Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
JANUARY 20, 2021
Subject
SUBJECT: CESAR E. CHAVEZ & SOTO JOINT DEVELOPMENT
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute an amendment to an existing Joint Development Agreement ("JDA") with La Veranda, L.P. ("Developer"), an affiliate of Abode Communities, that will extend the term of the JDA for twelve (12) months to January 31, 2022.
Issue
ISSUE
Metro and the Developer are parties to the JDA, which provides for the development of a mixed-use project that includes income-restricted affordable housing and commercial space on Metro-owned property situated near the corner of Cesar E. Chavez Avenue and Soto Street in the community of Boyle Heights. The JDA is set to expire on January 31, 2021 and an amendment to the JDA is needed to extend its term. The extended term will provide the time necessary to complete predevelopment activities for the project and satisfy the JDA's conditions precedent to execution of a ground lease.
Discussion
DISCUSSION
Background
Metro and the Developer executed the JDA in January 2018 in accordance with Board authorization in December 2017. Prior to execution of the JDA, Metro and the Developer were parties to an Exclusive Negotiation Agreement and Planning Document ("ENA") which allowed the parties to explore the feasibility of the project and conduct developer-led community engagement. Under the JDA, the Developer has secured funding commitments from all public financing sources needed to construct the project, including an allocation of Low-Income Housing Tax Credits from the California Tax Credit Allocation Committee. They have also advanced the project's design to near completion and have received all needed entitlements from the City of Los Angeles, as well as project clearance under the California Environmental Quality Act.
Among other things, the requested extension will provide the ti...
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