Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
AUGUST 19, 2020
Subject
SUBJECT: WESTLAKE/MACARTHUR PARK JOINT DEVELOPMENT
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO) to execute an Exclusive Negotiations Agreement and Planning Document (ENA) with the Walter J Company (Proposer) for the joint development of Metro-owned property at the Westlake/MacArthur Park Station (Site) for a period of eighteen (18) months, with an option to extend up to twelve (12) additional months.
Issue
ISSUE
In June 2020, the Proposer submitted a revised Phase 2 unsolicited joint development proposal (Revised Phase 2 Proposal) for the development of the Site and adjacent property owned by the Proposer. In response to Planning and Programming Committee input, the Revised Phase 2 Proposal increases the percentage of income-restricted units (up to 80% of AMI) provided from 18% to 25% and dedicates another 10% to workforce housing. The Revised Phase 2 Proposal also strengthens community outreach through a Project Advisory Task Force to ensure a mechanism for continued feedback on the project. An ENA will allow further due diligence and community engagement to negotiate terms for a potential Joint Development Agreement (JDA) and Ground Lease.
Background
BACKGROUND
Metro received an unsolicited joint development proposal (Initial Proposal) from the Proposer in December 2017. In accordance with the Joint Development Unsolicited Proposals Policy (JD UP Policy), an evaluation committee composed of Metro staff from Joint Development, Operations, and Program Management reviewed the Initial Proposal and determined that it warranted additional consideration.
Consequently, the Proposer was invited to submit a more detailed proposal, which was received in August 2018 (Phase 2 Proposal). The Phase 2 Proposal was brought to the Planning and Programming Committee in February 2020. At the meeting, several Directors expre...
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