The purpose of this report is to present the information necessary for Redevelopment Agency Board and City Council consideration of the proposed sale of Agency property and development entitlements for the Burbank Civic Plaza project. The specific land use applications for the 100,482 square feet ("sf") commercial building include: Planned Development No. 2002-3; Development Review No. 2002-43; and the associated Development Agreement. The terms of the proposed sale of Agency-owned property are documented in the proposed Disposition and Development Agreement ("DDA").

Opportunity Site No. 2 (commonly referred to as the old police block) is bound by Olive Avenue, Third Street, Angeleno Avenue and San Fernando Boulevard, excluding the corner parcel at Olive Avenue and San Fernando Boulevard, more commonly referred to as the Radio Shack parcel (Exhibit A � Opportunity Site Map).

In order to present this proposed project, it is important to examine the evolution of this development opportunity site. To provide a frame of reference, the Agency has been actively working toward the redevelopment of this site since May of 1997 when the initial request for development proposals ("RFP") was circulated. The ultimate result of the initial circulation was the July 1999 approval of a mixed-use development project proposed by Regent Properties. Nine months later, Regent submitted a letter terminating the Disposition and Development Agreement ("DDA") with the Redevelopment Agency. In May of 2000, the Agency Board directed staff to return to the original short list of developers to determine the feasibility of negotiating a new project without having to circulate a new RFP. In February 2001 the Agency Board determined that it was necessary to circulate a new RFP and in March 2001 the second RFP was circulated. The RFP called for a mixed-use project with the following parameters: office (75,000 � 150,000sf); retail/restaurant (24,000 to 45,000sf); residential (75 � 110 luxury rental units or an appropriate number of for-sale units); and adequate parking. This second circulation resulted in the August 2001 Agency Board selection of a joint venture development team of CIM and The Olson Company for a mixed-use project on the 3.5-acre development site.

From August to November of 2001, staff worked with the CIM/Olson team on a project that included the following components: restaurant/retail (45,000sf); office (85,000); 30 for-rent loft residential units; 110 for-sale residential units; on-site parking; and the use of 190 spaces at the Courthouse parking structure. In November 2001, staff received a letter from both CIM and Olson stating that, due to the declining outlook of the office market (coupled with the events of September 11, 2001), the "project financial feasibility would be turned upside down if the Agency were to require that CIM/Olson proceed with a single-phased project with the office component". The letter further indicated that, if the office component were to be developed sooner rather than at some unknown point in the future when the office market improved, the project would require an additional $2.0 million subsidy from the Agency. Keyser Marston and Associates ("KMA"), the Agency�s financial advisor, confirmed that the office component did have a negative impact on the overall project economics.

Ultimately CIM withdrew from the development team and the Agency Board directed staff to continue negotiations with the Olson Company ("Developer") on the for-sale residential and restaurant/retail components. However, staff was also directed to "carve out" a portion of the site large enough and suitable for future office development. Since that time, the Cusumano Real Estate Group ("Cusumano") has submitted the proposed project for the 120� x 310� office pad located at Olive Avenue and Third Street. The proposed Cusumano project includes 76,000 adjusted sf of office space, 12,000 adjusted sf of restaurant/retail space, and an 850sf outdoor caf� component.

Over the course of the past several years, the Redevelopment Agency has: 1) assembled the project site; 2) relocated the 22 remaining tenants (after Regent terminated its DDA) from the site; and 3) initiated abatement and demolition of site improvements. Also, on February 11, 2003, the City Council and Redevelopment Agency Board unanimously approved the Olson Company�s Burbank Village Walk project.

Since the project calls for off-site parking of up to 190 spaces in the parking structure located at the corner of Angeleno Avenue and Third Street, behind the County Courthouse, it may be helpful to recall the history of this particular parking structure. In 1987, the Redevelopment Agency offered to construct a surface parking lot for use by the Los Angeles County Superior Court � Division 2 ("County"). The County accepted the offer and the Agency assembled the site. In 1989 a 125-space surface parking lot was constructed. From 1989 to 1992 the Agency/City planned to build a three-level, 300-space parking structure to assist with the Courthouse expansion. During this same time, the Agency/City approved a concept of providing 200 additional spaces (on top of the original 300) for future development purposes. In July of 1992, DR 92-8 and CUP 92-9 (entitlements for a 500-space parking structure) was approved by the Planning Board.

In April of 1993, the City and County executed a lease and agreement for the use of 200 parking spaces in the parking structure. In early 1995 construction of the four-story, five-level parking structure was complete. Since the time of construction contemplation, the City Council and Redevelopment Agency Board intended to use 200 spaces (which the Redevelopment Agency funded) for future development. When the Agency released the second, 2001 RFP, specific mention was made that the same 190 parking spaces would be available to "the project".

PROPERTY LOCATION � The subject property is located at the southwest corner of Olive Avenue and Third Street. Under Tentative Tract Map 53905, a lot (lot 2) has been created for this development. However, as that map is not final, the description remains as follows: Portions of lots 2, 4, 6, 8, 10, 12 and 14, Block 53, Town of Burbank (M.R. 17-19-22) (Exhibit B).

ZONING - The subject property is zoned Burbank Center Commercial Limited Business zone (BCC-2, see Exhibit C). The request is to change this to a Planned Development zone (PD 2002-3).

GENERAL PLAN DESIGNATION - The property is designated as City Center Commercial and is within the Burbank Village, Civic Center and Olive Avenue Corridor areas of the City Center Sub-area of the Burbank Center Plan (BCP). The property is also located within the City Centre Redevelopment Project Area.

PROPERTY DIMENSIONS - The property is a rectangular shape approximately 310� by 120� or approximately 37,200 square feet or .85 acres. A tentative tract map is in process to remove lot lines and create a new lot for this proposed project as well as an adjoining proposed project to be considered by the City Council.

CURRENT DEVELOPMENT OF SITE - The existing site has been demolished. However, three buildings previously occupied the subject site and extended beyond the subject site area. The following table is a breakdown of the facilities that were only partially on the site:

 

OLD POLICE BLOCK � OFFICE DEVELEOPMENT SITE AREA
RECENTLY DEMOLISHED DEVELOPMENT
ADDRESS	BUILDING USE	SQUARE FEET
246-250 E. Olive Ave.	Office	13,300
Public parking lots		36 spaces (and a portion of another 14 spaces)
Police building	Office/Institutional/Storage	30,500
Police communications building	Institutional	4,346
TOTAL		Less than 48,146

SURROUNDING NEIGHBORHOOD - Abutting the subject site along Third and Olive is a proposed mixed-use residential development (Burbank Village Walk project recently approved for development). The development abuts the project at the rear where residential units are proposed. Along Olive, the adjacent project provides a private alley which will be used to access parking spaces in the alley and within a parking garage. Adjacent to the project, across the proposed alley, along Olive and San Fernando is a two and three story commercial building containing retail stores at ground level ("Radio Shack parcel") that fronts both San Fernando and Olive (with a 0� setback) (Exhibit D).

North of the subject site, across Olive are City Hall and a six story office building with a restaurant and nightclub at ground level (0� and 2� setback). Across Third Street is the County Courthouse and parking structure (includes public parking as well). Diagonally across from the subject site is a three story commercial building used as City offices. However, this corner area is proposed to provide a public plaza space to complement future development of the block according to the approved master plan.

PRIOR PLANNED DEVELOPMENT APPROVAL - As mentioned previously, the site (plus the proposed mixed use residential site area) received approval for a planned development in 2000. The total site consisted of approximately 137,000 square feet (sf) or 3.15 acres. The project approval was for a mixed-use development including 209,000sf office, a 300 room hotel, 68,000sf of retail space, a 1,200 seat (6-screen) theater and a 13,000sf Masonic Lodge. The proposal also contained over 1,100 parking spaces. Under the requirements of that PD ordinance, the PD zoning never became effective as the developer never took possession of the property by 2001.

PROJECT DESCRIPTION - The applicant is requesting approval to construct a commercial development (Exhibit E). The project consists of a 96,000 gross sf building with 76,000 adjusted gross sf of office space and 12,000 adjusted gross sf of retail/restaurant/commercial service space on the ground floor. The building is proposed to be placed at the corner of the lot along Olive Avenue and Third Street with an average height of 65 feet (five stories above grade). The ground level of the building is setback to allow pedestrian movement under the upper floors of the building. At the corner of Olive and Third, the ground level is setback 29 feet from Olive and 52� from Third Street. This allows a covered setback area that can be used as an outdoor caf� (approximately 850 sf). The building has vertical columns that are setback two feet from the property line creating an open colonnade for pedestrians. An open, landscaped plaza is adjacent to the building and a surface parking lot. The entrance to this lot is off of Olive and the lot provides access to the parking garage located beneath the building. A 600 square foot loading area is proposed with an entrance off of Third Street, separate from the tenant parking entrance off of Olive Avenue.

The 80 on-site parking spaces consist of mostly 9� x 18� stalls with 13 compact stalls. The 190 off-site parking spaces provided in the "courthouse parking structure" are primarily 8�6" x 18�, consistent with office parking requirements. Of the on-site parking, 25 spaces are located in a surface lot. At the request of the Agency, these spaces will be available for public parking during evening, weekend and holiday hours.

PUBLIC CORRESPONDENCE - The Planning Division received one letter regarding the proposed project. John Pfaffl of Jonan Property Services has an office at 348 East Olive Avenue on the courthouse block. His concern is that the office development would not provide on-site subterranean parking and would only use the courthouse parking structure. He feels this garage could be built at the same time the mixed-use residential parking is built to save money. Unfortunately, these are different projects and it is necessary that they remain separate. However, the office development will provide 80 parking spaces on-site including 55 in one level under the office building. In addition, Mr. Pfaffl also noted that having people cross Third Street to get to their cars is a detriment since Third Street is being used more and more for people moving through Burbank. By having Third Street reduced between Olive and Orange Grove for the Civic Center project, this is expected to deter people from using it as a thoroughfare and they will instead use Glenoaks or First Street. However, even without the street width reduction, people are able to cross Third at the signalized corner without concern as many downtowns have high pedestrian and vehicular traffic. Redevelopment Agency staff, in a response to Mr. Pfaffl noted that the Agency paid for 200 of the parking spaces specifically so they could be used by development on either the "Courthouse block" or Opportunity Site No. 2 as is being proposed (Exhibit F).

The following section analyzes the standards proposed for the project that vary from what would be permitted without creating a new PD zone. In addition, this section provides an analysis of the proposed report against the design review standards required before approval of any PD.

SETBACKS - The building setback required in the BCC-2 zone is to be 20% of the building height up to 20 feet high (the portion above 20� may extend to the property line). This would require a 13� setback along Olive and Third at a height of 20�. The applicant is proposing a 2� setback to the columns on Olive, but the building is setback 15� along most of Olive with a height of approximately 15�. In addition a setback of 29� for 52 linear feet at the corner of Olive and Third exists at the ground level. The levels above the ground generally follow the columns but are setback an additional 6 to 12 inches. The applicant is proposing a 0� setback along Third Street, but again, at ground floor there is an area at the corner of Third and San Fernando which is setback and provides a covered caf� area. The "Radio Shack" building has a 0� setback as do many offices along Olive and in the downtown area.

This project is located in the Olive Avenue Corridor of the Burbank Center Plan. This corridor calls for Olive to be the main gateway entrance into the city center. Architectural design that enhances the image of this gateway corridor at the intersection of Third and Olive is encouraged. And this gateway is proposed to be created through the use of public open space and special design considerations as well as a street tree program along Olive. The massing of the building in relation to the existing buildings along Olive offer a gateway image and identify the area as the city center. The retail and restaurant uses at the ground floor and the ability to provide the outdoor covered caf� create the desired pedestrian environment while retaining the character of the major thoroughfare and urban environment. The project will retain the trees along Olive and will add the majority of the required trees within the public right-of-way rather than on the project site. This will assist in meeting the goals of the Burbank Center Plan which call for Olive to exhibit the characteristics of a grand avenue lined with mature street trees.

PARKING - The project is located within the downtown parking district as identified in BMC. This area is described as an eight block area from Angeleno to Magnolia, from First to Third. The requirements for this area state that new development can occur, but must provide a parking ratio of 3.5 spaces per every 1,000 square feet of adjusted gross floor area, no matter what the use. In addition, the code states that a credit may be applied to all floor area that is demolished, as long as any parking demolished is also considered.

This universal parking ratio is provided to accommodate the many different uses in the downtown and the concept that all uses could "share" parking during the different peak hours for each use. However, when building an office project, an argument can be made that it is more important for the parking to be protected and reserved, rather than included in a "pool" of parking.

Calculating parking can be complex when a project is in the downtown parking area. The calculation has to consider loss of public parking spaces and demolition of buildings in addition to construction of new buildings when the project is located in the downtown parking area. The following is a description of this code required calculation process for the entire block:

CODE-REQUIRED PARKING CALCULATION

• Demolish Police structures and parking and do not give demo credits � 34,846sf & 17,000 sf of parking area
• Demolish all retail, restaurant and office structures � 45,810 sf
• Demolish all public parking spaces outside Police parking � 120 spaces
• Construct retail, restaurant and office space up to that demolished � 45,810 sf (14,000 sf on mixed-use residential project and remainder for office project)
• Construct all public parking spaces demolished � 120 spaces
• Construct remainder of office with downtown required parking � 197 spaces
• Construct residential with residential required parking � 298 spaces (includes allowance for guest shared parking)

PARKING PROVIDED WITH NEW PROJECTS

• Total provided with mixed use residential project - 418 spaces
• Total provided on-site with this office project - 80 spaces
• Total provided off-site for this office project � 190 spaces

The BMC allows office parking to have 8�6" x 18� stalls and also allows 45% of the spaces to be compact spaces which are 7�5" x 15� (this would be 103 compact spaces). The BMC requires retail spaces to provide a dimension of 9� x 18�. The parking located across Third Street is predominantly 8�6" x 18� stalls. The concept of a universal parking width is not uncommon. Specifically, 8�6" stalls are very common in retail shopping centers and many cities have adopted this stall width for all parking spaces. Recently, the City Council did not adopt such a universal parking dimension. One reason was in order to maintain the allowance for compact parking spaces under certain circumstances (such as office spaces). The Traffic Engineer has determined that the public parking structure could maintain efficiency and safe circulation given the 8�6" wide stalls. However, in an effort to provide some full size retail spaces, the project includes 67, 9� x 18� spaces and 13 compact spaces.

For a full discussion of parking, an analysis of the off-site parking is also necessary. In 1992, the Redevelopment Agency funded the construction of 200 parking spaces above the approximate 300 spaces that was being constructed. The Agency made this investment specifically to accommodate future redevelopment projects either on the "Courthouse block" or the "old police block." Similar to the previous PD approved for this site, this office development is proposing to use 190 of the parking spaces to accommodate the uses on site. The Agency is currently considering leasing (a long-term lease) the top 190 spaces of the five level structure (4 � stories above grade, � below grade and secured for the courthouse) which will allow the applicant to install a security gate for those spaces. Only the employees of the office building will have access to this space during business hours (approximately 6am to 6pm, Monday through Friday). However, the gate will be open after 6pm on weekdays and all day on weekends and holidays and will be signed to permit public parking during those hours (subject to normal restrictions regarding overnight public parking). This will allow the spaces to be utilized for their intended use during peak office hours and will also accommodate more public parking during peak restaurant and entertainment hours for downtown Burbank (Exhibit H).

The site plan identifies a 600sf area off of Third Street that is dedicated for loading spaces. The project is required to provide four loading spaces given the square footage and proposed uses. While additional loading areas could be identified throughout the parking areas of the project, having a dedicated space is necessary. Staff believes the two dedicated loading areas will accommodate the necessary loading traffic for this development. By requiring a condition that allows the Police Chief and Public Works Director to identify loading times, it will reduce any impacts to the surrounding traffic circulation.

LANDSCAPING - The BMC requires that 50% of the front and street side yards of a lot be landscaped. As the project is proposing reduced setbacks, they are therefore unable to provide this amount of landscaping. However, they are proposing that the remaining exposed yards provide landscape planters consisting of over 50% of the remaining exposed yard. Code also requires that one tree for every 40 linear feet be planted. As it is not possible to place all 11 trees within the setback, some of these required trees will be planted in the public right-of-way adjacent to the existing street trees. The remaining portion of the setbacks will be treated with decorative hardscape and a large portion of the setback at the corner of Third and Olive will be available for an outdoor caf� with seating and tables. Where possible, this outdoor dining area will contain potted plants and trees. In addition, at mid-block, the applicant has provided a large (over 3000 sf) open plaza. This plaza will contain trees, turf and other landscaping, decorative hardscape, a water feature and will likely include the public art component for the project. The plaza helps to break up the visual mass of the buildings along Olive and also screens the open parking lot.

The parking lot is required to have landscaping for lots of more than 21 spaces. This requires that 40% of the parking spaces be shaded. While the applicant is providing trees within the landscaped areas adjacent to the parking spaces, they, along with shade from the adjacent building, will not shade 40% of the parking spaces.

The BMC requires that 10% of the open parking and driveway areas must be landscaped. The applicant is providing just over 10% landscaping of the areas. Code also requires that landscaping islands must be placed at the ends of each parking aisle and must be a minimum width of five feet. While islands are provided, there are two that have a width of less than five feet. This narrower planting island is necessary to provide full retail width parking spaces which is preferred as this parking will be used by the public during evenings and weekends.

ENVIRONMENTAL REVIEW - A Mitigated Negative Declaration (MND) was prepared for this project (Exhibit I). This MND was tiered off the Burbank Center Plan (BCP) Environmental Impact Report (EIR). This EIR looked at the development permitted in the BCP including all opportunity sites such as where this project is located (Opportunity Site #2). The California Environmental Quality Act (CEQA) allows agencies to "tier" an MND off a broader specific plan EIR where the EIR considered development allowed but did not focus on details of a specific project. Therefore, the MND prepared considers specific details of this project that the BCP EIR considered only generally.

When a project is tiered off a broader program EIR, the mitigation measures appropriate to each specific project must also be implemented. For example, the BCP EIR has mitigation measures to control dust during construction (to maintain air quality), this project is required to follow such dust control measures. These measures are included in the MND for the project as well as the conditions of approval.

In addition, mitigation measures specific to this project are required in areas where there could be potentially significant impacts if not mitigated. For example, the applicant will be required to provide warning signs and flagmen during the construction phase to allow for the safe ingress and egress of trucks and equipment.

The MND prepared discussed a larger project site area and a broader project than that being proposed under this PD. The reason for this is that CEQA requires that lead agencies analyze the whole of a project, as long as separate components are reasonably foreseeable. This is to avoid an incomplete analysis and implementing mitigation measures which do not recognize all cumulative impacts. In this case, the area currently proposed as a mixed-use development abutting this project was included in the environmental analysis of this project. Staff, in the MND, identified all impacts, especially trip generation, associated with the residential mixed-use development in addition to this proposed PD project. Staff then compared these impacts to those anticipated in the BCP EIR. It was determined that impacts would be less with the proposed project and residential development than that anticipated in the EIR including less trip generation than that anticipated. Again, mitigation measures are proposed to reduce the impacts to a less than significant level. This project generates fewer trips than the previously approved Planned Development project for this larger site area.

The MND was adopted by City Council for the mixed-use residential project on February 11, 2003 (Exhibit J). An addendum to this MND was prepared to adjust the title of this project and for minor technical changes only (Exhibit K).

DEPARTMENTAL COMMENTS - The PD and DR applications and plans were routed to different departments and divisions in the City. The following summarizes comments that are relevant: (full comments are attached as Exhibit L).

• Redevelopment Agency staff request final approval of all exterior design elements and colors. They note that the Community Development and Parks, Recreation and Community Services departments will be working together closely to ensure a quality landscape design that provides as much landscaping on the site as possible without compromising the urban design of the project.

• The Public Works Department requires a 15� corner radius to be provided at the corner of Third and Olive which will require dedication of some property. The Traffic Engineering Division is concerned about loading times for the commercial portions of the project. There are no established loading hours that have been determined to be appropriate for the downtown area. So, rather than arbitrarily determine appropriate hours for loading and unloading, a condition is proposed that allows the Public Works Director and Police Chief to determine the loading hours for the businesses in the project. This allows flexibility to address any adjacent resident concerns as well as any traffic and circulation concerns.

• Community Development and Parks, Recreation and Community Services department staffs have been working with the landscape architect for the project. The proposed plan incorporates staff�s input. Staff proposes a condition that requires that the landscape plan be reviewed by the Planning Board and receive final approval from the Directors of the Community Development and Parks, Recreation and Community Services departments before issuance of a building permit for the building.

DESIGN REVIEW CRITERIA - When analyzing a PD, the City must verify that the project meets the design review criteria as established in �31-19124 in the BMC. The following lists the criteria and states how the project is consistent with the criteria.

Planned Developments shall observe the following design review criteria:

1. 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 is consistent with the General Plan and is specifically identified as an Opportunity Site that is ripe for development of a mixed-use project. The development is comprehensive and provides a mix of uses that will be compatible with one another and compatible with other uses in the immediate vicinity. The area is identified as the Olive Avenue Corridor and the Burbank Center Plan specifically calls for creating a gateway into the City Center through the use of public open space and special design considerations for the corner of Olive and Third. In addition, there is a policy to encourage architectural design that enhances the image of this gateway corridor especially at this intersection.

2. 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 building provides functional open spaces and sufficient off-street parking including that available to the public visiting any businesses within the downtown during peak entertainment and dining hours (evenings and weekends). The building provides interest at a pedestrian scale and allows for appropriate circulation around the site. The structure and its open space attempts to complement the open plaza being planned diagonally across from the site.

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

The remaining properties on the block are existing or planned for development. The construction of an office building with ground floor restaurant and retail is compatible with the existing retail, restaurant and offices on the site and will be compatible with the retail, restaurant and residential units that are proposed for the remainder of the site. By having this mix of uses, it ensures that there is activity on the site at all hours of the day and evening which is appropriate in a downtown setting.

4. Any private street system or circulation system shall be designed for the 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.

There is no private street system provided for the project. The access point into the parking garage will be designed to allow simultaneous ingress and egress. In addition, the loading activities on-site may be limited to certain times of the day so as not to interfere with peak public parking hours.

5. 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 with this PD. The flow on the existing streets will not be changed. Currently, Olive Avenue is a major arterial that carries several transit lines; this project will not effect the existing bus stop located near the intersection at San Fernando. A portion of the project is located within � mile of the Regional Intermodal Transportation Center (RITC) and will not hinder the operations of that center. The project will maintain the existing sidewalk along all streets and improve them where necessary. The driveway is near to the driveway entrance for the adjacent project and therefore will be designed so as not to interrupt the pedestrian flow along Olive.

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

The project does not contain any residential uses.

7. 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.

The design of the project offers classic lines with unique elements in the building facade to add interest. The architecture is mostly traditional and seeks to complement the historic City Hall across Olive while not mimicking the Art Deco design. The building creates the gateway image that is called for in the Burbank Center Plan. The Redevelopment Agency has hired an architect to review and critique the design elements proposed in context of the area. Suggestions were offered and were incorporated in the design proposed. Signage will be consistent with BCC-2 codes and a condition will require that the Assistant Executive Director to the Redevelopment Agency have final approval of all signage. Although the architecture is different from that of the adjacent property along Olive, it is compatible and harmonious. Again, Burbank�s downtown offers a variety of architectural styles and the colors and materials selected for this project will be quite harmonious with that character.

8. 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.

This project provides an adequate variety of uses such as restaurant and retail space to meet the needs of the on-site office employees as well as others working and residing in the downtown area. The on-site parking available may offer another source of parking for visitors to the downtown area during the evening and weekend hours.

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

The applicant is required to comply with energy conservation methods.

LAND USE CONCLUSION - 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. This commercial project certainly fits within this category especially given its location in downtown Burbank. The project provides appropriate amenities given the location in the downtown and provides adequate public parking space for commercial uses on and near the subject site.

PLANNING BOARD RECOMMENDATION - Planning Board voted unanimously to recommend approval of the Planned Development (Exhibit M). In addition, the Planning Board voted to recommend that staff further seek Police Department input regarding the possible alcohol sales at a restaurant in the subject project (Exhibit N). The Police Department was informed of this issue and expressed no concerns as the restaurant would be required to limit alcohol sales to 35% of gross sales receipts.

A motion by the one member of the Board failed by a vote of 2 to 3 requesting Council consideration of the signage on the Olive Avenue frontage. This concern was made given the historic status of City Hall directly across the street and the concern that prominent signage may not be appropriate on the Olive frontage.

A motion was passed by a vote of 4 to 1 requesting that the Planning Board review and approve architecture, building materials, color, decorative elements, exterior and interior window treatments at grade, art work for public spaces and other design components in addition to the final landscape plan. The Board noted that these elements need to be of high quality in order for the reduced setbacks to be appropriate. Staff believes that it is appropriate for the Board to review the design elements and landscape plan as an information item only, but that final approval should rest with the Community Development Director/Assistant Executive Director for design elements and with the Parks, Recreation and Community Services Director for the landscape plan. This is consistent with the approach taken on other projects (St. Joseph�s Hospital and the Cusumano Senior Building on East Olive). This condition allows for the proper review but does not call into question the entitlement given for the property.

Inasmuch as the proposed project requires the Agency to sell property to the Developer, a Disposition and Development Agreement has been negotiated. The purpose of the DDA is to document the real estate transaction and to outline the roles and responsibilities of both the Agency and the Developer. Highlights of the proposed DDA include the following:

DEVELOPER RESPONSIBILITIES

• The Developer will acquire the site for $100.00;
• The Developer must develop the site in accordance with the City�s Planned Development No. 2002-3;
• The Developer will build a Class A, signature office building in accordance with the project entitlements;
• The Developer must complete the Project in a timely manner as described in the Schedule of Performance;
• The Developer must submit evidence that sufficient equity capital and /or construction financing has been committed to fund 100% of the project cost;
• The Developer must pay prevailing wages to all contractors and subcontractors engaged to construct the project, in accordance to the Agency�s prevailing wage policy and other applicable laws; and
• The Developer must pay all ad valorem real estate taxes and assessments on the Site accruing after the close of escrow.

AGENCY RESPONSIBILITIES

• The Agency must deliver a clean site, free of any known environmental contamination. However the Developer has the right to independently test the soils and environmental conditions prior to accepting conveyance of the Site. If hazardous conditions are discovered, either party may terminate the agreement unless the other party agrees to pay the remediation costs. Once escrow has closed on the Site, the Developer must indemnify the Agency and City from any hazardous materials claims related to the Site.
• The Agency must convey the Site to the Developer cleared of any buildings, structures and active utilities;
• The Agency will fund the construction of required off-site improvements as defined in the DDA; and
• All persons shall have been relocated from the Site, and the Site must be conveyed free and clear of tenancies, occupancies and possessory right of any third parties.

Also included as a part of the DDA (and to be executed as a separate legal contract) is a parking lease for up to 190 parking spaces at the parking structure located at the corner of Angeleno Avenue and Third Street, behind the County Courthouse. To implement said parking lease, the Agency and City must execute the proposed Cooperation Agreement. This agreement allows the Agency to execute the proposed parking lease with the Developer and calls for the lease revenues to flow to the City (then ultimately to the Parking Authority) to fund the operations and maintenance of the subject leased parking spaces (first) and other Downtown facilities (second) as parking lease revenues are available. Highlights of the proposed parking lease follows.

PARKING LEASE

• The Agency through a Cooperation Agreement with the City and Parking Authority will lease 190 spaces for the express purposes of providing off-site parking for the Civic Plaza project;
• The proposed lease with the Developer is subordinate to the existing lease with the County of Los Angeles;
• The term shall commence on the date that the first space is allocated to the Developer, and will continue for up to 99 years;
• Rent will be credited for the first 19 months of the term. Then payments equal to 80% of the fair market rental value (for Downtown parking facilities) will be made beginning with the 20^th month of the term and continuing for five years thereafter; and
• After the initial five-year period, the Developer shall pay 90% of the Downtown fair market rental value.

In accordance with Section 33433 of the California Health and Safety Code (California Community Redevelopment Las) a summary report has been prepared by the Agency�s financial consultant, Keyser Marston Associates ("KMA") and is included as Exhibit O of the report. The Summary Report (also know as a 33433 Report) sets forth certain details of the proposed DDA between the Agency and the Developer.

Also, pursuant to the California Community Redevelopment Law, both the DDA and 33433 Report have been available for public review immediately following the initial publication (February 22, 2003) of the public hearing notice (Exhibit P).

This section of the report is organized into three primary components: 1) the overall Agency costs to assemble and prepare the development opportunity site; 2) the cost of the propose Burbank Civic Plaza project to the Agency; and 3) the anticipated Agency revenue to be generated by the proposed project. In addition to preparing the 33433 Report, KMA also prepared a project reuse valuation analysis (Exhibit Q) and the following summarizes these documents and the overall project economics.

TOTAL AGENCY COSTS

By the time Opportunity Site No. 2 is ready to be conveyed to the Developer(s) the Agency will have spent roughly $10.4 million. The overall project budget is broken down as follows:

 *NOTE: This total includes approximately $150,000 of known, future environmental work, and $18,000 of past environmental expenses.

As reported last month when the Olson Company�s Village Walk was presented to the City Council and Redevelopment Agency Board, the total cost to the Redevelopment Agency associated with the Village Walk project is approximately $6.6 million (excluding contingency). After deducting this amount from the total Agency project budget, the costs associated with the proposed Burbank Civic Plaza project are estimated as follows:

 The total cost to the Redevelopment Agency associated with the proposed Civic Plaza project is $4,098,000.

ANTICIPATED AGENCY REVENUE

In addition to the land sales revenue of $100, the City Centre Redevelopment Project Fund will realize property tax increment revenue. Based on the overall project value, the Project Area will collect tax increment revenue through 2021 (the last year the Agency can collect tax increment revenue) totaling roughly $2.6 million in nominal terms of $1.6 million in present value terms (using a 6% discount rate). Also the Agency will generate income from the proposed parking lease. That amount is estimated at just over $4.9 million (nominal terms) and $860,000 (present value terms). The following is a summary.

In nominal terms, the Agency revenues exceed the Agency costs by $3.4 million. However, when the costs and revenues are considered in present value terms the net Agency costs exceed the revenues by roughly $1.7 million. When combining the previously reported, anticipated net present value, Agency revenues from the Village Walk (Olson) project the Agency reaches a "near-break-even" point.

PROJECT SCHEDULE

If the proposed Burbank Civic Plaza project is approved on March 11, 2003, the Developer will proceed with design development drawings and construction plans. Groundbreaking is anticipated for late fall of 2003. Project construction is expected to take 16 to 18 months with a projected completion of mid-winter 2005.

The fiscal impacts of moving forward with the entire site right now are clearly balanced with the benefits of completing one of the key Downtown development opportunity sites. The approval of the Burbank Civic Plaza project, coupled with the approved Burbank Village Walk project will implement the Agency�s vision for Opportunity Site No. 2. The complimentary components of the two projects will provide a seamless transition from the Downtown village ambiance of San Fernando Boulevard to the Civic District beginning at Olive Avenue and Third Street. Plus, the proposed office development will provide additional daytime population, which will help support our Downtown restaurants, shops and services.

The proposed project supports the goals of the City Centre Redevelopment Plan and will complete the Redevelopment Agency�s master-plan efforts in revitalizing the block.

Staff recommends that the Redevelopment Agency Board and the City Council adopt the proposed Ordinance and Resolution(s) approving the land use entitlements and sale of Agency property for the proposed Burbank Civic Plaza project as described within this report.

Exhibit A � Opportunity Site No. 2 Map

Exhibit B � County Assessor Parcel Map

Exhibit C � Zoning & Fair Political Practices Act Compliance Map

Exhibit D � Aerial Photograph of Adjacent Area

Exhibit E � Land Use Applications & Plans

Exhibit F � Public Communication & Staff Response

Exhibit G � Aerial Photograph of Parking

Exhibit H � Off-Site Parking Structure Plans

Exhibit I � Mitigated Negative Declaration

Exhibit J � City Council Resolution No. 26,424

Exhibit K � Addendum to Mitigated Negative Declaration

Exhibit L � Staff Comments on Entitlements

Exhibit M � Planning Board Resolution No. 2893

Exhibit N � Planning Board Minutes (February 10, 2003)

Exhibit O � 33433 Report

Exhibit P � Published Public Notices

Exhibit Q � Reuse Analysis

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