Development Agreement (15ENT-0266) 1430 Lincoln Blvd. Development Agreement (15ENT-0266) November 28, 2017

Property Exchange Background 1338-1342 5th St. (15,000sf) 1323 5th St. (7,500sf) 1337 7th St. (22,500sf) The City issued a RFP in 2012 seeking a property owner willing to exchange a 22,500 sf property for the City-owned properties at 1338-1342 5th St and 1323 5th St. Ultimately, the City entered into negotiations to exchange these properties for the property located at 1337 7th St. so the City can construct a new Fire Station #1. However, the site at 1337 7th St. is obligated with a private parking easement that must be released prior to the City’s acquisition of the site. The easement on the property is for the exclusive use of up to 105 spaces and no less than 83 spaces by the tenants of the Telephone bldg. located at 1314 7th St. N RFP for property exchange in 2012 Negotiations for site at 1337 7th St. Private parking easement

Property Exchange Background Move parking easement to 1430 Lincoln as part of exchange Limited-term CUPs for parking at 1318 and 1430 Lincoln Blvd. and 1338 5th St. were approved in April 2016 for 40 spaces, 86 spaces and 40 spaces respectively. These CUPs were approved to temporarily relocate obligated parking spaces from 1337 7th St. and provide the City clear title to the property. Once 1430 Lincoln Blvd. commences construction, easement parking will be provided at 1318 Lincoln, 1338 5th St. and 1323 5th St. Move parking easement to temporary parking lots when 1430 Lincoln commences construction

Property Exchange Background Once 1430 Lincoln is completed, all of the easement spaces will be permanently moved there. In addition, the 43 spaces subject to the easement at 1325 6th St. will be temporarily moved there once that project commences construction and will remain until completed.

N Property Location Lincoln Transition West District – DCP Subject ite Site is on west side of Lincoln between Santa Monica and Broadway in the LT Lincoln Transition West district of the DCP. The development site is 30,000 sq. ft. and currently contains a surface parking lot. Surrounding properties are zoned NV Neighborhood Village and LT Lincoln Transition West. N Lincoln Transition West District – DCP Current Use – Surface parking lot Site Size: 30,000 sq. ft. | Existing surface parking lot

Subject Site The photo above shows the buildings that previously existed on the site. The site will be used as a surface parking lot in conjunction with the parking easements mentioned in the DA staff reports and as authorized by CUP in April 2016.

Proposed Project Lincoln Blvd. Site Plan 7th Court Mixed-Use Development – 67,470 sf 100 Residential Units 5,878 sf Ground Floor Commercial 1,394 sf Front Plaza Parking (4-Level Subterranean Garage) 296 Parking Spaces Proposed 155-L/T & 22-S/T Bike Spaces 61 EV Charging Stations

Project Description Development Agreement is required due to excess parking spaces. Proposed FAR is 2.2. Unit Mix - 14 studio units (14%) - 50 one-bedroom units (50%) - 21 two-bedroom units (21%) - 15 three bedroom units (15%). Applicant is also requesting a 1 year extension of Conditional Use Permits 16ENT-0012 and 16ENT-0013. The proposed development would ordinarily be subject to an Administrative Approval under the DCP as it is under 75,000 sq. ft. However, the applicant has proposed a Development Agreement due to excess parking spaces proposed on-site that will serve to permanently replace parking spaces that are currently obligated by a private parking easement at 1337 7th Street, a site subject to a property exchange between the City and NMS Properties where the City is seeking to acquire 1337 7th Street for the purposes of developing a new Fire Station No. 1. DA may also modify development standards except height and FAR. Conditional Use Permits 16ENT-0012 and 16ENT-0013 were approved by the Planning Commission on April 6, 2016 that authorized temporary surface parking lots at 1318 and 1430 Lincoln Boulevard, respectively. At that time, it was anticipated that the DA hearings would occur in the Fall 2016 and that construction of 1430 Lincoln would commence by the end of 2018 and conclude in mid 2022. Therefore, the CUP for parking at that site was due to expire on December 31, 2018 and the CUP for parking at 1318 Lincoln was due to expire in July 2022 when the parking spaces there would permanently move to 1430 Lincoln. However, since the DA hearings are occurring now, the applicant is requesting a 1 year extension of the parking rights granted by the 2 CUPs to 2019 and 2023 respectively.

Design & Massing The proposed height of the building is 50 feet, which is consistent with Tier 2 limits established for the Lincoln Transition – West district of the DCP which allows up to 60 feet. The building façade is modulated at the ground level with the two building masses separated by a 58-foot wide pedestrian plaza. Upper level building frontage provides a significant amount of modulation with varying upper-level stepbacks and architectural features. An outdoor terrace measuring approximately 58-feet wide is located on the 5th floor at the building frontage to provide additional relief from building mass at the upper levels.

Pedestrian Orientation Lincoln Blvd. The entire ground floor frontage is setback a minimum of 20’ from the curb and would serve as pedestrian circulation area, and provide for short-term bike parking, landscaping, gathering spaces, and outdoor seating. The commercial space may be divided into 4 separate tenant spaces. The ground floor design incorporates extensive glazing measuring approximately 14.5 feet in height, four commercial entrances, and potential for seating areas in the front plaza and on the public sidewalk. 7th Court

Roof Plan 3,201 SF mechanical area for HVAC Roof 2,002 SF for PV panels Roof The roof contains a roof deck with spa, solar panel and mechanical equipment.

Off-Street Parking DCP allows maximum of 95 spaces 296 proposed spaces (201 spaces above DCP maximum) 155 excess spaces obligated to parking easements 20 spaces for first come, first serve 15 for City use (expandable to 30 when 1325 6th St project completes construction) At completion, 141 spaces available for project (50 spaces move back to 1325 6th St) Parking Type DCP Project Automobile Off-Street Parking   95 total maximum 111 residential 20 commercial 10 guest 155 surplus 296 total Bicycle Parking (long-term) 151 residential 4 commercial 155 total Bicycle Parking (short-term) 15 residential 19 total 16 residential 6 commercial 22 total In a correction from the staff report, the maximum number of parking spaces permitted by the DCP is 95, leaving a surplus of 201 parking spaces above the maximum. 296 parking spaces total are proposed with 155 spaces utilized for the parking easements. Of the 141 proposed non-easement spaces, 20 spaces are required to be available as non-exclusive, shared parking on a first-come, first-served basis and an additional 15 spaces are reserved as public parking for the City’s use (expandable to 30 spaces upon issuance of a Certificate of Occupancy for the 1325 6th Street development). This leaves 91 spaces that may be utilized for on-site project parking or for off-site users. Bicycle parking is consistent with DCP standards.

Planning Commission Action Larger elevators should be included at the ground floor so that bicycles can be more easily accommodated Add a historic preservation contribution of $75,000 to the DA Increase the Parks and Recreation and Transportation Impact Fees by a combined total of $350,000 ($175,000 each) Move the lockers and showers for commuters located at the ground floor to the P1 parking level in order to increase the amount of ground floor bicycle parking within the vacated space For Council consideration The applicant has agreed to increase the elevator size to better accommodate bicycles, move the lockers and showers from the ground floor to the P1 parking level, and provide a $75,000 contribution toward historic preservation. In addition, the applicant has agreed to modify the term of the 711 Colorado Avenue deed restriction to 75 years or the life of the project, which is consistent with the 1325 6th Street DA. The applicant is not agreeable to increasing the Parks and Recreation and Transportation Impact fees and points out that the development agreement is only being requested because of the excess parking spaces required to permanently move parking spaces that are currently obligated by a private parking easement at the Fire Station No. 1 (1337 7th St). The project is below the maximums permitted by the DCP in both height and floor area and therefore, the applicant believes that the 14% fee increase applicable to Tier 2 projects in the zoning ordinance is appropriate and that increased fees are not warranted. Given the feasibility analyses completed for the Downtown Community Plan and the Commission’s deliberations on the project, staff agrees with the Planning Commission’s recommendation for a $350,000 increase in fees and recommends that the amount be evenly divided between the Transportation Impact Fee and Parks and Recreation Fee. Since this is a point where staff and the applicant do not agree, the draft development agreement does not reflect staff’s recommendation pending Council’s consideration of this issue.

Community Benefits At least 30 affordable units provided at 711 Colorado Avenue (30%) 10 units at 30% AMI (extremely low) Seven 1-BR Three 2-BR 20 units at 100% AMI (Moderate) Ten studios Ten 1-BR Exceeds the 25 affordable units required by the DCP 10 affordable units @ 30%AMI 15 affordable units @ 100% The DCP requires this project to provide a minimum of 25% of the number of market rate units for affordable housing at an off-site location. The project proposes 30% of the number of its market rate units as affordable units at 711 Colorado.

Community Benefits 711 Colorado Avenue Minimum of 45 affordable units Fund enhancement to WISE existing care management program Opportunity to age in place Ensure long-term sustainability of services Connect Senior residents to services Efficient way to incorporate into existing Human Services Grant Program Minimum 12 hours/month of on-site services Provision of 2-bedroom elder abuse unit Other requirements Wifi access TDM program

Community Benefits Enhanced fees based on 14% increase above adopted fees (Zoning Ordinance) Enhanced Transportation Impact Fee: $151,000. Enhanced Parks and Recreation Fee: $736,000 Early Childhood Initiatives Contribution: $62,000 Cultural Arts Contribution: $180,000 Historic Preservation Contribution: $75,000 Public Parking Shared Vehicle Parking: 20 spaces available as non-exclusive, shared parking at all times on a first come, first serve basis. City Public Parking Spaces: 15 spaces initially expanding to 30 spaces upon C of O for 1325 6th Street Local Hiring Enhanced impact fees for Parks and Recreation and Transportation Impacts represent a 14% increase above the adopted fees for the incremental development above Tier 1, consistent with community benefits required as part of Chapter 9.23 of the Zoning Ordinance and as previously directed in the project’s Planning Commission float-up. No Affordable Housing Commercial Linkage Fee is required due to a credit for previous existing commercial square footage.

CEQA Project exempt from California Environmental Quality Act (CEQA) Qualifies as Transit Priority Project (TPP) per Section 21155.1 of the CEQA Guidelines As noted here, the proposed project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 21155.1 of the CEQA Guidelines, which exempts a special class of Transit Priority Project (TPP). Attachment D of the staff report contains the CEQA exemption determination.

Public Correspondence Public notices mailed to property owners and tenants within a 1,000’ radius

Comments / Questions

Affordable Housing Off-Site Affordable Housing at 711 Colorado Avenue 1430 Lincoln Blvd. Seven 1-BR @ 30% (extremely low income) Three 2-BR @ 30% (extremely low income) Ten studio units @ 100% (Moderate) Ten 1-BR @ 100% (Moderate) 1325 6th Street Four 1-BR @ 30% (extremely low income) Four studio units @ 100% (Moderate) Four 1-BR units @100% (Moderate) As noted in the staff report, the projects at 1325 6th Street and 1430 Lincoln Blvd. will be fulfilling their affordable housing obligations at an affordable senior housing project located at 711 Colorado Avenue. As shown on the slide the 1430 Lincoln project will provide a total of 30 affordable units with seven 1-bedroom and three 2-bedroom units to extremely low income households and ten studio units and ten 1-bedroom units to moderate income households.