HomeMy WebLinkAbout31C - MACARTHUR PLACE SOUTH NEXUS LAKE TOWERS
REQUEST FOR
COUNCIL ACTION
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CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
FEBRUARY 6, 2006
TITLE:
TRANSFER OF DEVELOPMENT RIGHTS
FOR THE NEXUS LAKE TOWERS HIGH
RISE CONDOMINIUMS AT MACARTHUR
PLACE SOUTH
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CITY MANAGER
APPROVED
o As Recommended
o As Amended
o Ordinance on 1 sl Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Direct the City Manager to authorize the transfer of development rights
for the Nexus Lake Towers high-rise condominium project to MacArthur
Towers, LLC, a subsidiary of Intracorp, Los Angeles, LLC with such non-
substantive changes as may be approved by the City Manager and City
Attorney.
DISCUSSION
On June 20, 2005, the City Council approved numerous entitlements
requested by Nexus Development Corporation for MacArthur Place South, a
mixed-use project within Hutton Centre. These entitlements included a
development agreement for the entire development as well as a conditional
use permit, tentative tract map and variances to allow a 349 unit high-
rise condominium development to be constructed by Nexus Development.
Since the project's approval, Nexus has elected to sell its development
rights for the Lake Towers component to Intracorp Los Angeles, LLC.
Intracorp Los Angeles, LLC is affiliated with the Intracorp group of
companies, a developer of urban infill projects across the nation.
Intracorp Los Angeles, LLC is the subsidiary responsible for residential
development in Southern California and will be forming a special purpose
entity, MacArthur Towers, LLC, to develop this project.
Section 4.2 of Development Agreement No. 2005-02 allows for the transfer
of development rights to another party with City Council approval. Prior
to the transfer, the Development Agreement requires a review of
Intracorp's development experience and financial capability to ensure
Intracorp has the financial capability and development experience that is
equal to or greater than Nexus. Further, the transfer of rights will
include an assignment and assumption agreement confirming that the
duties, obligations and liabilities from this Agreement are assumed by
Intracorp. This ensures that the plans approved by the Planning
Commission and City Council, together with all conditions and
requirements, are fully satisfied.
31 C-1
Transfer of Development Rights for
the Nexus High Rise Condominiums
February 6, 2006
Page 2
Staff has reviewed various financial information concerning Intracorp.
Intracorp is a stable, financially sound company with the financial
ability to complete the project. Also, its expertise in building various
types of housing, including mixed-use urban infill proj ects and multi-
family residential substantiates its solid track record in developing the
high-rise condominiums. Intracorp has a variety of similar projects that
are presently under construction or which have been completed, including
The Cove, an 18-story, l38-unit high rise in Marina Del Rey and the West
Ocean Towers, a 22 and 29 story tower project with 246-units in Long
Beach. Reference checks regarding these similar projects and Intracorp's
overall ability to perform have also confirmed excellent working
relationships with municipalities as well as a successful track record of
completed projects.
Intracorp is an experienced, fiscally sound company that has the
capabilities to construct the high-rise condominium project. Therefore,
staff recommends that the City Council authorize the City Manager to
execute documents transferring the development rights for the 349-unit
high-rise condominium project to MacArthur Towers, LLC, a subsidiary of
Intracorp. Los Angeles, LLC.
FISCAL IMPACT
There is no fiscal impact associated with this action.
M. Trevino
cutive Director
Planning & Building Agency
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