City of Culver City, California
Redevelopment Agency Agenda Item Report
Page 1 of 3
RECOMMENDATION:
Staff recommends the Culver City Redevelopment Agency (“The Agency”) authorize
execution of an agreement with Uptown Lofts LLC to reduce the height, density and
massing of the proposed project at 9900 Culver Boulevard.
BACKGROUND:
On March 6, 2006, the Agency authorized issuance of a Request for Proposal
(“RFP”) to develop a mixed use project on the Agency owned property at 9900
Culver Boulevard. Of the numerous responses received, Uptown Lofts LLC was
selected due to the aesthetic appeal of the architecture and the pedestrian oriented
retail tenants being proposed.
On June 19, 2006, the Agency sold the property to Uptown Lofts LLC for $2.5 million
with a requirement that they obtain entitlements from the City of Culver City for a
mixed-use development project.
On April 25, 2007, the Planning Commission considered and disapproved the project
that consisted of 23 residential units, 5 stories, surface level retail parking,
subterranean residential parking, and 4,750 square feet of ground floor retail.
On April 30, 2007, Uptown Lofts LLC appealed the Planning Commission’s decision
to the City Council.
On July 9, 2007, the City Council considered the appeal of the Planning
Commission’s denial and continued the discussion to July 23, 2007, pending
requested additional information and suggested that the applicant consider design
Meeting Date: 11/05/07 Item Number: A-2
AGENDA ITEM: Authorization to Execute an Agreement with Uptown Lofts LLC to
Reduce the Height, Density and Massing of the Proposed Project at 9900 Culver
Boulevard.
Contact Person/Dept.: Todd Tipton Phone Number: (310) 253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: []
Public Notification: Chamber of Commerce and the Downtown Business Association,
Master Notification List (10/31/07).
Department Approval:
Sol Blumenfeld (10/11/07)
Executive Director Approval:
Jerry B. Fulwood (10/31/07)
Fiscal Impact Approval:
Marlee Chang (by N. Kimball)(10/25/07)
City of Culver City, California
Redevelopment Agency Agenda Item Report
Page 2 of 3
changes to address Council and neighborhood concerns related to the building’s
height, density and massing.
On July 23,
2007, the City Council again continued the item so the applicant could
meet with Agency staff to discuss how the building’s height, massing and density
could be reduced to address the community’s concerns. The City Council
discussion was continued until September 17, 2007.
Following the July 23 meeting, Agency staff met numerous times with
representatives from Uptown Lofts LLC to discuss possible revisions to the proposed
project. In the end, both parties agreed that the neighborhood’s concerns would be
addressed if a floor of the development were removed (resulting in five dwelling units
being eliminated).
On September 17, 2007, the City Council voted to grant the appeal and allow a
project consisting of a 46-foot tall (four story) building with 18 units and 5,000 square
feet of pedestrian-oriented retail. The project also included additional parking in
excess of that required by the Culver City Municipal Code.
On October 15, 2007, the City Council approved the General Plan and Zoning Map
Amendments, the Tentative Tract Map, and the project resolution outlining the
necessary findings and conditions of approval.
DISCUSSION:
The tentative resolutions reached between Uptown Lofts LLC and the Agency to
reduce the height, massing and density of the project by removing a floor will be
memorialized in an agreement between the two parties. The agreement will ensure
that Uptown Lofts LLC constructs the project in accordance with Council approved
entitlements; ensure the approved project is constructed in a timely manner; and
among other things, ensure that the retail component will be occupied by pedestrian-
oriented uses.
FISCAL ANALYSIS:
When developing mixed-use projects, the sale of the residential units provides
revenues needed to satisfy commercial lending institution and private investment
requirements, and generate profit. The removal of a floor from the project caused
five dwelling units to be eliminated.
To determine the fiscal impact resulting from this change in the project, staff
consulted Keyser Marston Associates (KMA), its financial consultant. In a simplified City of Culver City, California
Redevelopment Agency Agenda Item Report
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form, the analysis identified the amount of revenue generated from the revised
project would differ from the project originally proposed.
In summary, if each unit were to sell between $750,000 and $1 million, then the
amount of estimated profit per unit would be between $112,500 and $150,000. With
five dwelling units being eliminated, the resulting loss in profit is between $562,500
and $750,000. Through extensive negotiation, both parties agreed to resolve the
various issues related to this project for $550,000. There are currently sufficient
funds available in unrestricted tax increment (550) fund balance for the proposed
$550,000 agreement
It is estimated the revised project (with reduced height, massing and density, and
additional commercial square footage) will increase the City tax revenue projections
(i.e. Sales, Business, Utility, and Property Taxes) from $14,000 per year to $15,200
per year and decrease the Agency tax increment projection from $156,000 per year
to $132,000 per year.
NOTE: The tax revenue projections in this fiscal impact represent estimated full
year receipts in current dollars (2007$). The City and Agency will begin collecting
tax revenues related to this project upon completion of construction, sale of all
residential units, and update of the County tax rolls. Preliminary estimates provided
by the developer indicate that the project will be completed by June 2009; therefore,
actual tax revenues would be collected beginning in fiscal year 2009-10 and will
need to be adjusted based on inflation.
ATTACHMENTS:
None.
MOTION:
That the Culver City Redevelopment Agency
1. Approve an agreement with Uptown Lofts LLC to reduce the height, density
and massing of the proposed project at 9900 Culver Boulevard;
2. Authorize the Agency General Counsel to prepare/review the appropriate
documents and authorize the Executive Director to execute those documents
on behalf of the Agency
3. Approve an amendment to the Redevelopment Agency budget to create a
project number for the 9900 Culver Boulevard project and authorize the
expenditure of $550,000 from the unrestricted tax increment fund 550.