Community Redevelopment Agency of the CITY OF lOS ANGELES

DATE / June 17, 2008

FILE CODE /

354 South Spring Street / Suite 800 T 213 977 1600/ F 213 977 1665 Los Angeles J California 90013-1258 www.crala.org

CRA File No.: CFI No.: 08-0965 Council District: 11 Contact Person: Don Spivack (213) 977-1682

Honorable Council of the City of Los Angeles John Ferraro Council Chamber 200 N. Spring Street Room 340, City Hall Los Angeles, CA. 90012

Attention: Alan Alietti, Office of the City Clerk

COUNCIL TRANSMITTAL: Transmitted herewith is a Report for review by the Housing, Community, and Economic Development Committee and the City Council in response to a motion (Rosendahl-Parks) on April 18, 2008 to:

COMMUNITY REDEVELOPMENT AGENCY PREPARE CERTAIN STUDIES OF THE AREA BOUNDED BY ON THE EAST, ON THE WEST, 104TH STREET ON THE SOUTH, AND ARBOR VITAE STREET ON THE NORTH,IN ORDER TO DETERMINE WHETHER CREATION OF A SURVEY AREA WOULD BE APPROPRIATE, AND REPORT BACK TO THE COUNCIL IN 180 DAYS

RECOMMENDATION That City Council review, and then receive and file, the report.

ENVIRONMENTAL REVIEW The recommended action does not constitute a "project" as defined by the California Environmental Quality Act ("CEQA").

FISCAL IMPACT STATEMENT There is no fiscal impact to the City's General Fund, as a result of this action.

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. OMMUNII'< & \-IOUSING,g DEVELOPMENT ECONOMI ?Illlfl J\l~ \ 9 cc: Alan Alietti, Office of the City Clerk (Original & 3 Copies on 3-hole punch) Councilmember Bill Rosendahl, District 11 Ivania Sobalvarro, Office of the CLA bee: Don Spivack Jason Neville Records (2 copies) REPORT TO HOUSING, COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE

COMMUNITY REDEVELOPMENT AGENCY PREPARE CERTAIN STUDIES OF THE AREA BOUNDED BY LA CIENEGA BOULEVARD ON THE EAST, SEPULVEDA BOULEVARD ON THE WEST, 104TH STREET ON THE SOUTH, AND ARBOR VITAE STREET ON THE NORTH, IN ORDER TO DETERMINE WHETHER CREATION OF A SURVEY AREA WOULD BE APPROPRIATE, AND REPORT BACK TO THE COUNCIL IN 180 DAYS

June 17, 2008 REPORT

Councilmember Bill Rosendahl requested that the Community Redevelopment Agency (CRNLA) prepare a study of the portion of Council District 11 bounded by:

• La Cienega Boulevard on the east • Sepulveda Boulevard on the west • 104th Street on the south, and • Arbor Vitae Street on the north

The purpose of the study would be to determine whether creation of a survey area would be appropriate.

In March 2007, the CRA/LA staff conducted a visual survey of the area to determine if the area met the physical requirements of adopting a redevelopment project. Copies of that survey as well as maps of the area are attached for the Councilmember's review.

The CRNLA staff is available to meet with the Councilmember and his staff, as well as the Housing, Community and Economic Development committee, to present and discuss of the survey. REPORT ON LAX GATEWAY AREA - WINDSHIELD SURVEY

Agency staff, at the request of Council District II, recently conducted a visual survey of an area located east of the Los Angeles Intemational Airport (LAX) and north and south of the Gateway Corridor in an effort to determine if the area met the physical requirements of adopting a redevelopment project, and to identify opportunity site(s) for a proposed conference center.

On March 22 & 28, 2007 planning staff conducted a windshield survey of a 1,442 acre area bounded by Sepulveda Boulevard on the west, Arbor Vitae Street to the north, La Cienega Boulevard to the east and to the south (Study Area). For security and safety reasons, staff could not travel upon and visually inspect a large (approximately 627.5 acre) City owned parcel located south of Century Boulevard and west of Aviation Boulevard, which is the LAX southem runways and various commercial airlines services and cargo facilities.

The purpose of the windshield survey was to examine and quickly evaluate the Study Area's current physical conditions of buildings and public infrastructure against criteria that describes physical blight under Califomia Redevelopment Law (CRL). Section 33031 of the CRL describes physical and economic blight as:

"(a) This subdivision describes physical conditions that cause blight:

(l) Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations. dilapidation and deterioration. defective design or physical construction, faulty or inadequate utilities, or similar factors.

(2) Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design. inadequate size given present standards and market conditions. lack of parking. or other similar factors.

(3) Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area.

(4) The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership.

(b) This subdivision describes economic conditions that cause blight:

(1) Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to. those properties containing hazardous wastes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459).

(2) Abnormally high business vacancies, abnormally low lease rates. high turnover rates, abandoned buildings. or excessive vacant lots within an area developed for urban use and served by utilities.

(3) A lack of necessary commercial facilities that are normally found in neighborhoods. including grocery stores, drug stores, and banks and other lending institutions.

1 (4) Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, that has led toproblems of public safety and welfare.

(5) A high crime rate that constitutes a serious threat to thepublic safety and welfare. "

Major roadways, street corridors and freeways within or adjacent to the Study Area include Sepulveda Boulevard, La Cienega Boulevard, Imperial Highway, Aviation Boulevard, Airport Boulevard, the Glenn Anderson Freeway (1105), the San Diego Freeway (I 405), and Century Boulevard; a major vehicular corridor providing direct access to the LAX Central Terminal Area.

The Study Area is highly impacted by and used for Airport services aud facilities. Uses include Airport employee and patron surface parking lots, aircraft service and storage hangers, and the southern airfield runways. Century Boulevard, and a portion of Airport Boulevard south of West 96th Street, contain the area's high-rise first class hotels, commercial office buildings and local retail facilities. Industrial buildings and uses are distributed generally in three areas; (1) northwest of La Cienega Boulevard at Imperial Highway, (2) south of Century Boulevard between La Cienega and Aviation Boulevards to approximately W. 104th Street, and (3) south of Arbor Vitae Street between Aviation and Airport Boulevards to W. 98th Street. Many of the major automobile rental facilities are located in this third industrial area. Refer to Attachment A for a generalized land use map.

Two residential neighborhoods are located within the Study Area; they are locally known as "Manchester Square" and the "Airport/Belford Area". Manchester Square is located north of Century Boulevard and south of Arbor Vitae Street between Aviation and La Cienega Boulevards. The Airport/Belford area is located east of Airport Boulevard between Arbor Vitae Street and W. 96th Street. Manchester Square is approximately 132 acres in size, and the AirportlBelford area is approximately 22 acres.

The Manchester Square area, under the Los Angeles International Airport Master Plan Alternative D, is the site for a proposed Ground Transportation Center (GTC). The facility would serve all commercial and private vehicnlar traffic for departing and arriving passengers at LAX away from the existing Central Terminal Area (CTA) as a means to increase safety and security to the airport.

Additional research has found that the City of Los Angeles and City Airports owns approximately 938 acres (65% of the Study Area) and 543 parcels (59%) out of the 923 parcels in the Study Area (see Attachments B & C). Other major land holders in the Study Area include Airport Holdings LP Lessee, Neutrogena Corporation, and AMB Institutional Alliance to name a few.

2 CITY PROGRAMS IMPACTING THE STUDY AREA

Los Angeles International Airport Master Plan

The Los Angeles International Airport (LAX) is the primary commercial air transportation hub of the Los Angeles region and is the dominant U.S. international gateway to the Pacific Rim. LAX is the 3rd busiest airport in the U.S. in terms of aircraft operations and the world's 5th busiest in passenger numbers. The Los Angeles World Airports (LAWA) has prepared a Los Angeles International Airport Master Plan for modernization and future airport operations, including expansion requirements, safety and security mitigation measures, and movement of people and vehicles as related to the airport. The Los Angeles International Airport Master Plan Program was adopted by City Council in December 2004, and followed by the Federal Aviation Administration's Record of Decision approval in May 2005.

The implementation of the Los Angeles International Airport Master Plan will have a significant physical improvement affect upon the Study Area with improved airport service facilities, improved area infrastructure, improved vehicular and people movement, and enhanced parking resources.

From several project and program alternatives that were developed for the Master Plan, Alternative D was selected. Alternative D (see Attachment Map D) would include modifications of the ground access or landside system. Consolidated parking and curb front areas at a new Ground Transportation Center (located at the Manchester Square area) would improve the landside level of service at LAX. Major functions of the Ground Transportation Center include short and long term parking, e-kiosk check-in, curb front interface for buses, taxis, limos and private autos, Skycap baggage check-in, First level passenger security screening, Automated People Mover interface, Baggage re-claim, and a compress natural gas fueling station.

All rental car facilities at the airport would be in one location (west of Airport Boulevard at 98th Street), referred to as the Consolidated Rental Car Facility (RAC), to improve passenger access to these services. In addition a new Intermodal Transportation Center (ITC) located at the now vacant "Continental Property" at Aviation Boulevard and Imperial Highway would provide an efficient connection from the MTA Green Line light rail to the LAX Central Transportation Area. The ITC would provide flight information, e-ticketing kiosks, public restrooms facilities, concession space, checking of baggage and passengers, provide curb front accommodations for large buses, such as charter and tour buses, and serve premium short-term parking needs.

A proposed Landside People Mover System would connect the lTC, the GTC, and the RAC to the LAX Central Transportation Area. An expanded and improved Parking Lot E, located between Aviation and La Cienega Boulevards north of W. III th Street, currently used for airport employee parking, will be used for long and short term employee and patron parking. A portion of the expanded parking lot E will be located under the airspace of arriving flights onto the LAX southern runways.

3 Gateway To LA (Centnry Corridor) Property and Business Improvement District

A local Business Improvement District was adopted by City Council Ordinance (Ordinance No. 177211) on December 14, 2005. The District boundaries generally encompass properties along the north side of Century Boulevard between La Cienega Boulevard and Sepulveda Boulevard and along the south side of Century Boulevard from La Cienega Boulevard to Aviation Boulevard; and includes properties on the north side of 98th Street between Sepulveda Boulevard and Aviation Boulevard, and nearby properties that have addresses on La Cienega Boulevard, 102nd Street, 98th Street, and Aviation, Sepulveda and Airport Boulevards (see Attachment E for boundary).

The Business Improvement District is intended to provide security!goodwill ambassador programs, cleaning and maintenance services, beautification, art, marketing, and public relations programs, and includes expenses for administration, consulting services and capital reserves. The District's operational period began on January I, 2006 and ends on December 31, 2015.

Move-On Housing Program

LAX is currently implementing a Move-On Housing Program relative to the Noise Mitigation Acquisition and Relocation Program for the Study Area's residential neighborhoods of Manchester Square and Airport!Belford area. The Move-On Housing Program authorizes the selling of residential structures to qualified non-profit housing organizations for the relocation, rehabilitation and preservation of this housing stock in other parts of the City. The rehabilitated structures will be offer for sale to program area tenants, first-time homebuyers, low income families and single parents.

Currently the Los Angeles World Airports (LAWA) has been purchasing and relocating residential structures from these two neighborhoods as part of the development program under the Los Angeles International Airport Master Plans' Aircraft Noise Mitigation Program. Results of LAWA efforts can currently be seen in these two neighborhoods with rows of vacant blocks and parcels, and multiple vacant apartment buildings. LAWA is currently implementing a Move-On Housing Program relative to the Noise Mitigation Acquisition and Relocation Program, by selling this housing stock to non-profit housing organizations to remove, reconstruct and preserve them elsewhere in the City.

SURVEY RESULTS

Staff s windshield evaluation for the above characterized areas do not appear to meet the criteria for physical blighting conditions. Staff did not find any of the physical blight characteristics required to institute a redevelopment project. They are:

4 • Buildings that had serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities;

• Conditions of substandard design, inadequate building size given present standards and market conditions, or lack of parking, as factors preventing or substantially hindering the economically viable use of buildings or lots;

• Incompatible uses adjacent or nearby that prevent the economic development of area parcels or other portions of the study area;

• The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development.

A high percentage of existing buildings in the study area appear to be physically sound and in good condition, and the same can be said for the area's surface infrastructure. Staff did not examine the Study Area specifically for economic blighting conditions, but our observations identified only a handful of industrial and commercial buildings appearing to be vacant or had a "For Lease" sign to them. Most commercial and industrial uses in the Study Area appear to be prospering.

In general, the area appears to be in good physical condition and a redevelopment project would not be recommended for the Study Area.

OPPORTUNITY AREAS

As a result of the windshield survey and consideration of the City's and LAX improvement programs for the area, opportunity sites for the development of a local conference center focused upon two areas within the Study Area (see Attachment F). These areas are:

1. The commercial/industrial properties located abutting Century Boulevard, south to the industrial properties abutting along 104th Street between La Cienega and Aviation Boulevards, and

2. The commercial, industrial and Airport/Belford Area located north of Century Boulevard, south of Arbor Vitae Street between Airport and Aviation Boulevards. The commercial area includes the major hotels and office buildings located along Century Boulevard south of West 98th Street between Sepulveda and Aviation Boulevards.

Within these opportunity areas, the Airport/Belford Area and industrial area lying adjacent to the east appears to be a "best fit" site for a local conference center because of proximity to the proposed Ground Transportation Center, the Consolidated Rental Car Facility, the proposed Automated People Mover system, and to the major hotels and office buildings. A limitation to this "best fit" site may be the building height for a new

5 facility. The site lies under the airspace of arriving flights onto the LAX northern runways.

SURVEY RECOMMENDATIONS

1. Support the ongoing efforts of the Gateway To LA (Century Corridor) Property and Business Improvement District.

2. Support the Los Angeles World Airports and the City of Los Angeles in the implementation of the Los Angeles International Airport Master Plan.

3. Continue supporting the ongoing efforts of the Los Angeles World Airports' Move-On Housing Program for the residential neighborhoods of Manchester Square and Airport/Belford.

4. Recommend that the Business Improvement District work with LAWA to identify a suitable site for location of a conference center that would take advantage of the transportation, parking, and facility improvements of Alternative D under the Los Angeles International Airport Master Plan.

5. Promote, through the City's efforts, a comprehensive revitalization and maintenance program for commercial and industrial buildings located within the Study Area.

6. Promote the improvement of area surface infrastructure such as roadways, alleys, curb, gutters, street side landscaping through the City's Capital Improvement Program,

6

Los Angeles International Airport X) GatewayStudy Area eRA I L A C~"'"W"'" :;'Y Property Ownership - Total Acres Attachment B R.~'vp",on' A~'"'y lMA!'l{I""

1JII II

Major Property Owners TOlal Acres" OWner Name _ 858.$" LACITY _ 31 - AMS INSTITUTIONAL ALLIANCE _ 9.4 - HERTZ REALTY CORP

.. 79.3· LACITY AIRPORTS ~ 13.4 _ LACMTA _ fJ.4 _ SIRD MGMT CO LLCANO 1 inch = 780 feet _19,4.NEUTROGENACORP ~ IQ.$·DIAMONDROCKlAXOWNERLLC "'''P''''''''''''''''''''S,r,~"-_.",,,,,..,"'''''''' _ 17,6 ·AROEN REALTY FINANCE ~ 9,7 -AIRPORT HOLDINGS LP LESSEE '''''''''_.''''''''''''' """"'>Xl' Los Angeles International Airpo X) GatewayStudy Area eRA f LA C~","'"~i1y City Property Ownership ~ Parcel Count .achment C R,~ov"op'"'''t ~j A~'"

f------.------,---I Major Property Owners Parcel Count - Owner Name _ 379" LA CITY AIRPORTS IJTISilll1 "PLOTKIN,PETER TR o &. 8ERRYMAN.JAME$ L TR D Study Area ~ndary _ 164" LA CITY _ e· NEUTROGENA CORP _ 5· tRW INVESTMENT CO 1 inch '" 780 feet _ 30" SIRD MGMT CO LLC AND _ 7" HOOD,THOMAS M

_ 27 ·AMB INSTIWTIONAlALUANCE ~ 6 -AIRPORT HOLDINGS LP LESSEE

Legend c::J Study Ama ac~mla!)' GatewaytOlA 1 inch e 780 feet BosIM~S Improvement DI.~lct Legend

_ CpPQrtunlly Oeve!opt\'!ll~\AreBS t::l StudyArN 801Jndaoy Major Property Ownors 1:9,360 TotatAcres· OWner Name

_1.158.6 - LAC!TY ., 31 -AMB lNSTITUTIONALALUANCE _ 9.4 HERTZ REALTY CORP ~O""".05i~!O!!!!'5'°ioiii"~'O~~'~.~.OI: fMt _79.3~LACITYAIRPORTS !illiliIl3.4-LACMTA II1II8.4 SIRO MGMT CO LLC AND 1 inch" 780 feet """"'"",OtwC~''"S 'two< _19.4-NEUTROGENACORP ~ 10.8-DIAMONOROCKLAXOlNNERLLC ,,,,,,,,,,,,,,,,,,,,,,,C<$"''''''"=""""'."' ...... ,"',... , _ 17.6 -AROEN REALTYFINANCE ~ "-~ReOR-; H""""''' ~,