File #: 2024-0468   
Type: Project Status: Agenda Ready
File created: 7/2/2024 In control: Planning and Programming Committee
On agenda: 9/18/2024 Final action:
Title: CONSIDER: A. AUTHORIZING the Chief Executive Officer (CEO) or designee to execute and enter into a Joint Development Agreement (JDA) with NOHO Development Associates, LLC, a Delaware limited liability company (Developer), an affiliate of Trammell Crow Company, and associated Ground Leases (Ground Leases) and other related documents with Developer or its affiliates or qualified transferees, for the construction and operation of a mixed-use project on up to 11.8 acres of Metro-owned property located at the North Hollywood Metro Station (District NoHo or Project) in accordance with the Joint Development Summary of Key Terms and Conditions (Attachment A) upon receipt of concurrence by the Federal Transit Administration (FTA) and the California Transportation Commission (CTC); B. DETERMINING that the Board, acting as the governing body of the responsible agency under the California Environmental Quality Act (CEQA), after consideration of the whole of the administrative record, adopts the ...
Sponsors: Program Management (Department), Maria Luk
Indexes: Agreements, Alignment, Budget, Budgeting, California Environmental Quality Act, California Transportation Commission, Central Los Angeles subregion, City of Los Angeles, Construction, Contractors, Environmental Impact Report, Exclusive Negotiation Agreement, Federal Transit Administration, Financial analysis, Grant Aid, Guidelines, Housing, Joint development, Joint Development Agreement, Joint Development Policy, Metro Busway G Line, Metro Rail B Line, Metro Vision 2028 Plan, Mitigation, North Hollywood, North Hollywood Jd (Project), North Hollywood Station, Notice Of Determination, Outreach, Park and ride, Payment, Plan, Policy, Pollutants, Program, Project, Safety, San Fernando Valley subregion, South Bay Cities subregion, Southern California Association Of Governments, Strategic planning, Transfers, Transit centers, Transit Oriented Community, Westside Cities subregion, Zoning
Attachments: 1. Attachment A - Joint Development Summary of Key Terms and Conditions, 2. Attachment B - CEQA Findings of Fact & Statement of Overriding Considerations, 3. Attachment C - Mitigation Monitoring and Reporting Program, 4. Attachment D - Notice of Determination, 5. Attachment E - Site Plan and Rendering, 6. Presentation

Meeting_Body

PLANNING AND PROGRAMMING COMMITTEE

SEPTEMBER 18, 2024

 

Subject

SUBJECT:                     NORTH HOLLYWOOD JOINT DEVELOPMENT

 

Action

ACTION:                     APPROVE RECOMMENDATION

 

Heading

RECOMMENDATION

 

Title

CONSIDER:

 

A.                     AUTHORIZING the Chief Executive Officer (CEO) or designee to execute and enter into a Joint Development Agreement (JDA) with NOHO Development Associates, LLC, a Delaware limited liability company (Developer), an affiliate of Trammell Crow Company, and associated Ground Leases (Ground Leases) and other related documents with Developer or its affiliates or qualified transferees, for the construction and operation of a mixed-use project on up to 11.8 acres of Metro-owned property located at the North Hollywood Metro Station (District NoHo or Project) in accordance with the Joint Development Summary of Key Terms and Conditions (Attachment A) upon receipt of concurrence by the Federal Transit Administration (FTA) and the California Transportation Commission (CTC);

 

B.                     DETERMINING that the Board, acting as the governing body of the responsible agency under the California Environmental Quality Act (CEQA), after consideration of the whole of the administrative record, adopts the Findings of Fact and Statement of Overriding Considerations setting forth the reasons and benefits with full knowledge that significant impacts may remain (Attachment B), and the Mitigation Monitoring and Reporting Program (Attachment C) of the City of Los Angeles Environmental Impact Report No. ENV-2019-7241-EIR which was certified on August 22, 2023; and

 

C.                     AUTHORIZING the CEO or designee to file a Notice of Determination (Attachment D) with the Los Angeles County Clerk and the State of California Clearinghouse.

 

Issue

ISSUE

 

Since 2016, staff and the Developer have collaborated under a Board-authorized Exclusive Negotiation Agreement and Planning Document (ENA) to conduct community outreach, refine the Project design, negotiate key terms and conditions for a JDA and form of Ground Lease, and review CEQA studies associated with the Project. Staff recommends that the Board authorize the execution of a JDA and subsequent Ground Leases according to the negotiated terms and conditions presented herein; and adopt environmental findings consistent with CEQA.

 

Background

BACKGROUND

 

In 2015, Metro conducted an extensive community outreach process, which revealed the desire for intensified urban uses, community open space, and public art, all of which were summarized into Development Guidelines and adopted by the Board in December 2015. Those Development Guidelines were the basis of a competitive solicitation for the joint development of Metro-owned property at the terminus of the Red and Orange Lines (Site). Through that competitive solicitation, Trammell Crow Company and Greenland USA were together selected as the joint development partners for the Site and entered into a Short-Term ENA with Metro in 2016. As milestones and requirements of the Short-Term ENA were met, the Board authorized the execution of the full ENA in 2017 (as amended and extended in May 2019, December 2019, June 2021, and May 2024). At the time of the initial execution of the full ENA, Greenland USA exited the partnership, leaving Trammell Crow Company as the sole party in the development entity. Over the ENA period, the Developer and Metro have worked closely and diligently to advance the Project through scoping, design, entitlements, CEQA clearance, and financial and transaction negotiations.

 

 

Community Outreach

 

Throughout the ENA term, the Developer has led ongoing outreach with the community through public meetings at locations immediately proximate to the Site, one-on-one meetings with key stakeholders and business owners, and presentations for nearly 24 community organizations. In total, the team has presented the Project at nearly 100 meetings.

 

In the Spring of 2024, staff partnered with National CORE, the Developer’s affordable housing partner, and Pacoima Beautiful, a local community-based organization, to conduct outreach around transit and active transportation improvements adjacent to the first affordable housing building. Community meetings held at Groundwork Coffee Co. and online surveys revealed preferences for additional seating, landscaping, and lighting, more real-time signage, and improved maintenance and security. 

 

Discussion

DISCUSSION

 

The District NoHo Project would be the largest joint development in Metro’s history, including more affordable homes than any other joint development, more total units than any other joint development, and would provide nearly 15% of the homes in Metro’s 10,000 home commitment. While two other major joint development efforts were attempted on the Site in 2001 and 2007, the current Project, including both the initial and secondary areas, is the only effort to have been environmentally cleared, entitled, and to have been negotiated to the point of seeking Board approval. If approved, the Project would integrate housing, office, and retail with a multi-modal transit hub to create a model transit-oriented community (TOC) for the Southern California region.

 

The Metro Joint Development Policy, adopted in 2021, is aimed at building as much housing as possible, as quickly as possible, for those who need it most. Planning for the District NoHo Project predates the current Policy, but nevertheless is supportive of the spirit of the Joint Development Goals as the Project stands to house thousands of Angelenos, including hundreds of low-income individuals, when completed.

 

Staff, with the support of consultants, County Counsel, and outside counsel have negotiated several iterations of the proposed transaction to ensure alignment with the Vision 2028 Strategic Plan, the Equity Platform Framework, the TOC Policy, and the Joint Development Policy. Staff believe that the deal terms would expeditiously deliver new housing to a range of income levels and provide additional public benefits while protecting and enhancing Metro’s ability to serve its customers. Key terms of the JDA and the form of Ground Leases are summarized in Attachment A.

 

Site

 

The proposed Project would occupy two distinct subareas of the Site. Blocks 1, 2, 3, 7, and 8 of the Project would be constructed on approximately 8.8 acres of vacant and underutilized Metro-owned property located north of active transit and park and ride facilities (the Primary Development Area, as shown in Attachment E - Site Plan and Rendering). The Secondary Development Area (shown in Attachment E as Blocks 4, 5 and 6) is currently occupied by bus boarding and layover facilities, park and ride uses, and the station’s primary plaza and portal which would need to be relocated before proceeding.

 

Phasing and Transit Center

 

Originally, it was envisioned that the new Transit Center would be delivered together with the private development. However, the COVID-19 pandemic, rising interest rates, high construction costs, and Measure ULA (see further discussion under Financial Consideration) resulted in less funding available for the Transit Center.  The Project has been bifurcated to allow the majority of the housing to be constructed on vacant and underutilized land in the Primary Development Area that is available today. If Metro, in its sole and absolute discretion, decides to move forward with the replacement Transit Center, this would make the Secondary Development Area available for additional housing, retail, and office uses on Blocks 4, 5, and 6.

 

The Project’s bifurcated structure allows for the accelerated delivery of at least 880 units of housing, while preserving Metro’s options to fund and construct the new Transit Center later.  To-date staff have secured approximately $24 million in grant funds toward the estimated $59.5 million cost of the Transit Center. Together with upfront ground rent payments from the Primary Development Area, a total of $38.4 million in funding will have been secured for the Transit Center. Future ground rent is adequate to repay the remaining cost of the Transit Center over the 99-year terms of the ground leases, however it is not available to pay for the Transit Center upfront.  Staff will continue to identify near-term solutions to close the funding gap including City funds, State grants, low-interest infrastructure loans that could be repaid with revenue from the Project, and other value capture tools. Once sufficient funds are in place to construct the Transit Center, Metro would notify the Developer that they may proceed with development of Blocks 4, 5, and 6 in the Secondary Development Area. 

 

Development Description

 

The Project includes a mix of high-rise and low-rise buildings, retail and potential office space, and a multi-modal shared street connecting the new blocks to the B Line portal, which would be completed in phases as follows:

 

Primary Development Area

                     Block 1 (approximately 420 mixed-income homes and 10,000 sq ft of retail) and Block 7 (approximately 150 homes affordable to residents earning less than 60% of the Area Median Income (AMI)) and would be completed first.

                     Block 2 (approximately 150 mixed-income homes) and Block 3 (approximately 160 homes affordable to residents earning less than 60% AMI) would be completed next.

                     Block 8 (approximately 400,000 sq ft of office and 18,000 sq ft of retail) may be completed provided that both affordable housing buildings are completed, or an anchor tenant has been secured.

 

The Developer intends to construct Block 8 as a commercial office building; however, development rights for Block 8 and Blocks 4, 5, and 6 may be exchanged. If Block 8 is developed as residential, the development plan for Blocks 4, 5, and 6 will be reduced by a corresponding number of transferred units from the original Block 8 plan. The Developer may also pursue amendments to the existing entitlements package with the City of Los Angeles to permit the construction of additional units on Blocks 4, 5, and 6 if Block 8 is developed as residential.

 

Secondary Development Area

Metro, in its sole and absolute discretion, may provide for the development of Blocks 4, 5, and 6 by removing existing local bus and parking facilities from the Secondary Development Area.  It is envisioned that the bus facilities would be relocated to the new Transit Center, but these could be relocated to another site of Metro’s choosing. Blocks 4, 5, and 6 would frame a large lawn and plaza connecting the B line portal and includes:

 

                     Approximately 600 housing units, at least 30 of which would be affordable to residents earning 80%-120% AMI

                     Approximately 20,000 sq ft of retail space

                     Two (2) acres of publicly accessible open space

 

Affordable Housing

The Developer’s original RFP response included only 750 total units-of which 262 units were income-restricted-and fewer public benefits. Through early negotiations, staff pushed the Developer to deliver more housing and benefits in alignment with the underlying redevelopment plan for the area. In addition, the Developer plan is consistent with the community’s priorities, identified in the 2015 Development Guidelines, which called for a vibrant, transit-oriented community with a public gathering space and an intensity of uses.

 

The Project now includes at least 311 housing units reserved for individuals and families earning less than 60% of the AMI for Los Angeles County to be delivered in the first two phases of the development (Blocks 3 and 7). In response to community concerns about the amount and integration of affordable housing, staff worked with the Developer to integrate 55 additional income-restricted units for individuals and families earning less than 120% of the AMI into the first market-rate buildings (Blocks 1 and 2), resulting in a total of 366 income-restricted units to be delivered in the initial phases of the project. In addition, at least 5% of residential units in Blocks 4, 5, and 6 would also be restricted to moderate-income households. Affordable housing buildings would be provided with shared access to amenities in mixed-income buildings. In total, the development of the Project would significantly increase the number of income-restricted units in Metro’s portfolio and make substantial progress toward meeting the Board’s established goal of delivering 10,000 units by 2031.

 

Additional Public Benefits

The Project provides a large package of public investments and benefits. All phases of the Project will be subject to Project Labor Agreements that mandate 100% union labor for construction as well as Metro’s Construction Careers Policy. Local retailers and eateries will also be given the opportunity for “first look” leasing. Additional amenities in the Primary Development Area include a refurbished East Portal canopy (estimated $1 million value) and a two-way Class IV bicycle facility. The Secondary Development Area will feature two (2) acres of maintained and programmed community open space.

 

JDA/Ground Lease Terms

 

After the execution of the JDA, the Developer must secure the necessary permits, financing, and contractors to begin construction. Following the Developer’s satisfaction of the conditions required to move forward on each phase, as set forth in the JDA, the Developer (or a qualified transferee) would be required to execute the ground lease for that phase (there would be one ground lease per block), beginning with the first affordable block.

 

Term

The JDA terminates 15 years after the full execution of the JDA (the Effective Date). However, the JDA may be extended by up to seven years beyond the original JDA term, solely as a result of unavoidable delays. The Developer must cover Metro costs during the JDA term.

The ground lease term for each block would be 99 years. The income restrictions for all residential blocks would remain in place for the 99-year term.

 

Schedule of Performance

The Developer shall execute Ground Leases on at least one affordable housing phase (Blocks 3 or 7) and one mixed-residential or commercial phase (Blocks 1, 2, or 8) on the Primary Development Area within two (2) years after execution of the JDA. Execution of a Ground Lease will require evidence of payment and performance bonds equal to 100 percent of the cost to complete the construction project and a Schedule of Performance that includes outside dates for commencement and completion of the construction. Failure to meet these deadlines will result in default. This initial Ground Lease deadline may be extended by up to four years, after which the Developer would be in default, and Metro would be able to offer the property to another developer.

 

Further, the Developer must execute Ground Leases for at least one affordable housing phase that was not part of the initial Ground Leases (Blocks 3 or 7) and at least one market residential or commercial phase that was also not part of the initial Ground Leases (Blocks 1, 2, 8 and, if the Secondary Development Area has become available for development, Blocks 1, 2, 8, 4, 5, or 6) within eight  years after execution of the JDA. This subsequent Ground Lease deadline may be extended by up to four years, after which point Metro would be allowed to offer the Site to another developer.

 

Financial Consideration

 

Revenues generated would accrue to Metro in a combination of one-time payments and ongoing participation in project revenues. The total estimated present value of the revenue is approximately $45.4 million using a 7.5% discount rate. Key components include:

 

Development Area

Revenue Source

Timing

Estimated Annual Rent (at stabilization)

Estimated Present Value

Primary Development Area

Non-refundable deposit

One-time

N/A

 $2,000,000

 

Upfront capitalized payments

One-time on ground lease of each Blocks 1, 3 and 7

N/A

 $13,683,654

 

Percentage Rent

1.15% average of ground lease revenue for years 1 through 65;   2.15% average for years 66 through 99 

$1,082,939

$19,634,726

 

Signage Revenue

13% average of gross signage revenue for all years

$150,000

$2,497,918

Estimated Revenue

$37,816,298

Secondary Development Area

Gross rent revenues

0.75% of ground lease revenue for years 1 through 65;   1.75% for years 66 through 99 

$485,958

$6,937,725

 

Signage Revenue

15% of gross signage revenue for all years

$50,000

$634,523

Estimated Revenue

$7,572,248

Total Estimated Revenue

$45,388,546

 

 

United to House LA Ballot Measure (Measure ULA)

In November 2022, City of Los Angeles residents approved the United to House LA ballot measure (Measure ULA). Measure ULA created the ULA Tax, imposing a real property transfer tax of 4% on properties conveyed over $5 million and 5.5% on properties conveyed over $10 million. The ULA Tax is imposed on top of the City and County’s existing tax of 0.56% and went into effect on April 1, 2023. The increased transfer tax applies to the value of transactions at sale, which includes long-term ground leases. ULA does not exempt public land but does exempt stand-alone affordable housing projects constructed by non-profit developers.

 

The Project deal structure anticipates that each development block would transfer to a permanent owner/operator once fully leased and income stabilized. The original Project financial structure, which predated ULA, did not anticipate this level of transfer tax. The proposed deal terms include that if the transfer tax rate in effect at the time is less than what is in effect today, Metro would receive the difference.  The amount paid to Metro could be as much as $110 million over the entirety of the Project. 

 

Value Analysis

The sum of the revenue package is estimated to have a net present value of approximately $45.4 million. Because the revenues to Metro would accrue with the execution of each phase, and the Project includes many “non-market” elements such as open space, preservation of Metro right of way, new privately maintained public streets including District Way, etc., identifying a fair market value for the transaction is challenging. To assist, Metro retained three independent financial consultants to review the deal terms and assist with an assessment of value.

 

The consultants conducted a detailed analysis of the Developer’s proforma financial projections, including assumptions regarding rents, costs, phasing, and absorption. In addition, they prepared their own analysis based on the project profile to independently verify the residual land value. Finally, additional analysis was conducted to test the Project’s sensitivity to different deal structures, so that Metro would be able to receive the greatest value while preserving the Project’s feasibility. The financial consultants each concluded that the base package of revenues is reasonable after deducting additional costs for the public benefits provided in the Project. In addition, the participation in future transfers and the provision to recapture revenues in the event of reduced transfer taxes, preserves significant additional upside potential for Metro.

 

Additional Considerations

 

California Transportation Commission and Federal Transportation Administration

As the Site was acquired in the early 1990s using funding from both the FTA and State bonds, Metro has submitted the terms of the JDA and form of Ground Leases to the FTA and the CTC for review and concurrence. If approved by the Board, the JDA and Ground Lease would be executed upon receipt of FTA and CTC concurrence.

 

Surplus Land Act

Execution of each ground lease under the JDA will be subject to the Surplus Land Act (SLA). However, staff have determined that the agency’s portfolio meets eligibility requirements for a programmatic exemption under Section 103 of the Updated SLA Guidelines, which would exempt the Site and future joint development projects from disposition requirements under the SLA. Over the coming months, staff will update the Joint Development Policy to ensure compliance with all SLA provisions. Staff plan to bring the updated Policy to the Metro Board in early 2025 with the recommendation that the Board execute a declaration of exempt surplus land on active and future JD sites (including this Site).

 

CEQA Actions

 

Metro is a responsible agency under CEQA because it has discretionary approval power over the Project and the Transit Center, for which the City of Los Angeles has prepared an environmental impact report (EIR) via the District NoHo Specific Plan. Both the Project and the Transit Center were analyzed together in the EIR. The Developer held two virtual EIR scoping and feedback sessions-one in English and one in Spanish-for members of the surrounding community in July 2020. During these meetings, community members shared feedback on potential project impacts and mitigation measures, which the Developer incorporated into the final EIR submittal. The EIR No. ENV-2019-7241-EIR was approved and adopted by the City of Los Angeles on August 22, 2023.

 

Before entering into the JDA and Ground Leases, Metro must consider the environmental effects of the Project as shown in the EIR, make findings for each significant environmental effect, and make a statement of overriding considerations for significant effects that cannot be avoided or substantially lessened, which are included as Attachment B - CEQA Findings of Fact and Statement of Overriding Considerations.

 

As evaluated in the EIR, implementation of the Project and Transit Center would result in significant direct and cumulative impacts that cannot be feasibly mitigated with regard to operational regional air pollutant emissions, regional concurrent construction and operational air pollutant emissions, historic resources (Lankershim Depot), and on-site and off-site noise and vibration (human annoyance) during construction.

 

Notwithstanding the Project and the Transit Center’s significant unavoidable impacts, the Project and Transit Center is being proposed to redevelop the area around Metro’s North Hollywood Station with a high-density, mixed-use development, which is transit- and pedestrian-oriented and provides housing and jobs in the North Hollywood community. The Project and Transit Center support the goals, objectives, and policies of applicable larger-scale regional and local land use plans to improve mobility, accessibility, reliability, and travel safety for people and goods. In addition, the project supports the reduction of greenhouse gas emissions by developing new residential, retail, restaurant, and office uses on a site that is well-served by public transit, including Metro’s B Line subway, G Line busway, as well as Metro local bus lines, LADOT Commuter Express, Santa Clarita Transit, and the Burbank Bus.

 

Furthermore, the Project would provide a variety of open space areas, supporting the objective to encourage open space for recreational uses. Specifically, the Project would provide approximately 87,000 square feet of which would be publicly accessible, privately operated, and maintained.

 

If approved, Metro would be the agency charged with enforcing the Mitigation Monitoring and Reporting Program, included as Attachment C, for the Transit Center. The City of Los Angeles would be responsible for enforcing the Mitigation Monitoring and Reporting Program for the Project.

 

Based on the above, the Project and Transit Center are consistent with the overall vision of the Southern California Association of Governments (SCAG), the City of Los Angeles, and Metro to locate supporting and compatible uses within one site to create sustainable communities near public transit and enhance the quality of life throughout the City and region. As such, the Project and Transit Center present several benefits that override the limited and temporary adverse environmental effects. Furthermore, no feasible alternative was identified that would eliminate all of the significant and unavoidable impacts. If authorized by the Board, Metro staff would file the Notice of Determination, included as Attachment D.

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

At the cost of the Developer, Metro would oversee the construction of the Project adjacent to Metro infrastructure to ensure that it does not adversely impact the continued safety of staff, contractors, and the public. Project oversight will be conducted via existing Metro processes: the Developer will submit Construction Workplans, Track Allocation Requests, and all other required documentation for review and approval by Metro staff. All safety measures and associated requirements to be met by the Developer and its construction contractor would be identified in the Ground Leases. All phases of the Project are anticipated to improve safety for patrons, Metro employees, and the public by activating underutilized Metro property with new homes and businesses that would provide for increased passive and active surveillance of the area.

 

Financial_Impact

FINANCIAL IMPACT

 

Metro’s financial compensation under the JDA and Ground Leases is fair and reasonable as determined by the third-party financial feasibility analysis. The estimated net present value of the JDA consideration for all phases in the Primary and Secondary Development Areas is $45.4 million, using a discount rate of 7.5%. The near-term contributions of this consideration, estimated to be approximately $15.7 million, would be immediately available to help fund the replacement Transit Center if Metro elects to relocate the Transit Center and allow development of the Secondary Development Area.

 

If the transfer tax effectuated by Measure ULA is eliminated or reduced prior to the Developer transferring completed mixed income or commercial blocks to a long-term owner/operator, Metro would receive additional payments totaling as much as $110 million. This payment would be made as each block is transferred and would be based on the valuation of the completed building and the transfer tax rate at the time of transfer.

 

Impact to Budget

Funding for activities related to the Project are included in the FY25 Budget under Project 401011 “North Hollywood Joint Development”, Cost Center 2210, and Metro staff, legal, and consultant costs (excluding JD staff and in-house counsel time, which are covered by the program budgets) would be recovered from the Developer. No Metro funds are used to entitle and construct the project.  The Transit Center, if pursued, would be evaluated and budgeted separately.

 

Equity_Platform

EQUITY PLATFORM

 

Feedback from extensive community engagement with affordable housing developers and Community Based Organizations in Fall 2015 was captured in the Development Guidelines and Request for Proposals for the Project. Community members emphasized the importance of including subsidized housing units, retail space for local businesses, and accessible walkways and bikeways, which informed the design and program for the Project, in focus groups and workshops during this period. Additional outreach was conducted by the Developer throughout the approvals period from Spring 2019 to Summer 2020 via eblasts, in-person and online community meetings and open houses in English and Spanish, stakeholder meetings with small businesses and community organizations, and in-person outreach to transit riders at the Station in English and Spanish. The Developer and Metro held nearly all community meetings and outreach events at and around the North Hollywood Station to facilitate participation from transit riders and residents of the surrounding Equity Focus Community. Further, meetings and events were held at various times-including during morning and evening rush hours and afterschool hours-to accommodate diverse schedules throughout the outreach process. Community members expressed a need for affordable homes and pedestrian- and cyclist-friendly amenities during outreach events and feedback sessions. The Project’s 366 income-restricted homes and public open space aim to address some of these priorities. In accordance with the Metro Equity Platform commitment to listen and learn from community members, public input has been incorporated to further shape and refine the Project by including significant open space and additional income-restricted units.

 

The community surrounding the Site, which includes Equity Focus Community designated census tracts, as well as Metro’s B and G Line riders, are disproportionally made up of low-income individuals and people of color. According to the American Community Survey’s 2022 5-year estimate data, within a half-mile walking distance of the Station, the average median household income is approximately $59,000 (approximately 71% of the Median Household Income for Los Angeles County). Research shows that individuals with lower incomes are more likely to ride transit than those with higher incomes: improvements to the Transit Center and bus service expansion would therefore positively impact the surrounding community by reducing disparities in access to high quality transit and opportunities in and outside the neighborhood.

 

The Project-which is located in a California Tax Credit Allocation Committee High Resource area, providing access to jobs, schools, and amenities-would include affordable housing units intended to benefit people with low incomes in the North Hollywood community.

 

Lastly, the Project would be constructed under a project labor agreement and would create over 15,000 one-time construction jobs and nearly 5,000 recurring jobs, as well as nearly $2 billion in one-time economic impact and over $1 billion in stabilized economic impact, according to a study by RCLCO Real Estate Consulting. The Project would also generate nearly $300 million in tax revenues for the City and County over its first 30 years.

 

Implementation_of_Strategic_Plan_Goals

IMPLEMENTATION OF STRATEGIC PLAN GOALS

 

The recommendations support strategic plan Goal 3 (Enhance communities and lives through mobility and access to opportunity), by bringing high-quality housing options to the doorstep of the Metro network and addressing the need for housing in the region.

 

Alternatives_Considered

ALTERNATIVES CONSIDERED

 

The Board could choose not to approve the recommendations. Staff is not recommending this option because the proposed Project and Transit Center are the product of nine years of careful study, robust outreach, iterative design, and dedicated effort by many teams. The negotiated project would bring much-needed housing, open space, construction, and permanent employment to the region, tax revenue to the City, and ground lease revenue to Metro. Electing not to authorize the execution of the JDA and Ground Leases would block the construction of approximately 1,481 homes including up to 311 low-income homes and 55 moderate-income homes.

 

Next_Steps

NEXT STEPS

 

Upon approval of the recommended actions, and receipt of necessary approvals by FTA and CTC, staff would complete and execute the JDA in substantial accordance with the terms and conditions outlined in Attachment A and file the Notice of Determination with the county clerk and State Office of Planning and Research.

 

Using funds received through a SCAG Regional Early Action Planning grant, staff will continue to advance the design and engineering for the Transit Center in coordination with LADWP and other City Departments. Staff will continue to explore funding options for the Transit Center while coordinating with Program Management to update the Transit Center cost estimate as the design advanced.

 

Attachments

ATTACHMENTS

 

Attachment A - Joint Development Summary of Key Terms and Conditions

Attachment B - CEQA Findings of Fact and Statement of Overriding Considerations

Attachment C - Mitigation Monitoring and Reporting Program

Attachment D - Notice of Determination

Attachment E - Site Plan and Rendering

 

Prepared_by

Prepared by:                      Mica O’Brien, Senior Planner, Transit Oriented Communities, (213) 922-5667

Wells Lawson, Deputy Executive Officer, Transit Oriented Communities, (213) 547-4204
Nicholas Saponara, Executive Officer, Transit Oriented Communities, (213) 922-4313

Holly Rockwell, Senior Executive Officer, Countywide Planning & Development, (213) 547-4325

 

Reviewed_By

Reviewed by:                      Ray Sosa, Chief Planning Officer, (213) 922-2920