MEETING DATE: 10/04/10
AGENDA ITEM: REDEVELOPMENT AGENCY BOARD AGENDA ITEM:
Consideration of Proposed Alternatives for the
Development of 9300 Culver Boulevard and the
Adjacent Town Plaza Expansion.
ATTACHMENTS
Item Description Pages
1
2
3
4
5
6
7
8
Parcel B Conceptual Plans
Parcel B Matrix of Short, Mid, and Long Range
Uses
April 26, 2010 Letter from the Downtown
Business Association
Examples of Tensile Structures
Market Hall Conceptual Plan and
Washington-Centinela Market Hall Conceptual
Plan
Via Rodeo Photographs
The Culver Studios Shared Parking Plan
Enhanced Landscaped Screen Conceptual
Plan
1-2
3
4-5
6-7
8
9
10
11
Parcel B Conceptual Plans
ATTACHMENT 1
Page 1 of 11Parcel B Conceptual Plans
ATTACHMENT 1
Page 2 of 11ATTACHMENT 2
Page 3 of 11April 26, 2010 Letter from the Downtown Business Association
ATTACHMENT 3
Page 4 of 11April 26, 2010 Letter from the Downtown Business Association
ATTACHMENT 3
Page 5 of 11Examples of Tensile Structures
ATTACHMENT 4
Page 6 of 11Examples of Tensile Structures
ATTACHMENT 4
Page 7 of 11Market Hall Conceptual Plan
Washington-Centinela Market Hall Conceptual Plan
ATTACHMENT 5
Page 8 of 11Via Rodeo Photographs
ATTACHMENT 6
Page 9 of 11The Culver Studios Shared Parking Plan
ATTACHMENT 7
Page 10 of 11Enhanced Landscaped Screen Conceptual Plan
ATTACHMENT 8
Page 11 of 11
City of Culver City, California
Agenda Item Report
1
Meeting Date: 10/04/2010 Item Number: A-1
REDEVELOPMENT AGENCY BOARD AGENDA ITEM: Consideration of Proposed
Alternatives for the Development of 9300 Culver Boulevard (Parcel B) and the
Adjacent Town Plaza Expansion.
Contact Person/Dept.: Joe Susca,
Todd Tipton/Redevelopment
Phone Number: 310-253-5763/5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – Redevelopment Agency (09/29/10),
The Downtown Business Association (09/20/10), The Culver City Chamber of Commerce
(09/20/10). A public notice was mailed to businesses, residents, and property owners in
excess of a 500’ radius of the site (09/20/10).
Department Approval:
Sol Blumenfeld (09/28/10)
Agency General Counsel Approval:
Murray Kane (09/27/10)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (09/29/10)
Executive Director Approval:
John M. Nachbar (09/29/10)
RECOMMENDATION:
Staff recommends the Culver City Redevelopment Agency Board (Agency Board)
provide direction regarding short, mid and long-range redevelopment alternatives for
9300 Culver Boulevard (Parcel B) and determine (1) whether to issue a Request for
Proposals (RFP) to qualified developers for site redevelopment and if so; (2) the
content of such RFP; and (3) whether to construct additional parking as part of the
redevelopment project; and (4) whether to construct Town Plaza improvements.
BACKGROUND:
On July 10, 2006 the Agency entered into a Disposition and Development
Agreement (DDA) to sell Parcel B for development of a new multi-use office and
retail project (Project) known as the Culver Studios Plaza. The Project is entitled
for construction of a 3-story commercial building comprised of 118,000 square feet
of ground floor retail and restaurant uses and upper floor offices, one subterranean
level with 84 parking spaces, and three storage rooms. The Project’s building
permits are approved. On December 14, 2009 the Agency Board terminated its
agreement with the developer of the Project based upon their failure to perform
under the DDA’s terms and conditions.
The DDA included the Agency’s plans for expansion of Town Plaza as a new venue
for downtown art, music, and performance activities. The first phase of the Town
Plaza Expansion project, the realignment of Washington Boulevard, has been City of Culver City, California
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completed at a cost of $2.3 million. The design and construction documents for the
second phase construction of the expansion area are complete and are ready to bid.
The architectural design and plan fees cost $400,000 and $2.8 million have been
budgeted to construct the expansion. The total project cost is $5.1 million.
DISCUSSION:
The Agency’s financial consultant, Keyser Marsten Associates (KMA) believes that
because of current economic conditions (current high vacancy rates and contraction
of retail activity) redevelopment of Parcel B is more than two years away. Few office
and retail projects are currently being developed. Consequently, the Agency Board
has directed staff to examine development alternatives for the site. Staff has studied
several development options that relate to the original Project entitlements and
environmental review (i.e. consistent in size, building volume, and building height
and development program) or that require changes to the entitlements. The options
have been organized under “short-range,” “mid-range,” and “long-range”
implementation timeframes. The short and mid-range alternatives are interim uses
that may be implemented quickly without major improvements to the property. The
long-range options involve permanent redevelopment.
The original Project was designed as a post-production office facility with an
entertainment-related major tenant and ground level retail (see Attachment No. 2).
Since the entertainment-related tenant is no longer involved in the Project, the
Agency Board may wish to consider a different development program, alternative
uses and tenants, and/or a new building configuration to accommodate different
needs. The following provides a list of use and development options for Agency
Board consideration. (see Attachment No. 2). Staff has also attached
correspondence from the Downtown Business Association (DBA) that outlines their
comments and suggestions in regard to Parcel B.
SHORT-RANGE OPTIONS:
The Agency Board may want to consider uses for Parcel B that can be immediately
implemented with minimal site improvements. These include special events and
temporary uses conducted in pre-fabricated, modular structures installed on the site
or without such temporary structures. The short-range uses can be programmed
over a one to two year period or until permanent redevelopment of Parcel B
commences. Parcel B can be programmed for special events and uses during the
pre-redevelopment period, using a master schedule for tracking use of the property.
With the exception of a public parking lot, the short range options can be carried out
by an event organizer selected through the RFP process. The Agency Board may
wish to consider the following short range options:
Alternative I: Large-Scale Performance/Entertainment/Public Event Uses City of Culver City, California
Agenda Item Report
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Estimated Cost: $50,000 - $65,000 for water, power, sidewalk paving,
enhanced landscaping and related infrastructure.
Estimated Revenue: Depends on type and frequency of events, but would have a
positive economic impact on downtown businesses and if
their duration is more than two hours, parking revenue will be
generated if the Agency Board decides to continue offering
free parking in the parking structures for the first two hours.
Timeframe: 6-9 months.
Implementation: Feasible with staff oversight to recruit and assist with overall
bookings, facilitation and marketing. Parcel B’s paved lot
makes the site attractive for large-scale performances or
events which may include major travelling performances
produced by outside performing arts organizations,
performing arts grantees and independent event producers.
Alternative II: Fashion / Apparel / Art / Architecture and Craft Tensile Structure
Estimated Cost: $1 million - $1.4 million for tensile structure design, fabrication
and installation with water, power, sidewalk paving and
enhanced landscaping.
Estimated Revenue: Depends on the frequency of use, number of vendors and type
of retail.
Timeframe: 9 months to fabricate and install a tensile structure and
complete the infrastructure improvements. The timeframe
would vary if construction of the tensile structure were not
necessary or if retail operators brought their own temporary
shade structures.
Implementation: Execution of a license and temporary use permits are
required. Parcel B can accommodate downtown weekend
open air retail events such as fashion apparel and local
arts/crafts shows and architectural exhibits within temporary
structures. The weekly events can focus on the local design
community and can be coordinated with activities sponsored
by the DBA and Chamber of Commerce. The structures can
be installed using modular pavilions, tensile structures, or
shade structures that are easily maintained. Staff has been
contacted by a few operators interested in establishing a
monthly retail market use at the site (see Attachment No. 4). City of Culver City, California
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Alternative III: Public Parking Lot
Estimated Cost: $75,000 for automated pay stations, restriping, and lighting.
Estimated Revenue: $100,000 - $170,000 annually|1010|.
Timeframe: 6 months.
Implementation: The DBA is concerned that due to its convenient location, the
parking lot may compete with their valet parking program.
Parking on Parcel B is currently allowed on a permit basis
primarily to entertainment recording crews, but can transition
into a public parking lot with few site improvements. Use of
the public parking lot may be temporarily suspended to allow
certain types of entertainment and retail uses on the site.
MID-RANGE OPTIONS:
The mid-range options involve the construction of more lasting temporary structures
that require utility connections, restroom facilities, building permits and entitlements.
These projects would take approximately 1 year or more to implement. The mid-
range options the Agency Board may wish to consider include:
Alternative I: Market Hall Development
Estimated Cost: $3 million to build a market hall at developer expense.
Estimated Revenue: Considerably less lease, tax increment, and City tax revenues
than the prior permanent Project.
Timeframe: 18-24 months to execute a 5-year minimum lease, obtain new
entitlements and build.
Implementation: Its construction may jeopardize continuance of the prior
Project’s entitlements. A market hall could be built on the site
by a developer to house a partially enclosed market with
restrooms and rollup doors. Tenants may include glass
blowers, pottery makers, arts and crafts, electronics,
housewares, sunglasses, apparel, jewelry, produce, quick
food, and baked goods retailers. The market hall should be
a high quality design that complements downtown. The
tenant mix would be difficult to control as the vendors are
typically transient. If this option is pursued, the Agency Board
may want to consider a more substantial project or a
permanent structure (see Attachment No.5). City of Culver City, California
Agenda Item Report
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LONG-RANGE OPTIONS:
The long-range redevelopment options reflect the timing for constructing a
permanent building and full site redevelopment. All require one or more years to
construct, and implementation generally depends on recovery of the economy. The
Agency Board may wish to consider the following long-range options:
Alternative I: Maintain Building Design with Existing Entitlements
Estimated Cost: May require reduced residual value for Agency property.
Estimated Revenue: See the Fiscal Analysis section of this report.
Timeframe: 12-15 months to negotiate a DDA, enter into tenant leases,
and 2 months to construct the Town Plaza Expansion.
Implementation: Depends on developer interest and tenant availability. The
Agency releases an RFP to solicit qualified developers to
construct the Project and build the Town Plaza Expansion.
The entitled Project is unchanged and the original plans are
used to construct the Project pursuant to an Agency-approved
DDA.|1010|
Alternative II: Modify Building Design with Existing Entitlements
Estimated Cost: $1,400,000 in delayed Agency Tax Increment and City taxes.
May require reduced residual value for Agency property.
Estimated Revenue: Since the use remains the same, the prior Project revenues
outlined in the Fiscal Analysis section of this report remain
unchanged.
Timeframe: 24-30 months.
Implementation: Depends on developer interest and tenant availability. The
Agency Board may want to develop a different project that is
consistent with the Project entitlements, but which includes a
different building configuration. For example, the project
could be redesigned as two parallel buildings to create a
second level retail “street” with a pedestrian walk similar to
the Via Rodeo shopping center in Beverly Hills (see
Attachment No. 6).
City of Culver City, California
Agenda Item Report
6
Alternative III: Modify Building Design - New Uses with New Entitlements
Estimated Cost: $2,100,000 in delayed Agency Tax Increment and City taxes
or their elimination depending on the use selected.
Estimated Revenue: Depends on new use.
Timeframe: 36-42 months.
Implementation: Depends on developer interest and tenant availability. An
RFP is issued for a new development to construct an entirely
different project. Culver City Municipal Code amendments
over the past decade have increased the parking requirements
for restaurant uses and currently preclude ground level uses
that are not retail related. If the Agency Board were to change
the existing entitlement to pursue a different project, it is likely
that the cost to build additional code-required parking will
adversely affect Parcel B’s land sale price.
Alternative IV: Modify Building Design with Additional Parking with Existing
Entitlements
Estimated Cost: $3,360,000 to $7,392,000, primarily from reduced land sale
proceeds.
Estimated Revenue: The new developer would receive additional parking
revenues from tenants of the building.
Timeframe: 6 months to modify plans and obtain permit approvals.
Implementation: A new developer must purchase the existing construction
documents and then modify them.
The existing Project entitlement provides for 399 code-required parking spaces at
the Ince Parking Structure. The prior developer opted to build one level of
subterranean parking with 84 parking spaces (with the balance of 315 spaces being
provided in the Ince Parking Structure). The Agency Board may want to construct
additional parking beneath the building footprint and beneath the Town Plaza
Expansion.|1010|
The Walker Downtown Parking Study (Study) has identified 608 “pooled parking”
spaces that can accommodate new development. The Study indicates that if Parcel
B is built without additional parking, the existing effective surplus|1010| would be reduced
by 417 spaces for a new total of 191 surplus spaces in the pool.|1010| The use of the
Ince Parking Structure to temporarily accommodate the Exposition Light Rail Phase I City of Culver City, California
Agenda Item Report
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parking during construction of the Transit Oriented Development at Washington-
National will temporarily reduce the surplus by 235 spaces until the Agency’s TOD
project is completed.
If the Agency Board is interested in pursuing use of downtown’s pooled parking
program for new development, it will be necessary to establish a cost and allocation
method for Parcel B.
Alternative V: Modify Building Design and Build Additional Parking, Maintain
Entitlements and Proceed Now with Town Plaza Expansion and Implement a
Shared Parking Program with The Culver Studios
Estimated Cost: $5,465,000
Estimated Revenues: See the Fiscal Analysis section of this report.
Timeframe: 9-12 months
Implementation: Requires negotiation of a tri-party agreement with The
Culver Studios and the new Parcel B developer.
Staff has received an unsolicited proposal from The Culver Studios (Studios) to
share proposed parking resources. The preliminary proposal includes expanding
Parcel B’s first subterranean parking level into the adjacent Town Plaza Expansion
area and beneath the lawn of the Studios Mansion.|1010| The Studios would use the
Town Plaza Access Road during their business hours, and the Agency would be
permitted access to up to 475 additional Studio parking spaces beneath the Studios
Mansion lawn for use by the public typically during weeknights and weekends as
well as during the Studios off-season. This requires entering into a reciprocal
parking agreement between the Agency and the Studios.|1010|
Other Options to Consider:
• Unsolicited proposals received over the last year.
• Constructing Town Plaza Expansion. Cost: $2,800,000.
• Constructing Parcel B landscape improvements. Cost: $125,000 - $280,000.
FISCAL ANALYSIS:
Redevelopment of Parcel B is likely to be more than two years away given current
economic conditions. The Agency will not be generating new tax increment
revenues from the project during that time. If construction of the existing Project is
delayed or replaced with a new use, tax increment receipts (projected to be
$424,000 in year 1 with 2% annual growth thereafter, assuming the current
development plan is implemented), one time building permit fees (approx. $1
million), and other City tax revenues (i.e. Sales Tax, Business Tax and UUT totaling City of Culver City, California
Agenda Item Report
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approx. $265,000 annually, assuming the current development plan is implemented)
will be delayed until construction is completed; or reduced if a different use for the
site is adopted.
If the Agency Board decides to fund construction of additional parking spaces with a
new developer or the Studios, it may do so by reducing Parcel B’s land sale price,
resulting in less land sale proceeds to the Agency.
The $2.3 million realignment of Washington Boulevard has been completed.
Currently, $2.8 million is allocated in tax-exempt bond proceeds (55393400) to
complete construction of the Town Plaza Expansion. If the Town Plaza
improvements are abandoned, the Agency will forfeit $400,000 it has spent on plans
and related improvements.
Each of the short and mid-range use options will generate less Agency and City tax
revenues than the long-range redevelopment options for the site; however, given the
expected delay in project implementation, it seems prudent to consider interim
property uses. The short and mid-range cost and revenue estimates are preliminary
and will require further study based upon the planned uses or events.
CONCLUSION:
The Agency Board should consider whether to proceed with short and mid-range
proposals or whether to proceed with long range redevelopment plans using the
current plans or modifying the plans while maintaining consistency with the project
entitlements.
ATTACHMENTS:
1. Parcel B Conceptual Plans
2. Parcel B Matrix of Short, Mid, and Long Range Uses
3. April 26, 2010 Letter from the Downtown Business Association
4. Via Rodeo Photographs
5. Examples of Tensile Structures
6. Market Hall Conceptual Plan and Washington-Centinela Market Hall
Conceptual Plans
7. Parcel B Enhanced Landscape Screen Conceptual Plan
8. The Culver Studios Shared Parking Plan
MOTION:
That the Agency Board:
City of Culver City, California
Agenda Item Report
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1. Discuss and provide direction on the various alternatives presented in this
report regarding short, mid and long-rang uses of the 9300 Culver Boulevard
site, whether or not to build additional parking as part of the sites
redevelopment, and when to build the Town Plaza Expansion; and,
2. Direct the Executive Director as deemed appropriate.
|1010| The Culver Hotel currently rents up to 10 parking spaces on Parcel B at a rate of $80 each per
month. The Farmers’ Market vendors park their vehicles on a portion of Parcel B every Tuesday
afternoon at no cost to them. The Farmers’ Market vendor parking may be relocated however, to the
angled parking area along Media Park’s frontage road. Currently, entertainment crews pay $2,000
per day to rent Parcel B which generated $21,000 in revenues between March 2009 and March 2010.
|1010| When the Agency Board terminated the DDA with the prior developer it preserved its rights to
acquire the Project’s plans.
|1010| Parcel B’s footprint may allow construction of an automated parking system to stack vehicles that
would increase the total number of spaces built. If an RFP is released for Parcel B that includes a
requirement that additional parking be built, staff may include an option for developers to study and
consider inclusion of an automated parking system in their proposal. The net parking benefit and cost
is outlined below
Parking Beneath Parcel B:
Level Spaces Cost Per Space* Cost Per Level
First 84 $48,100 Already included in
prior Project.
Second 84 $64,200 $5,392,800
Third 84 $80,300 $6,745,200
Total 168 added $12,138,000
*It cost $24,100 per space in an above-ground structure vs. $48,100 to $80,300 per space in a
subterranean structure.
4
The effective supply of unused parking spaces during peak periods is the total supply available
minus an allowance so motorists may find parking spaces more easily and to facilitate proper vehicle
circulation within the system. In this case though the total supply of unused spaces is 773, the
effective supply is 608.
5
Parcel B’s impact on surplus pooled parking spaces per the Walker Parking Study: City of Culver City, California
Agenda Item Report
10
|1010| Parcel B’s footprint may allow construction of an automated parking system to stack vehicles that
would increase the total number of spaces built. If an RFP is released for Parcel B that includes a
requirement that additional parking be built, staff may include an option for developers to study and
consider inclusion of an automated parking system in their proposal.
|1010| The Studios unsolicited proposal includes construction of shared parking beneath the Access Road
that separates the Studios from Parcel B and the front lawn of the Studios Mansion. This would
result in an additional 29 spaces per level at a cost of $1,394,900 for the first level and an additional
$7,254,600 for a second level. In addition, modifications to the existing Town Plaza Expansion
construction documents and engineering a new storm water drainage system would add an additional
$75,000 to the cost.
The anticipated costs are:
Level Spaces Cost
Studios Front Lawn P1 Level 115 $0
Town Plaza Expansion-P1 29* $1,394,900
Plaza Expansion Redesign N/A $75,000
Shared P2 Level (113+218) 331 $7,254,600
Total 475 $8,724,500**
*Does not include 84 excising spaces already being built on Parcel B’s P1 level.
**$8,724,500 is $18,367 per shared parking space.