City Council

(11) 14-0425-S14 CD 10 COMMUNICATION FROM ECONOMIC AND WORKFORCE DEVELOPMENT DEPARTMENT (EWDD) relative to an Exclusive Negotiation Agreement (ENA) with Hudson Pacific Properties, Inc. (Hudson Pacific Properties) for the purchase and development of City-owned property located at 3782 and 3838-3916 West Martin Luther King Jr. Boulevard, and the City-Optioned, Community Redevelopment of Los Angeles (CRA/LA) owned parcels located at 3700, 3738-3772 West Martin Luther King Jr. Boulevard, 3800-3824 West Martin Luther King Jr. Boulevard, and 4011-4027 South Marlton Avenue; for the Marlton Square Project  in Council Distrrict 10. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: APPROVE the selection of Hudson Pacific Properties (also referred to as Buyer) as the preferred developer/buyer to purchase and develop the Marlton Square Project. AUTHORIZE the General Manager, EWDD, or designee, to, on behalf of the City, enter into an ENA with Hudson Pacific Properties to construct a mixed-use development on the City-owned property at 3782 and 3838-3916 West Martin Luther King Jr. Boulevard (APNs: 5032-005-902 and 5032-004-910, 911, 912, 913, 914, 915, and 916) (City Parcels), and the City-Optioned, CRA/LA owned parcels located at 3700, 3738-3772 West Martin Luther King Jr. Boulevard, 3800-3824 West Martin Luther King Jr. Boulevard, and 4011-4027 South Marlton Avenue (APNs: 5032-003-900, 901, 902, 903, 904, 905, 906 and 5032-004-900) (CRA/LA Parcels) (collectively the City Parcels and CRA/LA Parcels are referred to herein as Marlton Square Parcels); and, effectuate the purchase and sale of the Marlton Square Parcels for the purposes of constructing a mixed-use office, retail, and commercial project (Marlton Square Project). AUTHORIZE the term of the ENA to be 12 months, with the potential for up to two 90-day extensions, solely at the discretion of the City. AUTHORIZE the General Manager, EWDD, on behalf of the City, to execute a First Amendment to the Contract with Keyser Marston Associates (Contract No. T7077), amending the term of the agreement to end on December 31, 2024, and amending the not-to-exceed compensation to $100,000, in order to provide real estate advisory services on the Marlton Square and other real estate economic development projects. REQUEST the City Attorney, with the assistance of EWDD, to prepare a Disposition and Development Agreement, Grant Deed, Covenant Agreement, Sale Ordinance, and any additional documents necessary to effectuate the City’s sale of the Marlton Square Parcels to Buyer, at values to be negotiated. AUTHORIZE the General Manager, EWDD, with the assistance of the Chief Legislative Analyst and the City Administrative Officer (CAO), to prepare any additional documents necessary to effectuate the purchase and sale of said properties. AUTHORIZE the General Manager, EWDD, with the assistance of the City Attorney, to pursue a determination that the City-Optioned, CRA/LA Parcels are “exempt surplus property” for the purpose of the Surplus Lands Act under Government Code Section 54221 (f) (1) (F) (ii); and, with such determination, no further compliance action will be required under the Act. AUTHORIZE the General Manager, EWDD, on behalf of the City, to retain consultants necessary to evaluate the proposed Marlton Square development; ACCEPT up to $300,000 from Hudson Pacific Properties for the reimbursement of consultant services including, but not limited, to real estate advisory services, appraisals, environmental conditions due diligence and review, and any other associated project-related consultant costs to the City. AUTHORIZE the Controller to: Accept and deposit up to $300,000 from Hudson Pacific Properties into the Economic Development Trust Fund No. 62L. Establish a new appropriation Account No. 22W5AJ, titled “Marlton Square – Hudson Pacific Properties;”; and, appropriate up to $300,000, upon presentation of proper documentation by the EWDD. Expend up to $300,000 from Account No. 22W5AJ, titled “Marlton Square – Hudson Pacific Properties,” for various consultant services related to this Project, upon presentation of proper documentation by the EWDD. AUTHORIZE the General Manager, EWDD, or designee, to prepare Controller’s instructions and/or make any technical adjustments that may be required to implement the actions approved by the Mayor and Council on these matters, subject to the approval of the CAO, and authorize the Controller to implement these instructions. INSTRUCT the General Manager, EWDD, to provide regular status updates during the ENA Process to the Municipal Facilities Committee. INSTRUCT the General Manager, EWDD, and pertinent City departments to report to the City Council with a final development agreement for consideration. AUTHORIZE the General Manager, EWDD, to make technical corrections consistent with the Mayor and Council Action on this matter.