2834 Colorado Avenue Development Agreement

City Council Meeting: April 8, 2008

Agenda Item: 8-A

To: Mayor and City Council

From: Eileen Fogarty, Planning & Community Development Department

Subject: Discussion of Development Agreement Concept Plans for an Entertainment Production Facility at 2834 Colorado Avenue

Recommended Action

Staff recommends the City Council discuss the appropriateness and potential public benefits of the applicant’s Development Agreement proposal for a new entertainment production facility at 2834 Colorado Avenue and provide direction regarding negotiating points that should be addressed and alternatives.

Executive Summary

This hearing is part of the initial round of hearings before the Planning Commission and City Council to obtain preliminary feedback on concept plans for a proposed creative office/production studio. While a Development Agreement is exempt from zoning standards, it must comply with the General Plan. This proposed use is consistent with the General Plan. It is also consistent with the City Council direction for this portion of the industrial area of the LUCE. This Development Agreement proposal is being processed pursuant to Interim Ordinance No. 2242 (CCS), which was enacted to prevent the continued piecemeal development of this area with large blocks of development without adequate infrastructure, amenities and services. During the pre-submittal hearing on a Development Agreement proposal for the Village Trailer Park on November 27, 2007, the City Council directed staff to work with the owners of 2834, 2912 and 2930 Colorado Avenue, to consider coordinated project alternatives. Accordingly, the Development Agreement process would also allow the City to coordinate this project with redevelopment proposals for the two adjacent parcels to integrate land use policies with transportation solutions and gain public infrastructure that would not be possible with a piecemeal approach. This proposal is consistent with the existing creative arts and entertainment uses as well as the general direction to encourage creative arts uses in this area of the City.

The Planning Commission prepared recommendations for public benefits associated with the applicant’s proposal for the three-story, 45 foot high, 153,000 square foot entertainment production building over a basement and subterranean parking garage on December 12, 2007. The Commission also recommends modifying the building design to breakup its long linear scale. In response to the Planning Commission’s concern the applicant is preparing a modified concept design, but that rendering was not available to be transmitted with this report and will be provided prior to the hearing.

Because the City is engaged in developing new General Plan policies and vision for this area of the City, a Development Agreement for this project also needs to contemplate the LUCE vision so that the project that ultimately returns to the Planning Commission and City Council not only addresses community concerns, but its design, uses, features and infrastructure will contribute to the community.

Staff suggests the Council focus on the following items in considering this matter:

a. The desirability of the proposed use and its consistency with the neighborhood context;

b. Consistency with the General Plan;

c. Any alternatives that should be considered;

d. Any negotiating points that should be addressed; and

e. Identify desirable infrastructure/public benefits

If a Development Agreement is initiated, the negotiations between the applicant and the City should:

1) Achieve a design and uses that contemplates the LUCE vision while being consistent with the adopted General Plan;

2) Negotiate public benefits such as open space and pedestrian amenities;

3) Negotiate Transportation Demand Management to reduce single-occupant vehicle trips and vehicle miles traveled; and

4) Negotiate public benefits that improve infrastructure, circulation and use of public transit that is coordinated to encourage similar benefits from the adjacent properties.

Based on feedback that has been received from the Planning Commission and will be received from the City Council, the applicant will determine how or whether to pursue the Development Agreement. If the Development Agreement process is pursued, fiscal impacts to the City would be identified during the negotiation process and addressed in the ultimate proposal to the City Council

Background

The applicant submitted Development Review (DR 06-009), Design Compatibility Permit (DCP 06-006) and Vesting Tract Map (TM 06-024) applications to develop the site with 54 artist studio condominiums on August 15, 2006. This project is in the environmental review stage and has not been scheduled for a public hearing. Because of the type of applications and the submittal date, the artist studio condominium project can be processed without a Development Agreement and would not provide the public benefits that could be gained from pursuing the entertainment studio project. While these applications were being processed with the City, the applicant was contacted by a representative from a major movie and multi-media entertainment production company to develop the site for their production headquarters. As a result, the applicant has placed the artist studio condominium applications on hold while this Development Agreement proposal is pursued. Those applications will be withdrawn if the Development Agreement proposal is successful.

Prior City Council Direction

Following the public hearing on a Development Agreement proposal for the Village Trailer Park located at 2930 Colorado Avenue on November 27, 2007, the City Council directed staff to work with the owners of 2834, 2912 and 2930 Colorado Avenue, which encompass almost half of the land of this oversized block, to consider coordinated project alternatives. Staff has met with the three property owners and believes that separate Development Agreements may be appropriate for three different projects which can be coordinated to provide a mix of land uses and transportation solutions that achieve superior results for the community, including new infrastructure that would be infeasible with piecemeal development.


Zoning Context	Land Use Context

The property is generally surrounded by one and two story commercial buildings occupied by movie production, industrial, public utility yard and auto repair uses. Properties across Colorado Avenue to the north are developed with one and two story apartments and condominiums and have a low scale residential character. The site is developed with two rows of single-story buildings, some with open-bay garages that are occupied with a variety of small industrial and commercial businesses. The existing development will be demolished for the redevelopment project.

Discussion

Development Agreements are not quasi-judicial matters like Development Review Permits or Conditional Use Permits. They are negotiated contracts between the City and an applicant and are implemented by ordinance. To avoid negotiating a project the City Council cannot ultimately accept, staff scheduled this preliminary discussion at the outset of this process. The Planning Commission reviewed the concept plans at their December 12, 2007 meeting and their recommendations to the City Council are included later in this report. The City Council’s discussion will provide direction to staff and inform the property owner of key issues that need to be addressed during the Development Agreement negotiation process. Attachment C contains the applicant’s summary and concept plans.

Applicant’s Project Description

The applicant proposed two redevelopment alternatives to the Planning Commission; however the Planning Commission’s discussion was based on the three-story, 45 foot high, 153,000 square foot entertainment production building over a basement and two-level subterranean parking garage proposal. The basement would contain ancillary facilities, including media storage vaults, conference and screening rooms.

The building would be occupied by a single movie, music, television and video production company. The proposed use is consistent with the property’s LMSD zoning and Special Office District land use designation. The subterranean parking garage would provide approximately 412 parking spaces plus four at-grade freight loading spaces that would be accessed from a two-way driveway from Stewart Street. However, if the City council directs redesign as recommended, the number of parking spaces would be revised to comply with parking requirements for the ultimate mix of uses. The site is currently developed with 32,000 square feet of single-story industrial/commercial buildings that would be demolished. The applicant’s proposal identifies timing as a critical issue. Specifically, City approvals and permits need to permit construction to begin no later than January, 2009, allowing occupancy in early 2011.

The applicant has suggested that the following list of project features will provide public benefit:

1. Open space on the corner of Stewart and Colorado Avenue;

2. New revenue from the project to the Santa Monica School District;

3. Opportunities for high paying jobs for Santa Monica residents;

4. Lighter traffic during peak hours as compared to existing use and general office use;

5. Higher public transit use;

6. The post-production, film and music industry provides high employment with lower impact on the streets, environment and surrounding neighborhoods compared to traditional uses;

7. LEED certified;

8. Pedestrian orientated design;

9. Lionsgate provides social benefits; and

10. As owner, Lionsgate is a good neighbor.

At this early stage in the process, the proposed conceptual plans are extremely schematic. Comprehensive project plans and alternatives would be developed during the Development Agreement process based on direction from the City Council pertaining to the project’s size, scale, uses and public benefits. As discussed in the General Plan section below, the project must be consistent with the current General Plan as well as anticipating the evolving vision of the Land Use and Circulation Elements (LUCE) update for this area.

General Plan Consistency

The City is actively engaged in developing new General Plan policies and vision for this area of the City. Although the new policies may not be adopted before this proposal is ready for final consideration, the evolving LUCE vision is based on planning principals and community values that should shape any proposal for this site. Accordingly, the Development Agreement for this project needs to contemplate the LUCE vision so that the project that ultimately returns to the Planning Commission and City Council not only addresses community concerns, but its design, uses, features and infrastructure will be consistent with community goals.

In this case, the proposed creative arts studio use is consistent with the adopted Land Use Element and has also been identified during the recent LUCE public workshops for the industrial area as a continued appropriate use for the area. Although additional public hearings will be held to refine the community vision for this area, creative arts and entertainment use was clearly identified by the community to be retained in this area.

The subject property is located in the Special Office District of the General Plan Land Use Element. Land Use Policy 1.8.7 allows a maximum height of three stories and 45 feet and a maximum floor area ratio (FAR) of 2.0 in this district. The proposal’s three-story, 45 feet high, 2.0 FAR is consistent with this policy. The creative office/entertainment production use is consistent with Land Use Objective 1.8 to “Provide opportunity for office and advanced technology uses requiring large floor areas.”

The property is approximately ¼ mile (reasonable walking distance) of the potential Bergamot METRO rail station. While the LUCE vision is still being developed, there is community support to identify the areas adjacent to the Bergamot transit station as future creative arts neighborhoods. Therefore, it appears that this project, as a creative arts and entertainment use, is consistent with this emerging LUCE vision and an opportunity to better utilize the future rail transit opportunity to reduce long term traffic impacts.

Overall Size, Scale and Design

The size of the proposed building is consistent with the current General Plan. However, the conceptual plans as presented are extremely schematic and primarily provide a starting point for discussion. While the proposal is consistent with recent building trends for this area, staff is concerned with the building’s 490 foot length, but a number of design options are available to break-up its apparent mass along Stewart Street. Comprehensive project plans will be developed during the Development Agreement process based on direction from the Planning Commission and City Council pertaining to the project’s size, scale, uses and public benefits.

Neighborhood Context

The General Plan provides direction for the long term development of the City. Again, the LUCE policies and vision that are currently evolving represent the key context for evaluating neighborhood compatibility for this area. Pursuant to the LUCE, the project needs to:

1) Create a walkable environment with appropriate scale;

2) Provide public services and amenities such as open space;

3) Address needed infrastructure and circulation;

4) Reflect use or uses identified in the plan; and

5) Interface with the proposed METRO station to the south.

In addition to the General Plan, the type and scale of existing and future development surrounding the project are used to evaluate the project’s overall size and scale. Properties on the north side along Colorado Avenue are primarily developed with one and two story apartments and condominiums. Properties on the south side of Colorado Avenue and west side of Stewart Street, adjacent to the proposed project site are generally developed with one and two story industrial, studio and commercial buildings that typically range from 18 to 40 feet high. The Village Trailer Park, is located 220 feet further east and is developed with trailers and single-story accessory structures. Currently, two-story, 30 to 45 foot high entertainment/media production studio, artist studio, SRO housing and private schools represent typical projects that are either proposed or under construction in this district.

Planning Commission Action

The Planning Commission conducted a public hearing on this proposal on December 12, 2007. Based on input from the applicant and the public, the Planning Commission recommended the following to the City Council:

Begin Development Agreement negotiations;
Require some ground floor pedestrian oriented design and uses (food service);
Require contributions to the Big Blue Bus until the light rail is operational;
Require contributions to a minibus which serves the LMSD district;
Require a parks contribution;
Negotiate an easement along the south property line to connect the street grid through the site and allow increased height to compensate;
Negotiate an easement for electric cars, bicycles;
Require public art on-site;
Ensure that the project connects well with the streetscape and bike lanes;
Require shared parking with parking spaces available to the adjacent neighborhood;
Require trip reduction measures;
Provide publicly accessible open space along Colorado Avenue;
Provide film internships to City residents;
Break up the long rectangular look of the building along Stewart Street and provide a sensitive treatment to the Colorado Avenue façade;
Require a publicly accessible on-site flex car facility;
Require an on-site infant and toddler care facility with extended hours to be operated by the applicant;
Require street furniture at nearby bus stops; and
Provide assistance and compensation for small businesses forced to relocate as a result of the project.

A copy of the December 12, 2007 Planning Commission minutes is contained in Attachment A.

Alternatives

In addition to the recommended action, the City Council could continue the discussion for analysis of additional options with agreement from the applicant.

Environmental Analysis

CEQA review is not required for the purpose of a preliminary discussion of the feasibility of a potential project and the appropriateness and potential public benefits of a Development Agreement for the site (State CEQA Guidelines Section 15262). Environmental analysis will be completed prior to considering approval if the Development Agreement process is engaged.

Public Outreach

Sign posting and mailed notices are not required by Code for this initial discussion procedure; however, notice of the public hearing was mailed to all owners and residential and commercial tenants of property located within a (500 foot) radius of the project and published in the Santa Monica Daily Press at least ten consecutive calendar days prior to the hearing.

Budget/Financial Impact

Staff costs for the Development Agreement process are paid from application fees. There is a wide range of public benefits that the developer could be required to provide pursuant to the Development Agreement negotiations. The associated fiscal impact will be determined prior to the Development Agreement returning for City Council consideration.

Prepared by:

Bruce Leach, Special Projects Administrator

Approved:

Forwarded to Council:

Eileen Fogarty

Director, Planning & Community Development

P. Lamont Ewell

City Manager

ATTACHMENTS:

A. December 12, 2007 Planning Commission Report

B. Public Notification & Comment Material

C. Proposal Summary & Plans

ATTACHMENT A

November 14/ December 12, 2007 Planning Commission Staff Report & Minutes

Planning Commission Report

Planning Commission Meeting: November 14, 2007

(Continued to December 12, 2007)

Agenda Item: 10-A

To: Planning Commission

From: Amanda Schachter, City Planning Division Manager

Subject: Discussion of Concept Plans to redevelop the property located at 2834 Colorado Avenue.

Address: 2834 Colorado Avenue

Applicant: Colorado Creative Studios, LLC.

Recommended Action

It is recommended that the Planning Commission:

1. Recommend that the City Council initiate the Development Agreement negotiation and review process;

2. Discuss the applicant’s Development Agreement proposal and provide direction regarding its potential public benefits and appropriateness for the redevelopment of the site.

Executive Summary

The applicant is proposing that the City consider a Development Agreement to permit redevelopment of the site with a three-story, 115,200 square foot entertainment production building over a subterranean parking garage. The building would be occupied by a major movie and multi-media production company. The proposed use is consistent with the property’s LMSD zoning and Special Office District land use designation.

While a Development Agreement is exempt from zoning standards, it must comply with the General Plan. Because the City is engaged in developing new General Plan policies and vision for this area of the City, a Development Agreement for this project also needs to contemplate the LUCE vision so that the project that ultimately returns to the Planning Commission and City Council not only addresses community concerns, but its design, uses, features and infrastructure will contribute to the community.

Staff suggests the Commission focus on the following items in considering this matter:

a. The desirability of the proposed use and its consistency with the neighborhood context;

b. Consistency with the General Plan;

c. Any alternatives that should be considered;

d. Any negotiating points that should be addressed; and

e. Identify desirable infrastructure/public benefits

If a Development Agreement is initiated, the negotiations between the applicant and the City should:

5) Achieve a design and uses that contemplates the LUCE vision while being consistent with the adopted General Plan;

6) Negotiate public benefits such as open space and pedestrian aminities;

7) Negotiate Transportation Demand Management to reduce single-occupant vehicle trips; and

8) Negotiate public benefits that improve infrastructure, circulation and use of public transit.

Background

The applicant submitted Development Review (DR 06-009), Design Compatibility Permit (DCP 06-006) and Tract Map (TM 06-024) applications to develop the site with 54 artist studios on August 15, 2006. While these applications were being processed with the City, the applicant was contacted by a representative from a major movie and multi-media entertainment production company to develop the site for their production headquarters. As a result, the applicant has placed the artist studio condominium applications on hold while this Development Agreement proposal is pursued. Those applications will be withdrawn if the Development Agreement proposal is successful.

Project / Site Information

The following table provides a brief summary of the project location.

Project and Site Information Table

Zoning District:

LMSD

(Light Manufacturing Studio District)

Site Location Map

Land Use Element Designation:

Special Office District

Parcel Area (SF):

1.76 Acres

(76,795 sq. ft.)

Parcel Dimensions:

120’ x 640’

Existing On-Site Improvements (Year Built):

One-story light industrial (age of buildings vary from 1948 through 1950s)

Rent Control Status:

Commercial Exempt

Adjacent Zoning Districts and Land Uses:

LMSD– South & East

LMSD & C5- West

R2 – North

Discussion

Development Agreements are negotiated contracts between the city and an applicant that specifies the design details and requirements of a project. In order to avoid negotiating a project the City finds unacceptable, this matter was scheduled to enable a pro-active discussion with the Planning Commission. The Commission’s discussion will help advise the City Council, provide initial direction to staff and inform the property owner. The information gathered during this discussion will be used by the applicant and City Council to evaluate the potential health, safety and welfare benefits and impacts of the proposal and potential alternatives. Attachment B contains the applicant’s summary and concept plans.

Applicant’s Project Description

The applicant proposes that the City consider a Development Agreement to redevelop the site with a three-story, 115,200 square foot entertain production building over a two-level subterranean parking garage. The building would be occupied by a single tenant movie, music, television and video production company. The proposed use is consistent with the property’s LMSD zoning and Special Office District land use designation. The subterranean parking garage would provide 412 parking spaces plus four at-grade freight loading spaces that would be accessed from a two-way driveway from Stewart Street. The number of parking spaces comply with parking requirements for the use. The site is currently developed with 32,000 square feet of single-story industrial/commercial buildings that would be demolished. The applicant’s proposal identifies timing as a critical issue. Specifically, City approvals and permits need to permit construction to begin no later than January, 2009, allowing occupancy in early 2011.

The applicant has suggested that the following list of project features will provide public benefit:

1. New tax revenue from the project for the use of Santa Monica.

2. New revenue from the project to the Santa Monica School District.

3. Opportunities for high paying jobs for Santa Monica residents.

4. There will be no impact on traffic over existing use of the site because work schedules are flexible with the Music, Film, and Post-Production industries. Typical of creative companies, the workday starts staggered after 9:00 A.M. and ends staggered after 7:00 P.M., which is after the morning and evening peak traffic times.

5. There could be more public transit used because the Post-Production, Film, and Music industries employ a high percentage of young people, who are more apt to car pool or use the transit systems. There is a bus line on Colorado Avenue and the proposed Expo Line stop at Bergamot Station is less than a 5-minute walk from this building.

6. The entertainment industry facilities are high paying jobs with lower impact on the streets, environment and surrounding neighborhoods compared to traditional uses.

7. Since this is new construction, it will present opportunities for a sustainable green designed building, supporting Santa Monica’s goal to be recognized as a Green City.

8. The new project will replace an older property without pedestrian amenities. A new building with sustainable landscaping and improved design elements is intended to create a pedestrian friendly street scape.

At this early stage in the process, the proposed conceptual plans are extremely schematic. Comprehensive project plans and alternatives can be developed during the Development Agreement process based on direction from the Planning Commission and City Council pertaining to the project’s size, scale, uses and public benefits. As discussed in the General Plan section below, the project must be consistent with the current General Plan as well as anticipating the evolving vision of the Land Use and Circulation Elements (LUCE) update for this area.

General Plan Consistency

In this case, the proposed creative arts studio use is consistent with the adopted Land Use Element and has also been identified during the recent LUCE public workshops for the industrial area as a continued appropriate use for the area. Additional workshops are scheduled to refine the community vision for this area; however, creative arts is a use that is expected to be identified as appropriate for the area in the final proposal.

The subject property is located in the Special Office District of the General Plan Land Use Element. Land Use Policy 1.8.7 allows a maximum height of three stories and 45 feet and a maximum floor area ratio (FAR) of 2.0 in this district. The proposal’s three-story, 45’ high, 1.5 FAR is consistent with this policy. The entertainment production use is also consistent with Land Use Objective 1.8 to “Provide opportunity for office and advanced technology uses requiring large floor areas.”

The property is also located within reasonable walking distance of the potential Bergamot METRO rail station. While the LUCE vision is still being developed, there is community support to identify the areas adjacent to the Bergamot transit station as future creative arts neighborhoods. Therefore, it appears that this project, as a creative arts and entertainment use, is consistent with this emerging LUCE vision and an opportunity to better utilize the future rail transit opportunity.

Overall Size, Scale and Design

The size of the proposed building is within the size limits of the General Plan. However, the conceptual plans as presented are extremely schematic and primarily provide a starting point for discussion. Comprehensive project plans will be developed during the development agreement process based on direction from the Planning Commission and City Council pertaining to the project’s size, scale, uses and public benefits.

Neighborhood Context

6) Create a walk able environment with appropriate scale;

7) Provide public services and amenities such as open space;

8) Address needed infrastructure and circulation;

9) Reflect use or uses identified in the plan; and

10) Interface with the proposed METRO station to the south.

As of the preparation of this report, two letters from the public in support of the proposal has been received. Public notification of this hearing is contained in Attachment A.

Alternative Actions:

In addition to the recommended action, the Planning Commission could consider the following with respect to the project:

A1. Continue discussion for analysis of additional options with agreement from the applicant

Conclusion

The proposed multi-media production use is consistent with the current vision for the LMSD area and the likely future vision for this area. This hearing is part of the initial round of hearings to determine whether to process a Development Agreement application.