01-20-2015 - Item 13 - Art in Public Places 13-01, Request to Release In-Lieu Fee Deposit, Plaza West Covina•
• City of West Covina
TO: Mayor and City Council
Memorandum
AGENDA
Item No.: 13
Date: January 20, 2015
FROM: Tom Mauk
Interim City Manager
BY: Jeff Anderson, AICP
Planning Director
SUBJECT: ART IN PUBLIC PLACES 13-01, REQUEST TO RELEASE IN -LIEU
FEE DEPOSIT
PLAZA WEST COVINA
RECOMMENDATION:
It is recommended that the City Council deny the request to release the Art in Public Places
In -Lieu Fee and retain the $322,120.07 deposit.
DISCUSSION:
Westfield proposed and received approval for two additions to the Plaza West Covina, both
located on the northerly fagade. Precise Plan No. 08-02 was approved by the Planning
Commission on June 24, 2008 to demolish 144,527 square feet of vacant retail space
(formerly Macy's Department Store) and construct 113,927 square feet of retail space and
30,600 square feet of restaurant space. Precise Plan No. 09-05 was approved by the Planning
Commission on March 9, 2010 to add 32,363 square feet of retail space. Both of the precise
plans required that the applicant comply with the Art in Public Places requirement of
providing artwork or the payment of an in -lieu fee in the amount of 1% of total project costs
(excluding land). The required fee for Precise Plan No. 08-02 was $171,240.07 and for
Precise Plan No. 09-05 was $150,880.00. The total in lieu fee is $322,120.07. ,
The West Covina Municipal Code (Chapter 17, Article 2) requires that the artwork be
installed prior to the issuance of a certificate of occupancy. The Planning Director may allow
a contribution of the required artwork valuation as a deposit to secure the installation of the
artwork and approve a certificate of occupancy. The following is the requirement of the
Municipal Code (Section 17-63).
Artwork contribution. When the project applicant has elected to fulfill the
requirements of this article in full or in part through an artwork contribution pursuant
to an approved art in public places application, the certificate of occupancy or final
building permit shall not be issued until the approved artwork(s) has been fully
installed and completed in a manner satisfactory to the planning director. At the
discretion of the planning director, an in lieu contribution in the amount of the
valuation of the approved artwork may be made as a deposit to secure the proper
installation of artwork subsequent to the issuance of a certificate of occupancy or final
building permit. Upon proper installation of the approved artwork, the deposit shall be
refunded. After one (1) year following the deposit of an in lieu contribution, the city
may elect to cancel the requirement for the approved artwork and retain the deposit as
fulfillment of the requirement for this article.
Westfield discussed several concepts of artwork that they were interested in pursuing. Staff
attended meetings with Westfield to discuss ideas. In August of 2013, an artwork concept
was submitted to develop an art park between Best Buy and Macy's. In order to allow
Westfield to move forward with the opening of the various tenants, staff signed off on
certificates of occupancy, but informed Westfield that the City would not sign off on the last
tenant space that was part of the two precise plans. That tenant space was Lucille's Bar-B-
Que. A letter was sent to Westfield on August 1, 2013 informing them that they could pay the
ZACase Files\Art in Public Places\2013\I3-01 Westfield\Staff Report.CC.1.20.15.doc
Art in Public Places Deposi •
January 20, 2015 - Page Two
in -lieu fee to secure the certificate of occupancy if they did not have artwork approved or
installed (Attachment No. 1). At the end of 2013, Westfield sold the Plaza West Covina to
Starwood, the current owner. Starwood was also informed of the issue (Attachment No. 2).
In order to allow for the opening of Lucille's, Starwood paid the in -lieu deposit on February
7, 2014 (Attachment No. 3). Lucille's Bar-B-Que was approved to open for business on
February 14, 2014.
On December 17, 2014, Planning staff spoke with Starwood about their desire for the City to
release the deposited funds. Starwood indicated that they would like to pursue a different
concept for artwork than had been submitted by Westfield. Staff indicated that the decision
on retaining or releasing the funds would be scheduled for an upcoming City Council
meeting. A letter was received from Starwood on January 13, 2015, requesting an additional
twelve months to prepare and complete artwork for the Plaza.
The Municipal Code allows for the deposit to be refunded once approved artwork is installed.
No additional artwork proposals have been submitted within the last year. The Municipal
Code allows the City to cancel the requirement for the artwork and retain the deposit to fulfill
the Art in Public Places requirement. The Municipal Code States that the "City" may elect to
retain the deposit, therefore it is being forwarded to the City Council for consideration.
Staff recommends that the City Council elect to retain the deposit. It has been more than six
years since Precise Plan No. 08-02 was approved and new tenants have been in operation for
several years (with the exception of Lucille's). Staff is also working on the Veteran's
Memorial artwork and there may be a need for additional funds to complete the memorial.
Currently there is a balance of $450,000 in the Art in Public Places fund.
LEGAL REVIEW:
The City Attorney has reviewed and approved this report.
FISCAL IMPACT:
The additional funds will allow the City to complete additional artwork at the Civic Center or
other sites in the City.
Plluqd by: Jeff Anderson
Planning Director
Mike Lee
Assistant City Manager/Community
Development Commission Director
Attachment No. 1 - Letter to Westfield (Brian Martini), dated 8/1/13
Attachment No. 2 - Letter to Starwood (Stephen Bamhouse), dated 1/23/14
Attachment No. 3 - Letter to Starwood (Brian Martini), dated 2/18/14
Attachment No. 4 — Letter from Starwood (Stephen Bamhouse), dated 1/13/15
ZACaseFlles\ArtinPublic Plaus\2013\13.01 Westfield\StaffRepon.CC.L20.15.doc
y.. ATTACHMENT NO. 1
Planning Department
Brian Martini
112 Plaza Drive
West Covina, CA 91790
August 1, 2013
Re: Art in Public Places Obligation related to Precise Plan 08-02 and 09-05
The Art in Public Places ordinance of the City of West Covina requires an applicant to
pay in -lieu fee of 1% of the total project cost, excluding land, or install artwork at a
similar cost. Based on the building permits issued for both phases of the development,
the Westfield art obligation is $322,120.07 ($171,240.07 for the first Precise Plan 08-02
and $150,880.00 for Precise Plan 09-05).
The Municipal Code (section 17-63) establishes the obligation and timing of the
installation of artwork. The applicant can pay die in -lieu contribution directly. The in -
lieu contribution is required to be paid prior to the issuance of grading or building
permits. In this case, the applicant has expressed an interest in installing artwork.
However, the installation must be completed to the satisfaction of the Planning Director
prior to the issuance of the final certificate of occupancy. The last outstanding certificate
of occupancy related to the processed precise plans is 1445 Plaza Drive (Lucille's
Snnokehouse Bar-B-Que). In such cases where the artwork has not been installed and the
applicant desires to obtain a final certificate of occupancy, the Municipal Code allows for
the in -lieu contribution to the deposited as a security for the installation of the artwork.
Once the artwork has been installed, the deposit shall be refunded. If the artwork has not
been installed within one year, die City may elect to cancel the requirement for the
installation of the artwork and retain the deposit.
The City is interested in 'working with Westfield to complete the installation of the
artwork. We recognize that Westfield has worked on a number of artwork concepts,
however, we are also mindful of the need to be in compliance with the Municipal Code.
If you have any questions, please contact me at (626) 939-8760.
Sincerely,
Fabiola ong
Senior Plamner
Approval and Roviewcd
Plane' gDirl .tor
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ATTACHMENT NO.2
PlanningDepartment
January 23, 2014
Stephen Barnhouse
Starwood Retail Partners
1 East Wacker Drive, Suite 3600
Chicago, IL 60601
Re: Art in Public Places Obligation related to Precise Plan 08-02 and 09-05
Pursuant to our discussion this morning, Starwood will be depositing a check in the
amount of $322,120.07 for the art obligation required based on the expansions completed
by Westfield. Based on the building permits issued for both phases of the development,
the art obligation is $171,240.07 for the Precise Plan 08-02 and $150,880.00 for Precise
Plan 09-05.
Once the City receives the check to secure the proper installation of artwork, the art
obligation will be satisfied. Moreover, this will allow the City to issue a certificate of
occupancy for Lucillds Smokehouse Bar-B-Que at the completion of their construction,
and allow the City to release the bond we currently hold in the amount of $171,240.97
The Municipal Code (section 17-63) establishes the obligation and timing of the
installation of artwork. In such cases where the artwork has not been installed and the
applicant desires to obtain a final certificate of occupancy, the Municipal Code allows for
the in -lieu contribution to the deposited as a security for the installation of the artwork.
Once the artwork has been installed, the deposit shall be refunded. If the artwork has not
been installed within one year, the City may elect to cancel the requirement for the
installation of the artwork and retain the deposit.
If you have any questions, please contact me at (626) 939-8423.
Sincerely,
i
Je Anderson
Planning Director
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ATTACHMENT NO.3
Brian Martini
112 Plaza Drive
West Covina, CA 91790
February 18, 2014
Re: Art in Public Places Obligation for Precise Plan 08-02 and 09-05
Dear Mr. Martini:
The City of West Covina has received the Westfield art obligation required for Precise
Plan 08-02 and 09-05 in the amount of $322,120.07 ($171,240.07 for the first Precise
Plan 08-02 and $150,880.00 for Precise Plan 09-05). This amount was received via
Automatic Clearing House (ACIT) on February 7, 2014 from Plaza West Covina. Based
on the payment of the fee, the City has approved a Certificate of Occupancy for the last
new tenant to occupy the floor area approved under the aforementioned precise plans.
The West Covina Municipal Code allows the approval of a Certificate of Occupancy if a
deposit is made in the amount of the valuation of the art on (WCMC 17-63). Once the
artwork has been installed, the deposit shall be refunded. If the artwork has not been
installed within one year, the City may elect to cancel the requirement for the installation
of the artwork and retain the deposit. The end of the one year period will be February 7,
2015.
Please contact me if you wish to continue with the processing of the artwork application.
I can be reached at (626) 939-8423..
Sincerely,
JrEnderson
Planning Director
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January 13, 2015
ATTACHMENT NO.4
Jeff Anderson and
City Council, City of West Covina
1444 West Garvey Avenue South
West Covina, CA 91790
Dear Mr. Anderson and Council Members,
Starwood Retail Property Management ("Starwood") and I truly appreciate the
opportunity to meet and discuss the public art project formerly initiated under the
ownership of Westfield Group of Plaza West Covina and still understood to be a
responsibility under the new ownership managed by Starwood. First let me say that I
understand your frustration and disappointment with the fact that this project is still not
completed at the plaza. We share in your frustration.
As we took ownership of the property in November of 2013, we learned of the art project
and that it was being hastily put together in an attempt to complete the project shortly
after the change in ownership. The City of West Covina had not yet approved the plans,
yet we learned that the artists had moved forward with drawings and purchase of
materials under a contract with the former owner, in which half of the contract price was
paid up front. A pocket park with a very small stage and metal sculptures/figures was
proposed for the entry to the mall between Best Buy and Macy's.
Shortly thereafter Starwood went to the City of West Covina with our concerns for
placing the project at this location and worked with the city to stay the project and gain
some time to work with the artists to place the project in another location or to determine
a more suitable project that would be more interactive and entertaining to the
constituents of West Covina and not take up space that could be income and sales tax
producing. Starwood put up the full amount of the project with the city, $332,000, to give
us the opportunity to work with the artists and pull together plans that better fit the
preferred direction.
Unfortunately, the artists originally contracted to create the project have refused to work
with us or even sit down to discuss how to move this project forward. Each time we
have pursued opportunities to meet and discuss the project the artists have discharged
their attorney and then refused to meet with us. We have filed suit against the artists'
group demanding an accounting of the funds previously paid to them as well as a
termination of the contract.
t East Wacker Drive
Suite 2600
Chicago, Illinois 60601
A. t A NO*
RETAIL PARTNERS
It is for this reason we come to the West Covina City Council to ask for an extension of
time to complete the art project and present some concepts that may be of more interest
to the city. Concepts that will provide a more interactive experience to the citizens of
West Covina and give them more reasons to come to the Plaza and stay longer to shop
and enjoy the atmosphere. Accordingly, we are requesting an additional twelve months
to complete the art project and appreciate your consideration of this request.
Thank you again and please don't hesitate to call on me with any questions. My direct
line is 312.242.3196 and my cell phone is 913.424.4222.
Respectfully,
PLAZA WEST COVINA LP,
a Delaware limited partnership
BY ITS AGENT: STARWOOD RETAIL PROPERTY MANAGEMENT, LLC,
a Delaware limited liability company
Steve Barnhouse
2015.01.14 08:57:30
By:-06'00'
Name: Stephen Barnhouse, CRX
Title: Regional Director, Property Management
cc: Laurie Paquette
Sandra Kelly
Allison Mack
Dan Whalen
t East Wacker Drive
Suite 2600
Chicago, Illinois 6o6oi