PURPOSE:

 

The purpose of this report is to present the information necessary for City Council and Redevelopment Agency Board consideration of the proposed development of the former AMC 14 Site by Champion Development, Inc. (�Champion�).  The subject site is the Phase II Site of the Burbank Entertainment Village Project (�AMC Project�).  The specific land use applications for the mixed-use residential project include a Second Amendment to Planned Development No. 98-2; Planned Development No.2003-2; Development Review No. 2003-50; a Mitigated Negative Declaration; Development Agreement; and the associated legal documents.  The terms of the proposed development of the Phase II Site are documented in the Amended and Restated Owner Participation Agreement (�Amended and Restated OPA�) between the Agency and Champion Development, Inc. and a Second Implementation Agreement to the Owner Participation Agreement between the Agency and Burbank Entertainment Village, L.L.C. (AMC).

 

BACKGROUND:

 

The AMC Phase II site is located on the block bounded by Palm Avenue, First Street, Orange Grove Avenue, the back of businesses along San Fernando Boulevard and more specifically on the site where the former AMC 14 theaters were located (Exhibit A). The site is also located within the City Centre Redevelopment Project Area.  In order to present the proposed project, it is important to examine the evolution of this development site.  

 

On August 3, 1999, the City Council and Redevelopment Agency approved an Owner Participation Agreement for the development of the Burbank Entertainment Village Project to create a vibrant mixed-use center that would replace the AMC 14 theater formerly located on the 100 block of East Palm Avenue.  The two-phased project site is on a 4.1 acre site and the existing Owner Participation Agreement provided for the development of a new state-of-the-art, 16 screen, 4,200 seat AMC theater, retail, restaurant and office uses, a health club and two  parking structures.  Phase I is bounded by First Street, Magnolia Boulevard, Palm Avenue and the back of businesses along San Fernando Boulevard.  The Phase II site is located on the former AMC 14 theater property on the south side of Palm Avenue. After the project was approved in August 1999, AMC and the Agency proceeded with assembling the site including the acquisition of all properties and relocation of all businesses.  In addition, all structures were demolished, except for the former AMC 14 theater.

 

On August 28, 2001, the City Council and Redevelopment Agency Board approved an Implementation Agreement to the Owner Participation Agreement which allowed AMC to fund the Phase I improvements directly by assigning the rights of the developer entity directly to American Multi-Cinema, Inc. (�AMC�) while contemplating that a future developer, subject to Agency approval, would construct Phase II improvements. The Implementation Agreement also included modifications to the proposed project design and a reduction in the scope of the project due to changes in market trends and to improve pedestrian flow while maintaining provisions to help ensure that both phases would be completed.  The revised project did not include an office component. 

 

Phase I improvements were completed in June 2003, including completion of the 4,200-seat, state-of-the-art AMC 16 theaters. This theater has consistently ranked in the top ten of all theaters nationwide since its opening. Additional improvements included retail and restaurant uses and a public parking structure.  Improvements approved for Phase II included additional retail and restaurant uses and a public parking structure.  The former AMC 14 Theater was demolished in July 2003 and the Phase Two site is currently vacant. 

 

AMC selected Champion as the Phase II developer in May 2003.  AMC subsequently entered into a purchase and sale agreement to sell Phase II of the Burbank Entertainment Village Project site to Champion. However, Champion�s purchase offer is subject to receiving approvals from the Redevelopment Agency Board and City Council for proposed Phase II modifications to the executed Owner Participation Agreement and land use entitlements. 

 

On October 27, 2003, staff received a preliminary proposal from Champion (including a Planned Development application package) for a mixed-use residential/retail/restaurant development for Phase II.  The proposed project consists of 118 residential condominium units located above approximately 50,000 square feet of ground level retail and restaurant space.

 

A parking study was required of Champion to determine the level of parking that would be sufficient for Phase II improvements as well as an additional 276 parking spaces for the general public as required under the existing Owner Participation Agreement.  Based the results of the parking study, a six-level, 734-space, semi-subterranean parking structure (including 276 public parking spaces above and beyond the current estimated parking required for the proposed project) is proposed to be connected to the existing structure facing Orange Grove Avenue.  The proposed parking structure is designed to provide private, gated parking for the residential uses and parking for the retail/restaurant uses as well as accommodate the additional 276 public parking spaces.

 

The proposed Phase II development includes changes to project design, density and land uses that are different from those previously approved (including a residential component).  Champion has requested the separation of Phase I and Phase II into two separate projects including proposed amendments to the original Owner Participation Agreement, entitlements and related documents to reflect two separate owners for each phase of the project.

 

On April 27, 2004, staff was authorized to initiate negotiations with Champion to draft the required amendments the Owner Participation Agreement to develop a mixed-use residential project for Phase II.  One of the requirements of the Agency for the proposed change in land use is that 12.5% of the units (15) be made affordable to moderate-income households.  Over the past several months, staff has been diligently working with AMC and Champion to complete the requirements necessary to separate Phase I and Phase II improvements. 

 

ENTITLEMENTS:

 

PROPERTY LOCATION: Planned Development No. 98-2, as approved, governs development on a majority of a two (2) block area bounded by First Street, Magnolia Boulevard, San Fernando Boulevard, and Orange Grove Avenue.  The items considered in this request relate to the area identified as Phase II of Planned Development No. 98-2, which takes up most of the northern half of the block bounded by First Street, Palm Avenue, San Fernando Boulevard, and Orange Grove Avenue, excluding those properties that have frontage along San Fernando Boulevard. For the purposes of this report, the Phase II area will be referred to as the �subject property� (Exhibit B).

 

ZONING:  The subject property is currently zoned Planned Development No 98-2. The application includes a request to change the zoning of the property to Planned Development No. 2003-2. The property on the opposite side of the Palm pedestrian plaza is zoned Planned Development No. 98-2. Properties to the west and south of the project are zoned BCC-2 Burbank Center Limited Commercial. Properties to the east, along San Fernando Boulevard, are zoned BCC-1 Burbank Center Commercial Retail Professional.

 

GENERAL PLAN DESIGNATION:  The subject property has a General Plan Land Use designation of City Center Commercial. The property is located within the City Center Subarea of the Burbank Center Plan. This subarea has been divided into seven smaller planning areas. The project site is located within the Burbank Village, which is intended as a pedestrian-oriented environment that includes mixed-use residential projects. The project site is also located within the City Centre Redevelopment Project Area.

 

PROPERTY DIMENSIONS:  The property is generally rectangular with a length along the Palm pedestrian plaza of approximately 395 feet and a frontage along First Street of 210 feet. The total size of the property is 2.04 acres. The site includes thirty (30) feet of the former Palm Avenue right-of-way, which was vacated as part of the original Burbank Entertainment Village project.

 

STREET CLASSIFICATIONS:  The subject property only fronts on two (2) public rights-of-way, First Street and the remaining portion of Palm Avenue west of San Fernando Boulevard that has not been vacated. First Street is designated as a Collector Street with a right-of-way of eighty (80) feet (60 feet paved with 10 foot parkways). The portion of Palm Avenue that has not been vacated is improved as a pedestrian plaza and utilized by vehicles for deliveries only. The property will take some of its access through the existing parking structure along Orange Grove Avenue, which is designated as a Local Street but functions more as a Collector Street with a right-of-way of eighty (80) feet (60 feet paved with 10 foot parkways). 

 

BURBANK ENTERTAINMENT VILLAGE PROJECT: As noted above, the subject property is currently zoned Planned Development No. 98-2, which governs development of the site. Planned Development No. 98-2 was originally approved by the City Council in August 1999 and subsequently amended in August 2001. The planned development entitled the development of the Burbank Entertainment Village Project as a mixed-use retail and entertainment project anchored by an AMC 16 Theater complex.

 

Development of the Burbank Entertainment Village Project was separated into two phases. Phase I of the development is located on the north side of the Palm pedestrian plaza and consisted of the AMC 16 theaters, associated retail and restaurant spaces, and an underground parking structure (Table 1). Construction of the complex was completed and the theaters were opened in June 2003.

 

Table 1: Burbank Entertainment Village � Phase I (as built)

 

Land Use	Scope of Development
Theater	121,143 s.f. (4,232 seats)
Retail	8,243 s.f.
Restaurant	26,868 s.f.
Parking	250 spaces
Height	83 feet

 

Phase II of the Burbank Entertainment Village Project was intended for the subject property, across Palm Avenue from Phase I. Phase II is currently entitled to be developed as retail and restaurant space with a 45,000 square foot health club (Table 2). Phase II also included the construction of a parking structure that would be connected to the existing parking structure along Orange Grove Avenue. An important component of the Phase II development was the construction of 276 additional parking spaces beyond project demand for public use.

 

Table 2: Burbank Entertainment Village � Phase II (as approved)

 

Land Use	Scope of Development
Retail & Restaurant	39,401 s.f.
Health Club	45,000 s.f.
Parking �  Spaces for commercial demand �  Additional public spaces Total Parking	353 276 629
Height	75 feet

 

PROJECT DESCRIPTION: The project involves two (2) separate entitlement requests, both relating to the development of Phase II of the Burbank Entertainment Village Project. The two (2) requests are interconnected, with each request being contingent upon the approval of the other. (Exhibits C-1 through C-4)

 

AMC has requested an amendment to Planned Development No. 98-2 in order to remove all Phase II entitlement obligations from the Burbank Entertainment Village Project (Exhibit C-1). This amendment would allow development of Phase II to occur under a separate development agreement with the City and act as a separate project. Through this process, Planned Development No. 98-2 would be modified in scope to include the Phase I project as it is currently approved and developed.

 

The second entitlement request is for a new planned development, Planned Development No. 2003-2, in order to develop the Phase II portion of the Burbank Entertainment Village Project. Champion Development has proposed to construct a mixed-use project on the site called the Collection at Downtown Burbank (Exhibits C-2 through C-4).

 

The project, as proposed, involves the construction of 50,000 square feet of retail and restaurant space, 118 for-sale condominium units (with a total floor area of 172,233 square feet), and the construction of a multi-level subterranean and above grade parking garage. The retail and restaurant uses would be predominantly directed towards the Palm pedestrian plaza. A minimum of sixty (60) percent of the commercial space is to be dedicated towards retail uses.

 

The residential units would be placed on the upper levels of the project above the parking deck and commercial uses. The developer proposes to construct (3) levels of residential above the parking deck, with each of the upper level units including a second story. The proposal includes a variety of unit types from lofts to three (3) bedroom units. The units will be predominantly oriented towards three (3) courtyards that are to be constructed on top of the parking deck. Fifteen (15) of the units are to be sold to moderate-income buyers.

 

As noted above, the project includes a multi-level parking structure that will be integrated into the project. The parking structure is proposed to include 734 parking spaces. In order to provide secured parking for residents, the developer has proposed to reserve 236 parking spaces (2 spaces per unit) in the lower portion of the structure for residents. These parking spaces will be separated by an electronic gate and will have separate elevator access to the residential levels of the project. The balance of the parking will be available to the public and includes parking to meet the project�s demand and the additional 276 parking spaces originally required for Phase II of the Burbank Entertainment Village Project. Likewise, as required in the Burbank Entertainment Village Project, the structure will be connected to the existing parking structure on Orange Grove Avenue.

 

MUNICIPAL CODE CONFORMANCE: Pursuant to Section 31-19119 of the Burbank Municipal Code, the Planned Development process is an alternate process to accommodate unique developments which would create desirable, functional and community environment under controlled conditions of a development plan. The proposed actions would change the zoning of the property to Planned Development No. 2003-2, which would allow for the proposed project to be constructed in lieu of the previously approved project.

 

As noted previously, the current zoning of the project allows for the construction of Phase II of the Burbank Entertainment Village Project. Prior to the approval of Planned Development No. 98-2, the property was zoned BCC-2, which allows for residential uses to be established above commercial uses subject to the densities and standards of the R-4 Residential Multiple Medium Density zone.

 

While the proposal would create a new zone with its own development standards, it is helpful to compare the project to what would traditionally be required in the BCC-2 and R-4 zones (Table 3).  The following table describes a particular development standard and compares the project to the code requirements if this were not a Planned Development zone.

 

Table 3: Comparison with General Development Standards

 

Development standard	Code requirement	Proposed project
Land Use (mixed-use residential)	Conditional Use Permit required	Planned Development includes all other required entitlements
Density	1 unit per 750 square feet (118 units)	1 unit per 750 square feet (118 units)
Height	BCC-2 Standard � 70 feet without a conditional use permit (164 feet via CUP and 205 feet via Planned Development)	Approximately 68 feet above average grade.
Setbacks	BCC-2 Standard � 5 feet or 20 percent of building height (7 feet), whichever is greater, for front and exposed street side setbacks.	No setback proposed from First Street
Parking spaces	Parking to be determined through the conditional use permit process for project within the Downtown Parking District that are over 35� in height and/or include residential units.   Typical Downtown Parking District requirements � 3.5 spaces per 1,000 s.f. of adjusted gross floor area = 168 spaces   Condominium parking requirements � 2 spaces per unit = 236	734 total parking spaces provided   222 parking spaces for commercial uses   236 reserved parking spaces for residential   276 additional public parking spaces
Guest Parking	Guest parking � 1 for every 5 units = 24	Guest parking to be shared with commercial parking.
Parking dimensions	8�-6� x 18� residential, 9� x 18� commercial	9� x 18� stalls for all spaces
Tandem parking spaces	Not permitted for projects with more than 20 units	Allowed for up to 50 units
Open space exposure	8� window looking onto 20� of open space or public street from primary living area	Provided for all units
Common open space	150 s.f. per unit (17,700 s.f. total), minimum dimension of 27�x30� (80% open to sky) 15% landscaped, one tree per 600 s.f.	117 s.f. per unit provided in  courtyards, 100% open to sky 15% landscaping to be provided, 36 trees proposed in common open space area   10,440 s.f. of open space on Palm Avenue brings total to 205 s.f. per unit.   Courtyard dimensions � 2 courtyards 120� x 37�-6�, 1 courtyard 120� x 40�
Private open space	50 s.f. per unit, minimum depth of 5� � 42� opaque wall on courtyard level	All units will be provided with private open space with an average of 50 square feet per unit
Landscaping	15% of total lot area landscaped, one tree per 40� frontage one of which must be a 48� box and the remainder must be 24� boxes	Including residential courtyards and Palm Avenue paseo, approximately 28% of the site will be improved with landscaping or decorative hardscape. Substantially less the 15% of the area will contain planted landscaping.
Amenities	6 of: spa, gazebo, BBQ, play/recreation equipment, tables, chairs or benches 1 of: pool, shuffleboard, badminton, volleyball, miniature golf or exercise room   1 of: tennis court, community room	The submitted plans indicate that a swimming pool and community room are proposed. Developer will be required to indicate the location of all items required from the first list.
Fa�ade requirements (downtown special area)	Visual variation, front elevation may be built to front yard setback if balconies are provided for each unit on that elevation, do not exceed 36� without at lest 3�x 4� break (can use balconies), other requirements such as up to 10% of first floor area may have tower element	Visual variation provided through breaks, balconies, architectural treatments, and materials.
Art in public places	1% of total project cost	Will be provided, subject to committee approval

 

STATE AFFORDABLE HOUSING LAW: State law encourages local governments to provide developers with incentives or concessions for the production of affordable housing units. Reductions in site development standards, zoning code requirements, and architectural design criteria that exceed the minimum building code requirements are identified as possible concessions that a local government could provide.

 

DOWNTOWN PARKING MANAGEMENT COMMITTEE: The proposed project was presented to the Downtown Parking Management Committee on September 23, 2004. The committee was presented with a project description and details regarding the parking proposed for the project. The committee voted unanimously to recommend approval of the project and indicated support for an elevator on the east end of the proposed parking structure to provide better access to San Fernando Boulevard properties. Because of cost constraints and physical limitations of the site, the developer was unable to provide an elevator at this location.   Additionally, the committee expressed support for the proposed opening from the parking structure to the paseo parallel to San Fernando as a means to help support those businesses as well as provide better pedestrian access to the structure.  The developer indicated they have  included this opening in the proposed parking structure design.

 

The proposed project was also presented to the Downtown Property Based Improvement District (PBID) Board on June 21, 2004. PBID Board members were generally supportive of the project but expressed an interest in ensuring that the project would not create a parking impact on the area.

 

PUBLIC CORRESPONDENCE: The Planning Division has received no comments or correspondence regarding the application.  Any additional comments received prior to the joint public hearing will be forwarded to the City Council and Redevelopment Agency Board.

 

LAND USE ANALYSIS:

 

Planned Developments involve the establishment of new zones with established uses and development standards that are tailored to the particular development. The Planned Development process is intended to result in projects that would be harmonious with the surrounding community under the controlled conditions of a development plan.

 

SURROUNDING NEIGHBORHOOD: The project site is located within the middle of the Downtown area of Burbank. The site is surrounded by a variety of commercial uses including restaurants and theaters and within walking distance of the Burbank Town Center and City Hall. 

 

COMPARISON WITH PRIOR APPROVALS: The site is presently entitled as Phase II of the Burbank Entertainment Village Project. The proposed planned development would modify the types and intensities of uses allowed on the site.

 

Phase II of the Burbank Entertainment Village Project envisioned the construction of a commercial project which included 35,000 square feet of restaurant and retail uses and was anchored by a 45,000 square foot health club. The project was required to provide a 629 space parking structure that was to be connected to the existing parking structure on Orange Grove Avenue. The total parking requirement included 353 spaces for the commercial uses on site and an additional 276 spaces for surplus public parking.

 

While the proposed project would increase the amount of retail and restaurant uses to a maximum of 50,000 square feet, the primary difference between the projects is the removal of the health club component in favor of 118 residential units with a maximum floor area of 172,233 square feet. As a result of these changes, the proposed project would provide 734 parking spaces. Of these spaces, 236 spaces are to be reserved for residential uses, leaving 498 parking spaces available to the general public (222 spaces for the commercial uses on-site and an additional 276 public spaces beyond the project demand to further enhance the parking supply in the Downtown.

 

Table 4: Comparison of Current and Proposed Projects

 

Land Use	Existing Entitlement (PD 98-2)	Proposed Entitlement (PD 2003�2)	Difference
Retail/Restaurant	39,401 s.f.	50,000 s.f.	+10,599 s.f.
Health Club	45,000 s.f.	Not included	-45,000 s.f.
For Sale Residential	Not included	118 (172,233 s.f.)	+118 (172,233 s.f.)
Parking �   For commercial demand �   Additional public spaces �   Reserved spaces   Total Parking	353   276   0     629	222   276   236     734	-131   0   +236     +105

 

PROJECT CHARACTERISTICS: The proposed project involves the construction of a mixed-use residential project including 50,000 square feet of retail/restaurant space and 118 condominiums, fifteen (15) of which have been designated for moderate income buyers. As part of the Planned Development process, the developer has requested modifications from some of the standards typically applied to these projects in the interest of increased flexibility in design and resulting site constraints.

 

ARCHITECTURE/URBAN DESIGN FEATURES: The City has placed a strong focus on insuring that development within the Downtown is high quality and incorporates architecture and design principles that contribute to the overall success of the area. For this reason, the project has been reviewed by Nathan Cherry of RTKL Associates for consistency with the City�s goals and objectives for urban and architectural design for the Downtown area.

 

The design of the project is an attempt to create a project that is separate from but compatible with the Burbank Entertainment Village Project. As such, the building design along the Palm pedestrian plaza attempts to carry over the entertainment theme from the theaters through signage and other design elements.

 

The commercial portion of the project is intended to integrate into the existing environment along the Palm pedestrian plaza. To accomplish this objective, the project attempts to develop active storefronts along the Palm pedestrian plaza. Additionally, the project includes a direct pedestrian connection from the parking structure to a pedestrian plaza through the use of an arcade which is directly opposite the entrance to the theaters. The project also incorporates pedestrian exits on to the paseo that runs parallel to San Fernando Boulevard as a means to provide greater access to the businesses along San Fernando (as suggested by the Downtown Parking Management Committee).

 

The residential component of the project is predominantly oriented towards the interior of the project, reducing the potential for conflicts between the commercial activity along Palm Avenue and residents. The internal courtyards are isolated from the commercial areas in an attempt to create a private area for residents. However, the lobby for the residential component is located along the paseo parallel to San Fernando in order to develop a pedestrian linkage between the units and the commercial uses.

 

In general, the project achieves the overall design objectives for the Downtown area by utilizing design components that are intended to encourage pedestrian activity. The proposed restaurant use along First Street mirrors the design of the Burbank Entertainment Village Project and is intended to enhance pedestrian activity along First Street. The project minimizes the impact of the parking structure by locating it in the rear of the property and placing a substantial portion of the parking below ground.

 

HEIGHT:  In the Burbank Center Plan area, the maximum height permitted by right is seventy (70) feet. This height can be exceeded to 164 feet through the conditional use permit process and as much as 205 feet through the Planned Development process.

 

In Burbank, building height is measured from the average grade of the lot. The subject property has approximately twenty (20) feet of grade difference from the east property line to First Street. As such, the impact of building height is impacted by natural grade conditions.

 

The maximum building height for the proposed project is approximately sixty-eight (68) feet above average grade of the property. However, the majority of the buildings are constructed from the level of Palm Avenue. As such, the maximum height of the structure in relationship to Palm Avenue is approximately sixty-two (62) feet. The portion of the building that fronts on First Street is approximately seventy-two (72) feet above the surrounding grade.

 

SETBACKS:  Generally, projects within the BCC-2 zone are subject to a setback requirement for portions of the building along a public street. The building setback required is the greater of five (5) feet or twenty-five (25) percent of the building height. Based upon this requirement, the project setback would be fourteen (14) feet.

 

The Downtown area is intended to be a pedestrian oriented environment, encouraging people to park at centralized parking structures and walk to their destinations. A common method utilized by urban designers to encourage a pedestrian orientation is to reduce or eliminate building setbacks. This design element brings activities closer to the street, encouraging more pedestrian activity along the street.

 

In order to establish a pedestrian environment on First Street, the developer is requesting to eliminate the setback requirement from First Street. This request is consistent with the existing entitlement for Phase II of the Burbank Entertainment Village Project and the development of Phase I of the project, and with prevailing setbacks in the Downtown area.

 

PARKING: The project is located within the boundaries of the Downtown Parking District, which was established in an effort to invigorate business development in the Downtown by utilizing a shared parking methodology to address parking in the area. Projects within the District are subject to a parking requirement of 3.5 spaces per 1,000 square feet of adjusted gross floor area for new development. However, the Municipal Code includes a provision that all new construction that exceeds thirty-five (35) feet in height and all residential construction shall have their parking requirements determined through the conditional use permit process.

 

The proposed project is both greater than thirty-five (35) feet in height and includes residential uses. As such, a part of the project review includes a parking determination. For this reason, staff contracted with the firm of Meyer, Mohaddes Associates (MMA) to prepare a parking study for the project (Exhibit D).  The parking study was based upon a shared use analysis of the commercial activities on the site and the guest parking for residential uses. MMA also reviewed overall parking conditions in the two (2) block area bounded by San Fernando Boulevard, Magnolia Boulevard, First Street , and Orange Grove Avenue and the six (6) block area bounded by Third Street, Magnolia Boulevard, First Street, and Olive Avenue to ensure that the project did not negatively effect parking supply in the area.

 

A shared parking analysis including spaces designated for residential units would not be appropriate as these spaces are to be secured from the public parking. Such an analysis would have shown a lower demand because of the potential sharing of residential spaces. In lieu of utilizing a shared analysis for the residential units, the developer has proposed to provide the Municipal Code requirement of two (2) parking spaces per unit. The 236 residential spaces will be located on the lower levels of the parking structure within a secured area. A portion of the residential parking spaces are proposed to be tandem spaces.

 

The parking study analyzed the sharing of parking between the restaurant, retail, and residential guest parking for the project. Based upon the analysis conducted by MMA, the peak demand for these components of the project occurs on Saturday evenings, when a total of 222 parking spaces are required.

 

In addition to the demand indicated by the parking study, the developer will also provide 276 additional public parking spaces within the structure beyond project demand to further enhance parking supply in the Downtown. As such, the project will provide a total of 734 parking spaces (236 spaces for the residential units, 222 spaces for the shared peak demand, and 276 additional public parking spaces).

 

In order to assist with the marketing of the project to perspective tenants, the developer has requested that up to forty (40) parking spaces be identified for use by the customers of the two (2) 5,000 square foot retail tenants.  In order to maintain the concept of shared parking for the project, staff has proposed a condition of approval which would limit the identification of these spaces to signage only.  The proposed condition of approval would prohibit the developer from establishing any additional enforcement provisions beyond those that are applicable to the remaining spaces.  By ensuring that these spaces would not be subject to any additional enforcement or validation, it is staff�s assessment that the proposal would be consistent with the shared parking concept for the project.  The location of these spaces would be subject to the approval of the Community Development Director.

 

Tandem Spaces

The developer has requested to allow some of the residential parking to be provided in tandem spaces. Specifically, the request is to provide the parking for up to fifty (50) units with two (2) spaces in tandem in lieu of two (2) non-tandem spaces. The majority of these for-sale units would have fewer than two (2) bedrooms and would have a parking requirement of less than two (2) spaces per unit if they were rentals. As these units are more likely to have fewer cars, the potential nuisance created by tandem spaces is minimized. Likewise, the lack of on-street parking in the area and the time constraints imposed on the public parking reduce the likelihood of impacts resulting from the use of tandem spaces.

 

LOADING AREAS:  The project is proposed to include two (2) loading spaces in lieu of the three (3) typically required for a commercial project of this size. This reduction is primarily due to site constraints and is consistent with the approvals of Phase II of the Burbank Entertainment Village Project. Additionally, the location and size of the retail spaces decreases the demand for larger loading spaces.

 

MULTIFAMILY DEVELOPMENT STANDARDS: Section 31-1113 of the Burbank Municipal Code establishes design guidelines for multifamily residential projects in the City of Burbank. The intent of the code requirements is to ensure that multi-family projects within the City are constructed to a consistent, high quality of development. The requirements serve to ensure that residents are provided with amenities and designs that contribute to a good quality of life while ensuring that new projects do not impact the quality of life of surrounding residents.

 

Based upon a preliminary review of the project, it would appear that, while the development is generally consistent with the intent of the multi-family design standards, the proposed design includes minor deviations from standards typically applied to multi-family development. These deviations are the function of site constraints and architectural considerations. Additionally, deviations result from the project�s location within the center of Downtown Burbank, surrounded by entertainment and dining amenities. The deviations are discussed in further detail below.

 

PRIVATE OPEN SPACE:  The Municipal Code requires that each unit be provided with fifty (50) square feet of private open space area. As proposed, each unit will include private open space area. However, in an effort to provide design and architectural flexibility, the developer has proposed to provide an average of fifty (50) square feet per unit. While some units may have less than fifty (50) square feet of private open space, the units include large window areas that provide additional exposure to public open space areas.

 

COMMON OPEN SPACE: Each multifamily residential project is required to provide at least 150 square feet of common open space area per unit. Based upon the plans submitted, the common open space area provided for each unit is approximately 117 square feet. However, the developer has requested to include the portion of Palm Avenue that is within the subject property towards the common open space area, bringing the total common open space to 205 square feet per unit. This area, along with the portion of the pedestrian plaza on the Burbank Entertainment Village Project property, functions as a pedestrian plaza which can also be used by tenants.

 

ENTRIES:  Every multi-family building and structure is required to have entry onto the street. The intent of the requirement is to give projects a visible entry from public spaces. The developer has proposed to provide a residential lobby on the Palm Avenue level which would be accessed from the privately owned paseo running parallel to San Fernando Boulevard. Since the paseo is private property, the project would be required to obtain an easement to permit access to the lobby. The paseo functions as a public open space and would be consistent with the intent of the requirement.

 

Based upon the conceptual nature of the plans, these were the only deviations from the multi-family design standards noted. However, as the plans attain a greater level of specificity, the dynamics of the site and architectural considerations may result in additional minor deviations to the multi-family development standards. As such, the proposal includes a provision that would allow the Community Development Director to approve minor deviations from the multi-family development standards that are determined to be consistent with the intent of the standards as well as the approved plans.

 

LANDSCAPING:  The Burbank Municipal Code establishes separate landscaping requirements for residential and commercial/industrial projects. While a mixed-use residential project contains elements of commercial and residential, the Code applies the residential requirements.

 

The landscaping requirements for multi-family residential projects are typically achieved through the landscaping of common open space areas and required setbacks. Setbacks for residential projects are considerably larger than those for commercial projects. As such, the residential landscaping requirement of fifteen (15) percent of the area being covered in planted landscape material is more difficult to meet in mixed-use projects. In contrast, commercial projects are only required to landscape fifty (50) percent of front and exposed side yards.

 

Approximately twenty-eight (28) percent of the project site is improved with landscaping and decorative hardscape features. This area includes the portion of Palm Avenue that is part of the subject property and the courtyards for the residential units that are located above the parking deck. Palm Avenue is predominantly improved with hardscape in order to achieve a pedestrian environment. As such, the project is unable to meet the multi-family residential requirement that fifteen (15) percent of the lot area be improved with planted landscaping. However, the developer will work with staff to provide additional landscaping along the Palm pedestrian plaza and First Street.

 

TRAFFIC CIRCULATION:  The project site has frontage on one (1) public street. However, the proposed parking structure will be connected to the existing parking structure along Orange Grove Avenue. Additionally, access from First Street will be restricted to right turns only. As a result, the majority of traffic to the site will be from Orange Grove Avenue.

 

A traffic study was prepared for the project by MMA (Exhibit D).  The study indicates that the project will not result in a significant traffic impact and that no mitigation was required. However, staff has proposed a condition of approval that would require a right-turn pocket to be constructed on First Street at the entrance to the parking structure if the Traffic Engineer deems it necessary. Circulation within and between the parking structures will be consistent with City standards.

 

NOISE: Like any construction activity, the construction phase of this project will create an increase in the ambient noise level in the vicinity. The project is located among entertainment, retail, and restaurant uses that typically experience higher levels of activity during evenings and weekends. Due to the potential impact of construction noise on surrounding uses, the hours during which exterior construction activities can occur has been limited to between 7:00 a.m. and 6:00 p.m., Monday through Friday.

 

By virtue of its location within the Downtown area, the project site is located within a noise-impacted area as designated by the General Plan. As such, State law requires that an acoustical study be submitted prior to issuance of a building permit. The study is intended to demonstrate how the project will be designed to ensure that interior noise levels meet acceptable levels for residences.

 

SIGNAGE:  While the Collection and Burbank Entertainment Village projects are intended to be separate from an entitlement standpoint, the project�s physical relationship and shared parking attributes create the need for consistency in certain design elements. As such, the Collection will be subject to the sign requirements established by the Sign Program for the Burbank Entertainment Village Project. Additionally, the project will incorporate internal directional signage from the parking areas to the theaters.

 

As proposed, the project includes a number of opportunities for signage along Palm Avenue and First Street. The project includes advertising signs on the fa�ade of the building which will advertise products sold in the proposed project as well as the Burbank Entertainment Village Project. These signs are proposed to be internally illuminated.

 

The Collection is also proposed to include a video display feature on the roof of the building along First Street. This signage is intended to create an entertainment environment for the project that will further enhance its connection with the Burbank Entertainment Village Project. The video sign is intended to provide a dynamic form of advertising for tenants of the project as well as Downtown Burbank.  As such, twenty-five (25) percent of the video display signage is proposed to be set aside for the City�s use to promote Downtown Burbank.

 

The location of the proposed video display can be viewed from the freeway. As such, the sign was reviewed by the Police Department and Traffic Engineer. Both parties indicated a concern about the potential for distraction to motorists and recommended a limitation on how often the copy could be changed. As such, a condition of approval has been proposed which would require the signage to be approved by the Traffic Engineer and Community Development Director.

 

DEPARTMENT COMMENTS: The subject application and plans were routed to City departments and divisions for review and comment. No departments or divisions expressed opposition to the project. All requested conditions of approval have been incorporated into the project and are listed under the appropriate heading. All code related comments from the departments and divisions (Exhibits E-1 through E-8) have been included in the partial list of code requirements. 

 

ENVIRONMENTAL REVIEW: Pursuant to the California Environmental Quality Act (CEQA), a Mitigated Negative Declaration has been prepared for the project which indicates that, with the incorporation of the proposed mitigation measures, the project will not have a significant impact on the environment. The Mitigated Negative Declaration specifically identifies potential impacts and mitigation relating to air quality, noise, and traffic (Exhibit F).

 

PLANNED DEVELOPMENT FINDINGS:  Section 31-19127(h)(3) of the Burbank Municipal Code states that prior to approval of a Planned Development, the Planned Development must be found consistent with the General Plan and all applicable community plans and that the design criteria identified in Section 31-19124 of the Burbank Municipal Code have been satisfied.

 

GENERAL PLAN AND COMMUNITY PLAN CONSISTENCY: The proposed Planned Development is located within the Burbank Center Plan area. As such, it must be consistent with the Burbank Center Plan as well as the General Plan.

 

Consistency with the General Plan- The Land Use Element of the General Plan identifies the Planned Development process as a means to facilitate and encourage unique development process provided that development is consistent with the General Plan. The General Plan designation for the subject property is City Center Commercial. This designation is intended for activities which support the role of the City Center as the primary business, financial, retailing, and government core of Burbank. Medium and high density residential development is considered compatible in the City Center area.

 

The City has established several policies relating to development of the City Center Commercial land use. These policies include encouraging ground floor retail, restaurant, and entertainment uses and mixed use development with residential on the upper floor. Architecture that promotes pedestrian activity and the creation of a pedestrian circulation system linking retail uses to parking are also encouraged.

 

The proposal is consistent with the uses and policies established for the City Center Commercial land use designation. The site is an appropriate location for a mixed-use residential project and includes elements that are intended to enhance pedestrian activity.

 

Consistency with the Burbank Center Plan- The project site is located within the City Center subarea of the Burbank Center Plan. Specifically, the project is located within the Burbank Village, an area with a focus on pedestrian-oriented development. The Burbank Center Plan contemplates the establishment of residential units in this area above the ground floor. The land use policies established for this area include the development of pedestrian-oriented businesses, fostering a pedestrian environment through decorative sidewalks and street furniture, the development of multilevel mixed-use project with residential above retail, and the development of uses that will maximize the area�s potential as a daytime, evening, and weekday activity center.

 

The proposed development of a mixed-use residential project is consistent with the goals set for the Burbank Village. The Palm Avenue paseo and the proposed commercial uses fronting it are intended to enhance the level of pedestrian activity. The establishment of a core residential population in the area will create a population base that will ensure activity during all time periods throughout the week.

 

DESIGN REVIEW CRITERIA:  Section 31-19124 of the Burbank Municipal Code establishes nine (9) design review criteria for Planned Development applications.

 

q       The design of the overall planned development shall be comprehensive and shall embrace land, buildings, landscaping and their interrelationships and shall be substantially consistent with the General Plan and any applicable Element of the General Plan.

 

The project design incorporates pedestrian elements that integrate with the existing Palm Avenue pedestrian paseo. The commercial elements of the project interact with the Burbank Entertainment Village Project to create a plaza area that is beneficial to both projects as well as being an active community space. The residential component incorporates commercial design elements (signs, materials, etc.) to insure continuity along the Palm Avenue frontage while orienting the majority of units towards the internal courtyards as a way to minimize conflicts between the uses.

 

The project also takes advantage of the natural grade difference between San Fernando Boulevard and Palm Avenue as a means to provide parking for the project without increasing building height. Likewise, the building height adjusts with the natural grade to lessen the impact of massing on First Street and provide view opportunities for more residential units within the project.

  

q       The planned development shall provide for adequate permanent open areas, circulation, off-street parking, and pertinent pedestrian amenities. Building structures and facilities and accessory uses within the planned development shall be well integrated with each other and to the surrounding topographic and natural features of the area.

 

The project incorporates open areas in both the residential and commercial components. The commercial components of the project open onto Palm Avenue to further establish a pedestrian environment in the area. Likewise, the project includes a pedestrian lobby serving the residential units on the Palm Avenue level.

 

The project includes a parking structure that meets the parking demand for the uses within the project and provides an additional 276 parking spaces to supplement the supply of public parking in the Downtown area. The parking area is linked to Palm Avenue through an arcade that provides direct pedestrian access. Likewise, the parking structure includes vertical circulation to the paseo that runs parallel to San Fernando Boulevard, providing pedestrian access from the structure to those businesses as well.

 

q       The planned development shall be compatible with existing and planned land use on adjoining properties.

 

While the proposed project is intended to be separate from the Burbank Entertainment Village Project, it incorporates a number of elements that integrate the design of the existing project. Signage for the project is required to be consistent with the approved sign program for the Burbank Entertainment Village Project. Additionally, the relationship between the commercial uses in the proposed project and the Burbank Entertainment Village Project allows for easy pedestrian circulation between the projects, creating a seamless commercial environment. This effect is enhanced by the proposed access from the parking garage to Palm Avenue, which directly opens onto the entrance of the theater. The proposed First Street restaurant mirrors the current development along First Street.

 

The proposed connection between the parking structure for this project and the existing parking structure on Orange Grove both increases the supply of parking in the area and improves the efficiency of the structures. Likewise, the location of the parking provides easy access to the project and surrounding properties.

 

q       Any private street system or circulation system shall be designed for efficient and safe flow of vehicles, pedestrians, bicycles, and the handicapped, without creating a disruptive influence on the activity and functions of any area or facility

 

The parking garage will be constructed pursuant to all applicable City standards to ensure that appropriate access and traffic flow can be maintained. The residential parking will be separated from the commercial parking areas to minimize parking conflicts between the two (2) uses. The proposed connection between the proposed parking structure and the existing Orange Grove parking structure shall be constructed so as to create minimal impact on circulation and parking supply.

 

q       The public street system within or adjacent to a planned development shall be designed for the efficient and safe flow of vehicles (including transit vehicles), pedestrians, bicycles, and the handicapped. Public streets shall be designed using standard City lane widths, capacities, and travel speeds. The design shall also include adequate space and improvements for transit vehicles and facilities for bicycle and pedestrian circulation. City standard entrance control requirements shall be maintained. Design of major streets shall also provide sidewalks, adequate street lighting, and concrete median islands on arterial streets.

 

There is no public street system proposed as part of the project. A traffic study has indicated that the project would not have a significant impact on existing traffic flow and would not require substantial improvements to the surrounding rights-of-way. The project will be designed in accordance with all City standards regarding ingress and egress.

 

q       Common area and recreational facilities shall be located so as to be readily accessible to the occupants of residential uses.

 

The project includes three (3) courtyard areas serving the residential units that are accessible to residents. The project also continues the utilization of the former Palm Avenue right-of-way as open space that can be utilized by residential and commercial users.

 

q       Compatibility of architectural design and appearance including signing throughout the planned development shall be sought. In addition, architectural harmony with surrounding neighborhoods shall be achieved so far as practicable.

 

Though the project contains a mixture of uses, the architecture is intended to create a consistent architectural treatment on all public facades. The project will utilize the sign program approved for the Burbank Entertainment Village Project in order to create a consistent visual character. Likewise, the architecture of the project is compatible with the existing architecture in the area, particularly the Burbank Entertainment Village Project.

 

q       Where applicable, an adequate variety of uses and facilities shall be provided in order to meet the needs of the planned development and adjacent neighborhoods.

 

The planned development includes a mixture of retail/restaurant uses and residential units. The retail and restaurant uses, in addition to serving clientele from outside the project, will provide shopping and dining opportunities for residents. Furthermore, the location of the project within the Downtown area provides residents with an array of shopping, dining, and entertainment opportunities within easy walking distance of the site.

 

q       The planned development and each building intended for occupancy shall be designed, placed, and oriented in manner conducive to the conservation of energy.

 

The developer will be required to comply with all applicable City requirements intended for energy reduction.

 

LAND USE CONCLUSIONS:  The purpose of the Planned Development process is to provide an alternate process to accommodate unique developments for residential, commercial, professional, or other similar activities, including modified development standards which would create a desirable, functional and community environment under controlled conditions of a development plan.  The proposed mixed-use project meets the requirements of this process.

 

PLANNING BOARD ACTION: The Planning Board considered the subject request at its regular meeting of October 11, 2004. The staff recommendation was to recommend the project for approval.

 

Following deliberations that focused on site circulation and the design of the project, particularly the proposed architectural design and landscaping, the proposed signage, and the circulation of the parking structure, the Board recommended several modifications to the project. The Board recommended that conditions of approval address the traffic flow and access within and between the parking structures, incorporate the proposed affordable housing requirement, and include additional requirements on the project�s landscaping and street furniture. The Board also suggested that the video display sign be limited to one (1) side. The Board noted that the proposed loading areas should meet City standards and be functional for both residential and commercial tenants. The Board also wished to ensure that any utility connections would be adequately screened.

 

The Planning Board voted 5-0 to recommend approval of the project (Resolutions attached as Exhibits G-1 and G-2; minutes for October 11, 2004 meeting attached as Exhibit G-3).

 

These items have been incorporated into the conditions of approval for the project.

 

REDEVELOPMENT AGENCY ACTIVITIES

 

A Second Implementation Agreement to the approved Owner Participation Agreement and an Amended and Restated Owner Participation Agreement (�Amended and Restated OPA�) have been negotiated to separate the obligations and responsibilities of AMC for the Phase I project, as currently approved and built, from the obligations and responsibilities of Champion Development for the proposed Phase II project.

 

The purpose of the Amended and Restated OPA is to document the redevelopment and economic transaction and to outline the roles and responsibilities of both the Agency and Champion Development.  Salient provisions of the proposed Amended and Restated Owner Participation Agreement include the following:

 

DEVELOPER ACQUISITION OF PHASE II SITE AND AGENCY APPROVAL OF TRANSFER OF PHASE II SITE AND OWNER PARTICIPATION AGREEMENT OBLIGATIONS

• Champion Realty, Ltd., or approved assignee, will purchase the Phase II site from Burbank Entertainment Village, L.L.C./AMC.

• The Agency�s final approval of the conveyance of the Phase II Site from AMC to Champion shall be contingent upon the following:

• The Agency�s review and approval of the Champion�s evidence of financing for the acquisition of the Southern Site and construction of the Phase II Improvements pursuant to Section 603.3 of the Owner Participation Agreement.  The Developer�s financing for the acquisition and construction of the Site shall close or be ready to close prior to the final approval of the Transfer;

• It has long been intended that the public parking component of the Phase II structure would be financed by a Community Facilities District.  This funding mechanism provides tax exempt financing at favorable interest rates.  Champion Development has requested to continue with this funding mechanism.  Therefore, a requirement of the Amended and Restated Owner Participation Agreement is that the Community Facilities District shall have been formed and the Community Facilities District Special Tax approved contingent upon the transfer of title to Champion;

• In addition, Champion shall have submitted a complete set of construction drawings for proposed Phase II improvements to the Agency for its review and to the City for its plan-check process.

 

ADDITIONAL DEVELOPER RESPONSIBILITIES

• The Developer will construct a mixed-use project consisting of a maximum of 118 for-sale condominium units located above a maximum of 50,000 square feet of ground level retail/restaurant space in accordance with Planned Development No. 2003-2; 

• Up to 40% of the retail/restaurant component can be used for specialty and sit-down restaurant uses subject to prior approval by the City and the provision of required parking spaces.  The Project shall have at least two sub-anchor retail tenants leasing up to 5,000 square feet each.  A new restaurant and retail list of tenants would be mutually agreed upon by the Developer and the Agency.  The list of the pre-approved sub-anchor tenant(s) and the other tenants is set forth as an attachment to the Amended and Restated Owner Participation Agreement.  Those tenants on the list shall be deemed approved by the Agency.  The Agency shall maintain �reasonable approval� rights over retail and restaurant tenants not on the approved list.

• Developer will construct a parking structure on the Phase II Site, consisting of parking spaces required for the project based on a parking study plus 276 additional public parking spaces (�New Parking Structure.  The New Parking Structure will be subdivided into three legal components; a component to be owned by the condominium owners, a component to be owned by the owner of the Project�s commercial component, and the public component to be owned by the Agency, City, or Parking Authority. �).  Once the Phase II parking structure is completed, the Developer must convey the public parking component to the Agency for $1.  The commercial component of the parking structure, despite private ownership, will be required to be open to the public on a non-reserved, non-exclusive basis for those hours designated for public parking in accordance with Downtown parking standards.  The New Parking Structure shall connect to the existing Orange Grove Parking structure, thus allowing access to the New Parking Structure�s public parking spaces from Orange Grove Avenue as well as First Street; 

• The Developer shall pay for all costs to construct all of the improvements on the Phase II site.  This includes the New Parking Structure, subject only to the Agency�s obligation to contribute pursuant to the Community Facilities District financing structure and pro rata contribution to the Community Facilities District Special Tax attributable to $5 million in net bond proceeds.  Such proceeds are limited to 75% of the tax increment generated by the Phase I and Phase II projects;

• The proposed mixed-use development shall be designed and constructed in a high quality fashion.  The Agency shall have approval rights over the design and exterior appearance of the Project including but not limited to colors, materials, landscaping, signage and art-in-public places;

• The Developer shall pay for all on-site and off-site improvements (except for the Agency�s $5 million contribution towards the construction of 276 public parking spaces in  the Phase II parking structure plus bond issuance costs);

• The Developer shall be responsible for constructing all public improvements required as a condition of development approval;

• Developer shall be responsible for all development entitlement applications, permits, plan check fees and all fees levied by public entities, inside and outside the City and Agency;

• The development must comply with all City codes and development standards;

• The residential component of the project must be subdivided and sold as condominium units and may not be operated as apartments. 

• The Developer�s Declaration of Covenants, Conditions and Restrictions for the residential component shall be subject to the reasonable approval of the Agency, and the City and Agency must be named as third party beneficiaries as to the provisions regarding maintenance and upkeep of the common areas of the residential component.

• The Developer shall complete the project in a timely manner as described in the Schedule of Performance;

• The Developer is required to comply with the state prevailing wage law with respect to construction of the Phase II improvements.  The Developer will be required to pay prevailing wages for the construction of the New Parking Structure.  The Developer will also be required to pay prevailing wages on the remainder of the Phase II Improvements if required to do so by the Department of Industrial Relations.

• The Developer will sell fifteen (15) or 12.5% of the 700 square foot, one-bedroom studio residential units (�Affordable Units�) to households earning less than 120% of the Los Angeles County median income (that qualify under the moderate-income definition as defined in California Health and Safety Code Section 50093). 

In order to provide the residential affordability component, the Developer is responsible for creating and using an Agency-approved selection process for these units.  The marketing efforts will include Burbank residents and the homebuyer must occupy the unit as their primary residence.  The Affordable Units will be sold at purchase prices that are calculated so that the buyer�s monthly housing cost does not exceed �Affordable Housing Cost� (as defined in Health and Safely Section 50052.5(b)(3)) for the year the affordable units are sold.  The affordable sales price is currently estimated at $164,800.  

 

The Affordable Units shall be subject to affordability covenants that are to remain in place for 45 years. The home buyers will be allowed to �buy out� of the covenant prior to the expiration of the term in accordance with silent second trust deeds that will be placed on the homes.  The Agency will be the beneficiary of the second trust deeds.  The silent second trust deeds will be in the amount of the gap between the imputed market rate prices of the affordable units and the affordable purchase prices. The average trust deed amount is estimated at $108,200 per unit. The silent second trust deeds will also require payment of an �equity share� required by the Community Redevelopment Law. No Agency financial assistance will be provided to bridge the gap between the market rate sales prices and the Affordable Sales Price of the affordable units.

 

OTHER PROVISIONS

• Southern Site Option:  After the transfer of title to Champion, in the event of an uncured default, the Agency will have the right to purchase the Phase II site for $1 plus existing debt, which will not include debt associated with the acquisition costs.

• Restriction on Transfer:  Champion will not be permitted to transfer, assign, or convey the Southern Site or Phase II obligations to any other developer without the express written approval of the Agency.  The Amendment and Restated Owner Participation Agreement provides for transfers to entities in which Champion has a controlling interest and managerial control.

• Assessed Valuation:  The Amended and Restated Owner Participation Agreement has been modified to address a minimum assessed valuation for the commercial component of Phase II alone.  The owner of the Phase II commercial component shall not apply for a reduction in assessed valuation for the commercial components such that the assessed valuation for that component is less than $16.65 million.

• That portion of Palm Avenue owned by the City (between San Fernando Boulevard and First Street) may be used as an outdoor entertainment venue including kiosks, outdoor performances and special events subject to prior approval by the City and Redevelopment Agency staff.

AGENCY RESPONSIBILITIES

 

The Agency responsibilities remain substantively unchanged pursuant to the provisions of the approved Owner Participation Agreement dated August 3, 1999 as amended by the Implementation Agreement dated August 29, 2001 and include the following:

• The Agency shall assist with funding of the Phase Two public parking structure from the tax increment generated from both Phases I and II (new property tax revenues).  The Agency will be required to reimburse the Developer the amount sufficient to pay the Community Facilities District Special Tax attributable to $5 million in net bond proceeds.  The Agency�s assistance will be limited to 75% of the tax increment generated from the Phase I and Phase II sites (The remaining 25% of tax increment is earmarked for 20% Set Aside Affordable Housing uses and 5% for the Youth Endowment Service Fund or YES Fund).

In accordance with Section 33433 of the California Health and Safety Code (California Community Development Law) a Summary Report has been prepared by the Agency�s financial consultant, Keyser Marston Associates, and is included as Exhibit H of this report.  The Summary or 33433 Report sets forth certain details of the proposed Amendment to the Owner Participation Agreement between the Agency and the Developer including the cost of the Agreement to the Agency.

 

In addition, pursuant to the California Community Development Law, the Amendment to the Owner Participation Agreement, Second Implementation Agreement to the Owner Participation Agreement and 33433 Report have been made available for public review immediately following the initial publication (November 6, 2004) of the public notice (Exhibit I).

 

FISCAL IMPACTS:

 

This section of the report is organized into two primary components:  1) the cost of the proposed project to the Agency; and 2) the anticipated Agency revenue to be generated by the proposed project.  In addition to preparing the 33433 Report, Keyser Marston Associates prepared a project reuse valuation analysis and the following summarizes these documents and the overall project economics (Exhibit J).

 

TOTAL AGENCY COSTS

The estimated costs to be incurred by the Agency for Phase I and Phase II of the AMC project have not changed since the original Owner Participation Agreement and Implementation Agreement to the Owner Participation Agreement was executed.  By the time the Phase II site is ready to be conveyed to the Developer from AMC, the Agency will have spent approximately $14.7 million in nominal terms or $10.4 million in present value terms (using a 6% discount rate). The costs for Phase I and Phase II of the AMC project are summarized as follows:

 

 

ANTICIPATED AGENCY REVENUE

The original Agreements provided the Agency with $1.16 million in land sales proceeds, which the Agency has already received.  In addition to land sales proceeds of $1.16 million, the Phase I and Phase II Projects will produce property tax increment revenue through 2022 (the last year in which the Agency can collect tax increment revenue in the City Center Redevelopment Project Area), totaling about $23.7 million in nominal terms or $13.2 million in present value terms (using a 6% discount rate). 

 

The current property tax increment projections are currently higher than the projections used in support of the Original Agreements for the following reasons:

1. The construction costs for the Phase I project were approximately $20 million higher than the original estimates; and

2. Based on the proposed changes to the development scope for the Phase II Project, the development value has increased by approximately $54 million.

Based on the preceding assumptions, total Agency revenues are projected at $24.9 million in nominal terms and $14.3 million in present value terms as summarized below:  

 

 

Under the terms of the 2004 Agreement, and given the current Agency cost and revenue projections, the Agency revenues exceed the Agency costs by $10.2 million in nominal terms or $3.9 million in present value terms.  The net revenues are presented in the following table:

 

 

PROJECT SCHEDULE

Assuming the proposed AMC Phase II project is approved on November 23, 2004, the proposed project schedule is summarized below:

 

Submission of Schematic Drawings	Completed
Opening of Escrow	Within 30 days after execution of the Agreements.
Submission of Design Development Drawings	Within 60 days after Agency approval of Schematic Drawings
Submit Construction Drawings	Within 120 days after Agency approval of Design Development Drawings
Satisfaction of Conditions Precedent	No later than July 30, 2005
Close Escrow	No later than August 30, 2005
Commence Construction	Within 30 days after the close of escrow (by September 30, 2005)
Complete Construction of Phase II Parking Structure	Within 17 months after the start of construction (by February 28, 2007)
Complete Construction of Entire Project	Within 24 months after the start of construction (by September 30, 2007)

 

CONCLUSION:

 

The Downtown revitalization strategy emphasizes the importance of encouraging quality commercial and residential development to help create an exciting 24-hour, 7-day a week environment where people want to live, work and play.  The success of the AMC 16 theater project has been vitally important to the success of the Downtown and has helped to create a unique entertainment venue that helps support and enhance existing businesses as well as attract new businesses to the area.

 

The proposed Collection at Downtown Burbank project will help fulfill the goals of this strategy by building upon the desired 24-hour, 7-day a week Downtown population, which will further enhance the Downtown area and help support existing businesses and Agency investments.  It will also build upon the entertainment synergism created by the new AMC 16 theaters as part of the Burbank Entertainment Village project.  The proposed project, as a component of the entire block�s master plan, will redevelop an underutilized and blighted block into a mixed-use, in-fill development that helps strengthen the economic viability of the Downtown. Furthermore, the proposed project supports the goals of the City Centre Redevelopment Plan as well as provides additional units to the City�s affordable housing inventory.  Additionally, the proposed project will help improve the financial strength of the City and Agency by generating approximately $350,000 in new sales tax revenues each year and about $3.9 million in net Agency revenues.

 

RECOMMENDATION:

 

Staff recommends that the Redevelopment Agency Board and the City Council adopt the proposed Ordinance and Resolution(s) approving the land use entitlements and purchase of privately-owned property for the proposed Collection at Downtown Burbank (AMC Phase II) project as described within this report.

 

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