THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF ,

M E M O R A N D U M 5

DATE: OCTOBER 7, 2010 HW 6990 100600 TO: CRA/LA BOARD OF COMMISSIONERS

FROM: CHRISTINE ESSEL, CHIEF EXECUTIVE OFFICER

RESPONSIBLE PARTIES: LESLIE LAMBERT, REGIONAL ADMINISTRATOR NEELURA BELL, PROJECT MANAGER KIP RUDD, SENIOR PLANNER

SUBJECT: BLVD6200 Sign Program. Consider the environmental impacts of the project, adopt environmental findings, variation from the Design for Development for Signs in , and Sign Covenants and Agreements with Clarett Hollywood LLC to permit the installation of seven supergraphic signs at the BLVD6200 project located in the 6200 block of . HOLLYWOOD REDEVELOPMENT PROJECT AREA HOLLYWOOD & CENTRAL REGION (CD 13)

RECOMMENDATIONS

That the CRA/LA Board of Commissioners:

1. Adopt a Resolution certifying that it has reviewed and considered the environmental effects of the proposed project as shown in Environmental Impact Report ENV-2005- 7118-EIR (“EIR”), prepared and certified by the City of Los Angeles Department of Planning, and adopt the Environmental Findings, the Statement of Overriding Considerations, and the Mitigation Monitoring and Reporting Program; and

2. Approve variations from Section IV.K.2e of the Amended Design for Development for Signs in Hollywood (“Sign DFD”) regarding the number Supergraphic signs on a building and location of Supergraphic signs in relation to one another and to other signs on the Project; and

3. Authorize the Chief Executive Officer, or designee, to execute a Sign Structure Covenant and Agreement with Clarett Hollywood, LLC (“Applicant”), and take all necessary actions relating thereto, in order to permit the installation of seven supergraphics signs on a new commercial/residential mixed-use development (“BLVD 6200 Project”) to be located at 6139-6240 Hollywood Boulevard, 6140-6158 Carlos Avenue, 1614-1736 Argyle Avenue, 1631-1649 El Centro Avenue, and 1607- 1631 Vista del Mar Avenue (“Site”) in the Hollywood Redevelopment Project Area (“Project Area”); and AUTHORIZATION TO EXECUTE SIGN COVENANT AND AGREEMENTS FOR THE BLVD 2 6200 PROJECT

4. Approve a deviation from the prototype sign agreement contained in the Sign DFD to delete the 10-year time limit with respect to the BLVD 6200 Project sign program.

SUMMARY

This action recommends adoption of a resolution making certain environmental findings (See Attachment A—Environmental Resolution), approval of a variation from the CRA/LA’s Design for Development for Signs in Hollywood (“Sign DFD”), approval of a modification to the standard sign agreement related to the effective term of the agreement, and authorization to execute a two-party sign structure agreement with the applicant that allows for a future sign company to install and operate the supergraphic signs if that company consents to the terms of this sign agreement and makes all required representations.

These actions would allow the installation of seven Supergraphic Signs as well as additional tenant, parking, project identification, and wayfinding signage on the proposed mixed-use BLVD 6200 Project to be developed on a seven acre site located on a portion of two blocks bounded by Argyle Avenue to the west, Carlos Avenue on the north, El Centro Avenue on the east and Vista del Mar Avenue to the south, with Hollywood Boulevard bisecting the Site. (See Attachment B – Site Map.)

PREVIOUS ACTIONS

Initial actions.

DISCUSSION & BACKGROUND

Location

The Supergraphics will be located on a major, new, mixed use development to be located on an approximately 7.3 acre site along Hollywood Boulevard between Argyle and El Centro Avenues. The site is bisected by Hollywood Boulevard. The project will be developed in two phases with the first phase located on the north side of Hollywood Boulevard and the second phase on the south side. The Redevelopment Plan designates the property as “Regional Center Commercial” and the property is zoned C4-2D-SN. The property is currently occupied by surface parking lots that serve primarily the Pantages Theater and vacant buildings.

The Project on which the signage will be placed will include four residential buildings on a single commercial base in Phase 1 and four residential buildings on a single commercial base in Phase 2. The Project will contain two large plaza areas facing one another on either side of Hollywood Boulevard. From the casual observer, the buildings will appear as separate and distinct. The seven supergraphic signs will be placed on four of the eight buildings. With respect to each of those four buildings, no more than two supergraphic signs will be installed, and they will be installed on opposite sides of the building (except that a small portion of one sign wraps around), in compliance with the Sign DFD from a visual perspective. However, because the buildings share common podiums, the City Department of Building and Safety considers them one structure from a technical perspective.

The Project will contain a total of approximately 175,000 square feet of ground floor commercial retail and 1,042 rental units.

AUTHORIZATION TO EXECUTE SIGN COVENANT AND AGREEMENTS FOR THE BLVD 3 6200 PROJECT

Sign Program Description

The proposed Sign Program includes seven advertising signs ranging from 1,200 square feet to 1,976 square feet in area with a total area of 10,487 square feet. (See Attachment C -- Proposed Sign Program.) The Supergraphic Sign structures will be located at the edges of the building and will be oriented toward Hollywood Boulevard and the central plazas.

The signs comply with the minimum 1,200 square foot area requirements set forth in the Sign DFD, and have a total sign area approximately 2,168 square feet less than the 12,655 square feet allowed by the sign reduction credits approved by the City Planning Department on April 28, 2008. The written message and/or logo on each proposed Supergraphic sign will not exceed 15 percent of the total area of the sign, including logos.

In addition, the Project would contain approximately 6,564 square feet of tenant, wayfinding, parking and project identification signs. The tenant, wayfinding, and Project identification signs of the proposed Sign Program are consistent with the design and other standards contained in the Sign DFD. The Sign DFD would permit a maximum sign area of 9,454 square feet.

All signs have been approved by the City Planning Department.

Community Benefits of the Project

Although the following community benefits are not part of the Applicant’s obligations under the sign agreement, it is currently anticipated that the Blvd 6200 Project will include the following features:

• Ten percent of the units will be affordable housing (2.5% low income and 7.5% moderate income). • Almost 2,700 parking spaces located in a fully subterranean parking structure. • About 650 of the parking spaces will be for the Pantages Theater use. • At least 65 of the Pantages Theater spaces will be available for Metro “park and ride” transit users when the theater is dark. • 10 parking spaces set aside for “car share” vehicles. • $1.5 million contribution to the Hollywood Mobility Trust Fund to be used to improve the quality of life and foster a variety of mobility options for Hollywood residents. • An easement to allow for future construction of an additional portal access point on the north side of Hollywood Boulevard to the Hollywood/Vine Metro station. • Removal of four billboard structures and eleven pole signs. The project will be LEED© Certified.

Modification to Standard Sign Agreement and Variances from Sign DFD

The Applicant requests a number of modifications to the standard Sign Agreement and variances from the provision of the Sign DFD.

AUTHORIZATION TO EXECUTE SIGN COVENANT AND AGREEMENTS FOR THE BLVD 4 6200 PROJECT

Rather than the standard tri-party agreement among the CRA/LA, the Applicant, and a sign company, the Applicant requests execution of a two-party sign structure agreement, currently without a third-party sign company. Staff is recommending that this proposed sign covenant and agreement include a provision requiring that any future sign company selected to install and operate the supergraphic signs consent to all terms of this agreement.

The Applicant also requests elimination of the standard 10-year time limit for sign agreements. Unlike CRA/LA’s sign agreements, the City’s signage permits typically do not have expiration dates. Under the City’s Hollywood Signage SUD, supergraphic signs may be approved by the City without having to fully comply with the City’s requirement to remove billboard/pole signs, if and only if such supergraphic signs are subject to a sign agreement with the CRA/LA. Typically, in that situation, once the CRA/LA’s sign agreement expires, the City’s approval of the supergraphic sign, which approval would not terminate otherwise, is terminated along with the expiration of the CRA/LA sign agreement. Part of the reason why CRA/LA’s sign agreements contain a 10-year time limit is because CRA/LA wants to limit the life of supergraphic signage when they are approved without the full take-down. Removal of billboard and pole signs is a major objective of the City’s sign regulations for Hollywood. CRA/LA’s limitation on the term of supergraphics that don’t meet this objective gives the City the opportunity to match CRA/LA’s entitlement by disallowing the continued installation of such supergraphics under the City’s approval.

In this case, the proposed Sign Program fully complies with the City’s billboard/pole sign reduction requirement, so City has granted signage rights for the Sign Program that do not expire. To match the City’s entitlement, CRA/LA staff recommends removing the 10-year limit due to the fact that the Sign Program fully complies with the take-down requirement.

Because the residential towers will be developed on a single podium level, the City Department of Building & Safety considers the buildings as one structure. As a result, a variance from Section IV.K.2e of the Sign DFD is required to allow more than two supergraphic signs to be located on a single building in phase 1 (Signs A, B, C, and H) and in phase 2 (Signs D, E, and F); and to permit more than one Supergraphic on the same building that may be visible at the same time, in this case, Signs B and H in Phase 1 and Sign E and F in Phase 2 travelling west on Hollywood Boulevard; Signs A and C in Phase 1 travelling east on Hollywood Boulevard; and Signs C and H in Phase 1 facing each other across a plaza on the Phase 1 northern portion of the Site.

In addition, the Applicant is requesting a variance allowing the placement of supergraphic signs on facades that contain other signs as well. The Project includes retail frontage and retail signage on three facades on the North Block and four facades on the South Block. The Sign DFD does not permit supergraphic signage on the same façade as tenant signage, thus creating a practical difficulty. Specifically, the only façade of the building that would not include other signage is the Northeast façade facing an historic residential neighborhood, which would clearly be an inappropriate location for a supergraphic sign. As such, the requested exceptions are needed to avoid the unnecessary hardships and practical difficulties.

Sign Covenant and Agreement

Section V.C of the Sign DFD allows approval of a Supergraphic Sign only by execution of an agreement among the property owner, sign company, and CRA/LA.

AUTHORIZATION TO EXECUTE SIGN COVENANT AND AGREEMENTS FOR THE BLVD 5 6200 PROJECT

The proposed Sign Covenant and Agreement is generally consistent with the prototype document the Board approved as part of the Sign DFD and reflects revisions consistent with recently approved Agreements. However, staff recommends the following further modification:

o Parties to Agreement. Allow for the execution of a two party agreement between the Applicant and CRA/LA; and require that any sign company, if selected by the Applicant to install and operate the sign structures, consent to all the terms and make all the representations contained in this agreement.

o Time limit. Eliminate the standard 10-year term of the Sign Agreement.

To clarify the Board’s intent, the Sign Agreement includes the provision that specifically states that no other signs may be placed on the Site that are not depicted on the Sign Program attached to the Sign Agreement and installation of any Supergraphic sign prior to execution of the Sign Agreement is subject to liquidated damages.

Remaining provisions are consistent with the standard sign agreement and previously approved refinements.

Exceptional Circumstances and Unique Conditions

The Project on which the signage would be placed includes building tower elements on a single podium base. The towers will appear as separate and distinct buildings; however, because the buildings are located on common podiums, the City Department of Building and Safety consider them a single structure. The Project is located on a large development site with storefronts and parking access located on most building frontages. These frontages require signage to identify commercial tenants, parking access, and project identification that would significantly limit the location of supergraphic signage.

Request for Variations

The proposed Supergraphic Signs do not comply with Section IV.K.2e of the Sign DFD. A variation is required in order to allow more than two Supergraphic Signs to be located on a building, and to allow Supergraphic signs to not be located on opposite walls of the building and to be viewed at the same time from any location by passing motorists and pedestrians. (See Attachment D -- Variation Resolution.)

Other Approvals and Entitlements

CRA/LA approval of the Sign Covenant and Agreement does not include approval of the proposed signs by other City departments or agencies. The Property Owner must obtain the following approvals, among others, prior to implementation:

Department of City Planning

The Department of City Planning approved the Supergraphic Sign program on May 4, 2009.

Department of Building and Safety:

AUTHORIZATION TO EXECUTE SIGN COVENANT AND AGREEMENTS FOR THE BLVD 6 6200 PROJECT

The Building and Safety Department will review the new support structures on which the advertising panels are proposed to be located.

SOURCE OF FUNDS

No funding is required for this action.

PROGRAM AND BUDGET IMPACT

The proposed action is consistent with the adopted FY2011 Budget and Work Program for the Hollywood Redevelopment Project Area.

There is no fiscal impact to the City’s General Fund as a result of the recommended actions.

ENVIRONMENTAL REVIEW

The City of Los Angeles was the Lead Agency pursuant to the California Environmental Quality Act (CEQA) for the preparation of the EIR for the proposed Project. On July 31, 2007 the Planning Commission certified the Final EIR, made written findings for each significant environmental effect, adopted a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program. The CRA/LA is a Responsible Agency under CEQA. The CRA/LA must also make findings and adopt a Statement of Overriding Considerations with respect to the Project as required under Public Resources Code Section 21081 and State CEQA Guidelines Section 15096. (See Attachment A -- Environmental Resolution and its Exhibits.)

Christine Essel Chief Executive Officer

By:

______Calvin E. Hollis Chief Operating Officer Real Estate and Economic Development

There is no conflict of interest known to me which exists with regard to any CRA/LA officer or employee concerning this action.

ATTACHMENTS:

Attachment A - Environmental Resolution Attachment B - Location/Site Map Attachment C - Proposed Sign Program Attachment D - Variation Resolution Attachment E - Project Summary Report