2 CRA/LA, A DESIGNATED LOCAL AUTHORITY (Successor Agency to the Community Redevelopment Agency of the City of , 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 .

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. It 601-641 S. Main Street PAGE 4

improves the appearance of activating the street with pedestrian-oriented retail storefronts at ground level.

2. Floor Area may only be transferred from parcels or portions thereof and parcels or portions thereof which are within, respectively, The Historic Downtown, City Center or South Park Development Area of the Project Area.

The proposed TFAR is from parcels in the City Center Redevelopment Project Area (i.e. LA Convention Center).

3. The Floor Area on any parcel shall not exceed the Floor Area Ratio set forth in the applicable City Zoning Ordinance in effect at the time the transfer is made.

The underlying zoning of the Site is C2-4D with a height district classification that allows a Floor Area Ratio of 6:1 for this site. The proposed TFAR would allow the development to be built to 9.1:1, thus not exceeding the 13:1 maximum Floor Area Ratio established by the City Zoning Ordinance.

4. Transfers of floor area to parcels with reasonable proximity or direct access to public or private rapid transit stations shall be particularly encouraged.

The Project is within a reasonable walking and bicycle distance, 0.4 miles, of the Metro Pershing Square Station which serves the Red and Purple Lines. The Red and Purple Lines provide access to Hollywood and the San Fernando Valley and Wilshire Center/Koreatown, respectively. The Red Line further connects to the Orange Line in North Hollywood, providing access to the Mid, West and Northwest San Fernando Valley. In addition, the Metro Red and Purple Lines provide access to Union Station with connections to , Amtrak, Metro Gold Line (Pasadena & East Los Angeles) and bus and regional services, including DASH Lines D & E.

In addition, the Red and Purple Line connect to the Metro Blue and Expo Line at the 7th & Metro Station. The Blue Line provides access to Long Beach and the Green Line, which provides access to communities in the Southbay. The Expo Line provides access to Santa Monica.

The site is also within close proximity to numerous freeways, including Interstates 5, 10 & 110 and the Hollywood Freeway (101).

5. Transfers of the floor area from parcels on which buildings of historic, architectural or cultural merit are located shall be particularly encouraged where the transfer can reasonably be expected to further the goal of preservation of such buildings.

The TFAR donor site is from City-owned excess air rights from the Los Angeles Convention Center, which prevents this objective from being satisfied. CRA/LA staff is advised that the need for such a large transfer of floor area required for this project made it extremely difficult, if not impossible, to find numerous historic donor sites to satisfy this objective. The Community Benefits Package, however, includes funding towards the proposed Streetcar, offsite public improvements, additional funding for services provided by the business improvement district. These benefits are important amenities to Downtown and the Historic Core where many of the City’s historic buildings are located. 601-641 S. Main Street PAGE 5

Community Benefits The City of Los Angeles Municipal Code (Municipal Code) Section 14.5.7(B)(2)(b)(1) requires that TFAR of more than 50,000 square feet to provide a Public Benefit Payment in conformance with Section 14.5.9 of the Municipal Code. Additionally, since the Floor Area Donor Site is the City-owned portion of the Los Angeles Convention Center, a TFAR Transfer Payment is also required by Section 14.5.10.

A Public Benefit must serve the public purpose, such as providing for affordable housing; public open space; historic preservation; recreational, cultural, community and public facilities; job training and outreach program; affordable child care; streetscape improvements; public art programs; homeless service programs; and public transportation improvements in the area.

The proposed Project’s requested TFAR of 186,435 square feet results in a public benefit equivalency of approximately $4,291,570, of which 50% would be paid to the City. The remaining 50% would be used for public benefits purposes in the area. The Developer has requested the ability to designate the beneficiaries for 50% of the Public Benefit Trust Fund payment, which is allowed under Section 14.5.9.B of the Municipal Code, with the approval of the City Council. Remaining funds will be deposited into the City’s Public Benefit Payment Trust Fund. The proposed beneficiaries of these funds are as follows:

1. Deep Green ($882,696) To fund development of permanent supportive housing for homeless persons, who are specifically and locally sourced from Downtown Los Angeles’ Skid Row neighborhood. Proposed funding allocation would be exclusively directed to the physical “bricks-and- mortar” development. Funding for support services would be derived from other funding sources.

2. ($603,413) Funds will go towards the streetcar planning, design and engineering, which is proposed to run along Broadway between 1st and 11th Streets, Connecting passengers to Metro stations, employment centers and sports and entertainment venues.

3. Los Angeles Public Works ($442,393): Funding for Off-site public improvements to the nearby Broadway streetscape improvements and road improvements.

4. Los Angeles Neighborhood Initiative ($141,178) Funds will go towards the LANI-administered Broadway Historic Façade Lighting Grant Program. This program allocates funds to buildings along Broadway for the purpose of providing nighttime lighting to enhance public safety as well as to highlight the architectural features of the building.

5. Chyrsalis ($76,104) Funds for sidewalk power washing and cleaning along Broadway in the Historic Core District.

The public benefits created by the proposed Project will advance major objectives of the Redevelopment Plan to eliminate and prevent the spread of blight, and to rehabilitate and redevelop the Project Area. Additionally, the Developer will make a Transfer Payment to the City

601-641 S. Main Street PAGE 7

ATTACHMENTS

Attachment A – Site Map Attachment B – Project Rendering Attachment C – Environmental Resolution

ATTACHMENT A

601 S. MAIN STREET

ATTACHMENT B - PROECT RENDERING

\ .ii -:.~ -~•.... CRA/LA, A DESIGNATED LOCAL AUTHORITY (Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, CA)

ATTACHMENT C

RESOLUTION NO. ______

A RESOLUTION OF THE CRA/LA, A DESIGNATED LOCAL AUTHORITY (SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA), CERTIFYING THAT IT HAS REVEWED AND CONSIDERED THE CITY OF LOS ANGELES’ MITIGATED NEGATIVE DECLARATION FOR THE 601 S. MAIN STREET PROJECT IN THE CITY CENTER REDEVELOPMENT PROJECT AREA

WHEREAS, Barry Shy Six and Main, LLC (Developer), the project applicant, proposes to develop a 38-story mixed-use development consisting of up to 452 residential condominium units and 15 commercial condominium units totaling 551,349 square feet at 601, 603, 611,619, 619 1/2 , 631, 637, 639, 641 S. Main Street and 108, 114 W. 6th Street ( the “Project”); and

WHEREAS, the City of Los Angeles (“City”) was the lead agency under the California Environmental Quality Act (“CEQA”) for the Project and prepared a Mitigated Negative Declaration, ENV- 2014-2907-MND; (“MND”), for the Project; and

WHEREAS, on February 8, 2018, the MND for the Project was adopted and the Project was approved by the City of Los Angeles; and

NOW, THEREFORE, BE IT RESOLVED by the CRA/LA a Designated Local Authority (Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, California), as follows:

1. The CRA/LA is a Responsible Agency pursuant to CEQA (Public Resources Code Section 21069, State CEQA Guidelines Section 15381). As a Responsible Agency, the CRA/LA Governing Board considered the environmental effects of the Project as shown in the City of Los Angeles’ MND (State CEQA Guidelines Section 15096).

2. The CRA/LA has mitigated the impacts of those parts of the project which it is approving by adopting the Mitigation Monitoring Program prepared and adopted by the City.

3. Based on such review and consideration, the CRA/LA Governing Board hereby determines:

a. No Substantial changes are proposed in the Project that will require major revisions to the MND.

b. No Substantial changes have occurred with respect to the circumstances under which the Project is being undertaken that will require major revisions to the MND; and

c. No new information of substantial importance to the Project, which was not known or could not have been known at the time the MND was prepared, has become available.

ADOPTED: ______