Community Redevelopment Agency afthe CITY OF LOS ANGELES ~.~ eRA/LA ~~ S,,"c'g ,c~~'''cce., w"" ,oh, & ""m9 DATE I September 11, 2007 FILE CODE I 384 South Soting Street i Si.i:e 800 T 213 977 1600 ¡ F 213 977 1665 Los Arge:es! C8liforri¿i 90013-11'58 www.crala.org CRA File No.: 57§/ CFI No: 07-0600-S1 V Council District City-wide Contact Person: Angela Ovalle (213) 977-1966 Honorable Council of the City of Los Angeles John Ferraro Council Chamber 200 N. Spring Street Room 340, City Hall Los Angeles, CA 90012 Attention: Alan Alietti, Office of the City Clerk COUNCIL TRANSMITTAL: Transmitted herewith is a Report for review by the Housing, Community, and Economic Development Committee and the City Council in response to a request of the City Council made on August 1, 2007 to REPORT BACK IN 30 DAYS ON THE CURRENT STATUS OF PIPELINE AGENCY- SPONSORED PROJECTS AND THEIR EXPECETED COMPLETION DATE RECOMMENDATION That City Council review, and then receive and file, the report requested by the Housing, Community and Economic Development Committee. ENVIRONMENTAL REVIEW The recommended action does not constitute a "project" as defined by the California Environmental Quality Act ("CEQA"). FISCAL IMPACT STATEMENT There is no fiscal impact to the City's General Fund, as a/Val result of this action. .. C~Executiv:õificer SEPt 8 2007 HOUSING, COMMUNITY & ECONOMIC DEVELOPMENT '2=~' cc: Alan Alietti, Office of the City Clerk (Original & 3 Copies on 3-hole punch) Lisa J. Smith, Office of the CAO Paul Smith, Ivania Sobalvarro, Office of the CLA Andrew Westall, Council District 10 Helmi Hisserich, Office of the Mayor Neil Blumenkopf, Noreen Vincent, Office of the City Attorney REPORT TO HOUSING, COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE REPORT BACK IN 30 DAYS ON THE CURRENT STATUS OF PIPELINE AGENCY-SPONSORED PROJECTS AND THEIR EXPECETED COMPLETION DATE AUGUST 31 2007 BACKGROUND On August 1, 2007 the City Council considered the Agency's Fiscal Year 2007-2008 (FY 2008) annual budget As part of the approval of the budget, the Agency was requested to report back on the current status of pipeline Agency-sponsored projects and their expected completion dates. STATUS OF PRIORITY PROJECTS This quarterly report on the status of priority project provides a description of the current status of the Agency-sponsored projects. This status report covers the period of April through June 2007 (see Attachment A). It includes project descriptions, a status update, anticipated milestones and next steps, and the development partner for over 100 projects. The next quarterly status report will cover the period of July through September 2007 and will be issued in late October. The Chief Operating Officer has been working with the Regional Administrators to develop a new format for the quarterly reports. The new format will include photos or renditions of projects, project descriptions, a status of the projects, anticipated milestones in the next quarter, total development costs, community benefits, and job generated. R-f REPORT TO AGENCY COMMISSIONERS ON QUARTERLY REPORT ON THE STATUS OF PRIORITY PROJECTS AUGUST 23, 2007 PURPOSE To report to the Agency Board of Commissioners on the status of Priority Projects approved for the FY2007 Work Program. REPORT In May 2006, a retreat was held with the Agency Board of Commissioners, Regional Administrators and project management staff. Topics discussed included the role of the Board, new Agency policy initiatives, Board priorities for the coming year, performance expectations and methods for measuring performance and the effective use of Agency staff and financial resources. One request of the Commissioners was to have an "Early View" process established so the Commissioners could be kept informed on the status of projects and programs on an ongoing basis. The current approach typically results in final recommendations being presented to the Board that are usually the end result extensive negotiations between staff and a developer or property owner over an extended period of time. By not being kept abreast of the status of major projects, the Board believed that it impeded a more careful and thorough consideration of the staff's recommendations. The Commissioners expressed a desire to be kept informed of the progress on major projects, including any obstacles or impediments that may have been encountered that could result in significant delays. In response to the Commissioners request, a report has been prepared that provides a description of the current status of the Priority Projects as identified in the Agency's Work Program and Budget This status report covers the period of April through June 2007 (see Attachment A). The Chief Operating Officer has been working with the Regional Administrators to develop a new format for the Quarterly Reports to the board. The new format will include photos or renditions of projects, project descriptions, a status of the projects, anticipated milestones in the next quarter, total development costs, community benefits, and job generated. Future quarterly reports will be provided at the second Agency Board meeting following the end of the each quarter. Cecilia V. Estolano Chief Executive Officer By /~i // /I ~I I / // ! // L1 ~~ t ilVl-#L- Gle~n F. Wasserman Chi~f Operating Officer ATTACHMENT A QUARTERLY REPORT ON THE STATUS OF PRIORITY PROJECTS April - June 2007 LOS ANGELES HARBOR REGION Palos Verdes Urban VilaCle . Mixed Use Project (851300) Project Description: A five story and one 18 story building to consist of 251 residential units with 1, 2, and 3 bedroom, ranging from 880 to 1,500 s.f., planned for a 1.5-acre site, currently occupied by the C-Worthy Industrial Paint Store. The building formerly operated as a Bank of America branch and its current usage was allowed by the CRA/LA and restricted to commercial uses until 2014. An Owner Participation Agreement (OPA) enabled the project to go forward with a mix of town homes and high-rise condos, plus 582 underground parking spaces. Under the OPA, the developer will set aside 15 units to be affordable to workforce families for 10 years and provide 20 public parking spaces on site, also available for 10 years. Developer: Palos Verdes Street Investments, LLC FY07 Milestones: Approvals of OPA and conceptual design; monitor Tentative Tract map approval process; approve public art, final design and landscape plans; monitor issuance of building permit; start construction. Address: 550 S. Palos Verdes Street Status: On December 7, 2006 the Agency approved entering into an OPA, for the Palos Verdes Urban Village, which was adopted by the Los Angeles City Council on February 8, 2007. On January 24, 2007, a Subdivision Hearing was held for the Project's Tentative Tract Map. The OPA was fully executed on March 30, 2007. Staff has recently learned that this property was sold in July 2007 to Omninet Capital, LLC, a Beverly Hills based private equity, real estate and venture capital firm. Staff has initiated contact with both buyer and seller to determine whether the sale is a "permitted transfer" and what changes, if any, may be proposed. La Salle Lofts Adaptive Re-Use (851615) Project Description: This building, formerly housing a 108-unit, single-room-occupancy hotel, will be re-constructed as 26 market rate condominiums ranging in size from 1,040 to 1,800 sq. ft. and will include 8,000 sq. ft. of ground-floor retail space and 52 parking spaces. Also included will be a public art component. Upon completion, the CRA/LA may exercise an option to provide soft-second mortgages to make up to six units affordable to qualified moderate-income home buyers. Developer: TEAM Companies. FY07 Milestones: Agency to monitor payment of prevailing wage during renovation; developer to begin marketing sales of the units. Agency to consider its Option to provide an affordable housing component; developer to complete construction; at Agency's option process up to six soft second mortgages to qualified low and moderate-income buyers. Address: 245, 253-267 West 7'h Street, San Pedro. Status: Asbestos remediation of the building's interior and demolition has been completed. The Building façade is the last standing structure on the site and is currently being rehabilitated as the façade for the new project. Developer has selected artist Siobodan Dimitrov for a tiled mural on the exterior wall of the parking structure, which is a separate building from the La Salle lofts residences. The artwork will feature photographic images of dockworkers, welders and pile drivers, etc. The composition is intended to be a tribute and recognition of labor in the development of the LA Harbor, one of the world's largest international ports. The artwork was reviewed and supported by the Pacific Corridor Advisory Committee in August 2007. Construction is underway and anticipated to be completed in May 2008. Centre 5treet Lofts Affordable Housinq Proqram (851700) Project Description: The Centre Street Lofts Project will provide 116 condominium units with 6 live/work spaces, (755 to 2,373 sq. ft., and will include 20,000 sq. ft. of ground-floor retail and 312 parking spaces, of which 40 will be available for public use. The CRA/LA will offer deferred "soft second" mortgages to make up to 17 units affordable to qualified moderate-income homebuyers. Developer: Centre Street Lofts, LLC. FY07 Milestones: Developer to begin marketing sales of the units and Agency to establish soft second loan program; developer to complete construction; Agency and LAHD to process and fund 23 soft second mortgages to qualified low and moderate income buyers. Address: 285 W. 6'h Street Status: In October 2006, the Agency and the City Council approved a Soft Second Loan Program to provide up to $198,000 to 17 eligible moderate-income families.