DRAFT MINUTES OF THE REGULAR MEETING OF CRA/LA, A DESIGNATED LOCAL AUTHORITY (SUCCESSOR TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF , ) HELD ON NOVEMBER 7, 2019

The Regular Meeting of the CRA/LA, a Designated Local Authority and Successor to the Community Redevelopment Agency of the City of Los Angeles, California was held at the Kenneth Hahn Hall of Administration, 500 West Temple Street, Room 374-A, Los Angeles, California, at 9:30 a.m. on November 7, 2019.

The meeting was called to order at 9:30 a.m. by Chair Semcken.

As Recording Secretary, Martha Arana recorded the minutes of the meeting.

Copies of meeting materials are available upon request and payment of nominal copying charges. Tapes of the meeting are available from CRA/LA for one year from the date of adoption of the minutes for the meeting.

ROLL CALL

Martha Arana, Recording Secretary, took the roll and noted the following present:

Present Mee Semcken, Chair Ed P. Reyes, Vice Chair Kelli Bernard, Board Member

Recording Secretary declared a quorum in attendance.

Also in attendance were:

Steve Valenzuela, Chief Executive Officer, CRA/LA Daniel Kahn, Sr. Real Estate Development Agent, CRA/LA Tom Webber, CRA/LA Legal Counsel (Goldfarb & Lipman)

Following Roll Call, Chair Semcken announced the Governing Board would recess to Closed Session for Item Nos. 9 and 10; and upon reconvening from Closed Session, the remaining items on the agenda (Item Nos. 1-8, 11 and 12) would be considered.

BY COMMON CONSENT, THERE BEING NO OBJECTION, CHAIR SEMCKEN, VICE CHAIR REYES & BOARD MEMBER BERNARD TOOK THE CLOSED SESSION, ITEM NOS. 9 AND 10 FIRST.

CONSENT ITEMS

1. APPROVAL OF SEPTEMBER 5, 2019 REGULAR MEETING MINUTES.

Vice Chair Reyes made a motion, seconded by Chair Semcken to approve Item No 1. Board Member Bernard was not present during vote taken on this item.

VICE CHAIR REYES & CHAIR SEMCKEN APPROVED ITEM NO. 1 BOARD MEMBER BERNARD WAS NOT PRESENT DURING VOTE TAKEN ON ITEM NO.1.

BOARD MEMBER BERNARD REQUESTED THAT NOS. 2 AND 3 BE MOVED TO THE ACTION ITEMS OF THE AGENDA.

ACTION ITEM

2. PROPERTIES RETAINED FOR FUTURE DEVELOPMENT. CONSIDER 24- MONTH EXTENSION TO OPTION AGREEMENT FOR MARLTON SQUARE, LRPMP ASSET ID NOS. 82 AND 505-509.

Daniel Kahn, Sr. Real Estate Development Agent, CRA/LA, provided a brief overview on the City’s request for an extension of two years to the Marlton Square Option Agreement. The initial three-year option term began in 2015; followed an 18-month extension in 2018. An additional 24-month extension will bring the total term of the agreement to six and a half years.

While the Exclusive Negotiating Agreement between the City and MLK Marlton (the City’s designated developer) has expired, the City and MLK Marlton continue negotiations to develop the site. In addition, MLK Marlton is also negotiating with Capri Investment Group, owner of the nearby Baldwin Hills , on the joint development of a bioscience facility.

Quintin E. Primo III, Chairman and Chief Executive Officer, Capri Investments Group, addressed the Governing Board and responded to questions on the status of the negotiations and development agreement for the bioscience center. Fred Leed, representing MLK Marlton, was also present at the meeting.

Damien Goodmon, Member of the Public, addressed the Governing Board.

On motion of Chair Semcken, seconded by Vice Chair Reyes, Item No. 2 was duly carried by the following vote: Ayes: Chair Semcken, Vice Chair Reyes and Board Member Bernard; Noes: None: Abstentions: None

ITEM NO. 2 WAS APPROVED BY THE FOLLOWING VOTE: AYES: CHAIR SEMCKEN, VICE CHAIR REYES & BOARD MEMBER BERNARD; NOES: NONE; ABSENTIONS: NONE.

3. PROPERTIES RETAINED FOR FUTURE DEVELOPMENT. CONSIDER 24-MONTH EXTENSION TO OPTION AGREEMENT FOR FORMER BETHUNE LIBRARY, LRPMP ASSET ID NO. 86.

Mr. Kahn provided a brief overview on the City’s request for a two-year extension to the option agreement for the former Bethune Library site (Site). In 2015, the option agreement was executed for a two-year term, followed by an 18-month extension that was approved by the Governing Board in 2017. On June 25, 2018, the Governing Board approved a second 18-month extension through January 11, 2020. The City is currently requesting an additional extension of 24-months through January 11, 2022. The extension will allow the City more time to complete negotiations with its designated developer (Bethune Hotel Ventures), allow for the conduct of necessary due diligence items, and for the exercise of the City’s option to acquire the property.

In January 2019, the City reissued a request for development proposals for the Site; and in May 2019, the City entered into an Exclusive Negotiating Agreement with Bethune Hotel Ventures. The Developer proposes acquiring the Site from the City for construction of a 167-room Courtyard by the Marriott Hotel and Resort with approximately 7,000 square feet of ground floor retail. The City and the Developer are currently negotiating a Disposition and Development Agreement.

Furthermore, based on the results of an environmental site assessment, the Los Angeles Regional Water Quality Control will require site remediation. The extent of the remediation and/or the requirements of the Los Angeles Regional Water Quality Board for remediation have not yet been established.

The following Members of the Public addressed the Governing Board:

• Maria Patiño Gutierrez (Submitted written correspondence) • Susana Corasero (Submitted written correspondence) • Olga Ford • Damien Goodmon • Sergio Vargas

Liciralia Ibarra, Chief Deputy, Planning & Land Use Policy, Office of Councilmember Marqueece Harris-Dawson, 8th District, also addressed the Governing Board and responded to questions by the Governing Board on affordable housing.

On motion of Vice Chair Reyes, seconded by Chair Semcken, Item No. 3 was duly carried by the following vote: Ayes: Chair Semcken, Vice Chair Reyes and Board Member Bernard; Noes: None: Abstentions: None

ITEM NO. 3 WAS APPROVED BY THE FOLLOWING VOTE: AYES: CHAIR SEMCKEN, VICE CHAIR REYES & BOARD MEMBER BERNARD; NOES: NONE; ABSENTIONS: NONE

4. REDEVELOPMENT PROJECT. CONSIDER ACTION ON (A) HOLLYWOOD BLVD/FRANKLIN AVE DISTRICT DESIGN GUIDELINES, (B) SUNSET BLVD DISTRICT DESIGN GUIDELINES, (C) HOLLYWOOD MOBILITY STRATEGY PLAN, AND (D) DENSITY TRANSFER PROCEDURES.

Steve Valenzuela, Chief Executive Officer, CRA/LA introduced the item and indicated that presentations by the two consultants who prepared the Hollywood and Franklin Avenue District Design Guidelines and the Sunset Blvd District Design Guidelines would be provided at today’s meeting.

Mr. Valenzuela added that the Community Redevelopment Agency of the City of Los Angeles (Former Agency) entered into a settlement agreement with Hollywood Heritage in 2007. The settlement agreement obligated the Former Agency to prepare design guidelines prepared for the Hollywood Blvd. Franklin Avenue and Sunset Blvd. Districts; an update of the Historic Survey; a transportation mobility plan; and a draft transfer of development rights ordinance.

These obligations were not fully discharged prior to dissolution of the Former Agency. Subsequently, Hollywood Heritage filed another claim that resulted in a 2018 supplemental settlement agreement with CRA/LA.

John Kaliski, AIA Principal, John Kaliski Architects, and Prakash Pinto, Pinto + Partners, presented a PowerPoint on the Draft Design Guidelines for Hollywood Blvd/Franklin Avenue and answered questions posed by the Governing Board. He was followed by Prakash Pinto, Pinto+Partners, with a presentation on the Draft Sunset Blvd. Design Guidelines.

The following Members of the Public addressed the Governing Board:

• Timothy Chang • Brad Cox • Donna Williams • Miki Jackson • Phillip Hart • Fran Offenhauser • Brian Folb • Ferris Wehbe • Oliver Baker • Ernie Zaferis • Schelley Kiah • Edgar Khalatian • Kris Karson • Beth Dorris • Christopher Manasserian (submitted written • Jocob Jauregui correspondence) • • Donna Tripp Todd Nelson (submitted written • Kevin Keller • correspondence) Craig Bullock • • Peter Gutierrez (submitted Joseph Mariani written correspondence)

On motion Chair Semcken, seconded by Board Member Bernard, the Governing Board bifurcated Item No. 4 to:

1) Approve the Hollywood Mobility Strategy Plan, and authorize the Chief Executive Officer of the CRA/LA to transmit the Plan to the City of Los Angeles with a recommendation that the City implement the Plan (Recommendation C); 2) Approve the Density Transfer Procedures, and authorize the Chief Executive Officer of the CRA/LA to transmit the Procedures to the City of Los Angeles (Recommendation D); and 3) Reschedule approval of the Hollywood Blvd/Franklin Avenue District Design Guidelines (Recommendation A); and approval of the Sunset Boulevard District Design Guidelines (Recommendation B), for consideration at a future meeting.

This item was duly carried by the following vote: Ayes: Chair Semcken, Vice Chair Reyes, and Board Member Bernard.

ITEM NO. 4 WAS BIFURCATED TO APPROVE RECOMMENDATIONS C AND D; AND TO RESCHEDULE RECOMMENDATIONS A AND B FOR CONSIDERATION AT A FUTURE MEETING, BY THE FOLLOWING VOTE: AYES: CHAIR SEMCKEN; VICE CHAIR REYES, AND BOARD MEMBER BERNARD; NOES: NONE; AYES: NONE

REPORTS (FOR INFORMATIONAL PURPOSES)

5. INTERIM REPORT ON CITY’S ENCUMBERANCE OF NON-HOUSING EXCESS BOND PROCEEDS (PERIOD ENDING JUNE 30, 2019).

6. SEMI-ANNUAL REPORT ON CITY’S USE OF LOCAL MATCH FUNDS (PERIOD ENDING SEPTEMBER 30, 2019).

7. CITY’S BIMONTHLY STATUS REPORT ON BUNKER HILL PARCEL Y-1 ENTITLEMENTS PROCESSING (DATED AS OF OCTOBER 4, 2019).

BY COMMON CONSENT, THERE BEING NO OBJECTION, CHAIR SEMCKEN, VICE CHAIR REYES AND BOARD MEMBER BERNARD RECEIVED AND FILED ITEM NO. 7.

CHIEF EXECUTIVE OFFICER’S REPORT

8. CHIEF EXECUTIVE OFFICER’S REPORT

Mr. Valenzuela reported on the following:

Department of Finance (DOF)

Amended ROPS 19-20 A determination letter from DOF expected by 11/15/2019.

City of Los Angeles Bond Expenditure Agreement – The City is making good progress on spending and encumbering excess bond proceeds. A Board Report on this matter is in the meeting materials. Next major milestone is in January 2020.

CRA/LA LRPMP – A brief update on disposition of real property assets • Properties Retained for Enforceable Obligations- The Buyer of 3900 W. Jefferson Blvd. site satisfied all conditions and escrow closed on 10/28/19. No remaining assets in this category. • Properties Retained for Future Development- The 1st/Boyle asset is in escrow, closing should occur by early December 2019. Three (3) assets optioned to the City of Los Angeles (i.e., Former Bethune Library, Marlton Square, and Parcel Y-1) remain to be sold. • For Sale properties - Two (2) assets remain to be sold (Parcel L in Bunker Hill, and MLK Shopping Center

CRA/LA Land Use Functions • City Ordinance accepting the transfer of CRA/LA land use functions is effective 11/11/19 • CRA/LA conducted three (3) transition briefings with City of Los Angeles staff during October 2019 on (a) over the counter permit clearances; (b)discretionary land use approvals; and, (c)administration of the Wiggins Settlement Agreement Development Guidelines.

RECESS

The meeting recessed to Closed Session at 9:39 a.m.

CLOSED SESSION

9. REAL PROPERTY NEGOTIATIONS – (GOVT. CODE SECTION 54956.8):

a. Conference with real property negotiators regarding price and terms for potential sale of an airspace lot on Bunker Hill Parcel L (rear portion, located generally at 220 S. Hope Street and identified as LRPMP Asset ID No. 571-B

b. Conference with real property negotiators regarding price and terms for potential sale of the encumbered fee interest located generally at 103rd and Compton (MLK Shopping Center) and identified as LRPMP Asset ID No. 272

10. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION (GOVT. CODE SECTION 54956.9(a)

RESUMPTION OF MEETING

The meeting reconvened at 10:10 a.m. with Vice Chair Reyes, and Chair Semcken being present. Board Member was present during the resumption of meeting.

Mr. Tom Webber, Legal Counsel, stated that no reportable actions were taken by the Governing Board.

PUBLIC COMMENT

11. Speaker’s form must be filled out and submitted to the Recording Secretary prior to the beginning of Public Comment. Each speaker is limited to two (2) minutes unless a time extension is allowed. Members of the public may address any item of interest within the subject matter jurisdiction of the Board.

The following Member of the Public addressed the Governing Board on Item No. 9a:

• Misty Sanford, Partner, Munger, Tolles & Olson LLP

The following Members of the Public addressed the Governing Board on Item 9b:

• Christopher Fahey, President, Chief Operating Officer, Haagen Company • Ben Resnik, Chair of the Government Land Use, Environmental & Energy Department

12. ADJOURNMENT

The meeting adjourned at 9:43 a.m.

______Martha Arana Recording Secretary