0220-05651-0000TRANSMITTAL

ro r>ATE QOUNt i FILE SOThe City Council

9/19/19r.ojun. DISTRICTFROM

The Mayor 13

QUIMBY FEES - REFUND TO CIM FUND III, L.P,

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V (Ana Guerrero) fori

ERIC GARCETTI MAYOR

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CAOiHU-d

REPORT from

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

Date: CAO File No.Council File No. Council District: 13

0220-05651-0000September 9, 2019

The MayorTo:

From: Richard H. Llewellyn, Jr., City Administrative Officer'

Letter to the Mayor from the Board of Recreation and Parks Commissioners dated August 22, 2019; referred by the Mayor on August 26, 2019

Reference:

QUIMBY FEES - REFUND TO CIM FUND III, L.P.Subject:

RECOMMENDATION

That the Council authorize the President and Secretary of the Board of Recreation and Parks Commissioners to issue $1,253,855 in Quimby refund to CIM Fund III, L.P.

SUMMARY

At its meeting of August 7, 2019, the Board of Recreation and Parks Commissioners (BOARD) approved the refund claim (Claim No. 145800) from CIM Fund III, L.P. (Developer) for a refund of Quimby Fees totaling $1,253,855.

The Los Angeles Municipal Code (LAMC) Section 17.12 requires most residential developments to either dedicate park land or pay in-lieu fees (Quimby Fees) as a condition of recording a final subdivision map or a zone change. The Developer paid the Department of recreation and Parks (Department) $1,253,855 on July 16, 2012 for a residential projects located at 5929-5945 West Sunset Boulevard and 1512-1540 North Gordon Street (Sunset-Gordon Project).

LAMC 17.07 (N) requires the Department to process a refund of Quimby Fees if the final tract map is not recorded. The Department of City Planning has confirmed that all applications for a Final Map recordation associated with the Quimby Fee refund request have been terminated.

The Board previously approved the allocation $1,253,855 in Quimby Fees paid by the Developer to the Hollywood Recreation Center - Modern Gymnasium (PRJ21112) Project. The Quimby Fees paid by the Developer will be deallocated from this project to issue the requested refund.

CAO File No.

0220-05651-0000PAGE

2

In December 2018, the City Council approved a new zoning and land use designations for the Sunset-Gordon Project (C.F. 08-1509-S2 and C.F. 08-1509-S3), which supersedes the terminated cases. Although the Developer is due a refund of $1,253,855 for the terminated cases, the Developer paid $2,101,073 in Quimby Fees for the new map (VTT-74172) on June 27, 2019.

FISCAL IMPACT STATEMENT

The Department of Recreation and Parks received $1,253,855 in Quimby Fees and will be required to return such fees to the payer. There is no impact to the General Fund. To the extent applicable, the recommendation above complies with the City’s Financial Policies in that one-time revenue will be used to meet one-time expenditures.

RHL:JSS:08200024c

City of Los AngelesDEPARTMENT OF RECREATION AND PARKS

MICHAEL A. SHULL GENERAL MANAGER

ANTHONY-PAUL (AP) DIAZ, ESa EXECUTIVE OFFICER &

CHIEF OF STAFF

California

BOARD OF COMMISSIONERS

SYLVIA PATSAOURAS PRESIDENT

VIOCI ISRAELASSISTANT GENERAL MANAGERLYNN ALVAREZ

VICE PRESIDENTSOPHIA PlWA-CORTEZ

ASSISTANT GENERAL MANAGERNICOLE CHASE PILAR DIAZ

JOSEPH HALPER CATHIE SANTO DOMINGOACTING ASSISTANT GENERAL MANAGERERIC GARCETTI

MAYORIRIS L DAVISBOARD SECRETARY (213) 202-2640 (213) 202-2633 FAX (213) 202-2614

August 22, 2019

Honorable Eric Garcetti, Mayor City of Los Angeles Room 303, City Hall

Attention: Ms. Heleen Ramirez

Dear Mayor Garcetti:

In accordance with Executive Directive No. 3, attached herewith is a proposed refund claim from CIM FUND III, L.P. for a refund in the amount of One Million, Two Hundred Fifty-Three Thousand, Eight Hundred Fifty-Five Dollars ($1,253,855.00) in Quimby Fees.

Also attached is Board Report No. 19-158, which was adopted by the Board of Recreation and Park Commissioners at its Regular Meeting held on August 7, 2019. After your review and recommendation, the proposed Agreement will be submitted to the Board for final action.

If you have any questions with regard to the proposed refund claim, please contact Ms. Meghan Luera, Management Analyst, Planning, Maintenance and Construction Branch, at (213)202-2669.

Very truly yours,

BOARD OF RECREATION AND PARK COMMISSIONERS

forIRIS L. DAV

Commission Executive Assistant II

Attachments

Meghan Luera, Management Analyst, Planning, Maintenance ana Construction Branch (w/out attachments)

cc:

PARK PROUD LA221 N, FIGUEROA STREET, SUITE 350, LOS ANGELES CA 90012 - www.LAPARKS.ORG

AUG 07 2019^

BOARD OF RECREATION AND PARK COMMISSIONERS 19-158BOARD REPORT NO.

August 7, 2019DATE C.D. 13

BOARD OF RECREATION AND PARK COMMISSIONERS

SUBJECT: QUIMBY FEES - REFUND FOR VTT-68501 AND RELATED CASE CPC-2007­51 5-GPA-ZC-HD-CU-CUB-ZV-ZAA-SPR-SPE-SPP

APDIaz

H. FuJHa

V. Israel

i. S. Pirta-Cortez ________

C. Santo Domingo. _D&N. Williams

General Manager

X DisapprovedApproved Withdrawn

RECOMMENDATIONS

Approve the refund claim from CIM FUND III, L.P. for a refund in the amount Of One Million, Two Hundred Fifty Three Thousand, Eight Hundred Fifty-Five Dollars ($1,253,855.00) in Quimby Fees, in accordance with the detail set forth in this Report, subject to the approval of the Mayor and City Council;

1.

2. Direct the Board of Recreation and Park Commissioners (Board) Secretary to transmit this report to the Mayor in accordance with Executive Directive No. 3;

Approve the deallocation of One Million, Two Hundred Fifty Three Thousand, Eight Hundred Fifty Five Dollars ($1,253,855.00) in Quimby Fees, currently allocated to the Hollywood Recreation Center - Modern Gymnasium (PRJ21112) Project;

3.

4. Authorize the Department of Recreation and Parks’ (RAP) Chief Accounting Employee to transfer One Million, Two Hundred Fifty Three Thousand, Eight Hundred Fifty-Five Dollars ($1,253,855.00) in Quimby Fees from the Hollywood Recreation Center Account No, 89460K-HF to the Quimby Account 89460K-00;

Direct RAP’s Chief Accounting Employee or designee to, upon receipt of the necessary approvals, to issue the refund from Fund 302, Department 89, Account 89460K-00;

5.

Authorize RAP's Chief Accounting Employee to make technical corrections as necessary to carry out the intent of this Report.

6.

BOARD REPORT

NO. 19-158PG, 2

SUMMARY

RAP is in receipt of a request for refund of park acquisition and development fees paid to RAP pursuant to Los Angeles Municipal Code (LAMC) Section 17.12. A refund claim (Claim No. 145800) was filed on June 14, 2019 by the representatives of CIM FUND III, L.P. for a refund of Quimby Fees in the amount of One Million, Two Hundred Fifty-Three Thousand, Eight Hundred Fifty-Five Dollars ($1,253,855.00). The CIM FUND III, L.P. (Claimant) paid RAP One Million, Two Hundred Fifty-Three Thousand, Eight Hundred Fifty-Five Dollars ($1,253,855.00) in Quimby Fees, on July 16, 2012, for a residential project located at 5929-5945 West Sunset Boulevard and 1512-1540 North Gordon Street.

The provisions of LAMC Section 17.12 which was in effect at the time the Claimant made the Quimby Fee payment at issue required that no final subdivision map be approved or recorded unless land within the subdivision has been dedicated to the City for park or recreational purposes, and that, as an alternative to land dedication, a fee in-lieu (Quimby fee) could be paid within one year after Council approves the final map.

The provisions of LAMC Section 17.07 (N) which was in effect at the time the Claimant made the Quimby Fee payment at issue instructed RAP to process and approve refunds of Quimby fees, upon written request of the project subdivider, if the final subdivision map was not recorded. However, it did not establish any procedures relative to how a Quimby fee refund request was to be reviewed, processed, and approved by RAP, nor did it describe what documentation the refund claimant would need to provide to RAP in order to guarantee that the final subdivision map would not be recorded. Additionally, it did not require that the refund request be filed on any specific form or that it be filed by a certain date.

The City’s refund provisions and procedures for certain fees are found in LAMC Sections 22.12 and 22.13. LAMC Sections 22.12(a) and 22.13(a) authorize the head of the Department to approve refunds of tax, license fees, permit fees, or application fees without the prior approval of the City Council, if such refund does not exceed a certain monetary limit. That monetary limit is subject to adjustment at the beginning of each fiscal year and the amount of the adjustment is calculated by the City Controller. The current limit of Department head refund authority is $50,718. AH refunds request over that limit are subject to the prior approval of the City Council.

The Claimant has indicated that the map proceedings on VTT-68051 and the related case CPC- 2007-515-GPA-ZC-HD-CU-CUB-ZV-ZAA-SPR-SPE-SPP have been terminated, as detailed in a letter from the Department of City Planning (Attachment 1) confirming such termination. Thus, in accordance with LAMC 17.12 and the previous provisions of LAMC Section 17.07 (N) which was in effect at the time the Claimant made the Quimby Fee payment at issue, RAP staff recommends the approval of the claim for refund of Quimby Fees paid to RAP.

Previously, the Board approved the allocation of Six Million, Nine Hundred Ninety-Seven Thousand, Four Hundred Ninety-Five Dollars and Fifty Cents ($6,997,495.50) in Quimby Fees to the Hollywood Recreation Center - Modern Gymnasium (PRJ21112) Project (Report 17-054). The allocation of Quimby Fees to the Hollywood Recreation Center - Modern Gymnasium

BOARD REPORT

NO.19-158PG. 3

(PRJ21112) Project included One Million, Two Hundred Fifty-Three Thousand, Eight Hundred Fifty-Five Dollars ($1,253,855.00) paid by CIM FUND III, L.P.

Upon approval of this Report, One Million, Two Hundred Fifty-Three Thousand, Eight Hundred Fifty-Five Dollars ($1,253,855.00) in Quimby Fees will be deallocated from the Hollywood Recreation Center - Modern Gymnasium (PRJ21112) Project and transferred from the Hollywood Recreation Center Account No. 89460K-HF to the Quimby Account 89460K-00.

The total amount of funding available for the Hollywood Recreation Center - Modern Gymnasium (PRJ21112) Project will be Five Million, Seven Hundred Forty-Three Thousand, Six Hundred Forty Dollars and Fifty Cents ($5,743,640.50).

ENVIRONMENTAL IMPACT

The proposed action consists of a financial transaction that has no effect on the environment. Section 21065 of the California Environmental Quality Act (CEQA), as well as Section 15378, Chapter 19 of California CEQA Guidelines define “Project” as an activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Therefore, no CEQA clearance is required for this action.

FISCAL IMPACT

The approval of this Report will not have an impact on RAP General Fund.

STRATEGIC PLAN INITIATIVES AND GOALS

Approval of this Board Report advances RAP's Strategic Plan by supporting:Goal No. 7: Maintain a Diverse and Dynamic WorkforceOutcome No. 3: Excellent customer service provided to all park usersResult: RAP’s commitment to excellent customer service extends beyond the park userexperience to RAP’s interactions with the development community. Being responsiveand expeditious regarding all Park Fee and Quimby requests is paramount to excellentcustomer service.

This Report was prepared by Meghan Luera, Management Analyst, Planning, Construction and Maintenance Branch.

LIST OF ATTACHMENTS

1) Attachment 1 - Termination Letter from Department of City Planning regarding VTT-68051 and the related case CPC-2007-515-GPA-ZC-HD-CU-CUB-2V-ZAA-SPR-SPE-SPP

ATTACHMENT 1

DEPARTMENT OF CITY PLANNING

COMMISSION OFFICE <213)978-1300

EXECUTIVE OFFICES200 n. swing Street, room 525

Los Angeles, CA 90012-4801 (213)978-1271

City of Los AngelesCALIFORNIA

VINCENT P, 6ERTDNI, A(CP DIRECTOR

CITY PLANNING COMMISSION

SAMANTHA MILLMANPREIIDfMT

i11111*1;'ft

KEVIN J. KELLER, A1CP EXECUTE OFFCER

SHANA M.M. BONSTJN WPUTY DIRECTOR

TRICIA KEANE WPUTY DIRECTOR

ARTHI L VARM* AJCP DEPUTY DtftECTOR

LISA M, WEBBER, MC9 DEPUTY DIRECTOR

mVAHID KHORSAND V.CE-PRESIDEKT

DAVID HJ.AMBROZ CAROLINE CHOE

HELEN LEUNG KAREN MACK

MARC MITCHELL VERONICA PADILLA-CAMPOS

DANA M. PERLMAN

ERIC GARCETTIMAYOR

June 4,2019

Previous Owner/Applicant Sunset & Gordon Investors c/o Mark Elden 1120 Northwest Couch Street Portland, OR 97209

Case Nos: CPC-2007-515-GPA-ZC-HD-CU-CUB-ZV-ZAA-SPR-SPE-SPP, VTT-68501Address: 5929 - 5945 W. Sunset Boulevardand 1512 -1540 N. Gordon StreetPlan Area: HollywoodC.D.: 13-O'FarrelfCEQA No.: SCH-2006111135Legal Description: Lots 12-19 of BagnoliTract No. 2; Lot FR6 of the Paul and AngelReyes Subdivision

Previous RepresentativeCraig Lawson & Co., LLC c/o Peggy Trenton 3221 Hutchinson Avenue, Ste D Los Angeles, CA 90034

Current Owner/Applicant5929 Sunset Hollywood, LLC c/o Shaui Kuba, Vice President 4700 Wilshire Boulevard Los Angeles, CA 90010

Current RepresentativeCraig Lawson & Co., LLC c/o Katherine Casey 3221 Hutchinson Avenue, Ste D Los Angeles, CA 90034

TERMINATED

The current Owner/Appiicant of the properties located at 5929 - 5945 West Sunset Boulevard and 1512 - 1540 North Gordon Street has requested that Case Nos. CPC-2007-515-GPA-ZC- HD-CU-CUB-ZV-ZAA-SPR-SPE-SPP and VTT-68501 for be terminated. Case Nos. CPC-2007- 515-GPA-ZC-HD-CU-CUB-ZV-2AA-SPR-SPE-SPP (CF 08-1509) and VTT-68501 (CF 08-1509- S1) were previously approved by the City Council on July 25, 2008 and September 12, 2008, respectively. Following the City Council actions, litigation challenging the approvals resulted in the current Owner/Applicant seeking to re-entitle the project.

On December 12, 2018, the City Council approved Case Nos. CPC-2015-1922-GPA-VZC-HD- CUB-DB-SPR (CF 08-1509-S2) and VTT-74172 (CF 08-1509-S3), which established new zoning and land use designations for the subject property and supersedes the prior 2008 approvals. As such, the current Owner/Applicant has requested that the prior, superseded cases be terminated.

CPC-2007-515-GPA-ZC-HD-CU-CU B-ZV-ZAA-SP R-SPE-SPP, VTT-68501/TERMINATION LETTER Page 2

Accordingly, the Director of Planning hereby terminates all proceedings relative to Case Nos. CPC-2007-515-GPA-ZC-HD-CU-CUB-ZV-ZAA-SPR-SPE-SPP and VTT-68501, and directs that the cases be Terminated and the matter filed. If you have any questions regarding this matter, please contact Mindy Nguyen at (213) 847-3674 or mindy.nguyen@lacity.org.

Vincent P. Bertoni, AICP Director of Planning

Mindy Nguyen City Planner

Cc: Latham & Watkins LLP, c/o DJ Moore, 355 South Grand Avenue, Suite 100, Los Angeles, CA 90071-1560