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CC - Approval of an Eleventh Implementation Agreement to the Disposition and Development Agreement (DDA) with Axis-Mundi RE II, LLC for the Mixed-Use Development Project at 12803-12823 Washington Boulevard, to (1) Modify the Scope of Development to Allow a Mixed-Use Residential Project in Place of the Mixed-Use Office Project; (2) Allow the Application of the Density Bonus Provisions in both the City’s Mixed-Use Ordinance and the State Density Bonus Law (SB1818) for the Construction of a Total of 37 Residential Units, Including Three Very Low Income Affordable Housing Units; and (3) Allow Subsurface Encroachments Beneath the Sidewalks on Washington Boulevard, and Moore and Meier Streets.
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Contact Person/Dept: Glenn Heald
Todd Tipton
Phone Number: (310) 253-5752
(310) 253-5783
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council; (E-Mail) Affordable Housing; (E-Mail) Community Development and Development Projects; (E-Mail) Neighborhoods - West Washington Boulevard; (E-Mail) Attendees at the November 4, 2015 Community Benefit meeting
Department Approval: Sol Blumenfeld, Director of Community Development
(04/05/16)
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RECOMMENDATION
Staff recommends the City Council approve an Eleventh Implementation Agreement to the Disposition and Development Agreement with Axis-Mundi RE II, LLC for the mixed-use development project at 12803-12823 Washington Boulevard, to (1) modify the scope of development to allow a mixed-use residential project in place of the mixed-use retail/office project; (2) allow the application of the density bonus provisions in both the City’s Mixed-Use Ordinance and the State Density Bonus Law (SB 1818) for the construction of a total of 37 residential units, including three very-low income affordable housing units; and (3) allow subsurface encroachments beneath the public right-of-way (sidewalks) on Washington Boulevard and Moore and Meier Streets.
BACKGROUND
On February 7, 2008, the former Culver City Redevelopment Agency (former CCRA) entered into a Disposition and Development Agreement (DDA) with Axis Mundi RE II, LLC (the Developer) for (1) the sale of the former CCRA’s property located at 12803-1283 Washington Boulevard (the Property); and (2) the development and construction of a high quality mixed use retail/office project (the Project) on the Property. Project commencement has been delayed due to the economic downturn and the State’s dissolution of redevelopment agencies. As a result, the DDA has been extended ten times by mutual agreement.
On November 4, 2015, a community meeting was held to discuss the Project’s proposed Community Benefit - 21 public parking spaces. Those in attendance inquired about the Project’s density, traffic impacts, amount of parking provided, building height/setbacks and pedestrian/bicycle circulation in the area. Upon conclusion of the meeting those in attendance supported public parking as the Project’s Community Benefit. The provision of such Community Benefits qualifies the Developer to receive increased density under the community benefits provisions of the City’s mixed use development standards as set forth in Zoning Code Section 17.400.065.E.3 (Community Benefits).
The Project is included in the Long Range Property Management Plan (LRPMP) adopted by the Successor Agency to the Culver City Redevelopment Agency (Successor Agency). The LRPMP was approved by the State Department of Finance (DOF) on March 18, 2014, providing for the sale and subsequent conveyance of the Property to the Developer, subject to approval of the sale by the Oversight Board (OB) and the DOF. The OB and DOF subsequently approved the property sale for $3.2 million, which equals or exceeds the market value of the Property. The Property was conveyed to the Developer per the LRPMP on November 5, 2015.
DISCUSSION
The DDA requires the Developer to construct a high quality mixed use retail/office project and contemplates and permits changes, including changes to land use. The Developer desires to change the land use in order to construct a mixed used development with affordable housing units, combining the density bonus permissible under (1) California Government Code Sections 65915 through 65918 (SB 1818), and implemented by Chapter 17.580 of the Zoning Code, and (2) the community benefits provisions of the City’s mixed use development standards as set forth in Zoning Code Section 17.400.065.E.3 (Community Benefits). Combining these two density incentives is not currently permitted as a matter of policy. The City Council may provide a change in such policy at any time it deems appropriate.
The Developer asserts there is urgency in addressing the density issue through application of both the SB 1818 and Community Benefits density bonus provisions due to time constraints related to the project financing. Without combining both density incentives, the Developer and the City’s Financial Consultant, Keyser Marston Associates, believe the affordable units cannot be provided. Staff is recommending the City Council approve an Eleventh Implementation Agreement to the DDA that includes among other provisions, the ability to combine SB 1818 and Community Benefits. The Developer’s proposal increases the number of residential units in the Project from 27 to 37, including three very-low income affordable units; and increases the density from 50 du/ac to 67 du/ac. The City’s base density is 35 du/ac.
Pursuant to Zoning Code Section 17.400.065, when there is a DDA (or Owner Participation Agreement, Development Agreement or similar agreement) with the City or former CCRA and provisions in the DDA differ from the Mixed Use Development Standards, the provisions of the DDA shall prevail. The developer is requesting, through an Eleventh Implementation Agreement, a density bonus combining the density incentives permissible under SB1818 and Community Benefits, as described above, and relief from a front setback requirement in order to allow balconies and enclosed living areas within the setback.
In addition the Developer is requesting that the Project’s subterranean parking garage be allowed to encroach beneath the public right-of-way (sidewalks) on Washington Boulevard and Moore and Meier Streets. The encroachments into the right-of-way were contemplated in the DDA, but the Developer has subsequently refined the Project design to reduce the amount of encroachment originally allowed. The DDA allowed a cumulative total encroachment of approximately 3,767 square feet, which has been reduced to approximately 3,632 square feet. If approved by the City Council, the encroachments will be memorialized in the Eleventh Implementation Agreement.
Approval of the Eleventh Implementation Agreement does not constitute approval of the Project. The Planning Commission will consider the proposed Project development entitlements pursuant to Chapter 17.540 of the Zoning Code (Site Plan Review Ordinance) and Section17.400.065 of the Zoning Code (Mixed Use Ordinance), with a recommendation to the City Council concerning the density bonus permissible under the Community Benefits and the density bonus and related concessions authorized pursuant to SB 1818, including relief from rear setback and building height requirements (to permit one additional story to a maximum height of 56’).
If the density bonuses are granted, this will enable the Developer to provide three very-low income units, or 11 percent of the total residential units, as affordable units, which automatically entitles them to receive two concessions pursuant to SB 1818. The concessions are:
• Rear setback - Allow balconies and enclosed living areas to encroach in the required 60 degree angle that is measured from the center line of the alley as required by the Mixed Use Ordinance.
• Building height - Allow the maximum building height to be increased from 43’ to 56’.
For these reasons, staff recommends the City Council approve an Eleventh Implementation Agreement to the DDA.
FISCAL ANALYSIS
The City has conveyed the subject property to the Developer pursuant to the DDA and LRPMP. All proceeds derived from the conveyance of the property to the Developer were received by the State and distributed to the taxing entities pursuant to the LRPMP. The proposed subterranean encroachment was approved in the DDA and the current Project plan reduces the area of encroachment by 135 sq. ft.
RECOMMENDED MOTION(S)
That the City Council:
1. Approve an Eleventh Implementation Agreement to the Disposition and Development Agreement with Axis-Mundi RE II, LLC for the mixed-use development project at 12803-12823 Washington Boulevard, to (1) modify the scope of development to allow a mixed-use residential project in place of the mixed-use retail/office project; (2) allow the application of the density bonus provisions in both the City’s Mixed-Use Ordinance and the State Density Bonus Law (SB1818) for the construction of a total of 37 residential units, including three very-low income affordable housing Units; and (3) allow subsurface encroachments beneath the public right-of-way (sidewalks) on Washington Boulevard, and Moore and Meier Streets; and,
2. Authorize the City Attorney and City Special Counsel to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.