TH STREET (FORMER PAPERMATE SITE) DEVELOPMENT AGREEMENT. Planning Commission September 11, 2013

Transcription

1 TH STREET (FORMER PAPERMATE SITE) DEVELOPMENT AGREEMENT Planning Commission September 11, 2013

2 PROJECT LOCATION 310,504 sf (7.1 acre) site 2

3 PROJECT LOCATION Future Bergamot LRT Station Subject Property Comparable to 3.5 Downtown Blocks 3

4 PROJECT SITE CONTEXT Penn Station SMC Academy of Entertainment & Technology Red Bull Offices Office Buildings Water Gardens 4

5 PROJECT DESCRIPTION 471 residential units (363,280 sf) and 27 artist work/live units 75 units of affordable and workforce housing 29,934 sf of neighborhood retail 375,000 sf of of creative office 1,936 parking spaces in 3-level subterranean garage 379 more spaces than required by draft Bergamot Area Plan at Plan adoption 2.47 FAR Maximum actual height of 84 5

6 FLOAT-UP PROJECT CONCEPT USES + SITE PLAN Use Square Feet Creative Office 495,000 Retail 47,000 Residential 325 units Creative Office/ Retail Creative Office/ Retail Residential Creative Office Residential/ Retail 6

7 DESIGN BACKGROUND: FLOAT-UP DISCUSSIONS Direction from City Council to deal move forward with additional design work necessary in following areas: Mix of Uses Pedestrian-oriented major open space Building scale and block size Building modulation Mitigate campus feel of development by approximating massing and bulk character seen throughout the city in mixed-use, pedestrianoriented areas Skyline variation Location of Western Road Street and sidewalk width Parking garage access 7

8 PROPOSED PROJECT CONCEPT USES + SITE PLAN Use Square Feet Creative Office 374,423 Retail 29,391 Residential 471 units Artist Work/Live 27 units Building 4 switched to residential Included pedestrian-oriented major open space Location of Western Road Street and sidewalk width Parking garage access Creative Office/ Retail Creative Office/ Retail Residential Residential Residential 8

9 PARKING Required Parking Based on draft Bergamot Area Plan requirements at Plan adoption 748 parking spaces for Residential 807 parking spaces for Commercial Minimum of 653 shared parking spaces Proposed 1,936 parking spaces Bicycle Parking provided in accordance with draft Bergamot Area Plan 928 long-term 122 short-term 20 showers 323 lockers 9

10 BERGAMOT AREA PLAN POLICY CONSISTENCY Urban Form Complies with urban form concept Further Consideration Mass and scale of Building 5 Open Space Complies Providing open space Further Consideration Viability of trees on deck Sidewalk widths Circulation and Mobility Further Consideration Supporting no net new PM peak trips (parking cash-out issue) Parking pricing structure Land Use Complies with land use mix Further Consideration Range of units 10

11 PROJECT EVALUATION: MANDATORY DEVELOPMENT STANDARDS Mandatory Standards Building Height FAR 11

12 MANDATORY STANDARDS: BUILDING HEIGHT AND FLOOR AREA Intent to reduce mass of buildings at upper levels Maximum FAR of 2.5 for Tier 3 project per draft BAP Already reduced from LUCE maximum of 3.5 Building Modulation for top two floors to be reduced by 90% and 50% of largest building floor plate Conformance with design objectives to achieve same goal Additional floor area reduction that corresponds to requested height over 75 applies only to floor area between 75 to Reduce floor area by % increase in height btw 75 to 81 50% of largest floorplate 90% of largest floor plate Height above 13.5 not counted (4.5 height reduction) 12

13 PROJECT EVALUATION: FLEXIBLE STANDARDS Building Modulation Top 50% of largest floor plate Top Floor minus 90% of largest floor plate Maximum Floor Plate 35,000 sf 13

14 FLEXIBLE STANDARDS FINDINGS That meeting all development standards will prevent physical innovation in mixed-use development and/or building design That the proposed design reinforces and enhances the establishment of a mixed-use pedestrian-oriented environment and sidewalk life in the Transit Village and Mixed-Use Creative Districts That the proposed design supports local uses, including but not limited to the provision of housing, daily community needs and/or services, and/or public open space and green connections to adjoining neighborhoods That the proposed design integrates features and amenities, including, but not limited to wider sidewalks, landscaping and trees and/or arts and cultural uses That, where relevant, the proposed design maintains solar access for existing, adjacent or adjoining residential land uses 14

15 PROJECT EVALUATION: BAP DESIGN OBJECTIVES/GUIDELINES Guidance for projects using flexible development standards Encourage innovative ways to achieve design goals without prescriptive standards Project does not conform with some design objectives Objective 1: Open space Objective 5: Building plane modulation Objective 6: Height modulation Objective 8: Integrate with and foster logical evolution of Bergamot s industrial character Objective 9: Innovative architecture 15

16 BUILDING 1 Co-planar north and south elevations Articulation achieved through texture and balconies 270 long elevations Skyline variation only between each building Proposed architectural projection

17 BUILDING 2 Primarily rectangular building Strategy appears to be vertical bays and horizontal articulation Skyline variation Does not conform with flexible standards Proposed architectural projection

18 BUILDING 3 Significant building offsets to create courtyards 60 x 60 courtyard dimensions somewhat disproportionate to surrounding 80 high building

19 BUILDING 4 Roughly 40 wide building separation at upper levels 2-story volume beneath 5-story bridging element Roughly 60 wide separation at ground floor Complies with draft BAP flexible standards on building modulation

20 BUILDING 5 Over 300 long north elevation Lack of natural light for ground floor units Narrow area between buildings Awkward transition between public and private space

21 OPEN SPACE Distinction between design of public space and primarily site amenities Major 31,000 sf open space on Site 1 Neighborhood park on Site 4 Plaza on Site 5 2 pedestrian pathways 21

22 WESTERN A STREET BAP Figure 7.10 (Page 226) Western A Street (Flexible) Project Plan Min Right-of-Way Min Ped Realm Min Through Zone Min Furnishing Zone Min/Max Lane Width 12 9 /11 Min/Max Shared Travel Way Min/Max Parking Width 8 7 /8 Min Ped/Vehicle Flex Space 8 12 Parking Type Angled Parallel 22

23 EASTERN B STREET BAP Figure 7.12 (Page 230) Eastern B Street (Shared) Project Plan Min Right-of-Way Min Ped Realm Min Through Zone Min Furnishing Zone /7 Min/Max Lane Width Min/Max Shared Travel Way /20 Min/Max Parking Width 8 7 /8 Min Ped/Vehicle Flex Space Parking Type Parallel Parallel 23

24 NEBRASKA AVE EXTENSION Min Right-of-Way Nebraska West (Complete) Nebraska East (Shared) Project Plan Project Plan 39 9 (half) (half) 65 BAP Figure 7.02 (Page 209) Min Ped Realm Min Through Zone Min Furnishing Zone /7 Min/Max Lane Width Min/Max Shared Travel Way /20 Min/Max Parking Width TBD 7 /8 TBD 7 /8 Min Ped/Vehicle Flex Space Parking Type TBD Parallel TBD Parallel Complete Street Shared Street 24

25 DEVELOPMENT AGREEMENT FRAMEWORK Outside Building Permit Issuance Date Length of time for Developer to obtain building permit 10 years Anticipates project being constructed in two phases and five buildings Community benefits per Building On-site Publicly Accessible Open Space Early Childhood Initiative TMA and Bike Share Annual contribution Historic Preservation Annual contribution Community Benefits per Phase Public transit stop enhancements Historic Preservation Initial Contribution Joint obligations Streets Annual Monitoring Expo Buffer Park contribution Ongoing Landscaping Maintenance TDM Plan Local Hiring TMA and Bike Share Initial contribution 25

26 SIGNIFICANT PROJECT FEATURES Affordable Housing 5% of units (25 Extremely Low Income Utility Undergrounding Remove all overhead transmission, distribution, and electrical power lines at project perimeter Sustainability LEED Gold Certification 5% of parking spaces to be EV Ready Strive for net-zero water use in Creative Office Phase Dual plumbing Non-potable water for toilet flushing and irrigation Solar photovoltaic energy system that produces at least 5kw AC/1000 sf of building footprint area (alternative energy may be proposed to produce same amount of renewable energy) Transportation Impact Fee Payment of up to approximately $5.1 fee Arts Contribution $4/sf with first $500,000 set aside for Site 1 plaza programming Remainder for on-site public art 26

27 COMMUNITY BENEFITS Surface easement for three new streets $2M contribution for construction of Expo Buffer Park Payable 90 days after effective date of DA On-site Public Accessible Open Space 31,000 sf Plaza + Eastern plaza: 8am 11pm 14,000 sf Park + pathways & courtyards: 8am 6pm Up to $855,000 total contribution to TMA $30,000 initial contribution at first building permit $3,000/building for life of project Increases evenly to aggregate of $15,000 annually if at least 3 buildings constructed at Outside Permit Issuance Date Up to $1,395,000 total contribution to Bikeshare $20,000 initial contribution at first building permit $8,000/bldg in Creative Phase + $3,000/bldg in Residential Phase for life of project 27

28 COMMUNITY BENEFITS Advance marketing preference to local workforce for housing units 27 artist work/live units including 1 unit at extremely low income Subject to initial and ongoing artist marketing plan Units required to comply with design guidelines Up to $160,000 for transit improvements adjacent to project $80,000 payable with first building permit of each phase Local hiring for construction and permanent jobs with commitment to interview qualified referrals 6 internships for Santa Monica High School and Santa Monica College students Up to $200,000 annual contribution for Early Childhood Education Initiatives for life of project (up to $11M total) $0.2608/sf contribution per building for life of project Up to $350,000 contribution for heritage preservation initiatives in underserved communities $25,000 initial contribution at each CofO for first 3 buildings $1,000/building for life of project 28

29 STREETS: PHASED APPROACH Critical Temporary Improvements - network completion at 18 months from first CofO (if not already constructed with building) Nebraska Avenue Extension Western Street Olympic Sidewalk Permanent Improvements With Site Nebraska Avenue, Western Street, Olympic Sidewalk, Stewart Sidewalk, 26 th Sidewalk With first Building in Phase Eastern Street; Stewart Street Crosswalk and Median At Outside Permit Issuance Date All Streets and Sidewalks 29

30 TRANSPORTATION DEMAND MANAGEMENT PLAN 3 principles Establish compliance requirements Create measures that would likely achieve targets Monitoring and reporting with non-compliance penalties Conventional Measures Already required by TDM ordinance, set as expectations by LUCE and BAP, or development standards Augmented PM peak hour trip caps with penalties for non-compliance 50% transit pass subsidy offered to all residents 50% Vanpool program subsidies 30

31 OUTSTANDING ISSUES Transportation Allowance/Parking Cashout Parking Pricing Mix and affordable level of additional affordable housing Affordable housing obligation of commercial component Striving for net zero water use in residential component Amount of financial security to be posted for street improvements 31

32 OUTSTANDING ISSUE: TRANSPORTATION ALLOWANCE Staff proposal Parking cash-out of at least $160 for employees whose employer leases parking for their employees regardless of employer size Transportation allowance of at least $140 for employees who employer does not lease parking for their employees Applicant proposal Implement existing parking cash-out law Applies to employers in following circumstances: 1) Employ at least 50 persons 2) Worksites in air basin designated as nonattainment 3) Subsidize employee parking that they don t own 4) Can calculate the out-of-pocket expense of the parking subsidy they provide 5) Can reduce the number of parking spaces without penalty 32

33 OUTSTANDING ISSUE: PARKING PRICING Staff Proposal Consistent with Bergamot Area Plan Minimum $8/day Preferred rate for employees who are also TMA members Variable rate structure for non-tma members and peakperiod Park and Ride commuters Developer Proposal Does not agree with preferred rate for employees who are also TMA members 33

34 OUTSTANDING ISSUE: ADDITIONAL AFFORDABLE HOUSING Agreement on additional 10% of units (50 units) Staff Proposal Range of unit types and different affordability levels 20% at 80% AMI 40% at 110% AMI 40% at up to 150% AMI Developer Proposal All at 180% AMI Rent Limits in AHPP Rents Beyond AHPP 34

35 OUTSTANDING ISSUE: AFFORDABLE HOUSING OBLIGATION FOR CREATIVE OFFICE PHASE Staff Proposal Separate obligation of Creative Office Phase regardless of whether Residential Phase is constructed or not Augmented fee based on commercial nexus study Fee may be offset through demonstrated partnership with Residential Phase developers for construction of on-site units Applicant Proposal Fee only applicable if building permits not issued for all 3 Residential Phase buildings Fee based on commercial nexus study Fee reduced by number of affordable units constructed in Residential Phase 35

36 OUTSTANDING ISSUE: SUSTAINABILITY FEATURES Residential Phase Water Use Energy Use Staff Proposal Aggressive but realistic performance standards for toilet flushing, showers, and clothes washers Non-potable water for toilet flushing Striving for meeting as much on-site energy needs with on-site renewable energy as possible Energy performance standard of 10kBTU/ft2/yr for parking garage Applicant Proposal Performance standards for toilet flushing, showers, and clothes washers based on Energy Star Does not agree with use of non-potable water for toilet flushing Would like to maintain flexibility in technology for non-renewable energy Does not agree to energy performance standard for parking garage 36

37 OUTSTANDING ISSUE: FINANCIAL SECURITY FOR STREET IMPROVEMENTS Staff Proposal Financial security that covers temporary and permanent improvements Possible event of Non-Monetary Default where City may choose to terminate the development agreement Applicant Proposal Financial security that covers only permanent improvements 37

38 SUMMARY OF ECONOMIC ANALYSES Value Enhancement Analysis Identifies additional development value that the project would create relative to hypothetical Tier 1 project: $25.7M Feasibility Statement Residual Land Value used as expression of feasibility for project alternatives Tier 1: 63% less than current assessed value of property; 47% less than proposed project s estimated residual land value Zoning Compliance: 40% less than current assessed value of property 15% less than proposed project s estimated residual land value Fiscal Impact Analysis Project would result in estimated net annual impact of $420,000 to City s General Fund Economic Impact Analysis During construction: estimated $322M of one-time economic benefit; 1,781 direct jobs During project operations: estimated $282M of annual recurring economic activity; 1,448 direct jobs 38

39 ENVIRONMENTAL ANALYSIS Original project studied in EIR consisted of more commercial use with less residential (541,822 sf of commercial and 325 residential units) Draft EIR published January 12, 2012 for 45-day public comment period and extended for additional 14 days (total of 60 days) 341 comment letters received primarily focused on traffic, land use/planning, neighborhood effects, and alternatives Applicant elected to pursue development of project substantially similar to Alternative 3 (Residential Alternative) after publication of Draft EIR Final EIR published June 2013 includes all responses to comments 39

40 ENVIRONMENTAL ANALYSIS Unavoidable Significant Impacts Aesthetics removal of coral trees from Olympic Blvd scenic corridor Air Quality construction and project-related VOCs and NOx Construction Effects localized construction emissions Traffic Impacts 20 Approval Year plus Project intersections 22 Future Year plus Project intersections 6 street segments 40

41 ENVIRONMENTAL ANALYSIS Alternatives Studied No Project/Reasonably Foreseeable Alternative Eliminates operational air quality impact Reduces traffic impacts Residential Alternative Reduces traffic impacts Reduced Project Alternative Environmentally Superior Alt 19% less floor area than proposed project Eliminates operational air quality impact Reduces traffic impacts 41

42 CONCLUSION Key Issues for Discussion Outstanding Issues on Development Agreement Additional Affordable Housing unit mix and affordability level Affordable Housing Obligation of Creative Office Phase Parking Cashout/Transportation Allowance Parking Pricing Sustainability (Water Use for Residential Phase; Energy Use) Financial Security for Street Improvements Outstanding Issues on Project Design Scale and length of Building 5 Skyline variation Building modulation Appropriateness of architectural projections Relationship between smaller open spaces and buildings on Sites 2 and 3 Resolving campus feel of project Lack of findings and conformance with design objectives and guidelines to support deviation from flexible standards Recommendation Staff recommends Planning Commission review and provide comment on outstanding issues 42