AN ADVISORY SERVICES PANEL REPORT North Hollywood Los Angeles, California

Urban Land $ Institute North Hollywood Los Angeles, California

Transit and the Arts in NoHo: Building a Vibrant Community

January 25–30, 2004 An Advisory Services Panel Report

ULI–the Urban Land Institute 1025 Thomas Jefferson Street, N.W. Suite 500 West Washington, D.C. 20007-5201 About ULI–the Urban Land Institute

LI–the Urban Land Institute is a non- resented include developers, builders, property profit research and education organiza- owners, investors, architects, public officials, plan- tion that promotes responsible leadership ners, real estate brokers, appraisers, attorneys, U in the use of land in order to enhance engineers, financiers, academics, students, and the total environment. librarians. ULI relies heavily on the experience of its members. It is through member involvement The Institute maintains a membership represent- and information resources that ULI has been able ing a broad spectrum of interests and sponsors a to set standards of excellence in development wide variety of educational programs and forums practice. The Institute has long been recognized to encourage an open exchange of ideas and shar- as one of America’s most respected and widely ing of experience. ULI initiates research that quoted sources of objective information on urban anticipates emerging land use trends and issues planning, growth, and development. and proposes creative solutions based on that research; provides advisory services; and pub- This Advisory Services panel report is intended lishes a wide variety of materials to disseminate to further the objectives of the Institute and to information on land use and development. make authoritative information generally available to those seeking knowledge in the field of Established in 1936, the Institute today has more urban land use. than 20,000 members and associates from 70 coun- tries, representing the entire spectrum of the land Richard M. Rosan use and development disciplines. Professionals rep- President

ULI Catalog Number: ASH068

Cover illustration by: David Molina of Creative Capers Enter- tainment, Inc. ©Summit Design International, LLC.

Text photos by Zane Segal.

2 An Advisory Services Panel Report About ULI Advisory Services

he goal of ULI’s Advisory Services Program ipants in ULI’s five-day panel assignments are is to bring the finest expertise in the real able to make accurate assessments of a sponsor’s estate field to bear on complex land use plan- issues and to provide recommendations in a com- T ning and development projects, programs, pressed amount of time. and policies. Since 1947, this program has assem- bled well over 400 ULI-member teams to help A major strength of the program is ULI’s unique sponsors find creative, practical solutions for ability to draw on the knowledge and expertise of issues such as downtown redevelopment, land its members, including land developers and own- management strategies, evaluation of developers, public officials, academicians, representatives ment potential, growth management, community of financial institutions, and others. In fulfillment revitalization, brownfields redevelopment, military of the mission of the Urban Land Institute, this base reuse, provision of low-cost and affordable Advisory Services panel report is intended to pro- housing, and asset management strategies, among vide objective advice that will promote the re- other matters. A wide variety of public, private, sponsible use of land to enhance the environment. and nonprofit organizations have contracted for ULI’s Advisory Services. ULI Program Staff Each panel team is composed of highly qualified Rachelle L. Levitt professionals who volunteer their time to ULI. Executive Vice President, Policy and Practice They are chosen for their knowledge of the panel topic and screened to ensure their objectivity. Mary Beth Corrigan ULI panel teams are interdisciplinary and typi- Vice President, Advisory Services cally include several developers, a landscape Nancy Zivitz Sussman architect, a planner, a market analyst, a finance Senior Associate, Advisory Services expert, and others with the niche expertise needed to address a given project. ULI teams Nicholas Gabel provide a holistic look at development problems. Associate, Advisory Services Each panel is chaired by a respected ULI member with previous panel experience. Jason Bell Panel Coordinator, Advisory Services The agenda for a five-day panel assignment is in- Yvonne Stanton tensive. It includes an in-depth briefing day com- Administrative Assistant posed of a tour of the site and meetings with sponsor representatives; a day of hour-long interviews Nancy H. Stewart of typically 50 to 75 key community representa- Director, Book Program tives; and two days of formulating recommenda- Duke Johns tions. Many long nights of discussion precede the Manuscript Editor panel’s conclusions. On the final day on site, the panel makes an oral presentation of its findings Betsy VanBuskirk and conclusions to the sponsor. A written report Art Director is prepared and published. Kim Rusch Because the sponsoring entities are responsible Graphics for significant preparation before the panel’s visit, Martha Loomis including sending extensive briefing materials to Desktop Publishing Specialist/Graphics each member and arranging for the panel to meet with key local community members and stake- Diann Stanley-Austin holders in the project under consideration, partic- Director, Publishing Operations

Los Angeles, California, January 25–30, 2004 3 Acknowledgments

n behalf of ULI, the panel extends its sin- with the work of Rosalie Udewitz, Robert Gold- cere appreciation to the panel cosponsors: man, Patricia Smith, John Kaliski and Michael the Community Redevelopment Agency of Wells, Sandra Kulli, and Susan Whittaker all mak- O Los Angeles (CRA) and the Los Angeles ing a substantial contribution to the panel’s under- County Metropolitan Transportation Authority standing of the issues. (MTA). Without the vision, leadership, and commitment to collaboration exhibited by CRA CEO The panel was quite taken with the eloquent and Bud Ovrum and MTA CEO Roger Snoble, this perceptive input it received from members of the panel would never have gotten off the ground. The North Hollywood community. In pictures, per- guidance and insight provided by Los Angeles sonal conversations, letters, and written com- County Board Supervisor and MTA Board Chair- ments, residents of all ages and backgrounds, man Zev Yaroslavsky were indispensable to the business owners and employees, artists, commu- panel, as were the energy and commitment to the nity activists, and others openly shared their North Hollywood redevelopment effort evidenced hopes, concerns, and expectations for their com- by City Councilman Tom LaBonge and CRA Com- munity. More than 60 stakeholders took the time missioners Shu Kwan Woo and John Schafer. The to meet with panel members. Their energy, opti- continued involvement of all these officials will be mism, and commitment to meeting the challenges essential to the success of this effort, and, in the facing North Hollywood were inspiring. Clearly, panel’s view, the community is lucky to have such North Hollywood is a special place in large mea- determined, dedicated, and skilled leaders. sure because of the creativity and determination of the people who live and work there. Special thanks are extended to the CRA North Hollywood office staff led by David Riccitiello, and The panel is grateful to the Universal City/North particularly to Robert Fazio, who skillfully man- Hollywood Chamber of Commerce for the partici- aged all facets of the panel project, as well as to pation of Bruce Spiegel, and to the Mid-town North their counterparts at the MTA working under Hollywood Neighborhood Council for the involve- the direction of Carol Inge. In particular, the ment of Diann Corral and Eric Reuveni. These are panel would like to thank Nelia Custodio for her two key organizations that work to coordinate and thoughtful guidance as the MTA representative. channel the energy of the community. The CRA and MTA staffs worked tirelessly to Two members of the panel, Mark Feinknopf and prepare a comprehensive briefing book for the Cynthia Moe, copresidents of Sacred Space in At- panel; to arrange for tours and meetings with local lanta, were unable to complete the week owing to business owners, theater managers, and other a family emergency. The panel was sorry to lose community leaders; and to orchestrate one of the their expertise and perspective but was grateful best community outreach efforts ever undertaken to have the benefit of their insights and written in preparation for a ULI panel. Special recogni- comments in its initial deliberations. tion goes to Michelle Banks-Ordone, Daniel Rios, William Mason, and Julia Stewart of the CRA Finally, the panel wishes to thank ULI Trustee staff and to Kevin Michel, Kathleen Sanchez, and Wayne Ratkovich, who was instrumental in the Lynn Goldsmith of the MTA staff for their invalu- conception of this panel assignment. able assistance. The quality of the market analysis, urban design, and community facilitation services provided by consultants was also impressive,

4 An Advisory Services Panel Report Contents

ULI Panel Members and Project Staff 6 Foreword: The Panel’s Assignment and Summary of Recommendations 7 Market Potential 10 Planning and Development Strategies 19 Implementation 31 Conclusion 40 About the Panel 42

Los Angeles, California, January 25–30, 2004 5 ULI Panel and Project Staff

Panel Chair Terry R. Margerum Senior Managing Director Frank J. Sparicio Sedway Group/CBRE Consulting Principal San Francisco, California Corporate Real Estate Strategies Rumford, Rhode Island Zane Segal Project Director Panel Members Zane Segal Projects Houston, Texas Douglas Betz Partner ULI Project Directors Woolpert LLC Dayton, Ohio Mary Beth Corrigan Vice President, Advisory Services Toni L. Griffin Deputy Director Suzanne D. Cartwright Office of Planning Director, Community Outreach Washington, D.C. Elisa Hill ULI On-Site Coordinator Senior Development Specialist Chiquita Manago Washington Metropolitan Area Transit Authority Department Coordinator Washington, D.C. Policy and Practice Christopher W. Kurz President and CEO Linden Associates Baltimore, Maryland

6 An Advisory Services Panel Report Foreword: The Panel’s Assignment and Summary of Recommendations

he Urban Land Institute was invited by the Another positive element is the emergence of the Community Redevelopment Agency of Los NoHo Arts District, designated by the Los Ange- Angeles (CRA) and the Los Angeles County les City Council in 1992 as a moniker for the area’s T Metropolitan Transit Authority (MTA) to lively and burgeoning theater and arts scene. Pub- examine development opportunities in the core lic consciousness of NoHo is slowly but steadily in- area of the CRA’s North Hollywood Redevelop- creasing in the greater Los Angeles community. A ment Project and, in particular, property owned recent market study for the proposed World Ani- by the MTA at the North Hollywood subway sta- mation Center museum estimated annual visitors tion. to the NoHo Arts District at over 175,000. Originally a farming community, North Hollywood evolved into a convenient and affordable residen- The Panel’s Assignment tial community that attracted entertainment in- These factors have brought the revitalization ef- dustry workers, artists, and immigrants, among fort in North Hollywood to a pivotal point. Ongo- others. Like many first-tier suburban communi- ing residential development activity, the develop- ties, North Hollywood experienced years of de- ment opportunities associated with MTA property cline in the 1960s and 1970s, partly as a result of at the Red Line subway station, and the construc- freeway construction and the development of tion of the Metro Orange Line bus rapidway with shopping malls that took traffic and shoppers its terminus station on Lankershim Boulevard away from the Lankershim Boulevard corridor across from the subway are all components that that had been the community’s “main street.” can be used to shape a new vision for the North The CRA established the redevelopment project Hollywood community. This ULI panel was as- area in 1979, and its initial revitalization efforts have met with some success, reflected in the Hewlett-Packard office building (1985), the Acad- 15

emy of Television Arts and Sciences complex URA (1991), the community shopping center at LOS ANGELES 5 Vineland and Magnolia (1993), and over 750 net SAN BERNAR new housing units, including elderly, handicapped, North Burbank 101 Hollywood 15 and low-income units. Since 1993, significant Hollywood Los Angeles 505405 events have included the 1994 Northridge earth- 10 quake and the opening of the Red Line Metro sub- Anaheim Long Beach ORANGE way station in 2000. The impacts of the earth- Santa Ana quake have generally been mitigated, and the new subway station seems to have catalyzed significant new investment in the blocks near the station, perhaps offering the opportunity to create a 5 new community focal point for North Hollywood. Several new multifamily apartment projects are under construction, and a major mixed-use proj- 15 ect, NoHo Commons, is scheduled to start con- San Diego struction imminently. Location map.

Los Angeles, California, January 25–30, 2004 7 Lankershim

Boulev

ard Vineland Avenue

Burbank Boulevard

sembled to provide advice and recommendations regarding how the community can capitalize on Chandler Boulevard these efforts and how future public policy, planning, design, and development decisions can be 170 integrated to achieve a fully revitalized, vibrant, and sustainable North Hollywood downtown area Magnolia Boulevard for the 21st century.

Of critical importance is the future development of strategically located sites owned by the MTA, in- junga Avenue

Tu cluding the 10.45-acre subway station site and two smaller parcels (1.8 and 1.9 acres) located directly Cahuenga Boulevard west across Lankershim Boulevard on either side of Chandler Boulevard. (See panel study area map.) Maximizing the potential of these sites, and Riverside Drive Camarillo Street integrating the new development with the transit services and the arts district, will be crucial in 101 determining the character of the community and 134 in meeting redevelopment goals. While the panel made detailed recommendations for these proper- 101 ties, it also considered planning, design, and devel- Key: opment strategies for the arts district and the CRA North Hollywood Redevelopment Project broader redevelopment project area. MTA Property ULI Panel Study Area The panel wrestled with the question of the relative importance of the arts district in the redevel- Panel study area. opment plan. Beyond the immediate community of actors and artists who live and work in the NoHo area, the NoHo Arts District does not appear to have substantial name recognition within the greater metropolitan region. One most likely could not get in a cab at the Los Angeles International Airport and ask to be taken to NoHo without re- ceiving a blank stare from the driver. Other parts of the region have arts offerings that equal or exceed those found in NoHo. Preservation of the low-rise, inexpensive buildings necessary to foster the community’s small, experimental theaters and avant-garde galleries could be expensive and might conflict with rising land values and increasing market demand for other uses generated in part by the presence of significant transit service.

The Panel’s Recommendations The panel came to the conclusion, however, that Excellent transit access NoHo’s funky arts identity is an irreplaceable part and the NoHo Arts Dis- of the community’s character—a character that in trict are key North Holly- and of itself is an important catalyst for redevelop- wood assets. ment activity and that will enhance property val-

8 An Advisory Services Panel Report ues for both existing and new development. Pre- ple-friendly streets. At the same time, the avail- serving this character will take determined work, ability of a sufficient amount of well-located and but the panel believes strongly that it will be well visually unobtrusive parking is critical for safety worth the effort. This report contains several rec- and the economic vitality of the area’s businesses ommendations for achieving this important part of and arts venues. The panel devoted considerable its vision for NoHo. time to considering how best to balance the need to accommodate vehicular traffic with the human- The second big question that the panel discussed scale, pedestrian-oriented spaces that make a at length was how to direct and control the devel- community an attractive place to live, work, shop, opment of the MTA sites and surrounding areas and play. to achieve a more livable environment for all. The panel’s vision focused on creating walkable streets Finally, given the impossibility of successfully that encourage leisurely shopping, café dining, gal- planning and implementing a complex redevel- lery hopping, and a safe and convenient evening at opment plan without extensive collaboration with the theater, a movie, or a concert. Such places also a multitude of stakeholders, the panel focused on are attractive locations for employees, especially the CRA and MTA development review processes when combined with the superior transit service and on how they can work together more effec- that is increasingly available in North Hollywood. tively. Much good work has already been done, Achieving this urban village atmosphere will re- and the panel encourages the agencies to take the quire immediate attention to creating a balanced final steps necessary to begin implementation of plan, given the strong rental residential market a shared vision for NoHo. Now is the time to take and the number of projects already in the devel- the necessary actions to preserve and strengthen opment pipeline. An overall design plan with de- the arts district, to plan for balanced development, tailed development guidelines must be put in place to invest in the public infrastructure, and to begin so that each new building will contribute to qual- to build a new future for North Hollywood. ity of the community and not detract from it. This report summarizes the panel’s conclusions The condition of the public realm—the street- and recommendations, which were delivered to scapes and green spaces (or the lack thereof)— the sponsors during a public presentation on Janu- was an important focus for the panel. While a ary 30, 2004. The panel hopes that the findings in denser built environment is both inevitable and this report will contribute to the successful rede- desirable—especially if it results in reduced vehi- velopment of North Hollywood. cle traffic through transit use and more walking —it must be balanced with a well-thought-out network of greenways, open spaces, parks, and peo-

Los Angeles, California, January 25–30, 2004 9 Market Potential

orth Hollywood is a district within the characteristics are lower than in nearby submar- city of Los Angeles, located in the east San kets such as Studio City, Universal City, and Fernando Valley, over the hills from Holly- Burbank. The area’s largest employers are two N wood and approximately ten miles from medical firms, two department stores, and an downtown. As such its boundaries are not pre- insurance company, all with 300 to 400 employees. cisely defined, but it generally encompasses an By contrast, Burbank and Universal City’s major area between the 101 Ventura Freeway on the employers are entertainment companies with up south, Sherman Way on the north, the 170 Holly- to 7,500 employees. wood Freeway on the west, and the city of Bur- bank on the east. Office Market The statistical data gathered by the CRA for this As of July 2003, the overall Los Angeles office va- advisory panel used somewhat larger boundaries cancy rate was 15.8 percent and full-service rents stretching as far west as Van Nuys Boulevard. were at $28.80 per square foot, down slightly from Both of these areas are considerably larger than $29.88 in 2002. At present rates of absorption it the CRA’s redevelopment project area and the would take 4.5 years even to reach the 10 percent MTA station area that were the foci of the panel’s vacancy benchmark. For the overall North Holly- analysis, as shown on the ULI panel study area wood market, which comprises about 2.35 million map. The area within which market and demo- square feet, vacancy is at 15.4 percent with rents graphic data was collected is referred to as the between $8 and $33. However, the three major greater North Hollywood market study area, buildings nearest the Metro station contain about shown in the accompanying figure. These bound- 510,000 square feet and appear to be about 7 per- ary differences should be kept in mind when con- cent vacant, with rents in the mid-twenties. A ma- sidering the economic and market data discussed jority of tenants are reported to be entertainment in this report. industry–related. Economic and Demographic Overview There is no question that, all other things being (1990–2000) equal, the MTA station enhances the potential for creating an office node in this part of North Holly- The population of North Hollywood grew by al- wood, particularly for entertainment industry most 11 percent between 1990 and 2000 to a total users. Current rents, however, do not support the of 239,279, with a major increase in the Hispanic cost of new construction and any near-term proj- population, which now constitutes 45.6 percent of ect would likely require subsidies. If a few key the total. The Hispanic population is concentrated sites are designated for office use and a proactive north of Burbank Boulevard, where it encompasses and sustained marketing effort is made, office uses nearly two-thirds of the populace. Incomes grew may well be achievable within five to ten years. by 20 percent, less than the 30 percent increase in the Los Angeles metropolitan area’s Consumer Regional and Subregional Retail Price Index. The area has a skewed distribution Market of household sizes, with a disproportionate amount of both large (six or more persons) households North Hollywood’s traditional retail strengths and singles. Educational, employment, and income are in department stores and auto supplies. The

10 An Advisory Services Panel Report Sa n Fernand

Roscoe Boulevard 5 Coldwater Canyon Avenue Coldwater Canyon an Nuys Boulevard V Laurel Canyon Boulevard Canyon Laurel Lankershim Boulevard Vineland Avenue

Sherman Way 170 Hollywood Way

Victory Boulevard Key: North Hollywood Burbank Burbank Boulevard Studio City

Magnolia Boulevard Universal City

101 134

101

01 2Miles

To Downtown greater North Hollywood area is served by two configuration with major comparison-goods retail- The North Hollywood regional shopping centers, Westfield Fashion ers and a multiplex cinema. A more organic Main market study area is con- Square in Sherman Oaks and Panorama Mall/ Street model, with local niche retailers such as siderably larger than the Walmart in Panorama City. The latter caters to galleries and vintage clothes shops, interspersed panel’s study area, which the large Hispanic population. The subregional among the existing theaters and restaurants, is located entirely in market is dominated by the Burbank Empire Cen- seems more appropriate. North Hollywood. ter, Burbank Media Center, and the Valley Plaza shopping center, an old subregional center located Convenience and Neighborhood Retail approximately two miles to the northwest, where Sears and Robinsons May department stores are There appears to be a healthy local retail market, located. There are more than 70 multiplex movie with 13 centers (approximately 600,000 square screens in North Hollywood, Burbank, and Uni- feet) and a vacancy rate of 5.6 percent. Rents versal City, most in configurations of ten or more range from $1.25 to $3.50 (triple net), with the screens. Of these retail establishments, only the highest rates in Sherman Oaks and Studio City. auto supply stores are prominent in the immediate Rents in the Magnolia Vineland Center are in the study area. $1.50–$2 range, and vacancy is reported at 1.1 percent. The Ralph’s grocery store in the center is re- Retail prospects in the station area do not seem portedly one of the chain’s best performers. In ad- promising for a destination “town center” mall dition, two other grocery chains, Hows Markets

Los Angeles, California, January 25–30, 2004 11 the wave of new, relatively affluent residents who will occupy the 1,500-plus apartment and loft units now in the development pipeline.

It is important to realize that, by itself, the transit investment does less for retail than for residential or office development. In the words of a recent ULI report, Successful Development around Transit, “retail must be viable on its own.” Retail does not drive development around transit, but rather “follows rooftops.”

Multifamily Residential Market In the greater North Hollywood market study area, multifamily units constitute 64 percent of the 59,000-unit residential inventory. Between 1990 and 2000, the greater North Hollywood market Above: Eclectic local study area added 2,763 units, more than half of retailers create a distinc- them in projects of 50 or more units. Within this tive ambience. Right: The area, renters lease 68.1 percent of occupied units, North Hollywood multi- as contrasted with Burbank, where the number is family residential market 56.4 percent. has been strong in recent The overall vacancy rate is 3.2 percent, and rents years. vary greatly depending on the quality and vintage of product. The high end is about $2 per square foot per month. Over 1,500 new apartment units are approved or under construction in the study area, about 90 percent at market rate. They are all projecting market rents in the $1.75–$2 range.

and Henry’s (a subsidiary of Wild Oats) have ex- The average value of condo resales is $244,000, pressed interest in the NoHo Commons site. compared with single-family homes at just under $277,000. The average sales price of condos/town- More broadly, the local retail scene is rather funky homes was $205 per square foot in 2002. Currently and eclectic, reminding some observers of Melrose no for-sale product is under construction, but two in an earlier day or of various neighborhoods in are scheduled to start construction this spring: 36 Berkeley or San Francisco. In addition to arts- condominiums on Burbank Boulevard and 69 lofts related retailers, one growing niche is that of vin- on the former Adolph’s Meat Tenderizer ware- tage clothes shops. A recent market study re- house site. New condos in Burbank are being mar- ported that there were over 60 restaurants of keted at an average price of $305 per square foot. diverse types in the arts district, nearly half of The panel anticipates that more for-sale product them serving Asian cuisine. will emerge as the area’s desirability becomes Since the panel did not receive specific data on more evident, and it believes that such develop- rents, vacancy, and turnover for the local retailers ment should be encouraged with policies that sup- on Lankershim and Magnolia boulevards, it is report homeownership. luctant to draw detailed conclusions. Overall, how- It remains to be seen whether the projected rents ever, the local retail scene appears stable, and it will be fully achieved with so much new product should be expected to benefit substantially from coming on market so quickly. Given the low va-

12 An Advisory Services Panel Report cancy rates, however, area housing developers have cause for optimism. Regardless, the long- term prospects for NoHo as a major transit- oriented residential node are excellent, due both to market trends and to locational advantages. With its Red Line and future rapid bus stations, North Hollywood is well positioned as an urban infill site to capture a significant share of future subregional residential growth.

While this growth potential is very positive for the local economy, including the arts district, there is a danger that, without any intervention, the strong residential market could crowd out other uses that are equally important to the area’s long- term economic health. The CRA may wish to consider policies for ensuring provision of housing targeted at the local work force, seniors, and low- income people in general; reserving a few key to solicit their views on NoHo generally. Another The Academy of Televi- sites for employment-generating uses such as option to explore is an extended-stay “suites” hotel, sion Arts and Sciences is office and retail; and preserving certain single- geared toward entertainment industry workers. an important entertain- family neighborhoods. ment industry anchor in Oasis Arena Facility the study area. Hotel Market This proposal for an 8,000-or-more-seat arena, No hotel market data were collected for the panel, which has been presented to the MTA for one of and thus the following comments are based on the its transit station properties, deserves special panel’s familiarity with hotel markets in the United mention. The expected events include college and States and California generally and on selected interviews with industry professionals. There are minor-league professional sports, concerts, family currently no hotels in the NoHo district. entertainment, and conventions. The panel reviewed a preliminary feasibility analysis provided Generally speaking, it continues to be a difficult by the developer. The conclusions in the prelimi- time for new hotel development. Even strong nary market study are more hypothetical than players such as Hyatt and Marriott can have trou- definitive because the developer has no firm ble finding financing. The hotel developers the commitments from the proposed anchor tenants. panel spoke with saw no foreseeable potential for Consequently, the report is couched in caveats, hotel development in the North Hollywood station and properly so. A more conclusive analysis must area because “there’s no reason to go there.” This await submission of more detailed data by the view could change if the station area builds out, as developer. anticipated by some of the recent forecasts pro- mulgated by developers and planners. Local support for this project seems highly di- Clearly there are no major destinations in the vided, with most stakeholders feeling that it is area now. However, just one short Metro stop not an appropriate use for an arts district loca- away is City Walk and the Universal City theme tion, although its access to the transit hub and park, the top tourist destination for visitors to Los its synergistic use with MTA parking facilities is Angeles County. The panel believes it may be certainly logical. The panel believes that the Uni- worthwhile to explore with selected hotel compa- versal City station, with its closer access to the nies or developers the pre– and post–September freeway system and office-shared parking oppor- 11, 2001, performance of Universal City hotels and tunities, or some other transit station with a more

Los Angeles, California, January 25–30, 2004 13 Too many arts and enter- as music studios, postproduction houses, photog- tainment businesses cur- raphy studios, and prop and costume storage fa- rently shut out the neigh- cilities, have also located in the area, primarily in borhood behind blank low-rise industrial spaces, owing to the combina- walls that lack windows, tion of low rent and good freeway and transit ac- creating streets that feel cess. These businesses may be quite appropriate unfriendly or even unsafe to the area, yet they often present a blank face to for pedestrians. the street; their buildings frequently lack identifying features, signage, or even windows. The resulting lack of “eyes on the street” makes the neighborhood appear less secure and friendly than it actually may be.

Paradoxically, the emergence of more cafés, shops, service retail, and better housing in the area is likely to increase the desire of entertainment industry businesses to locate in North Hollywood, while the supply of cheap space is likely to dwin- dle due to redevelopment. One approach for rec- onciling these conflicting forces is to encourage the development of secure yet creatively designed office and live/work spaces that will relate to the streets and the surrounding urban fabric.

The presence of 21 live theaters in NoHo is another function of the low rent available for store- regional or subregional destination character, front spaces and of the many actors and would-be might be a better location for this project. actors who desire to be near industry giants while they hone their craft. These theaters are as much Market Potential for Arts-Related Uses about classes, auditions, and rehearsals as they are about performances, and so they stay busy While the name “Hollywood” describes a rela- day and night, weekday and weekend. Yet some tively small area within the city of Los Angeles, of them are already being threatened by rising major studios and the literally thousands of rents as new construction commences and specu- smaller production, distribution, exhibition, and lation occurs. service businesses that compose the entertainment industry have proliferated in recent decades Other components of the NoHo Arts District, in the southeastern San Fernando Valley in and such as the dance studios and visual artists’ spaces around North Hollywood. With the addition in and galleries, have also benefited from the relative 2000 of the Metro Red Line subway service and affordability of commercial space and housing. given the planned opening of the cross-valley These too could be threatened by the success of Orange Line bus rapidway in 2005, North Holly- the revitalization of the area. This is not a new wood is ever more appealing as a location for en- or unique situation, of course. It is a common pro- tertainment industry businesses and the creative cess in urban rehabilitation that pioneering artists and technical people who work for them. move into disused warehouses and abandoned areas, fixing them up by hand, organizing, and Many industry organizations and businesses, in- struggling. Then, after they have begun the pro- cluding the Academy of Television Arts and Sci- cess of turning an area around, young profes- ences on Lankershim Boulevard two blocks south sionals and empty nesters are attracted, with the of the subway station, have made North Holly- result that prices escalate and the pioneers are wood their home. Numerous smaller entities, such forced out. Because of the inordinately high and

14 An Advisory Services Panel Report still rising residential prices in the Los Angeles The historic El Portal region, the new wave of market-rate housing theater and the Deaf West about to inundate NoHo could well thwart the theater are two examples continued growth of this nascent arts district just of the more than 21 live when it is beginning to savor success, unless stra- theater venues in the tegies are implemented to nurture and preserve NoHo Arts District. the district.

A Vision for the Arts District What steps must be taken to preserve and encourage the NoHo Arts District? First, the arts community must keep doing what it is already doing. Special events such as the NoHo Theater and Arts Festival need to grow, proliferate, and be better promoted. They showcase the improvement in the physical structure of the area, as well as the improving range and quality of the theater companies.

Second, the streetscape improvements already designed need to be put in place to make a strong visual statement about the district’s special, quirky character. The bikeways and open spaces need to be programmed, as much as appropriate, with events such as organized bike tours that will bring new people into the area at a gradual enough pace to enjoy it. Such programs will highlight the continuing physical improvements, including the already completed mural project along the bikeway to the east and the many new sculptures, murals, and facade improvements in place and planned. in the greater Los Angeles area, NoHo is the re- Third, the various arts organizations need to work gion’s only self-proclaimed arts district. Precisely together. The new loose affiliation known as the because few Angelenos and virtually no tourists NoHo Theater and Arts Business Collaborative yet recognize the NoHo name, there is every rea- illustrates an excellent approach for the various son to keep proclaiming it via banners, newspaper theaters, dance troupes, and visual artists to unite and other media ads, publicity, streetscapes, pub- and attract a greater audience. Important targets for these efforts are new residents and workers, lic art, gallery events, and live theater. Eventually, as well as those who are already living and work- the NoHo brand will seep into the public conscious- ing in the community. A “buy local” and even an ness, strengthening the area’s arts institutions “eat local” grass-roots marketing campaign could and the greater North Hollywood community’s have an effect. The goal should be to lure the area’s sense of identity. hidden media people, those in the walled-in music studios and sound-isolated postproduction houses, Additional Cultural and Civic Anchors out into the light of day, at least for lunch. The panel proposes several significant cultural Finally, while there are many concentrations of and civic anchors of a regional and valleywide sub- artistic, cultural, and entertainment attractions regional scale that could dramatically improve the

Los Angeles, California, January 25–30, 2004 15 The design concept for the World Animation Cen- ter’s interior shows the potential for this museum to provide an interactive, memorable experience for visitors. DAVID MOLINA OF CREATIVE CAPERS ENTERTAINMENT, INC. ©SUMMIT DESIGN INTERNATIONAL, LLC. INC. ©SUMMIT DESIGN INTERNATIONAL, CAPERS ENTERTAINMENT, MOLINA OF CREATIVE DAVID

public’s awareness of the NoHo Arts District and The prospects for the facility are promising, with improve patronage of its venues. a number of important caveats. The North Holly- wood location is in a large urban market with The World Animation Center significant tourist visitation and several major In 2002, the CRA commissioned a study for a destinations nearby. On the other hand, Los Ange- world-class animation museum of 40,000 to 50,000 les is a highly competitive market, with 38 major square feet to be located in the NoHo Arts Dis- museums in addition to zoos, aquariums, and na- trict. Virtually everyone the panel spoke with was ture centers. The animation museum’s feasibility in favor of this project as a tourist draw and sig- analysis estimated a development budget of $25 nature design element, and the panel too was million to $30 million, an annual stabilized visita- unanimous in recommending that this project be tion of 200,000, and an operating deficit of $1.9 mil- put on the front burner for CRA consideration. lion. The latter would imply the need for an en- While several other entertainment industry hubs dowment of more than $30 million. throughout the region are competing for the project, a location on one of the NoHo MTA sites or on NoHo Theater Center a nearby commercial site on Lankershim is a nat- The panel proposes construction of a new theater ural. The cartoonlike concept for the building de- center that would include several up-to-99-seat sign is completely synergistic with the artistic non-Equity live-performance black-box theaters flair of the proposed streetscape. and one approximately 350- to 500-seat theater. It would also incorporate joint ticketing, promotion, The panel reviewed a detailed market and finan- costume, scenery, and prop creation and storage cial feasibility analysis for the proposed museum. spaces, plus classes for performance and back-of-

16 An Advisory Services Panel Report the-house theater arts. The panel does not believe percentage of the use of these facilities would be that such a facility would threaten the existing the- at night and on weekends. Thus, shared parking ater scene beyond the threat it is already under, and should work well with the daytime use of the MTA it would help to create a critical mass of quality the- parking facilities. Any of these arts anchors could ater offerings that would raise the visibility of the be sited on any of the available MTA or CRA sites district overall. The joint instructional, promotion- or on privately held land. al, and ticketing functions could also be extended to the other theaters in the arts district, improv- Market Conclusions ing attendance and financial viability for all. The MTA’s transportation infrastructure invest- Art-House Cinema ment has enhanced and will continue to enhance An art-house cinema complex with five to seven North Hollywood’s market-based development op- small theaters showing independent, foreign, doc- portunities for multifamily residential space; con- umentary, short, and festival fare offers another ventional office space in the middle to long term; potential anchor element embraced by virtually arts and entertainment district–related develop- everyone who discussed the possibility. There are ment; and destination uses like the proposed several reputable operators for this type of com- World Animation Center. plex in California and, among them, the Laemmle chain has already shown interest in locating in a The spate of recent developer interest attests to NoHo project. this fact, as do numerous national studies docu- menting the rent premiums associated with prox- Another concept that would also differ signifi- imity to a major transit facility. However, the cantly from the stadium-seat megaplexes sur- panel cautions the CRA and MTA that there are rounding the area in every direction (as at Uni- substantial differences in near-term viability (and versal CityWalk) is the Cinema Grill or Alamo hence level of required subsidy) among the vari- Drafthouse type of complex, which integrates first-run and art movies with a casual sit-down ous developer proposals now under consideration. dining concept within the theater space itself. An additional transit boon for the area would be These dinner-movie houses have been notably construction of a bus rapidway extension east- successful in many markets around the country. ward to the Burbank Airport and the major Bur- Art Institute/Arts High School bank employment centers. Such a transit linkage An art institute complex could include student- would strengthen both office and hotel potential level and professional-level training in all disci- in North Hollywood and reinforce NoHo as a plines of the arts, including film and television well-situated yet reasonably priced alternative production and postproduction, writing, acting, to the more expensive and built-up areas to the painting, sculpture, web and graphic design, inte- south and east. rior design, drafting, and even culinary arts. In Market trends augur well for the area’s revital- addition, a tie-in with the new high school being ization. It will be led by new multifamily residen- developed to the east of the transit nexus would tial development that will enhance and expand be logical: it could provide the site of the institute the local retail market and create more local cus- on an after-hours basis, at least in the beginning, tomers for the arts and theater businesses. Once similar to the way in which many community col- this occurs, assuming a well-conceived NoHo Arts leges use public school facilities in the evening, or District marketing plan, the area could become the two schools could be programmatically linked. more of a subregional draw for the 2-million-plus The panel also recommends that the Los Angeles population of the San Fernando Valley and com- Unified School District consider designating the new high school as an arts magnet school. munities to the north. As a genuine center for the North Hollywood community takes shape, the sta- The panel believes that all four of these anchor el- tion area’s attractiveness as an office employment ements could work well together, and that a high center will grow.

Los Angeles, California, January 25–30, 2004 17 In order for this vision to be realized, there will need to be adequate public policies and implementation strategies to ensure a mix of housing choices, and to protect and preserve key arts district uses and sites. In addition to the recommendation that the CRA and the community consider adding several subregional and regional cultural and civic anchors to the arts district, the panel suggests ex- ploring the creation of a business improvement district and, even more important, an arts district foundation (both discussed later in this report).

18 An Advisory Services Panel Report Planning and Development Strategies

orth Hollywood is geographically and Challenges chronologically at a crossroads. It is situ- The overriding challenge is to create a strong, ated at the intersection of four major free- cohesive neighborhood instead of a collection of in- N ways and two transit lines and lies in the dividual and disconnected projects. Meeting this midst of the entertainment industry clusters in goal will require a clear and consistent vision, as Burbank, Universal City, and Studio City. Access well as sustained leadership to implement that vi- and convenience continue to attract residents and sion over time. This vision must balance the con- arts- and entertainment-oriented businesses. As siderable market pressure for rental residential the area’s racial and ethnic mix has diversified, so development with the need to preserve affordable too has the area’s rich mix of uncommon retailers housing, the economically fragile arts institutions, and cultural institutions. Relatively inexpensive and the eclectic atmosphere, all while taking full land values and rents have attracted a cosmopoli- advantage of the substantial transportation in- tan mix of actors, artists, students, and entertain- vestment to create a mixed-use, higher-density ment industry production workers, as well as re- town center for the community. cent immigrants. Lower land values also drive The physical condition of the public realm needs some of the land uses—including the preponder- to be improved, which will enhance both the per- ance of auto sales, repair, and storage facilities. ception and the reality of the community’s safety. Given the arrival of the Red Line subway, the con- The large-scale, expansive pavements and uncon- struction of the Orange Line bus rapidway, and trolled curb cuts that characterize the district’s the emergence of a strong residential market, the major streets should be modified to create people- community is now presented with a series of friendly places that will encourage walking, side- choices that will shape its built environment and walk activities, and serendipitous exploration. Ad- social fabric. ditional open space should be provided in areas that are accessible to the neighborhoods, and these areas should be interwoven with a network Strengths of attractive sidewalks and bikeways. Providing NoHo is characterized by a funky, eclectic mix of the number of parking spaces needed to support uses. This character is central to the identity of future development will undoubtedly be a financial challenge. the community and it has been further strengthened in recent years by the CRA’s public art, The market today does not yet support the opti- banners, facade enhancement, and streetscape mum mix of uses that would otherwise be desir- programs, which reinforce the arts district brand. able at an intermodal transit hub. The strength The area also includes a number of historically of the residential market could result in an unbal- significant and landmark structures. A strong res- anced land use pattern unless it is controlled idential market and increasing expressions of in- through a well-conceived community plan. terest by developers have created a sense of mo- Furthermore, some of the residential projects that mentum for redevelopment in the private sector. are pioneering development in the area are being CRA and MTA control of the key subway area designed in response to the rather harsh current station parcels means that a strong public-sector character of the neighborhood—creating internal vision can set the tone for future development. streets and open spaces that insulate residents

Los Angeles, California, January 25–30, 2004 19 Among North Hollywood’s strengths are its stable residential neighborhoods and historic buildings.

moving from a locally known arts district to a thriving regional cultural, commercial, and residential center. The market potential that ac- companies a transit-rich environment creates the opportunity for the emergence of a denser, mixed- use core, as well as providing a source of private investment that can be used to revitalize, stabilize, and strengthen the surrounding neighborhoods. The MTA- and CRA-controlled sites can be the catalysts for the creation of an exciting, vibrant place in which to live, work, and play. Mean- while, the emerging arts district has the potential to strengthen downtown NoHo’s identity if other from the larger neighborhood—rather than set- anchor cultural uses are developed. NoHo’s off- ting the stage for a more integrated and open beat arts scene, central location, and excellent neighborhood environment. Continuing this de- transit and freeway access are powerful assets sign trend could yield a series of residential en- upon which a dynamic community can be built. It claves rather than a neighborhood of connected is truly NoHo’s time to shine and prosper. places. The intensity of development relative to lot size for some of the newer residential projects The panel saw the primary planning and design also poses neighborhood design challenges. challenge as “defining the center”—giving downtown NoHo an identity that would put it on the The CRA’s current design regulatory tools fall map as one of Los Angeles’s hottest new neigh- short of guiding project designers and their borhoods for living, dining, entertainment, and clients to quality solutions. Urban design guide- the arts. Suggesting design strategies that will lines are needed to ensure that future projects support this vision while protecting and enhancing will come on line in a harmonious fashion, adding the historic and bohemian context of the neighbor- to the neighborhood’s character and not detract- hood that exists today was the panel’s goal. The ing from it. panel’s general plan of existing and proposed land uses is represented in the accompanying illustra- Opportunities tion. To provide a road map for implementation of this plan, the panel divided the study area into North Hollywood is poised to distinguish itself five distinct places or neighborhoods, centered from other centers in the San Fernando Valley, around a new consolidated multimodal transit cen-

20 An Advisory Services Panel Report Street trash, graffiti, and an absence of pedestrian amenities mar the public realm.

ter and connected by an open-space network. Specific development strategies for each of these NoHo neighborhoods are described and illustrated in the following section.

Development Strategies

The development program that the panel proposes seeks to implement both the market potential for the area and the land use planning and design vision: concentration of higher-density office and commercial uses along Lankershim Boulevard north of Weddington Street; preservation of existing residential neighborhoods, while allowing for increased residential density within Banners, murals, and easy walking distance of transit; and preserva- public sculpture con- tion of historic structures and local retail and cul- tribute to a growing tural uses, particularly along Lankershim and awareness of the NoHo Magnolia boulevards. identity.

Los Angeles, California, January 25–30, 2004 21 Burbank Boulevard

Key: Arts/Retail Commercial Cumpston Street

Lankershim Industrial Civic

Boulev

Vineland Avenue Existing Residential

ard Proposed Residential School/Park junga Avenue

Tu Transit Chandler Boulevard Proposed Mixed Use

Weddington Street

Magnolia Boulevard

The panel’s concept for The Lankershim Core ture highlighting the community’s identity as an existing and proposed The Lankershim Core is the high-density area arts district. general land use areas. of the downtown that encompasses both sides of Lankershim Boulevard from Burbank Boulevard Commercial core. As indicated in the “Market Po- to Weddington Street and is anchored by a pro- tential” section of this report, the panel believes posed multimodal, mixed-use transit center. Resi- that in the middle to longer term, North Holly- dents, commuters, and visitors using the local bus wood has the potential to develop into a signifi- service, subway, or Orange Line bus rapidway cant commercial node within the San Fernando could emerge from the new transit center into the Valley. NoHo has excellent transit access, high- heart of NoHo. Here at the core, people could live, way connections, and proximity to major enter- work, and enjoy convenient retail, restaurant, and tainment industry centers. Therefore it would be cultural venues along a tree-lined boulevard with a logical location for ten- to 15-story commercial/ a landscaped median. High-rise buildings as tall as mixed-use buildings. 15 stories could line the street from Burbank to Chandler Boulevard, taking the most advantage of In the near term, major tenants pioneering in the core’s proximity to transit. This district serves these commercial buildings would undoubtedly as the northern entrance to NoHo for traffic using need the inducement of substantially subsidized the Burbank freeway interchange and has already rents. In lieu of direct rent subsidies, development been marked as a gateway with a plaza and sculp- costs could be supported through publicly funded

22 An Advisory Services Panel Report Burbank Boulevard

Key: 1 Back Lot District 2 Cumpston and Chandler Neighborhood Cumpston Street

Lankershim 3 Lankershim Core 3 4 NoHo Arts District Boulev 2 5 NoHo Park Neighborhood ard Arts/Retail/Commercial Future Intermodal Transit Center/Mixed Use junga Avenue

Tu Greenway/Open Space Chandler Boulevard Industrial/Residential Office/Commercial/Mixed Use Parking Lots

Weddington Street Residential 5 1

4 Vineland Avenue Magnolia Boulevard

infrastructure improvements (such as parking isting and planned bus transit facilities—both The panel divided the garages) and tax credits. Such developer incen- local service and the bus rapidway—within a new study area into five neigh- tives could serve to reduce any necessary rent intermodal transit center on the MTA parcel adja- borhoods. subsidies. Over the longer term, the advantages cent to the former train station. This approach of location and a stronger regional economy should would free up MTA land on the east side of eliminate the need for subsidy. The panel there- Lankershim Boulevard for higher-value uses and fore recommends that the major properties along could provide operational efficiencies and more Lankershim Boulevard north of Cumpston Street convenient transfers for transit passengers. Such be reserved for office/commercial development an intermodal transit center would eliminate du- until market conditions support new construction. plication in kiss-and-ride, ticketing, and fare and In the meantime, the existing auto-related uses trip-planning information facilities. Bus bays for could remain. As public parking facilities are con- pickup and dropoff, turnaround, and layover for structed in the area, it may become feasible for both bus services could be provided either at auto storage uses to be moved to leased spaces grade or below grade with mixed-use air-rights within one or more of those garages, freeing key development above. Direct access to the sub- parcels for higher-value commercial development. way platform from the west side of Lankershim Transit station area. The panel recommends that Boulevard could be opened up at the existing consideration be given to consolidating the ex- emergency exit stairway.

Los Angeles, California, January 25–30, 2004 23 The development program for both MTA parcels vided with streets to enhance connectivity with on the west side of Lankershim Boulevard should surrounding neighborhoods. be determined by market conditions but should, over the long term, include a mix of retail, office, The panel recommends that the eastern third of hotel, cultural, recreational, residential, and enter- the MTA property be designated for mid- to high- tainment uses. A structured parking deck with rise residential. This portion of the program can 1,000-plus spaces is proposed to accommodate be built under current market conditions and will Metro patrons and the new uses in the core. This generate new tax revenues from this publicly garage would be accessed off of Tujunga Avenue owned property. Given the preference of the MTA and could be either above grade or partially below to lease rather than sell its property, it is most grade. Consistent with the district’s identity as the likely that this residential development will be in core, the panel recommends building heights in the form of rental apartments, but condominium the ten- to 15-plus-story range. Because of the sig- development would also be desirable if feasible. nificant density accorded to these buildings, a cul- The panel recommends that the MTA construct a tural facility should be required as part of the de- 1,000-plus-space garage with access off Cumpston velopment program in each building. Ground-floor Street to replace existing surface parking and for retail along Lankershim Boulevard is desirable. shared use with future buildings on the site in the evenings and on weekends. A portion of the site The panel does not believe that the proposed arena along the Chandler bikeway should be reserved use is appropriate for this site; the building’s scale for a park or other open space. The balance of the would be inconsistent with a pedestrian-oriented site should be entitled for mixed-use high-rise de- arts district, and the traffic generated by arena velopment, with the specific uses left flexible as events could overwhelm Tujunga Avenue and long as design guidelines (setbacks, massing, and other neighborhood streets between the site and so on) are met. This arrangement would provide the freeway access ramps. maximum clarity and minimum entitlement process delays for conforming development and The MTA parcel south of Chandler Boulevard has thus should make the site attractive to developers attracted the most development interest in the as soon as market conditions are met. project area. Development of this parcel should incorporate and interact with the restored bank NoHo Commons Phase II currently calls for one- building on the corner of Lankershim Boulevard story retail (most likely a grocery store use) at the and Weddington Street, and building heights corner of Lankershim and Chandler boulevards. should scale back along Weddington to reflect the Given the location of this parcel in the heart of the street’s proposed pedestrian/neighborhood con- core, it would otherwise be desirable to increase nectivity functions. the building heights on this “100 percent” corner. While the panel recognizes that it may be difficult Subway station site and NoHo Commons parcels. to amend the development program at this point, The almost 11-acre MTA property surrounding it does recommend that the developer and the the subway station on the east side of Lankershim CRA consider transferring density from NoHo Boulevard and the NoHo Commons Phase I and II Commons Phase III to the Phase II site and en- parcels are key NoHo redevelopment opportuni- courage the construction of at least mid-rise office, ties. While the NoHo Commons parcels have al- health club, hotel, or other mixed uses over the ready been entitled, the MTA parcel should re- grocery store and its affiliated parking. ceive the highest-density development program —15 or more stories—and it should feature a syn- The NoHo Arts District Neighborhood ergistic mix of uses to promote transit ridership as This neighborhood lies at the heart of the existing well as a safe and attractive pedestrian experi- arts district, including both sides of Lankershim ence. Development can be phased to accommodate Boulevard between Weddington Street and Ca- current market conditions while preserving the marillo Street and along Magnolia Boulevard be- key transit-adjacent portions of the site for long- tween Tujunga Avenue and Vineland Avenue. A term highest-value uses. The site should be subdi- strengthened arts district is a central component

24 An Advisory Services Panel Report Lankershim Boulevard currently is a wide, pedestrian-unfriendly street, not the true, visually appealing boulevard it could be.

of the panel’s development vision for North Holly- should be permitted to fill in available sites west wood. The focus in this neighborhood should thus of Lankershim. be on creating a historic, pedestrian-friendly commercial and cultural environment from the ground The panel recommends that the NoHo Commons up. Some of the arts facilities are currently housed Phase III development program be amended to in historic spaces, and the panel recommends that remove buildings that would block views and ac- these buildings be preserved and reserved for arts cess to the Academy of Television plaza from uses. The arts district also includes colorful local Lankershim Boulevard. This portion of the site retailers that provide an appealing, funky atmos- may be better used as an extended plaza or pub- phere and would most likely not survive in a lic performance space. The panel further recom- higher-rent environment. mends that the portion of the Phase III site at the corner of Lankershim and Weddington Street be The panel recommends that revenues be set aside programmed for another significant arts anchor, via a foundation or other new entity (discussed in ideally the proposed World Animation Center. The the “Implementation” section of this report) for landmark-quality design of this building and the the purchase of key theater properties to permit exciting, interactive nature of the exhibits would the retention of economically marginal arts uses in create a significant destination for arts district pa- the district. Height limitations should also be con- trons, drawing pedestrians down Lankershim sidered to protect the economic and aesthetic via- Boulevard from the transit station to the museum bility of the smaller retail uses. and the arts district beyond. The attractiveness of Lankershim and Magnolia boulevards for pedestrian exploration, outdoor While the funds necessary for the construction dining, informal public entertainment, and festival and operation of the animation museum would use should be enhanced. The panel recommends need to be raised elsewhere, the panel suggests that the CRA enlist the assistance of key elected that it is an ideal use for CRA property. The in- officials to establish a partnership with the Los creased foot traffic and enhanced community Angeles Department of Transportation to design identity generated by the museum would sub- and guide streetscape improvements. Lankershim stantially benefit surrounding landowners and should receive a true boulevard treatment with a businesses. The panel believes that CRA land is landscaped median, street trees, planter boxes, better used for this type of cultural use rather benches, and street furniture. It should not be than for residential projects that would other- widened. Magnolia Boulevard should receive simi- wise be built to meet market demand in the cur- lar streetscape improvements, and retail uses rent economic environment.

Los Angeles, California, January 25–30, 2004 25 The NoHo Park neighborhood includes beautiful public buildings such as the library, the post office, and several churches.

The NoHo Park Neighborhood terminus at the recreation center and its nar- This neighborhood includes the majority of the rower, more neighborhood street quality, is an im- civic amenities for North Hollywood, including portant east-west pedestrian spine. This may be a park, a library, a recreation center, St. Paul’s an area where homeownership incentives such as church and school, Lankershim Elementary location-efficient mortgages should apply. School and its after-school recreation area, a health The Back Lot District clinic, the post office, the fire department, and a This mixed-use neighborhood on the eastern edge YMCA facility. The neighborhood is bounded by of the study area extends from Chandler Boule- North Hollywood Park and the properties just be- vard to Magnolia Boulevard and between Vine- hind Lankershim Boulevard and extends between land Avenue and the NoHo Commons and Acad- Chandler Boulevard and Magnolia Boulevard. emy properties. It currently features a mix of The panel believes that the concentration of these both new and aging multifamily residential devel- community service amenities argues for preser- opment as well as light industrial uses, some of which are linked to the entertainment industry. vation of this neighborhood for residential uses, Once again, Weddington Street is a key pedestrian while the proximity of the neighborhood to transit spine on the east side of Lankershim Boulevard. argues for permitting infill residential construction on vacant or underused parcels and increas- The panel recommends that this area be retained ing densities somewhat. Building heights should as a fine-grained mixed-use district, both to pre- be kept to no more than two to five stories, and serve its character and to incorporate lower-cost special attention should be paid to setback re- artist housing and studio opportunities and retain quirements and streetscape investments so that local entertainment industry jobs. Design guide- residents will be encouraged to walk throughout lines or other regulatory tools should be used to the district. Weddington Street, with its western regulate setbacks and the intensity of develop-

26 An Advisory Services Panel Report Design guidelines are needed to improve the way buildings address the public realm, avoiding residential buildings such as these that loom over the street with no setbacks or open areas.

The Cumpston and Chandler neighborhood juxtaposes attractive Spanish bungalows (left) with architecturally un- distinguished multifamily buildings (far left) that are rapidly deteriorating.

ment in this district so that the almost zero-lot- dential project and the new high school respec- line character of the recent apartment projects tively. Attractive, well-designed infill residential does not become the dominant form for new con- should be permitted on these streets where oppor- struction, creating an overwhelming intensity tunities arise. The panel recommends that overall of development. density in this district not be increased beyond the existing zoning. The Cumpston and Chandler Neighborhood This residential neighborhood extends between Urban Design Guidelines Burbank Boulevard and Chandler Boulevard and between Elmer Street and Vineland Avenue. It New developments are being proposed at much appears to have been in transition for some time, higher densities than those that currently exist in with single-family homes being replaced by small NoHo’s historic core: five- to 15-story buildings multifamily buildings. The panel recommends that versus one- to two-story buildings. The panel sup- this neighborhood’s stabilization be made a prior- ports this level of development, particularly ity, including roadway and streetscape improve- around the Metro station area, as a means of cre- ments, “clean and safe” programs, and homeown- ating a strong critical mass of residents and work- ership programs. This area and the residential ers who can support local businesses and cultural neighborhood just north of Burbank Boulevard venues. However, without clear design standards are also key to maintaining housing affordability in place by which to review proposals, these proj- while the character of North Hollywood overall is ects might overpower, and in some cases eradi- improved. The properties on the northern side of cate, the local, historic, and eclectic character of Cumpston Street and the western edge of Case the district. Guidelines that will specify how Street are particularly important for enhancing larger-scale developments may coexist adjacent to the character of the NoHo Commons Phase I resi- lower-density residential, commercial, and indus-

Los Angeles, California, January 25–30, 2004 27 Burbank Boulevard Key: Boulevard Treatment with Street Trees and Landscaped Median Landscaped Pedestrian- Oriented Streets Additional Streetscape Enhancement

Cumpston Street NoHo Park/ School Green Spaces Lankershim Greenway

Boulev Civic Gathering Space Vineland Avenue

ard junga Avenue Tu

Chandler Boulevard

Weddington Street

Magnolia Boulevard

The panel’s concept for a trial buildings must be reviewed and defined panel recommends that, working in close collabo- network of open spaces. now before it is too late. Similarly, these new ration with the MTA and the community, the CRA projects must take into consideration the larger adopt not only a revised general redevelopment public realm: the connection and integration plan for the area, but also a new “Design for De- of new streets, streetscapes, and public open velopment” document that would specify detailed spaces. The panel’s conceptual sketch for an design guidelines for all new development and re- open-space network is presented in the accompa- habilitation projects in the redevelopment area. nying illustration. Since the panel generally supports the land uses The panel was given access to a number of previ- currently permitted in the area, it recommends ous planning studies for the NoHo area. Two of that the CRA use a “form-based” code approach particular note are the urban design study by the to design guidelines rather than a traditional use- Jerde Partnership and the draft urban design based code. A form-based approach would concern principles developed by Pat Smith, AICP, with itself primarily with the appropriate distribution input from the Urban Studio/John Kaliski. These of massing, building heights, and design charac- studies have addressed the need for defining teristics of buildings throughout the district, urban design and development guidelines that can rather than regulating the uses of those buildings. better assist the CRA, the MTA, and the private Form-based guidelines focus on the streetscape development community in achieving design ex- and public spaces and how buildings relate to each cellence. The panel strongly recommends that the other and to the public space. They can be particu- CRA build upon the solid groundwork that has al- larly helpful in creating and preserving places of ready been laid in these studies. In particular, the distinct character, and can also be used to protect

28 An Advisory Services Panel Report areas of undeveloped land or lower-density uses. mends that building heights be restricted to a When implemented well, form-based guidelines maximum of five stories. can also expedite the development process, since buildings that meet the guidelines can be approved • Back Lot District: The panel suggests promot- much more quickly than under a traditional building infill residential development, especially ing-by-building review process. Arlington County, lofts and live/work units, while preserving the Virginia, has successfully implemented a form- neighborhood’s existing light-industrial, mixed- based code along the Columbia Pike corridor, and use character. A four-story height maximum is Timothy Lynch, the executive director of the Co- recommended. lumbia Pike Revitalization Organization, could be Ground-Level Building Use and Design a resource to the CRA in devising an effective design review process. • The Lankershim Core: All ground-level uses should be retail or cultural uses. Ground-floor NoHo’s design guidelines should address issues spaces within new buildings in this district related to building design (massing, materials, should be designed with a minimum floor-to- and sustainability), as well as to the public realm ceiling height conducive to retail/entertainment/ and site planning. The panel did not spend time cultural uses (14-foot minimum), with a minimum addressing all these issues but instead focused of 75 percent glazing—regardless of whether re- on the critical design issues that could have an im- tail is the intended use in the near term. Parcels mediate impact on pending development projects. south of Chandler Boulevard within this district These suggestions are obviously preliminary in are encouraged to set back ten feet from the nature, and the panel encourages the CRA to con- build-to line above the second story. tinue to develop a more detailed and thorough set of design standards. •Weddington Street and Chandler Boulevard: Special attention should be paid to establishing Land Use, Density, and Intensity of Development a streetscape conducive to walking on these key east-west pedestrian circulation corridors. • The Lankershim Core: Consideration should be given to requiring a minimum floor/area ratio Residential, retail, and cultural uses should be (FAR) in the immediate transit station area to the predominant ground-floor uses. Floor-to- maximize the development potential of the tran- ceiling heights should be designed to accom- sit adjacency over time. A minimum building modate retail, cultural, or live/work space (14- height (three stories or more) might also be ap- foot minimum). propriate. The panel recommends a maximum General Building Design and Massing building height of 15 stories, consistent with a • All new or renovated buildings should conform suburban downtown core district. Mixed-use with build-to lines along the major streets. development should be promoted for all redevelopment sites in the core. • Distinctive corner-building massing is encour- • The Arts District: In order to preserve the dis- aged for buildings fronting the intersection of trict’s laid-back character and historic buildings, Lankershim and Chandler Boulevards, where the panel recommends that new construction be maximum building heights are allowable. limited to a maximum height of two or three • Building massing for parcels at the intersection stories and that when existing buildings are of Lankershim Boulevard and Weddington modified, a setback be required for all floors Street is encouraged to strengthen and promote above two stories. the arts district’s historic and civic character, • The NoHo Park and Cumpston/Chandler resi- established in part by the former Security Pa- dential neighborhoods: As property values cific Bank building and the El Portal Theater. drive density up from single-family homes to Corner massing should not exceed five stories small apartment buildings, the panel recom- at this intersection.

Los Angeles, California, January 25–30, 2004 29 Parking and Circulation •A unified design for street furniture and light- • Exposed parking-garage facades should be dis- ing should be established and maintained. couraged within the Lankershim core and the • Neighborhood streets should be enhanced by arts district. adding landscape treatments and lighting. • Parking garages should be located midblock and Open Space wrapped with other uses when fronting a major • The regional bikeway system should be en- street, including the important pedestrian con- hanced with generous landscaping and pedes- nector streets such as Weddington Street. trian amenities, and it should be linked with the community’s green spaces. •Very large-scale parking garages (such as those for MTA parking requirements) should be dis- •A central civic gathering space should be devel- couraged. Instead parking needs should be met oped that can be programmed with community by multiple smaller, conveniently located events, festivals, plays, concerts, and other spe- garages throughout the district. cial events.

• Parking entrances and other curb cuts should • Existing green spaces should be improved, and be discouraged along Lankershim Boulevard, the ballfields and playgrounds at the schools in Weddington Street, and Chandler Boulevard. the area should be incorporated within the open-space network. • Improved pedestrian and vehicular circulation • Small public park spaces should be created in should be promoted throughout the neighbor- residential areas that do not have them. hood by introducing new streets and breaking down the scale of large superblocks. Neighborhood Preservation • Neighborhood connections to existing civic re- Streetscapes sources, including the schools, library, recre- •A landscaped center median along Lankershim ation center, post office, health center, and Boulevard between Burbank and Camarillo YMCA, should be strengthened. Street should be provided, and the existing landscape and hardscape elements along the •View corridors to important civic uses should be corridor should be enhanced. maintained and strengthened.

• Sidewalks should measure a minimum of 12 feet • Residential districts should be anchored with wide along Lankershim, Magnolia, and Chan- civic architecture and uses. dler boulevards and should be landscaped.

30 An Advisory Services Panel Report Implementation

aving a vision for North Hollywood is criti- rising property values, which could otherwise cal, but knowing how to make the vision a render them no longer economically feasible. Al- reality is equally important. The two lead though one developer active in the area remarked H players, the CRA and the MTA, can pre- that the arts district should be allowed to succeed pare the area and the deliver the key development or fail on its own, the panel does not agree. The sites. Private landowners have equally critical arts, at all levels, need to be sustained and sup- lead roles in bringing their properties into play. ported in order to remain viable. The panel be- Other stakeholders in the community have im- lieves that the district’s artistic character will in portant supporting roles to protect, preserve, en- fact increase the value of new development, both hance, and market the NoHo Arts District and the residential and commercial. It is not unreasonable broader NoHo community. to require developers to underwrite, in some fair manner with the CRA and the MTA, the creation Five Key Strategies of a NoHo Arts District Foundation. The panel has recommendations for these stake- The NoHo Theater and Arts Business Collabora- holders regarding five implementation strategies: tive has recently begun operations without yet of- special purpose organizations, marketing, finance, ficially establishing itself as a nonprofit organiza- planning, and collaboration. The panel also offers tion. An organization such as this could serve as some recommendations specifically for the MTA the genesis for this foundation, since it already has joint development program. the cooperation of many of the arts and theater entities and leaders. Funding could come from a Special Purpose Organizations variety of sources, including established founda- The key goal should be to differentiate North Hol- tions and corporations that support the arts, gov- lywood from other competing locations. NoHo’s ernment grants, and special events, but the panel best asset is its unusual arts district, which should believes that a dedicated revenue source would be be strengthened for the long term. This commu- needed for the foundation to make a significant nity identity is as important as the subway station impact, especially since property values will con- and the bus rapidway in creating new market op- tinue to rise as the area matures. Other implemen- portunities. Therefore, a top priority for CRA re- tation tools recommended by the panel will serve development efforts should be the establishment to preserve the storefront character of the main of additional cultural anchors along Lankershim to boulevards, but in order to retain their use for the enhance the existing arts district. Such anchors arts, some form of ownership control will need to may include the World Animation Center, a relo- be asserted as well. cated and expanded YMCA, a theater center, and an art-house cinema. There is already a percent-for-art requirement for new development projects, and this is a notewor- The existing arts organizations will also need nur- thy start. But the use of these funds is controlled turing and protection. A new concept favored by by the project’s developer, and so the results can the panel would be establishing a nonprofit foun- be spotty. The panel believes that every new proj- dation, the NoHo Arts District Foundation, to ac- ect should dedicate its required arts contribution quire properties such as existing small theaters to the proposed NoHo Arts District Foundation. and gallery spaces so that their physical integrity In addition, the CRA needs to take a proactive and cultural uses can be maintained regardless of role in dedicating a portion of tax increment fi-

Los Angeles, California, January 25–30, 2004 31 The panel’s proposed NoHo Arts District Foun- dation would help small theaters and galleries like these to purchase their buildings before rising property values price them out of the neighborhood.

nancing to this foundation as well, perhaps seed- Two desirable uses that would optimally locate in ing it with significant funds in the beginning so the NoHo core are hotel and office. Under existing that a critical mass of structures can be pre- zoning, the western portion of the MTA site alone served before prices escalate further. The man- could support as much as 1.2 million square feet of agement of the arts foundation would include a office space. Absent proactive intervention, how- combination of the arts, business, and develop- ever, it could be a long wait before sufficient de- ment communities so that all their interests mand for these uses materializes. would be mutually served. The panel recommends that the joint marketing The panel is also aware that there have been ex- team approach both Hilton and Marriott, educate tensive efforts to date toward creating a business them about what is happening in NoHo, and ask improvement district (BID). There is currently them which hotel products might be appropriate about $1.5 million available to fund this district. for this market today and which might become ap- The panel strongly encourages the property own- propriate as other components of the NoHo vision ers to vote for the creation of this BID, whose materialize. It may be that there is enough pre- purposes would include promoting the area, man- sent market demand for an extended-stay hotel or aging a “clean and safe” program, and maintaining a facility similar to the Oakwood Garden Apart- street furniture and other elements of the public ments. Regardless of whether Hilton or Marriott realm. This function is a critical part of a success- think there are sufficient current hotel opportuni- ful redevelopment effort, and annual contributions ties, the team should ask for a good demand analy- from area stakeholders, including the owners of sis of the area as a whole, not an opinion on a spe- yet-to-be-developed properties, are a common and cific site. The resulting information will be more justifiable means for raising the necessary funds. valid than any consultant study as to if and when a hotel will be feasible. Marketing As previously discussed, there is presently a Office developers know that the tenants to fill strong market in North Hollywood for rental and their buildings generally are already located ownership residential product, a good market for within two to three miles of their site. The NoHo neighborhood retail, and little or no market for marketing team should inventory the existing of- office, hotel, or regional retail. All markets are fice users in the immediate area—especially the cyclical, and those that are hot today will not nec- larger users—to determine their immediate and essarily stay so. The panel recommends that the future needs and to make them aware of the avail- business community, the MTA, other property ability of office land nearby. Keep in touch with owners, and the CRA form a joint NoHo market- the inventory list. Potential tenants forget and ing team and become proactive in creating and ex- need to be reminded that NoHo can be part of panding opportunities for balanced development, their space planning. Pay close attention to changes rather than waiting passively for new market op- affecting major office users, because they may portunities to emerge. eventually need significant new blocks of space.

32 An Advisory Services Panel Report Government agencies lease substantial space in A proactive marketing the area, and these leases have been important effort is recommended catalysts in starting new buildings in North Holly- to address office vacan- wood. These catalysts do not have to stay where cies and create balanced they are. As existing leases near their end of development opportunities. term, use preleasing by government agencies for five-year terms as the catalyst for new office buildings.

Retail space is marketed by retail real estate brokers who represent various retail tenants. Good brokers will not recommend a location until they have done research on the area and are comfort- Finance able that their clients will do well there. Doing this research takes time that they will not spend The panel believes that the CRA should reorder unless the available space will enable them to its funding priorities. Rather than using public fi- do several deals and make good commissions. nancial resources to write down land for develop- Macrolevel retail feasibility studies for the study ers, the agency should use resources to make the area show little retail demand, owing to area de- market stronger—lifting demand and making mographics and existing competition. The sales of projects feasible at today’s land values. Land pur- retailers in the area, however, suggest that the chase subsidies should be used only to facilitate market is much stronger than it is currently per- cultural or strategic developments. Subsidizing ceived. The joint marketing team should quantify market-rate housing is no longer a good use of how existing retailers are doing, identify the few the CRA’s financial resources. Land assemblage good retail brokers who work in the area, and ap- should continue to be a CRA tool, but primarily as a way to make the development process quicker proach them in person to inform them about the and more attractive. market, available space, and development opportunities. Make it the team’s business to provide The CRA and the MTA have already made sub- these brokers with all the information they need stantial investments that should make the NoHo for their clients. The goal should be to make the area more attractive for developers. They cannot brokers either a formal or informal part of the rest on their laurels, however, and must join to- marketing team. gether to engage the city and the county in making the additional streetscape, lighting, and road NoHo’s rental residential market is strong, as improvements that are needed to create a lively evidenced by the several projects going forward, pedestrian- and transit-friendly environment. The but the best plan for the area is not one of 100 per- Los Angeles Department of Transportation is a cent apartments. A broader spectrum of residen- key stakeholder in NoHo, but it doesn’t appear to tial products will stabilize the area and reduce know that yet. The NoHo vision needs to be widely market risk. Elsewhere in the nation, rental mar- publicized among all of the agencies with capital kets have become soft, and real estate capital is no improvement budgets that impact the area. longer flowing into apartment projects. This may well happen here in the near future. A balance of CRA Project Planning and Implementation other housing types (senior housing, work/live The panel’s suggestions for the CRA are intended housing, condos, and other new high-density to strengthen its capacity to plan and manage the ownership types such as stacked townhouses) NoHo redevelopment effort. Perhaps most impor- should be added to the planned mix of housing tant, the panel believes that the CRA needs to re- products. Developers specializing in these prod- organize and to call on outside talent with expe- ucts should be identified and approached for de- rience in real estate deal making. The agency’s velopment proposals. internal structure should be organized at the local

Los Angeles, California, January 25–30, 2004 33 Improving the public realm with pedestrian- friendly streetscape improvements should be a priority.

level by function, separating planning from invest- ered to issue the requisite approvals for a project ment and both from community relations. to move forward expeditiously.

The CRA should promulgate design guidelines for Rather than wait for developers to make site- all properties in the study area. These guidelines specific proposals, preapprovals based on the should be concise yet specific and should clearly adopted redevelopment plan vision should be put set forth the rules of engagement for future devel- in place (i.e., this site is already approved for a opment projects. Agreement on these guidelines ten-story building with this density, this setback, must be obtained from the MTA and any other and so on). Just as suburban office park develop- government entities involved in the project ap- ers put in the roads and utilities to sell their sites proval process prior to the MTA’s release of any to future tenants, the CRA should “set the table” solicitation for development proposals. This step is for development by clarifying the regulatory ap- essential. In the solicitation, the MTA should set proval process as much as possible prior to devel- forth its requirements for replacement of facilities oper involvement. and protection of its interests, but development on Collaboration the site should be controlled by the CRA-developed guidelines. In the panel’s estimation, every participant in the North Hollywood redevelopment effort has some, The objective should be to support the controlled but not all, of the qualifications necessary to cre- and coordinated redevelopment of the area. The ate high-quality projects. The combination of two CRA must streamline what appears to developers or more stakeholders collaborating on a particu- to be a ponderous approval process, especially for lar site can produce a powerful development force projects that require a change in zoning and thus significantly greater than what any one participant are not “by right.” Subjecting developers to layers alone could achieve. Such collaboration should be of review and the conflicting requirements of vari- the rule and not the exception, and should be ous public agencies results in confusion, wasted strongly encouraged from the top down. Collabo- resources, and discouragement. Developers hate ration requires flexibility, compromise, a willing- uncertainty and will go elsewhere if confronted ness to assume some risk, and a determination to with too much bureaucracy. The locus of control resist the separate institutional imperatives that should remain with the CRA, but the process otherwise undermine joint undertakings. These should require sufficient input from other in- requirements can be challenging when two or volved agencies to ensure that their interests are more public-sector agencies, each with different met without subjecting developers to fruitless du- agendas, share a public stage. Thus, leadership plications of effort. The CRA should be empow- at the very top must pave the way for close, sus-

34 An Advisory Services Panel Report tained cooperation between the CRA, the MTA, source for new projects. The MTA could adopt and other public agencies. These entities should the role of parking finance and management czar aim to speak as one voice to the business commu- in the area and view this role as a profit center. nity. The reward, as every great actor knows, is Throughout the nation, parking at mass transit that strong fellow actors only serve to make the stations is becoming paid parking. While it may be overall performance better. Such partnerships, important to offer free parking at the Metro sta- however, should be undertaken on a site-specific tion today, as ridership in the system builds, the basis and not broadly for the entire area. Partner- day will come when it is feasible and thus desir- ing on one site is difficult enough; doing so on mul- able to charge for parking. The MTA should plan tiple sites exponentially increases the difficulty. and prepare for this eventuality. Examples of possible financial collaboration tools that could be used in various combinations to im- Finally, it goes almost without saying that the prove project feasibility include coupling CRA CRA and the MTA must work together to pro- tax increment financing with MTA flexibility in mote the arts district. New avenues for this part- ground-lease terms; tax abatement benefits; de- nership should be developed. For example, the veloper construction of improvements in exchange panel believes that MTA sponsorship of the annual for favorable land-lease terms from public enti- NoHo arts festival would dramatically increase at- ties; inclusion of investors with longer-term in- tendance and thus ridership. vestment goals, such as pension funds and life insurance companies, in financing projects with Recommendations for the MTA longer-term upside potential; and public agency lead tenant commitments. The MTA’s extensive land holdings present extra- ordinary development opportunities that may not There are also many opportunities for more indi- be fully appreciated by the development commu- rect forms of financial collaboration. For example, nity. To capture the potential of these sites, the parking should be viewed as a collective resource for the entire area. MTA parking spaces should be MTA has instituted a joint development program shared with other area uses during nonpeak hours to forge the public-private partnerships necessary and should be physically combined with non-MTA to bring these projects to fruition. The program parking uses to increase economies of scale and has been successful, but its effectiveness, espe- reduce per-space costs. Spaces built for area build- cially in developing the North Hollywood sites, ings should be leased to developers, and the CRA could be enhanced through the implementation of should promote this as an appropriate parking the following recommendations.

The ULI panel and the CRA and MTA staffs discuss the challenges and opportunities for redevelopment in North Hollywood.

Los Angeles, California, January 25–30, 2004 35 Metro station areas can be important public gathering places that add value to surrounding developments, which in turn provide the people who energize the station areas.

Internal Resources and Procedures The joint development program must be made a than creating obstacles must be the rule, and the priority within the MTA and supported by the en- team approach should be emphasized in a revision tire organization. Within the last four years, the of the agency’s “Joint Development Policies and well-established joint development program of the Procedures” documentation. Washington Metropolitan Area Transit Authority Consolidation of proposal review process. The joint in Washington, D.C., has approved projects that development solicitation and evaluation process will generate approximately $145 million over the should be reviewed to ensure that it is compre- term of the agreements. Given the amount of de- hensible and effective. The panel reviewed the velopable property that it owns, the MTA’s joint MTA’s flow chart entitled “Joint Development development program has a similar potential to Implementation Procedures,” which details the produce revenue as well as to increase ridership, steps involved in the process. It is a two-step eval- but to achieve these objectives the program must uation, the first level of which is a checklist review have the explicit support of top management and seemingly used as a screening tool. If a proposal other departments throughout the organization. meets this threshold, a recommendation is then taken to the board and approval is sought to exe- Multidisciplinary staff. Success begins with a cute an Exclusive Negotiating Agreement (ENA). strong, committed program staff, dedicated solely The second level is an evaluation of additional, to joint development activities and composed of more detailed information that the developer sub- professionals from many disciplines. Staff should mits after execution of the ENA and subsequent have extensive experience in managing public and negotiation of an agreement for which board ap- private development projects, planning, financial proval is sought. analysis, and real estate law. In other words, MBAs, planners, and lawyers should be on board, as well The panel suggests consolidation of some of these as people with direct development experience to steps. The developer should be required at the out- lead the program. Supplementary consultant re- set to submit a very detailed proposal that is thor- sources may be used as necessary for specialized oughly reviewed by the evaluation team, with a tasks beyond staff expertise, but their involve- recommendation on selection of a developer taken ment should be kept to a minimum. to the board as a first step. This would ensure that the board only has to consider a serious proposal Interdepartmental support. Other departments that has met all the fundamental requirements. such as operations, general counsel, and engineer- The second step should be approval of terms that ing must cooperate with joint development staff to have been further negotiated (to the MTA’s ad- get projects underway. Solving problems rather vantage, of course) and set forth in a term sheet

36 An Advisory Services Panel Report Redevelopment of surface parking lots as vibrant mixed-use places that will generate tax revenues and transit ridership has been a successful strategy for transit agencies around the nation.

with a request that the board authorize staff to the community, developers, and other agencies in incorporate these terms into an agreement. No discussions about potential project parameters, further board action should be necessary. the better.

Procurement policies. Joint development should Circulate an annual work program. The MTA be exempted from the MTA’s standard procure- should consider the release of an annual “Joint De- ment policies and procedures, and a new set of velopment Work Program” document that would procedures should be developed that would per- be distributed to the CRA and other jurisdictional mit the requisite coordination with entities out- representatives to notify them of the MTA’s inten- side the MTA and would expedite the processing tion to market specific sites in the upcoming fiscal of proposals. Selecting a developer is not like year. Development issues, priorities, and con- buying routine supplies or services and should straints could then be discussed with the local ju- be not be treated in the same manner within risdictions and addressed in advance of the release the organization. of any solicitation. This additional effort at com- Parking facilities. The issue of replacement of munication with local governments is essential to MTA facilities, especially surface parking facili- achieving a smooth development review process ties, should be addressed before offering a site for and can save both the MTA and its developer development, if possible, by determining the alter- partners much wasted time and effort. This offers natives for relocation of interim and permanent a good time to begin the process of organizing facilities and identifying possible financing alter- public support for development concepts and to natives to the developer’s assumption of the cost. identify incentives that could be put in place to en- Creative solutions should be considered, such as hance the development opportunity. Any possibil- consolidating parking into several smaller struc- ity of assemblages with adjacent public or private tures instead of one large behemoth or devising land should also be explored. The goal of such co- a system of shared parking. The desirability of a ordination is to prepare the jurisdictional repre- local shuttle bus service (and possible mechanisms sentatives who will participate in the project ap- for funding it) should also be considered at this proval process for the release of the site and to stage in the process. enhance the attractiveness of the site offering to the development community. External Collaboration The MTA’s joint development program cannot suc- Joint marketing effort for commercial development. ceed without the informed and enthusiastic partic- The CRA and the MTA must cooperate to ensure ipation of numerous external stakeholders. The the successful development of the MTA NoHo earlier in the process that the MTA can engage properties. Since the panel’s vision for the NoHo

Los Angeles, California, January 25–30, 2004 37 North Hollywood’s former train station could be the site of a new intermodal transit center integrated within a mixed-use development that would include hotel, cultural, retail, office, and/or entertainment uses.

study area includes a significant component of major stakeholders and that everything possible high-density commercial development for which has been done to reduce the developer’s risk to an the market is currently uncertain, a joint market- acceptable level. ing effort should be instituted to jump-start near- term commercial development interest. Such an Requests for Proposals. The momentum for devel- effort could include a developers’ forum with opment must be sustained. The joint development prominent support from the mayor, the city coun- process is not a passive exercise. Rather than cil, the county, and the CRA to provide informa- waiting for an unsolicited proposal, the sites tion on the NoHo vision and the particular oppor- should be aggressively marketed. The marketing tunities these sites present. Financial incentives effort should culminate in the issuance of an RFP should be highlighted that would enhance the at- for the sites with a commitment from the CRA to tractiveness of this location for office/retail devel- expedite approvals and streamline the process opment, such as: for the selected developer. The acceptability of phased development and long-term buildout • discounted ground rent until project stabiliza- should be emphasized. Alternatively, the MTA tion; may want to consider the use of real estate bro- • replacement of parking and station facilities at kers to identify prospects and continue the mar- no cost to developer; keting effort if there is no satisfactory initial response to the RFP. A developer may be willing to • property tax abatement; assume a broker’s fees if the broker is able to secure the opportunity on reasonable terms. Inter- • reduction or waiver of fees; and ested parties would have to submit the standard • assemblage opportunities with adjacent public information required in an RFP. or privately owned land. Inclusive proposal review process. The MTA’s pro- The vision for NoHo should be repeatedly em- posal evaluation process should be as inclusive as phasized to instill developer confidence that in- possible in order to ensure CRA and public sup- vestment in commercial development in this rela- port of the selected developer. The CRA, other tively untested market has the full support of the designated public agencies, and representatives of

38 An Advisory Services Panel Report community organizations should be involved in all integrated approach to development on its proper- aspects of the process except for the negotiation of ties, all three of the MTA properties at the station proprietary matters between the MTA and the de- should be offered for development at the same veloper. time, including the site of the train depot and the property north of the Orange Line right-of-way, Competitive negotiations. Simultaneous negotia- unless there is an exceptionally strong rationale tions with two or more competitive developers for offering them piecemeal. The MTA should be should be considered to achieve project objectives. seeking landmark projects that will interface with A “selected developer” and an “alternate selected the new transportation facilities and enhance their developer” could be designated. effectiveness. Given the size of the parcels, a mas- Finally, the panel believes that the importance of ter developer and phased development strategy consolidating subway and bus rapidway facilities will be required, ultimately involving multiple de- at the North Hollywood station into a new multi- velopment entities. Only highly qualified and well- modal transportation center cannot be overem- financed developers need apply. phasized. In order to ensure a well-balanced and

Los Angeles, California, January 25–30, 2004 39 Conclusion

he panel believes North Hollywood is well and the CRA and in the planning and design stud- positioned for a dynamic period of growth ies already completed. The task now is to move to and revitalization. The primary challenge the final implementation phases of the revitaliza- T facing the CRA, the MTA, and the commu- tion effort. The panel’s key recommendations are nity will be to guide that growth and develop- summarized as follows: ment so that an integrated urban village neighbor- • Strengthen the arts district. Use available re- hood is created, not merely a series of individual sources to add arts institution anchors; create an projects. arts foundation to purchase and preserve key The panel advocates a vision for NoHo featuring a properties; restrict building heights to hold prop- balanced, mixed-use downtown core and a vibrant erty values down and protect the district’s ex- arts district surrounded by stabilized and strength- isting character; and form a BID to market and ened residential neighborhoods that provide a maintain the district. variety of housing options for residents of all in- • Create a livable mixed-use downtown. Consoli- come levels. The eclectic, funky character of NoHo date transit services at an intermodal transit should be preserved and enhanced with new dining, station facility; prepare design guidelines that entertainment, retail, and arts attractions. Office provide a planning framework for a walkable, and hotel uses can be added to the mix as the mar- livable community and at the same time expe- ket for these products develops; until that time, de- dite the development process; and don’t allow velopment opportunities should be reserved for the strong market for rental residential devel- these uses so that the full potential of the transit opment to overwhelm the area. infrastructure will be realized. Streets and public spaces should receive priority attention so that • Invest in the public realm. Give Lankershim residents, employees, and visitors all enjoy and Boulevard a real boulevard treatment, with a feel safe walking within the neighborhood, linger- landscaped median, street trees, planter boxes, ing at a sidewalk café, or biking to visit a friend. and furniture, so that traffic is slowed in the core, shoppers, arts patrons, and other walkers are Achieving this vision will require determined and welcomed, and drivers are signaled that inter- enlightened leadership and skillful collaboration esting attractions are nearby; implement effec- across agency boundaries. The foundation for suc- tive “clean and safe” programs that will improve cess exists in the work already done by the MTA the overall maintenance and safety of the community; and build on the existing NoHo park and greenway plans to create a network of pocket parks, landscaped streets, and bikeways throughout the community to provide visual relief from the intensity of development in the area.

• Be proactive in marketing the area and reduc- ing development uncertainty. Coordinate and be NoHo’s potential as a aggressive in marketing the area to developers walkable, arts- and and potential tenants; streamline the CRA and transit-oriented urban MTA development approval processes and use village is already evident. development guidelines to preapprove as many

40 An Advisory Services Panel Report sites as possible; create shared parking strate- minded planners at the turn of the last century, gies and package development incentives to “Make no little plans; they have no magic to stir maximum effect; and use the creative energy of men’s blood.” North Hollywood has its own special the community to inspire and support the revi- alchemy, and with the public, private, and non- talization process. profit sectors all working together in creative partnership, the panel expects that the commu- The panel is confident that NoHo is on the verge nity’s transformation into a full-fledged urban vil- of emerging as one of Los Angeles’s hottest new lage will appear magical indeed. neighborhoods, and the community should aspire to nothing less. As Daniel Burnham so aptly re-

Los Angeles, California, January 25–30, 2004 41 About the Panel

Frank J. Sparicio Betz’s responsibilities include directing a national practice that focuses on the design of theme parks, Panel Chair resorts, retail projects, industrial/office parks, and Rumford, Rhode Island correctional facilities. He has over 25 years of experience in representing clients at planning com- Frank J. Sparicio is founding principal in Corpo- mission meetings, zoning hearings, city council rate Real Estate Strategies, a consulting firm meetings, and other public meetings. dealing primarily with the repositioning and dis- position of assets resulting from consolidations An active member of ULI, Betz has served on sev- within the corporate sector. Previously, he served eral advisory services panels and project analysis as senior vice president of Fleet Boston, where he teams and is a member of the Community Retail was responsible for the bank’s corporate real es- Council (CRC Green Flight). He is a graduate of tate assets, including 10 million square feet of University of Cincinnati, where he received a commercial space and more than 800 branches, bachelor’s degree in urban planning and design. offices, and operations centers.

Before joining Fleet Boston, Sparicio was respon- Toni L. Griffin sible for all major real estate transactions as di- Washington, D.C. rector of corporate real estate for GTE, a position in which one of his principal responsibilities in- Toni L. Griffin currently serves as the deputy volved the relocation of the company’s entire tele- director for revitalization planning in the Wash- phone operations to a new headquarters in Las ington, D.C., Office of Planning. She oversees Colinas, Texas. Earlier, he served as an officer of large-scale redevelopment projects, neighborhood Harco, the Hartford Insurance Company’s real planning, and an overall strategic revitalization estate subsidiary. plan for the city in coordination with other public, private, and nonprofit entities. She has spent the A member of the Urban Land Institute (ULI) for last two years building a staff of seventeen plan- more than 30 years, Sparicio has served as vice ners to tackle complex urban development and chair of its Corporate Real Estate Council. He neighborhood planning projects, including revital- also has served on a number of advisory services ization of the Anacostia waterfront; reuse of the panel assignments. downtown existing convention center site; development of the historic St. Elizabeth’s Hospital Douglas Betz campus; and completing strategic neighborhood action plans for every neighborhood in the city. Dayton, Ohio Previously, Griffin served as the vice president Douglas Betz serves as a senior partner of Wool- for planning and tourism development for the pert LLP, a nationally known A/E/P firm of 650 Upper Manhattan Empowerment Zone Develop- people. He is the principal-in-charge of the firm’s ment Corporation in New York City. Her princi- developer and private-sector group, which totals pal challenge was to position Harlem, a neighbor- 85 people. He is experienced in leading multidisci- hood with a rich and diverse African American plinary teams of professionals and is responsible and Latino cultural heritage, to take advantage for managing special projects that involve plan- of New York’s growing tourism economy. With a ning expertise. small team, she created a comprehensive heritage

42 An Advisory Services Panel Report tourism initiative designed to stimulate economic nomic development impacts of transit access, and development opportunities through tourism while she has participated in numerous local planning maintaining the highest level of cultural preserva- and zoning processes. To date, construction along tion and balance of gentrification. Metrorail rights-of-way at or near WMATA stations has totaled $15 billion. Hill is currently work- Prior to moving to New York, Griffin was an asso- ing on strategies to position the remaining prop- ciate partner with the Chicago office of Skidmore, erty in WMATA’s joint development inventory to Owings & Merrill LLP. Joining the firm in 1986 receive the maximum economic benefits. after completing her degree in architecture at the University of Notre Dame, she was involved in Prior to joining WMATA, Hill was a principal in architecture and urban design projects including a residential condominium development firm and commercial and office developments in London, a deputy director of a federally funded community Barcelona, Sydney, and Beijing and a development development corporation, both in Boston. She is plan for Chicago’s historic Bronzeville neighbor- a graduate of Brandeis University, Columbia Uni- hood. In her final role at SOM, Griffin managed versity, and Boston College Law School. She has the Detroit project office for the General Motors also completed the Minority Developers Execu- global headquarters at the Renaissance Center tive Program at the Massachusetts Institute of project. In addition to coordinating all architec- Technology. tural and engineering efforts between the client and design consultants, her role also involved Christopher W. Kurz working with various city, state, and civic agencies to establish policy frameworks for the rede- Baltimore, Maryland velopment of the Detroit River waterfront and Christopher W. Kurz is president and CEO of the central business district. Linden Associates, Inc., a regional real estate ser- In 1998, Griffin completed a year-long appoint- vices and mortgage banking company engaged in ment as a Loeb Fellow at Harvard University’s the financing, acquisition, development, and man- Graduate School of Design. As a Fellow, she ex- agement of commercial property. The firm also plored methods of using cultural heritage and consults for corporations on real estate matters. historic preservation as a means toward creating Previously, he was a cofounder, chairman, and economic and community development in urban CEO of McGill Development Company, which ethnic neighborhoods. Her activities that year grew into the fourth largest commercial real es- also included teaching an urban design studio at tate development company in the Baltimore met- the school and traveling to Cuba. ropolitan area. Kurz served as chairman of the board of directors and cofounder of Columbia Ban- corp and the Columbia Bank, a $500 million, pub- Elisa Hill licly traded bank holding company. As a principal Washington, D.C. at Alex Brown Real Estate Group, Inc., he ac- quired investments for pension fund clients. Other Elisa Hill is currently supervisor of property companies with which Kurz has been involved in- planning and development for the Washington clude the J.G. Smithy Company, Maryland Na- Metropolitan Area Transit Authority (WMATA) tional Corporation, and the Rouse Company. in Washington, D.C. In this capacity, she is one of the managers of WMATA’s joint development pro- Kurz holds an MBA from the Wharton School at gram, considered to be among the most successful the University of Pennsylvania and a BA from in the nation. Her duties include evaluation of pro- the University of Pennsylvania. A ULI member, posals for development of WMATA properties and he has been chair of the Baltimore District Coun- negotiation of development agreements. cil, vice chair of the Small-Scale Blue Development Council, and a National Program Committee mem- At WMATA Hill has worked with a number of ber. He is also a member of the International communities attempting to maximize the eco- Council of Shopping Centers, a past member of

Los Angeles, California, January 25–30, 2004 43 the National Association of Industrial and Office development department. He recently completed Properties and the Mortgage Bankers Associa- a transit-oriented development analysis of the new tion, and a past board member of the Catherine stations that will be built as part of BART’s exten- McAuley Housing Foundation in Denver. sion from Fremont to San Jose and Santa Clara.

Terry R. Margerum Zane Segal San Francisco, California Houston, Texas Terry R. Margerum is a senior managing direc- Zane Segal is a project director, marketing con- tor of Sedway Group, a division of the CB Richard sultant, and real estate broker with Zane Segal Ellis Consulting practice. He has over 25 years of Projects, Inc. Specializing in mixed-use, residen- experience in upper management and consulting tial, retail, historic, hospitality, urban, and resort positions in both the public and private sectors. properties, he has 25 years of experience in real He is an authority and frequent speaker on tran- estate venture management, development, con- sit-oriented development and public/private joint struction, brokerage, and marketing on a range of ventures. He has extensive experience in redevel- property types, including land, lofts, townhomes, opment, asset management, strategic planning, custom homes, low- and mid-rise condominiums, fiscal impact analysis, resort development, enter- hotels, retail centers, office buildings, subdivi- tainment retail development, and development sions, and sports facilities. feasibility studies. He also has substantial experience as an owner’s representative in securing He received his bachelor’s degree from the Mas- project entitlements, especially in complex politi- sachusetts Institute of Technology and a master cal settings. of fine arts degree from the University of South- ern California, and he has studied graduate-level In addition to many conventional purchase and sale architecture at the University of Houston. transactions, Margerum has also been involved in a number of more complex negotiations, including Segal is vice chair of the ULI Houston District long-term ground and air-rights leases, sale of Council and has served on three ULI advisory transferable development rights, development services panels. He was the founding executive agreements among and between both public and director of the Museum District Business Alliance private entities, joint construction and use agree- and the first president of the Houston Association ments, and transit special access agreements. for Film and Television and is often published and quoted by the media as a spokesperson for devel- His management experience has included execu- opment, urban design, and the arts. tive positions with the Association of Bay Area Governments; Vail Associates, where he managed His community activities include participation in much of the planning for Beaver Creek, Vail’s sis- the Regional Planning Committee of the Greater ter resort; and the San Francisco Bay Area Rapid Houston Partnership, delivering presentations on Transit District (BART), where he was hired to urban design for Imagine Houston, and serving as establish and direct the agency’s joint real estate president of the Sparacino Company Dancers.

44 An Advisory Services Panel Report