Metro - File #: 2024-0035

• File #: 2024-0035
• Type: Project
• Status: Agenda Ready
• File created: 1/17/2024
• In control: Planning and Programming Committee
• On agenda: 3/20/2024
• Final action: 3/28/2024
• Title: CONSIDER: A. AUTHORIZING the Chief Executive Officer, or designee, to execute and enter into a joint development agreement ("JDA"), ground lease ("Ground Lease"), and other related documents with Chavez Fickett, L.P. ("Developer"), an affiliate of Abode Communities, for the construction and operation of a mixed-use, affordable housing project ("Project") on approximately 68,100 square feet (1.56-acres) of Metro-owned property located at the corner of Cesar E. Chavez Avenue and Fickett Street in Boyle Heights ("Site") in accordance with the Summary of Key Terms and Conditions attached hereto as Attachment A; B. AUTHORIZING a discount to the appraised fair market rental value for the Site of 67% or $6,900,000 under the Ground Lease as set forth in the Summary of Key Terms and Conditions for the Ground Lease; and C. FINDING that the Project is exempt from the California Environmental Quality Act ("CEQA"), consistent with the environmental studies and reports set forth in Attachment B,...
• Sponsors: Program Management (Department), Maria Luk
• Indexes: Agreements, Boyle Heights, Budgeting, California Environmental Quality Act, Central Los Angeles subregion, Chavez & Fickett Jd (Project), Construction, Contractors, Exclusive Negotiation Agreement, Federal Transit Administration, Grant Aid, Guidelines, Housing, Joint development, Joint Development Agreement, Joint Development Policy, Market value, Metro Rail E Line, Outreach, Payment, Project, Property Agreement, Request For Proposal, Safety, Soto Station, Subsidies, Transit Oriented Community, Transit Oriented Development, Westside/Central Service Sector, Zoning
• Related files: 2024-0261

Date	Action By	Action	Result
3/28/2024	Board of Directors - Regular Board Meeting

Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
MARCH 20, 2024

Subject
SUBJECT: CESAR E. CHAVEZ AND FICKETT JOINT DEVELOPMENT

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
CONSIDER:

A. AUTHORIZING the Chief Executive Officer, or designee, to execute and enter into a joint development agreement ("JDA"), ground lease ("Ground Lease"), and other related documents with Chavez Fickett, L.P. ("Developer"), an affiliate of Abode Communities, for the construction and operation of a mixed-use, affordable housing project ("Project") on approximately 68,100 square feet (1.56-acres) of Metro-owned property located at the corner of Cesar E. Chavez Avenue and Fickett Street in Boyle Heights ("Site") in accordance with the Summary of Key Terms and Conditions attached hereto as Attachment A;

B. AUTHORIZING a discount to the appraised fair market rental value for the Site of 67% or $6,900,000 under the Ground Lease as set forth in the Summary of Key Terms and Conditions for the Ground Lease; and

C. FINDING that the Project is exempt from the California Environmental Quality Act ("CEQA"), consistent with the environmental studies and reports set forth in Attachment B, pursuant to Sections 21080(b)(9) and 21084 of the California Public Resources Code and Section 15332 (In-Fill Development Projects) of the CEQA Guidelines; and authorizing the Chief Executive Officer to file a Notice of Exemption for the Project consistent with said exemption.

Issue
ISSUE

Since 2018, 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 Ground Lease, and study relevant CEQA issues. To advance the project into construction, authorization for the JDA and findings relevant to CEQA are required.

Background
BACKGROUND

In February 2017, Metro published a comprehensive set of Develo...