City of Culver City, California
Redevelopment Agency Agenda Item Report
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RECOMMENDATION:
Staff recommends the Culver City Redevelopment Agency (“Agency”) authorize staff
to negotiate and draft a Disposition and Development Agreement (“DDA”) with
James Suhr & Associates, LLC, to develop the Agency owned property at 12803-
12823 Washington Boulevard (the, “Baldwin Site”) and to reject all other proposals
received.
BACKGROUND:
The Baldwin Site consists of four contiguous properties which span the north side of
Washington Boulevard, on the block between Meier Street on the east and Moore
Street on the west. The rear of the site is bordered by an alley in the City of Los
Angeles. The site has 24,100 gross square feet, and after a required corner radius
dedication has a net developable area of 23,947 square feet. The Agency acquired
the four properties during 2005-2006, and in total, spent $4.4 million on acquisition,
relocation, demolition and various administrative costs to convert this once blighted
block into a development opportunity.
On May 1, 2006, the Agency authorized execution of a Disposition and Development
Agreement with the West Culver Lofts, LLC, to develop the Baldwin Site into 24
units, 12 of which were to be live/work and the other 12 were to be loft housing. On
October 30, 2006, the Agency’s Disposition and Development Agreement with the
West Culver Lofts, LLC terminated in accordance to the terms of the Disposition and
Development Agreement when certain conditions were not satisfied by the time
frame in the schedule of performance.
Meeting Date: 09/17/07 Item Number: A-1
AGENDA ITEM: Consideration of Proposals for the Baldwin Site (12803-23
Washington Boulevard; Authorization to Prepare a Disposition and Development
Agreement with James Suhr and Associates, LLC, and Rejection of All Other
Proposals
Contact Person/Dept.: John Fisanotti Phone Number: (310) 253-5767
Fiscal Impact: Yes [X ] No [ ] General Fund: Yes [X ] No [X]
Public Hearing: [ ] Consent Item: [] Action Item: [X ] Attachments: [X]
Public Notification: The five finalist developers submitting proposals (09/04/0) and the
Master Notification List (09/12/07)
Department Approval:
Sol Blumenfeld (09/06/07)
Executive Director Approval:
Jerry Fulwood (9/12/07)
City Controller Approval:
Marlee Chang (09/11/07)
City of Culver City, California
Redevelopment Agency Agenda Item Report
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In January 2007, the Agency issued a new Request for Proposal and received eight
proposals in response by the February 28, 2007 proposal submission deadline.
Those eight were reviewed by City and Agency staff and the Agency’s financial
consultant. Also, all eight were interviewed by a panel of City and Agency staff.
These eight were then narrowed down to a short list of five, all of whom were asked
to submit revised offers for the land purchase price. Of the five short listed
proposals, the one from James Suhr & Associates, LLC (“Suhr”) was considered to
be exceptional. The two principals in this endeavor are the team of Jim Suhr and
Wally Marks, the latter is a major property owner in Culver City and developed the
highly successful “Helms” site. As originally proposed by Suhr, the proposed project
was an office condominium structure with some ground floor retail space.
Staff met with the development team on June 28, 2007 and suggested that they
consider modifying their proposal, by reducing the commercial depth of the project to
30 feet in order to include ground level metered public parking and thereby maximize
the redevelopment opportunity for the community. Marks and Suhr followed up with
a the attached revised plan which also incorporates green building design, outdoor
dining public art and exciting architecture. After reviewing the redesign, the
Agency’s West Washington Subcommittee is recommending to the Agency Board
that it consider authorizing staff to prepare a DDA with Marks and Suhr for the
development of the Baldwin site.
Attachment No. 1 to this staff report is a table summarizing the five proposals on the
short list. Attachment No. 2 to this staff report is a set of architectural concept
drawings submitted by Suhr which illustrate the proposal structure. Attachment No.
3 provides photos of the project model.
DISCUSSION:
Project Description
The project is a three story “environmentally friendly” green building with office and
retail condominium use and restaurants, providing 21 metered public parking spaces
at the ground level and 18 required parking spaces for the retail and restaurant uses.
The metered public parking would be noted on the building face and parking signage
would also be provided along the street or sidewalk to ensure that is used as a
commercial community resource. The design of the project with narrower
commercial depth to accommodate public parking is seen as prototype for providing
vitally needed public parking to area.
The project provides 6,250 square feet of retail and restaurant space and 31,150
square feet of office condominium space at the 2
nd
and 3
rd
levels. The project is
environmentally friendly in that it includes solar panels, photovoltaics, “green roof”,
natural lighting to the subterranean parking level, natural cooling and renewable City of Culver City, California
Redevelopment Agency Agenda Item Report
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green building construction. The project is “community friendly” in that it provides
the public benefit of public parking, beyond what is required for the project and
incorporates public art in a unique building design.
Though project tenants have not been selected, the developers envision the building
as “creative office condominium space, for companies that may include graphic
artists and architects and daytime serving retail space that includes two restaurants.
The developer sees a niche for creative office because of the loss of such space
around the nearby Glencoe Avenue area that has been redeveloped with housing
and the emerging market for office condominium space generally.
Staff believes the project has the potential to be a major catalyst in the west
Washington area. Its distinctive architecture should make it a flagship project and
generate area interest and reinvestment. The proposed project has a number of
creative features:
Green building design with roof-top mounted photovoltaic system, renewable
building products, light wells into interior spaces, natural ventilation, and a
second floor garden terrace (a green roof over parts of the first floor) and a
green screen in the rear of the property.
Public art incorporated in the building design.
Public metered parking - The developers are willing to partner with the
City/Agency in helping to create public parking on their site. The developers
are willing to devote a portion of the ground floor for metered public parking,
the revenues of which would flow to the City. Compared to the normal
method in which the City provides parking (i.e. land is acquired and held, then
all construction and operational costs are borne by the City) this method is
much more cost effective and quicker to produce. In this case, the Agency
acquired land is sold and the developer absorbs the construction cost of the
parking. At the scale proposed for the Baldwin Site, the savings to the City
could be as much as one million dollars. If approved, this concept could be a
prototype for other sites in Culver City
If the Agency approves the recommended motion, then staff and Suhr will begin
negotiating and drafting a DDA containing all final terms and conditions for the sale
and subsequent development of the Baldwin Site. If negotiations are successful,
then approval of the DDA and the sale of the property will be scheduled for a joint
public hearing of the Agency and City Council to take their respective required
actions. Among the issues to be worked out in a final DDA are:
Terms for payment of the proposed purchase price of $3,200,000 to the
Agency for the land by Suhr;
Schedule of development with milestone dates for various project milestones; City of Culver City, California
Redevelopment Agency Agenda Item Report
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Arrangement for the operation, control security and revenue collection for the
public parking spaces; and
Determination if a subterranean encroachment permit under certain portions
of the adjoining right-of-way can be issued in order to maximize the useable
space on the underground parking level.
FISCAL ANALYSIS:
Suhr is offering $3,200,000 for the land. This price is unchanged from the original
offer. In addition to the land sales proceeds, future revenue to the Agency through
the tax increment revenue generated from the site is estimated to be at $ 96,000 in
the first year which will grow at a minimum of 2% per year, and will also generate
$32,000 for the Housing Set Aside Fund. Since tenants for the project have yet to
be identified, revenues to the City are hard to project at this time. However, based
on the types of tenants that the developers intend on soliciting, the City may receive
approximately $40,000 annually in sales tax, business tax and utility user’s taxes. A
more accurate estimate of tax receipts will be provided once prospective tenants are
identified.
Parking meter revenue for the 21 proposed public spaces in the project at the
current parking meter rates ($0.5 per hour) would generate approximately $17,000
to $18,000 annually (assumes 65% of occupied rate at all times Monday through
Saturday between 8 am to 6 pm).
ATTACHMENTS:
1. Summary of proposals received for the Baldwin Site from the five short-listed
developers
2. Architectural concept drawings submitted by James Suhr & Associates, LLC
3. Photographs of a model of the structure proposed by James Suhr &
Associates, LLC
4. Project Pro Forma.
MOTION:
That the Agency:
Authorize staff to prepare a Disposition and Development Agreement with James
Suhr & Associates, LLC, for the Baldwin Site (12803-23 Washington Boulevard) and
when complete, schedule consideration of the Disposition and Development
Agreement and the sale of the property before a joint public hearing of the Agency
and the Culver City City Council.