CRA/LA BU ILDING COMMUNITI ES C 1 1 l 1 i, h. I v I 1 nt Agency of the CITY O F LOS ANGELE S DATE / OCT 2 B 2010 i ll COil- I 1200 West 7th Street I Suite 500 Los Angeles 1 California 90017-2381 I <!]1600/ F2139771665 www.crala.org Honorable Council of the City of Los Angeles John Ferraro Council Chamber 200 N. Spring Street Room 340, City Hall Los Angeles, CA. 90012 CRA File No. '/2 7b Council District: 1l Contact Person: Franco Pacelli (323) 960-2666 COUNCIL TRANSMITTAL: Transmitted herewith, is a Board Memorandum adopted by the Agency Board on October 28, 2010 for City Council review and approval in accordance with the "Community Redevelopment Agency Oversight Ordinance" entitled : VARIOUS ACTIONS RELATED TO: SELMA HOTEL. REVIEW AND CONSIDER TH E MITIGATED NEGATIVE DECLARATION PREPARED FOR THE PROJECT, ADOPTION OF LAND USE FINDINGS AND AUTHORIZATION TO EXECUTE AN OWNER PARTICIPATION AGREEMENT WITH 6417 SELMA LLC FOR THE DEVELOPMENT OF A HOTEL PROJECT AT 6417 SELMA AVENUE AT A FLOOR AREA RATIO OF 5.3 TIMES THE SITE AREA IN THE HOLLYWOOD REDEVELOPMENT PROECT AREA HOLLYWOOD & CENTRAL REGION (CD 13) RECOMMENDATION That City Council approves recommendation three (3) on the attached Board Memorandum. ENVIRONMENTAL REVIEW The City of Los Angeles is the lead agency for the Project for purposes of th e California Environmental Quality Act ("CEQA"). On July 24, 2008 the City of Los Angeles, acting th rough its Planning Department approved the project and adopted the MND (ENV2007-3932-MND). The CRA/LA's responsibility, as a Responsible Agency under CEQA, is to consider environmental effects of the Project as shown in the MND prepared by th e lead agency prior to acting on the Project. Since the adoption of the MND and approval of the project by the City Plann ing Department, there have been minor changes to the project. Evaluation of th e potential environmental impacts of the changes by CRA/LA staff conclud ed that no new significant effects that had not already been addressed in the adopted MND would occur. With adoption of the attached environmental reso lution (Attachment C), no further environmental review is required pursuant to CEQA.
FISCAL IMPACT STATEMENT This action is consistent with the current adopted FY2011 Budget and Work Program. The City's General Fund will be positively impacted by the approval of this project as a result of the estimated $22 million of transient occupancy tax revenue. DEADLINE FOR ACTION The Chief Executive Officer, CRAILA, respectfully request that this transmittal be exped ited to the City Counci l for review and approval. This project is using RZFB Bonds and said bonds need to be sold in November 2010.
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA (CRA/LA) MEMORANDUM DATE: TO: FROM: OCTOBER 28, 2010 CRA/LA BOARD OF COMMISSIONERS CHRISTINE ESSEL, CHIEF EXECUTIVE OFFICER HW6990 STAFF: SUBJECT: LESLIE LAMBERT, REGIONAL ADMINISTRATOR NEELURA BELL, PROJECT MANAGER KIP RUDD, SENIOR PLANNER FRANCO PACELLI, SENIOR REAL ESTATE DEVELOPMENT AGENT SELMA HOTEL. REVIEW AND CONSIDER THE MITIGATED NEGATIVE DECLARATION PREPARED FOR THE PROJECT, ADOPTION OF LAND USE FINDINGS AND AUTHORIZATION TO EXECUTE AN OWNER PARTICIPATION AGREEMENT WITH 6417 SELMA LLC FOR THE DEVELOPMENT OF A HOTEL PROJECT AT 6417 SELMA AVENUE AT A FLOOR AREA RATIO OF 5.3 TIMES THE SITE AREA IN THE HOLLYWOOD REDEVELOPMENT PROECT AREA RECOMMENDATION(S) HOLLYWOOD AND CENTRAL REG ION (CD 13) That the CRA/LA Board of Commissioners: 1) Adopt a resolution certifying that it has reviewed and considered the environmental effects of the project as shown in the City of Los Angeles Mitigated Negative Declaration ENV2007-3932-MND (MND) pursuant to California Environmental Quality Act (CEQA) Guidelines set forth in California Code of Regulations Section 15096(f); and 2) Adopt a resolution making certain Findings and Determinations pursuant to the Hollywood Redevelopment Plan allowi ng for the increase in development density from four and one half to 5.3 times the area of the development site in connection with the proposed hotel development at 6417 Selma Avenue. That the CRA/LA Board of Commissioners, subject to City Council review and approval: 3) Authorize the Chief Executive Officer or designee to execute an Owner Participation Agreement with 6417 Selma LLC ("Developer''), for the proposed development of a hotel project at 6417 Selma Avenue ("Site"). SUMMARY The recommended action will allow execution of an Owner Participation Agreement ("OPA") with the Developer to develop a boutique hotel at 6417 Selma Avenue in Hollywood (see Attachment A). The Developer proposes to construct a new 7 -story hotel with up to 136 hotel rooms atop an existing, two-story above grade warehouse, a 90-space parking garage with in the existi ng warehouse, and the improvement and maintenance of the adjacent public alley as a paseo to encourage the activation of the subject alley with dining and other pedestrian friend ly uses.
SELMA HOTEL OPA PAGE2 The Amended Hollywood Redevelopment Plan ("Redevelopment Plan") designates the Site as Regional Center. The proposed Project would contain approximately 73,800 square feet of floor area, or 5.3 times the area of the Site (5.3: 1 FAR). CRAILA approval of an OPA is required by the Redevelopment Plan since the proposed project exceeds 4.5 times the Site area. The size of the Site is 13,923 square feet. Pursuant to Section 506.2.3 of the Redevelopment Plan, individual development projects within the Regional Center Commercial designation may exceed 4.5:1 FAR if, among other things, they serve a public purpose such as: the provision of additional open space, cultural facilities, public par:king-,- or- the-rehabilitation-of- an architecturally or historically significant building.- The Developer has agreed to provide many community benefits to offset the impacts of the additional FAR that are listed in the Community Benefits section below. In addition, the Developer, under the OPA, will comply with the CRAILA Prevailing Wage Policy, Service Worker Retention Policy, Equal Benefits Policy, Contractor Responsibility Policy, and Equal Opportunity Policy. PREVIOUS ACTIONS Initia l Action. DISCUSSION & BACKGROUND Location 6417 Selma Avenue, Hollywood, CA Developer Entity 6417 Selma LLC Description and Project Context 7-story hotel with up to 136 hotel rooms atop an existing 2 story, 90 space above grade parking structure (total 9 stories) with approximately 73,800 square feet of Floor Area and up to 5.3:1 Floor Area Ratio ("FAR") and including rooftop bar/lounge, restaurant and pool facilities and improvement of adjacent public alley as a paseo with dining and other pedestrian-friendly features. Community Benefits Selma Hotel - Public Benefits Package Creating and funding of significant alley improvements and pedestrian thoroughfare. This development represents the first project in the CRA/LA's Hollywood Alley Beautification Initiative. The improved alley will be maintained by the property owner. 1 LEED Silver Certification by the US Green Building Council. Compliance with the CRAILA Living Wage Policy by the Developer and the hotel operator. Hotel Hospitality training through LACC Workforce Development project. Participation in local job fairs or similar events and other reasonable efforts to hire locally. Implementation of a car share program as part of a Transportation Demand Management Plan.
SELMA HOTEL OPA PAGE 3 Hotel will provide bicycles and a bike share program as part of a Transportation Demand Management Plan. Participation in CRA/LA Local Hire Program. Coordinated recycling program (with adjacent businesses), including food waste com posting. Density/Land Use Findings and Determinations The proposed Project will result in an FAR of approximately 5.3. Section 506.2.3 of the Redevelopment Plan- allows for an -average- flogr- ar-ea -ratio- ('.'-FAR") in the Regional Center Commercial land use designation of 4.5:1, but permits individual development projects to exceed 4.5:1 FAR if they meet certain objectives and upon the CRA/LA Board of Commissioners' making certain findings and determinations. Pursuant to Section 506.2.3 of the Redevelopment Plan, proposed developments with the areas designated as "Regional Center" may exceed a 4.5:1 FAR up to a maximum of 6.1 FAR if the development: 1. Furthers the goals and intent of the Redevelopment Plan and the Hollywood Community Plan. Hollywood Redevelopment Plan Section 300 of the Hollywood Redevelopment Plan sets out a number of goals that are supported by the proposed Project including: The proposed hotel development will promote a balanced community meeting the needs of the residential, commercial, industrial, arts and entertainment sectors. The proposed improvement of the adjacent alley to a pedestrian-oriented open space will promote and encourage development of open spaces necessary to support attractive residential neighborhoods and commercial centers. Hollywood Community Plan The Hollywood Community Plan contains a number of objectives for the regional center of Hollywood in which the proposed Project would be located. Objective 1: To coordinate the development of Hollywood with that of other parts of the City of Los Angeles and the metropolitan area; to further the development of Hollywood as a major center of population, employment, services, and entertainment; and to perpetuate its image as the international center of the motion picture industry. Development of the proposed Project would support continued development of Hollywood as a Regional Center by redeveloping an existing warehouse building as a new hotel with supporting restaurant, bar/lounge and function areas. Objective 2: To designate lands at appropriate locations for the various private uses and public facilities in the quantities and at densities required to accommodate population and activities projected to the year 2010.
SELMA HOTEL OPA PAGE4 The proposed Project would be consistent with growth proj ections for the Community Plan Area through the year 2010 as identified in the Community Plan and by SCAG. Objective 4: To promote economic well being and public convenience through: a. Allocating and distributing commercial lands for retail, service, and office facilities in quantities and patterns based on accepted planning principles and standards. b. Designating land- for - industrial development that can be- used without. - detriment to adjacent development uses of other types, and imposing restrictions on the types and intensities of industrial uses as are necessary to this purpose. c. Encouraging the revitalization of the motion picture industry. d. Recognizing the existing concentration of medical facilities in East Hollywood as a center serving the medical needs of Los Angeles. The proposed project would involve the operation of a nine-story hotel with a rooftop bar/lounge and would contribute to the allocation and distribution of commercial lands as designated in the Hollywood Community Plan. Therefore, the proposed project would be consistent with Objective 4a. [The proposed Project would not include land designated for industrial development, uses involving the motion picture industry, or a medical facility and, therefore, Objectives 4b through 4d would not be applicable.] 2. Concentrates high intensity and/or density development in areas with reasonable proximity or direct access to high capacity transportation facilities or which effectively utilize transportation demand management programs; and The site of the proposed Project is located approximately 0.4 miles (2,200 feet) from the HollywoodNine Metro Station and approximately 600 feet from major bus routes along Hollywood Boulevard and Sunset Boulevard so is in reasonable proximity to high capacity transportation faci lities. 3. Meets at least one of the following objectives: a. Provides for new development which complements the existing buildings in areas having architecturally significant structures of to encourage appropriate development and/or historically significant buildings; and/or b. Provides focal points of entertainment, tourist or pedestrian oriented uses in order to create a quality urban environment; and/or c. Encourages the development of appropriately designed housing to provide a balance in the community; and/or d. Provides for substantial, well designed, public open space in the Project Area; and/or e. Provides social services which access the community's needs. The proposed Project meets objective 3.b above. The proposed Project contains 136 rooms and support restaurant, bar; and function space that provides a tourist oriented use. The proposed Project includes significant improvements to the paving and landscaping of the
SELMA HOTEL OPA PAGES adjacent alley creating a garden-like pedestrian-oriented use (objective 3.b) and substantial, well-designed, public open space (objective 3.d). Section 506.2.3 requires the CRA/LA to request from the Planning Commission a determination as to the conformity of the proposed development with the Hollywood Community Plan. The Planning Commission has already approved a zone change with the increased development density for the Selma Hotel on September 17, 2008. ECONOMIC IMPACT The following table* describes the economic impacts estimated to be created by this project. - '.. ',Estimated Economic Impacts Created by this Project* ' -- Estimated Construction Jobs Created 181 Estimated Permanent Jobs Created 74 Estimated Gross Property Tax Increment (TI) Revenue (Year 1 of Tax Increment Generated) $623,050 Estimated Net Present Value (NPV) of Net Property Tl Generated (Revenue to the CRAILA Project Area through the last Tax Increment $4,535,723 Receipt Date) Estimated NPV of Utility User Tax Revenue (Revenue to City of Los Angeles) $368,737 Estimated NPV of T ransient Occupancy Tax Revenue (Revenue to City of Los Angeles) $22,181,616 *The figures provided in the table about are for estimation purposes only; actual fiscal impact or job creation may be higher or lower than these estimates. Standardized formulas were used to generate these figures and are based on accepted econometric practices and basic tax calculations taken from research performed by a variety of sources, including the Los Angeles Economic Roundtable, California Redevelopment Association, US Department of Housing and Urban Development, CRAILA, and the City and County of Los Angeles. The Project will also produce a significant positive impact to the City General Fund. SOURCE OF FUNDS No CRA/LA funds are required for this action. PROGRAM AND BUDGET IMPACT This action is consistent with the current adopted FY2011 Budget and Work Program. The City's General Fund will be positively impacted by the approval of this project as a result of the estimated $22 million of transient occupancy tax revenue as estimated above. ENVIRONMENTAL REVIEW The City of Los Angeles is the lead agency for the Project for purposes of CEQA. On July 24, 2008 the City of Los Angeles, acting through its Planning Department approved the project and adopted the MND (ENV2007-3932-MND). The CRA/LA's responsibility, as a Responsible Agency under CEQA, is to consider environmental effects of the Project as shown in the MND prepared by the lead agency prior to acting on the Project. Since the adoption of the MND and approval of the project by the City Planning Department, there have been minor changes to the project. Evaluation of the potential environmental impacts of the changes by CRA/LA staff concluded that no new significant effects that had not already
SELMA HOTEL OPA PAGE6 been addressed in the adopted MND would occur. With adoption of the attached environmental resolution (Attachment C), no further environmental review is required pursuant to CEQA. Council President Eric Garcetti supports this project. Christine Esse! Chief Executive Officer By: Calvin E. Hollis Chief Operating Officer Real Estate and Economic Development There is no conflict of interest known to me wh ich exists with regard to any CRA/LA officer or employee concerning this action. ATTACHMENTS Attachment A: Attachment B: Attachment C: Location/Site Map Resolution Adopting Land Use Findings and Determinations Environmental Resolution
cc: Sharon Gin, Office of the City Clerk (Original & 3 Copies on 3-hole punch) Lisa Johnson Smith, Office of the GAO lvania Sobalvarro, Office of the CLA Steve Ongele, Office of the Mayor Noreen Vincent, Office of the City Attorney Council President Eric Garcetti, CD 13
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THE COMMUNITY REDEVL._OPMENT AGENCY OF THE CITY Or LOS ANGELES, CALIFORNIA Attachment B Resolution Adopting Land Use Findings and Determinations RESOLUTION NO. RESOLUTION ADOPTING CERTAIN FINDINGS AND DETERMINATIONS APPROVING DEVELOPMENT WITH FLOOR AREA IN EXCESS OF FOUR AND ONE HALF TIMES THE DEVELOPMENT SITE LOCATED AT 6417 SELMA AVENUE IN THE HOLLYWOOD REDEVELOPMENT PROJECT AREA WHEREAS, on May 7, 1986, the Agency originally adopted the Hollywood Redevelopment Plan ("Redevelopment Plan"); and WHEREAS, on May 20, 2003, the Agency adopted the First Amendment to the Redevelopment Plan ("Amended Redevelopment Plan"); and WHEREAS, Section 506.2.3 of the Amended Redevelopment Plan allows individual development projects within the Regional Center Commercial designation to exceed 4.5:1 FAR but not greater than 6:1 FAR if the development meets certain objectives and upon the CRA/LA Board of Commissioners making certain findings and determinations; and WHEREAS, the intent of the Amended Redevelopment Plan is to focus high quality residential urban development, among other uses, within the Regional Center Commercial designation in areas well served by adequate transportation facilities; and WHEREAS, the Project Site is located approximately 0.4 miles (2,200 feet) from the HollywoodNine Metro Station and approximately 600 feet from major bus routes along Hollywood Boulevard and Sunset Boulevard so is in reasonable proximity to high capacity transportation facilities; and
2 WHEREAS, the Project totals approximately 73,800 square feet on a Site totaling approximately 13,923 square feet or about 5.3 times the area of the Site; and WHEREAS, the Project will encourage the development of appropriately visitor serving uses and will provide and maintain substantial, well-designed, public open space in the Project Area; NOW, THEREFORE, BE IT RESOLVED: The CRA/LA permits development in excess of 4.5:1 FAR, but not greater than 6:1 FAR, on the Project Site located at 6417 Selma Avenue and makes the following findings and determinations: 1) The proposed development conforms to the provisions and goals of the Redevelopment Plan and any applicable Design(s) for Development or requirements of the Hollywood Boulevard District. The proposed Project conforms to the provisions and goals of the Redevelopment Plan in that it will: Promote a balanced community meeting the needs of the residential, commercial, industrial, arts and entertainment sectors. Promote and encourage development of open spaces necessary to support attractive residential neighborhoods and commercial centers. 2) Permitting the proposed development serves a public purpose objective such as: the provision of additional open space, cultural facilities, public parking, or the rehabilitation of an arch itecturally or historically significant building. The proposed Project will improve and maintain the public alley adjacent to the Site allowing for outdoor dining and a pleasant pedestrian environment. 3) Any adverse environmental effects especially impacts upon the transportation and circulation system of the area caused by proposed development shall be mitigated or are overridden by other social,
3 economic or physical considerations, and statements of findings are made. All adverse environmental effects will be mitigated. In addition, the Project will provide the following additional environmentally responsible features: LEED Silver Certification by the U.S. Green Building Council. The Project will provide bicycles and a bike share program as part of a Transportation Demand Management Plan. The Project will implement a car share program as part of a Transportation Demand Management Plan. The Project will provide a centralized trash compacting facility for use by the Project and surrounding uses; and will coordinate a recycling program with adjacent businesses, including food waste composting.
THE COMMUNITY REDEVeLOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA Attachment C RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA, CERTIFYING THAT IT HAS REVIEWED AND CONSIDERED THE CITY OF LOS ANGELES MITIGATED NEGATIVE DECLARATION, FOR THE SELMA HOTEL PROJECT IN THE HOLLYWOOD REDEVELOPMENT PROJECT --------------- WHEREAS, 6417 Selma LLC, the project developer, proposes to construct a nine story building, consisting of a seven story hotel atop two stories of parking (for a total of 9 stories), with of approximately 73,800 square feet; and WHEREAS, the City of Los Angeles ("City") was the lead agency under the California Environmental Quality Act ("CEQA") for the Project and prepared a Mitigated Negative Declaration, ENV 2007-3932- MND ("MND"), for the Project; and WHEREAS, the MND for the Project was adopted and the Project was approved by the City Planning Commission on July 24, 2008. NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency ofthe City of Los Angeles (CRA/LA), California, as follows: 1. The CRA/LA Board of Commissioner's discretionary approval is required to enter into an Owner Participation Agreement with the developer allowing for an increase in development density from 4.5 to 5.3 times the area of the development site. 2. Accordingly, the CRAILA is a Responsible Agency pursuant to CEQA (Public Resources Code Section 21069, State CEQA Guidelines Section 15381 ). As a Responsible Agency, the CRAILA Board of Commissioners considered the environmental effects of the Project as shown in the City of Los Angeles' MND. (State CEQA Guidelines Section 15096.) 3. Based on such review and consideration, the CRA/LA Board of Commissioners hereby determines; a. No substantial changes are proposed in the Project that will require major revisions to the MND. b. No substantial changes have occurred with respect to the circumstances under which the Project is being undertaken that will require major revisions to the MND; and c. No new information of substantial importance to the Project, which was not known or could not have been known at the time the MND was prepared, has become available. ADOPTED: