CRA/LA, A DESIGNATED LOCAL AUTHORITY
(Successor Agency to the Community Redevelopment Agency of the City of Los Angeles, CA)
MEMORANDUM
8
DATE:
MAY 5, 2016
HW6990
ROPS#
TO:
GOVERNING BOARD
FROM:
STEVEN VALENZUELA, CHIEF EXECUTIVE OFFICER
STAFF:
BARRON MCCOY, CHIEF OPERATING OFFICER
CRAIG BULLOCK, SPECIAL PROJECTS OFFICER
SUBJECT:
THOMPSON HOTEL – LAND USE APPROVAL – NON-MONETARY ACTION.
Review and consider the Mitigated Negative Declaration prepared for the
project, adopt land use findings, and authorize execution of a Land Use Owner
Participation Agreement with Wilcox Hotel, LLC allowing a 6:1 Floor Area Ratio
for the development of the Thompson Hotel at 1541 North Wilcox Avenue in the
Hollywood Redevelopment Project Area
N/A
RECOMMENDATION(S)
That the Governing Board:
1. Adopt a resolution certifying that it has reviewed and considered the environmental
effects of the Proposed Project as shown in the City of Los Angeles Mitigated
Negative Declaration (“MND”) (ENV-2014-3707-MND) (Attachment D); and
2. Adopt a resolution making certain Findings and Determinations pursuant to the
Hollywood Redevelopment Plan allowing for the increase in development Floor Area
Ratio from 4.5:1 to 6:1 in connection with the proposed development at 1541 Wilcox
Avenue (“Project”) (Attachment C); and
3. Authorize the Chief Executive Officer or designee to execute a Land Use Owner
Participation Agreement with Wilcox Hotel, LLC (“Developer”), for the proposed
development at 1541 North Wilcox Avenue (Attachment E).
SUMMARY
The Amended Hollywood Redevelopment Plan (“Plan”) requires that developments in excess of
4.5:1 Floor Area Ratio (F.A.R.) in the Regional Center Commercial designated area enter into a
binding written agreement with CRA/LA. The recommended actions will permit development at
6:1 F.A.R, allowing for a 200-room hotel comprising 113,751 square foot development rising ten
(10) stories, with 144 vehicular parking spaces located in (4) levels of underground parking (See
Site Map attached as Attachment A).
Section 506.2.3 of the Plan requires that the CRA/LA Governing Board make findings to
authorize developments with an F.A.R. greater than 4.5:1 in the Regional Center Commercial
designated areas prior to the execution of an OPA. The Findings ensure that Project complies
with the Redevelopment Plan, provides a community purpose and that the environmental
impacts of the Project have been addressed.
THOMPSON HOTEL
PAGE 2
Section 506.2.3 further requires that the CRA/LA request from the Planning Commission a
determination as to the Project’s conformance to the Hollywood Community Plan (“Community
Plan”). The Project was approved through a Director’s Determination and appealed to the City
Planning Commission (“CPC”). The CPC approved the Project on September 10, 2015. The
Los Angeles City Council Planning and Land Use Committee (PLUM) approved the CPC
recommended actions on January 12, 2016. The Los Angeles City Council approved the PLUM
recommendations on February 10, 2016. Prior to these actions, a F.A.R. of 3:1 was the
maximum allowable development area.
On March 3, 2016 a lawsuit was filed against the City of Los Angeles by The Sunset Landmark,
LLC for approving the above referenced actions. The CRA/LA, as a responsible party, was
served with a copy of the complaint. The developer has agreed to indemnify the CRA/LA in
connection with the proposed actions.
DISCUSSION & BACKGROUND
Location
The Thompson Hotel project is located at 1541 North Wilcox Avenue, which is located on block
bounded by Wilcox (east) and Selma (north) Avenues and Schrader (west) and Sunset (south)
Boulevards. Currently a 14,208 square foot warehouse and surface parking lot are on the
20,682 (.47/acre).
The Project includes the following properties: 1521 Wilcox Avenue (554-7017-012) and 1523 1541 Wilcox Avenue (554-7017-003).
Developer Entity
Hollywood International Regional Center (HIRC) finances, develops and properties and focuses
on finding alternative sources of investments, including EB-5 investors, for their developments.
HIRC investments primarily focus on the tourism and hospitality industries.
Description, Project Context and Project History
The requested action will allow for additional density, up to 6:1 F.A.R. The Site is in a
developed neighborhood with a variety of uses including commercial, multi-family and
residential. West of the Site, along Schrader Boulevard between Sunset Boulevard and Selma
Avenue, is privately owned public parking lot and multi-family housing. East of the Site is
commercial and auto uses. North of the Site, along Sunset Boulevard between Wilcox Avenue
and Schrader Boulevard is the recently renovated Mama’s Shelter Hotel. South of the Site,
along Sunset Boulevard between Wilcox Avenue and Schrader Boulevard includes a mix of
commercial uses. Renderings of the Project are attached as Attachment B.
Density/Land Use Findings and Determinations
The Plan designates this site as Regional Center Commercial. Section 502 of the Plan states
that “Notwithstanding anything to the contrary in this Plan, the land uses permitted in the Project
Area shall be those permitted by the General Plan, the applicable Community Plan, and any
applicable City zoning ordinance, all as they now exist or are hereafter amended and/or
supplemented from time to time.” The Project’s use is compatible with the Redevelopment Plan
and the Hollywood Community Plan (“Community Plan”).
Pursuant to Section 506.2.3 of the Redevelopment Plan, individual development projects within
the Regional Center Commercial designation may exceed 4.5:1 FAR provided that the proposed
THOMPSON HOTEL
PAGE 3
development (a) furthers the goals and intents of the Redevelopment Plan and the Community
Plan, (b) specifically meets the objective in the Redevelopment Plan to concentrate high
intensity and/or density development in areas with reasonable proximity or direct access to high
capacity transportation facilities or which effectively utilize transportation demand management
programs, (c) meets at least one other Redevelopment Plan objective listed in Section 506.2.3,
and (d) the Governing Board makes findings and determinations that: (1) the proposed
development conforms with the provisions and goals of the Redevelopment Plan and any
applicable Design for Development or requirements of the Hollywood Boulevard District or
Hollywood Core Transition District; (2) permitting the proposed development serves a public
purpose such as: the provision of additional open space, cultural facilities, public parking, or the
rehabilitation of an architecturally or historically significant building; and (3) any adverse
environmental effects especially impacts upon the transportation and circulation system of the
area caused by the proposed development shall be mitigated or are overridden by other social,
economic or physical considerations, and statements of findings are made. These requirements
are satisfied by the Resolutions attached to this Board Memo.
The Redevelopment Plan further provides that no development with F.A.R. in excess of 4.5:1 in
the Regional Center Commercial designated areas is permitted without a binding agreement
with the CRA/LA, which ensures that the proposed development will occur in conformity to the
Redevelopment Plan and Section 506.2.3 by providing, among other things, for Agency review
and approval of plans, compliance with all conditions applicable to development in excess of
4.5:1, and the provision of adequate assurances and considerations for the purpose of
effectuating the objectives of the Redevelopment Plan. The proposed OPA will carry out this
requirement.
The proposed Project would be approximately 113,751 square feet of floor area, or 6:1 F.A.R..
CRA/LA approval of an OPA is required by the Redevelopment Plan since the proposed project
exceeds 4.5:1 F.A.R. Pursuant to Section 506.2.3 of the Redevelopment Plan, proposed
developments with the areas designated as “Regional Center Commercial” may exceed a 4.5:1
F.A.R up to a maximum of 6.1 F.A.R. if the CRA/LA is able to make certain findings and
determinations. The OPA containing an analysis of how the Project meets the Plan's
requirement is incorporated in this Board Memo as Attachment E.
SOURCE OF FUNDS
No funds are required for this action.
ROPS AND ADMINISTRATIVE BUDGET IMPACT
The recommended action is consistent with AB1x-26; specifically to issue a discretionary land
use approval pursuant to requirements of the Redevelopment Plan.
ENVIRONMENTAL REVIEW
The City of Los Angeles is the lead agency for the Proposed Project for purposes of the
California Environmental Quality Act (CEQA). On September 10, 2015, the CPC (“CPC”)
approved, adopted and recommended that the City Council take the necessary actions to
approve Project (ENV-2014-3707-MND).
The Los Angeles City Council approved the
recommended actions on February 10, 2016. The CRA/LA Governing Board’s responsibility, as
a Responsible Agency in connection with its consideration of an increased F.A.R. for the
Project, is to consider the environmental effects of the Project as shown in the MND prepared
Attachment A - Location/Site Map
ATTACHMENT B
ATTACHMENT C
RESOLUTION NO. _____
RESOLUTION ADOPTING CERTAIN FINDINGS AND DETERMINATIONS
APPROVING DEVELOPMENT WITH FLOOR AREA IN EXCESS OF FOUR AND ONE
HALF TIMES THE DEVELOPMENT SITE LOCATED AT 1541 WILCOX AVENUE IN
THE HOLLYWOOD REDEVELOPMENT PROJECT AREA
WHEREAS, on May 7, 1986, the Agency originally adopted the Hollywood
Redevelopment Plan (“Redevelopment Plan”); and
WHEREAS, on May 20, 2003, the Agency adopted the First Amendment to the
Redevelopment Plan (“Plan”); and
WHEREAS, Section 506.2.3 of the Amended Redevelopment Plan allows
individual development projects within the Regional Center Commercial designation to
exceed 4.5:1 FAR but not greater than 6:1 FAR if the development meets certain
objectives and upon the CRA/LA making certain findings and determinations; and
WHEREAS, the intent of the Amended Redevelopment Plan is to focus high
quality urban development within the Regional Center Commercial designation in areas
well served by adequate transportation facilities; and
WHEREAS, the Project Site is located approximately 2,640 feet ( ½ mile) from
the Hollywood/Vine Metro Station; and
WHEREAS, the Project totals approximately 113,751 square feet or less than six
times the area of the Project Site;
WHEREAS, the Project will encourage the development of appropriate visitor
serving uses in the Project Area;
NOW, THEREFORE, BE IT RESOLVED:
The CRA/LA Governing Board makes the following findings and determinations:
1)
The Project conforms to the goals of the Hollywood Redevelopment Plan, any
applicable Design(s) for Development or requirements of the Hollywood Core
Transition District, and the Hollywood Community Plan.
Hollywood Redevelopment Plan
Section 300 of the Plan outlines the redevelopment goals that the Plan is to
achieve. The Project meets numerous goals, specifically the following:
Redevelopment Goal 2
Preserve and increase employment, and business and investment
opportunities through redevelopment programs and, to the greatest extent
feasible, promote these opportunities for minorities and women.
The proposed development advances this objective by spurring
investment in hotel and hospitality infrastructure and bolstering nearby
local businesses dependent on tourism.
In addition the Project is a participant in the Federal Government’s EB-5,
Immigrant Investor Program (“Program”). This Program, passed by the
U.S. Congress in 1990, stimulates the investment, development and job
creation by allowing foreign investors the opportunity to invest in job
creating developments in exchange for the investor and their family
eligible to apply for green cards. It is estimated that that over 1,000 part
time and full time jobs would be created as the result of the Project.
Redevelopment Goal 3
Promote a balanced community meeting the needs of the residential,
commercial, industrial, arts and entertainment sectors.
The proposed development is consistent with this objective by
accommodating new hotel guest rooms essential to the vitality of the
Hollywood commercial and entertainment industries while maintaining
compatibility with existing and potential future residential development in
the project vicinity.
Redevelopment Goal 6
Support and promote Hollywood as the center of the entertainment
industry and a tourist destination through the retention, development and
expansion of all sectors of the entertainment industry and the
preservation of landmarks related to the entertainment industry.
The proposed development advances this objective by providing 200
guest rooms in Hollywood’s urban core in which there is an unmet
demand for. The
Hollywood Core Transition District
A design for development for the Hollywood Core Transition District has
not been adopted.
Hollywood Community Plan
The Hollywood Community Plan contains a number of objectives for the regional
center of Hollywood in which the Project would be located. The City of Los
Angeles has provided discretionary actions for various entitlements and has
determined that the Project complies with the Hollywood Community Plan.
The Los Angeles City Council approved the recommended actions of the CPC on
February 2, 2016. Prior to these actions, the FAR was of 3:1. Modifications
made through zoning and height district allows development of up to 6:1 on the
2
site, provided that the CRA/LA makes the necessary findings and determinations
and executes an OPA with the developer.
2)
The Project concentrates high intensity and/or density development in areas with
reasonable proximity or direct access to high capacity transportation facilities or
which effectively utilize transportation demand management programs and
serves a public purpose objective such as: the provision of additional open
space, cultural facilities, public parking, or the rehabilitation of an architecturally
or historically significant building.
The Project is located approximately 2,640 feet (½ mile) from the
Hollywood/Vine Metro Station, which is deemed to be a reasonable
distance to high capacity transportation facility.
3)
The CRA/LA Governing Board makes the following findings and determinations:
a. The Project conforms with the provisions and goals of the
Redevelopment Plan and any applicable Design for Development or
requirement of the Hollywood Core Transition District in that:
The Project promotes a balanced community meeting the needs
of the residential, commercial, industrial, arts and entertainment
sectors (Redevelopment Goal 3).
The Project support and promote Hollywood as the center of the
entertainment industry and a tourist destination through the
retention, development and expansion of all sectors of the
entertainment industry and the preservation of landmarks related
to the entertainment industry (Redevelopment Goal 6).
No Design for Development has been adopted for the Hollywood
Core Transition District.
b. The Project services the public purpose by bringing two providing the
restoration of a historic resource and the inclusion of affordable housing.
The Project will contribute to the local economy by creating construction
jobs followed by permanent jobs in the hospitality industry. It is estimated
that this Project will create 697 construction jobs and 838 permanent jobs,
including direct and indirect and induced jobs.
The Project will contribute to and enhance tourism in Hollywood and the
greater Los Angeles area. Quality accommodations, restaurants, bars
and entertainment space will contribute to Hollywood’s prominent
standing as an entertainment district.
The Project will increase the tax base for the City of Los Angeles by
transforming an economically obsolete building into the vibrant space
providing numerous functions. It is estimated that the Project’s
3
construction will have a direct, indirect and induced economic impact of
$108,600,016 and its operation will have a direct, indirect and induced
impact of $99,045,102 in 2017 and 2018 alone. Construction costs are
budgeted at $55 million, including property acquisition ($6.6 million),
construction documents and entitlements ($2.18 million), hard
construction costs (27.56 million), soft costs ($4.53 million), office and
administration ($1.79 million), furniture, fixtures and equipment ($5.84
million), and project management fees ($6.50 million).
The Project will contribute to smart growth, where dense developments
are placed near high capacity transportation facilities. This will enable
maximize the economic benefit for the community while having minimal
transportation consequences.
.
c. The Project’s Mitigated Negative Declaration (ENV-2014-3708-MND)
concludes that all adverse environmental effects are mitigated to less than
significant.
The CRA/LA further finds that the Project meets many
redevelopment goals and objectives of the Plan and serves a strong public
purpose that merits adoption notwithstanding the occurrence of certain
adverse environmental effects, all of which can be mitigated to a less than
significant level.
4
ATTACHMENT D
RESOLUTION NO. _____
A RESOLUTION OF THE CRA/LA, A DESIGNATED LOCAL AUTHORITY CERTIFYING
THAT THE AGENCY HAS REVIEWED AND CONSIDERED THE INFORMATION
CONTAINED IN THE CITY OF LOS ANGELES MITIGATED NEGATIVE DECLARATION FOR
THE THOMPSON HOTEL, LOCATED IN 1541 N. WILCOX AVENUE IN THE HOLLYWOOD
REDEVELOPMENT PROJECT AREA AND ADOPTING
A MITIGATION MONITORING PROGRAM
WHEREAS, 1541 Wilcox Hotel, LLC, the project applicant, proposes to develop a 113,751
square foot 10 story plus penthouse, 200 hotel room with 144 vehicular parking spaces in 4
levels of subterranean parking at 1541 N. Wilcox Avenue (“Project”); and
WHEREAS, The City of Los Angeles (“City”) was the lead agency under the California
Environmental Quality Act (“CEQA”) for the Project and prepared a Mitigated Negative
Declaration, ENV-2014-3707-MND (“MND”), for the Project; and
WHEREAS, on February 3, 2016 the MND for the Project was adopted, and the Project was
approved by the City of Los Angeles;
NOW, THEREFORE, BE IT RESOLVED, by the CRA/LA, A Designated Local Authority, as
follows:
1. The CRA/LA Governing Board’s discretionary approval is required to construct the
Project up to a Floor Area Ratio (FAR) of six to one (6:1).
2. Accordingly, the CRA/LA is a Responsible Agency pursuant to CEQA (Public Resources
Code Section 21069, State CEQA Guidelines Section 15381). As a Responsible
Agency, the CRA/LA Governing Board considered the environmental effects of the
Project as shown in the City of Los Angeles’ MND. (State CEQA Guidelines Section
15096).
3. Based on such review and consideration, the CRA/LA Governing Board hereby
determines that no subsequent or supplemental environmental review is required for the
Project because none of the conditions described in State CEQA Guidelines Section
15162 have occurred. Specifically:
a. No substantial changes are proposed in the Project that will require major
revision to the MND; and
b. There is no evidence of any substantial changes that have occurred with
respect to the circumstances under which the Project is being undertaken
that will require major revisions to the MND; and
c. No new information of substantial importance to the Project which was not
known or could have been known at the time the MND was adopted has
become available or been submitted to the CRA/LA Governing Board.
4. The CRA/LA Governing Board adopts the MND and the Mitigation Monitoring Program
prepared and adopted by the City ("MMP").
5. The CRA/LA has mitigated the impacts of those parts of the Project that it is approving
by adopting the MMP.
ADOPTED:
Attachment E
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
LAND USE OWNER PARTICIPATION AGREEMENT
Development Project:
Location:
Redevelopment Project Area:
Assessor Parcel Number:
Legal Description:
Thompson Hotel
1523-1541 Wilcox Ave
Hollywood
5547017003
See Attachment "A"
, 2016 is
This Land Use Owner Participation Agreement ("OPA") dated as of
entered into by and between 1541 Wilcox Hotel LLC ("Applicant" or "Participant") and The
CRA/LA, A Designated Local Authority ("CRA/LA" or "Agency") with reference to the
property at 1523-1541 Wilcox Avenue("Property" or "Project Site").
RECITALS
A. Participant is under contract to purchase and proposes to develop the Property with a
10-story plus penthouse 200-room hotel with ground floor restaurant uses ("Project'),
which is located within the Hollywood Redevelopment Project Area ("Project Area")
and the Hollywood Community Plan ("Community Plan") area.
B. The City of Los Angeles City Planning Commission in its determination letter dated
October 19, 2015, and the Los Angeles City Council in its approval on February 3,
2016 which was signed by the Mayor on February 5, 2016, approved the Project
entitlements including a determination that the Project is consistent with the
Community Plan.
C. Section 506.2.3 of the Amended Hollywood Redevelopment Plan ("Redevelopment
Plan") provides for the following:
Proposed development in excess of 4.5:1 F.A.R. up to but not to exceed 6:1 F.A.R.
or such other density as may be permitted by future amendments to the Community
Plan, on a specific site may be permitted as hereinafter set forth provided that the
proposed development furthers the goals and intent of this Plan and the Community
Plan and meets objective "a" and at least one other of the following objectives:
a) to concentrate high intensity and/or density development in areas with
reasonable proximity or direct access to high capacity transportation
facilities or which effectively utilize transportation demand management
programs.
b) to provide for new development which compliments the existing buildings
in areas having architecturally and/or historically significant structures or to
encourage appropriate development in areas that do not have
architecturally and/or historically significant buildings.
c) to provide focal points of entertainment, tourist or pedestrian oriented uses
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
in order to create a quality urban environment.
d) to encourage the development of appropriately designed housing to provide
a balance in the community.
e) to provide for substantial, well designed, public open space in the Project
Area.
f) to provide social services or facilities for social services which address the
community's needs.
D. Section 506.2.3 of the Redevelopment Plan also provides for the need for the
following:
The Agency may permit development in excess of 4.5:1 F.A.R. up to but not to
exceed 6:1 F.A.R. or such other density as may be permitted by future amendments
to the Community Plan, only if the Agency makes the following findings and
determinations:
1. The proposed development conforms with the provisions and goals of the
Redevelopment Plan and any applicable Designs) for Development or
requirements of the Hollywood Boulevard District or Hollywood Core
Transition District.
2. Permitting the proposed development serves a public purpose objective such
as: the provision of additional open space, cultural facilities, public parking, or
the rehabilitation of an architecturally or historically significant building.
3. Any adverse environmental effects especially impacts upon the transportation
and circulation system of the area caused by proposed development shall be
mitigated or are overridden by other social, economic or physical
considerations, and statements of findings are made.
E. No development in excess of 4.5:1 shall be permitted without a binding written
agreement with the Agency which ensures that the proposed development will occur
in conformity to the Redevelopment Plan, including Section 506.2.3 by providing for,
among other things, Agency review and approval of all plans and specifications, the
compliance with all conditions applicable to development in excess of 4.5:1 F.A.R.
site and the provision of adequate assurances and considerations for the purpose of
effectuating the objectives of the Redevelopment Plan.
F. The City Planning Commission has made its determination as to the conformity of
the Project with the Community Plan in its determination letter dated October 19,
2015, as subsequently approved by the City Council on February 3, 2016 and signed
by the Mayor on February 5, 2016, as noted above.
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
~ ~ 3
i' ~
G. The Agency considered the Project and has made the following findings and
determinations:
1. The proposed project conforms to the Hollywood Community Plan as
provided for in the Letter of Determination by the Los Angeles City
Planning Commission dated October 19, 2015, following a public hearing
on September 10, 2015. This determination was affirmed on appeal
following a hearing on January 26, 2016 by the City Council Planning and
Land Use Management Committee and subsequently on February 3,
2016 at the Los Angeles City Council Meeting.
2. The proposed project conforms to Sections 506.2.3 of the Hollywood
Redevelopment Plan in the following ways:
a) To concentrate high intensity and/or density development in areas
with reasonable proximity to direct access to high capacity
transportation facilities or which effectively utilize transportation
demand management programs.
The construction of a 10-story plus penthouse 200 room
boutique hotel with 144 parking spaces in four (4) levels of
subterranean parking is an appropriate development for this
site for a variety of reasons:
The Property is designated Regional Center Commercial by
the Hollywood Community Plan. The Community Plan and the
Redevelopment Plan envisioned that high intensity uses would
be developed at this location. The area is in close proximity to
high capacity transportation facilities.
The Property is conveniently located near two METRO Red
Line Stations; Hollywood/Highland and Hollywood/Vine. Both
stations are within walking distance of the Property. The
METRO Red Line has a monthly ridership of over 3.8 million
people. It connects commuters from the San Fernando Valley
to Downtown Los Angeles and includes connection stations to
the METRO Blue, Purple, Gold, Orange and Expo Lines
spanning the greater Los Angeles Area.
Hollywood's transportation network is highly evolved through a
web of connecting METRO bus lines and DASH lines. METRO
and DASH bus lines easily connect residents, business people
and tourist to destinations in and out of Hollywood. The
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
expansion of "on demand" transportation such as Lyft and
Uber also provide a built in and flexible transportation network
not envisioned just a few years ago.
The LAX Fly-Away offers convenient bus service from
Hollywood/Vine directly to LAX. In addition, the METRO Red
Line services Burbank's Bob Hope Airport through the
Burbank Bus, a free connecting shuttle.
The Property is conveniently located near the Hollywood 101
Freeway. The Hollywood 101 Freeway is a high capacity
transportation infrastructure that allows hundreds of thousands
of people to commute the span of the entire area.
The Property's proximity to numerous high capacity
transportation facilities provides many transportation options to
guests of the proposed hotel and other hotels in the
surrounding area.
b) To provide focal points of entertainment, tourist and pedestrian oriented
uses in order to create a quality urban environment:
The construction of a 10-story plus penthouse and 200 room
boutique hotel with 144 parking spaces in four (4) levels of
subterranean parking creates a focal point for entertainment, tourist
and pedestrian oriented uses in order to create a quality urban
environment.
Hollywood is world renowned and the most famous community
associated with the City of Los Angeles. From the Golden age of
Hollywood until this very day, Hollywood remains a top tourist
destination within Southern California. Hollywood started suffering
from blight from the 1970s through the end of the 1990s. Though
Hollywood has seen a renaissance in the past fifteen (15) years,
economic investment, such as this hotel, ensure that recovery is
sustainable and adapts to the modern needs and demands.
In addition to servicing tourism, this hotel will be able to help meet
the demands of the expanding entertainment industry. Expansion
and reinvestment by studios, both large and small, have created
new economic opportunities in Hollywood not seen in decades. The
hotel's proximity to major entertainment companies in and near
Hollywood will create a base for traveling business people,
seminars and events.
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
Pc3f;E' I5
The hotel will enrich the quality of the urban environment by
replacing an economically obsolete building, set back from the
street and surrounded by a chain link fence, with a modern new
building with prominent architectural features that will enhance the
urban experience by providing a ground floor restaurant with
outdoor eating as well a penthouse restaurant. At a time of rapid
supply absorption and historically high hotel occupancy rates in
Hollywood, the Project will locate much needed guest rooms in
Hollywood's urban core near robust transit infrastructure and
accommodate an influx of tourists to Hollywood by satisfying unmet
demand for hotel rooms.
The Agency may permit development in excess of 4.5:1 F.A.R. up to but not to
exceed 6:1 F.A.R. or such other density as may be permitted by future
amendments to the Community Plan, only if the Agency makes the following
findings and determinations:
1. The proposed development conforms with the provisions and goals of
the Redevelopment Plan and any applicable Designs for Development
or requirements of the Hollywood Boulevard District or Hollywood Goal
Transition District.
The proposed development conforms to numerous goals and
objectives of the Plan, specifically the following:
Preserve and increase employment, and business and investment
opportunities through redevelopment programs and, to the greatest
extent feasible, promote these opportunities for minorities and
women. The proposed development advances this objective by
spurring investment in hotel and hospitality infrastructure and
bolstering nearby local businesses dependent on tourism.
Promote a balanced community meeting the needs of the
residential, commercial, industrial, arts and entertainment sectors.
The proposed development is consistent with this objective by
accommodating new hotel guest rooms essential to the vitality of
the Hollywood commercial and entertainment industries while
maintaining compatibility with existing and potential future
residential development in the project vicinity.
Support and promote Hollywood as the center of the entertainment
industry and a tourist destination through the retention,
development and expansion of all sectors of the entertainment
industry and the preservation of landmarks related to the
entertainment industry. The proposed development advances this
objective by providing 200 much-needed hotel guest rooms in
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
Hollywood's urban core.
2. Permitting the proposed Project serves public objectives, such as the
following:
• The Project will pay an Arts Development Fee pursuant to Los
Angeles Municipal Code Section 91.107.4.6 to support art in the
local community that contributes to the aesthetics of a community
and contributes economically to cultural tourism and increased the
vibrancy of the local arts community.
• The Project will contribute to the local economy by creating
construction jobs followed by permanent jobs in the hospitality
industry. it is estimated that this Project will create 697 construction
jobs and 838 permanent jobs, including direct and indirect and
induced jobs.
• The Project will contribute to and enhance tourism in Hollywood
and the greater Los Angeles area. Quality accommodations,
restaurants, bars and entertainment space will contribute to
Hollywood's prominent standing as an entertainment district.
• The Project will increase the tax base for the City of Los Angeles
by transforming an economically obsolete building into the vibrant
space providing numerous functions. It is estimated that the
Project's construction will have a direct, indirect and induced
economic impact of $108,600,016 and its operation will have a
direct, indirect and induced impact of $99,045,102 in 2017 and 2018
alone. Construction costs are budgeted at $55 million, including
property acquisition ($6.6 million), construction documents and
entitlements ($2.18 million), hard construction costs (27.56 million),
soft costs ($4.53 million), office and administration ($1.79 million),
furniture, fixtures and equipment ($5.84 million), and project
management fees ($6.50 million).
• The Project will contribute to smart growth, where dense
developments are placed near high capacity transportation
facilities. This will enable maximize the economic benefit for the
community while having minimal transportation consequences.
3. Any adverse environmental effects, especially impacts upon the transportation
and circulation system of the area caused by the Project shall be mitigated or
are overridden by other social, economic or physical considerations and
statements of finds are made.
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
_ - ~ ~
The Project's Mitigated Negative Declaration (ENV-2014-3708- MND),
adopted by the City Planning Commission in its determination letter
dated October 19, 2015 and the City Council on February 3, 2016,
concludes that all adverse environmental effects are mitigated to less
than significant.
NOW, THEREFORE, in consideration for and as a condition of CRA/LA's Approval of the
described discretionary use approval to permit the a project with a Floor Area Ratio exceeding
4.5 to 1, Participant hereby agrees to comply with the following terms and conditions:
1. Compliance with Criteria —Participant shall develop, maintain and operate the Project in
compliance with entitlements approved by the City Planning Commission in its October 19,
2015 determination, and as approved by the City Council on February 3, 2016 and signed
by the Mayor on February 5, 2016 and all applicable ordinances and regulations of the City
of Los Angeles as they now exist or as they are amended from time to time.
2. Participant Indemnity —Participant shall do all of the following:
(i) Defend, indemnify and hold harmless the CRA/LA from any and all actions against the
CRA/LA relating to or arising out of the CRA/LA's processing and approval of this entitlement,
including but not limited to, an action to attack, challenge, set aside, void, or otherwise modify
or annul the approval of the entitlement, the environmental review of the entitlement, or the
approval of subsequent permit decisions, or to claim personal property damage, including
from inverse condemnation or any other constitutional claim.
(ii) Reimburse the CRA/LA for any and all costs incurred in defense of an action related to or
arising out of, in whole or in part, the CRA/LA's processing and approval of the entitlement,
including but not limited to payment of all court costs and attorney's fees, costs of any
judgments or awards against the CRA/LA (including an award of attorney's fees), damages,
and/or settlement costs.
(iii) Execute an indemnity agreement in a form mutually agreed upon by Participant and
CRA/LA concurrent with the execution of this Agreement pursuant to which Participant
agrees to pay CRA/LA's litigation costs, if any, related to any actions by CRA/LA approving
this Agreement.
3. The CRA/LA shall notify the Applicant within a reasonable period of time of its receipt of any
action and the CRA/LA shall cooperate in the defense. If the CRA/LA fails to notify the
Applicant of any claim, action, or proceeding in a reasonable time, or if the CRA/LA fails to
reasonably cooperate in the defense, the Applicant shall not thereafter be responsible to
defend, indemnify or hold harmless the CRA/LA. The CRA/LA shall have the sole right to
choose its counsel, including outside counsel. At its sole discretion, the CRA/LA may
participate in the defense of any action, but such participation shall not relieve the Applicant
of any obligation imposed by this condition. In the event the Applicant fails to comply with this
condition, in whole or in part, the CRA/LA may withdraw its defense of the action, void its
approval of the entitlement, or take any other action. The CRA/LA retains the right to make all
decisions with respect to its representations in any legal proceeding, including its inherent
right to abandon or settle litigation.
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
4. For purposes of this section, the following definitions apply:
•
"CRA/LA" shall be defined to include the CRA/LA and its agents, officers, officers
and employees.
•
"Action" shall be defined to include suits, proceedings (including those held under
alternative dispute resolution procedures), claims, or lawsuits. Actions include
actions, as defined herein, alleging failure to comply with any federal, state or local
law.
•
Nothing in the definitions included in this paragraph are intended to limit the rights of
the CRA/LA or the obligations of the Applicant otherwise created by this condition.
5. Permitted Transfers —Subject to the CRA/LA's prior written consent, which shall not be
unreasonably withheld, conditioned or delayed, Participant may assign this Agreement and
its rights and ongoing obligations hereunder, provided that the assignee expressly assumes
the ongoing obligations of Participant hereunder, and further provided that Participant may
change the operator or operators of the Project's hotel or restaurant components without
notice to or consent of CRA/LA. Upon any such assignment by Participant and assumption
by the assignee, or upon Participant's transfer of its interest in the Property, Participant shall
be fully relieved from any further liability hereunder. Nothing contained herein shall restrict or
limit Participant's rights to transfer its interest in the Property to any other party.
6. Termination of the Agreement —Participant shall have the right to terminate this Agreement
at any time upon at least thirty (30) days' prior written notice and/or prior to the
commencement of construction of the Project, and in such event neither Participant nor the
CRA/LA shall have any further rights or obligations hereunder from and after the effective
date of such termination. In the event that Participant terminates the Agreement, the F.A.R
of the Property shall be as required by applicable land use regulations or any substitute
agreement.
SIGNATURE PAGE FOLLOWING
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
~~ ,~ ~, ~9
CRA/LA
A Designated Local Authority
1541 Wilcox Hotel LLC
By: Steve Valenzuela, CEO &CFO
~j~. Richard Heyman, Member
Approved as to form
CRA/LA Legal Counsel
By: Thomas H. Webber
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
~ 10
ATTACHMENT A
Legal Description
Real property in the City of Los Angeles, County of Los Angeles, State of California, described
as follows:
PARCEL 1:
LOT 5 AND 6 OF H.J. WHITLEY TRACT 2, IN THE CITY OF LOS ANGELES, COUNTY OF
LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2, PAGES)
31 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAIDCOUNTY.
PARCEL 2:
THAT PORTION OF BLOCK 2 IN HOLLYWOOD, IN THE CITY OF LOS ANGELES, COUNTY
OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 28 PAGE
59 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF
SAID COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT IN THE WEST LINE OF WILCOX AVENUE, SAID POINT BEING
233.30 FEET NORTH OF THE NORTH LINE OF SUNSET BOULEVARD, AS SHOWN ON
SAID MA; THENCE NORTH ALONG THE WET LINE OF WILCOX AVENUE, 50 FEET;
THENCE WEST PARALLEL WITH THE NORTH LINE OF SUNSET BOULEVARD, 143 FEET;
THENCE SOUTH PARALLEL WITH THE WEST LINE OF WILCOX AVENUE, 50 FEET;
THENCE EAST PARALLEL WITH THE NORTH LINE OF SUNSET BOULEVARD, 143 FEET
TO THE POINT OF BEGINNING.
APN: 5547-017-003
Thompson Hotel / 1541 Wilcox Avenue
Hollywood Redevelopment Project Area
Page 11
ATTACHMENT B
Property Map
Attachment B - Property Map