May 28, 2022 Breaking News, Latest News, and Videos

Metro Pacific Capital Granted Exclusive Negotiations To Develop 4th/Arizona Site:

Two went in, one came out. Council members unanimously selected a developer Tuesday to enter an exclusive negotiating agreement for the right to eventually build a project on City-owned property between Fourth and Fifth Streets south of Arizona Avenue.

The Santa Monica City Council selected Metro Pacific Capital to exclusively negotiate how to develop the downtown property, which is walking distance to the Third Street Promenade.

Earlier this year on Aug. 27, City staff had recommended that the City Council enter into exclusive negotiations with the Metro Pacific team based on the selection panel’s determination that their proposal best addressed the evaluation criteria and development objectives for the development site.

However, at that City Council meeting, council members instead directed staff to request additional information from two of the three applicant teams – the Metro Pacific Capital team and the Related California team – and to report back to Council in December.

It was Metro Pacific Capital’s new proposal on Tuesday that came out triumphant. Its plan calls for a 448,000-plus square foot mixed-use project, which would include a hotel, office space, residences, and retail.

According to plans, Metro Pacific Capital proposes as a 225-room hotel (127,000 square feet), 96 residential units (85,000 square feet), and a building reaching 148 feet – or 12 stories – in height. Also proposed: 172,000 square feet of office space; 52,000 square feet dedicated to retail and cultural facilities; almost 11,000 square feet for service and back of house; open space; a second-floor public terrace; ground-floor public plaza; and, public pocket parks.

By comparison, Related California proposed a 484,000-plus square foot project with more residential units. However, the proposed project did not include plans for a hotel.

Also, Metro Pacific Capital pitched 50 percent of residential units would be affordable housing. Even though Related California’s proposal featured more affordable housing units – 52 versus Metro Pacific Capital’s 48 – 80 percent of the residential units would presumably be offered at market rates.

A major factor in deciding which developer to select, City staff stated, was the number of market-rate residential units and the proposed hotel.

“The key difference in the proposed mix of uses is the Related team’s proposal to build 208 market-rate apartments and the Metro Pacific team’s proposal to build 225 hotel rooms. This difference in proposed market-rate residential use versus hotel use is one of the most significant decision points,” City staff stated.

Another difference between both projects: the amount of money each could generate for the City.

Metro Pacific Capital reported to City staff its project could produce almost $6.4 million annually in City revenues, compared to about $4.7 million by the Related California project.

The City revenue would be derived from ground lease payments, property taxes, sales tax, use tax, parking tax, business license tax, utility tax, and transient occupancy tax, among others.

Both Metro Pacific Capital and Related Capital were given guidelines to follow in creating its respective proposals.

The guidelines were: develop a programmable gathering space; provide ground-floor retail, restaurant, and cultural space; ensure the project has “a mix of uses such as retail, cultural, office, hotel and residential; be of exceptional architecture and sustainable design; have public access to views; provide at least 339 parking spaces; the approach to development should be flexible; and, the plans should incorporate concepts identified in the Downtown Specific Plan process.

Metro Pacific Capital still has quite a ways to go before entering into a development agreement (DA) with City Hall.

With the council’s decision Dec. 10, City Hall and Metro Pacific Capital will be entering into an Exclusive Negotiating Agreement, or ENA.

The ENA, according to City Hall, “affirms that the City will not negotiate with any other developer for the development of the site for the duration of the ENA.”

“Entering into an ENA does not convey project approval or obligate the City to grant any entitlements. The ENA would require that the Developer make a good-faith deposit with the City and demonstrate evidence of financing prior to execution of a ground lease,” City staff stated.

During the exclusive negotiation, City officials and Metro Pacific Capital would determine the terms and conditions of the project, establish a schedule of performance, provide design concepts, and ultimately enter into a DA.

Also part of the process, if it gets that far, would be input from the public, Architectural Review Board, and the Planning Commission. The final step would be a public hearing and vote at a council meeting.

“This project would proceed in tandem with the Downtown Specific Plan process, and the two efforts would continue to be coordinated,” City staff stated. “A development agreement application would not likely be submitted until sometime in 2014 and construction would not be expected to commence until 2016.”

ICE at Santa Monica currently occupies the 112,000-square-foot City-owned property.

in News
Related Posts

Seller of Bel Air Mansion Furious After Property Flops at Auction

May 27, 2022

May 27, 2022

Mansion on Sarbonne Road in Bel Air fails to meet $50 million reserve price By Sam Catanzaro The seller of...

Environmental Review Begins for West Los Angeles Civic Center Redevelopment

May 27, 2022

May 27, 2022

The West LA Commons set to bring 926 units of housing and 36,569 square feet of retail to Santa Monica...

Is Santa Monica’s Most Expensive Property Still a Bargain?

May 27, 2022

May 27, 2022

22,640 square-foot property on market for $69 million By Dolores Quintana The most expensive property in Santa Monica has been...

Must-Watch ‘Disruptive’ Appliance Experience Store Opens in West Los Angeles, Hosts Grand Opening in June

May 27, 2022

May 27, 2022

Howard’s West Los Angeles Experience Center opening at 900 La Brea Boulevard  By Susan Payne West Los Angeles is home...

Marina Del Rey Family Searches for Missing 29-Year-Old Son With Autism

May 27, 2022

May 27, 2022

J​​eremy Hansbrough missigns cine May 16 By Sam Catanzaro A Marina del Rey family is searching for their 29-year-old son...

Santa Monica Pier to Feature High-Flying Waving American Flag on  Ferris Wheel During Memorial Day Weekend

May 26, 2022

May 26, 2022

Pacific Park on the Santa Monica Pier’s Ferris wheel will feature a high-flying 130-feet tall, animated waving American flag throughout...

Message From Santa Monica-Malibu Unified School District Superintendent Dr. Ben Drati

May 26, 2022

May 26, 2022

Dear Parents, Guardians, Staff and Community Members, Sadly, we have learned of another horrific school shooting, this time in the...

Three Juveniles in Hosptial Following Overdose in Santa Monica

May 26, 2022

May 26, 2022

Two females in critical but stable condition, third victim “alert and recovering” By Sam Catanzaro Three juveniles suffered an overdose...

John Adams Middle School Student Selected to Perform at Carnegie Hall

May 24, 2022

May 24, 2022

JAMS Student Grayson Fitzgerald named junior finalist for the 2022 middle school honors performance series at Carnegie Hall By Staff...

SMC Student Film “The War Within” Accepted into 2022 American Pavilion at Cannes

May 24, 2022

May 24, 2022

Three Santa Monica College Films Will Screen at In-Person Festival, including 2021 Best Student Film Winner “Broken Layers” and 2020’s...

Santa Monica City Council Looks to Shorten Meetings

May 24, 2022

May 24, 2022

Council to consider changes at Tuesday meeting By Dolores Quintana Santa Monica lawmakers are considering taking steps to shorten City...

Landmark Theater Official Closes on Pico

May 24, 2022

May 24, 2022

Pico Boulevard location closes Sunday By Sam Catanzaro The Landmark Theater on Pico Boulevard in Westwood has officially closed.  The...

Road Closures Expected During Demolition Of Parking Structure Three: Santa Monica Beat – May 23rd, 2022

May 23, 2022

May 23, 2022

Local news and culture in under 5 minutes.* Free Donuts At Randy’s Donuts For National Doughnut Day* Road Closures Expected...

Los Angeles Metro Sees 15.9 Percent Increase in Median Rent

May 20, 2022

May 20, 2022

Median rent of $2,258, according to recent report By Dolores Quintana The ongoing pandemic has exacerbated the issues of housing...

New Renderings for Frank Gehry Hotel Development in Santa Monica

May 20, 2022

May 20, 2022

Project would include hotel, apartments, retail and a museum By Dolores Quintana Slowly but surely, plans for a  Frank Gehry-designed...