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HomeMy WebLinkAbout05. PLN-17-135 - Administrative Minor ModificationSTAFF REPORT PLANNING DIVISION DATE: MAY 15, 2024 TO: PLANNING COMMISSION SUBMITTED BY: IRMA HUITRON, DIRECTOR OF COMMUNITY DEVELOPMENT SUBJECT: ADMINISTRATIVE MINOR MODIFICATIONS TO CONDITIONS OF APPROVAL FOR PLN 17-00135 LOCATION: 11022 DOWNEY AVENUE & 8310-8312 THIRD ST. ZONING: DOWNTOWN DOWNEY SPECIFIC PLAN, DOWNTOWN CORE DISTRICT (DDSP) REPORT SUMMARY On January 3, 2018, the Planning Commission of the City of Downey, approved Planning Commission Resolution No. 18–3044 approving Tentative Parcel Map No. 78275, a Site Plan Review, a Conditional Use Permit, and a Variance, thereby authorizing the conversion of the former Avenue Theater into three businesses that would provide dining and entertainment, on a property located at 11022 Downey Avenue and 8310-8312 Third Street, zoned Downtown Downey Specific Plan, Downtown Core District. The applicant has requested (Attachment A) that staff consider minor modifications to the Conditions of Approval to facilitate the completion of the project and to conform to the diminution of services to be provided at the business establishments (Attachments D through I). BACKGROUND The project was approved to be comprised of three businesses: 1) 11022 Downey Avenue, a restaurant that would include alcohol service (pursuant to a Type 47 ABC license); 8310 Third Street, a restaurant that would include alcohol service (pursuant to a Type 47 ABC license) and limited live entertainment; and 3) 8312 Third Street, a live entertainment venue that would include alcohol service (pursuant to a Type 48 ABC license). The business at 11022 Downey Avenue has recently opened as the Avenue Pizzeria with a Type 41 ABC license. The remaining two tenant spaces are nearing completion. The business located at 8310 Third Street also has an outdoor patio on the north side of the building facing Third Street. The business located at 8312 Third Street is approximately 11,000 ft.² and will operate as an exclusive dining experience with a live entertainment venue with a variety of entertainment, including live bands, customer PC Agenda Page 1 11022 Downey Avenue & 8310-8312 Third Street – Modification to PLN-17-00135 May 15, 2024 - Page 2 dancing, DJs, stand-up comedy, dinner theater shows, karaoke, life shows such as plays, operas and musicals and speaking engagements. A Type 47 ABC license is currently pending review and approval by ABC that would govern both businesses jointly located at 8310-8312 Third Street. The applicant has recently requested that staff consider minor modifications to the conditions of approval to facilitate the completion of the project and to conform to the diminution of services to be provided at the business establishments. The applicant’s request is included as Attachment A. Here is a summary of the changes in the ABC licenses and some related modifications: • Pizzeria – Type 47 (beer, wine and distilled spirits) downgraded to Type 41 (Beer and Wine) • Beso - (formerly referred to as Rockwell) – Type 48 (Public Premise/Nightclub) downgraded to Type 47 (Beer and Wine) as part of an eating establishment • Mandala (formerly Crawford) – downgraded to Type 47 (Beer and Wine) as part of an eating establishment • Removal of Variance request and rooftop terraces Other modifications are outlined in Attachment B. DISCUSSION Condition of Approval No. 5 of Resolution No. 18–3044 authorizes the City Planner to make modifications to the approved plans or any of the conditions, if such modifications shall achieve substantially the same results as would strict compliance with the said plans and conditions of approval. Based on staff’s review of the applicant’s request, and the review of the Conditions of Approval, staff has determined that the administrative modifications as requested by the applicant are reasonable and shall be granted. CONCLUSION That the Planning Commission concur the proposed modifications to the Conditions of Approval of Resolution No. 18-3044, are minor and otherwise achieve substantially the same results. ATTACHMENTS Attachment A: Letter Request for 8310-8312 Third Street to be identified and treated as one (1) establishment Attachment B: Minor modifications to the revised Conditions of Approval dated May 15, 2024 (Redlines) PC Agenda Page 2 11022 Downey Avenue & 8310-8312 Third Street – Modification to PLN-17-00135 May 15, 2024 - Page 3 Attachment C: January 3, 2018 Planning Commission Report and Adopted Resolution No. 18–3044 Attachment D: Letter describing the 10-Year Timeline of the Restoration of the Avenue Theatre Attachment E: Letter request for removal of the pylon roof sign (by way of Variance) and rooftop lounge from the CUP Attachment F: Official Notification from the SBA, CDC, and lender - Bancorp, noting a fourth (and final) extension of the loan Attachment G: Email from Mr. Ahmad Shafique emphasizing the requirement to acquire the Certificate of Occupancy no later than June 3, 2024 Attachment H: ABC letter issued May 9, 2024 with judge’s recommendation to the ABC Director for ABC license to be issued Attachment I: Original RFP issued by the City of Downey dated October 9, 2014 PC Agenda Page 3 Avenue Theatre, LLC 11022 Downey Avenue & 8010-8012 3rd Street Downey, CA 90241 May 9, 2024 Irma Huitron Community Development Director City of Downey 11111 Brookshire Avenue Downey, CA 90241 Re: Letter Request that 8010-8012 3rd Street to be One (1) Establishment Dear Ms. Huitron: This is a letter request that the City of Downey acknowledge the use of 8010-8012 3rd Street as one (1) establishment, as also recognized by the California Department of Alcohol & Beverage Control (ABC). By way of this letter request, we acknowledge and commit to establish the necessary connectivity verified by the city building official. This action will bring consistency between the ABC licensing and the C.U.P. Kindest Regards, Adrian Amosa, Principal Kirk Cartozian, Principal Avenue Theatre, LLC Attachment A PC Agenda Page 4 TENTATIVE PARCEL MAP NO. 78275, SITE PLAN REVIEW, AND CONDITIONAL USE PERMIT, AND VARIANCE (PLN-17-00135) EXHIBIT A – REVISED CONDITIONS (MAY 15, 2024) PLANNING 1)The approval of this Tentative Parcel Map No. 78275, Site Plan Review, and Conditional Use Permit, and Variance (PLN-17-00135) allows for the adaptive reuse of the former Avenue Theater to include two new restaurants and a live entertainment venue. Specifically the approved uses are as follows: a.Downey Avenue Restaurant (11022 Downey Avenue) - This 1,954 square foot restaurant is approved to operate with an ABC Type 4147 (On-Sale Beer and Wine General, Eating Place) license. Live entertainment is not permitted. Additionally, this restaurant may have a standing food rail within the public sidewalk, adjacent to Downey Avenue. b.Restaurant/Entertainment Venue (8310-8312 Third Street) – This 14,542 square foot restaurant is approved to operate with an ABC Type 47 (On-sale General, Eating Place) license. Live entertainment is permitted at the restaurant with an entertainment permit issued by the Chief of Police and as set forth in more detail hereinbelow. The restaurant shall be developed as follows: (i)Third Street Restaurant (8310 Third Street) – This 3,533 square foot portion of the restaurant is approved to operate with an ABC Type 47 (On-Sale General, Eating Place) license. Live entertainment is permitted. Additionally, authorized to include a 158 square foot outdoor patio, which is located on the north side of the building, facing Third Street is authorized. (ii)Restaurant/Entertainment Venue/Rooftop lounge (8312 Third Street) – This 11,009 square foot portion of the restaurant shall provide a venue for live entertainment as set forth in more detail herein below and in accordance with a Floor Plan approved by the Community Development Director, which shall incorporate interior access for between 8310 and 8312 Third Street for employee and a secondary interior access for customers, meeting building code requirementslive entertainment venue is approved to operate with an ABC Type 48 (On-Sale General, Public Premise) license and live entertainment. Additionally, a 2,199 square foot rooftop terrace is approved. 2)Unless specified, all conditions of approval contained herein shall apply to all businesses within the building. 3)Approval of Tentative Parcel Map No. 78275, Site Plan Review, and Conditional Use Permit, and Variance (PLN-17-00135) shall not be construed to mean any waiver of applicable and appropriate zoning regulations, or any Federal, State, County, and City laws and regulations. Unless otherwise expressly specified, all other requirements of the City of Downey Municipal Code shall apply. 4)The Owner/Applicant agrees, as a condition of approval of this resolution, to indemnify, defend and hold harmless, at Applicant's expense, City and City's agents, officers and Attachment B PC Agenda Page 5 employees from and against any claim, action or proceeding commenced within the time period provided in Government Code Section 66499.37 to attack, review, set aside, void or annul the approval of this resolution, to challenge the determination made by City under the California Environmental Quality Act or to challenge the reasonableness, legality or validity of any condition attached hereto. City shall promptly notify Applicant of any such claim, action or proceeding to which City receives notice, and City will cooperate fully with Applicant in the defense thereof. Applicant shall reimburse the City for any court costs and attorney's fees that the City may be required to pay as a result of any such claim, action or proceeding. City may, in its sole discretion, participate in the defense of any such claim, action or proceeding, but such participation shall not relieve Applicant of the obligations of this condition. 5)The City Planner is authorized to make minor modifications to the approved preliminary plans or any of the conditions if such modifications shall achieve substantially the same results as would strict compliance with said plans and conditions. 6)The business shall comply with the City of Downey’s noise ordinance and in any case, shall not exceed 65 dB. This shall not include noised that is exempt from the City’s noise ordinance. Upon receiving complaints regarding noise levels, the Director of Community Development may order the preparation of a noise study. The cost of said noise study shall be paid by the business owner. All mitigation measures identified in the noise study shall be implemented and become part of this Conditional Use Permit and shall have the force of conditions of approval. 7)The applicant shall provide lighting on the east side of the building to illuminate the City- owned parking lot. Lighting shall be to parking lot standards. 8)All exterior lights shall be LED and shall be directed, positioned, and/or shielded such that they do not illuminate surrounding properties. 9)The approved architectural style, finished material, and colors shall be as approved by the Planning Commission. Changes to the facades and/or colors shall be subject to the review and approval of the City Planner. At his/her discretion, the City Planner may refer changes to the facades and/or colors to the Planning Commission for consideration. 10)All buildings and walls shall be finished with graffiti resistant materials. Prior to the issuance of building permits, the applicant shall demonstrate to the satisfaction of the City Planner, that the finished materials will comply with this requirement. 11)Any graffiti applied to the site shall be removed within 24 hours. 12)All signs shall comply with the requirements set forth in the Downtown Downey Specific Plan and Downey Municipal Code. 13)Prior to the issuance of building permits, the applicant shall obtain an easement from the City of Downey for the marquee and roof sign on Downey Avenue, as well as, the improvements (landscaping, pedestrian queue, FDC and Sprinkler control valve, etc) within the City-owned parking lot. 14)The Downey Avenue façade, and marquee and roof sign shall be permanently maintained on the site. Prior to the final of building permits, the applicant shall enter into Attachment B PC Agenda Page 6 a maintenance agreement with the City guaranteeing the applicant and all future successors shall maintain the façade, marquee and roof sign. The maintenance agreement shall be recorded on the property. 15) The restoration of the building, including the Downey Avenue façade, and marquee, and roof sign shall be deemed to satisfy the art in public places requirements set forth in Downey Municipal Code 8950 et seq. 16) All roof-mounted mechanical equipment shall be screened from view using artistic decorative screening as approved by the City Planner. Any changes shall require. The working drawings shall include a cross-section detail to illustrate that the height of the building parapet is sufficient to screen all roof-mounted equipment from view. and new screening if equipment is not screened. 17) Prior to the final of building permits, all landscaping and irrigation shall be installed. The type, size and number of landscaping shall be as noted on the approved landscape plan. All landscape shall be installed and permanently maintained. 18) Other than within the two (2) approved kitchens, there shall be no cooking within the building. The kitchen associated with within the business at 8310-8312 Third Street shall remain open and provide full food service to all portions of the restaurant (including that portion serving as a venue for live entertainment) at all hours that the restaurant/entertainment venue is open for business. 8310 3rd Street shall serve both businesses of 8310 & 8312 3rd Street. The kitchen must remain open during business hours. 19) All above grade back-flow preventers, check valves, and transformers shall be painted and screened from view from the public right-of-way to the satisfaction of the City Planner and the Fire Marshal. 20) Any new bollards shall be decorative in nature and shall be approved by the City Planner. 21) A trash receptacle shall be provided next to the food rail on Downey Avenue. The applicant shall maintain and empty the trash receptacle daily, and shall remove the receptacle from the public right-of-way at any time the food rail is not open for business. The type and style of the trash receptacle shall be approved by the City Planner. 22) Prior to the final of building permits, the applicant shall provide stamped color concrete or pavers across the driveway of the City-owned parking lot. The stamped color concrete or pavers shall be as approved by the City Planner. 23) An five foot wide unobstructed ADA path of travel of not less than forty-eight inches (48”) shall be maintained on the public sidewalk adjacent to the outdoor dining area on Third Street and the food rail on Downey Avenue as approved by the Building Division and Public Works Department to meet City/ADA Stand. 24) The permitted hours of operation for each business shall be as follows: a. Downey Avenue Restaurant (11022 Downey Avenue) – 9:00 a.m. to 3:00 a.m., seven (7) days a week. Delivery may occur from the site 24 hours a day. Attachment B PC Agenda Page 7 b. Third Street Restaurant (8310 Third Street) – 9:00 a.m. to 2:00 a.m., seven (7) days a week. c. Restaurant/Entertainment Venue/Rooftop Lounge (8312 Third Street) – 9:00 a.m. to 2:00 a.m., seven (7) days a week. 25) The following live entertainment shall be authorized during all approved hours of operation with a current and valid entertainment permit issued by the Chief of Police: a. Downey Avenue Restaurant (11022 Downey Avenue) – None live entertainment of any kind. b. Third Street Restaurant (8310 Third Street) – Live bands, dj’s, customer dancing. c. Restaurant/Entertainment Venue/Rooftop Lounge (8312 Third Street) – Live bands, customer dancing, dj’s, stand-up comedy, dinner theater shows, karaoke, live shows (plays, operas, and musicals), and public speaking engagements. 26) All live entertainment and/or pre-recorded ambient music within all the businesses shall cease 30 minutes prior to the specified closing time. 27) Pre-recorded ambient music (without the use of a disc jockey) within all businesses is allowed with a current and valid entertainment permit issued by the Chief of Police. All non-live entertainment (including pre-recorded ambient music) shall cease 10 minutes prior to the specified closing time. 28) Customers shall not be within any of the businesses after the specified closing time. 29) The businesses shall not function or otherwise operate as a “banquet facility” nor as a “conference center” as those terms are defined in the Downtown Specific Plan (DDSP), Appendix B. All live entertainment authorized pursuant to Condition of Approval 25 events shall be contracted directly with the business entity and open to the public, and shall not be rented out for private events. 30) No aspect of any of the businesses shall function or otherwise operate as an adult business, as defined in Municipal Code Section 9402. 31) Each business shall operate as a Bona Fide Public Eating Place (as defined by California Business & Professions Code §23038 – as may be amended from time to time). The kitchen servicing each business shall remain open to serve a full menu at all times that business is open. The gross sales of alcohol from each restaurant shall not exceed the gross sales of food. At the request of the City Planner, the applicant shall provide evidence satisfactory to the City Planner that the gross sales of food exceeds the gross sales of alcohol at each business. Sales from the business(es) at 8310 and 8312 Third Street will be considered jointly, while sales from the business at 11022 Downey Avenue shall be considered independently of any other business. 32) Alcoholic beverages shall not be sold, served, or provided after 1:30 a.m. or one-half (1/2) hour prior to the closing time of the business if the closing time is earlier than 2 a.m. Last call for the purchase and service of alcoholic beverage shall be 1:30 a.m. to Attachment B PC Agenda Page 8 allow for the consumption of all alcoholic beverages to be concluded by 2:00 a.m. as per Alcohol Beverage Control (ABC) requirements. All alcoholic beverages and alcoholic beverage containers (glasses, bottles, cans, or otherwise) shall be removed from all areas accessible to customers (including tables and counters) at least ten (10) minutes prior to the closing time of the business. Notwithstanding any ABC license, no alcohol shall be sold for off-site consumption. 33) The business owner/applicant and licensee shall not conduct valet parking on the subject site without the approval of a Conditional Use Permit from the Planning Commission. 34) For the Restaurant/Entertainment Venue listed under conditions of approval 1(b)(ii) and 24(c)/Rooftop Lounge, the following additional conditions of approval shall apply: a) Entertainment on the rooftop lounge shall be limited to live bands, dj’s, and customer dancing. b) No person below the age of 21 years shall be permitted entry into the business establishment. Age verification shall be through an electronic identification verification system. If the business owner/applicant allows entry at any time exclusively to persons 21 years of age and over, the applicant shall enact corresponding “house rules” and post appropriate signage reflecting said rule - as approved by the City Planner and Chief of Police. During any times when the business operator excludes entry by persons under the age of 21 years, age verification shall be performed on patrons prior to entering this portion of the business from the exterior or from another portion of the business and building, and shall be performed through an electronic verification system as approved by the Chief of Police. c) Customer entrance to this business shall be through the door on the east façade of the building. Customers shall not be permitted to enter into the business through other the other businesses in the building. Primary customer entrance to this portion of the restaurant/entertainment venue from the exterior of the building shall be through the door on the east facade of the building adjacent to the City parking lot. Customers of the business at 8310 Third Street may enter this portion of the restaurant/entertainment venue directly from 8310 Third Street through a connecting doorway, in accordance with a Security Plan approved by the Chief of Police. This shall not prohibit entry by employees through interior connecting doorways. d) Customer queuing from the entrance shall be kept against the building within the pedestrian walkway in the City-owned parking lot, and in accordance with a Queuing Management Plan approved by the Planning Division and Chief of Police. Should the queue extend longer than the pedestrian walkway, the queue line may extend along the building down Third Street. The applicant shall ensure the queue line does not block any entrance or exit to this or any other business, driveways, or accessibility on the public sidewalk, driveways, or other businesses. The use of stanchions, rope, balusters, or other similar temporary barriers to manage customer queuing a temporary queue line/rope is permitted in accordance with , subject to the review and approval of an approved Queuing Management Plan by the Planning Division and Police Department. Attachment B PC Agenda Page 9 e) Alcohol shall not be sold for off-site consumption. f) In conjunction with 8310 Third Street business, the gross sales of alcohol shall not exceed the gross sales of food. At the request of the City Planner, the applicant shall provide evidence that the gross sales of food exceed 50% the gross sale of alcohol. g) The kitchen shall remain open to serve a full menu at all times the business is open. The service/sale of prepackaged foods, salads, or sandwiches are not considered to be in compliance with this condition. 35) For the Third Street Restaurant listed under conditions of approval 1(b)(i) and 24(b), the following additional conditions of approval shall apply: a) Customer entrance to the business shall be through the door on the north façade of the building. Customers shall not be permitted to enter into the business through other the other businesses in the building. Primary customer entrance to this portion of the restaurant from the exterior of the building shall be through the door on the north facade of the building along Third Street. Customers of this portion of the restaurant may enter from the restaurant/entertainment venue through a connecting doorway, in accordance with a Security Plan approved by the Chief of Police. This shall not prohibit entry by employees through interior connecting doorways. b) Customer queuing from the entrance shall be kept against the building along Third Street, and in accordance with a Queuing Management Plan approved by the Planning Division and Chief of Police. The applicant shall ensure the queue line does not block any entrance or exit to this or any other business, driveways, or accessibility on the public sidewalk, driveways, or other businesses. The use of stanchions, rope, balusters, or other similar temporary barriers to manage customer queuing is permitted in accordance with , subject to the review and an approved approval of a Queuing Management Plan by the Planning Division and Police Department. c) In conjunction with 8312 Third Street business, Tthe gross sales of alcohol shall not exceed the gross sales of food. At the request of the City Planner, the applicant shall provide evidence that the gross sales of food exceed 50% the gross sale of alcohol. d) The kitchen shall remain open to serve a full menu at all times the business is open. The service/sale of prepackaged foods, salads, or sandwiches are not considered to be in compliance with this condition. e) The applicant shall obtain approval of an encroachment permit pursuant to Section 2.4.4 (Encroachments) of the Downtown Downey Specific Plan for the outdoor dining area. This shall include meeting all indemnification and liability requirements set forth in said section of the Specific Plan. Attachment B PC Agenda Page 10 f) Beer may be sold for off-site consumption., provided it is sold in a sealed container. 36) For the Downey Avenue Restaurant, the following additional conditions of approval shall apply: a) The gross sales of alcohol shall not exceed the gross sales of food. At the request of the City Planner, the applicant shall provide evidence that the gross sales of food exceed 50% the gross sale of alcohol. b) The kitchen shall remain open to serve a full menu at all times the business is open. The service/sale of prepackaged foods, salads, or sandwiches are not considered to be in compliance with this condition. c) The applicant shall obtain approval of an encroachment permit pursuant to Section 2.4.4 (Encroachments) of the Downtown Downey Specific Plan for the food rail. This shall include meeting all indemnification and liability requirements set forth in said section of the Specific Plan. d) Customer queuing from the entrance shall be kept against the building along Downey Avenue, and in accordance with a Queuing Management Plan approved by the Planning Division and Chief of Police. The applicant shall ensure the queue line does not block any entrance or exit to this or any other business, driveways, or accessibility on the public sidewalk, driveways, or other businesses. The use of stanchions, rope, balusters, or other similar temporary barriers to manage customer queuing a temporary queue line/rope is permitted in accordance with an approved Queuing Management Plan, subject to the approval of the Planning Division and Police Department. e) Alcohol shall not be sold for off-site consumption 37) The business owner shall ensure that the property is kept clean and free of litter and trash. This shall include all areas of the City-owned parking lot that are adjacent to the building, and all sidewalks and gutters for a distance of 25 feet from the building. BUILDING 38) All construction shall comply with the most recent version of the California Building Code, as adopted by the City of Downey, and Title 24 of the California Energy Code. 39) Prior to the commencement of construction, the applicant shall obtain all required permits. Additionally, the applicant shall obtain all necessary inspections and permit final prior to beginning operation of the site. 40) The emergency egress path of travel shall remain unobstructed. Egress doors shall be wide enough to accommodate the occupant load. 41) Prior to the issuance of building permits, the applicant shall obtain an emergency egress easement from the City of Downey to permanently maintain emergency egress through the parking lot. Attachment B PC Agenda Page 11 42) The occupant load of each business shall be clearly posted within said business, and occupancy of each business shall not exceed the maximum occupancy load. FIRE DEPARTMENT 43) Plans to be submitted through Building and Safety and shall comply with the most recent version or the California Fire Code, as adopted by the City of Downey; current Downey Municipal Code Ordinances and any other pertinent requirements to be determined at time of plan submission and review. 44) An area in front of the egress doors on the east side of the building shall be stripped and marked “Do Not Block”. This stripped area shall be as wide as the doors and extend ten feet from the building. 45) The Fire Department Connection and Double Detector Check Valve shall be located within the landscape area on the east side of the City-owned parking lot. 46) A deferred automatic fire sprinkler plan submittal is required for Assembly Group ‘A’ occupancy. The automatic fire sprinkler system design, installation, and testing shall be per NFPA 13 [CFC § 903.2.1.2 #3; DMC 3318]. 47) A deferred fire alarm and detection system plan submittal is required. The automatic fire alarm and detection system design, installation, and testing shall be per NFPA 72 [CFC § 907; DMC 3318]. 48) Applicant shall complete and submit “Change in Occupancy Use” application for tenant improvement of vacant space to an Assembly Group ‘A’ occupancy use. 49) A deferred plan submittal for commercial cooking hood/exhaust automatic fire extinguishing system shall be required. The automatic fire extinguishing system design, installation, and testing shall be per NFPA 96 and be UL 300 complainant [CFC § 904.2.2]. 50) If applicable, establishment of hazardous materials business plan (HMBP) for handling of compressed and/or refrigerated beverage system gases (e.g. Carbon dioxide, Nitrogen) exceeding 1000 cubic feet at STP (standard temperature pressure) shall be completed and approved prior to the commencement of business [HSC 25507(5)(C)]. 51) Storage of commercial kitchen cooking oil shall adhere to all current Fire Code requirements [CFC § 610]. 52) The design and construction of proposed project shall adhere to all conditions for Assembly Group ‘A’ occupancy for occupant load, exiting, emergency lighting, egress illumination, etc. 53) Prior to the final of building permits, the applicant shall provide key boxes (e.g. Knox Boxes) to occupancy. Location of the key boxes shall be as approved by the Fire Department [CA Fire Code §506.1]. Attachment B PC Agenda Page 12 54) The elevator shall be appropriately sized to accommodate both emergency medical staff (minimum of three (3) persons plus patient) and associated local emergency equipment such as gurneys and medical supplies [DMC 3326]. 55) The elevator operation for fire service/emergency operations shall meet the requirements of CA Fire Code [CA Fire Code §607]. 56) The fire sprinkler riser shall be located in an approved room with direct access from exterior. Access to the fire riser room shall not be through an intervening space or egress door. 57) The applicant shall provide and obtain approval of a fire access roads/lanes plan from the Fire Marshal [CA Fire Code §503.1.1]. This shall include striping of Fire Lane along the east side of the building, providing signage on the building, and providing red curbs on Third Street adjacent to the nearest Fire Hydrant (east of the site). 58) The exterior of all emergency egress doors shall have signage that reads “Emergency Exit, Do Not Block”. 59) The premises shall be clearly and appropriately addressed. An approved address identification shall be provided that is legible and placed in a position that is visible from the street/road. Sizing shall be approved and at a minimum meet requirement of CA Fire Code [CA Fire Code §505.1]. POLICE 60) Prior to the commencement of businesses, the applicant shall obtain a permit from the Chief of Police for all live entertainment. For the businesses described under conditions of approval 1(b) and 1(c). 61) The businesses shall comply with all requirements of the State of California, Department of Alcohol Beverage Control (ABC), as well as any conditions placed on the ABC licenses. 62) All promotions of the business shall be conducted under direct control of the business owner. There shall be no outside promoters of live entertainment or night club activity at any time. 63) Prior to the commencement of business, the applicant shall submit and obtain approval of a security plan for each business from the Chief of Police. The security plan shall include, amongst other information requested by the Chief of Police, the number of licensed and bonded uniformed security that will be required at each business. The number of security guards shall be at the sole discretion of the Chief of Police and may be increased/decreased at his/her determination of need. 64) Signs shall be posted at all entrances to the premises and business identifying a zero- tolerance policy for nuisance behavior at the premises (including the parking lot) and “no loitering”. No patrons or employees shall be allowed to congregate at the rear of the business. Attachment B PC Agenda Page 13 65) The business owner/applicant and licensee shall immediately report to the Police Department if any patron appears to be involved in illegal activity inside the subject business or outside in the parking lot area. 66) A copy of this conditional use permit, the police permit, and approved security plan must be maintained on the premises of each respective business. The business owner, applicant, and/or manager shall make available said copies upon request by any Police Officer or other City official charged with the enforcement of the City’s laws, ordinances, or regulations. 67) The business owner/applicant shall prohibit loitering by persons outside the business establishment – including within the parking area and upon the adjacent right-of-way, except for those persons in queue for entry into the business establishment in a manner approved by the Planning Division and/or Police Department. 68) The business owner/applicant shall impose a dress code that shall not permit patrons to wear the following: Gang attire/colors, baggy pants, bandanas, back packs, and/or caps worn backwards. A sign shall be posted at the entrance stating the dress code. 69) During all hours of operation, the business owner, manager, or other designated person in charge, shall maintain an accurate count of the number of persons (including patrons and employees) within the restaurant/live entertainment venue (at 8312 Third Street) business at any given time. 70) The business owner shall not permit any public nuisance within areas under his control, including but not limited to, unruly behavior by patrons, or any interactions with passersby. Areas under his control shall include mean the parking lot to the east of the business and sidewalks in front of the business (Third Street and Downey Avenue). 71) The business owner shall consent to and provide access to all areas of the subject premises without charge during normal business hours to any Police Department or other City Official for purposes of verifying compliance with any of the Conditions of Approval of this CUP, as well as with any Police Permit and approved Security Plan. PUBLIC WORKS 72) Prior to the commencement of work on public improvements, the applicant shall obtain all necessary permits from the Public Works Department. Proposed public improvements shall comply with the latest edition of Standard Plans and Specifications for Public Works Construction, City of Downey standards and the Americans with Disabilities Act (ADA). 73) The owner/applicant hereby consents to the annexation of the property into the Downey City Lighting Maintenance District in accordance with Division 15 of the Streets and Highways Code, and to incorporation or annexation into a new or existing Benefit Assessment or Municipal Improvement District in accordance with Division 10 and Division 12 of the Streets and Highways Code and/or Division 2 of the Government Code of the State of California. 74) Remove and replace damaged, uneven or sub-standard curb, gutter, sidewalk, driveway, disabled ramps, and pavement to the satisfaction of the Public Works Attachment B PC Agenda Page 14 Department. Contact the Public Works Inspector at (562) 904-7110 to identify the limits of the areas to be removed and replaced at least 48 hours prior to commencing work. 75) All new onsite utilities shall be installed underground. Any utilities that are in conflict with the development shall be relocated at the owner/applicant's expense. 76) The drive approach on Third Street shall be removed and replaced to match the new drive aisle in the City-owned parking lot. This shall include removing and replacing an 18-inch strip (or other specified limits) of the AC street pavement adjacent to the edge of the gutter along Third Street. 77) The applicant shall provide sufficient trash and recycling facilities to accommodate all the uses. The facility design must provide for recycling facilities, i.e., storage and handling areas for recycling facilities. Trash and recycling bins shall be within a trash enclosure at a location approved by the City Planner. Trash enclosure shall include roof cover, floor drain connection to grease interceptor and water hose bib connection for maintenance. 78) The owner/applicant shall provide separate water improvement plan sets for review and approval consisting of all City-owned potable water and fire service improvements. 79) The owner/applicant shall furnish and install separate water service lines, meters, and boxes for each tenant space. Connect new separate water service lines to existing water main located on Downey Avenue. Existing potable and fire water service lines and associated appurtenances must be removed and abandoned from existing water main. 80) The owner or tenant must establish water billing accounts with the City prior to the City activating and the tenant using any fire and/or potable, water service and meter. 81) The owner/applicant shall be required to complete a construction & demolition (C&D) waste management plan per Article V, Chapter 8 of the Downey Municipal Code. 82) The owner/applicant shall retrofit the existing fire hydrants east of the project on Third Street in accordance to latest Fire Department and Department of Public Works standards, including but not limited to, furnishing and installation of a new riser, fire hydrant head, and associated fittings. 83) The owner/applicant shall provide a fire sprinkler system(s) in accordance with Fire Department and Building and Safety standards. Should such fire sprinkler system(s) require the installation of dedicated fire service lateral(s), such lateral(s) shall be constructed in accordance with the latest Department of Public Works and Fire Department standards including backflow devices, fire department connections and other appurtenances as required. 84) The owner/applicant shall furnish and install irrigation, domestic, and fire water backflow devices in accordance with City of Downey standards and as required by State and LA County Department of Public Health. Backflow devices shall be located on private property, readily accessible for emergency and inspection purposes, and screened from view by providing sufficient landscaping. Attachment B PC Agenda Page 15 85) All areas within the scope of work of this project shall comply with the National Pollutant Discharge Elimination System (NPDES) requirements of the Federal Clean Water Act; the General Construction Activities Stormwater Permit (GCASP) of the State, the Stormwater Quality Management Plan (SQMP) of the Los Angeles County Department of Public Works, and Ordinance 1142 of the Downey Municipal Code. 86) The owner/applicant shall provide that all construction graffiti created as part of this project in the public right-of-way and City-owned parking lot to be removed. 87) The owner/applicant shall confirm availability of adequate fire flow and pressure in accordance with the Department of Public Works and Downey Fire Department requirements. 88) The owner/applicant shall provide and record utility easement(s) for access to, and inspection and maintenance of, public water lines, meters and appurtenances, and backflow devices. 89) The owner/applicant shall furnish and install a new 6- inch sewer lateral(s) (to the front property line) and abandon any existing unused sewer laterals. The design and improvements of sewers shall be in accordance with the latest standards of the Department of Public Works. Septic systems shall not be allowed. 90) The owner/applicant shall identify the point(s) of connection for the sanitary sewer lateral(s) and confirm that sufficient capacity exists in the publicly owned facilities in conformance with the requirements of the Department of Public Works and the County Sanitation Districts of Los Angeles County (CSDLAC). 91) The owner/applicant shall furnish and install the public sanitary sewer improvements, including extension and/or replacement of existing mains and associated facilities, necessary to provide adequate capacity for the site as approved by the Department of Public Works and CSDLAC. 92) The owner/applicant is responsible for coordinating with and payment to the City and CSDLAC for all sanitary sewer connection and capacity charges. 93) The owner/applicant shall provide improvement plan mylars, record drawing mylars, and record drawing digital (AutoCAD – latest edition) files in accordance with the requirements of the Department of Public Works that have been signed by a civil engineer licensed in the State of California. Final approval of new utilities shall be dependent upon submittal and approval of record drawing mylars and scanned, uncompressed TIFF images of record drawings on a CD/DVD-ROM media per City’s GIS Requirements. 94) Utility plans shall be submitted to and approved by the Department of Public Works prior to the issuance of the grading plan permit. Submit plans to Building & Safety and Planning Divisions regarding the following: a) The use of drought tolerant landscaping shall incorporate ground covers, shrubs and trees to the maximum extent possible. Attachment B PC Agenda Page 16 b) Drip and micro spray irrigation shall maximize the use of drip irrigation and micro- spray systems to the maximum extent possible. c) Latest Green Code standards for water fixtures, etc. 95) The owner/applicant shall dedicate 5’-6” for right-of-way purposes along Downey Avenue to the standards of the City Engineering Division. 96) The owner/applicant shall provide that no easements of any type be granted over any portion of the subdivision to any agency, utility or organization (private or public), except to the City of Downey prior to recordation of the tract or parcel map. The owner/applicant shall grant easements in the name of the City, including: a) Vehicular easements b) Walkway easements c) Drainage easements d) Utility easements 97) The filed map shall comply with the latest edition of the state subdivision Map Act, the City of Downey Municipal Code and all the applicable state and local laws. Prior to recordation, the Applicant shall prepare map under the direction of a Registered Civil Engineer authorized to practice land surveying, or a Licensed Land Surveyor. The map must be processed through the Dept. of Public Works prior to being filed with the County Recorder. 98) A preliminary Title Report (or a chain of title) prepared by the title company for the subdivision is required showing all fee interest holders and encumbrances. An updated title report shall be provided (not older than 90 days) before the final tract/parcel map is released for filing with the County Recorder. 99) Monumentation of the final map boundaries, street centerline and lot boundaries is required for a map based on a record of survey. In the absence of such record, a licensed land surveyor shall set up all the missing monumentation. 100) Upon City Council approval, the final map shall be filed by the Engineer of Record with the Los Angeles County Public Works Department for its recordation. One (1) Mylar copy of the filed map shall be submitted to the City Dept. of Public Works prior to Certificate of Occupancy. 101) The City reserves the right to impose any new plan check and/or permit fees approved by City Council subsequent to the Planning Commission’s tentative approval of this map. 102) All portions of the City-owned parking lot that are adjacent to the project site shall be repaired, sealed, and stripped to the satisfaction of the City Engineer and Building Official. This may necessitate removal and replacement of the existing asphalt. Construct onsite pavement, consisting of a minimum section of 4” thick aggregate base, and a minimum 2-1/2” thick asphalt concrete pavement. Construct Pavement on-site parking and circulation areas as required by a pavement engineering or geotechnical report prepared by a Registered Civil Engineer, subject to the review and approval of the Attachment B PC Agenda Page 17 Public Works and Community Development Departments. Attachment B PC Agenda Page 18 Agenda Page 1 Attachment C PC Agenda Page 19 Agenda Page 2 Attachment C PC Agenda Page 20 Agenda Page 3 Attachment C PC Agenda Page 21 Agenda Page 4 Attachment C PC Agenda Page 22 Agenda Page 5 Attachment C PC Agenda Page 23 Agenda Page 6 Attachment C PC Agenda Page 24 Agenda Page 7 Attachment C PC Agenda Page 25 Agenda Page 8 Attachment C PC Agenda Page 26 Agenda Page 9 Attachment C PC Agenda Page 27 Agenda Page 10 Attachment C PC Agenda Page 28 Agenda Page 11 Attachment C PC Agenda Page 29 Agenda Page 12 Attachment C PC Agenda Page 30 Agenda Page 13 Attachment C PC Agenda Page 31 Agenda Page 14 Attachment C PC Agenda Page 32 Agenda Page 15 Attachment C PC Agenda Page 33 Agenda Page 16 Attachment C PC Agenda Page 34 Agenda Page 17 Attachment C PC Agenda Page 35 Agenda Page 18 Attachment C PC Agenda Page 36 Agenda Page 19 Attachment C PC Agenda Page 37 Agenda Page 20 Attachment C PC Agenda Page 38 Agenda Page 21 Attachment C PC Agenda Page 39 Agenda Page 22 Attachment C PC Agenda Page 40 Agenda Page 23 Attachment C PC Agenda Page 41 Agenda Page 24 Attachment C PC Agenda Page 42 Agenda Page 25 Attachment C PC Agenda Page 43 Agenda Page 26 Attachment C PC Agenda Page 44 Agenda Page 27 Attachment C PC Agenda Page 45 Agenda Page 28 Attachment C PC Agenda Page 46 Agenda Page 29 Attachment C PC Agenda Page 47 Agenda Page 30 Attachment C PC Agenda Page 48 Agenda Page 31 Attachment C PC Agenda Page 49 Agenda Page 32 Attachment C PC Agenda Page 50 Agenda Page 33 Attachment C PC Agenda Page 51 Agenda Page 34 Attachment C PC Agenda Page 52 Agenda Page 35 Attachment C PC Agenda Page 53 Agenda Page 36 Attachment C PC Agenda Page 54 Agenda Page 37 Attachment C PC Agenda Page 55 Agenda Page 38 Attachment C PC Agenda Page 56 Agenda Page 39 Attachment C PC Agenda Page 57 Agenda Page 40 Attachment C PC Agenda Page 58 Agenda Page 41 Attachment C PC Agenda Page 59 Agenda Page 42 Attachment C PC Agenda Page 60 Agenda Page 43 Attachment C PC Agenda Page 61 Agenda Page 44 Attachment C PC Agenda Page 62 Agenda Page 45 Attachment C PC Agenda Page 63 Agenda Page 46 Attachment C PC Agenda Page 64 Agenda Page 47 Attachment C PC Agenda Page 65 Agenda Page 48 Attachment C PC Agenda Page 66 Agenda Page 49 Attachment C PC Agenda Page 67 Agenda Page 50 Attachment C PC Agenda Page 68 Agenda Page 51 Attachment C PC Agenda Page 69 Agenda Page 52 Attachment C PC Agenda Page 70 Agenda Page 53 Attachment C PC Agenda Page 71 Agenda Page 54 Attachment C PC Agenda Page 72 Agenda Page 55 Attachment C PC Agenda Page 73 Agenda Page 56 Attachment C PC Agenda Page 74 Agenda Page 57 Attachment C PC Agenda Page 75 Attachment C PC Agenda Page 76 Attachment C PC Agenda Page 77 Attachment C PC Agenda Page 78 Attachment C PC Agenda Page 79 Attachment C PC Agenda Page 80 Attachment C PC Agenda Page 81 Attachment C PC Agenda Page 82 Attachment C PC Agenda Page 83 Attachment C PC Agenda Page 84 Attachment C PC Agenda Page 85 Attachment C PC Agenda Page 86 Attachment C PC Agenda Page 87 Attachment C PC Agenda Page 88 Attachment C PC Agenda Page 89 Attachment C PC Agenda Page 90 Attachment C PC Agenda Page 91 Attachment C PC Agenda Page 92 Attachment C PC Agenda Page 93 Attachment C PC Agenda Page 94 Avenue Theatre, LLC 11022 Downey Avenue & 8010-8012 3rd Street Downey, CA 90241 May 9, 2024 Irma Huitron Community Development Director City of Downey 11111 Brookshire Avenue Downey, CA 90241 Re: Detail of the Avenue Theatre’s 10-Year Project Timeline Dear Ms. Huitron: After nearly 10 years, we are quite excited about the near opening of this venue. Because so much time has elapsed, we wanted to describe what transpired to this point. The original budget for the project was determined to be $4.5M. To date, over $11M has been spent. In 2014, the City of Downey’s Community Development Department issued an RFP for the Avenue Theatre property, combined with the property on 2nd Street, which now occupies the housing project completed by National CORE, today known as The View. In early 2015, the City of Downey had received more than 11 responses to the RFP, with a majority of them coming from residential housing developers mainly interested in just the 2nd Street property. It was understood that most of the proposals for development of the Avenue Theatre included complete demolition of the historic Avenue Theatre. Over time, the city determined the development of the two properties to be inconsistent with each other and began considering them separately. Avenue Theatre LLC proposed to restore the historic theatre, and repurposing it to the more current uses of a short-order NY pizzeria, an additional full-service restaurant, and a live entertainment venue. The project committed to saving the unreinforced masonry edifice and, essentially, constructing a building inside of a building. This is akin to building a ship inside of a bottle. In Summer 2015, the City of Downey determined our proposal to be the most revered and it was selected. We were granted an Exclusive Negotiating Agreement. Coincidentally, in the same Summer of 2015, we began the construction of our very first Gaucho Grill Argentine Steakhouse, here at the Promenade in Downey. We asked that the city leaders grant us an extension of the ENA to give us proper time to construct and launch our new restaurant, which did occur in Spring 2016. In early 2017, Mr. Gilbert Livas and Mr. Aldo Schindler notified us that we needed to proceed with our Avenue Theatre project, or risk having a back-up proposal be selected instead. Attachment D PC Agenda Page 95 Avenue Theatre, LLC 11022 Downey Avenue & 8010-8012 3rd Street Downey, CA 90241 We worked throughout the year and submitted an application for the C.U.P., which was granted by the Downey Planning Commission unanimously, on Wednesday, January 3, 2018. We worked with our architects and engineers and finally submitted plans in late 2018. We closed escrow on the property on June 26, 2019. Building permits were issued in October 2019 and we began construction in late January 2020. Just 6 weeks later, Covid shut down the construction of our project. During the course of the last 4 years, we have gone through intermittent delays and surges in the construction cycle, but we did finally get there. In retrospect, we are very proud to have completed the project, and to have honored this commitment to the City of Downey and the community as a whole. Kindest Regards, Adrian Amosa, Principal Kirk Cartozian, Principal Avenue Theatre, LLC Attachment D PC Agenda Page 96 Avenue Theatre, LLC 11022 Downey Avenue & 8010-8012 3rd Street Downey, CA 90241 May 9, 2024 Irma Huitron Community Development Director City of Downey 11111 Brookshire Avenue Downey, CA 90241 Dear Ms. Huitron: As the owners of Avenue Theatre, we are quite excited about the near opening of this venue. Per our discussion, there are some component conditions of the January 2018 C.U.P. that we would appreciate the city’s consideration in modifying. For both financial and logistical reasons, these include the pylon roof sign variance, which was a suggestion coming from the applicant, and the rooftop lounge component. In 2017, when first discussing the C.U.P. application with Mr. Aldo Schindler, the restoration of the theatre’s façade and marquee were deemed to be sufficient to satisfy the public art component for this project. To capture additional exposure for the theatre, we proposed adding back the pylon roof sign, and included that to be included in the public art component. In 2015, the original scheduled budget for the project was $4.5M. During the course of construction, which began in 2020, the actual expenditures have now exceeded $11M, nearly triple what was planned. By all accounts, the façade and marquee were tastefully restored, but the cost to engineer and complete the pylon sign will cost nearly $100,000. We determined this to be financially burdensome and unnecessary to capture what is already significant positive exposure for the theatre. We respectfully request the City of Downey to allow Avenue Theatre LLC to remove the pylon roof sign (by way of variance) as a componenet of the C.U.P. and, thus, to allow the façade and marquee components already completed to satisfy the public art component. We also request the removal of the rooftop lounge from the C.U.P., as its cost would have been an additional $2M to complete. Kindest Regards, Adrian Amosa, Principal Kirk Cartozian, Principal Avenue Theatre, LLC Attachment E PC Agenda Page 97 CDC 327 ACTION REQUEST TO AMEND AUTHORIZATION FOR DEBENTURE GUARANTEE (504 LOAN) Template 1. AMENDMENT TO BE MADE – EXTENSION OF AUTHORIZATION TO: Sacramento Loan Processing Center DATE: 08/03/2023 U.S. Small Business Administration 6501 Sylvan Road, Suite 111 Citrus Heights, CA 95610-5017 RE: Applicant Name Avenue Theatre LLC OC Name(s) (If applicant is an EPC) Avenue Pizza Inc SBA 504 Loan Number 39051270-04 FROM: CDC Contact Name Advantage Certified Development Corporation Contact Person Karen Canela Phone (562) 983-7450 FAX E-mail kcanela@504loans.org ____________________________________________________ Karen Canela Signature and Title of CDC Reason for extension : CDC has reviewed: x Tax returns for 2022 for: x Borrower Co-Borrower Operating Company x Financials for Affiliated Businesses and there is no evidence of any material adverse change since the date of the 504 Loan application. This project has experienced construction delay based on materials availability and substantial raise on all costs due to COVID. Materials that have been delayed are cement and switchboard. The switchboard specifically had a delay time of 18 months. The project property is currently in Attachment F PC Agenda Page 98 the late stages of construction, with an anticipated completion of 6-8 months. Once construction is complete the CDC can move forward with the closing and funding of the loan.   Currently pending to be done are the mechanical and electrical aspects. Moreover, none of the  businesses have started operations, therefore none of the building areas is currently being used by the  business. The borrower is estimating the 3 businesses (Avenue Pizza Inc dba Pizzeria, Beso  Entertainment dba Beso, Crawford Brewing dba Crawford) will begin their operations between the  months of October and November. Additionally, the borrowers do not have CO yet, CO will be obtained  once construction is complete.      New projections were not prepared, however the borrower indicated that, as they have done in other  restaurants they own and operate, they have increased prices to absorb higher operating costs. Same  will be done with businesses operated from the subject location. The profit margins percentage will  remain the same. Therefore, income would be sufficient to service the debt. CDC has received the  updated financial information on affiliated businesses; financial spreads for all affiliates except West  Covina Parkway LLC are being submitted in the Credit Memo with this request. West Covina Parkway  was sold this year, Final Seller’s Closing Statement is being submitted with this request.        Please make the following changes to the Authorization for the above-referenced loan: In Section B.1.e. extend disbursement of Authorization for 12 months until August 09, 2024. Small Business Administration Sacramento Loan Processing Center Action Number: ______ APPROVED DECLINED ______________________________________________ _____________________ _ Approving Officer Date AGREE DISAGREE ______________________________________________ _____________________ _ Approving Officer Date Attachment F PC Agenda Page 99 From:Adrian Amosa adrian@gauchogrill.com Subject:Fwd: COO - Avenue Theatre Date:May 9, 2024 at 6:11 PM To :Cartozian Kirk kirk@gauchogrill.com Begin forwarded message: From: Ahmad Shafique <AShafique@504loans.org> Date: May 9, 2024 at 3:44:54 PM PDT To: Adrian Amosa <adrian@gauchogrill.com> Subject: COO - Avenue Pizzeria Hi Adrian, As I informed you, SBA has extended the approval date once, but has clearly informed us that approval date will not be extended any more. Please see attached – see SBA’s notes at the bottom. What this means is that should you decided to keep moving forward with SBA loan, we would need to process a whole new loan application. In regards to SBA’s Loan Funding, SBA funds all of its loans only once a month on the third Wednesday of each month. For SBA to fund the loan, we need to submit Funding Package to SBA over a month in advance. Funding Package requires COO for construction transactions. In your case, Loan Approval is extended till August 9, 2024. This really means that we must fund loan on the 3rd Wednesday of July – 3rd Wednesday of August falls after 8/9/24. Last date for submitting Funding Packages for July funding to SBA is June 3, 2024. We must have COO on or before June 3, 2024. Should you have any questions, please contact me at your convenience. Best Regards, Ahmad Shafique President 100 Oceangate, Suite 375, Long Beach, CA 90802 C 562/818-2228 | P 562/983-7450 Ext. 123 | F 562/508-4231 ashafique@504loans.org  | www.504loans.org ***PLEASE NOTE OUR NEW ADDRESS*** This email, including any attachments, is confidential and intended for the named recipient(s) only. It may be subject to legal or other professional privilege and contain copyright material. Any confidentiality or privilege is not waived or lost because this email has been sent to you by mistake. Access to this email or its attachments by anyone else is unauthorized. If you are not the intended recipient, you may not disclose, copy or distribute this email or its attachments, nor take or omit to take any action in reliance on it. If you have received this email in error, please notify the sender immediately, delete it from your system and destroy any copies. We accept no liability for any loss or damage caused by this email or its attachments due to viruses, interference, interception, corruption or unauthorized access. 327 Action #5~Decision.pdf Attachment G PC Agenda Page 100 Attachment G PC Agenda Page 101 IInnffiillll HHoouussiinngg oorr MMiixxeedd--uussee RReeddeevveellooppmmeenntt OOppppoorrttuunniittyy RReeqquueesstt ffoorr PPrrooppoossaallss FFoorrmmeerr AAvveennuuee TThheeaatteerr 1111002222 DDooww nneeyy AAvveennuuee Attachment H PC Agenda Page 102 2 I. INTRODUCTION AND BACKGROUND The City of Downey (“City”) is currently moving forward with a strategy to redevelop the downtown area of Downey, with a focus on the Downtown Core District, as directed by the Downtown Downey Specific Plan (refer to Exhibit “A”). The strategy seeks to implement several catalytic projects in the downtown area that will help reshape and pave the way for similar and new redevelopment in the Downtown. The goal is to encourage excellent architectural design, project quality, and sufficient density and size to favorably impact the market and inspire further residential development in the downtown area. It’s also important to create a pedestrian friendly environment around any project which is compatible with its surroundings. The City seeks a qualified developer with a proven track record to redevelop a key Downtown property: the Avenue Theater (refer to Exhibits “B” and “C”), located at 11022 Downey Avenue, in the heart of Downtown. It is a one-story, approximately 10,000 square-foot structure built as a theatre in the late 1920s and was equipped for live shows; dressing rooms still exist beneath the stage. The theatre evolved throughout the years into a movie house, containing approximately 500 seats and was finally closed in 2003. The existing L-shaped building fronts both Downey Avenue and 3rd Street, with the bulk of the building located on the 3rd Street side. The east side of the building is adjacent to an existing, public parking lot located between 2nd Street and 3rd Street (see Exhibit “B”). Former redevelopment 20% tax increment, low-moderate income set-aside funds were used to purchase the property. We will consider thoughtful financial proposals regarding the redevelopment of the site. II. INTENDED REDEVELOPMENT SCENARIO In making the property available for redevelopment, the City anticipates advancing the following development objectives:  Gateway: Make advantageous use of the prominent location along Downey Avenue and provide active ground-floor uses.  District Uses and Identity: Provide primary uses that enhance the neighborhood’s 24/7 vitality and contribute to the diversity that makes the developing neighborhood desirable and attractive.  Safety and Connections: Enhance the real and perceived safety of the neighborhood through street-level uses that generate positive economic activity and enhance vibrancy between destinations.  Financial Terms: Minimize the need for financial assistance from the City and maximize financial return. Attachment H PC Agenda Page 103 3 Toward this end, the City seeks proposals from qualified real estate development firms to carry out this redevelopment. The City is setting forth the following parameters for all proposals:  New Residential Units – Proposals for redevelopment to include a program that constructs new housing units that enhance the desired downtown/urban revitalization of the area. We seek to facilitate a project of sufficient density and size to favorably impact the market and lead to further residential development in the downtown area.  Public Parking and Parking Solutions – The Avenue Theater does not have dedicated parking located onsite. As previously referenced, a narrow public parking lot is located immediately adjacent to the property. Additionally, the City has an adopted Downtown Plan that allows for the use of offsite parking and valet systems to provide parking for the redevelopment and reuse of existing buildings. All proposals should incorporate either one or both of the public parking lots into any redevelopment scenario and should also evaluate and suggest creative solutions for meeting parking requirements, including shared- use parking, offsite parking, and other parking demand management strategies.  Entitlements – The selected developer, partnering with the City, would be responsible for obtaining all entitlements, clearances, and permits necessary to implement redevelopment of the property. PLEASE SEE THE DOWNTOWN DOWNEY SPECIFIC PLAN REGARDING THE DEVELOPMENT STANDARDS. The document can be found here: http://www.downeyca.org/gov/cd/planning/special_zoning/default.asp  Restaurant Space – The Avenue Theater includes an approximately 1,600 square-foot section of the building that fronts Downey Avenue. As part of a mixed-use development the City would entertain the incorporation of a high- quality, sit-down restaurant. The selected developer will be responsible for design and construction, not including tenant improvements, of this small, but important restaurant space.  Community Space – The inclusion of community space in any redevelopment program would be an advantage for any proposal. Community space should be located on the ground floor and can be flexible and multipurpose and include cultural programming and/or other community-serving programming. III. CRITERIA FOR SELECTION OF THE DEVELOPER TEAM 1. Vision/Creativity of Redevelopment Proposal – How compelling and context- based is the redevelopment proposal. In what significant ways does one proposal separate itself from the others. How and to what extent does a proposal incorporate sustainable development practices and modern urban planning Attachment H PC Agenda Page 104 4 principles. What separates one proposal’s approach to architectural design, verse the others. 2. Developer Track Record – How capable is the developer team and what is the likelihood of the developer being able to implement the project. How experienced is the developer team with challenging infill projects that include the reuse of buildings and development of new housing units. 3. Financial Feasibility and Cost Effectiveness – How realistic is the proposal based on its economic assumptions. How cost effective is the proposal with respect to both producing housing units and required public investment. IV. SUBMITTAL REQUIREMENTS Reponses to this RFP should provide the following:  Profile of the Developer Team – Background materials regarding the developer team, experience, and track record in completing similar projects in downtown settings.  Redevelopment Vision/Concept – A description of the proposed redevelopment program. This includes both narrative and graphics necessary to articulate the vision for redevelopment. This section should include summary totals for square footage of development, total residential units, and other uses as proposed.  Proposed Financing Plan – A preliminary proforma that clearly provides information on total project costs, and proposed financing sources.  Proposed Generalized Timeframe – A preliminary schedule for entitlement, construction, lease-up, and completion of the project. VI. EVALUATION AND SELECTION PROCESS Interested parties should provide five copies of a written proposal by December 12th to: City of Downey Community Development Department Attn: Aldo E. Schindler, Director of Community Development 11111 Brookshire Avenue Downey, CA 90241 Attachment H PC Agenda Page 105 5 An optional pre-submittal conference, including a question/answer session, will occur on November 13, 2014 at 10 AM at the City of Downey, 11111 Brookshire Avenue, Downey, CA. 90241. A tour of the site will follow. During the selection process, the City may choose to carry out interviews of developer teams that have submitted proposals. Developer teams will be contacted directly by the City. City of Downey staff will review all proposals submitted. The City will enter into an exclusive negotiating agreement with the selected developer and anticipate beginning redevelopment of the Avenue Theater in 2015. NOTE TO ALL RESPONDENTS AND PROPOSERS: THE CITY OF DOWNEY RESERVES THE RIGHT TO REJECT ALL SUBMITTALS AND AT ITS OPTION TO TERMINATE THIS REQUEST FOR PROPOSAL, REISSUE IT WITH THE SAME OR DIFFERENT CONDITIONS, OR EXTEND THE DATE FOR SUBMITTALS. THIS REQUEST FOR PROPOSAL IS NOT AN OFFER TO CONTRACT WITH ANY SPECIFIC PARTY. SELECTION OF A PARTY WITH WHOM TO ENTER INTO EXCLUSIVE NEGOTIATIONS IS EXPECTED TO, BUT IS NOT GUARANTEED TO, LEAD TO A DISPOSITION AND DEVELOPMENT AGREEMENT FOR THIS PROJECT. Attachment H PC Agenda Page 106 6 EXHIBIT A Downtown Downey Map Attachment H PC Agenda Page 107 7 EXHIBIT B Location Map Subject Site Attachment H PC Agenda Page 108 8 EXHIBIT C Site Photographs West View of Subject Site North View of Subject Site Attachment H PC Agenda Page 109 Attachment I PC Agenda Page 110 Attachment I PC Agenda Page 111 Attachment I PC Agenda Page 112 Attachment I PC Agenda Page 113 Attachment I PC Agenda Page 114 Attachment I PC Agenda Page 115 Attachment I PC Agenda Page 116