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: DECEMBER 12, 2016 TO: GOVERNING BOARD 4 FROM: STEVE VALENZUELA, CHIEF EXECUTIVE OFFICER STAFF: BARRON MCCOY, CHIEF OPERATING OFFICER CRAIG BULLOCK, SPECIAL OPERATIONS OFFICER SUBJECT: Land Use Approval – Non-Monetary Action. Consideration of Mitigated Negative Declaration ENV-2014-2948-MND; and, approval of a 65,982 square foot Transfer of Floor Area to allow the construction of a 15-story mixed-use development at 951 S. Broadway & 215 W. Olympic Blvd. 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-2014-2948-MND (“MND”), 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 65,982 square feet from City-owned convention center air rights (Attachment D), 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 15-story, mixed-use development. SUMMARY The recommended actions will facilitate the development of a mixed-used development comprising 163 market rate residential units, including eight (8) live-work condominium units, four (4) units with Mobility Features and two (2) units with Hearing/Vision features and 4,600 square feet of ground level retail space. Agoura Oaks, LLC, the Developer and property owner (Applicant) is requesting that CRA/LA approve 65,982 square feet of TFAR to allow for the development of a 15-story project located at 951-959 S. Broadway and 215 W. Olympic Boulevard (Attachment B, Site Plan) pursuant to the City Center Redevelopment Plan (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 65,982 square feet from City-owned excess air rights 951 - 955 S. BROADWAY PAGE 2 at the Los Angeles Convention Center (Block 106). As a condition of the approval, the Project will make a Public Benefit Payment to the City in the amount of $1,275,169. Following receipt of an application for TFAR and pursuant to Section 14.5.6 of the Municipal Code, the Chief Executive Officer is to issue a report to the CRA/LA Governing Board with recommendations 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. After City Planning Commission takes action, the request is forwarded to the City Council for approval and then to the Mayor. As a condition for approving the TFAR application, the Successor Agency requested and the Developer agreed to incorporate enhanced accessibility features within the project. Specifically, the Developer has agreed to include units having Mobility and Vision/Hearing Features. The number of accessible units was determined based on the amount of the additional density being transferred to the site. The recommended TFAR will result in 65 additional units; four (4) units or 5% will have Mobility Features and, two (2) units or 2% will include Vision/Hearing Features. The accessibility requirements will be imposed through a recorded Accessible Housing Covenant (Attachment E). The City of Los Angeles, acting through the Department of City Planning, issued a Deputy Advisory Agency Letter of Determination (CPC-2014-2497-TDR-ZC-ZV-CDO-SPR) on October 13, 2016 to adopt the Mitigated Negative Declaration (ENV-2014-2948-MND) and approve various discretionary actions to allow the construction of the Project. The deadline for appeals ended on October 24, 2016. No appeals were submitted. The City Planning Commission will hear the case again on January 12, 2017 prior to being considered by the City Council and Mayor. This Project satisfies the criteria 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 three (3) parcels totaling 20,664 square feet (0.47 acres) of land area. The Project Site consists of a surface parking lot, and is bounded by Broadway to the east, Olympic Boulevard to the south, Blackstone Court (alley) to the west and an existing 11-story hotel (Western Costume Building) to the north. 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 includes two National Register Historic Districts. The Applicant has worked with the Department of City Planning to ensure that the project design is sensitive to the surrounding area. Developer Entity Agoura Oaks, LLC is a development partnership that, taken together, brings 60 years of development and construction experience to the project. The Development team has developed more than 2,500 units of apartments and condominiums. Nine (9) projects totaling 1,400 units are adaptive reuse projects located in downtown Los Angeles. In addition, one of partners operates a construction company that oversees development of multi-family residential projects. 951 - 955 S. BROADWAY PAGE 3 Description, Project Context and Project History The Developer proposes to construct a 15-story, 184,705 square-foot mixed-use tower fronting Broadway and Olympic Boulevard. The project consists of 163 market rate residential units, including eight (8) live-work condominium units, four (4) units with Mobility Features and two (2) units with Vision/Hearing Features, 19,370 square feet of open space and 4,600 square feet of ground floor commercial/retail space. A total of 219 parking spaces will be provided in four (4) subterranean levels. There will be 186 short and long term bicycle parking spaces located on multiple floors. The Project, designed by David Takacs Architecture, will have 119 one-bedroom units, and 44 two-bedroom units. David Takacs Architecture, based in Los Angeles, has designed many quality projects throughout the greater Los Angeles area ranging from single family homes to large scale mixed use projects. Pedestrian access will be provided from Broadway and Olympic Boulevard and vehicular access for the residential and retail/commercial space will be located along Olympic Boulevard. Tenant and commercial parking will be separated from one another. Ground floor retail space, a residential elevator lobby and a lounge area will be available to residents and their visitors on the ground floor level. Also proposed for the ground floor is vehicle and bicycle parking as well as a waste and recycle center for the building. The Project will have 19,370 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 three parcels constituting the site encompass 20,664 square feet and are zoned [Q]C2-4D- CDO-SN. The Site’s “Q” limitation restricts the building’s height to a maximum of 150 feet. The “D” limitations restrict the FAR to 6:1, unless a TFAR is granted. The “CDO” indicates the requirements of the Broadway Theatre and Entertainment Commercial Design Overlay District (CDO). The “SN” refers to the Broadway Historic Supplemental Signage Use District. If the requested TFAR is granted, the Project’s FAR will be 9.2:1. 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 that exceed maximum FAR set forth in Section 512.1 as long as the transfer is 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 redeveloping a surface parking lot. The proposed Project meets a number of Plan objectives 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). 951 - 955 S. BROADWAY PAGE 4 2. Floor Area may only be transferred from parcels which are within the Historic Downtown, City Center or South Park Development Area of the Project Area. The donor site is the Los Angeles Convention Center, which is located in the South Park Development Area of the City Center Redevelopment Project Area. 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.