02-07-2006 - Downtown Conceptual PlanCity of West Covina
Memorandum
TO: City Manager and City Council "'`` AGENDA
FROM: Douglas N. McIsaac ITEM NO. B-2
Planning Director DATE: February 7, 2006
SUBJECT: DOWNTOWN CONCEPTUAL PLAN
RECOMMENDATION:
Staff recommends that the City Council review the draft the Downtown Conceptual Plan and: '(1)
adopt the plan; or (2) provide direction to staff regarding amendments to the Conceptual Plan.
DISCUSSION:
After considerable study and public outreach, the City's urban design consultant, Studio 111, has
completed the draft Downtown Conceptual Plan for the Lakes/Glendora Avenue area of the City.
As described in this report, the Conceptual Plan establishes standards and a framework for the
guided transition of the area into a high activity "downtown" area for West Covina.
Background
In 2002, the City adopted the Vision 2020 Strategic Plan, which included a number of long-range
goals for the City. One of these goals was to "create a central gathering place, like an old town -like
urban village to serve the entire community, while also adding a distinctive sense of place to the
City in its role as the heart of the San Gabriel Valley."
The area of the City that has generally been thought where this concept of an "urban village" or'
"downtown" could be made to happen is the Glendora Avenue/Lakes area of the City. Glendora
Avenue originally developed as one of West Covina's first commercial shopping districts in the
1950's, and most of the same buildings that were originally built continue to line the east side of the
street. Over the course of time since then, a number of new developments have been constructed in
the area in an attempt to revitalize and "remake" the area. These include The Lakes office complex
in 1989, the Edwards theater and construction of new, street improvements on Glendora Avenue in
1997, the Elephant Bar restaurant in 2003, and most recently the construction of the Macaroni Grill
and other restaurants in 2004.
While these developments have made the Lakes/Glendora Avenue area one of the more active
commercial areas of the city, the area still has yet to become the "downtown" area that has been
envisioned. In order to achieve this, it is critical that all of the elements required to provide this type
of environment be implemented, as well as developing a "critical mass" of appropriate uses.
The concept of an "urban village" is one that has gained increasing popularity and success in many
cities throughout Southern California and the nation. While the concept is one that relies a certain
concentration and density of development, it is a concept that in recent years is being implemented
in suburban as well as urban communities. It is also concept that is being used to transform
established commercial areas, as well as being newly developed "from scratch." Cities such as
Alhambra, Huntington Beach, Brea, Stanton, Pasadena, Rancho Cucamonga, Carson, Whittier,
Montebello, Burbank, Anaheim, Santa Ana, are some of the cities that have or are in the process of
developing urban villages in their communities.
With these circumstances in mind, the City has contracted with the urban design firm of Studio 111
to take the progress that has already been achieved in the Glendora Avenue/Lakes area and develop
a plan that will add the remaining essential elements to bring about the final transformation of the
area into an integrated "downtown" to serve as an exciting, vibrant center of commerce,
entertainment, and activity for the entire city.
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Downtown Conceptual Plan
February 7, 2006 - Page 2
Since April of last year, a total of 15 meetings have been held and presentations have been made to
various groups to inform the public and solicit input and reaction. The list of these meetings are
provided as an attachment.
As stated, the reaction and response from the majority of those attending these meetings was
positive with respect to the general concept of creating a downtown "urban village." Some of the
more frequently mentioned questions and concerns pertained to: (1) the cost to implement the plan;
(2) the convenience and availability of parking; (3) increased traffic; (4) crime and safety concerns;
and (5) whether there was a market in West Covina for the type of development being proposed.
Content and Summary of Conceptual Plan
Throughout the process of preparing the Conceptual Plan, it has been stressed that the plan is
intended to be conceptual in nature. While it does include a rather detailed land use plan which
encompasses all of the needed components to achieve the desired result, the manner in which the
plan is actually implemented could be modified through the process of its implementation. In other
words, the "pieces of the puzzle" may be moved, provided that all of the pieces are included in the
end. To this end, the Conceptual Plan also includes several alternatives (particularly relating to the
Wickes site) to contend with varying circumstances that may need to be addressed during
implementation.
It has also stressed that the City's intent has been to implement the plan over a period of time
working closely with affected property owners, business operators, and the private development
community. In this regard, the City or the Community Development Commission are not intending
to buy existing properties or otherwise directly finance the plan's implementation. In this respect,
the Conceptual Plan is a roadmap to achieving a desired end and what needs to be included in that
desired end.
As stated, the Conceptual Plan has been developed so as to include a certain degree of flexibility
to allow' for unknown and fluctuating circumstances that may arise throughout its
implementation. As also stated, however, achieving the desired result, an integrated downtown
urban village, relies on implementing certain key components of the plan, including:
• The realignment of Glendora Avenue to provide area to accommodate development and
activity on both sides of the street.
• Providing centralized parking while continuing to provide strategically located surface
parking to create an environment that is more conducive to street level activity and
pedestrian circulation.
• Well -designed open space with street furniture, public art and landscaping to create
interesting activity and gathering places.
• A diversity of uses to provide "around the clock" energy and vitality to the area, as well
as provide "built in" cross -patronage for the various uses and activities in the area.
Implementation Strategy
One of the central tenets of the development of the Conceptual Plan has been an implementation
strategy that stresses phased development and cooperation with existing landowners and the
private sector.
Adoption of the Downtown Conceptual Plan represents the beginning step in the process of
creating a new "downtown" for West Covina. While the Conceptual Plan sets forth standards
and guidelines, the Conceptual Plan itself has no legal force and effect of zoning. It does,
however, represent a commitment on the part of the City toward moving forward with steps
toward achieving the Conceptual Plan's objectives.
It is evident that implementation of the Downtown Conceptual Plan in the manner proposed will
have a significant cost and require key property owners and developers to work together with the
City to propose projects and pay for the needed infrastructure and improvements in a manner that
ZADowntown Master P1an\CC.Staff.Rpt.2.7.06.2.doc
Downtown Conceptual Plan '
February 7, 2006 - Page 3 ..
is financially viable. Some private developers and business operators have already expressed an
interest to the City in participating in the development of the "downtown" concept.
One of the first next steps should be to proceed with soliciting development ideas and proposals
from the private development community, as well as working to further develop a financial plan
to identify more specific strategies for financing the improvements and infrastructure. In
addition, the City will need to adopt new zoning for the area based on the Conceptual Plan and
perform the required environmental (CEQA) analysis.
ALTERNATIVES
Alternatives available to the Council include the following:
1. Adopt the draft Downtown Conceptual Plan and direct staff to begin the next steps of
soliciting proposals from the private development community, and preparing the
appropriate zoning and environmental review.
2. Give direction to staff regarding revisions to the Downtown Conceptual Plan and/or
additional analysis prior to further consideration.
Receive and file this report and take no further action.
FISCAL IMPACT
Excerpts from the economic analysis have been attached that identify the estimated costs of
public improvements needed to implement the Conceptual Plan, as well as anticipated revenues
that would be generated to the City and Community Development Commission. The overall
costs are estimated at $19.8 million, of which $14.7 million is the estimated cost (including land,
etc.) of a 400-space parking structure. Depending on the financing strategy, a significant portion
of this cost could be offset by developers whose projects would make use of the parking.
Overall revenues at buildout of the Conceptual Plan are estimated at $1.5 million. The majority
of this amount, $1.2 million, would be in the form of tax increment revenues to the Community
Development Commission.
Prepare. Douglas N. McIsaac
Planning Director
Attachment 1: List of Meetings & Presentations
Attachment 2: Estimated Cost of Public Investments
Attachment 3: Estimated Revenues
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ATTACHMENT 1
DOWNTOWN CONCEPTUAL PLAN
LIST OF MEETINGS & PRESENTATIONS
Date
Meeting / Presentation
April 11, 2005
Stakeholders meeting with business operators
April 11, 2005
Stakeholders meeting with property owners
April 14, 2005
Stakeholders meeting with property owners
April 14, 2005
Stakeholders meeting with business operators
May 4, 2005
1 st Community Workshop
June 3, 2005
Presentation to Chamber of Commerce "First Friday" Breakfast
August 24, 2005
Presentation to West Covina Lunch Rotary Club
September 9, 2005
2 nd COMMUnityWorkshop
October 18, 2005
Presentation to West Covina Lions Club
October 19, 2005
Presentation to West Covina Breakfast Rotary Club
October 19, 2005
Presentation to School Board/City Council Subcommittee
October 27, 2005
Presentation to Chamber of Commerce Board of Directors
November 10, 2205
Presentation to East San Gabriel Valley Japanese Community Center
November 14, 2005
3` Community Workshop
November 16, 2005
Presentation to San Gabriel Valley NAACP Chapter
Z:\Downtown Master Plan\CC.Staff.Rpt.2.7.06.Mtg.List.doe
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ATTACHMENT 2
15 750-2/ 1 /06—ERA/LA/DA W
GLENDORA AVENUE MASTER PLAN
ESTIMATES OF TOTAL COSTS OF PUBLIC INVESTMENTS
FOR INFRASTRUCTURE AND PUBLIC IMPROVEMENTS
(in 2006 dollar values)
(Drawn from Pages IV-13 and IV-14)
1) Public infrastructure and realignment/parking replacement
costs along Glendora Avenue $ 3,608,816++
2) Public infrastructure and realignment for State Street $ 1,522,204++
3) "Public" parking structure of 400 spaces (includes land
purchase, property maps, demolition; relocation, etc.) $14,687,950±
Estimated Total $19,818,970±
Notes:
A) Costs will escalate over time, due to continuing increases in costs of construction
materials.
B) Assumption is that land will be bought/sold/traded at $38.75 per square foot.
C) City and Agency oversight/management/administrative costs (at 8 to 10 percent) are not
included in this estimate.
D) Cost of borrowing funds/bond debt and amortization are not included in this estimate.
Source: Economics Research Associates.
ATTACHMENT3 15750-2/1/06--ERA/LA/DAW
GLENDORA AVENUE MASTER PLAN
ADDITIONAL ANNUAL REVENUES (ESTIMATES)
AT BUILDOUT
(in 2006 dollar values)
1)
Tax increment. to Agency
$1,214,855±
2)
Property tax to City — from assessed valuation frozen base
(very rough estimate)
$40,000+++
3)
Sales tax from net addition of 70,000 square feet
(1 percent of sales).
$245,000±
4)
Sales tax from potential additional business volumes
captured by existing retail and restaurants benefiting from
Master Plan additions
$40,000± _
5)
Additional business license tax from new businesses
$4,882± .
6)
No tax revenues anticipated from:
f-
A) Hotel (none planned)
B) Utilities (no tax)
C) Parking (no tax)
_
SUMMARY
1) Potential annual revenues to City (not counting
property tax from frozen base assessed valuation $289,882±
2) Potential net annual tax increment revenues to Agency $1,214,855± -
TAX INCREMENT CALCULATIONS —DISTRIBUTION (Estimates)
Total $1,491,530
A) 20 percent set -aside for Low/Mod Housing Fund $296,306±
B) 18± percent to "other taxing jurisdictions" $266,675±
C) Net available for economic development investments,
administrative costs, bond debt amortization, etc. $918,549±
Source: Economics Research Associates.
Page 1 of 2IX-
a/7 ob
Doug Mclsaac
From: Ted Slaught [tslaught@charlesdunn.com]
Sent: Tuesday, February 07, 2006 12:01 PM
To: Doug Mclsaac
Subject: Re: Downtown Conceptual Plan
Dear Doug,
Per our earlier conversation, I will be unable to attend this evening's City Council meeting to express my
support for moving forward with the Downtown Conceptual Plan. Accordingly, I would appreciate your
assistance in relaying the following comments to Mayor Sanderson and the balance of the City Council.
As you are aware, Hillcrest Lakes Associates L.P. has recently made a multi -million dollar investment in
the adjoining Lakes Entertainment Center, in anticipation of the City's pending plans for revitalization
and redevelopment of the Glendora Avenue downtown area. Although the City's planning process has
evolved from it's original concept, and taken longer than we originally anticipated, our investors and
tenants remain firmly in support of the Plan's core concept to create a vital, pedestrian oriented, mixed -
use downtown district on Glendora Avenue.
Implementation of this plan, which would bring much needed high quality housing, public space, and
specialty retail to the downtown area would serve to cement West Covina as the hub of the thriving San
Gabriel Valley. In no other location in the central San Gabriel Valley can one find a the type of
environment and demand for this type of pedestrian district, than in Downtown West Covina. As a
result of it's immediate proximity to existing office, entertainment, restaurants, shopping and major
highways, Glendora Avenue would undoubtedly evolve as the destination of choice for hundreds of
new residents, dozens of new businesses, and thousands of visitors seeking seeking an
energetic, downtown pedestrian oriented environment, in the heart of West Covina. As has been the
case in numerous other Southern California communities, implementation of the Downtown Plan would
also serve as a catalyst for significant investment in the neighborhoods surrounding the downtown
Glendora Avenue area.
To the extent the City elects to move forward with implementation of the Downtown Conceptual Plan,
our partners and investors are firmly committed to assist the City with the balance if it's planning efforts,
in the hope of participating with the City in future multi -million dollar Downtown projects.
We are very grateful for the opportunity the City has provided us to assist with the redevelopment of
Downtown West Covina, and are hopeful that we will be able to partner again with the City through the
implementation of it's Downtown Conceptual Plan.
I appreciate your assistance in forwarding the above comments to the Mayor and City Council, and look
forward to a ongoing and successful relationship with the City of West Covina.
Sincerely,
Ted Slaught
CHARLES DUNN COMPANY, INC.
800 W. 6th St., Suite 500
2/7/2006