CRA/LA, A DESIGNATED LOCAL AUTHORITY (Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, CA)
M E M O R A N D U M
DATE: NOVEMBER 2, 2017 2
TO: GOVERNING BOARD
FROM: STEVE VALENZUELA, CHIEF EXECUTIVE OFFICER
STAFF: BARRON MCCOY, CHIEF OPERATING OFFICER
SUBJECT: Land Use Approval. 1020 S. Figueroa Street – Non-Monetary Action. Consideration of Environmental Impact Report (ENV-2015-1159-EIR); and, approval of a 236,752 square foot Transfer of Floor Area Ratio (“TFAR”) to allow the construction of a mixed-use development consisting of a 29-story hotel and a 49-story residential tower, located at 1020 S. Figueroa Street in the City Center Redevelopment Project Area.
RECOMMENDATIONS
That the Governing Board take the following actions:
1. Adopt a Resolution (Attachment A) certifying that the Governing Board has reviewed and considered the information contained in the City of Los Angeles’ Environmental Impact Report ENV-2015-1159-EIR (“EIR”) for the 1020-1060 S. Figueroa Street Project and adopting a Mitigation Monitoring and Reporting Program, making certain findings regarding the environmental impacts of the project and adopting a Statement of Overriding Considerations pursuant to California Environmental Quality Act (“CEQA”) Guidelines set forth in California Code of Regulations Section 15096(f); and
2. Approve the Transfer of Floor Area Ratio (TFAR) of not more than 236,752 square feet, pursuant to Sections 512.5 and 520 of the City Center Redevelopment Plan (Redevelopment Plan), by making the necessary determinations which will permit the development of a mixed-use development consisting of a 29-story hotel and a 49- story residential tower.
SUMMARY
Jia Yuan USA Co., Inc. (Developer), is requesting that CRA/LA approve a transfer of floor area of 236,752 square feet to allow for the development of a 936,712 square foot mixed-use development consisting of one 29-story hotel with 300 rooms and a 49-story residential tower with 435 condominiums and approximately 58,959 square foot retail/commercial space and approximately 52,000 square feet of open space, located at 1020 S. Figueroa Street (Project Site) (see Attachment A, Site Map) pursuant to the City Center Redevelopment Plan.
The CRA/LA has authority under Section 512.5 of the Redevelopment Plan and Section 14.5.6.B of the Los Angeles Municipal Code to initiate the procedures that will effectuate Transfers of Floor Area Ratio for transfers of 50,000 square feet of floor area or more. Pursuant to Section 14.5.6.B of the City of Los Angeles Municipal Code (“Municipal Code”), the Project is requesting 1020 – 1060 S. Figueroa Street PAGE 2
approval of a Transfer Plan for 236,752 square feet from the City-owned portion of the Los Angeles Convention Center’s available floor area, from Block 106 bounded by LA Live Way to the west, 12th Street to the east, Pico Boulevard to the south and Chick Hearn Court to the north. As a condition of the approval, the Project proposes a Public Benefit Payment of approximately $7,216,612.
Pursuant to Municipal Code Section 14.5.6, the CRA/LA Governing Board shall review a report issued by the Administrator (Chief Executive Officer) to approve, approve with conditions or deny a request from an applicant for Transfer of Floor Area Ratio over 50,000 square feet based on specific findings outlined in the Municipal Code and with the condition of approval that a Public Benefit Payment and Transfer Payment will be paid prior to the project proceeding. Only after the CRA/LA Governing Board approves the request can the City Planning Commission consider the request and take action to approve, approve with conditions or deny the Transfer of Floor Area Ratio. After City Planning Commission takes action, the request is forwarded to the City Council for approval and then to the Mayor.
Staff believes that the Project is well designed, emphasizing green streetscapes and walkability principles. Providing the TFAR for the Project will further contribute to the creation of a livable and workable Downtown Los Angeles where residents will live close to work, transit and recreational activities.
The CRA/LA has the discretion under Sections 512.4 and 512.5 of the Redevelopment Plan to grant a Transfer of Floor Area Ratio for developments should the CRA/LA deem that the Transfer of Floor Area Ratio meets the criteria in Section 512.4 and provisions of Article 4.5 of the Los Angeles Zoning Code. This Project satisfies the criteria stated and a Transfer of Floor Area Ratio will allow the proposed Project to move forward expeditiously.
DISCUSSION & BACKGROUND
Location The Project Site consists of parcels totaling approximately 117,612 square foot (2.7 acres); is L- shaped; and is currently utilized as the Lux City Center Hotel (formerly the Holiday Inn) and a surface parking lot. The site has no structures of historic or architectural significance. The Project Site is generally bound by Figueroa Street (west), Flower Street (east), Olympic Boulevard (north) and 11th Street (south).
Developer Entity Jia Yuan USA Co., Inc. is one of the project companies of Shenzhen Hazens Real Estate Group Co. Ltd, which is one of China's top real estate enterprises. Established in 1996, the company focuses on high quality, mixed-use projects in gateway markets with a commitment to unparalleled design and community engagement. Jia Yuan USA Co., Inc. currently has three projects in the US including the Sheraton Gateway LAX Hotel; a new San Gabriel Starwood Hotel; and, its flagship, 1020 S. Figueroa Street, in Downtown Los Angeles.
Description, Project Context and Project History The Developer is proposing to construct a 936,712 square foot mixed-use development consisting of a 29-story hotel with 300 rooms; a 49-story residential tower with 435 condominiums; approximately 58,959 square feet of retail/commercial space; and approximately 52,000 square feet of open space at 1020 S. Figueroa Street. The CRA/LA has authority under the Redevelopment Plan to approve transfers of floor area of more than 50,000 square feet.
1020 – 1060 S. Figueroa Street PAGE 3
Adjacent to the Project Site and to the west across S. Figueroa Street is LA LIVE. Immediately south of LA LIVE and just southwest of the Project Site, is the Staples Center Arena, a multipurpose sports arena which is home to the Los Angeles Clippers, Los Angeles Kings, Los Angeles Lakers and Los Angeles Sparks. Further to the southwest is the Los Angeles Convention Center. To the north of the Project Site across W. Olympic Boulevard are several high‐rise mixed‐use residential and commercial buildings. These include the 28‐story 717 Olympic project which includes apartments over six stories of parking and ground floor commercial uses. To the northwest is a car wash building that also encompasses two restaurants and a ticket agency. Further north along S. Figueroa Street across W. Olympic Boulevard is the 13‐story Hotel Figueroa. To the immediate east of the Project Site fronting W. Olympic Boulevard is the 11‐story Petroleum Building, a designated City Cultural‐Historic Monument (HCM No. 596), which includes office above ground level commercial uses. Also immediately east of the Project fronting on S. Flower Street is a surface parking lot and the one‐story El Cholo restaurant, with mid‐and high‐rise multi‐family residential and mixed use buildings further east across S. Flower Street. To the south of the Project Site across 11th Street, is Oceanwide Plaza a high rise mixed‐use residential, commercial, and hotel project that is currently under construction and is estimated to be completed in 2019. Further south is another mixed‐use project under construction, known as Circa (1200 Fig Project) and is estimated to be completed in 2017.
The proposed project is located within the South Park community of the City Center Redevelopment Project Area, which is in the southwest portion of Downtown Los Angeles, and is comprised of a mix of medium and high density housing, hotels, sports and entertainment venues and commercial/retail uses. The Project Site is located within the boundaries of the Downtown Design Guide, which seeks to promote walkability and livability in Downtown neighborhoods by emphasizing pedestrian orientation and street activation. CRA/LA staff has reviewed the project and determined that it conforms to the Downtown Design Guide.
Findings to Allow Higher Maximum Floor Area Pursuant to Section 512.4 of the Redevelopment Plan, CRA/LA may permit projects to exceed maximum floor area ratios set forth in Section 512.1 as long as the transfers are consistent with the five criteria below.
1. Higher Density Development is appropriate in terms of location, access, and compatibility with other existing development and consistent with purposes and objectives of the Redevelopment Plan.
The proposed promotes community revitalization in the area by replacing the existing City Center Lux Hotel complex and developing the site in a manner that meets the site’s economic potential. Originally the Holiday Inn, the City Center Lux Hotel complex was constructed in 1964 and has 175 hotel rooms and a large surface parking lot. Since that time, the surrounding area has been developed with the Los Angeles Convention Center, Staples Center and LA Live. It is a priority of the City Center Redevelopment Plan and the City of Los Angeles to increase the hotel rooms in close proximity to the Los Angeles Convention Center to accommodate more conventions and tourism. The proposed project will include 300 hotel rooms, meeting spaces and other accessory uses such as banquet halls and restaurants.
2. Floor Area may only be transferred from parcels or portions thereof and parcels or portions thereof which are within, respectively, The Historic Downtown, City Markets or South Park Development Area of the Project Area.
1020 – 1060 S. Figueroa Street PAGE 4
The proposed Project is located within South Park portion of the Center Redevelopment Project Area.
3. The Floor Area on any parcel shall not exceed the Floor Area Ratio set forth in the applicable City Zoning Ordinance in effect at the time the transfer is made. The underlying zoning of the Site is C2-4D-O with a height district classification that allows a Floor Area Ratio of 6:1 for this site. The proposed Project would be eligible for an exception under which the Floor Area Ratio could be increased to 13:1. The proposed Transfer of Floor Area Ratio would allow the development to be built to 8.03.1, thus not exceeding the Floor Area Ratio established by the City Zoning Ordinance.
4. Transfers of floor area to parcels with reasonable proximity or direct access to public or private rapid transit stations shall be particularly encouraged.
The Project is within a reasonable walking distance, ⅓ mile, of the Metro Pico Station which serves the Blue and Expo Lines and is one stop from the 7th & Metro Station, connecting to the Red and Purple Lines. The Metro Red Line, from this station, provides access to Hollywood and the San Fernando Valley with connections to the Orange Line Servicing the west and northwest valley. In addition, the Metro Red and Purple Lines provide access to Union Station with connection access to Metrolink, Amtrak, Metro Gold Line (Pasadena & East Los Angeles) and bus and regional services. The Red and Purple Lines also provide connection access to the Metro Blue Line to Long Beach and Metro Expo Line to Culver City. There are 14 different Metro bus lines within ½ mile proximity of the site.
The site is also within close proximities to numerous Freeways, including Interstates 5, 10 & 110 and the Hollywood Freeway (101).
5. Transfers of the floor area from parcel on which buildings of historic, architectural or cultural merit are located shall be particularly encouraged where the transfer can reasonably be expected to further the goal of preservation of such buildings.
The floor area donor site is the City-owned portion of the Los Angeles Convention Center, which prevents this objective from being satisfied. The need for such a large transfer of floor area required for this project made it extremely difficult, if not impossible, to find numerous historic donor sites to satisfy this objective. The Community Benefits Package, however, includes funding towards Pershing Square Park and the Broadway Streetscape Master Plan. Both are important amenities to Downtown and the Historic Core where many of the City’s historic buildings are located.
Community Benefits The City of Los Angeles Municipal Code (Municipal Code) Section 14.5.7(B)(2)(b)(1) stipulates that as a condition of approval of a transfer of more than 50,000 square feet of floor area, the transfer shall provide for a Public Benefit Payment in conformance with Section 14.5.9 of the Municipal Code. Additionally, since the Floor Area Donor Site is the City-owned portion of the Los Angeles Convention Center, a TFAR Transfer Payment is also required by Section 14.5.10.
A Public Benefit must serve the public purpose, such as providing for affordable housing; public open space; historic preservation; recreational, cultural, community and public facilities; job training and outreach program; affordable child care; streetscape improvements; public art programs; homeless service programs; and public transportation improvements in the area. 1020 – 1060 S. Figueroa Street PAGE 5
The Proposed Development requests of a TFAR by Density Variation of 236,752 square feet results in a public benefit equivalency of approximately $7,216,612 that would be used for public benefits purposes in the area. The Developer has requested the ability to designate the beneficiaries of the Public Benefit Trust Fund payment, which is allowed under Section 14.5.9.B of the Municipal Code, with the approval of the City Council. Remaining funds will be deposited into the City’s Public Benefit Payment Trust Fund. There are four proposed beneficiaries of these funds, which are the following:
1. Council District 14 Public Benefit Trust Fund ($2,179,612). Funds would go towards leveraging funds for the construction of affordable housing within the council district.
2. Los Angeles Streetcar ($2,000,000). Funds would go towards the streetcar planning and design, engineering, construction, advocacy and administration.
3. Pershing Square Renewal ($1,537,000). Funds would go towards the Department of Recreations and Parks for the purposes annual maintenance cost of the Spring Street Park.
4. LANI/Bring Back Broadway ($500,000). Funds would go towards the revitalization efforts currently underway on Broadway between 2nd and 10th Streets in the Historic Core of the City Center Redevelopment Project Area.
5. Downtown Women’s Shelter ($500,000). Funds would go towards the furthering services provided in providing permanent supportive housing for homeless women in their downtown shelter.
6. The People Concern (formerly LAMP) ($400,000). Funds would go towards furthering services of assisting individuals with permanent housing, mental health services and emergency shelter in their downtown facility.
7. Lave Mae ($100,000). Funds would go towards providing mobile hygiene services into the portion of the Project Area with high rates of homelessness. Buses previously used by Metro and other entities are equipped with shower and bathroom facilities to provide the services.
These public benefits created by the proposed Project will advance the major objectives of the Redevelopment Plan to eliminate and prevent the spread of blight, and to rehabilitate and redevelop the Project Area. Additionally, under Section 14.5.10 of the Municipal Code, the Developer will contribute $2,249,517 into the Public Benefit Trust Fund as a Transfer Payment. No Floor Area Ratio Rights will be transferred or vested until the Public Benefit Payment and Transfer Payment are paid in full. Payment must be made on or before the earlier of (i) the issuance of building permits for the Project or (ii) 24-months after the final approval of the Transfer and the expiration of any appeals or appeals period or the Project.
SOURCE OF FUNDS
No funding is required for this action.
CRA/LA, A DESIGNATED LOCAL AUTHORITY (Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, CA)
Attachment A
RESOLUTION NO. ______
A RESOLUTION OF THE CRA/LA, A DESIGNATED LOCAL AUTHORITY (SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA), CERTIFYING THAT THE AGENCY HAS CONSIDERED THE INFORMATION CONTAINED IN THE CITY OF LOS ANGELES’ ENVIRONMENTAL IMPACT REPORT FOR THE 1020 – 1060 S. FIGUEROA STREET PROJECT IN THE CITY CENTER REDEVELOPMENT PROJECT AREA AND ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM, MAKING CERTAIN FINDINGS REGARDING THE ENVIRONMENTAL IMPACTS OF THE PROJECT, AND ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS
WHEREAS, Jia Yuan USA Co., Inc, the project applicant, proposes to construct a 936,172 square foot mixed-use development consisting of a 29-story hotel tower with 300 rooms and a 49-story 435 condominium units and approximately 58,959 square feet of retail and commercial space, 738 vehicle parking spaces and 654 bicycle parking spaces. (“Project”); and
WHEREAS, the City of Los Angeles (“City”) was the lead agency under the California Environmental Quality Act (“CEQA”) for the Project and prepared a Environmental Impact Report, ENV- 2015-1159-EIR, State Clearinghouse Number: 2016021013 (“EIR”), for the Project; and
WHEREAS, on August 18, 2017, the EIR for the Project was certified by the City of Los Angeles; and
WHEREAS the CRA/LA is the responsible agency as defined in the State CEQA Guideline section 15381, and it has reviewed and considered the information contained in the certified EIR.
NOW, THEREFORE, BE IT RESOLVED by the CRA/LA, a Designated Local Authority (Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, California), as follows:
1. The CRA/LA Governing Board’s discretionary approval is required to allow a Transfer of Floor Area Ratio to the Project.
2. The CRA/LA is a Responsible Agency pursuant to CEQA (Public Resources Code Section 21069, State CEQA Guidelines Section 15381). As a Responsible Agency, the CRA/LA Governing Board considered the environmental effects of the Project at a duly and properly notice public hearing as shown in the City of Los Angeles’ EIR (State CEQA Guidelines Section 15096).
3. The findings and determinations in this document constitute independent findings of the CRA/LA in all respects and are supported by substantial evidence.
4. Each and all of the findings and determinations contained in this document are based on substantial evidence, both oral and written, contained in the entire record related to the Project. The absence of any particular fact from this document is not an indication that any finding is not based in part on that fact from the Project's record.
5. By this reference, the CRA/LA Governing Board incorporates Exhibit "A", the CEQA Findings adopted by the City on August 18, 2017 in connection with the Project's application: Vesting Tentative Tract Map No. 73422-CN as though such findings were set forth in their entirety in this Resolution. All of the language included in Exhibit "A" constitutes findings by the CRA/LA, where or not particular sentence of clause includes a statement to that effect.
6. Specifically, the CRA/LA Governing Board finds that the environmental impact categories identified in Section E of Exhibit "A", pages 48 through 64, would not result in any significant impacts and no mitigation measures are needed.
7. The CRA/LA Governing Board finds that the environmental impact categories identified in Section F of Exhibit "A", pages 64 through 79, would not result in any significant impacts with the incorporation of mitigation, and all mitigation measures identified in Section F of Attachment "A" are hereby adopted.
8. The CRA/LA Governing Board finds that the environmental impact categories identified in Section G of Exhibit "A", pages 79 through 90, would result in significant and unavoidable impacts with the incorporation of all feasible mitigation and all mitigation measures identified in Section G of Exhibit "A" are hereby adopted.
9. The CRA/LA finds and determines that a range of alternatives has been evaluated, as set forth in Section H of Exhibit "A", pages 90 through 101. The CRA/LA further finds that none of those alternatives could, in fact, feasibly avoid or substantially lessen the significant and unavoidable impacts of the Project.
10. The CRA/LA adopts the Mitigation Monitoring and Reporting Program prepared and adopted by the City ("MMRP").
11. The CRA/LA finds that, notwithstanding the implementation of all feasible mitigation measures as presented in the MMRP, the Project would result in significant and unavoidable environmental effects, as discussed above. The CRA/LA finds and determines that such adverse environmental effects are overridden by other social, economic or physical considerations, and therefore the CRA/LA adopts the statements of overriding consideration set forth in Section K of Exhibit "A", pages 111 through 114.
12. Based on such review and consideration, and in accordance with CEQA Guidelines Sections 15162, the CRA/LA-DLA Governing Board hereby determines that no subsequent or supplemental environmental document is required for the Project, based on the following:
a. No substantial changes are proposed to the Project since its approval by the City of Los Angeles;
b. No substantial evidence has been submitted to the Governing Board demonstrating that substantial changes have occurred with respect to the circumstances under which the Project is being undertaken that will require major revisions to the EIR due to the changed circumstances; and
c. No new information of substantial importance to the Project, which was not known or could not have been known at the time the EIR was prepared, has become available or has been submitted to the Governing Board.
13. The CRA/LA directs staff to file a Notice of Determination within five working days after deciding to approve the Project.
ADOPTED: ______
CRA/LA, A DESIGNATED LOCAL AUTHORITY (Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, CA)
Attachment B Site Map
CRA/LA, A DESIGNATED LOCAL AUTHORITY (Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, CA)
Attachment C Donor Site
CRA/LA, A DESIGNATED LOCAL AUTHORITY (Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, CA)
Attachment D Project Rendering