Legislation Details

File #: HIST-7151    Version: 1 Subject:
Type: Historical Status: Action Item
In control: HISTORICAL - REDEVELOPMENT
On agenda: 1/7/2008 Final action: 1/7/2008
Title: Consideration to Select Washinela L.P. as Developer for the Washington/Centinela Redevelopment Project; Authorization to Commence Negotiation of a Disposition and Development Agreement with Washinela L.P., and Rejection of All Other Proposals.
Attachments: 1. Consideration to Select Washinela L.P. as Develope - A-1__08-01-07 CDD SR WA-Centinela Washinela LLP Developer Selection - FINAL.doc, 2. Consideration to Select Washinela L.P. as Develope - 08-01-07 CDD ATT WA-Centinela Washinela LLP Developer Selection.pdf
City of Culver City, California Redevelopment Agency Agenda Item Report RECOMMENDATION: Staff recommends the Culver City Redevelopment Agency (the “Agency”) (1) select Washinela L.P. as developer for the northwest and northeast corners of Washington Boulevard and Centinela Avenue; (2) authorize the Executive Director to commence negotiating a Disposition and Development Agreement with Washinela L.P.; and (3) reject all other developer proposals. BACKGROUND: As part of the Agency’s goal of eliminating blight within the Redevelopment Project Area, staff identified a number of blighted and underutilized properties that have potential for redevelopment. Among those properties identified were the northeast and northwest corners of the intersection of Washington Boulevard and Centinela Avenue (the “Sites”). In 2006 and 2007, the Agency completed the Sites property acquisition efforts and relocated all the businesses within them. Below is a description and map of the two corners that comprise the Sites: • Site A, over one acre in size, is the northwest corner located at 12403-12427 Washington Boulevard, 4064 Colonial Avenue, and 4061-4069 Centinela Avenue. • Site B, approximately 20,000 square feet in area, is the northeast corner located at 12337-12343 Washington Boulevard. Meeting Date: 1/07/08 Item Number: A-1 AGENDA ITEM: Consideration to Select Washinela L.P. as Developer for the Washington/Centinela Redevelopment Project; Authorization to Commence Negotiation of a Disposition and Development Agreement with Washinela L.P., and Rejection of All Other Proposals. Contact Person/Dept.: Joe Susca Phone Number: (310) 253-5763 Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No [] Public Hearing: [] Action Item: [X] Attachments: [X] Public Notification: Businesses and Residents within 500 feet of the surrounding area (12/14/07); The Culver West Neighborhood Association, The Herbert Street Neighborhood Association, the Culver Triangle Neighborhood Association (12/19/07); Members of the public who have previously pulled speaker cards regarding the project over the past two years, Rethink, Second Street Ventures, Crimson Holdings, Washinela L.P., The Advisory Committee on Redevelopment (12/19/07), Viking Equipment Corporation (12/20/07); and the Master E-mail Notification List (01/02/08). Department Approval: Sol Blumenfeld (12/31/07) Fiscal Impact Review: Jeff Muir (1/2/08) Executive Director Approval: Jerry B. Fulwood (01/02/08) City of Culver City, California Redevelopment Agency Agenda Item Report During the meeting of April 16, 2007, the Agency approved a Termination and Release Agreement of the Exclusive Negotiation Agreement with the former developer of the Sites and instructed staff to issue a Request for Offers to secure another developer. In May 2007, staff released a Request for Offers and on June 18, 2007 eleven responses were received. Working with the West Washington Subcommittee, five of the eleven responders were rejected due to their low offers to purchase the land. On September 10, 2007, staff requested additional information from the six remaining developers including the submittal of conceptual plans and a pro forma financial analysis for their proposed projects. The request also announced that the 4063 South Centinela Avenue house was now a part of Site A and included sketches and photos for reference in designing public spaces, along with desirable project design features to consider integrating into their design that advance the City’s goals of good urban design. Four of the six developer finalists responded to the request with very positive proposals that reflect a high level of attention to their project’s design. A summary of their responses is outlined below. City of Culver City, California Redevelopment Agency Agenda Item Report Developer Proposal Description Washinela L.P. (see attached conceptual plans) Goal: A design that deploys green building principles and a symmetrical design on the two opposing corners, that includes dramatic entryway plazas, enhanced public art, and a colonnade comprised of a 5’ wide setbacks on the first floor. Project: A low-density, neighborhood friendly multi-use project comprised of separate residential and commercial buildings. Five 3-story Townhomes (rental), 2-story commercial with ground floor retail/restaurants and upper floor offices (for lease). 14K square feet of ground floor restaurant, 11K square feet of ground floor retail and 23K square feet of upper floor office space. Parking: 1 level of subterranean on Site A; at-grade parking on Site B. Tenants: Coffee house (Site B), one or two unique full-service restaurants (note Beachwood/Alibi Room/The Brig/The Del examples) on Site A, and quality retailers. Other: Gold or Platinum LEED Certification. Partial Green (Sedum) Roofs with Solar roof panels. Crimson Holdings Goal: Motivated by the Place Vendome in Paris, the Piazza de Popolo in Rome and St. Peters at the Vatican, their contemporary design deploys green building principles and landmark status architecture whereby its male/female components compliment the two opposing corners. (The rotunda was inspired by the Museum of Television and Radio in Beverly Hills) Project: Culver Green; a Crown Jewel: 43’ high, (with 56’ high rotunda on Site A), a multi-commercial use comprised of 106K square feet of upper floor office condominiums and 55K square feet of ground floor retail. Parking: 2.5 levels of subterranean, with 30 additional in excess of Code required Tenants: Ground floor coffee house, restaurant and retailers with two upper floor technology and financial firms. Other: LEED certified, with a large green roof (30K s.f.) on Site A. Second Street Ventures Goal: A contemporary pedestrian-oriented project. Project: Mixed Use with 40 dwellings units per acre. A 3-story, 35’ high building with 20K square feet of ground floor retail/restaurant/office and 64 one, one+den, and two-bedroom upper floor condominiums or apartments. A 10’ setback is included on the upper two floors. Parking: One level of subterranean parking for tenants; and at-grade parking for customers and visitors that meets Code requirements. Tenants: Restaurant, coffee shop, and other retailers. Rethink in cooperation with Trans- western Goal: A contemporary design that deploys green building and landmark status architecture with contemporary clean lines, polar canopies that protect rays from the south facing sun and large expanses of operating windows, with solar glazing for natural heating and cooling. Project: A village atmosphere with internal and external courtyards equipped with water features. 43’ high, 3-story Mixed-Use with 55 condominiums, 3 townhomes, 10 live/work units with 8K square feet of retail. Each residential unit is 800 square feet up to 1,200 square feet (1, 2, and 3 bedroom units). Parking: At-grade and tuck under that meets Code requirements. Tenants: Coffee shop, small restaurant, retailers and live-work businesses. Other: Silver LEED Certification. City of Culver City, California Redevelopment Agency Agenda Item Report DISCUSSION: Washinela L.P. is 50% owned by David Paris and 50% owned by David Reiss. In combination, the two partners have several years of experience with similar projects both separately and as a team (see attached list of developer experience). Their experience includes creation of unique and popular restaurants and night clubs such as The Alibi Room, The Del, The Brig, and Beechwood. David Paris also has experience with office, hotel, shopping center, and housing development projects, in addition to offering developer financing and property management services to his clients. Washinela L.P. has hired Dex Design Studio as their architect for the Sites and has employed them for a number of their other retail and restaurant projects, including Beechwood and The Alibi Room. (See attached examples of Dex Design Studio work). Staff recommends Washinela L.P. be selected as the developer for the Sites for the following reasons: • Staff believes the neighborhood will welcome their proposed project since it is low in height and density, and will contain desirable neighborhood-serving businesses, including a coffee house and one or two unique restaurants that offer outdoor dining. • In addition to the five townhomes along Colonial Avenue that will create a transitional buffer between the adjacent single family homes and the project on Site A, the location of the at-grade parking areas on both corners creates a set back to the buildings footprint. These setbacks will act as a buffer to adjacent residential uses. • The project will be LEED Gold or Platinum certified, and will promote green building principles, including a “green” roof and pervious paving. • Their project includes upper floor plazas, dramatic public art elements along with large, opposing corner plazas designed for outdoor dining and as public open space. • The Developer has a history of creating unique, high-quality restaurants that attract desirable retailers and coffee houses who want to be near them. • The Developer has prior experience in partnering with cities and agencies on large scale projects. • The Development Team has a good track record of implementing successful redevelopment projects. • Staff believes their proposed project will become the catalyst that stimulates private redevelopment activities in the area. • Dramatic evening lighting will highlight the project roofline and landscaped plazas. City of Culver City, California Redevelopment Agency Agenda Item Report Staff and Advisory Committee on Redevelopment Recommendations In preparation of presenting their conceptual designs for the Sites this evening, staff has worked with Washinela L.P. to refine and enhance their original version. To aid in this effort, staff presented the four developer finalists proposals to the Advisory Committee on Redevelopment (“ACOR”) during their meeting of December 6, 2007. (For a detailed list of the ACOR recommendations, see their draft meeting minutes attached.) Upon conclusion of the presentation, focus was directed on how to enhance Washinela L.P.’s design. Together, staff and the ACOR committee members outlined a number of desirable features, many of which have or will be incorporated into the building’s design to create a more pedestrian-oriented commercial center. A few of the changes to their initial design include: • Increasing the size and public space access to the two corner plazas • Use of patterned pavement • Pitching the roofline higher to increase its dramatic affect • Additional landscaping features. Next Steps: Design Refinement: Since the plans are conceptual at this stage, if the Agency approves selection of Washinela L.P. this evening, staff will continue working with the developer, Project Review Committee, the West Washington Subcommittee, and the neighborhood to enhance and refine the plans prior to Planning Commission submittal for entitlements. Neighborhood Meeting: Staff will also commence negotiation of a Disposition and Development Agreement (“DDA”) with Washinela L.P. containing all the terms and conditions for the sale and subsequent development of the project. If those negotiations are successful and both parties agree to those terms and conditions, then a neighborhood meeting will be scheduled to present the proposed project to the community for review. Relocation and Demolition: During their meeting of September 18, 2006 the Agency approved a multi-phased agreement with Viking Equipment Corporation for demolition of both Sites’ City of Culver City, California Redevelopment Agency Agenda Item Report improvements. Subsequently, most of the improvements at the two Sites have been demolished. Staff is in the process of relocating the last remaining tenant of Site A and once completed, the last phase of demolition activities will be performed to remove the remaining improvements on Site A. FISCAL ANALYSIS: Washinela L.P. is offering $8,500,000 for the land that comprises the Sites. In addition to the land sale proceeds, future revenue to the Agency through incremental property tax revenue generated from the two Sites are estimated at $57,500 in the first year, which are anticipated to grow at a minimum of 2% per year thereafter. Revenues to the City’s General Fund are harder to predict at this early stage, but sales tax, business gross receipts tax, and utility user’s taxes are estimated to be $63,000 for the first year. ATTACHMENTS: • Washinela L.P.: Conceptual Plans for the Project • Washinela L.P.: List of Developer Experience • Dex Design Studio: Samples of Architectural Work • December 6, 2007: Draft Advisory Committee on Redevelopment Minutes MOTION: That the Culver City Redevelopment Agency: 1. Select Washinela L.P. as developer for the northwest and northeast corners of Washington Boulevard and Centinela Avenue; 2. Reject all other developer proposals; 3. Authorize the Executive Director to commence negotiating a Disposition and Development Agreement with Washinela L.P. MEETING DATE: 01/07/08 AGENDA ITEM: Consideration to Select Washinela L.P. as Developer for the Washington/Centinela Redevelopment Project; Authorization to Commence Negotiation of a Disposition and Development Agreement with them, and Rejection of All Other Proposals. ATTACHMENTS Pages 1 Washinela L.P.: Conceptual Plans for the Project December 10, 2007: 1-5 2 Washinela L.P.: List of Developer Experience 6 3 Dex Design Studio: Samples of Architectural Work 7-11 4 December 6, 2007: Draft Advisory Committee on Redevelopment Minutes 12-14 DN DN DN 10,230 SF OFFICE 950 SF OFFICE 7,220 SF OFFICE SEDUM ROOF PLANTER AREA WASHINGTON-CENTINELA PROJECT SECOND LEVEL PLAN 1/4" = 10'-0" REISS-PARIS JOINT VENTURE WASHINGTON BLVD CENTINELA AVE COLONIAL AVE 1657 OFFICE OR MEZZ 3,800SF OFFICE 1,274SF OFFICE LINE OF 1ST FLOOR BELOW SEDUM ROOF UPPER PLAZA LINE OF ROOF OVERHANG HANGING ART PIECE FROM OVERHANG HIGH ABOVE PROPERTY LINE HANGING ART PIECE FROM OVERHANG HIGH ABOVE LINE OF OVERHANG BELOW LINE OF ROOF OVERHANG ABOVE2,890SF RETAIL 11,257 SF RETAIL 5,330 SF RESIDENTIAL 8,308SF RETAIL WASHINGTON BLVD CENTINELA AVE COLONIAL AVE GREEN WALL WASHINGTON-CENTINELA PROJECT GROUND LEVEL PLAN 1/4" = 10'-0" REISS-PARIS JOINT VENTURE PERMEABLE PAVING ALLEY WASHINGTON BLVD PROPERTY LINE WASHINGTON BLVD GREEN WALL OVER STORM WATER RETENTION SYSTEM GREEN WALL PROPERTY LINE ALLEY 3,030SF RETAIL HANGING ART PIECE FROM OVERHANG HIGH ABOVE RAMP TO UNDERGROUND PARKING PROPERTY LINE LINE OF ROOF OVERHANG ABOVE BENCH SEATING BENCH SEATING LINE OF 2ND FLOOR ABOVE ELEVATOR AND STAIR ACCESS ALL FLOORS LINE OF ROOF OVERHANG LINES OF STORE SHADES HANGING ART PIECE FROM OVERHANG HIGH ABOVE LINE OF ROOF OVERHANG ABOVE LINE OF ROOF OVERHANG ABOVE LINE OF ROOF OVERHANGWASHINGTON-CENTINELA PROJECT REISS-PARIS JOINT VENTURE RENDERING SITE B SHEET METAL ROOF OVERHANG GLASS WINDOW WALL WITH BRONZE ALUMINUM MULLIONS SMOOTH TROWELLED PLASTER GLASS WINDOW WALL WITH BRONZE ALUMINUM MULLIONS PAINTED STEEL STORE SHADES BENCH SEATINGWASHINGTON-CENTINELA PROJECT REISS-PARIS JOINT VENTURE RENDERING SITE A SHEET METAL ROOF OVERHANG BRONZE ALUMINUM AND GLASS MULLIONS SMOOTH TROWELLED PLASTER BENCH SEATING GLASS WINDOW WALL WITH BRONZE ALUMINUM MULLINSWASHINGTON-CENTINELA PROJECT BASEMENT LEVEL PLAN 1/4" = 10'-0" REISS-PARIS JOINT VENTURE RAMP TO ABOVE STAIR AND ELEVATOR TO PLAZA ABOVEReiss-Paris Joint Venture Development Experience 12/11/2007 Product Development Type Size Skills Employed Reiss-Paris Joint Venture Projects Alibi Room, Culver City Restaurant/Bar 1,600 SF Building purchase, major exterior and interior remodel Beechwood Restaurant, Venice Restaurant/Bar 4,900 SF Leasehold, major exterior and interior remodel The Del, Playa del Rey Restaurant/Bar 8,500 SF Leasehold, major exterior and interior remodel The Brig, Venice Bar 2,500 SF Building purchase, change of use, major construction, exterior and interior remodel Dave Reiss Projects Sugar, Santa Monica Nightlclub 4,500 SF Leasehold, major exterior and interior remodel Red, Los Angeles Restaurant/Bar 4,250 SF Leasehold, exterior and interior remodel Red, Santa Monica Restaurant/Bar 4,000 SF Leasehold, exterior and interior remodel The Olive, Los Angeles Restaurant/Bar 2,000 SF Leasehold, exterior and interior remodel Paris West Co. Projects 520 Sepulveda, Westwood Office Building 20,000 SF Building purchase, exterior and interior remodel, mgmt & leasing Stone Oak Park, Brentwood For Sale Housing 32,000 SF Land acquisition, ground-up design, construction and sale Olympic Bundy Ctr, West LA Office/Retail 55,000 SF Building purchase, mgmt., leasing, sale Central Plaza, Carson Shopping Center 15,000 SF Building purchase, mgmt, leasing, sale 6th St. Prop., Downtown LA Office Buildings 100,000 SF Management, leasing & sale Standard Oil Bld, Downtown LA Office Building 85,000 SF Management & leasing Robertson Bld, Beverly Hills Office/Retail 30,000 SF Building purchase and sale Western Av. Bld., Gardena Office/Retail 5,000 SF Building purchase, mgmt, remodel and sale Piuma Parcel, Malibu Vacant Land 5 acres Land acquisition and sale Carl's Jr., Auburn Restaurant 3,500 SF Building purchase and sale Omni Hotel, Downtown LA Hotel 300 rooms Financing, development management pursuant to DEV. AGREEMENT WITH CRA/LA Commerce Place, Baltimore, MD Office Building 300,000 SF Financing The Breakers, Long Beach Senior Housing 200 rooms Financing The Carlisle, San Francisco Senior Housing 125 rooms Financing Ramada Disneyland, Anaheim Hotel 300 rooms Financing Paris Family Business (Paris Development) in Ohio Beta Business Park, Mayfield Office park/ 200 acres Land development pursuant to DEV. AGREEMENT WITH CITY Office Bldng 50,000 SF ground-up building design, construction, mgmt, leasing & sale Resource Drive, Valley View Office park/ 150 acres Land development pursuant to DEV. AGREEMENT WITH CITY Office Bldng 40,000 SF ground-up building design, construction, mgmt, leasing & sale Brooklyn Airport, Brooklyn Office/Retail Park 100 acres Land development pursuant to DEV. AGREEMENT WITH CITY Stonewater Golf, Highland Golf Residential 300 acres Ground-up land development, golf course development, lot sales pursuant to DEV. AGREEMENT WITH CITY Jennings Park, Cleveland Office park/ 75 acres Land development pursuant to INDUSTRIAL REVENUE BOND SALE BY CITY Office Bldng 200,000 SF ground-up building design, construction, mgmt, leasing & saleDex Design Studio Architect Experience Mesa Restaurant/Lounge Goodfood Kitchen: Smashbox Studios The Alibi Room Ginger Showroom Beechwood Restaurant Pink Mascara ADVISORY COMMITTEE ON REDEVELOPMENT MEETING MINUTES December 6, 2007 Call to Order: The meeting of the Advisory Committee on Redevelopment was called to order at 6:40 p.m. in the Patio Room, third floor of City Hall, 9770 Culver Boulevard, Culver City, California. Roll Call: Roll call was taken: Members present: Paul Struhl John Derevlany Pierre Joujon-Roche Stephen Paddock Scott M. Voelz Members with Excused absence: Joel Forman Arthur Garcia Amy Rosenstein Vernon Taylor, Jr. Staff: Joe Susca, Project Manager Alice Prasad, Associate Analyst Project Manager’s Report: Approval of Minutes: It was moved (Mr. Joujon-Roche) and seconded (Mr. Derevlany) and passed by a vote of 5-0 (Forman, Garcia, Rosentein and Taylor absent) to receive and file the Project Manager’s report of the posting of the agenda for the meeting. It was moved (Mr. Voelz) seconded (Mr. Paddock) and passed by a vote of 5-0 (Forman, Garcia, Rosentein and Taylor absent) to approve the Minutes of the meeting of November 1, 2007. Audience Participation: Mr. Struhl announced that members of the audience who desired to participate would be recognized at the time the agenda item is called. An additional opportunity for audience participation on non-agenda items will also be provided. Dr. L. Henderson arrived during the presentation of the Proposed Washington/Centinela site as an audience member. Minutes of Advisory Committee On Redevelopment December 6, 2007 Page 2 of 3 Review of Designs Proposed for the Washington/ Centinela Site Mr. Susca provided a presentation of the four competing developers for the Washington/Centinela project, providing pictures and maps of each. He answered questions in detail for each of them, explained the history surrounding their submittals and focused on why staff was recommending David Paris and David Reiss as the recommended developer. The Committee then focused on staffs recommended developer and made the following recommendations and comments to their conceptual plans: Angle the pitched roof more and allow it to be even higher than the rest of the building to create a more dramatic impact to better define the two corners. No roof design is included in the conceptual plan submittal. If a green roof is to be built, how much of the roof area will it cover? If solar is proposed, how much of the roof will be covered with those panels as well? Consider creation of a low-height hedge or other type of landscaping that will provide a buffer for outdoor diners to the adjacent traffic. The low-height hedge would obstruct views of the street by diners who are sitting, but not be so high as to prevent those standing up from seeing over it. ACOR concurred with staffs recommendation that the two opposing plaza’s on the corners should be larger and not dedicated solely to outdoor dining, but should include open space for pedestrian use. Will valet parking be provided for the restaurant? If so, how will it operate? Installation of additional planter areas along the sidewalk and retail entryways creating a “green walkway” would be nice. Concern has been raised regarding exiting onto Colonial Avenue. There may be an insufficient amount of room between the driveway and the Washington Boulevard/Colonial Avenue intersection to safely do so. This should be evaluated by a traffic engineer. How will late night noise stemming from the restaurant be controlled? The proposed stairway could be a safety issue if not well lit If excess parking spaces are created for the area, the City/Agency should consider metering them and perhaps enter into a revenue sharing agreement with the developer to encourage their creation. Minutes of Advisory Committee On Redevelopment December 6, 2007 Page 3 of 3 Upon conclusion of the discussion, Joe Susca announced that the developer will be recommended for selection at the Agency’s upcoming January 7, 2008 meeting. Adjournment It was moved (Mr. Joujon-Roche) seconded (Mr. Struhl) and passed unanimously to adjourn the meeting at 8:02 p.m., to the next regularly scheduled meeting on January 3, 2008, at 6:30 p.m. in the Patio Room, third floor, City Hall. John Fisanotti, Redevelopment Project Manager