Meeting_Body
PLANNING & PROGRAMMING COMMITTEE
MAY 19, 2021
Subject
SUBJECT: CESAR E. CHAVEZ & SOTO JOINT DEVELOPMENT
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute and enter into a ground lease ("Ground Lease") and other related documents with La Veranda, L.P. (the "Developer"), an affiliate of Abode Communities, for the construction and operation of a mixed-use, affordable housing project (the "Project") on Metro-owned property located near the corner of Cesar E. Chavez Avenue and Soto Street in Boyle Heights (the "Site") in accordance with the Key Terms and Conditions approved by the Board at its November 30, 2017 meeting as amended by the terms and conditions set forth in the Discussion section of this Board report.
Issue
ISSUE
In November 2017, the Board authorized the execution of a Joint Development Agreement (JDA), Ground Lease and other related documents for the Project pursuant to certain key terms and conditions. As a result of Project refinement, financing requirements and Ground Lease negotiations, certain changes to the Board-authorized transaction are needed to finalize and execute the Ground Lease. The proposed changes are described in the Discussion section below.
Background
BACKGROUND
Metro and the Developer executed a JDA in January 2018 in accordance with the Board authorization in November 2017. The JDA was extended for twelve (12) months to January 31, 2022, per Board authorization in January 2021. Prior to the execution of the JDA, Metro and the Developer were parties to an Exclusive Negotiation Agreement and Planning Document ("ENA"). The JDA and ENA have allowed the parties to explore the feasibility of the Project, conduct developer-led community engagement, and negotiate the Ground Lease, and for the Developer to secure entitlements and financing.
Site Overview
The Site totals approximately 1.96 acres of Metro-owned property bou...
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