RECOMMENDATION REPORT

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1 DEPARTMENT OF CITY PLANNING RECOMMENDATION REPORT Los Angeles City Planning Commission Case No.: CPC DB Date: March 10, 2011 Time: After 8:30 a.m. Place: City Hall, 10 th Floor, Room N Spring Street Los Angeles, CA Public Hearing: November 22, 2010 Limited Public Hearing on March 10, 2011 Appeal Status: Appealable Expiration Date: March 31, 2011 CEQA No.: ENV MND Related Cases: DIR SPR Council No.: 13- Eric Garcetti Plan Area: Silver Lake Echo Park Elysian Valley Specific Plan: None Certified NC: Greater Echo Park Elysian Neighborhood Council (GEPENC) GPLU: Community Commercial and Medium Residential Zone: [Q]C2-1VL and R3-1VL Applicant: Representative: 2225 Sunset, LLC & E.D. Flores Corp, Attn: Isaac Mizrahi Robert B. Lamishaw c/o JPL Zoning Services, Inc. PROJECT LOCATION: PROPOSED PROJECT: A request for the construction of an approximately 142,126 square-foot mixed use project consisting of 62 residential dwelling units in two buildings and about 9,997 square feet of commercial area and providing 113 parking spaces. The project is located on multiple lots classified in the [Q]C2-1VL (commercial) and R3-1VL (multiple dwelling) zones with frontages on Sunset Blvd. and Elsinore Street. A public hearing was previously held on November 22, 2010 on this case. Subsequently, it was discovered that the project is located in a Very High Fire Hazard Severity Zone, which, pursuant to Section A 25 (e) (2) of the Municipal Code, would affect the review process. Therefore changes to the previously noticed project on which the City Planning Commission will conduct a hearing are shown underlined below. REQUESTED ACTIONS: 1. Pursuant to Section (c)(3) of the California Public resources Code, adopt the Mitigated Negative Declaration (MND), ENV MND, for the above-referenced project. 2. Pursuant to Section A 25 of the Municipal Code, in consideration of restricting 15% of the dwelling units as restricted affordable units (10 units), the applicant would utilize Parking Option Number 1 which permits a reduction in the residential parking requirements. Additionally, the applicant requests three Affordable Housing Incentives as follows:

2 CPC DB Page 2 a. Per A.25 (f) (4) an on menu A 25 (g) (3) of the Municipal Code, an off-menu incentive to grant a 35% Floor Area Ratio (FAR) increase. [Note: the FAR is a multiplier applied to the total buildable area of a lot to determine the total permitted floor area of all buildings on a lot.] b. Per A.25 (f) (8) an on menu A 25 (g) (3) of the Municipal Code, an off-menu incentive to permit the averaging of FAR, density, parking or open space over the project site and to permit vehicular access from a less restrictive zone to a more restrictive zone. c. Per A 25 (g) (3) of the Municipal Code, an off-menu modification of development standards contained in to permit a 5-story (about 68 feet high) building located on a site which slopes from Elsinore Street to Sunset Boulevard. 3. Pursuant to Section of the Municipal Code Site Plan Review approval for a development project which creates or results in an increase of 50 or more dwelling units. [Note: The Site Plan Review portion of the proposed project, which is an other discretionary application for the above referenced proposed project has been filed pursuant to Section A 25(g)(3)(ii) and 12.36A of the Municipal Code, and is being processed under Case No. DIR SPR.] RECOMMENDED ACTIONS: 1. Adopt the Mitigated Negative Declaration (MND), ENV MND for the abovereferenced project 2. Approve the off-menu Density Bonus incentive to grant a 6% Floor Area Ratio (FAR) increase in lieu of the 35% increase requested (a 6% FAR increase provides the adequate FAR to construct the project as proposed). 3. Approve the off-menu Density Bonus incentive to permit averaging of FAR, density, parking or open space over the project site and to permit vehicular access from a less restrictive zone to a more restrictive zone. 4. Approve the off-menu Density Bonus modification of development standards contained in to permit a 5-story (about 68 feet high) building located on a site which slopes from Elsinore Street to Sunset Boulevard. 5. Adopt the attached Findings, including the Environmental Findings. 6. Advise the applicant that, pursuant to California State Public resources Code Section the City shall monitor or require evidence that mitigation conditions, identified in Environmental Conditions, Section B, Conditions of Approval in this report, are implemented and maintained throughout the life of the project and the City may require any necessary fees to cover the cost of such monitoring. 7. Advise the applicant that pursuant to the State Fish and Game Code Section 711.4, a Fish and Game Fee and/or Certificate of Fee Exemption is now required to be submitted to the County Clerk prior to or concurrent with the Environmental Notices of Determination (NOD) filing.

3 CPC DB Page 3 MICHAEL J. LOGRANDE Director of Planning [signature on file] [signature on file] Faisal Roble, Senior City Planner Rogelio Flores, Hearing Officer (213) (213)

4 TABLE OF CONTENTS Project Analysis... A-1 Project Summary Project Setting Issues and Discussion Conclusion Conditions of Approval... C-1 Findings...F-1 Density Bonus Compliance...F-1 Environmental (California Environmental Quality Act)...F-3 Public Hearing and Communications... P-1 Exhibits: A Development Plans B Maps Vicinity Map Radius Map C Mitigated Negative Declaration (MND)

5 CPC DB A-1 PROJECT SUMMARY PROJECT ANALYSIS The proposed project is located at Sunset Boulevard and Elsinore Street and encompasses a total of five contiguous lots in the Silver Lake Echo Park Elysian Valley Community Plan area. The project occupies four lots on Sunset Boulevard that are zoned [Q]C2-1VL and one lot on Elsinore Street that is zoned R3-1VL. The irregularly-shaped project site measures a total of approximately 42,496 square feet (0.98 acres). The site is located in a designated Hillside Area. The Sunset Boulevard parcels slope downward from north to south (toward Sunset Boulevard) with an elevation change of approximately 32 feet from rear to front. The Elsinore Street lot is relatively level. The grade at Sunset Boulevard is approximately 36 feet below the grade of Elsinore Street. The proposed project is a mixed-use development consisting of 62 dwelling units, approximately 9,997 square feet of commercial space and 113 parking spaces. The project is configured as two separate, stand-alone buildings. One building contains residential uses only and is situated entirely within the Elsinore Street parcel (for ease of reference, this building will be referred to as the Elsinore Building throughout this report). The second building contains mixed (commercial and residential) uses and lies entirely within the four parcels fronting on Sunset Boulevard (for ease of reference, this building will be referred to as the Sunset Building throughout this report). The Elsinore Building contains 14 dwelling units, nine (9) parking spaces, and is four stories tall (approximately 45 feet at its highest point). The first story contains a lobby and nine (9) parking spaces; the second story contains six (6) dwelling units; the third and fourth stories are stepped back, away from Elsinore Street and each contains four (4) dwelling units. The Elsinore Building measures a total of approximately 12,769 square feet and contains approximately 1,041 square feet of common open space including a landscaped terrace on the rooftop of the 2 nd story within the 3 rd story stepback. The Sunset Building contains 48 dwelling units, approximately 9,997 square feet of commercial space configured in eight (8) commercial stalls, and 104 parking spaces. The building has a height of five (5) stories (approximately 66-1/2 feet at its highest point). The first story consists of double-height commercial stalls whose pedestrian entrances are at grade along Sunset; the first story also contains a 45-space parking structure that is situated behind the commercial stalls and tucked into the hillside so it is concealed from street view. The second story of the Sunset Building is a podium garage structure with 59 spaces; the third story contains 16 residential units, the fourth story 17 units, and the fifth story 15 units. The Sunset Building measures approximately 61,332 square feet and includes approximately 5,618 square feet of common open space including a second-story landscaped terrace facing Sunset Boulevard. There are two proposed vehicle access points for the project. A driveway on Elsinore Street provides access to nine (9) parking spaces within the Elsinore Building and also to 59 spaces in the second-story parking structure of the Sunset Building which is accessed via an open-air driveway that connects the two buildings. A second driveway is provided from Sunset Boulevard that uses the existing traffic signal at the Rosemont Avenue / Sunset Boulevard intersection and the only access to the 45 parking spaces in the first-story basement parking structure of the Sunset Building. Of these 45 parking spaces, 20 spaces are designated for commercial use, 10 for guests, and 15 for residents only.

6 CPC DB A-2 PROJECT SETTING The subject site is a midblock, irregular flag-shaped lot and is a through-site with front yards on two streets: Sunset Boulevard (to the south) and Elsinore Street (to the north). The site measures approximately 42,496 square feet (0.98 acres). The site is located midblock along the northern side of Sunset Boulevard between Waterloo Street (to the west of the site), and Mohawk Street (to the east of the site). Sunset Boulevard and Elsinore Street are east-west streets, while Waterloo Street and Mohawk Street are north-south streets. In addition, the southern portion of the site fronts on the T-shaped intersection of Rosemont Avenue and Sunset Boulevard (Rosemont Avenue is a north-south local street that approaches Sunset Boulevard from the south and terminates in a T-shaped intersection with Sunset Boulevard). The site is located within the Silver Lake Echo Park Elysian Valley Community Plan, which was adopted August 11, 2004 and which is a portion of the Land Use Elment. A portion of the site is comprised of four parcels that front on Sunset Boulevard and measure a approximately 32,189 square feet. The rest of the site is comprised of one parcel that fronts on Elsinore Street and measures approximately 10,307 square feet. The parcel shares a rear lot line with the westernmost Sunset Boulevard parcel. The Sunset Boulevard parcels are zoned [Q]C2-1VL and have a General Plan Land Use Designation of Community Commercial with corresponding zones CR, C2, C4 and RAS3. The Elsinore Street parcel is zoned R3-1VL and has a General Plan Land Use Designation of Medium Residential with a corresponding zone of R3. The portion of the site for which mixed uses are proposed and which is zoned [Q]C2-1VL is permitted to be developed with Commercial and Residential uses and it is in Height District 1VL. The 1VL designation for this parcel denotes a development limitation, which, subject to certain provisions, limits the developable floor area to 1.5 times the buildable area of the site (1.5:1 FAR) and the maximum height to 45 feet. The C2 zone permits a maximum residential density of 1 dwelling unit per 400 square feet of lot area. The [Q] Qualified Condition for this zone prohibits certain auto-related, recycling and drive-through uses and provides development standards that address building setbacks, driveway access and parking location. The development standards are intended to enhance walkability and reinforce the mixed use character of the area. The project as proposed conforms to the standards (the project design is discussed throughout the Analysis section of this report, below). The portion of the site zoned R3-1VL is permitted to be developed with Residential uses and is in Height District 1VL. The 1VL designation for this parcel denotes a development limitation, which, subject to certain provisions, limits the developable floor area to 3.0 times the buildable area of the site (3:1 FAR) and the maximum height allowed to 45 feet. The R3 zoning designation allows for a maximum density of 1 dwelling unit per 800 square feet of lot area. The project site is classified as a Hillside Area and contains significant topography characterized by a significant decrease in grade elevation from north to south, such that the Elsinore Street grade is approximately 36 feet above that of Sunset Boulevard (a vertical difference roughly equivalent to 3 stories). The steepness of the slope is particularly pronounced within the Sunset Boulevard parcels, where the vertical drop from the rear lot line to the front lot line is on the order of 32 feet. Current mixed-use development on the Sunset Boulevard parcels utilizes the topography to provide street-level retail uses and residential uses that are stepped back above and behind these retail frontages. The project site as a whole currently contains twelve (12) structures. These would be removed in conjunction with the proposed development. The structures are situated on three of the five parcels that comprise the site (the two easternmost parcels fronting on Sunset Boulevard are currently vacant/undeveloped). The structures consist of five single-family homes, two

7 CPC DB A-3 apartment buildings, two commercial buildings, and three accessory structures (two sheds and one garage). The single-family homes and two apartment buildings contain a total of 11 dwelling units: one dwelling unit for each house, four dwelling units in one apartment building and two dwelling units in the other apartment building. The two commercial buildings are divided into five retail stalls that provide approximately 2,766 square feet of street-level commercial space on Sunset Boulevard. The Elsinore Street parcel currently contains two of the single-family structures, a garage and a shed. The westernmost Sunset Boulevard parcel currently contains a commercial building that is divided into two street-level retail stalls. The parcel also contains two of the single-family structures, one of which abuts the rear property line, and the other which is situated behind and above the commercial building that directly fronts Sunset Boulevard. The rest of the existing structures are contained on the other Sunset Boulevard parcel (2 nd from the westernmost Sunset Boulevard parcel), consisting of three street-level retail frontages in one commercial building; a multi-family structure that is situated above and behind the retail frontages facing Sunset Boulevard; a multi-family structure situated mid-lot; and a single-family home at the rear of the lot. In addition, 13 trees currently exist on the project site that would be removed in conjunction with the development. Surrounding Zones and Uses The subject site is surrounded by a mix of single-story and multi-story residential, commercial and mixed uses. North: Properties to the north of the subject site (across Elsinore Street) have a General Plan Land Use Designation of Low Medium II Residential, which is a multifamily residential designation with corresponding zones of RD1.5, RD2, RW2, and RZ2.5. The properties along the northern side of Elsinore Street are zoned RD2-1VL. Currently, the properties are fully developed with single-family and multi-family uses. The three properties directly north of the subject site contain three units, a single unit, and four units, respectively. West: Properties with frontages along Elsinore Street and Waterloo Street to the west of the project site have a General Plan Land Use Designation of Medium Residential, which is a multifamily designation with a corresponding zone of R3. Currently, these properties are fully developed with single-family and multifamily uses and are zoned R3-1VL. The property directly abutting the west side of the project parcel along Elsinore is developed with a 12-unit, 2-story multifamily structure. Westward from that property lie three single-family homes as well as a 15- unit, 2-story multifamily structure. The two properties directly west of the Sunset Boulevard project parcels have a General Plan Land Use Designation of Community Commercial with corresponding zones of CR, C2, C4, RAS3. Both properties are currently zoned [Q]C2-1VL (a commercial zone) and are developed with an office/commercial use and a single family home, respectively. Just west of these properties, the General Plan Land Use Designation changes to Medium Residential. These westward properties are zoned R3-1VL and are developed with 2-story multifamily uses, consisting of buildings containing 4 units, 8 units and 10 units, respectively. South: [Q]C2-1VL Properties south of the subject site across Sunset Boulevard have a General Plan Land Use Designation of Community Commercial and are currently zoned [Q]C2-1VL. These properties are fully developed with a retail shopping center as well as a series of 2- story mixed-use structures (east of Rosemont Avenue) containing commercial and residential uses.

8 CPC DB A-4 East: Sunset Boulevard-facing properties directly east of the subject site have a General Plan Land Use Designation of Community Commercial and are zoned [Q]C2-1VL. They are currently fully developed with commercial retail uses. The first Mohawk Street-facing property that abuts the eastern boundary of the project site is also designated as Community Commercial and is zoned [Q]C2-1VL and contains a 2-story, 4-unit multifamily building. The properties along Mohawk Street and abutting the eastern boundary of the project site have a Medium Residential General Plan Land Use Designation are zoned R3-1VL. They consist of a single-family home, a duplex, and a 2-story, 10-unit multifamily building. The three other lots along the western side of Mohawk Street are developed with single- and multifamily uses and include two single-family homes, as well as two units on one lot. Owing to the steep-sloping topography and predominant use of retaining walls along the western block face of Mohawk Street, the first levels of these structures lie approximately one-to-three stories above the Sunset Boulevard grade. Streets, Access, Transit Sunset Boulevard: The project site adjoins Sunset Boulevard along its southern perimeter. Sunset Boulevard is designated as a Class II Major Highway in the General Plan and is currently dedicated to approximately 100 feet with improved with curb, gutter and sidewalk. Elsinore Street: The project site adjoins Elsinore Street along its northern perimeter. Elsinore Street is designated as a Local Street and is currently dedicated to approximately 60 feet and improved with curb, gutter and sidewalk. Rosemont Avenue: The project site flanks the northern boundary of the T intersection of Rosemont Avenue and Sunset Boulevard (Rosemont Avenue is a north-south local street that approaches Sunset Boulevard from the south and terminates at their intersection). Rosemont Avenue is designated as a Local Street and is currently dedicated to approximately 60 feet and improved with curb, gutter and sidewalk. This project site is situated approximately 1,000 feet (1/5 th of a mile) west of the intersection of Alvarado Street and Sunset Boulevard. Both streets are designated as Class II Major Highways in the General Plan. Regional access to and from the project site is provided by these streets. Additionally, Freeways serving the project area are the Hollywood Freeway (US-101) approximately one-half mile south of the project, the Golden State Freeway (I-5) approximately two miles north of the project site, and the Glendale Freeway (SR-2) approximately one mile north of the project site. Local vehicular access to and from the project site is provided by local streets including Elsinore Street, Rosemont Street, Waterloo Street, and Mohawk Street. The site is also transit accessible since ample transit options are available in vicinity of the project site. A stop for Bus Rapid Transit Line 704 is located at the Alvarado/Sunset intersection approximately 1-1/2 blocks east of the project site. Line 704 connects Downtown Los Angeles to Santa Monica via Sunset Boulevard and Santa Monica Boulevard. The subject site is also served by Metro Local Bus lines 2, 4, 302 and 603. Line 2 connects Downtown Los Angeles to Pacific Palisades via Sunset Boulevard. Line 4 connects Downtown Los Angeles to Santa Monica via Sunset Boulevard and Santa Monica Boulevard. Line 304 connects Downtown Los Angeles to the Pacific Coast Highway via Sunset Boulevard. Line 603 connects Downtown Los Angeles to Glendale via Glassell Park and Atwater Village. Lines 2, 4, 302 and 704 are all 15- minute headway routes. Lines 4 and 704 connect the project site to the Vermont/Santa Monica Metro Rail Red Line stop and lines 2 and 302 connect the project site to the Vermont/Sunset Metro Rail Red Line stop. All the above bus lines are operated by the Los Angeles County Metropolitan Transportation Authority (Metro).

9 CPC DB A-5 As previously mentioned, there are two vehicle access points for this development. A driveway on Elsinore Street provides access to nine (9) parking spaces within the Elsinore Building and to 59 spaces in the second-story parking structure of the Sunset Building (which are accessed via an open-air driveway situated between the two buildings). The second driveway is located on Sunset Boulevard that will utilize the existing controlled / signalized intersection of Sunset Boulevard and Rosemont Avenue to help ensure safe and efficient vehicular flow. This driveway will provide the only access to 45 parking spaces in the first-story basement parking structure, which include 20 spaces designated for exclusive commercial use, 15 spaces for private residential use and 10 for residential guest use. As proposed, vehicular trips pertaining to retail activities will be limited to Sunset Boulevard since the basement parking structure is not accessible from the Elsinore Street driveway and only accessible from Sunset Boulevard. ISSUES AND DISCUSSION Consistency with the Community Plan The project site lies within the Silver Lake Echo Park Elysian Valley Community Plan Area. The Plan was adopted by the City on August 14, 2004 and is the Land Use Element of City s General Plan. As such, it contains the City s land use policies applicable to the plan area. The proposed project is within an area that is designated as a Community Center, a Mixed Use Boulevard and a Pedestrian Oriented Area in the Community Plan. In consistency with related Community Plan goals and objectives, the proposed project combines street-level retail uses fronting on Sunset Boulevard with residential uses above and is complementary to pedestrian orientation due to both its design and its proximity to a concentration of transit services described previously. Land uses for the block within which the project is located are designated as Commercial and Medium Residential in the Community Plan. Multifamily residential development is permitted in both designations. The R3 zone in the project block is intended to serve as a transition between the more intensive commercial and mixed uses along Sunset Boulevard and the more sensitive residential zoning designation of RD2 along the northern side of Elsinore Street. The land use and zoning context is supportive of the proposed project. While several single-family homes currently lie within the R3 zone of the subject block, the zone is intended for higher densities. The R3 zoning designation has been in place on the subject block for at least the past 20 years, demonstrating the longevity of the land use intent for the area. The project is making use of Density Bonus incentives to provide affordable units within the development and to provide mixed uses that are in scale and context with the surrounding area. The incentives accommodate the project in an area that is near commercial and job centers, transit routes and in a pedestrian oriented, mixed use area. In conformance with Community Plan goals and objectives, the project provides for new growth that is directed along a transit corridor and is a more intense and efficient use of existing land than current uses because it will result in a net increase in both dwelling units and commercial space. The requested incentives enable the project to shift intensity away from the multifamily residential neighborhood along Elsinore Street and to direct it toward the more intensive mixed use context of Sunset Boulevard. This enables the Elsinore Building to step back, away from Elsinore Street, thereby reducing and modulating its volume in a manner that achieves a scale and design that is compatible with the surrounding residential context. Conversely, the incentives enable the Sunset Building to provide street-level pedestrian oriented mixed uses

10 CPC DB A-6 while conforming to the dramatic topography and enabling the building to break its massing and modulate its volume as it steps back and away from Sunset Boulevard, in order to ensure compatibility with surrounding uses. While the Community Plan explicitly identifies areas where discretionary FAR bonuses for mixed uses are encouraged, concern has been expressed that the site of the subject project has not been explicitly identified as one such area. The absence of an explicit identification as a bonus area in the Community Plan does not preclude the analysis and discretionary consideration of a project on a case-by-case basis. As proposed, the subject project is consistent with the General Plan. Compatibility and Neighborhood Character The project as proposed is compatible with the surrounding neighborhood and complements its character. The design of the Sunset Building takes advantage of the steep slope along the Sunset Boulevard frontage to create a continuous grade-accessible commercial street façade with double-height commercial stalls (typically more marketable) and to screen parking from the street by tucking it into the slope behind the commercial store fronts. The building aligns its Sunset Boulevard driveway to use the existing signalization at the intersection with Rosemont Avenue, thereby providing for controlled vehicle movements in and out of the project and enhancing vehicular and pedestrian safety. The building s façade along Sunset Boulevard stimulates visual interest and invites activity through the use of decorative planters; ample fenestration and ground level display windows; prominent pedestrian entrances; variation in materials and colors; breaks in horizontal and vertical planes; and by providing a continuous streetwall that reinforces the existing commercial and mixed use frontages flanking Sunset Boulevard immediately east of the subject site. The 66-1/2 height is needed within the front façade of the building, along Sunset Boulevard, but the building height diminishes considerably at the 1/3 mark along the site (from front to rear), where the natural grade is about 30 feet higher than the Sunset Boulevard grade and which becomes much less steep for the remaining 2/3 of the site. The building s rear face is approximately 3 stories in height and its westerly and easterly (lateral) flanks read as (approximately) 4 and 3 stories in height, respectively. This building achieves this by taking advantage of the abrupt change to a more gentle topography at the rear of the site to tuck portions of the second and third stories below grade. The request for additional height is therefore only necessary for the front third of the building. Conversely, the incentives enable intensity to be shifted away from the Elsinore Street site and enable the Elsinore Building to achieve a compatible scale with the surrounding land use context. The incentives enable the building to provide a stepback that essentially pushes the third and fourth story of the building about 35 feet away from Elsinore Street (or about 100 feet away from the properties along the northerly portion of Elsinore Street). The highest point of the building (45 feet) occurs at the rear of the Elsinore Building at a distance of about 170 feet from Elsinore Street and 230 feet from properties on the northerly portion of Elsinore Street. The Elsinore Building reads as a two-story building with a rooftop terrace along Elsinore Street, which are proportions that are compatible with and complementary to the surrounding land use context. As proposed, the project provides a sensitive interface along the Elsinore Street frontage and is in scale with the surrounding area.

11 CPC DB A-7 Requested Entitlements In 2004, the State of California amended California Government Code Section with the intention of increasing the affordable housing supply across the State. All cities and counties in California were thereby required to adopt local ordinances providing incentives to developers who reserve certain percentages of units in housing development projects as affordable to lower income households. The City of Los Angeles adopted the City s Density Bonus Program by ordinance on April 15, 2008, and implemented it as Section A.25 of the Los Angeles Municipal Code (LAMC). In accordance with State law, the City s Program establishes minimum percentages of restricted affordable set aside units that are required to qualify for density and reduced parking bonuses, as well as other incentives that include waiver or modification of development standards necessary for the production of affordable housing. The project was originally filed with a request for 2 on-menu incentives (FAR increase and Averaging) and one off-menu incentive for height (the proposed height exceeded the onmenu height incentive by one story). Subsequently, the site was found to be situated in a Very High Fire Hazard Severity Zone, which pursuant to Section A.25(e)(2) of the LAMC, made the project ineligible for on-menu incentives. The request was therefore changed to off-menu incentives pursuant to Section A.25(g)(3) of the LAMC. As conditioned in this grant, the proposed project must meet conditions imposed by the Los Angeles Fire Department (see Conditions section below) and, furthermore, building or grading permits will not be issued for the proposed project unless and until the Los Angeles Fire Department (LAFD) has reviewed and approved the plans for the project. The subject project qualifies for off-menu incentives pursuant to Section A.25(g)(3) of the LAMC because it sets aside 16.1% of the proposed units (10 units out of a total of 62) as restricted affordable to Very Low Income households for a period of 30 years. The following incentives are sought in order to produce the affordable units: Floor Area. The square footage for the project as proposed is 6% in excess of the total 70,163 square feet allowed by the combined base zones (the project total is 74,101 square feet while the combined base zones allow for 70,163 square feet). In addition, an FAR averaging incentive enables the commercially zoned portion of the project site to be developed with an FAR of 1.94:1 in lieu of the 1.5:1 permitted by the [Q]C2-1VL zone. The FAR averaging is necessary for the Sunset Building and ensures that the Elsinore Building is restricted to a maximum FAR of 1.70:1 (well below the 3:1 FAR allowed by the applicable R3-1VL zone). FAR averaging and the small FAR bonus requested help to accommodate the project as proposed and help to shift development intensity away from Elsinore Street and toward Sunset Boulevard. As discussed under Compatibility and Neighborhood Character above, this shift in intensity enables the Elsinore Building to achieve a scale and massing that is compatible with the Elsinore Street neighborhood context and provides the Sunset Building with additional intensity to respond effectively to the dramatic topography of the site, provide desirable mixed uses, and add to the visual character and commercial activation of the area, in harmony with Community Plan policies. Density Averaging. Density averaging enables the applicant to provide two more units within the Elsinore Building than permitted by the R3-1VL zone, or a total of 14 units in lieu of 12. This incentive helps to reinforce the residential character and context of Elsinore Street. Parking and Access. While the project is utilizing Density Bonus Parking Option 1 which allows a by-right parking reduction, the project as a whole is providing 22 spaces more than the 81

12 CPC DB A-8 minimum required (for a total of 103 residential spaces). The Elsinore Building as proposed contains 10 spaces fewer than the 19 required. The parking averaging incentive is necessary to accommodate the Elsinore Building because it enables the parking requirements to be applied to the project as a whole rather than to individual buildings. Furthermore, the LAMC does not allow vehicular access from the less restrictive [Q]C2-1VL zone to the more restrictive R3-1VL zone. In order to accommodate the parking configuration and related access needs for the project as proposed, an incentive to allow for vehicular access from the less restrictive to the more restrictive zone is necessary. This incentive enhances on-site circulation, access to parking spaces and helps to accommodate the buildings in their proposed configurations. Height. The project requests an increase of 10 feet or 2 stories over the 57-foot or 3-story height limit permitted by the Code for the Sunset Building. The [Q]C2-1VL zone allows for a height of up to 45 feet or 3 stories, whichever is lower; however, the steepness of the Sunset Boulevard parcels qualify them for a 12-foot increase over what is allowed by the base zone. The proposed Sunset Building has a maximum height of 66-1/2 feet and a height of five stories (one story more than allowed in the menu of density bonus incentives). This height increase helps accommodate the shift in intensity from the Elsinore Building to the Sunset Building. The height adds building envelope capacity to the Sunset Building, which is utilized to provide breaks in massing through the use of stepbacks and setbacks, achieving an enhanced design that responds to the topography and is compatible with the broader area. Replacement of Existing Housing Concerns have been expressed that the 11 units that currently exist on the subject site are restricted affordable, and that the subject project will result in a net loss of 1 restricted affordable unit. While the existing units are currently subject to the Rent Stabilization Ordinance (RSO) because they were built prior to 1978, this is not equivalent to a covenanted affordability restriction. The RSO provides a yearly limit to the percent increase that can be applied to the rent paid by continuing renters within a structure that was built prior to 1978; however, whenever existing tenants move out, the property owner is then allowed to increase rent for the new, incoming tenants to market levels. It is therefore currently unknown whether rents for the existing units currently reflect market levels or otherwise. By comparison, a dwelling unit that is covenanted with an affordability restriction via the Density Bonus ordinance (Section A.25 of the LAMC), is subject to rent levels set by the California Department of Housing and Community Development (HCD) or by the United States Department of Housing and Urban Development (HUD), regardless of whether there are changes in tenancy and regardless of the date of construction. Therefore, RSO and Density Bonus are not equivalent, and quid pro quo replacement of existing units on the basis of affordability is not germane to the entitlement sought herein. Traffic, Parking and Access Many concerns have been expressed about potential traffic impacts of the project, particularly along Elsinore Street. A Traffic Study was required by Los Angeles Department of Transportation (LADOT) in order to assess potential impacts of the project. The Traffic Study was conducted by Overland Traffic Consultants in accordance with LADOT policies, procedures and impact criteria. The Traffic Study found that while the project will produce net new vehicular trips in the area, no significant impacts would occur because street network s capacity would remain greater than the load volume assuming the project is built. Furthermore, the Traffic Study estimated that as many as 20% of the aforementioned vehicular trips could be diverted to transit as a result of the concentration of transit options in the area.

13 CPC DB A-9 While LADOT typically requires that projects take access from a Major or Secondary Highway, LADOT has acknowledged the residential context of the project and adopted an arrangement that strikes a balance by reserving most of the residential trips for Elsinore Street and all of the commercial trips (which according to the Traffic Study will be the bulk of the trips), to Sunset Boulevard, a Class II Major Highway. This balanced approach also helps to retain a more pedestrian orientation along Sunset Boulevard in connection with Community Plan policies. Concerns have also been expressed about street parking in the area. Many properties in the neighborhood do not offer on-site parking owing to their age, given that the area was developed prior to current parking requirements. While the project is using a by-right Density Bonus parking reduction incentive for residential parking and a by-right State Enterprise Zone parking reduction for the commercial parking spaces, the project is providing 12 residential spaces beyond the minimum number required (101 spaces). Concerns have also been expressed about the effect of the proposed project on the safety of the intersection of Rosemont Avenue and Sunset Boulevard. As recommended by LADOT and conditioned in this grant, the project s Sunset Boulevard egress will utilize the existing traffic signal in order to prevent uncontrolled left turns and improve safety for both pedestrians and vehicles. Historic Resources Structures that currently exist on the site will be removed in conjunction with the proposed development. Concerns have been expressed about their historic potential, since many of them date back to the early 20 th Century. A Historic Study was conducted by consulting firm Kaplan Chen Kaplan that assessed the historic potential and integrity of each structure in accordance with policies and procedures of the City s Office of Historic Resources (OHR). The Historic Study found that none of the existing structures on the site meet the criteria necessary to be deemed as historically significant at the local, State or National level. The Office of Historic Resources reviewed the findings and concurred with them. Additionally, concern has also been expressed about potential demolition of six storefronts on the northwest corner of Mohawk Street and Sunset Boulevard (2201 Sunset Boulevard). These stores do not lie within the project site and are not part of the proposed project. None of these stores would be demolished in conjunction with the proposed project. Existing Trees There are currently 13 trees on the project site. A Certified Arborist (Lisa Smith, Tree Resource, Inc.) conducted an assessment and inventoried the species for existing trees on the site. While the assessment did not identify any trees subject to the City of Los Angeles Protected Tree Ordinance, the conditions in this approval require a tree expert s recommendations for the preservation of as many desirable trees as possible. CONCLUSION The Department recommends approval of the proposed project as conditioned in this report. In consistency with the General Plan, the project will redevelop underused lots with more efficient and intensive uses that are transit accessible and reduce auto dependence, are located near employment centers, and that improve the city s job/housing balance by providing both commercial and residential uses. The project will provide community-serving retail services and helps to direct growth toward a Community Center and designated mixed use corridor. The project will provide additional housing opportunities in the area and reserve a portion of them as affordable to lower income households.

14 CPC DB A-10 The requested incentives enable the project to achieve compatibility with surrounding land uses and to complement the character of the neighborhood by shifting intensity away from the more sensitive uses along Elsinore Street and toward the more intensive mixed use environment along the Sunset Boulevard frontage and to take advantage of the topographic features of the area in order to maximize pedestrian orientation. The incentives enable significant breaks in massing and volume of both Sunset Building and Elsinore Building, allowing them to achieve scales that are proportional to and compatible with the surrounding land use context. The incentives also enable the project site to be used with enhanced internal flexibility in terms of the configuration of buildings, uses and circulation. The mixed use project will be a key activator and will reinforce the identity and pattern of development along this portion of Sunset Boulevard as a mixed use boulevard and Community Center, and will provide a contextual and responsive form along Elsinore Street.

15 CPC DB C-1 Entitlement Conditions CONDITIONS OF APPROVAL 1. Site Plan. The use and development of the subject property shall be in substantial conformance with the site plan, floor plans and elevations labeled EXHIBIT A and dated December 3, 2010, attached to the subject case file. The applicant shall submit to the Department of City Planning a detailed Final Landscape Plan that shall comply with the City s Landscape Ordinance and that shall demonstrate the that the landscaping for the Housing Development Project is sufficient to qualify for the number of landscape points required by Section of this Code and Landscape Ordinance Guidelines, as part of the final plans for review and approval by the City Planning Department. Minor deviations may be allowed in order to comply with provisions of the Municipal Code, the subject conditions and the intent of the subject permit authorization. 2. Use. The main use of the subject property shall be limited to 62 residential units; and 9,997 square feet of commercial uses as permitted by Section 12.21A4(x)(3) of the LAMC. Uses that are appurtenant or accessory to the main uses above shall be allowed pursuant to the zoning designations of the project site or as otherwise permitted in this grant. Ten (10) units shall be reserved as restricted affordable units as defined by the State Density Bonus Program. Pursuant to Section A.25(g)(3) of the LAMC and as permitted in this grant, the proposed project shall be permitted to use density averaging to allow for the 62 units to be distributed across the site (the R3-1VL portion of the site shall be permitted to have up to 14 units in lieu of the number otherwise allowed by the zone). Pursuant to A.25(g)(3) of the LAMC and as permitted in this grant, vehicular access from the less restrictive [Q]C2-1VL zone to the more restrictive R3-1VL zone in lieu of the requirements of Section 12.21C5(h) of the LAMC shall be allowed. 3. Height / FAR. Pursuant to Section 12.22A25(g)(3) of the LAMC, the project shall be limited to a maximum building height of 5 stories or 66.5 feet, excluding rooftop structures, on the parcels zoned [Q]C2-1VL that front on Sunset Boulevard and as shown on the plans dated December 3, 2010 (EXHIBIT A). The project shall be limited to a maximum height of 45 feet, excluding rooftop structures, on the parcel zoned R3-1VL that fronts on Elsinore Street and as shown on the plans dated December 3, 2010 (EXHIBIT A). Any structures on the roof, such as air conditioning units and other equipment, shall be fully screened from view of any abutting properties. Pursuant to A.25(g)(3), the proposed project shall be limited to a maximum total FAR of 74,372 square feet of development, and shall be allowed to average the FAR over the project site (therefore allowing an FAR of up to 1.94:1 in lieu of the 1.5:1 FAR permitted on the parcels zoned [Q]C2-1VL). Minor deviations may be allowed in FAR and height calculations in order to comply with provisions of the Municipal Code, the subject conditions and the intent of the subject permit authorization. 4. Setbacks. Setbacks shall be provided as required by the [Q]C2-1VL and R3-1VL zones. 5. Open Space. Usable open space shall be provided for all units on the site as required by Los Angeles Municipal Code Section G. 6. Automobile Parking. Pursuant to Section A.25(d)(1) of the LAMC, (Parking Option 1), a minimum number of 81 on-site residential spaces shall be provided. Pursuant to Section A.4(x)(3), a minimum of 20 on-site commercial parking spaces shall be provided. Pursuant to Section A.25(g)(3) of the LAMC and as permitted in this grant, up to 104 on-site residential parking spaces may be averaged across the project site

16 CPC DB C-2 (thereby allowing the building located on the parcel zoned R3-1VL to provide a number of parking spaces that is less than the minimum otherwise required by the zone). 7. Housing Requirements. Prior to issuance of a building permit, the owner shall execute a covenant to the satisfaction of the Los Angeles Housing Department to make 100% of the 10 set aside units available for rent solely Very Low Income households for a period of 30 years. The covenant shall include the following affordability breakdown and parking allocation: of the total of 62 units proposed, 10 units (16.1% of the total) shall be designated as Very Low Income housing as defined and published by the California Department of Housing and Community Development (HCD), and 52 units (83.9% of the total) shall be non-restricted units. Pursuant to A 25 (d) (1) of the LAMC, the project will utilize Parking Option 1 and provide a minimum of 81 residential on-site parking spaces. Pursuant to Section A.25(d)(1) of the LAMC, (Parking Option 1), a minimum number of 81 on-site residential spaces shall be provided on-site. Pursuant to Section A.25(g)(3) of the LAMC, up to 104 residential parking spaces may be averaged across the project site (thereby allowing the building located on the parcel zoned R3-1VL to provide a number of parking spaces that is less than otherwise permitted). Pursuant to Section A.25(g)(3) of the LAMC, the proposed project shall permit vehicular access from a less restrictive zone to a more restrictive zone in lieu of the requirements of Section 12.21C5(h) of the LAMC. Additionally, the project shall comply with Section A.25 of the LAMC, California Government Code Section 65915, and with any monitoring requirements established by the LAHD. The applicant shall present a copy of the recorded covenant to the Planning Department prior to the issuance of any building permits. (LAHD) 8. Tenant Relocation: Prior to issuance of a grading or building permit, the applicant shall prepare and execute a Covenant and Agreement (Planning Department General Form CP-6770) to the satisfaction of the Planning Department, binding the applicant and all successors-in-interest to provide tenant relocation assistance in accordance with the major changes in the tenant relocation assistance provisions of the LAMC and Rent Stabilization Ordinance (RSO) raising the amounts required to be paid to tenants for no-fault evictions. These changes took effect on April 11, 2007 and shall be paid by the current applicant and establish a relocation program in a manner consistent with Section of the LAAMC relating to demolitions. Prior to grading or building permit sign-off by the Planning Department, the applicant shall provide satisfactory evidence that a copy of the covenant and agreement required by this condition has been provided to each tenant who will be relocated. 9. Public Improvements. Prior to the issuance of any building permits, public improvements and dedications for streets and other rights-of-way adjoining the subject property shall be guaranteed to the satisfaction of the Bureau of Engineering, Department of Transportation, Fire Department (and other responsible City, regional, and Federal government agencies, as may be necessary). a. Responsibilities/Guarantees. Prior to issuance of sign-offs for final site plan approval and/or project permits by the Department of City Planning, the applicant/developer shall provide written verification to the Department of City Planning from the responsible agency acknowledging the agency's consultation with the applicant/developer. Any changes to the project design required by a public agency shall be documented in writing and submitted for review by the Department of City Planning. b. BOE Street Dedications: A 2-foot foot wide strip of land along the Sunset Boulevard frontage of the project site in order to complete a 52-foot half right-of-

17 CPC DB C-3 way in accordance with Major Highway - Class II standards, as designated in the General Plan. c. BOE Improvements: (i) (ii) (iii) (iv) (v) (vi) (vii) Construct additional concrete sidewalk in the dedicated area and repair any broken, off-grade or bad order concrete curb, gutter and sidewalk and close any unused driveways. Construct retaining wall as necessary on private property to control slough onto the sidewalk. Elsinore Street - Repair any broken, off-grade or bad order concrete curb, gutter and sidewalk and close any unused driveways. Install tree wells with root barriers and plant trees satisfactory to the City Engineer and the Urban Forestry Division of the Bureau of Street Services (213) Sewer lines exist in Elsinore Street and Sunset Boulevard. All Sewerage Facilities Charges and Bonded Sewer Fees are to be paid prior to obtaining a Building Permit. An investigation by the Bureau of Engineering Central District Office Sewer Counter may be necessary to determine the capacity of the existing public sewers to accommodate the proposed development. Submit a request to the Central District Office of the Bureau of Engineering (213) Submit shoring plans and lateral support plan to the Central District Office of the Bureau of Engineering Excavation Counter for review and approval prior to excavating adjacent to the public right-of-way (213) Two copies of a parking area and driveway plan shall be submitted to the Central District Office of the Bureau of Engineering for approval or that a covenant and agreement be recorded agreeing to do the same prior to the issuance of a building permit. d. Building and Safety Grading Division: A soils report may be required prior to the issuance of any permit. e. Parks: Per Section of the Municipal Code, the applicant shall pay the applicable Park and Recreation fees in-lieu of the dedication of land otherwise required. f. Bureau of Street Trees. (i) Two existing street trees shall be removed. Note: Contact the Urban Forestry Division at (213) for site inspection prior to any street tree work. All street tree removals require prior approval by the City of Los Angeles Board of Public Works.

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