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SR 07-24-2018 3O City Council Report City Council Meeting: July 24, 2018 Agenda Item: 3.O 1 of 4 To: Mayor and City Council From: Andy Agle, Director, Housing and Economic Development, Economic Development Division Subject: Windward School Lease Amendment Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a sixth amendment to the Windward School lease agreement to modify the provisions regarding the shared use of school facilities and, 2. Authorize the City Manager to sign, as Landlord, Windward School’s Master Plan Land Use Application. Summary Since 1983, the City has leased a portion of City-owned property located at Sawtelle Boulevard and Palms Boulevard in Los Angeles to Windward School (Windward). The lease provides for shared use of recreational facilities and playfields. Windward intends to submit a Master Land Use Application (Application) to the City of Los Angeles for entitlements to update its original Master Plan approved in May 1999. Th e update, called the Master Plan Update Project, proposes to eliminate previously approved shared-use recreational facilities for the development of, among other structures, a new performing arts facility (Exhibit A). As a condition of approval, the City of Los Angeles requires the City of Santa Monica’s signature, as landlord, on the Application. The lease amendment would update the shared-use-of-facilities provisions currently in place to reflect the new facilities in the proposed Application. There will be no impact upon Santa Monica’s water operations from the proposed Application or lease amendment. Discussion Windward is a private, college-preparatory school serving grades 7 through 12. 2 of 4 Windward leases approximately seven acres of the City-owned Charnock Well property, the site of active water wells in the Charnock Groundwater Basin used by the City for the community’s water needs. The lease authorizes Windward to use the leasehold for school, recreational, and educational purposes and is subject to the primary water use of the City. The lease includes a shared-use provision with respect to Windward’s recreational facilities and playfields (Shared-Use Facilities) on the leasehold premises and on adjacent property owned by Windward. The Shared -Use Facilities include:  the gymnasium (indoor basketball and volleyball courts), outdoor courts, playfields, weight rooms, locker rooms, and athletic center;  restrooms closest to the recreational facilities and playfields;  parking areas; and,  athletic equipment ancillary to the use of the recreational facilities and playfields. The City is entitled to approximately 50 percent of the useful time of the Shared-Use Facilities on an annual basis, with a minimum average of 31 hours per week. The lease recognizes priority of use for the Shared-Use Facilities, with first priority given to activities, events, and programs operated by Windward for the direct benefit of its students and educational programs, and second priority to the City for its municipal recreational activities and programs, City-sponsored organizations, and permitted organizations. The City uses the facilities for adult basketball leagues and the Santa Monica Adaptive Recreation (SMARS) program, which prepares athletes for the Special Olympics of Southern California. The 1999-approved original Master Plan includes construction of a second gymnasium or aquatics center as a second phase. The lease specifies that upon Windward’s completion of the second phase, such facilities would be included as Shared-Use Facilities, with the minimum hours of use to increase to no less than 46 hours per week calculated on an annual basis. Windward has since re-evaluated its original Master Plan and determined that the planned second phase improvements are no longer compatible with the school’s needs and long-term vision. Windward plans to submit a land use application to the City of Los Angeles modifying the unbuilt second phase of the Master Plan to upgrade and expand existing classrooms and educational facilities and 3 of 4 construct a new performing arts center on its adjacent fee parcel in lieu of the second gymnasium or new aquatics center that was previously proposed. The Master Plan Update Project would also request an increase in Windward’s student enrollment to 625 students, from the 550-student maximum that is currently in place. Windward has requested that the City, as its landlord, sign the Application for the Master Plan Update Project. All proposed construction, construction staging, and utility connection would occur on Windward’s fee parcels and would not encroach on the air space above, nor the ground below, the City’s fee parcels. As the Master Plan Update Project proposes to eliminate the planned second-phase facilities included as Shared-Use Facilities, Windward has agreed to make the school’s multipurpose performance space, conference room, an d classrooms available for shared use with the City (Exhibit B). The proposed alternative facilities, along with the existing Shared-Use Facilities, would be available for use by the City for a set amount of hours per week for each facility. Windward would still be required to provide a minimum of 46 total hours per week of shared access, after construction of the facilities proposed in the Master Plan Update. In order to facilitate Windward’s plans and ensure the public benefit of the Shared-Use Facilities is maintained, staff recommends execution of the Application and a lease amendment to revise the Shared-Use Facilities provision to include the proposed new facilities as part of the shared-use arrangement with the City. Past Council Actions Meeting Date Description 11/14/89 (attachment C) Lease Agreement with Windward to Lease City-owned Property adjacent to the Charnock water well field. 06/28/05 (attachment D) Fourth Lease Amendment to extend lease term and to modify the Shared-Use Facility obligations. 02/24/15 (attachment E) Fifth Lease Amendment for the City’s consent for Windward to file a Zone Variance Plan with the City of Los Angeles. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the 4 of 4 recommended action. Prepared By: Erika Cavicante, Senior Development Analyst Approved Forwarded to Council Attachments: A. Windward Project Description 7.13.18 B. Shared Use Facilities Availability Chart C. Lease (June 1, 1990, Contract No. 5457 (CCS)) D. 4th - Lease Fourth Amendment Aug 30, 2006 E. 5th - Lease Fifth Amendment Oct 12. 2015 F. Windward School Oaks Initiative Statement 7.13.18 WINDWARD SCHOOL MASTER PLAN UPDATE PROJECT DESCRIPTION I. INTRODUCTION Windward School (“Windward”) is an independent, not-for-profit, college preparatory school for students in grades 7 through 12 that provides a dynamic, engaging education to approximately 550 students in the Mar Vista community in the City of Los Angeles. With the school’s Strategic Plan as their guide, Windward teachers, parents, and administrators work together to inspire students to be responsible, caring, well-informed, ethical, and prepared young adults. Windward has operated in its current location at the southwest corner of Palms Boulevard and Sawtelle Boulevard since 1982. Over the past 35 years, the school has gradually expanded and improved its campus, and it now comprises approximately 9.22 acres, including property leased from the City of Santa Monica. The Windward campus includes northern and southern portions of campus joined by a Los Angeles County Flood Control District flood channel known as the Sepulveda Channel. Windward also owns a parcel adjoining its campus currently developed with a two-story apartment building and surface parking lot. In May of 1999, the City of Los Angeles granted Windward School approval of a Master Plan to improve its campus in a two-phase development project by City of Los Angeles Case No. ZA-98-0893-ZV-YV. The first phase of the approved Master Plan comprised an approved total of 55,251 square feet of new construction, including new classrooms, a library, a visual arts pavilion, administrative offices, and upgrades to existing school facilities. Upon completion of the first phase of the Master Plan development, Windward School facilities on the northern and southern portion of campus totaled 90,147 square feet. The second phase of the approved Master Plan included an approved total of 60,608 square feet of new construction to build new auditorium and gymnasium facilities, along with the removal of an existing apartment building owned by Windward School. The apartment building has not yet been removed, and the approved improvements have not yet been built. Over the course of time since that approval was granted, Windward School has determined that the improvements approved for the second phase of its Master Plan no are no longer compatible with its needs and its vision for the Windward School campus. This Master Plan Update Project improves upon that previously- approved development, and reflects changes made in response to valuable feedback Windward School received from its neighbors and the surrounding community regarding the second phase of the Master Plan. By its proposed Master Plan Update Project, Windward School proposes to update its previously approved Master Plan to upgrade and expand some of its existing classrooms and educational facilities, construct a new performing arts facility, and increase its enrollment to allow the school to continue to provide an excellent educational experience for its students. II. PROJECT LOCATION The campus of the Windward School is located at the southwest corner of the intersection of Palms Boulevard and Sawtelle Boulevard in the Mar Vista community of the City of Los Angeles. The Windward campus is comprised of several parcels located at 11340-50 Palms Boulevard, 3481-85 Sawtelle Boulevard, and several parcels located along Westminster Avenue including 11375 Westminster Avenue. The Windward campus includes northern and southern portions joined by a Los Angeles County Flood Control District facility known as the Sepulveda Channel. The northern and southern portions of campus are connected by two pedestrian bridges that extend across the Sepulveda Channel. The northern portion of the Windward campus consists of one parcel of approximately 1.49 acres with frontage along Palms Boulevard, owned by Windward School. This portion of the campus is developed with one- and two-story buildings housing classrooms, administrative offices, and other educational facilities including a small black-box theater, as well as a surface parking lot. The southern portion of the Windward campus consists of several parcels and portions of parcels that are leased by W indward School from the City of Santa Monica under a long-term ground lease, totaling approximately 7.26 acres. Windward School also owns an additional parcel connected to the southern portion of campus of approximately 0.47 acres that is currently developed with a two-story apartment building. In total, the Windward campus comprises approximately 9.22 acres. The Windward campus is bounded by Palms Boulevard to the north and Sawtelle Boulevard to the east; portions of the Project Site extend to Westminster Avenue to the south. To the west, the Project Site is bordered by residential uses located along Butler Avenue, the Sepulveda Channel, and Butler Avenue. III. PROJECT COMPONENTS Windward School’s proposed Master Plan Update project includes the following components: A. Upgraded and Expanded Classroom Facilities The northern portion of the Windward campus is currently developed with two main classroom buildings, one containing classroom space, and the other containing classroom, theater, and school administrative office space. As part of its Master Plan Update Project, Windward proposes to renovate and expand the classroom, theater and administration building. This renovation and expansion will include upgrades to school’s existing black box theater, the addition of visual arts educational facilities including a new rehearsal space, a new dance room, and a new tech classroom, and administrative office space. A new pedestrian bridge will replace an existing wood pedestrian bridge to provide greater connectivity. Demolition of parts of the existing building will result in a loss of 12,964 square feet. The renovation and expansion of the existing building will consist of new classroom cluster of approximately 22,628 square feet. Upon completion, the renovation and expansion will result in approximately 9,664 net new square feet. B. Arts & Innovation Center The key component of Windward’s Master Plan Update Project is a revision to the proposed auditorium that was originally approved in 1999. Windward has carefully considered the best location and design of a performing arts facility and has designed a new Arts & Innovation Center of approximately 58,187 square feet to be located on the site of the existing apartment building and related parking lot owned by the school. The Arts & Innovation Building will consist of a performing arts facility that will include a 250-seat auditorium and a theater space with capacity for 189 seats. The structure will be approximately 45 feet high and will be connected by a pedestrian footbridge to the existing gymnasium and science center educational facilities. C. Student Gathering Plaza The Master Plan Update Project includes a landscaped plaza in between the existing and proposed pedestrian bridges that will connect the campus over the Sepulveda Channel. The plaza will provide a student gathering space convenient to facilitate outdoor learning opportunities. Two concrete paths would provide the main points of access from the south side of the campus onto the plaza. D. Pedestrian Circulation In order to improve the connectivity between the northern and southern portions of the Windward campus, the Project includes the removal and replacement of an existing pedestrian bridge across the Sepulveda Channel. The new, broader pedestrian bridge will allow for more students, faculty, and staff to cross between the northern and southern portions of campus and will enhance the aesthetics of the campus. E. Vehicle Access, Circulation, and Parking Windward School currently provides 152 parking spaces in two surface parking lots, one accessed from Sawtelle Boulevard and the other from Palms Boulevard. In the Spring of 2018, and on a separate path, the school plans to reconfigure the existing Palms lot to maximize the efficient use and circulation of the lot, resulting in a total number of 150 existing spaces. Access and circulation of the parking lot on Sawtelle Boulevard will be maintained, but will be augmented with additional spaces located on the site of the removed apartment building during construction phases. F. Enrollment Increase Windward currently operates under a maximum enrollment of 550 students pursuant to a condition of the operating approval ZA-98-0983-ZV-YV. Windward requests an increase in permitted enrollment to 585 students upon approval of the Master Plan Update Project, which would functionally result in an average daily attendance of approximately 550 students. Windward also requests an increase to an ultimate maximum enrollment of up to 625 students upon the projected completion of the Master Plan Update Project improvements in 2022, provided that Windward implements transportation demand management measures to ensure that any increase in actual enrollment above 585 students does not result in any new trip generation.