City of Culver City, California
Agenda Item Report
Meeting Date: 03/08/2010 Item Number: D-1
REDEVELOPMENT AGENCY BOARD AGENDA ITEM: Discussion of Proposed
Alternatives for the Development of 9300 Culver Boulevard and the Adjacent Town
Plaza Expansion.
Contact Person/Dept.: Joe Susca,
Todd Tipton/Redevelopment
Phone Number: 310-253-5763
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – Redevelopment Agency (03/03/10),
The Downtown Business Association (02/03/10)
Department Approval:
Sol Blumenfeld (2/13/10)
Agency General Counsel Approval:
Murray Kane (02/23/10)
Chief Financial Officer Approval:
Mark Scott (by N. Kimball) (03/03/10)
Executive Director Approval:
Mark Scott (03/03/10)
RECOMMENDATION:
Staff recommends that the Culver City Redevelopment Agency Board (the “Board”)
discuss alternatives regarding (1) the content of a Request for Proposal (“RFP”) to
secure a new developer for redevelopment of the 9300 Culver Boulevard site (a
Downtown parking lot commonly referred to as “Parcel B”); (2) whether or not to
build additional parking as part of the project, and (3) whether or not to build the
Town Plaza Expansion now or await its construction in combination with Parcel B.
After receiving input from tonight’s study session, staff will return to the Board to take
action on this item at a future meeting.
BACKGROUND:
On July 10, 2006 the Agency entered into a Disposition and Development
Agreement with a developer to sell Parcel B. Parcel B’s existing entitlement permits
construction of a 3-story commercial building comprised of 118,000 square feet of
ground floor retail and restaurant uses and upper floor offices, one subterranean
level with 84 parking spaces, and three storage rooms (the “Project”). The Project’s
building permits are approved and may be pulled and the building’s conceptual plans
are attached for your reference. On December 14, 2009 the Board terminated its
agreement with the developer of the Project.
Adjacent to Parcel B is Town Plaza, which the Agency intends to expand. The first
phase of the Town Plaza Expansion project, the realignment of Washington
Boulevard, has been completed. The design and construction documents for the City of Culver City, California
Agenda Item Report
second phase, construction of the expansion area, are complete and are now ready
to undergo the public bidding process to select a General Contractor.
DISCUSSION:
The Board has directed staff to present development alternatives for consideration in
drafting a Request for Proposal (RFP) or Request for Qualifications (RFQ) for the
project. The alternatives include both (1) development programs that are consistent
with the original project entitlements and environmental review (i.e. consistent in
size, building volume, building height and development program) and (2) programs
which vary from the approved entitlements and environmental reviews which may
require modifications to the entitlements and environmental review.
The original project was designed as a post-production office facility with an
entertainment related major tenant and ground level retail. Since the major
entertainment related tenant is no longer involved in the project, the Board may also
wish to consider a different development program and building configuration to
accommodate different goals or needs. Staff has proposed six alternatives,
described below, that the Board may wish to consider. With Board direction, staff will
prepare a draft RFP or RFQ to issue to qualified developers. Please refer to the
attached table that summarizes the development alternatives .
Alternative I
Keep Building Design As-Is
Estimated Agency/City Cost: $0
Timeframe: 12-15 months to negotiate a DDA, enter into leases and secure
financing.
In this alternative, the Board preserves the existing Project and instructs staff to
release a Request for Qualifications (“RFQ”) to secure a new developer to build the
Town Plaza Expansion, to purchase the Project’s plans
i
and subsequently build it
as-is. A qualifications statement rather than development proposal by developer
teams is required in this alternative because the entitled project is unchanged and
the original plans will be used A DDA would be negotiated that includes a Schedule
of Performance to provide the new developer time to enter into leases with tenants
and to secure financing for the Project.
ii
Once financing had been secured by the
new developer, the land sale would conclude and construction would commence on
the Project and the Town Plaza Expansion concurrently. The Project includes
storage and common area restrooms for Town Plaza.
City of Culver City, California
Agenda Item Report
Alternative II
Modify Building Design Pursuant to the Existing Entitlement
Estimated Agency/City Cost: $1,400,000 in delayed Agency Tax Increment and City
taxes.
Timeframe: 24-30 months.
Because of its unique street configuration, the downtown has limited opportunities
for pedestrian oriented retail frontage. Though not technically providing new street
frontage, the project could be redesigned to make the second level retail appear
more like street frontage by creating an elevated pedestrian walk through the project
as suggested in the attached conceptual plan. The design is similar to the concept
at the Via Rodeo shopping center in Beverly Hills. (See attached ).
In this alternative, an RFP would be issued to obtain a new developer for a project
that adheres to the existing entitlement and general development program, but with
a different building design. In this option, a redesigned building incorporates the
concept of a central pedestrian “street”. The street or paseo would have the effect of
increasing retail frontage on the second floor level and creating a new walking
“street” in Downtown. The upper level pedestrian walk is located above the “back of
house” portions of the retail frontage at the ground level.
The creation of the pedestrian “street” would reduce building area and potentially
reduce floor plan efficiency thereby reducing rents, but this effect may be offset by
the value created by new “street-frontage” retail that is created for the project and by
the added benefit of enhancing the downtown pedestrian environment.
Alternative III
Modify Building Design and Use with New Entitlement
Estimated Agency/City Cost: $2,100,000 in delayed Agency Tax Increment and City
taxes or their elimination depending on the use selected.
Timeframe: 36-42 months.
In this alternative, the RFP would allow a new developer to build a different project
on Parcel B that might include a mixed-use development with a residential
component, educational, museum, a single large retailer or service institution, fitness
center or non-profit use. Culver City Municipal Code amendments over the past
decade have increased the parking requirements for restaurant uses. If the Agency
were to change the existing entitlement to pursue a different project, it is likely that
the cost to build additional required parking spaces will adversely affect Parcel B’s
land sale price.
City of Culver City, California
Agenda Item Report
Alternative IV
Additional Parking
The draft Walker Downtown Parking Study (the “Study”) analyzes the capacity of
each of the Agency’s three parking structures. Though the Study is being finalized,
the preliminary findings indicate that if Parcel B was built without additional parking,
the “pooled parking” balance would be reduced
The existing project entitlement stipulates that the required parking be provided at
the Ince Parking Structure. The prior developer opted to build one level of
subterranean parking with 84 parking spaces with the balance provided in the Ince
parking structure. The Agency may want to consider releasing an RFP that requires
the developer to construct additional parking beneath the building footprint or
encompassing the area beneath the Town Plaza. The net parking benefit is shown
below:
Parking Beneath Parcel B:
Level Spaces Cost Per Space* Cost Per Level
P2 84 $40,000 $3,360,000
P3 84 $48,000 $4,032,000
Total 168 $7,392,000
*Comparatively, a parking space cost $15,000 each in an above-ground structure.
Town Plaza Expansion Area and Partnering with The Culver Studios:
The Board may also want to consider expanding Parcel B’s first subterranean level
footprint into the adjacent Town Plaza Expansion area and share parking with The
Culver Studios (the “Studios”).
iii
This would result in an additional 29 spaces per
level (113 total) at a cost of $870,000 for the first level and an additional $1,160,000
for a second level. In addition to the cost to construct the spaces, modification of the
existing Town Plaza Expansion construction documents and engineering a new
storm water drainage system would add an additional $75,000 to the cost.
In exchange for the subsurface use of the Agency’s land, the Studios would use the
parking spaces during their business hours; however the Agency would be permitted
access to up to 475 parking spaces for use by the public during weeknights,
weekends and during the Studios off-season. This would require a reciprocal
parking agreement between the Agency and the Studio. In this scenario, access to
the subterranean parking levels would be via a ramp located beneath Parcel B
and/or the Access Road that separates Parcel B from the Studios (see “The Culver
Studios Shared Parking Plan” attached.) The two subterranean parking levels
however, would be incorporated with the Agency-owned Access Road, and the
Studios properties. The anticipated cost for this proposal is as follows:
City of Culver City, California
Agenda Item Report
Level Spaces Cost
Studios Front Lawn 115 $0
Town Plaza Expansion 29 $870,000
Plaza Expansion Redesign N/A $75,000
Shared P2 Level 331 $4,032,000
Total 475 $4,977,000**
**$4,977,000 equates to $10,478 per shared parking space.
The RFP to secure a new developer for Parcel B would condition sale of the site
upon the successful execution of a tri-party reciprocal easement and
maintenance/operations agreement between the new Parcel B developer, the
Agency and the Studios for the shared parking spaces. Thus the Board may wish to
consider adding parking beneath Town Plaza alone or beneath Town Plaza and
incorporating Culver Studios parking.
Alternative V
Town Plaza Expansion Construction Now:
The Parcel B site is cleared and Washington Boulevard has been reconfigured in
anticipation of redevelopment,. With Parcel B development delayed, the area
presents an unimproved street edge in a central part of the downtown. The Board
may wish to consider constructing Town Plaza improvements in advance of the
Parcel B development to address this concern.
The construction documents for the Town Plaza Expansion are completed and the
project is ready to bid out and build. Since the Town Plaza Expansion area was
designed to be built following construction of Parcel B, and since the Parcel B
project has been delayed the Board may wish to disaggregate the projects and
proceed now with some temporary Plaza improvements. In the near-term a
temporary landscaped buffer could be created for screening purposes. The buffer
would incorporate the triangular shaped portion of Parcel B that is part of the former
Washington Boulevard roadway. (Please see attached sketch) Upon the close of
escrow on the land sale (2-3 years later), the buffer would be demolished and
become part of Parcel B’s redevelopment
If the Board instructed staff to build the Town Plaza Expansion with a temporary
transitional buffer as a separate project, absent Parcel B, following are two designs
to consider:
Basic Landscaped Buffer $125,000: In this alternative, the former roadway’s
concrete would be demolished, removed and replaced with wood chip ground
cover surrounded by a concrete curb along the boundary of the Town Plaza
Expansion area.
City of Culver City, California
Agenda Item Report
Enhanced Landscaped Buffer $280,000: In this alternative, after demolition of the
former roadway; trees, ground cover, a detachable irrigation system, paved
walkways, hedge, and a low-height fence around Parcel B would be built. (See
attached Enhanced Landscaped Buffer Conceptual Plan).
Alternative VI
Consider Unsolicited Proposals
Staff has been contacted by various developers who have expressed interest in
Parcel B. Though none have prepared project plans or definitive proposals, the
Board may wish to consider these unsolicited proposals as part of Agency real
property negotiations. If the Board decides to pursue this option, staff will schedule
the matter for Closed Session pursuant to Government Code Section 54956.8.
FISCAL ANALYSIS:
If construction of the existing Project is delayed or replaced with a new use, tax
increment receipts (projected to be $424,000 in year 1 with 2% annual growth
thereafter), one time building permit fees (approx. $1,000,000), and other City tax
revenues (i.e. Sales Tax, Business Tax and UUT totaling approx. $265,000
annually) will be delayed until construction is completed; or reduced if a different use
for the site is adopted. If the Board decides to fund the construction of additional
parking spaces with a new developer or the Studios, it may do so by reducing Parcel
B’s land sale price. The realignment of Washington Boulevard, which has been
completed, cost $2,300,000. Currently, $2,800,000 is allocated in tax-exempt bond
proceeds (55393400) to complete construction of the Town Plaza Expansion.
CONCLUSIONS:
The Board should consider:
• Whether to proceed with the existing Parcel B Project with a new developer
or pursue a new building design and/or use for the site; and
• Determine if additional parking should be built as part of the Project and if so
whether it should include the area beneath Town Plaza and/or include a
cooperative parking aggrement with Culver Studios; and
• Whether or not to build the Town Plaza Expansion now or await its
completion by a new developer.
If the Board prefers to pursue a new building design and/or use, it will result in
project delays of 3-4 years. If this is the case, staff recommends the Town Plaza
Expansion be built absent the Parcel B building with a temporary landscape buffer
costing either $125,000 (basic) or $280,000 (enhanced). City of Culver City, California
Agenda Item Report
If the Board were to instruct staff to build additional parking, it may fund its cost in
part by reducing Parcel B’s land sale price.
ATTACHMENTS:
1. Parcel B Conceptual Plans
2. Parcel B/Town Plaza Study Chart
3. Town Plaza Expansion -- Parcel B Enhanced Landscape Buffer Conceptual Plan
4. Conceptual Plan and Via Rodeo Photographs
5. The Culver Studios Shared Parking Plan
MOTIONS:
That the Agency Board:
1. Discuss the various alternatives presented in this report regarding the future
development of the 9300 Culver Boulevard site, whether or not to build
additional parking as part of the sites redevelopment, and when to build the
Town Plaza Expansion and direct the Executive Director as deemed
appropriate.
i
When the Board terminated the DDA with the former developer the Agency preserved its rights to
acquire the Project’s plans.
ii
Agency Tenant Control:
To further the Agency’s goals for Downtown, the agreement with the prior developer of Parcel B
required Agency approval of ground floor businesses that are “unique, high-end, and high-quality”
both initially and for seven years after construction is completed. In light of the economic downturn,
the Board could instruct staff to release an RFP that eliminates these tenant control measures in
order to expand the pool of tenants interested in leasing space within the Project.
iii
Staff has received an unsolicited proposal by The Culver Studios to construct and share parking
beneath the Access Road that separates The Culver Studios from Parcel B and the front lawn of the
Studios Mansion.
MEETING DATE: 03/08/10
AGENDA ITEM: REDEVELOPMENT AGENCY BOARD AGENDA ITEM:
Study and Provide Staff Direction on Proposed
Alternatives for the Development of 9300 Culver
Boulevard and the Adjacent Town Plaza Expansion.
ATTACHMENTS
Item Description Pages
1
3
4
5
Parcel B Conceptual Plans
Town Plaza Expansion -- Parcel B Enhanced
Transitional Buffer Conceptual Plan
Two Building Design Conceptual Plans and Via
Rodeo Photographs
The Culver Studios Shared Parking Plan
1-2
3
4-8
9-11
ATTACHMENT 1
1ATTACHMENT 1
2ATTACHMENT 2
3ATTACHMENT 3
4ATTACHMENT 3
5DIVIDED BUILDING TO CREATE NEW
2nd LEVEL STREET FRONTAGE
Culver Blvd.
Washington Blvd.
Town Plaza Expansion
New 2nd Level
“Walk Street”
ATTACHMENT 3
6TENANT SPACES AT
2nd LEVEL “STREET FRONTAGE”
Culver Blvd.
Washington Blvd.
Town Plaza Expansion
12
11
10|10 101010101010101010|ATTACHMENT 3
7TENANT SPACES AT
2nd LEVEL “STREET FRONTAGE”
TENANT SPACES AT
GROUND LEVEL “STREET FRONTAGE”
12
11
10|10 101010101010101010|12
11
10|10 10101010101010|5 6
TENANT LAYOUT
ATTACHMENT 3
8ATTACHMENT 4
9ATTACHMENT 4
10ATTACHMENT 4
11