Community Redevelopment Agency
of the CITY OF LOS ANGELES
CRA/lA
8uilding r;ommunitfes
DATE/
FILE CODE /
354 South Spring Street; Suite 800
los Angeles 1 California 90013-1258
T 213 977 1600 IF 213 977 1665
www.crala.org
Lf'iOCj
CRA File No.
Council District: §
Contact Person: William Chun
(213) 977-1927
Honorable Council of the City of Los Angeles
John Ferraro Council Chamber
200 N. Spring Street
Room 340, City Hall
Los Angeles, CA. 90012
COUNCIL TRANSMITTAL:
Transmitted herewith, is a Board Memorandum adopted by the Agency Board on June 3,
2010, for City Council review and approval in accordance with the "Community
Redevelopment Agency Oversight Ordinance" entitled:
VARIOUS ACTIONS RELATED TO:
EXCLUSIVE NEGOTIATING AGREEMENT WITH ROLAND HARRIS FOR PROPOSED
REDEVELOPMENT OF CRAILA OWNED PROPERTY AT 1636 WEST MANCHESTER
AVENUE WITHIN THE VERMONT MANCHESTER REDEVELOPMENT PROJECT
AREA
RECOMMENDATION
That City Council approve(s) recommendation(s) on the attached Board Memorandum.
ENVIRONMENTAL REVIEW
The proposed action does not constitute a project according to the California
Environmental Quality Act ("CEQA"). If a DDA results from the proposed ENA,
appropriate site-specific environmental review documents meeting CEQA requirements
will be completed for CRA/LA consideration and action prior to entering into any formal
agreements.
FISCAL IMPACT STATEMENT
There is no fiscal impact to the City's General Fund, as a result of this action.
cc:
Alan Alietti, Office of the City Clerk (Original & 3 Copies on 3-hole punch)
Lisa Johnson Smith, Office of the GAO
lvania Sobalvarro, Office of the CLA
Steve Ongele, Office of the Mayor
Noreen Vincent, Office of the City Attorney
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CA
7
MEMORANDUM
DATE:
JUNE 3, 2010
TO:
CRA!LA BOARD OF COMMISSIONERS
FROM:
CHRISTINE ESSEL, CHIEF EXECUTIVE OFFICER
RESPONSIBLE
PARTIES:
SUBJECT:
VM2060
CAROLYN HULL, REGIONAL ADMINISTRATOR
WILLIAM CHUN, PROJECT MANAGER
EXCLUSIVE NEGOTIATING AGREEMENT WITH ROLAND HARRIS
FOR PROPOSED REDEVELOPMENT OF CRA/LA OWNED PROPERTY
AT 1636 WEST MANCHESTER AVENUE WITHIN THE VERMONT
MANCHESTER REDEVELOPMENT PROJECT AREA
SOUTH LOS ANGELES REGION (CD 8)
RECOMMENDATIONS
That the CRAILA Board of Commissioners, subject to City Council review and approval:
1. Authorize the Chief Executive Officer or designee, to execute an Exclusive Negotiating
Agreement ("ENA") with Roland Harris, an individual ("Developer") for the proposed
redevelopment of CRAILA-owned property located at 1636 West Manchester Avenue
(and adjoining Developer-owned property) within the Vermont Manchester
Redevelopment Project Area ("Project Area') for a one year term with two ninety-(90)
day extensions of the ENA; and
2. Amend the FY1 0 Budget to recognize a Developer deposit in the amount of $25,000 to
be deposited into budgeted line item "Commercial and Industrial" to fund CRAILA
consultant expenses related to redevelopment of said two properties.
SUMMARY
The recommended actions seek authorization for staff to execute the ENA in order to begin
negotiations with Developer of a Disposition and Development Agreement ("DDA") for
redevelopment of an opportunity site bounded by Manchester Avenue to the north, Harvard
Boulevard to the west, Denker Avenue to the east, and an alley to the south ("Opportunity Site").
CRA!LA and Developer own real property within the Opportunity Site known, respectively, as
1636 West Manchester Avenue ("CRAILA Site") and 1610, 1616, 1620, and 1626 West
Manchester Avenue ("Developer Site"). A map of the Opportunity Site showing the locations of
the CRAILA Site and the adjacent Developer Site is on Attachment "A" hereto.
ENA -1636 W. MANCHESTER AVENUE
Page 2
May 3, 2007 - Various Actions Related to Agency Purchase of a Former Public Library· Site
Located at 1636 W. Manchester Avenue for the Sum of $1,097,000 located in the Vermont
Manchester Redevelopment Project Area
November 6, 2008 - Report to CRAILA Board of Commissioners on Intent to Issue Statements
of Interest to Property Owners and Occupants for Redevelopment of an Opportunity Site at
Manchester Avenue between Harvard Boulevard and Denker Avenue
SOURCE OF FUNDS
Developer Deposit ($25,000).
PROGRAM AND BUDGET IMPACT
This action will amend the FY1 0 Budget to recognize a Developer Deposit and add $25,000 to
budgeted line item "Commercial and Industrial" to fund consultant expenses.
ENVIRONMENTAL REVIEW
The proposed action does not constitute a project according to the California Environmental
Quality Act ("CEQA"). If a DDA results from the proposed ENA, appropriate site-specific
environmental review documents meeting CEQA requirements will be completed for CRAILA
consideration and action prior to entering into any formal agreements.
BACKGROUND
The Opportunity Site
The Opportunity Site is located on Manchester Avenue, a major commercial corridor in the
South Los Angeles Region that has been a focus of staff's revitalization efforts. This corridor is
largely characterized by single-story retail uses consisting of smaller inline shops and by other
demand drivers such as churches and County of Los Angeles offices. The real estate market
along the corridor has been stagnant with very little inventory growth in residential and
commercial uses.
In 2007, CRAILA invested in the Opportunity Site through acquisition of a former Los Angeles
Public Library building for $1,097,000. Located at 1636 W. Manchester Avenue (now, the
CRAILA Site), the former Bookmobile Library building was vacated and declared surplus
subsequent to the Los Angeles Public Library's construction of a new regional library facility at
another location. CRAILA's acquisition of this Site presented an opportunity for staff to initiate
catalytic redevelopment along Manchester Avenue (at the Opportunity Site) as the first step in
redevelopment of the corridor. To further staff's efforts in revitalizing the corridor, it
commissioned CB Richard Ellis ("CBRE"), an economic consultant, to evaluate the economic
conditions and potential revitalization of the corridor, between Vermont and Western Avenues.
In November 2008 and January 2009, CRAILA staff issued Statement of Interest ("SOl") letters
to the property owners and businesses within the Opportunity Site. In March 2009, CRAILA
received twb responses to the SOl letters. Only one response (that submitted by Developer) fit
the objectives of the Vermont Manchester Redevelopment Plan ("Redevelopment Plan").
CRAJLA staff wishes to enter exclusive negotiations with the Developer to redevelop the
described CRAILA and Developer Sites within the Opportunity Site.
ENA- 1636 W. MANCHESTER AVENUE
Page 3
The Development Program
The proposed development program consists of redeveloping the two Sites into a mixed-use
building with potential for housing units and commercial/office space (collectively "Project"). The
Developer will seek health/medical businesses as tenants for the Project's office space to
provide preventative and care management programs for the local community.
Nearby, Kaiser Permanente is building a $10 million, 10,000 square foot, two-story medical
office building that will provide primary care services with 8 to 10 providers, limited x-ray
facilities, laboratory and pharmacy services. Located at 1550 W. Manchester Avenue, the new
Kaiser Permanente South Los Angeles Medical Office is scheduled to open in mid 2011. The
Developer wishes to develop the Project with a health care focus to complement the new Kaiser
Permanente building.
The Exclusive Negotiating Agreement
Key provisions of the ENA are:
1. Term of the Agreement is one year (365 days) from date of execution by CRA/LA.
2. Developer will deposit $25,000 with CRA/LA to pay for CRA/LA consultant costs.
3. Developer will participate with CRA/LA in periodic public meetings to keep the
community updated on Project's progress and any changes in its scope or schedule.
The Developer
Roland Harris has been involved in real estate sales, investments and development in Los
Angeles since 1986. Some of the projects that the Developer has worked on include a 105 unit
senior apartment project, commercial retail developments, 8.8 acre residential development site,
and an ambulatory surgery center and medical office building.
The Community Benefits
As required by State law, the DDA to be negotiated will require all on-site construction to be at
Prevailing Wages. It will also require Developer to comply with CRA/LA's Construction Careers
Policy, Living Wage Policy, Art Policy and other adopted programs and policies.
The Vermont Manchester Redevelopment Community Advisory Committee ("CAC") and
Councilmember Bernard Parks (CD8) support these recommendations and the Project.
Christine Essel
Chief Executive Officer
nn F. Wasserman
Ch.ef Operating Officer
ENA -1636 W. MANCHESTER AVENUE
Page 4
There is no conflict of interest known to me, which exists with regard to any CRAILA officer or
employee concerning this action.
Attachments:
A- Site Map