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CC- CONSENT ITEM: (1) Adoption of a Resolution Declaring City-Owned Property at 10401 Virginia Avenue (APNs 4209-027-905, 4209-029-900, 4209-029-923, 4209-029-924 & 4209-029-925) as Exempt Surplus Land Pursuant to Government Code Section 54221(f)(1)(F); and (2) Approval of an Exclusive Negotiating Agreement with Actors Fund Housing Development Corporation to Negotiate the Lease of City-Owned Property at 10401 Virginia Avenue (APNs 4209-027-905, 4209-029-900, 4209-029-923, 4209-029-924 & 4209-029-925) for the Construction of a Mixed-Use Affordable Housing Project.
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Meeting Date: March 17, 2025
Contact Person/Dept: Mark Muenzer, Planning & Development Director
Christina Burrows, Assistant City Attorney
Phone Number: (310) 253-5710
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (03/12/2025)
Department Approval: Mark Muenzer, Planning & Development Director (2/27/2025); Heather Baker, City Attorney (03/03/2025)
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RECOMMENDATION
That the City Council (1) adopt a resolution declaring the City-owned property at 10401 Virginia Avenue (APNs 4209-027-905, 4209-029-900, 4209-029-923, 4209-029-924 & 4209-029-925) as Exempt Surplus Land pursuant to Government Code Section 54221(f)(1)(F); and (2) approve an Exclusive Negotiating Agreement with Actors Fund Housing Development Corporation to negotiate the lease of the City-owned property at 10401 Virginia Avenue (APNs 4209-027-905, 4209-029-900, 4209-029-923, 4209-029-924 & 4209-029-925) for the construction of a mixed-use affordable housing project.
BACKGROUND
The City-owned property at 10401 Virginia Avenue (the “Property”) has historically been used as a parking lot to satisfy a redevelopment-era contractual obligation to provide parking for adjacent businesses. In 2023 the City opened the Wellness Village interim housing site on a portion of the Property, with the remaining portion of the Property continuing to be used as a parking lot for adjacent businesses.
On December 6, 2023 the Actors Fund Housing Development Corporation (“AFHDC”) submitted a request for an Exclusive Negotiating Agreement (“ENA”) to negotiate a lease of the Property for development of a mixed-use, multi-story building with affordable housing for families and artists on the upper floors, along with ground floor arts-focused community commercial space (the “Project”).
In 2024, the AFHDC developed and opened a 151-unit all-affordable residential building in Hollywood (City of Los Angeles) that provides affordable housing units for arts and entertainment professionals. It is envisioned that a Culver City housing development would offer similar types of affordable housing.
DISCUSSION
Exclusive Negotiating Agreement
City staff and AFHDC have negotiated a Draft ENA (Attachment 1) which establishes the terms under which the Parties will endeavor to negotiate a lease for the Property. The lease would be for 99 years at a rent of $1.00 per year. The ENA prohibits the City from negotiating with any party other than AFHDC for the disposition of the Property during the term of the ENA.
The Parties will use the negotiating period to conduct due diligence on the proposed lease and the Project feasibility. The negotiation period will end on the earlier of (1) the date the Parties enter into a lease or (2) one year from the start of negotiations. If the negotiations are successful, staff will bring the lease to the City Council for consideration.
Exemption from Surplus Land Act
Pursuant to California Government Code Section 54220 et seq. (the “Surplus Land Act”), the City Council must declare the Property to be “Surplus Land” or “Exempt Surplus Land” before the City Council may take action on the ENA. The Property qualifies as Exempt Surplus Land pursuant to Government Code Section 54221(f)(1)(F) because the Property is proposed to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income. The California Department of Housing and Community Development (“HCD”) has reviewed the Draft ENA and has approved the Draft Surplus Land Act Resolution (Attachment 2).
Conceptual Project
The Project is currently proposed as a 6-story, 77-unit all-affordable housing development, with a mix of one, two and three-bedroom units, all of which would be affordable to lower income households earning between 30% and 80% of the area median income. It would contain an artist-focused community space on the ground floor, as well as community gardens and open space that is publicly accessible to Ballona Creek, as well as a private roof top deck. Parking is proposed on the ground floor as a mix of standard and tandem parking spaces. AFHDC’s conceptual project plans are in Attachment 3.
The City would need to either close or move Wellness Village before construction were to begin on the Project. The timing of the closure or movement of the Wellness Village could be discussed with AFHDC during lease negotiations and memorialized in the lease.
FISCAL ANALYSIS
Declaring the Property to be Exempt Surplus Land and entering into the ENA do not have any fiscal impacts. Entering into a lease for the Property may have fiscal impacts that will be explored during the term of the ENA.
ATTACHMENTS
1. Exclusive Negotiating Agreement with AFHDC
2. Resolution Declaring the Property to be Exempt Surplus Land
3. Conceptual Project Plans
MOTION
That the City Council:
1. Adopt a resolution declaring the City-owned property at 10401 Virginia Avenue (APNs 4209-027-905, 4209-029-900, 4209-029-923, 4209-029-924 & 4209-029-925) as Exempt Surplus Land pursuant to Government Code section 54221(f)(1)(F);
2. Approve an Exclusive Negotiating Agreement with Actors Fund Housing Development Corporation to negotiate the lease of the City-owned property at 10401 Virginia Avenue (APNs 4209-027-905, 4209-029-900, 4209-029-923, 4209-029-924 & 4209-029-925) for the construction of a mixed-use affordable housing project;
3. Authorize the City Attorney to review/prepare the necessary documents; and
4. Authorize the City Manager to execute such documents on behalf of the City.