR parks and recreation contribution if 4th Court project not pursued  Participate in establishment of future geographic- based TMA Permitted to share parking  Yes  Yes 501 Colorado Avenue (Hampton Inn & Suites Hotel) (2013)  2.0 AVR from one year after the City’s issuance of a final certificate of occupancy  1.75 AVR if Light Rail is not fully operational at that time  33 long-term bicycle parking spaces for employees/hotel guests  12 short-term bicycle parking spaces for visitors  10 bicycles available for rental by hotel guests  Shower & locker  Space for future bicycle sharing station $69,343 for Downtown area transportation improvements $294,000 Colorado Esplanade contribution  Participate in formation of future geographic- based TMA Permitted to share parking  Yes  Yes 315 Colorado Avenue (Arclight Theater at Santa Monica Place) (2014)  1.75 AVR if Light Rail is not fully operational at that time  2.0 AVR from one year after the City’s issuance of a final certificate of occupancy or theater open to public if Light Rail is operational $120,000 Colorado Esplanade contribution $20,820 Colorado Avenue design costs $100,000 Downtown Wayfinding  Participate in formation of future geographic- based TMA  Yes  Yes 6 Development Agreements Average Vehicle Ridership Peak Hour Targets (AVR) Bicycle Parking & Amenities Transit/ Infrastructure Contribution Light Rail Shuttle Transportation Management Association (TMA) Shared Parking Facility Employee Parking Cashout / Financial Incentives -and- Transit Coordinator/ Information Center 1402 Santa Monica Blvd (Mini Dealership) (2014)  1.6 AVR commencing from issuance of Certificate of Occupancy  1.75 AVR by the first year after the City’s issuance of a Certificate of Occupancy if the Light Rail has been fully operational for at least one year  10 secure long-term employee bicycle parking spaces  10 convenient short- term customer/visitor parking spaces on ground floor  Free on-site shared bicycles (unless Bikeshare is within two blocks)  Shower & locker $189,424.74 for transportation infrastructure improvements  Participate in the formation and activities of TMA  Yes  Yes 1112 Pico Blvd (2014)  4 short-term bicycle parking spaces  Long-term bike parking spaces provided on site (one space per bedroom)  Bicycle tools and repair stand  2 free on-site shared bicycles (unless Bikeshare is within two blocks) $77,453.55 for transportation infrastructure improvements  Participate in the formation and activities of TMA Unbundled parking  Yes  Yes 1560 Lincoln Blvd (2015)  2.2 AVR  Short-term bicycle parking spaces provided on site  Long-term bike parking spaces provided on site  Lockers and showers provided on site $750,000 Transportation Impact Fee $80,000 Big Blue Bus contribution  Fund $50,000 toward area TMA formation Unbundled parking Shared parking for City use  Yes  Yes 7 1415 5th Street (2015)  2.2 AVR  Short-term bicycle parking spaces provided on site  Long-term bike parking spaces provided on site  Lockers and showers provided on site $90,000 Transportation Impact Fee $40,000 Big Blue Bus contribution  Fund $20,000 toward area TMA formation Unbundled parking Shared parking  Yes  Yes 1601 Lincoln Blvd (2016)  2.2 AVR  Short-term bicycle parking spaces provided on site  Long-term bike parking spaces provided on site $820,000 Transportation Impact Fee $80,000 Big Blue Bus contribution  Fund $50,000 toward area TMA formation Unbundled parking Shared parking for City use  Yes  Yes Santa Monica City Council January 26, 2016 Development Agreement Compliance Review 2 31 Development Agreements o 19 properties –completed o 18 –good faith compliance recommended o 5 properties –under construction o 7 properties –construction has not begun Development Agreement Compliance Review Annual Review 3 Development Agreement Compliance Review AVR Compliance –Transportation Demand Management TDM Plan modifications required o PCD Director approval o Colorado Center o Providence SJHC o Crossroads School o Review AVR data, mode-split, employee base o Focus on all non-SOV modes & travel behavior 4 Development Agreement Compliance Review AVR Compliance –Transportation Demand Management Trip-reduction measures o Financial incentives / marketing & employee outreach o Bikeshare/carshare o Expo Line o Transportation allowance & parking pricing o Citywide TMO –new in 2016 5 Development Agreement Compliance Review AVR Compliance –Transportation Demand Management Staff review pending –Agensys property o SMMC Chapter 9.53 – Transportation Demand Management Ordinance o Employee Trip Reduction Plan –annual requirement o Procedures for employer monitoring, enforcement, administrative appeals 6 Next steps o Finalize TDM Plan modifications –February 2016 o Agensys –recommendation on compliance –Spring 2016 o Annual report –January 2017 Development Agreement Compliance Review Annual Review