PURPOSE:

The purpose of this report is for Council to consider a request by the developer, Crown Fairfield Associates, LLC, to transfer the Development Agreement (DA) and rights to develop the Planned Development (PD) project at 1935 North Buena Vista Street.  The developer proposes to assign the DA to Casden Burbank, LLC (Casden).

BACKGROUND AND ANALYSIS:

In February 2006, City Council approved a PD for a residential development at the corner of Buena Vista Street and Empire Avenue.  The project included 276 residential units, 1,000 square feet of retail space and parking for both uses.  In approving the PD, the City Council entered into a DA to develop the property in conformance with certain restrictions and conditions of approval.  The developer has decided not to move forward with the project and instead would like to transfer the property to another developer. (Exhibit A)  Casden is currently in escrow to purchase the property and wishes to construct the approved project.

In the DA, the City Council retained limited discretion to approve an assignment. (Exhibit B)  The Council recognized that the original approval was given because of the developer�s qualifications and experience with developing projects of this nature.  Therefore, the DA allows assignment if the Council confirms certain conditions can be met.  This is different than many other agreements the City has processed which require only a staff level approval of the assignment or sometimes an assignment at the discretion of only the developer.  This particular DA was structured more strictly to allow the Council to review the following conditions:

�11.01(c) The City agrees that it will give reasonable consideration to approving a request for approval of a Transfer in accordance for the standards of such approval set forth below, provided the Developer delivers written notice to the City requesting such approval.  Such notice shall be accompanied by evidence regarding the proposed transferee�s development and/or operational qualifications and experience, and its financial commitments and resources, in sufficient detail to enable the City to evaluate the proposed assignee or purchaser pursuant to the criteria set forth in this Section 11.01 and as reasonably determined by the City.  The City may, in considering any such request, take into consideration such factors as (i) the quality of any new and/or replacement developer (ii) the transferee�s past performance and experience as developer of high-quality mixed-use residential and retail developments (iii) the current financial condition of the transferee, and similar factors.

By the terms of the DA, Council has limited approval rights and is required by the DA to act reasonably in its consideration of this assignment and transfer request. Council does not have the right to deny a transfer request unless it can reasonably show that the proposed  new  developer, in this case, Casden, lacks qualifications and experience. Staff has reviewed the qualifications submitted by Casden (aka: Casden Properties, LLC) as well as a letter from one of their banking partners.  They develop high-quality residential and mixed-use projects.  They also have affordable housing experience which is a benefit because this project includes an affordable housing component.  Casden further has a history in the City of Burbank with creating upscale residential units (i.e. the Promenade Apartments).  Based on this review, it is apparent that Casden possesses ample experience and substantial financial commitments and resources. Further, Casden meets all of the additional factors set forth in Section 11.01(c) i, ii, and iii, specifically focusing on its� experience with producing high-quality mixed-use residential and retail developments, and its� solid current financial condition.

CONCLUSION AND RECOMMENDATION:

The City is contractually required to act reasonably in consideration of the transfer of the DA request.  Staff believes all of the requirements for a transfer are met and therefore recommends that City Council approve the transfer of the DA from Crown Fairfield, LLC to Casden.  Casden has executed an assignment and assumption agreement, subject to this City action, whereby Casden agrees to assume all of the obligations and responsibilities under the DA and PD.  Specifically, Casden will be required to meet all of the conditions of approval and construct the project as approved by the City Council in February 2006.

EXHIBITS:

Exhibit A          Letter from Crown Fairfield Associates, LLC requesting transfer

Exhibit B          Development Agreement (pages 24-25 discuss assignment provision)

Exhibit C          Qualifications of Casden Properties, LLC including letter from financial

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