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Board Memo Template 2 CRA/LA, A DESIGNATED LOCAL AUTHORITY (Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, CA) M E M O R A N D U M DATE: APRIL 6, 2018 TO: GOVERNING BOARD FROM: STEVE VALENZUELA, CHIEF EXECUTIVE OFFICER STAFF: BARRON MCCOY, CHIEF OPERATING OFFICER SUBJECT: LAND USE APPROVAL, 601-641 S. MAIN STREET & 108, 114 W. 6th STREET – NON-MONETARY ACTION. Consideration of Mitigated Negative Declaration ENV-2014-2907-MND; and, approval of an 186,435 square foot Transfer of Floor Area to allow the construction of a 38-story mixed-use development, located in the City Center Redevelopment Project Area. RECOMMENDATIONS That the Governing Board take the following actions: 1. Adopt a Resolution (Attachment C) certifying that the Governing Board has reviewed and considered the environmental effects of the proposed project as shown in the City of Los Angeles’ Mitigated Negative Declaration ENV-2014-2907-MND (“MND”) for 601-641 S. Main Street and 108, 114 W. 6th Street and adopting a Mitigation Monitoring and Reporting Program, making certain findings regarding the environmental impacts of the project pursuant to California Environmental Quality Act (“CEQA”) Guidelines set forth in California Code of Regulations Section 15096(f); and 2. Approve the Transfer of Floor Area Ratio (TFAR) of not more than 186,435 square feet from City-owned convention center air rights, pursuant to Sections 512.5 and 520 of the City Center Redevelopment Plan (Redevelopment Plan), by making the necessary determinations which will permit the development of a 38-story, mixed-use development. SUMMARY Barry Shy Six and Main, LLC, the Developer and property owner (Applicant), is requesting that CRA/LA approve a TFAR of not more than 186,435 square feet to allow for the development of a 38-story project located at 601-641 S. Main Street and 108, 114 W. 6th Street (Attachment B, Site Plan), pursuant to the Redevelopment Plan. The proposed development is a mixed-used development comprising 452 market-rate condominium residential units, 15 commercial condominium units, and 21,514 square feet of ground level commercial/retail space (the “Project”). The CRA/LA is authorized under Section 512.5 of the Redevelopment Plan and Section 14.5.6.B of the Los Angeles Municipal Code to take the recommended actions. Pursuant to Section 14.5.6.B of the City of Los Angeles Municipal Code (“Municipal Code”), the Applicant is requesting approval of a Transfer Plan for 186,435 square feet of City-owned excess air rights at the Los Angeles Convention Center (Block 106). As a condition of the approval, the Project will make a Public Benefit Payment $4,291,570, of which $2,145,785 will be paid into the City Public 601-641 S. Main Street PAGE 2 Benefit Trust Fund and $2,145,785 will be apportioned among five entities to provide services or to make public improvements to the neighborhood in which the project is located. Pursuant to Municipal Code Section 14.5.6, the CRA/LA Governing Board shall review a report issued by the Administrator (Chief Executive Officer) to approve, approve with conditions or deny a request from an applicant for TFAR over 50,000 square feet based on specific findings. This memorandum constitutes that report. Only after the CRA/LA Governing Board approves the request can the City Planning Commission consider the request and take action to approve, approve with conditions or deny the TFAR. After City Planning Commission takes action, the request is forwarded to the City Council for approval and then to the Mayor. The City of Los Angeles, acting through the Department of City Planning, adopted the Mitigated Negative Declaration (ENV-2014-2907-MND). The MND was circulated on September 22, 2016, with the comment period ending on October 12, 2016. The MND was considered by the City’s Planning Commission on February 14, 2017 and the appeal period ended on February 27, 2017. No appeals were filed. The Planning Commission readopted the MND at its February 8, 2018 meeting. The City Planning Commission will hear the case again upon being notified of the CRA/LA Governing Board actions. It will then be considered by the City Council and Mayor. This Project satisfies the criteria stated in Sections 512.4 and 512.5 of the Redevelopment Plan and the requested TFAR will allow the proposed Project to move forward expeditiously. DISCUSSION & BACKGROUND Location The Project Site consists of one parcel totaling 60,819 square feet (1.4 acres). The Project Site is bounded by Main Street the east, 7th street to the south, and Spring Street to the north. The Project Site consists of a surface parking lot. The Project Site is situated in the Historic Core of Downtown. This area contains a concentration of some of the most architecturally and historically significant structures found in the greater Los Angeles area. The area also boasts two National Register Historic Districts. The Project Site has no buildings of architectural or historic significance. The Applicant has worked with the Department of City Planning to ensure that the project design is sensitive to the surrounding area. Developer Entity Barry Shy Six and Main, LLC is a development ownership entity with over 40 years of development experience. The Developer has developed more than 2,500 units of apartments and condominiums. Of those, nine projects totaling 1,400 units are adaptive reuse projects located in downtown Los Angeles. Description, Project Context and Project History The Developer proposes to construct a 38-story, 551,349 square-foot mixed-use tower fronting Main and 6th Streets. The Project consists of 452 market rate condominium residential units, and 15 commercial condominium, 61,220 square feet of open space and 21,514 square feet of ground floor commercial/retail space. The Project will include 521 residential parking spaces, 37 guest parking spaces, 21 commercial parking and 314 non-code required “flex” parking spaces for a total of 893 parking spaces. In addition, the Project will provide short- and long-term bicycle parking spaces located on multiple floors of the parking structure. 601-641 S. Main Street PAGE 3 The residential component of the Project will have 11 studios; 110 one-bedroom units; 320 two- bedroom units; and 11 three-bedroom units. The Project architect, David Takacs Architecture, is based in Los Angeles and has designed a number of quality built projects throughout the greater Los Angeles. The CRA/LA has successfully worked with this firm on multiple projects. Pedestrian access to the lobby and residential units will be located along Main Street. Access to the commercial/retail space will be along Main and 6th Streets. Vehicular traffic for the residential and retail/commercial space will be located on Harlem Place, which will have two (2) driveways. Residential and commercial parking will be separated from one another. Ground floor retail space, residential elevator lobby and lounge area will be available to residents and their visitors on the ground floor level. The Project will have 61,220 square feet of open space consisting of courtyards, common areas, rooftop patio and private balconies. Open space amenities include an outdoor swimming pool, seating areas, lounges, fire pits, barbeque cooking areas and community rooms. The common areas will be landscaped and maintained to take advantage of the temperate climate. The parcels for the site encompass a net site area of 60,819 square feet and are zoned C2-4D. The “D” limitations restrict the FAR to 6:1, unless a TFAR is granted. If the requested TFAR is granted, the Project’s FAR will be 9.1:1. The maximum FAR allowed is 13:1. Findings to Allow Higher Maximum Floor Area Pursuant to Section 512.4 of the Redevelopment Plan, CRA/LA may permit projects to exceed maximum floor area ratios set forth in Section 512.1 as long as the transfers are consistent with the five criteria below. 1. Higher Density Development is appropriate in terms of location, access, and compatibility with other existing development and consistent with purposes and objectives of the Redevelopment Plan. The proposed Project promotes community revitalization in the area by replacing a surface parking lot. The proposed Project meets many of objectives of the Redevelopment Plan (Section 105) including: eliminating and preventing the spread of blight and deterioration (Project Objective 1); furthering the development of Downtown as the major center of the Los Angeles metropolitan region (Objective 2); promoting the development and rehabilitation of economic enterprises including retail and other commercial uses (Objective 4); creating a modern, efficient and balanced urban environment for people, including a full range of around-the-clock activities and uses (Objective 6); achieving excellence in design (Objective 9); and providing high-density housing close to employment and transportation centers (Objective 13). The subject project is compatible with surrounding development, including the adjacent National Register of Historic Places-listed Spring Street Financial District and other separately listed historic properties. Compatibility is in large part due to the physical separation and setback of the proposed building. The mass of the building is broken into two parts, the podium and tower. Focused at the center of the property, the mass steps up and back from the primary elevations. This works to avoid the feeling of overhanging the street, and also allows sightlines through the property. There is also a strong visual relationship to the 20-story SB Tower building to the west, with the subject project stepping up from the height of that building and incorporating vertical design elements that reference that of SB Tower. The subject project also provides continuity with the surrounding buildings by continuing the street wall in a currently undeveloped parcel.
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