Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
MARCH 20, 2019
Subject
SUBJECT: JOINT DEVELOPMENT IN TAYLOR YARD
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to amend an existing ground lease with Taylor Yard Commercial, LLC ("TYC") or its successor to:
A. CHANGE the scope of development under the existing ground lease from approximately 16,690 square feet of retail space to approximately 56 units of affordable housing;
B. EXTEND the deadline for commencement of construction under the existing ground lease from April 1, 2019 to April 1, 2022;
C. PROVIDE for further extensions of this deadline to April 1, 2024, if deemed necessary or prudent;
D. DELETE the requirement under the existing ground lease for the payment of percentage rent; and
E. EXTEND the term of the existing ground lease to meet the requirements of TYC's funding partners, provided that such term shall not extend beyond March 31, 2092.
Issue
ISSUE
Metro's existing ground lease requires the tenant, TYC, to construct 16,690 square feet of retail space on a 0.75-acre portion of the Metro's ownership in Taylor Yard. The ground lease also requires TYC to commence construction of the retail space prior to April 1, 2019. Because of development challenges further described below, TYC will not be able to meet this deadline. To avoid a default under the ground lease and to allow for a more viable development of the premises, an amendment to the existing ground lease is required. This amendment will extend the term of the ground lease and the construction commencement deadline, change the scope of development from retail space to affordable housing, and delete the percentage rent payment. Each of these changes requires Board authority.
Background
BACKGROUND
Since 2008, McCormack Baron Salazar, the parent company of TYC, and LA Urban Homes have been developing a 17-plus acre portion of Metro's Taylor Yard property in t...
Click here for full text