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CC - PUBLIC HEARING - Adoption of a Resolution Establishing a Community Benefits District and Approving a Community Benefit for the Proposed Axis-Mundi RE II, LLC Mixed-Use Development Project at 12803-12823 Washington Boulevard.
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Contact Person/Dept: Glenn Heald / CDD
Todd Tipton / CDD
Phone Number: (310) 253-5752
(310) 253-5783
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [X] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: Public Notification: (E-Mail) Meetings and Agendas - City Council (12/10/15); Residents, Property Owners and Business within 1,000 feet of proposed project boundary (11/25/15); Community Meeting held (11/04/15).
Department Approval: Sol Blumenfeld, Director of Community Development
(11/25/15)
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RECOMMENDATION
Staff recommends the City Council conduct a public hearing and, after considering public comment, adopt a resolution establishing a Community Benefits District and approving a Community Benefit for the proposed Axis-Mundi RE II, LLC, Mixed Use project (Project) at 12803-12823 Washington Boulevard (Site).
PROCEDURE:
1. The Mayor calls on staff for a brief staff report.
2. The Mayor seeks a motion from the City Council to open the public hearing.
3. The City Council receives comment from the public.
4. The Mayor seeks a motion from the City Council to close the public hearing after all public comments have been received.
5. The City Council discusses the matter and arrives at its decision.
BACKGROUND / DISCUSSION:
On February 7, 2008, the former Culver City Redevelopment Agency (Former CCRA) entered into a Disposition and Development Agreement (DDA) with Axis Mundi RE II, LLC (Developer) for the development and construction of a high quality project at the Site. Project commencement has been delayed due to the economic downturn in late 2007 and the State’s dissolution of redevelopment agencies in February 2012.
On March 10, 2008, the City Council adopted Resolution 2008-R015 (Attachment 1) to establish a Community Benefit Incentive Program in connection with Section 17.400.065 of the Zoning Code - Mixed Use Development Standards. This Section of the Culver City Municipal Code (CCMC) allows mixed use development on certain commercially zoned property at a base residential density of 35 dwelling units per acre (du/a), but allows the density to increase to 50 du/a, and up to 65 du/a in a Transit Oriented Development Zone, provided the project incorporates community benefits as established by the City Council.
A community benefit is defined as a project mitigation that achieves a particular community goal and is maintained for the life of the project to which it is associated. The list of community benefits outlined in Resolution 2008-R015 includes, but is not limited to, the following:
A. Streetscape Improvements as part of an Area Improvement Plan (AIP).
B. Pocket Parks and Public Open Space (minimum 5,000 sq. ft.) in addition to park space otherwise required by the CCMC.
C. Metered On-Site Public Parking-in excess of code required project parking (Minimum 10 public parking spaces and applies only to project sites of 20,000 sq. ft. or greater).
D. Utility Undergrounding as part of an Undergrounding District Plan.
E. Other Community Benefits as approved by City Council.
The boundaries for a project’s Community Benefit District (District) are established by the City Council through adoption of a resolution. The boundaries of the proposed District, if approved, will be those of the proposed Project, bounded by Washington Boulevard to the south, Meier Street to the east, Moore Street to the west and the alley north of and running parallel to Washington Boulevard. The boundaries of the proposed District may be expanded by the City Council if deemed necessary.
Axis-Mundi RE II, LLC has submitted a preliminary application to develop a mixed use project on the 24,082 square foot property at the Site consisting of approximately 7,100 square feet of ground floor retail space and 27 residential units. The Developer proposes to increase the Project’s density from the base 35 du/a (19 units) to 50 du/a (27 units), an increase of 8 units. In exchange for the increased density, the Developer’s proposed community benefit is the construction of 21 ground level metered public parking spaces in addition to the full complement of Code-required parking for the proposed Project.
The City Council continues to consider various affordable housing programs that may be used in combination with State Density Bonus Law (SB 1818) and, in the event that the City Council ultimately approves such a program, the Developer indicates it may pursue 12 additional units through that program, which could result in a total of 39 dwelling units in the Project. The additional 12 units may only be considered in conjunction with the proposed City affordable housing program, if such program is ultimately established.
On November 4, 2015, a community meeting was held to discuss the Community Benefit Incentive Program and garner informal recommendations as to what benefits may be beneficial to the area surrounding the proposed Project. Approximately 1,000 notices were mailed to residences, businesses, and property owners within a 1,000 foot radius of the Site. The meeting was attended by 24 persons, some of whom are residents of Los Angeles (the Site borders the Culver City / Los Angeles city boundary).
During the public meeting, City staff summarized for the audience the community benefits process and outlined the Developer’s proposed community benefit of public parking. The attendees discussed with City staff and the Developer’s representative the various benefits of the proposed community benefit and the potential public benefit of the other available options. Some attendees expressed reservations related to any increase in density resulting from the proposed Project, but the majority of attendees expressed the opinion that the benefit to the area afforded by the inclusion of additional public parking outweighs any additional potential impact resulting from the proposed Project.
The option of streetscape improvements was seen by the majority of attendees as less beneficial than public parking due to the recent completion of median improvements in the area of the proposed Project, though two attendees opined that further streetscape improvements in the form of sidewalk reconstruction or a crosswalk immediately fronting the proposed Project would be their preferred community benefit option.
The option of creating public open space was viewed as impractical by the majority of attendees due to the relatively small size of the proposed Project. One attendee selected public open space as their preferred community benefit for the proposed Project.
A tally of attendees at the conclusion of the public meeting indicated that a majority supports the inclusion of metered public parking as the community benefit for the proposed Project. Correspondence received after the public meeting includes three written responses suggesting different or additional community benefits be offered to or required of the Developer, one written response favoring the Project and the proposed community benefit, and one written response opposing the Project in any form.
Summary
Many of Culver City’s commercial areas were developed long ago with less parking than the CCMC requires today. As a result, many older commercial buildings have inadequate parking available for employees and patrons. The lack of available on site parking creates potential impacts on surrounding residential and commercial neighborhoods which the proposed Community Benefit would address. If the 21 ground level metered public parking spaces are approved as a Community Benefit, the capital costs and all related maintenance will be absorbed by the Developer.
FISCAL ANALYSIS:
The Mixed Use Development Standards require a community benefit to equal 50% of the Developer’s profit realized from the additional units permitted beyond the base density through the community benefit program (the Community Benefit Value). The proposed 21 metered ground level public parking spaces are estimated to cost at least $307,731. The City’s financial analysis of the Community Benefit Value is $307,731 based upon the formula in the approved Community Benefit Resolution (Attachment No. 1).
ATTACHMENTS:
1. Resolution 2008-R015: Community Benefit Incentive Program.
2. Proposed Benefit Area Boundary.
3. Proposed Community Benefit Resolution.
4. Notes.
RECOMMENDED MOTION(S):
That the City Council:
Adopt a resolution establishing a Community Benefits District and approving a Community Benefit for the Axis-Mundi RE II, LLC project located at 12803-12823 Washington Boulevard.