TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Laurie B. Jester, Planning Manager
Marisa Lundstedt, Community Development Director
SUBJECT:Title
Consideration of Certification of a Final Environmental Impact Report and Approval of a Master Use Permit Amendment, Height Variance and Master Sign Program/Exception for the Manhattan Village Shopping Center Enhancement Project at 2600 through 3600 Sepulveda Boulevard and 1220 Rosecrans Avenue (Planning Manager Jester / Community Development Director Lundstedt).
ADOPT RESOLUTION NO. 14-0025 CERTIFYING THE FINAL EIR AND RESOLUTION NO. 14-0026 APPROVING THE PROJECT WITH CONDITIONS
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Recommended Action
RECOMMENDATION:
After providing an opportunity for RREEF, 3500 Sepulveda LLC, Macy's, and the public to comment on the draft resolutions and draft conditions, the Council has the following options:
A. ADOPT RESOLUTION NO. 14-0025 CERTIFYING THE FINAL EIR, AND ADOPT RESOLUTION NO. 14-0026 AS DIRECTED BY THE CITY COUNCIL ON MAY 20, 2014; OR
B. ADOPT RESOLUTION NO. 14-0025 CERTIFYING THE FINAL EIR, AND ADOPT RESOLUTION NO. 14-0026 WITH MODIFICATIONS REQUESTED BY RREEF; OR
C. ADOPT RESOLUTION NO. 14-0025 CERTIFYING THE FINAL EIR, AND ADOPT RESOLUTION NO. 14-0026 WITH ADDITIONAL MODIFICATIONS AND REASONABLE CONDITIONS; OR
D. DIRECT STAFF TO DRAFT RESOLUTIONS TO DENY THE APPLICATION
Prior to any motion to approve the project (Options A, B, or C) the Council must take action on Resolution No. 14-0025 regarding the EIR.
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BACKGROUND:
After numerous public hearings and meetings, on January 14, 2014 the City Council directed staff to prepare draft resolutions certifying the Final EIR and approving a refined and modified Project. The draft resolutions were brought back to the City Council on May 20, 2014, and all of the property owners and the public were provided an opportunity to comment. The Council requested additional conditions and RREEF has been reviewing its options since that meeting. The draft CEQA Resolution (Resolution No. 14-0025) is Attachment 1. The draft Project Resolution (Resolution No. 14-0026) is Attachment 3. Legislative Digests for the Resolutions that highlight the changes between the May 20 Draft Resolutions and the current revised Resolutions are included as Attachments 2 and 4, respectively.
Additionally, the City's website has a separate page devoted exclusively to the Project that includes all of the prior proceedings before the Planning Commission and City Council including agendas, reports, attachments, minutes, presentations and videos of all the meetings.
Below is a high-level summary of the chronology of events that have led up to the current consideration:
· November 7, 2006: RREEF America Reit Corp BBB II (RREEF) submitted an application for land use entitlements for improvements at the Manhattan Village shopping center.
· June 27, 2012, October 3, 2012, March 13, 2013, April 24, 2013, May 22, 2013, June 26, 2013 and July 24, 2013: Planning Commission public hearings.
· July 24, 2013: Planning Commission certifies the EIR and approves the Project.
· September 3, 10, and 17, 2013, October 8, 2013 November 12, 2013, January 14, 2014, April 29, 2014, May 20, 2014: City Council public hearings and meetings.
· May 20, 2014: City Council adopted a motion directing staff to finalize resolutions to certify the EIR and approve the project, with additional conditions.
· November 2014: RREEF submitted a response to the Council's motion.
DISCUSSION:
As noted above, Council has four options to consider regarding this project. The below information provides a high-level background, summary and comparison of each option and then a more thorough discussion of RREEF's response to the May 20, 2014 Council direction.
OPTIONS
Option A: Adopt the attached Resolutions Nos. 14-0025 and 14-0026 consistent with the City Council motion.
City Council May 20, 2014 Approved Motion and Direction: On May 20, 2014, the City Council considered draft resolutions to certify the EIR and approve the project, with conditions. After hearing comments from RREEF, 3500 Sepulveda, and the public, Mayor Pro Tem Powell made a motion, seconded by Councilmember Lesser and amended by Councilmember Burton, to direct staff to revise the draft resolutions certifying the Final EIR and approving the Project by incorporating the following:
· A stairway and elevator in the west side of the North Parking Structure
· A reduction in the North Parking Structure to a G + 1
· In addition to approving Phases I and II, approve Phase III.
In addition, the Council directed staff to analyze any potential environmental impacts that might arise from the above modifications and requested that RREEF provide the City with a copy of the agreement regarding consolidation between RREEF and Macy's within 10 days of its execution; and negotiate in good faith with 3500 Sepulveda. The May 20 staff report and minutes are included as Attachments 6 and 7. Also, as explained below, staff has added a condition for interim landscaping and signage.
Option B: Adopt the attached Resolution No. 14-0025, and adopt Resolution No. 14-0026 with modifications requested by RREEF.
As shown in more detail below, RREEF has requested that the Council approve the project, with the following revisions:
· Maintain the North Parking Structure as G + 2
· Approve Phases I and II, only, and defer entitlements to Phase III
· Add a condition requiring that RREEF install 30 additional parking spaces adjacent to 3500 Sepulveda in the culvert with a stairway leading directly to 3500 Sepulveda
· Add a condition requiring that RREEF install interim landscaping and signage to upgrade the corner of Sepulveda Boulevard and Rosecrans Avenue
· Add a condition requiring that RREEF provide a right turn/deceleration lane from Sepulveda Boulevard at 33rd Street, into the Mall.
If the Council takes action to approve this Option B, or portions thereof, specific portions of Resolution No. 14-0026 can be revised at the City Council meeting. Staff will be prepared to suggest revisions in such event.
Option C: Adopt the attached Resolutions Nos. 14-0025 and 14-0026 with the addition of modifications and reasonable conditions.
The City Council has the discretion to modify the approvals and add additional reasonable conditions that may be consistent with or differ from the approvals and conditions in either Option A or Option B. If the Council took action to approve this Option C, certain portions of Resolution No. 14-0026 would need to be revised. Whether such portions can be revised at the council meeting depends on the nature of such modifications and conditions and whether additional environmental analysis would be needed.
Option D: Direct Staff to draft resolutions to deny the application.
The City Council has the discretion to deny the project. If the Council selects this option, it should direct staff to draft the necessary resolutions to deny the application for future Council consideration.
RREEF'S RESPONSE TO MOTION ON MAY 20, 2014
After the May 20 meeting, staff reached out on a number of occasions to RREEF and requested updates on the project and meetings to discuss the status. Over the past several months RREEF has had a change in its project management team and has been exploring options to address the direction provided by the City Council in May. In November, RREEF submitted a written response to the motion (Attachment 5), which has been posted on the City's website and provided to 3500 Sepulveda. Thereafter, RREEF offered to provide a right-turn/deceleration lane at the 33rd Street entrance and interim landscaping and signage at the corner of Rosecrans and Sepulveda. Also in November, staff had several meetings with RREEF and 3500 Sepulveda.
The following describes how RREEF has responded to the Council's motion on May 20.
1. Additional Stairway and Elevator on the West Side of the North Parking Structure
On May 20, 3500 Sepulveda requested an additional stairway and elevator on the west side of the North Parking Structure. RREEF has agreed, and Condition 50 in Resolution 14-0026 has been revised to reflect this modification. This will improve access to parking, as well as pedestrian access, to the 3500 Sepulveda building and the other buildings to the west of the parking structure.
2. Conferring Entitlements to Phase III at This Time.
RREEF submitted an application for a three-phase Project which would add 133,300 square feet of commercial uses with required parking to the existing 572,800 square foot mall. Option A would approve all three phases consistent with the City Council motion. As shown in the legislative digest for Resolution 14-0026, the attached Resolution 14-0026 has been revised to approve Phase III in addition to Phases I and II.
RREEF would like to defer receiving its entitlements for Phase III to provide it with the opportunity to design Phase III in a manner that responds to the market at the time the Phase is developed as well as integrate the design into the other two Phases in a more cohesive and thought out plan. Section 18 and Condition 15 of draft Resolution 14-0026 would need to be revised to remove the approval of Phase III if the Council selects Option B. Other changes also may be required.
RREEF has offered to install interim landscaping and signage to upgrade the corner of Sepulveda Boulevard and Rosecrans Avenue. RREEF understands the importance of creating a dynamic statement at this gateway into Manhattan Beach. Staff feels that the prompt installation of interim landscaping and signage at the corner of Sepulveda and Rosecrans is important because under Option A, Option B or C, there will be considerable time before Phase III is implemented. Thus, as shown in the legislative digest for Resolution 14-0026, certain findings and Conditions 10 and 11 in the attached draft Resolution 14-0026 have been revised to reflect RREEF's offer.
3. Reducing the North Parking Structure to a G + 1
Consistent with Council direction, draft Resolution 14-0026 provides for the elimination of the second level of the North Parking Structure, which reduces the parking by 124 spaces. See conditions 13 a and 50.
RREEF has indicated that it is unable to reduce the North Parking Structure due to parking demand in the "core area" which serves the existing Mall and the proposed outdoor plaza and Phases I and II. Correspondence from 3500 Sepulveda states that a "decrease in core mall parking" hurts the small businesses on its property. RREEF has indicated that Macy's expansion is dependent on having a pedestrian bridge from the Structure directly to Macy's. The second level of parking is a critical element to bridge over Cedar Way and provide a safe pedestrian access into Macy's second level on the west side. This will match the bridge located at the South Deck that accesses the south anchor in the Main Mall building.
If Council approves Option B, conditions 13 a and 50 can be revised at the Council meeting.
4. Good Faith Negotiations
RREEF met with 3500 Sepulveda in November. RREEF has informed staff that as a further indication of its good faith, it has offered to provide 30 more parking spaces adjacent to 3500 Sepulveda in the culvert with a stairway leading directly to 3500 Sepulveda. With the stairway and elevator on the west side of the North Parking structure, and the additional parking and pedestrian access in the culvert, pedestrian and vehicular connections to the 3500 Sepulveda building have been enhanced. If the Council wants to accept this offer, Condition 50 of Resolution 14-0026 can be revised at the Council meeting.
3500 Sepulveda has expressed concerns about the short-term impacts on parking and access during construction. A detailed Construction Traffic and Parking Management Plan is required by Condition No. 49. This subject has been discussed at several City Council meetings, and presentations on the Construction Parking Management Plan were provided to the Council and public by RREEF at the November 12, 2013, April 29, 2014 and May 20, 2014 City Council meetings. Additionally, the Draft EIR Volume III, Technical Appendices, Appendix G-Traffic Study, Chapter 7, provides a detailed analysis of construction parking with each Phase evaluated by monthly stages. All parking can be accommodated during construction. RREEF is willing to discuss the Plan with 3500 Sepulveda and its tenants.
5. Agreement between RREEF and Macy's
RREEF has agreed to provide the agreement within 10 days of its execution. RREEF has indicated that due to confidentiality and fiduciary requirements that sensitive materials will be redacted from the agreement.
6. Right turn/deceleration Lane from Sepulveda Boulevard
RREEF has offered to provide a right turn/deceleration lane from Sepulveda Boulevard at 33rd Street, into the Mall. This will require dedication of land and removal of landscaping but will not impact parking on the site. If the Council wants to accept this offer, certain findings and Condition No. 39 can be revised at the Council meeting.
Environmental Analysis
At the City's request, independent environmental consultant Matrix and independent traffic consultant Gibson Traffic Consulting, Inc. have analyzed the following features of Options A and B:
• a stairway and elevator at the west side of the North parking structure;
• 30 additional parking spaces adjacent to 3500 Sepulveda in the culvert with a stairway leading directly to 3500 Sepulveda;
• Interim landscaping and signage at the corner of Rosecrans Avenue and Sepulveda Boulevard; and
• A right-turn/deceleration lane at the 33rd Street entrance to the Project Site.
Matrix finds that all of these proposed conditions are within areas of the Project Site that were expected to be developed as part of the Project; would not result in new traffic or parking impacts; and the analysis and conclusions reached in the EIR with regard to traffic and parking remain valid. Matrix further finds that with regard to all other environmental issues, the proposed conditions are minor and would not substantively change any of the analyses within the EIR and would not result in significant environmental impacts, or require any additional mitigation. Matrix has concluded that no changes to the Project have been made that would modify or undermine the conclusions of the EIR since the Final EIR was presented to City Council in Spring 2014 (See Attachment 8). There is a link to the Mall page on the homepage of the City's website, which includes the Draft and Final EIRs, and are posted on the website at:
CONCLUSION:
In summary, the Council has a number of different options:
Option A
a) Adopt Resolution No. 14-0025, Certifying the Final Environmental Impact Report (Final EIR) and Adopting a Mitigation Monitoring and Reporting Program; and
b) Adopt Resolution No. 14-0026, Approving the Master Use Permit Amendment, Height Variance and Master Sign Program/Exception.
Resolution 14-0026 incorporates all of the provisions and refinements directed by the City Council on May 20, 2014, with the addition of a condition requiring interim landscaping and signage at the corner of Sepulveda and Rosecrans.
Option B
a) Adopt Resolution No. 14-0025, Certifying the Final Environmental Impact Report (Final EIR) and Adopting a Mitigation Monitoring and Reporting Program; and
b) Adopt Resolution No. 14-0026, Approving the Master Use Permit Amendment, Height Variance and Master Sign Program/Exception, modified as follows:
· Maintain the North Parking Structure as G + 2
· Approve Phases I and II, only
· Add a condition requiring that RREEF install 30 additional parking spaces adjacent to 3500 Sepulveda in the culvert with a stairway leading directly to the building
· Add a condition requiring that RREEF install interim landscaping and signage to upgrade the corner of Sepulveda Boulevard and Rosecrans Avenue
· Add a condition requiring that RREEF provide a right turn/deceleration lane from Sepulveda Boulevard at 33rd Street, into the Mall.
As noted above, all necessary revisions to the draft Resolution No. 14-0026 can be made at the City Council meeting.
Option C
a) Adopt Resolution No. 14-0025, Certifying the Final Environmental Impact Report (Final EIR) and Adopting a Mitigation Monitoring and Reporting Program; and
b) Adopt Resolution No. 14-0026, Approving the Master Use Permit Amendment, Height Variance and Master Sign Program/Exception, with additional modifications and reasonable conditions.
As noted above, additional changes may or may not be made at the City Council meeting depending on the nature of the changes.
Option D
Direct staff to prepare Resolutions denying the Project.
In addition, the Council also has the discretion to continue the matter.
ATTACHMENTS:
1. Resolution No. 14-0025- Certifying the Final Environmental Impact Report, Adopting Findings Pursuant to the California Environmental Quality Act, and Adopting a Mitigation Monitoring and Reporting Program
2. Legislative Digest- Draft Resolution No. 14-0025
3. Resolution No. 14-0026- Approving a Master Use Permit Amendment, Height Variance, and Master Sign Program/Exception
4. Legislative Digest- Draft Resolution No. 14-0026
5. RREEF's November 2014 Response to Council Motion
6. May 20, 2014 City Council staff report, excluding attachments
7. May 20, 2014 City Council approved minutes
8. November 25, 2014 Letter from Matrix Environmental and November 20, 2014 Letter from Gibson Transportation Consulting, Inc.