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CC - CONSENT ITEM: Approval of an Amendment to the Development and Construction Contract by and between City of Culver City and Culver Public Market, LLC, Related to the Construction of a Public Parking Structure Affiliated with the Commercial Project Located at 12337 - 12423 Washington Boulevard, 4061 - 4063 Centinela Avenue, and 4064 Colonial Avenue.
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Meeting Date: August 11, 2025
Contact Person/Dept: Elaine Warner/Office of Economic and Cultural Development
Phone Number: (310) 253-5777
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/07/2025)
Department Approval: Jesse Mays, Assistant City Manager (07/22/2025)
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RECOMMENDATION
Staff recommends the City Council approve an amendment to the Development and Construction Contract between the City of Culver City and Culver Public Market, LLC, related to the construction of a public parking structure affiliated with the commercial project at located at 12337 - 12423 Washington Boulevard, 4061 - 4063 Centinela Avenue, and 4064 Colonial Avenue (“Culver Public Market”).
BACKGROUND
In May 2019, the City entered into a Development and Construction Contract (“DCC”) with Culver Public Market, LLC (“Developer”) for the construction of a public parking structure affiliated with the proposed commercial property located on two sites at the northerly corners of Washington Boulevard and Centinela Avenue (“Project”) (Attachment 1) . The existing DCC requires the Developer to construct a three and a half-level public parking structure that would accommodate approximately 180 public parking spaces to serve the Project and the local business district on City-owned property.
As part of this public-private partnership under the DCC, the City approved a contribution of $6.6 million (currently reserved in escrow) to be utilized towards the construction of the structure. At the time of agreement execution, the estimated cost was anticipated to be approximately $8 million, and the Developer was required to pay for a portion of the cost of construction of the parking structure (approximately $2 million at the time of entry into the DCC) related to project parking requirements.
Preliminary construction of the Project commenced in Fall 2019 relative to utility undergrounding and surface grading. In March 2020, the Developer invoked the Force Majeure provisions of the DCC and the Disposition and Development Agreement (DDA) due to the COVID-19 pandemic and ceased constructing the Project. The Successor Agency and the City repeatedly extended the Force Majeure period to allow the Developer to explore alternative tenanting and financing given the mutual financial investment in the Project.
In February 2025, the Successor Agency and the Developer entered into an amendment to the DDA that reduced the overall project square footage by approximately 13,300 square feet and removed the market hall component. The amendment also contemplated the reduction of the adjacent parking structure from three and a half levels to two levels, decreasing the public parking structure from approximately 180 to 125 spaces.
DISCUSSION
To be consistent with the approved amendment to the DDA, an amendment to the DDC is required relative to the Scope of Development, the Schedule of Performance and other exhibits related to the reduction of parking spaces (Attachment 2). Prior to executing the amendment, the current Parking License Agreement will require an amendment to reduce the number of parking spaces licensed to the Developer.
Since approval of the DDA, the Developer has updated the schematic drawings for the Project, including the reduced parking structure. In April 2025, the community was invited to review the site plans and elevations and provide feedback. The comments included the following considerations:
• Utilization of native plants, inclusion of sustainable practices, permeable materials and reduction of palm trees
• Increased community open space/retail
• Placement of more bike parking into plaza area
• Reduction of parking lot ratio to retail/ underground or surface structure to allow for a playground
• Missed opportunity to include mixed use/housing
• Selection of local artists for murals, thoughtful placement and content representative of area
• Placement of signage and traffic mitigations to reduce impact to residential community
• Appreciation and support to move project forward
These comments were forwarded to the Developer and City staff for reference and consideration of the revised construction drawings.
FISCAL ANAYSIS:
There is no fiscal impact related to the approval of the amendment. The allocation of $6.6 million was approved in 2019 and no new funding is requested. The Developer estimates that the City’s existing contribution of $6.6 million dollars currently set-aside in escrow would fund the entirety of the parking structure. However, if the construction cost of the parking structure were to exceed the City’s contribution, the Developer would be required to fund the difference and/or the City may wish to consider a revenue sharing program to ensure project feasibility.
California Government Code Section 53083
When the City approved the DCC in connection with the Project, it prepared a report as required by California Government Code Section 53083 (“Section 53083”) as the City agreed to give the Developer an economic development subsidy of $100,000 or more (i.e., the $6.6 million described above). Among other things, that report estimated how much tax will be generated and how many jobs will be created. Section 53083 also requires that at the 5-year mark, the City prepare a report and hold a hearing describing among other things how much tax was generated and how many jobs were actually created. The 5-year mark was reached on May 28, 2024, however due to COVID-19 delays, little, if any, tax has been generated, and no jobs have been created. It is suggested that the City prepare the report and hold the hearing at a later date, accounting for the period of the Force Majeure delay due to COVID-19.
ATTACHMENTS:
1. Project Location/Site Plan
2. Proposed Amendment to Development and Construction Contract
MOTION:
That the City Council:
1. Approve an amendment to the Development and Construction Contract by and between the City and Culver Public Market, LLC, related to the construction of a public parking structure affiliated with the commercial project at located at 12337 - 12423 Washington Boulevard, 4061 - 4063 Centinela Avenue, and 4064 Colonial Avenue (“Culver Public Market”);
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.