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CC - CONSENT ITEM: Approval of a Residential Parking License Agreement, for Use of the City-Owned Watseka Parking Structure Located at 3535 Watseka Avenue, with Rethink LLC, to Support the Mixed-Use Project at 9814 Washington Boulevard.
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Meeting Date: July 13, 2026
Contact Person/Dept: Elaine Warner/ Economic Development Director
Phone Number: (310) 253-5777
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (07/08/2026); Center Theatre Group (07/07/0/2026), Downtown Business Association (07/07/2026)
Department Approval: Adam Troy, Assistant City Manager (06/23/2026)
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RECOMMENDATION
Staff recommends the City Council approve a residential parking license agreement, for use of the City-owned Watskea Parking Structure, with Rethink, LLC, related to the construction/operation of a mixed-use project at 9814 Washington Boulevard and provide direction to the City Manager as deemed appropriate.
BACKGROUND
In September 2022, the City and Rethink Culver, LLC (“Rethink”) entered into a Disposition and Development Agreement (“DDA”) for the sale and redevelopment of City property located at 9814 Washington Boulevard, immediately adjacent to the Kirk Douglas Theater. The purpose of the agreement was to activate an underutilized City-owned property, create additional affordable housing and enhance the local economic and cultural environment. As approved, the mixed-use project would consist of three - four levels, with 2,725 SF of new ground floor commercial space and 34 residential units that would include two Very Low-Income and four Moderate units (the “Project”). The Project was intentionally designed without on-site parking relative to the mobility/walkability of Downtown Culver City as well as to mitigate disruption to the neighboring businesses.
Since Project approval and the closing of escrow, Rethink has encountered several challenges in the Project development and requested extensions to their Schedule of Performance and Project entitlements. Rethink has indicated that the design process was longer than expected due to the complex nature of the Project specifically with the loss of the modular design component initially proposed as well as the coordination with infrastructure components related to the Kirk Douglas Theater.
In October 2025, the City approved an amendment to the DDA for specific modification to support the overall feasibility of the Project. These modifications included the removal of the required arts related space on the ground floor, potential allowance to extend outdoor dining along Culver Boulevard, modification of affordable housing unit mix, positioning of HVAC unit above ground/public right-of-way and accommodation of construction parking in the City’s Watskea Parking Structure.
DISCUSSION
As the Project, now called “Stage Right Residences,” has continued to progress into construction drawing development, Rethink has indicated that prospective lenders and investment partners have indicated that they would not pursue the Project without a defined parking solution, despite the walkable location in Downtown Culver City. To this end, Rethink has requested that the City consider granting a transitional residential parking license agreement for a minimum 10-year term to support Project feasibility and financing (Attachment 1).
Rethink has requested the following terms:
• Preferred Initial Term: Five (5) years with one additional five (5) year extension
option exercisable by the Project, provided the Project is not in default under the
agreement.
• Minimum Acceptable Term: Ten (10) years.
• Additional Extension Option: One additional five (5) year extension option subject to mutual agreement between the parties.
• Requested Allocation: Up to 34 spaces, subject to availability, annual adjustment, and actual resident demand.
• Annual Adjustment: Number of leased spaces to be established each year with at least sixty (60) days’ notice prior to the start of the lease year.
• Year One Ramp-Up: Month 1 - 15 spaces; Month 2 - 20 spaces; Month 3 and thereafter - up to 34 spaces based on leasing activity and resident demand, with the Project committing to the agreed number of spaces for the balance of the lease year.
• Long-Term Objective: Parking demand reduced as more mobility patterns evolve (ride-hailing, autonomous vehicle adoption, transit access, and micromobility options). The parties may periodically review utilization and adjust the number of licensed spaces accordingly.
If the Council would like to pursue this agreement, staff proposes accommodation at the Watseka Parking Garage located at 3535 Watseka Avenue, which is the closest stand-alone public parking structure to the Project and has current space availability.
FISCAL ANALYSIS
If the City grants a minimum 10-year parking license agreement to support the project; the City will receive approximately $485,640 of additional parking revenue pursuant to the current monthly rate of $120 a month/per 34 spaces. This rate, however, may be adjusted in the future by City Council approval relative to increased costs for maintenance and operation of City parking facilities.
Rethink has indicated that if they are not able to obtain lender financing the project would become infeasible to construct. If the project were to become infeasible, the City would need to proceed with the provisions outlined in the DDA related to Project termination and property transfer.
ATTACHMENTS
1. 2026-07-13 - ATT Correspondence from Rethink LLC
2. 2026-07-13 - ATT Stage Right Residences White Paper - Housing and Mobility Partnership
recommended action
MOTION
That the City Council:
1. Approve a Residential Parking License Agreement, for use of the City-owned Watskea Parking Structure, with Rethink, LLC, related to the mixed-use project at 9814 Washington Boulevard; and
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.