PLANNING COMMISSION JUNE 7, 2018 PUBLIC HEARING

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1 PLANNING COMMISSION JUNE 7, 2018 PUBLIC HEARING SUBJECT: PREPARED BY: REQUEST TO REDEVELOP A COMMERCIAL PROPERTY TO INCLUDE A NINE-STORY MULTI-USE BUILDING WITH RETAIL, OFFICE, PRIVATE CLUB (AND ASSOCIATED USES) AND ART GALLERY ON A PROPERTY LOCATED AT 8920 SUNSET BOULEVARD, WEST HOLLYWOOD (THE ARTS CLUB). PLANNING AND DEVELOPMENT SERVICES DEPARTMENT (John Keho, AICP, Interim Director, PDSD) (David DeGrazia, Planning Manager, CHPP) (Jennifer Alkire, AICP, Senior Planner, CHPP) STATEMENT ON THE SUBJECT The Planning Commission will hold a public hearing and provide a recommendation to the City Council regarding: 1) Certification of the Final Environmental Impact Report, adoption of a Statement of Overriding Considerations, and adoption of the Mitigation Monitoring and Reporting Program; 2) Amendment of the General Plan Land Use Map to include the southern portion of the site in the Sunset Specific Plan land use designation; 3) Amendment of the Sunset Specific Plan to include the southern portion of the project site in the specific plan area and to amend development standards to accommodate the proposed project; 4) Amendment to the Zoning Map to incorporate the southern portion of the site into the Sunset Specific Plan zoning district; 5) Land Use Entitlements including demolition permit, development permit, conditional use permit, minor conditional use permit, and administrative permit and the recommended range and priorities of the public benefits package. RECOMMENDATION Staff recommends that the Planning Commission hold a public hearing, consider all pertinent testimony, and recommend that the City Council certify the Final Environmental Impact Report, adopt a statement of overriding considerations, approve changes to the General Plan Land Use Map, zoning map, and Sunset Specific Plan, and approve the Arts Club Project, by adopting the following resolutions: Page 1 of 18 ITEM 10.A.

2 1) Draft Resolution No. PC : A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD RECOMMENDING THAT THE CITY COUNCIL CERTIFY THE FINAL ENVIRONMENTAL IMPACT REPORT, ADOPT A STATEMENT OF OVERRIDING CONSIDERATIONS, AND ADOPT A MITIGATION MONITORING AND REPORTING PROGRAM FOR A PROPOSED MULTI-USE, OFFICE AND PRIVATE CLUB DEVELOPMENT LOCATED AT 8920 SUNSET BOULEVARD, WEST HOLLYWOOD, CALIFORNIA. (THE ARTS CLUB). (EXHIBIT A) 2) Draft Resolution No. PC : A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD RECOMMENDING THAT THE CITY COUNCIL AMEND THE GENERAL PLAN LAND USE MAP TO INCLUDE THE SOUTHERN PORTION OF THE PROJECT SITE IN THE SUNSET SPECIFIC PLAN IN CONJUNCTION WITH A PROPOSED MULTI- USE, OFFICE AND PRIVATE CLUB DEVELOPMENT LOCATED AT 8920 SUNSET BOULEVARD, WEST HOLLYWOOD, CALIFORNIA. (THE ARTS CLUB) (EXHIBIT B) 3) Draft Resolution No. PC : A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD RECOMMENDING THAT THE CITY COUNCIL AMEND THE SUNSET SPECIFIC PLAN AREA TO INCLUDE THE SOUTHERN PORTION OF THE PROJECT SITE AND AMEND THE DEVELOPMENT STANDARDS FOR SITE 7-B IN CONJUNCTION WITH A PROPOSED MULTI-USE OFFICE AND PRIVATE CLUB DEVELOPMENT LOCATED AT 8920 SUNSET BOULEVARD, WEST HOLLYWOOD, CALIFORNIA. (THE ARTS CLUB) (EXHIBIT C) 4) Draft Resolution No. PC : A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD RECOMMENDING THAT THE CITY COUNCIL AMEND THE ZONING MAP TO INCLUDE THE SOUTHERN PORTION OF THE PROJECT SITE WITHIN THE SUNSET SPECIFIC PLAN ZONING DISTRICT IN CONJUNCTION WITH THE PROPOSED MULTI-USE, OFFICE AND PRIVATE CLUB DEVELOPMENT LOCATED AT 8920 SUNSET BOULEVARD, WEST HOLLYWOOD, CALIFORNIA. (THE ARTS CLUB) (EXHIBIT D) 5) Draft Resolution No. PC : A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD RECOMMENDING THAT THE CITY COUNCIL APPROVE A DEMOLITION PERMIT, DEVELOPMENT PERMIT, CONDITIONAL USE PERMIT, MINOR CONDITIONAL USE PERMIT, AND ADMINISTRATIVE PERMIT FOR A PROPOSED 131,495 SQUARE FOOT MULTI-USE COMMERCIAL DEVELOPMENT WITH, PRIVATE CLUB (INCLUDING RESTAURANT, LOUNGE, SUPPER CLUB, GUESTROOMS, AND ROOFTOP POOL AREA USES), RETAIL, CREATIVE OFFICE AND ART GALLERY USES ON THE SITE LOCATED AT 8920 SUNSET BOULEVARD (THE ARTS CLUB). (EXHIBIT E) Page 2 of 18

3 BACKGROUND A. Date of Application: December 22, 2015 B. Applicant: 8920 Sunset Boulevard, LLC C. Property Owner: 8920 Sunset Boulevard, LLC D. Location: 8920 Sunset Boulevard E. Zoning / General Plan: Sunset Specific Plan (SSP) / SSP R4B-PK / R4 F. Environmental Status: Environmental Impact Report Prepared G. Public Notices: The public hearing was advertised in accordance with the WHMC and State Law Executive Summary The applicant has requested to remove the existing commercial building and related parking area and develop the site with a new, multi-use commercial building with a floor area ratio (FAR) of 5.89, and up to 141 feet in height, including mechanical equipment, elevator overrun and pool deck restrooms on the top level. The new building will be the West Coast home to The Arts Club, a private membership club established in London in 1863 and catering to a clientele that is associated with the arts, entertainment and other creative industries. The building will also include creative office, ground floor retail, public art gallery, and 351 parking spaces in a fully subterranean, fully automated, parking garage. The design of the building is consistent with applicable goals and policies of the General Plan and Specific Plan, using elements of shape and light, and a series of fins in varying contours to create a sense of movement along all four facades. The proposed project has been evaluated pursuant to CEQA and found to have significant unavoidable impacts related to noise levels in the vicinity. These include project-level and cumulative noise impacts related to temporary construction period noise and noise from off-site mobile sources along Hilldale Avenue south of Sunset Boulevard. The project requires the southern portion of the site to be changed from an R4B-PK (multi-family residential with commercial parking overlay) zoning designation to be included in the Sunset Specific Plan. This requires changes to the General Plan, Sunset Specific Plan, and Zoning Map. The project also includes a request to amend the Sunset Specific Plan to allow for increased height and density over what is currently permitted. The project includes a package of public benefits, consistent with General Plan Land Use Policy LU-2.8. Staff is recommending conditional approval of the project. Project Location The 20,241 square foot project site consists of one legal parcel located on the southeastern corner of Sunset Boulevard and Hilldale Avenue within the City of West Hollywood. The project site includes approximately 125 feet of street frontage along Sunset Boulevard and about 160 feet of frontage along Hilldale Avenue. The project is surrounded by a mix of uses that include residential to the south, and restaurant, nightclub, retail, office, and hospitality to the north, east and west. Page 3 of 18

4 Vicinity Map of Project Site (red outline) and Surrounding Area North: South: East: West: To the north of the site, north of Sunset Boulevard, is a mix of commercial uses in low-rise buildings. These include restaurant, personal services, nightclub, bar and fitness uses. North of this commercial strip is a largely single family neighborhood located within the City of Los Angeles. To the south of the project site is a residential neighborhood zoned R4B, or high-density residential. South of Harratt Street is West Hollywood Elementary. Vehicular access to this area south of the project site is restricted on Hilldale Avenue by a physical barricade blocking through traffic just south of the project site. East of the project site, immediately adjacent, is an existing gas station. Beyond the gas station on the east side of San Vicente Boulevard is a mix of commercial uses including retail and entertainment, that is typical of the Sunset Strip. To the west of the project site is a property that has been vacant for a number of years. The site was entitled for a 165-room hotel in 1999 and is currently undergoing environmental review for a major revision to the approved design. West of this site is the 14-story 9000 Sunset office building, as well as the 14-story EDITION hotel at Sunset Boulevard and Doheny Drive, which is currently under construction. Page 4 of 18

5 The northern portion of the project site is located within the Sunset Specific Plan, and the Sunset Boulevard commercial sub-area of the General Plan Land Use Element. The southern portion of the site, comprising approximately 8,150 square feet of the property, is zoned R4B and is located within the parking (-PK) overlay district. This portion of the site has been used for commercial parking (as allowed within the PK overlay) since the site was developed with its current configuration in Project History The project was submitted in December of 2015 as the first West Coast location of the Arts Club, an institution that was established in 1863 to serve members of the Arts Community in London. Initial community meetings were held on December 8, 2015 and February 8, 2016 to inform the public of the upcoming requests and to allow the applicant and staff to hear comments from nearby stakeholders. In April of 2016, the City began the environmental analysis of the proposed building. On May 11, 2016, a scoping meeting was held to obtain comments from the public to help inform the environmental review process. The Environmental Impact Report (EIR) was published on September 28, 2017 and comments were received by the City through November 13, During that time, the City Received 15 comments on the Draft EIR. Responses to all comments received during this period are included in the Final EIR (Exhibit G). The project was reviewed by the Design Review Subcommittee on August 2, Feedback from the subcommittee was generally positive. Concerns were raised regarding the illumination of the building, and the potential for overspill of lighting into the residential neighborhood to the south. In response, the applicant clarified that all lighting on the exterior façade is provided by dimmable LED light strips. Each façade of the building will be independent, and should any portion require dimming or shutting off, this could be easily accommodated. Conditions 8.4 through 8.6 have been added to Draft Resolution No. PC to ensure that lighting conditions do not impact the residential uses adjacent to the project. Specifically, light levels will be controlled and monitored to confirm that illumination does not exceed 1.0 foot candles at any adjacent residentially zoned property line following project completion. In addition, the Director of Planning and Development Services has the authority to require that the lighting be dimmed or turned off if it proves to be a nuisance to the public. Comments were also made in the subcommittee meeting regarding treatment of the south-facing façade, which is significantly larger in scale than the residential building to the south of the site. The applicant has responded by proposing a landscaped green wall planted with creeping fig facing the residences to the south. Balconies on the project have been proposed with planting area buffers to protect privacy of the residents to the south. The tallest portions of the building are the ancillary uses and mechanical equipment rooms on the ninth level. This portion of the structure is located a minimum of 30 feet from the southern edge of the building, with the bulk of this area more than 50 feet away from the southern edge. On May 24, 2018, the applicant submitted a revised design for the project. The new design includes largely the same architectural character, but the northern façade, along Sunset Boulevard, has been angled back away from the street. The overall design idea, materials, details, and general massing remains largely the same as what was seen in Page 5 of 18

6 the Subcommittee meeting. The project discussed in this staff report and the attached draft resolutions reflects the revised project. The original project submittal included approximately 131,418 square feet for a total FAR of This project was studied in the environmental impact report (EIR). However, as mentioned above, the applicant has revised the project to eliminate approximately 9,264 square feet of club space and approximately 121 square feet of creative office space, for a total project square footage of 119,196 and a total project FAR of The revised project design features a very similar architectural expression, with the Sunset Boulevard facade of the building stepped back at a slant toward the upper floors of the building. The changes to the project design and massing have also allowed the applicant to eliminate the need for an emergency helistop on the roof of the building. The revised project has been reduced with respect to density, and the uses contained within the project have been altered as shown in the table below: Use Category Original Project Revised Project Net Change Retail 6,853 6,853 0 Art Gallery 2,192 2,192 0 Creative Office 46,069 45, Arts Club 64,712 52,611-12,101 Parking Spaces 354 total spaces 351 total spaces -3 spaces Page 6 of 18

7 The Arts Club was analyzed for trip generation and parking based on a cap of 7,000 members. This membership cap has not changed with the reduction in project square footage. Therefore, even though the area for the Arts Club was reduced by approximately 12,000 square feet (plus an additional 2,600 square feet of outdoor deck and terrace areas), the analyses for traffic and parking would not change. Because the revised project is slightly smaller and less intense than the project that was studied in the EIR (Arts Club notwithstanding), the analysis presented in the EIR would remain sufficient to identify any potential impacts to the environment. New information added to an EIR is not significant unless the EIR is changed in a way that deprives the public of a meaningful opportunity to comment upon a substantial adverse environmental effect of the project or a feasible way to mitigate or avoid such an effect that the project proponents have refused to implement. The conclusions in the EIR are supported by substantial evidence in the record as described in detail in Chapter IV of the Draft EIR. This evidence includes analyses for each impact area based on the project description and data related to the size, density, and intensity of the project. For each impact area analyzed, overall reduction in the density and intensity of the project would either decrease the potential for significant impacts to the environment or have no effect. Therefore, pursuant to the CEQA Guidelines, recirculation of the Draft EIR is not required. Public Comment Staff has received ten letters from the public for inclusion in the Planning Commission packet at the time of publication. Nine of the letters express general support for the Arts Club and the project as a whole. Some of these also provide comment on the potential use of the public benefits contributions toward seismic retrofit programs as opposed to support of arts and arts education. One letter was submitted in opposition to the project, citing the height, density, and lack of a music venue that would embrace the character and history of the Sunset Strip. These are included as Exhibit F. ANALYSIS Project Description The proposed project includes eight full floors, and one additional level of mechanical space, elevator overruns and pool deck restrooms for a total of nine stories. Below ground, the project includes six levels of fully automated parking with 351 spaces. The project s Sunset Boulevard frontage is made up of approximately 6,853 square feet of ground-floor retail, which will activate this stretch of Sunset Boulevard, and ensure that the project meets the City s goals for pedestrian orientation (General Plan Land Use Goal LU-4). The ground floor will also include approximately 2,192 square feet of public art gallery, which is part of the proposed public benefits package. This space will be fully operated by the applicant, including staffing, maintenance, and curation. However, curation and programming will be carried out in cooperation with the City s Arts Division. Including the art gallery on the site helps the City meet General Plan Human Services Goal HS-2 which call for support and encouragement of arts and culture in West Hollywood. The ground floor will also include approximately 2,270 square feet devoted to the lobbies of both the creative office and the Arts Club spaces in the upper floors of the building. Page 7 of 18

8 Levels two through four of the proposed building will be comprised of approximately 45,888 square feet of creative office space. The office area would be accessed through a small lobby entrance on the eastern side of the Sunset Boulevard façade. This is a good location for the office entry, since it won t interfere with the pedestrian orientation of the retail frontage on Sunset Boulevard. Creative office is a use that is in high demand in the region and will contribute to employment in the area. This will help achieve General Plan Economic Development Goal ED-2 which is to expand the City s tax base to support fiscal stability. Creative office will cater to industries that will help the City meet the SSP Goal of strengthening the City s economic base through retention, expansion, and attraction of key industries (Goal II), and the SSP objective of encouraging development that accommodates firms associated with the creative industries by permitting additional height and density on larger commercial parcels that are easily accessed by automobile traffic (Area 7, Objective 4). The creative office area did not change substantially with the May 24, 2018 redesign of the project. This use was reduced approximately 121 square feet. Therefore, analysis of the traffic generated by this use would not change substantially, and other impact analyses that are based on these numbers, such as air quality, would also remain largely the same, or slightly less. The parking requirement for the creative office portion of the building would also not change as a result of the redesign. Above the creative office levels, the building will house the Arts Club in levels five through nine. As described above, the Arts Club is a private club that caters to members of the arts and creative industries. The club will occupy approximately 54,200 square feet with areas devoted to lounges for members, restaurant areas, supper club, ten guest rooms, and a pool deck on the roof. The Arts Club area also includes a 1,641 square foot screening room located on a subterranean mezzanine level between levels B1 and B2. Location of this exclusive institution on the Sunset Strip would help attract other creative industries to the area, serving to help the City implement goals in the General Plan related to encouraging the arts and entertainment industries in West Hollywood (General Plan Goals LU-15, ED-5, and HS-2). The Arts Club membership for this location will be capped at 7,000 members. This location of the club will not offer any reciprocal benefits for members of other clubs, and guests are restricted. The Arts Club was the use most affected by the May 24, 2018 redesign of the building, since most of the area that was lost was in the upper floors. However, the membership cap remains the same. Traffic generation and parking for the Arts Club component was based on membership rates, rather than square footage, so trip counts and parking requirements related to the club use did not change as a result of the redesign. The project includes a total of 351 parking spaces located entirely within a subterranean parking structure. The structure will be fully automated, with three turning lift bays to take cars to the parking levels, and five parking spaces located on the first level for vehicles that cannot be accommodated by the automated design. The entrance to the parking will be from Hilldale Avenue only, on the southern portion of the site, just north of the bollards closing Hilldale to through traffic. The first level of the subterranean parking area will also accommodate all truck traffic and loading. Vehicles entering the parking area will be served exclusively by an on-site valet, and all vehicle drop off and pick up will take place within the structure. Page 8 of 18

9 The automated parking system is designed to use two sets of lifts for the vehicles. The three turning lifts on the first level will take and retrieve vehicles. Two additional lifts will operate between levels B2 through B6 to increase efficiency in moving incoming and outgoing vehicles during peak usage times. According to the manufacturer of the automated parking system, the system is designed to absorb up to 165 inbound cars per hour using six valet operators. When accounting for vehicle retrievals during peak demand periods, the system could absorb 86 cars per hour and retrieve 113 cars per hour using six valet operators, which is sufficient to accommodate peak hour arrivals and departures identified in the traffic study and would therefore avoid queuing onto Hilldale Avenue. CEQA The Planning Commission must make a recommendation to City Council regarding the adequacy of the environmental review. Adequacy is defined by the CEQA Guidelines as having been prepared with a sufficient degree of analysis to provide decision-makers with information which enables them to make a decision which intelligently takes account of environmental consequences (CEQA Guidelines Section 15151). This recommendation will help the City Council with its overall determination on the project. The DEIR was prepared to evaluate any potential environmental effects that would result from development of the proposed project and to inform the public and decisionmakers of these potential effects. It evaluates and discloses potential impacts, the severity of said impacts, any mitigation measures that could alleviate identified impacts, and finally any alternatives to the project that could eliminate or significantly reduce identified significant and unavoidable environmental impacts. This DEIR evaluated the proposed project based on the following impact categories: Aesthetics, Air Quality, Geology and Soils, Greenhouse Gas Emissions, Hazards and Hazardous Materials, Land Use, Noise, Public Services, Traffic, Utilities and Service Systems, and Energy. During the Initial Study process the following impact categories were found not to have the potential for impacts related to this project: Agriculture, Biological Resources, Cultural Resources, Mineral Resources, Population and Housing, and Recreation. As described briefly above, the proposed project was evaluated pursuant to the California Environmental Quality Act (CEQA). Based on the analysis, it was determined that the proposed project, with all feasible mitigation incorporated, would result in the following significant and unavoidable impacts to the environment: 1. Project-level on-site noise and vibration impacts (associated with human annoyance) from on-site construction activities; 2. Cumulative on-site noise impacts in the event that the construction of the project occurs simultaneously with the construction of a proposed hotel development immediately west of the site across Hilldale Avenue due to the presence of sensitive receptors immediately south of the project site; Page 9 of 18

10 3. Project-level noise impacts when compared to existing conditions (rather than future conditions) due to off-site automobile traffic along Hilldale Avenue south of Sunset Boulevard; and 4. Cumulative noise impacts during operation due to off-site traffic along Hilldale Avenue south of Sunset Boulevard. A Draft Environmental Impact Report (DEIR) was prepared and circulated for a period of 46 days from September 28, 2017 to November 13, Noise The proposed project would result in significant and unavoidable impacts related to ambient noise levels above levels existing without the project. As described above, these impacts include both construction period on-site noise and operation off-site noise from mobile sources (i.e. automobile traffic). There is no feasible mitigation that would reduce this impact below a level of significance. Mitigation measures have been proposed to reduce the levels of construction noise, but will not diminish the noise to a less than significant level. It is important to note that the construction period noise impacts will be temporary, and would accompany any construction project on the site. The identified cumulative construction period noise impact would occur only in the event that the hotel project located immediately to the west of the project site, at 8950 Sunset Boulevard, were to be constructed simultaneously with the proposed project. With respect to the project-level off-site traffic noise impacts, this impact is only found when the data is analyzed with the project added to existing conditions at the time of the notice of preparation in When the analysis is performed with the project added to the anticipated conditions at the build-out year, the impact is less than significant due to an increase in ambient noise in the vicinity that will occur over time whether the project is built or not. CEQA Guidelines require that the existing-plus-project analysis is included. However, it is important to note that the proposed project does not currently exist, and will only ever exist in the future, under future conditions. Traffic The proposed project was evaluated to determine if any significant impacts to traffic would result from either the construction or operation of the new development. Trip generation rates were identified using the industry standard Institute of Transportation Engineers (ITE) Trip Generation Manual, 9 th Edition for the retail, art gallery and creative office uses. However, the private club is not represented in the ITE manual. Therefore, trip generation for the private club use was estimated using a conservative approach based on empirical site-specific data collected at the London location of the Arts Club. Recognizing that travel modes in London is very different as compared to Los Angeles, the empirical person-trip data was calculated based on 7,000 membership club similar to the membership cap for the proposed West Hollywood site. The persontrips were then further disaggregated into number of vehicular trips which reflects modal splits representative of Los Angeles. Taking into account membership levels, anticipated arrival and departure patterns for members, guests, and employees, typical Page 10 of 18

11 events, etc., this data was then used to calculate anticipated trip generation, accounting for differences between the London location and the West Hollywood location. For example, many more members, guests, and employees will travel to the West Hollywood location in private vehicles, and each vehicle may have fewer people in it. In addition, the number of employees will differ from the London location. All of these factors were considered and analyzed in the traffic study. The Traffic Study evaluated the potential project-generated traffic impacts on the street system surrounding the project site as compared to existing conditions (year 2016) and future conditions (year 2020). Intersection traffic impacts for the proposed project were evaluated for typical weekday morning (7:00 A.M. to 9:00 A.M.) and afternoon (4:00 P.M. to 6:00 P.M.) peak periods. A total of eight intersections in the vicinity of the project site were selected for detailed traffic analysis. The analysis of future year traffic forecasts was conducted for assuming full buildout of the proposed project in 2020 and is based on projected conditions in year 2020 both with and without the addition of project traffic. Given the time between the original traffic study and the project hearings, a supplemental analysis was done to consider a build-out year of 2021 as well. This supplemental analysis confirmed that no new impacts were identified as a result of a delayed build-out. The data in the traffic study support the conclusion that the proposed project will not result in any significant impacts with respect to traffic. The requirement for a construction period mitigation plan, described as Project Design Feature J-1, is included in the mitigation monitoring and reporting program to ensure that construction-related traffic, access and safety, bus/transit, and parking impacts would be less than significant. Operational impacts to intersection levels of service; the regional transportation system; emergency access; bicycle facilities, pedestrian facilities, and public transit; and parking would be less than significant. No mitigation measures are necessary with respect to traffic, access, and parking. Project Mitigation Mitigation measures are included in the MMRP pertaining to Seismic Safety and Construction Period Noise and Vibration. These measures help to reduce impacts of the project on the environment to less than significant levels with the exceptions noted above. See the Final Environmental Impact Report (Exhibit G) for a full discussion of the potential impacts and proposed mitigation. Alternatives Consistent with CEQA Guidelines (Section ), the DEIR includes consideration of a reasonable range of alternatives to the proposed project. One of the purposes of identifying Alternatives in an environmental impact report is to identify whether changes to the project description or parameters could potentially avoid or significantly lessen a significant unavoidable impact. Since some of the impacts identified in the report are related to construction period noise and vibration, the Alternatives section attempted to identify project alternatives that would eliminate construction period noise and vibration. However, given the existing conditions, this would require that no substantial construction activities of any kind occur on the project site. Construction period noise and vibration would be expected to occur with the construction of any new project on Page 11 of 18

12 the site that involves demolition of the existing structure, excavation of subterranean parking, and construction of a new building. For this reason, it was infeasible to identify a project alternative that met most of the project objectives and avoided any significant impacts related to noise and vibration. The EIR studied four alternatives: 1. No project / No build Alternative: This alternative studies the potential impacts of the site staying as-is. This is a required alternative pursuant to CEQA. Since the No Project alternative involves no new construction, it would not result in the noise and vibration impacts of the proposed project. However, it would also not achieve any of the project objectives. 2. Reduced Density & Height / Eight-story Alternative: This alternative involves largely the same project, with a lower project height of eight stories rather than nine, and a slightly reduced above-ground massing. The uses contained in the building would not change in type or size, and the Arts Club would not be reduced in membership cap. Therefore, the impacts would be similar to the proposed project. Because the project would still involve significant construction, the impacts related to noise and vibration during construction would remain as well as the cumulative off-site traffic noise impact. 3. Reduced Density & Height / Seven-story Alternative: This alternative would reduce the project another level, resulting in a slightly smaller project than Alternative 2. This alternative would reduce the office use by approximately 13,000 square feet, and reduce the Arts Club area by approximately 16,000 square feet. All other uses would remain similar. Because the project would still involve significant construction, the impacts related to noise and vibration during construction would remain as well as the cumulative off-site traffic noise impact. 4. Office / Three-story Alternative: This alternative would involve significant reductions in the project s size and scope. The Arts Club component, the retail area, and the art gallery would all be eliminated, and a three-story office building would be constructed. This alternative would result in an FAR of 1.5 and a height of 40 feet, both consistent with the current Sunset Specific Plan designations. As a considerably smaller project with respect to massing and intensity, the relative impacts would be reduced as compared with the proposed project. However, since a substantial building would be constructed with subterranean parking, this alternative would not avoid or significantly reduce impacts related to noise and vibration during the construction period. Alternative 4 would also fail to eliminate the cumulative off-site traffic noise impact. Since the significant impacts associated with the proposed project cannot feasibly be mitigated and cannot be avoided by the adoption of a feasible alternative, staff recommends the adoption of a Statement of Overriding Considerations. This is a set of findings illustrating that the project meets the City s goals and that the City finds that the merits of the project outweigh the potential impacts on the environment. Generally, the project will encourage uses on the Sunset Strip that are consistent with the City s goals for that area. The Arts Club will attract creative industry leaders to West Hollywood and help maintain the Strip as an arts and entertainment center of the region. The creative office portion of the project fits nicely with the private club, offering in-demand office Page 12 of 18

13 space for art-, entertainment-, and design-related businesses. The project offers exceptional design and includes public benefits such as an on-site public art gallery. The impacts related to the construction of the building are temporary and would occur regardless of the type or use of the building being built. All feasible mitigation measures are being incorporated to help reduce these impacts as much as possible. Therefore, staff recommends that the Planning Commission find that the benefits of the proposed project sufficiently off-set the potential significant impacts that it will cause (Exhibit A). General Plan, Specific Plan, and Zoning Amendments The project is proposed on a single site that spans the Sunset Specific Plan and R4B- PK zoning districts. In order to develop this site in a cohesive manner under one set of development standards, the applicant is seeking to incorporate the southern portion of the lot into the Sunset Specific Plan. This requires changes to both the General Plan land use map and the Sunset Specific Plan and the Zoning Map. In addition, the applicant is requesting increased density and height on the subject site over what is currently allowed. Under the 1996 Sunset Specific Plan, this site (7-B) is given a maximum floor area ratio (FAR) of 1.5 and a maximum allowed height of 40 feet. The applicant is currently requesting to increase the FAR for this site to 5.89 and to increase the total allowed height to 141 feet as measured from Sunset Boulevard. In order to amend the General Plan, Specific Plan, and Zoning Map, the City Council must find that the proposed changes are consistent with the overall goals, objectives, and policies of the General Plan and Specific Plan. The floor area and height of the proposed project exceed what is currently permitted for the site. However, this increased height is consistent with existing development in this portion of the City. The Sunset Strip has long been identified as a location within West Hollywood that can be suitable for increased height and floor area. Buildings constructed prior to incorporation, such as the 9000 Sunset office building, as well as new construction, such as the EDITION Hotel at 9040 Sunset, demonstrate that increased density is appropriate for the stretch of Sunset Boulevard between San Vicente Boulevard and Doheny Drive. The Goal for the Sunset Boulevard Commercial Subarea in the General Plan is to maintain Sunset Boulevard as the highest intensity area of West Hollywood and help it maintain its role as a regional, national, and international destination for entertainment, and the primary economic engine of the City. The proposed project works toward achieving that goal by introducing an iconic design, which will be occupied by two primary uses: creative office and The Arts Club. Creative office is specifically encouraged in this portion of the City as described in policy LU-15.1 Continue to promote a great diversity of uses on Sunset Boulevard including Offices catering particularly to entertainment and creative businesses. In addition, providing the first West Coast location for The Arts Club will contribute to maintaining the Sunset Strip as an international draw for the arts and entertainment industries. Therefore, the changes to the General Plan Land Use Map, Sunset Specific Plan, and Zoning Map to include the southern portion of the property in the Sunset Specific Plan area, and the project itself, are consistent with the General Plan. Page 13 of 18

14 The proposed change to the Sunset Specific Plan is consistent with the intent of the Specific Plan Goals and Objectives. The site is located on SSP site 7-B. While this site is not designated as a target site for additional height and density, these target site designations were made in Much has changed on the Sunset Strip in the last 22 years, so it is appropriate to examine how the project is consistent with the overall vision that the City has for the Sunset Boulevard area. In addition, the SSP includes flexibility for developments that are consistent with the urban design, development feasibility, accessibility and circulation and use potential criteria for target sites (p. 55 Expanded Target Sites Options). The proposed development is consistent with the Area 7 objectives that encourage well designed in-fill projects, pedestrian orientation at the street level, and developments that cater to the creative industries. The additional height requested for this site is consistent with the intent to step down in height on either side of the 9000 Sunset building. The proposed project will be approximately 60 feet lower in height than the 9000 Sunset office building at Sunset and Hammond. Ground-level retail along Sunset Boulevard, and a widened, enhanced sidewalk and public space is consistent with the pedestrian and streetscape requirements for Area 7. The use mix, consisting of Retail, Art Gallery, Creative Office, and The Arts Club, is consistent with the uses that are encouraged in Area 7 as well as throughout the Sunset Specific Plan Area. The project has been conditioned to rebuild the cul-de-sac on Hilldale Avenue, consistent with transportation recommendations in the SSP. The request to amend the SSP would result in a project that is significantly larger than what would be allowed under the current development standards. However, it would facilitate implementation of the General Plan s vision of the Sunset Strip. Development of a landmark-design building to be home to a high-profile institution such as the Arts Club has the potential to attract additional arts and entertainment oriented uses to the area. A building designed to the current standards would not be able to achieve the same level of draw to the region, and would fail to achieve the vision of the Sunset Strip as a regional, national, and international destination for entertainment and a regional hub and innovator in the fashion, arts, and design sectors. Page 14 of 18

15 Project Design The massing of this proposed building extends to the maximum envelope with 5ft setbacks on the East and South and 15ft on the North and West (street facing facades). The 9th floor massing is located toward the center of the site, to provide a large terrace on the southern portion of the 8 th level roof. As described above, the building design has changed since the Design Review Subcommittee reviewed this project. While the overall design components and architectural expression remain largely the same, the northern façade of the building is stepped back at an angle, reducing overall building mass and increasing the visual interest of the design. Overall, the design of the building is favorable, both as an urban and architectural landmark. The façade variation created by changes in the size and shape of terraces provides an attractive composition, and the wave pattern created by rotating and varying the size and shape of the panels blends well with the overall massing. The lattice design for the windows adds a level of complexity, while not overwhelming the composition. Additional details of the vertical panels or fins, as well as the lattice design of the windows must be provided prior to issuance of building permits. These are details that are typically developed in later stages of a project design. A condition has been added to the entitlement resolution requiring that detailed drawings be provided of all unique elements of the project design. A condition has also been added to require that all materials and details be of high quality, equal to or better than what is shown on the May 24, 2018 project plans (Exhibit L). Page 15 of 18

16 The proposed project is substantially larger than any of the buildings immediately adjacent to it; however it is not out of character with the overall development along Sunset Boulevard, particularly in this portion of the City. Similar transitions in scale between commercial and residential developments along Sunset can be seen on the southern sides of the London West Hollywood hotel as well as on the southern side of the hotel that is currently under construction at 9040 Sunset (EDITION Hotel). Both of these buildings are taller than the proposed project, and the residential buildings to the south of them are lower in scale, creating a greater disparity than what would result from this project. The south façade of the proposed project has been designed to avoid privacy intrusion by providing planter buffers along all terrace edges. The wall immediately facing the residential to the south of the project will be planted with creeping fig to soften its appearance. The project was analyzed for potential shade and shadow impacts to the surrounding area. While these potential impacts would not be considered significant impacts to the environment pursuant to CEQA (PRC Section 21099), shade and shadow diagrams were provided for informational purposes. These diagrams show that the majority of the project s shade would be cast on commercial uses including the vacant commercial property immediately to the west of the site during the morning hours, Sunset Boulevard roadway (commercial uses across Sunset to the north would be in shadow during the middle part of the day on the Winter Solstice only). Afternoon and early evening shade would be cast to the east of the site, and would mainly affect the commercial properties to the east, including the gas station on the corner of San Vicente Boulevard and Sunset Boulevard, and the single-story commercial structure immediately east of the site. During the Summer Solstice, the shadow would also affect the residential properties south of the gas station, along San Vicente Boulevard beginning between 4 p.m. and 5 p.m. On the Winter Solstice, shadow would extend to residential buildings north of Sunset Boulevard, along Clark Street beginning between 3 p.m. and 4 p.m. The City of West Hollywood does not have an adopted shade and shadow threshold; therefore, City of Los Angeles criteria are typically applied to determine impacts. Consistent with City of Los Angeles CEQA thresholds, an impact would be significant if shadow-sensitive uses (i.e. uses that typically have a reasonable expectation of sunlight and warmth from the sun, such as outdoor dining, residential uses, public open spaces, etc.) would be shaded by project-related structures for more than three hours between the hours of 9:00 a.m. and 3:00 p.m. Pacific Standard Time (between late October and early April), or for more than four hours between the hours of 9:00 a.m. and 5:00 p.m. Pacific Daylight Time (between early April and late October). Therefore, as described in detail in Section IV.A of the Draft EIR, even if the typical thresholds for significance were applied in this case, there would be no shade-sensitive uses in shadow for a long enough period of time to cause a significant impact. As mentioned above, however, shade and shadow are not considered when determining CEQA impacts for this project. Page 16 of 18

17 Sustainability Features The proposed project is designed to achieve a rating of LEED Gold or equivalent, using a number of sustainable design features. Studies have shown that, on average, buildings that are designed to a LEED Gold standard use approximately 20% less energy than non-leed buildings. The project is conditioned to provide staff with a checklist and supporting documentation indicating points that achieve a minimum LEED rating of Gold. The LEED checklist must be prepared, signed, and dated by the project LEED accredited professional. In addition, the project has been designed to achieve a minimum of 75 points on the City of West Hollywood Green Building Checklist. Green building features include items such as sustainable building materials, water and energy efficient plumbing and fixtures, installation of photovoltaic panels, and interior finish materials that are sustainable and promote indoor air quality. Public Benefits The proposed project includes significant benefits to the City consistent with the framework included in General Plan Land Use Policy 2.8 for consideration of increases in permitted FAR and height. An analysis was performed to determine the increase to land value that would result from increasing the height and FAR on the site. This was conducted using the City s public benefit framework tool that was adopted earlier this year. This analysis established an estimated $7.4 Million as a target for the public benefit component. The applicant is proposing a public benefits package that consists of three parts: 1. The applicant proposes to build a 2200 square foot gallery space that is programmed and staffed by the applicant for a period of 25 years. The gallery space will be open to the public, free of charge, and will be curated in coordination with the City of West Hollywood Arts Division. The Arts Division is aware of the proposed gallery and supports having a public art gallery in this location. The estimated cost of staffing and maintaining the art gallery approximately $10.1 million. This figure does not include the cost of building the space. 2. The applicant proposes to contribute $1 million in support of the arts in West Hollywood over a period of 10 years. 3. The applicant proposes to provide an additional cash public benefit payment of $1 million to the City. The total value of the proposed public benefits package is approximately $12,100,000. Ultimately, the City Council will prioritize the specific public benefits the applicant will be required to provide or contribute to; however, the information is provided for the Commission and the public to understand how the project meets the intent of the Land Use Policy LU-2.8. Page 17 of 18

18 RECOMMENDATION The proposed project is larger than what is currently allowed on the subject site, and would result in significant and unavoidable environmental impacts related to noise, as described above. However, the project would also bring uses to the Sunset Strip that are specifically prioritized in the General Plan and Sunset Specific Plan. The proposed building is well-designed, and would be constructed with high quality materials to establish a landmark building on the corner of Sunset Boulevard and Hilldale Avenue. The project would intensify an underutilized property in a highly sought-after portion of not only West Hollywood, but the Los Angeles region. The project would contribute to improving the pedestrian experience along Sunset Boulevard by offering a pedestrian plaza with increased setbacks at the corner of Hilldale Avenue and Sunset Boulevard. While the building is substantially larger than the developments immediately adjacent to it, it is not out of context or character with other buildings along this portion of Sunset Boulevard; namely, the 9000 Sunset building, the London West Hollywood Hotel, and the hotel that is currently under construction at 9040 Sunset Boulevard. In addition, the increased height and density will facilitate a development that is consistent with the vision of Sunset Boulevard as a hub of creative industries, arts, and entertainment. The Arts Club has the potential to generate momentum, attracting additional creative industries to the Sunset Strip. In light of the above, staff finds that the proposed project, with the conditions recommended in Resolution No. PC , would be a positive addition to Sunset Boulevard and to the City of West Hollywood. EXHIBITS A. Draft Resolution No. PC (Certification of EIR) B. Draft Resolution No. PC (General Plan Amendment) C. Draft Resolution No. PC (SSP Amendment) D. Draft Resolution No. PC (Zoning Map Amendment) E. Draft Resolution No. PC (Project Entitlements) F. Correspondence from Public G. Final EIR (Available by Hyperlink) H. Radius Map I. Landscaping Plan J. Green Building Points Spreadsheet K. Shade and Shadow Diagrams L. Project Plans Dated May 24, 2018 Page 18 of 18