Metro - File #: 2023-0236

• File #: 2023-0236
• Type: Agreement
• Status: Passed
• File created: 3/30/2023
• In control: Planning and Programming Committee
• On agenda: 7/19/2023
• Final action: 7/27/2023
• Title: AUTHORIZE the Chief Executive Officer or designee to execute an amendment to the Exclusive Negotiations Agreement and Planning Document (ENA) with Walter J Company (Developer) to extend the term for one year with the option to further extend the term for two additional one-year periods. The ENA provides for the joint development of Metro-owned property at the Westlake/MacArthur Park B/D (Red/Purple) Line Station with approximately 434 market rate residential units, 234 income-restricted units, a hotel, commercial office space, and neighborhood serving retail including space for local vendors (Project).
• Sponsors: Program Management (Department), Maria Luk
• Indexes: Budgeting, Central Los Angeles subregion, City of Los Angeles, Construction, Exclusive Negotiation Agreement, Housing, Joint development, Joint Development Agreement, Joint Development Policy, Macarthur Park, Maintenance, Maintenance practices, Maps, Metro Bike Share, Metro Rail B Line, Metro Rail D Line, Operations and Maintenance, Outreach, Phase B (Project), Project, Safety, San Fernando Valley subregion, Security, South Bay Cities subregion, Transit Oriented Community, Westlake, Westlake/Macarthur Park Station, Westside Cities subregion, Westside/Central Service Sector, Zoning
• Related files: 2023-0608

Date	Action By	Action	Result
7/27/2023	Board of Directors - Regular Board Meeting

Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
JULY 19, 2023


Subject
SUBJECT: WESTLAKE/MACARTHUR PARK STATION JOINT DEVELOPMENT

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer or designee to execute an amendment to the Exclusive Negotiations Agreement and Planning Document (ENA) with Walter J Company (Developer) to extend the term for one year with the option to further extend the term for two additional one-year periods. The ENA provides for the joint development of Metro-owned property at the Westlake/MacArthur Park B/D (Red/Purple) Line Station with approximately 434 market rate residential units, 234 income-restricted units, a hotel, commercial office space, and neighborhood serving retail including space for local vendors (Project).

Issue
ISSUE

In August 2020, the Metro Board of Directors (Board) authorized the execution of an ENA with the Developer to support the joint development of the Project. The ENA was executed in February 2021. Since that time, the Developer has advanced predevelopment activities, including design development, community engagement, and the preparation of an entitlements package to be submitted to the City of Los Angeles (City). The ENA is set to expire in August 2023, and an extension of the ENA term is necessary to continue negotiations activities that include: (a) review of the schematic design; (b) Developer-led stakeholder outreach; (c) responding to City Planning questions/comments on the entitlements and environmental clearance application; and (d) negotiating and finalizing a ground lease and other transaction documents.
Background
BACKGROUND

In August 2020, the Metro Board approved an ENA (Approved ENA/Project) that was the product of a revised and updated unsolicited joint development proposal from the Developer for the development of a mixed-use project inclusive of the 1.8 acres Metro-owned Plaza situated on the south side of Wilshire Bou...