Private Developers will Own and Develop
With February 1 as the date for dissolving redevelopment agencies across the state, the Culver City Council and Redevelopment Agency spent Monday night’s meeting wrapping up the major projects previously approved by Redevelopment.
Among the projects that were approved for sale to private developers were the 9300 Culver Boulevard (“Parcel B”) project for a mixed-use structure to be built by Combined/Hudson Pacific Properties, the Jazz Bakery project to be built at 9814 Washington Boulevard next to the Kirk Douglas Theatre, and the Washington/National Transit- Oriented Development site adjacent to the Expo Line terminus station in Culver City.
With respect to Parcel B, the Council/Agency approved a Disposition and Development Agreement (DDA) to sell the property to the developer, Combined/Hudson Pacific Partners, for development of the previously approved project and for the construction of extra public parking and the Town Plaza expansion.
Under terms and conditions of the DDA, Combined must pay permit fees for the project set at $8.70 per square foot, which equates to approximately one million. Combined’s land payment is estimated at approximately $4,022,400. The City may receive an increased land payment by an amount equal to any public improvement costs.
The City requires Combined to expand the public restrooms to accommodate public events. This will reduce Combined’s land payment by an amount equal to the estimated costs of $65,100.
If the City chooses to construct the public parking, it will reduce the land payment by the estimated costs of $62,500 to modify the building due to the garage ramp relocation.
The Project will be subject to prevailing wage. Because Combined’s land payment assumed union wage, the City will fund any difference between union and prevailing wage.
Other terms and conditions include details about the creation of public parking spaces beneath Town Plaza, which will be built by both the City and Combined; control of tenants, which will be done by the City through a pre-approved tenant list for seven years following the completion of construction; and a license agreement providing the City the use of the project’s elevated plaza and grand staircase for public events.
Considering the length of time that it took to approve a project and developer for Parcel B, the wrap-up seemed anticlimactic and the Council took note of that fact in regard to not only Parcel B but all the projects on the agenda.
“A process that typically takes months has been condensed into days,” said Council member Andrew Weissman. “We greatly appreciate the long hours and diligence [by city staff] that has enabled us to move forward.”
The Council/Agency approved a commitment letter with the Jazz Bakery for the sale of and subsequent development of the property as a live performance venue. Culver City will facilitate the relocation of the Kirk Douglas Theatre mechanical equipment at the Jazz Bakery’s expense and will convey the property to the Jazz Bakery “as-is” through a DDA. The Bakery, in turn, will develop the property as a 250-seat entertainment venue which will also be available to the community for public meetings and performances.
The 5.2 acre property at Washington and National was slated for development including subterranean parking and other facilities related to the Expo Line station nearby. In response to the dissolution of redevelopment agencies and funding, the City is proceeding with a limited RFP (Request for Proposals) process to select a developer for the site. The Council authorized execution of a commitment letter with a selected developer and approved Legado as that developer.
The Council and Agency also approved a commitment letter with Lab Holdings LLC for sale and redevelopment of city-owned property at the northerly corners of the Washington Boulevard and Centinela intersection. The project planned for these sites was, and will be, a market hall.
Also approved was a purchase and sale agreement with Hackman Capital Partners to purchase public parking spaces at 8550 Higuera/8600 Hayden Place to create a public parking district in the Hayden Tract.
In a joint public hearing of the City Council and the Housing Authority, a resolution was adopted approving a DDA and sale of property at 4044-4068 Glove Avenue to Habitat for Humanity of Greater Los Angeles, to develop affordable ownership units at the site.
Several agenda items drew public comment that the process seemed hurried, that there had not been enough time to vet the projects. Public speakers also wondered if the “promises” made by developers for Parcel B and other projects would be fulfilled now that the building of these projects would be funded privately.
Mayor Micheal O’ Leary admitted the Council shared the public’s concerns but urged people to “trust” their decisions and to trust that the developers would build the designated projects.
“If we do not vote tonight, we risk these properties [being taken completely] out of our hands,” he said adding that the actions taken were “business decisions.”
The dissolution of redevelopment agencies was noted as a milestone by City Manager John Nachbar in his invocation for the evening. And so January 30, 2012 will go down, barring action by the state of California, as the last time that meeting attendees took copies of a yellow booklet for the Redevelopment Agency agenda.
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