Development
Agreements on the Rise |
By Jorge Casuso
August 13, 2008 – After approving only two development agreements in
the previous five years – one a small landmark project – the City
Council has approved a development agreement for a major development this year
and is negotiating three others.
The projects include the Civic Center Village, a sprawling development across
from City Hall that will include some 325 residential units that the council
approved under a development agreement this year.
Currently being negotiated is an approximately 150,000-square-foot entertainment
and post-production facility in the city’s industrial lands, a more than
350-unit complex at a trailer park site and the conversion of a large office
tower on Wilshire Boulevard into a hotel.
Slow-growth advocates, and several City officials have expressed concern that
the council could be resorting to a liberal a use of development agreements,
which allow developers to exceed zoning and land use standards, while remaining
consistent with local planning policies under the general plan.
“In general I think the City is using too many development agreements,”
said City Council member Ken Genser, who cast the only vote against entering
into a development agreement with Lionsgate for the studio facility.
“But perhaps it’s because the new zoning is not in place,”
Genser added, referring to the update of the City’s Land Use and Circulation
Element (LUCE), which has been in the works for nearly four years.
At the SMRR convention August 3, Genser told the group’s members that
the “huge development agreements on the eastern side of the City”
that spurred him to seek a council seat 20 years ago are “an issue (that)
is very much alive now.”
Planning Commissioner Jay Johnson also said he is concerned with the number
of agreements being negotiated.
“It’s a big change,” said Johnson, who is also a member of
SMRR. “When the process is changed because some group wants to fast track
the process, that’s not good.
“I’m concerned that’s happening,” he said. “I’m
not convinced. I’m concerned.”
Most City officials defend the recent upsurge in the use of development agreements,
noting that the unique nature of the projects justify their use.
“The trailer park is a unique situation,” said Council member Pam
O’Connor. “Lionsgate is a big parcel. It’s an unusual parcel.”
O’Connor notes that development agreements are costly for applicants
to enter into and often result in benefits for the City, which has negotiated
for such perks as more open space and daycare facilities.
“It’s more expensive for the applicant to do, so it’s
usually used for a larger project,” O’Connor said. “You
really have more room as a City government to negotiate and say
what you want.”
O’Connor noted that development agreements require council approval,
giving the public a chance to weigh in.
“It would be open to debate whether to do it,” she said.
City planners agree that the nature of the projects under consideration call
for development agreements.
“It’s not necessarily a new trend,” said City Planner Amanda
Schacter. “These are big parcels. Lionsgate is an extremely large project.”
“There’s more discretion for the council,” said City Planner
Bruce Leach.
The Lionsgate project calls for redeveloping a 1.8-acre site at 2834 Colorado
Avenue in the Light Manufacturing and Studio District (LMSD) for the company’s
international corporate headquarters.
Lionsgate plans to demolish one-story commercial buildings occupied by a variety
of small industrial businesses and building a four-story, 153,600- square-foot
entertainment and post-production facility with 584 subterranean parking spaces.
(“Lionsgate Has Paws on New Entertainment Studio,” December 18,
2007)
Before this year, the last large project negotiated under a development agreement
was approved in 2004, when developer Hines Lantana was given the go-ahead to
expand the Lantana Media Campus by 194,000 square feet. (“Lantana Expansion
Approved, Residents Divided,” September 16, 2004)
The development agreement unanimously approved by the council required the
developer to pay more than $2 million in traffic mitigation and donations to
schools and City childcare.
City officials also say the development agreement currently being negotiated
for the 3.85-acre Village Trailer Park site to build 240 condominiums and 109
rent-controlled units is needed to address unusual circumstances.
Planning officials are negotiating how best to help relocate and compensate
some 80 households facing eviction to pave the way for the project, which includes
8,030 square feet of retail area, 34 above-ground parking spaces and a subterranean
garage with 469 spaces. (“Part I: Relocation Offer Raises Fears Among
Trailer Park Tenants,” May 28, 2008)
Also unusual, City officials said, is the project to convert the landmark office
and retail building at 710 Wilshire to a 256-room hotel and add a wing with
16 residential units and hotel rooms.
Negotiations for the project, which calls for retail on the ground floor and
480 subterranean parking spaces, has have be put on hold, planning officials
said.
“They wanted us to hold off for the moment,” said City Planner
Jing Yeo, who is in charge of the project. “The application is still active.”
While most City officials say the projects under negotiation are unusual, slow
growth activists worry that the number of development agreements is excessive
and could grow, as several major projects move ahead.
“We are at a tipping point,” said Diana Gordon, who heads the Residents
Initiative to Fight Traffic, which would cap most commercial development at
75,000 square feet a year over the next 15 years. “We have very little
margin of error.” (“Anti-Development Initiative Headed for Ballot,”
May 20, 2008)
Gordon notes that the zoning standards being hammered out in the LUCE process
could be rendered moot by development agreements that would be reduced under
RIFT. (“Council Goes with 10-foot Bonus,” July 24, 2008)
“LUCE is just ‘trust us, we know what’s best for the city,”
Gordon said. “We couldn’t get the City to put responsible limits
on what could be developed in any given year.”
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