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ARTICLE 4.5
TRANSFER OF FLOOR AREA RIGHTS – CENTRAL CITY COMMUNITY PLAN AND CITY CENTER REDEVELOPMENT PROJECT AREAS
 
(Article and Title Amended in Entirety, Ord. No. 181,574, Eff. 3/27/11.)
 
 
Section
14.5.1   Scope.
14.5.2   Purpose.
14.5.3   Definitions.
14.5.4   Prohibition.
14.5.5   Early Consultation Session.
14.5.6   Approval of Transfers – Authority and Procedures for Projects Involving Transfers of 50,000 Square Feet or Greater.
14.5.7   Director’s Determination.
14.5.8   General Requirements.
14.5.9   Public Benefit Payment.
14.5.10   TFAR Transfer Payment.
14.5.11   Payments and Vesting.
14.5.12   Public Benefit Payment Trust Fund.
 
 
SEC. 14.5.1. SCOPE.
 
   A.   This article implements the Transfer of Floor Area Rights (TFAR) in the Central City TFAR Area, as defined herein, and as permitted by Sections 512.4 and 512.5 of the City Center Redevelopment Plan during the period of effectiveness of said plan.
 
   B.   This article provides the exclusive procedure to Transfer Floor Area Rights for all Projects involving any single Transfer of Floor Area Rights within the Central City TFAR Area. This article establishes separate procedures for transfers of less than 50,000 square feet and transfers of 50,000 square feet or greater.
 
   C.   This article facilitates the implementation of the Central City Community Plan and the City Center Redevelopment Plans.
 
   D.   This article provides the procedure for allocating Public Benefit Payments and TFAR Transfer Payments derived from the Transfer of Floor Area Rights.
 
 
SEC. 14.5.2. PURPOSE.
 
   It is the purpose of this article to establish standards and approval procedures for the Transfer of Floor Area Rights in the Central City TFAR Area; to effect maximum coordination between the Community Redevelopment Agency and the City; to provide for the keeping of records of available Floor Area Rights within the Central City TFAR Area; to provide for an accounting of allocations of Public Benefit Payments and TFAR Transfer Payments derived from the Transfer of Floor Area Rights; and to facilitate those Transfers that generate Public Benefits.
 
 
SEC. 14.5.3. DEFINITIONS.
 
   The following terms, whenever used in this article, shall apply only to the Transfer of Floor Area Rights procedures in this article and shall be defined as set forth below. Other terms used in this article shall have the meanings set forth in Section 12.03 of this Code, if defined there.
 
   Administrator means the chief executive officer of the Agency and their designee.
 
   Agency means the Community Redevelopment Agency of the City of Los Angeles.
 
   Agency Board means the Board of Commissioners of the Community Redevelopment Agency of the City of Los Angeles.
 
   Applicant means the owner of a Receiver Site who has submitted a proposed Transfer Plan to the Agency or the Department of City Planning.
 
   Appraisal means an economic valuation of the Receiver Site submitted by the Applicant, which (a) has been prepared by an MAI appraiser with at least five years experience in appraising property in the City and (b) sets forth the fair market value of the Receiver Site (i) as of the date the application was submitted and (ii) as if the Receiver Site were vacant and used for its highest and best use under all then current zoning and planning restrictions and Agency policies affecting the Receiver Site.
 
   Buildable Area means the same as Lot Area, with the following exception: for the purposes of computing the maximum Floor Area Rights available through the approval of a Transfer Plan for a Transit Area Mixed Use Project, as defined herein, the buildable area shall include the lot area plus the area between the exterior lot lines and the centerline of any abutting public right-of-way.
 
   Central City TFAR Area means those portions of the Central City Community Plan Area, including portions of the City Center Redevelopment Project Area, as shown on Map A, dated April 30, 2010, and attached to Council File No. 10-1175, generally bounded by: U.S. Highway 101 on the north; Alameda Street, Los Angeles Street, San Pedro Street, and Main Street on the east; the Santa Monica Freeway (Interstate 10) on the south; and the Harbor Freeway (110 Freeway) and Hill Street on the west.
 
   City Council means the City Council of the City of Los Angeles.
 
   Commission means the City Planning Commission of the City of Los Angeles.
 
   Community Plan means the Central City Community Plan, a part of the General Plan of the City of Los Angeles, and including amendments to the Community Plan.
 
   Department means the Department of City Planning.
 
   Donor Site means a site within the Central City TFAR Area from which Floor Area Rights are transferred pursuant to the provisions of this article.
 
   Floor Area Deviation means the Transfer of Floor Area of less than 50,000 square feet as determined by the Director.
 
   Floor Area Ratio (FAR) means the Floor Area of a building divided by the Lot Area of the lot (prior to any dedications) upon which it is located. Notwithstanding the above, the maximum Floor Area Ratio of a Transit Area Mixed Use Project shall mean the Floor Area of a building divided by the Buildable Area.
 
   Floor Area Rights means the ability to construct additional Floor Area within a Project, pursuant to an approved Transfer Plan, in excess of the amount of Floor Area that Project would be allowed based on its Lot Area, or, in the case of a Transit Area Mixed Use Project, the Buildable Area.
 
   High-Density Floor Area Ratio Factor means a denominator of six and is used in calculating the amount of any TFAR Transfer Payment.
 
   Lot Area means the total horizontal area within the lot lines of a lot (prior to any dedication).
 
   Project means a building or structure or structural alteration or enlargement of an existing building or structure on a Receiver Site within the Central City TFAR Area.
 
   Public Benefits means amenities provided to the public including, but not limited to, providing for affordable housing; public open space; historic preservation; recreational, cultural, community and public facilities; job training and outreach programs; local hiring; payment of prevailing wages; affordable child care; streetscape improvements; sustainability features; public arts programs; homeless services programs; or public transportation improvements.
 
   Public Benefit Payment means that dollar sum established by the application of the formula set forth in Section 14.5.9 of this Code.
 
   Public Benefit Payment Trust Fund means that certain interest-bearing Trust Account administered by the City Clerk’s Office designated as CB Public Benefit Program Fund 5158, from which funds may be distributed as set forth in Section 14.5.12 of this Code.
 
   Receiver Site means a site within the Central City TFAR Area, which receives Floor Area Rights pursuant to the provisions of this article.
 
   Redevelopment Plan means the City Center Redevelopment Project adopted by Ordinance No. 174,593 on May 15, 2002, or as subsequently amended.
 
   Redevelopment Project Area means the City Center Redevelopment Project Areas, as described in the City Center Redevelopment Plans.
 
   TFAR Transfer Payment means the payment made by the owner of a Receiver Site in exchange for the Agency’s or City’s Transfer of Floor Area Rights to a Receiver Site pursuant to the valuation method set forth in Section 14.5.10 of this Code.
 
   Transfer means the conveyance of unused allowable Floor Area of a lot from a Donor Site to a Receiver Site, which is approved in accordance with the requirements of this article.
 
   Transfer Plan means a plan that identifies and describes the Donor Site(s), Receiver Site(s), the amount of Floor Area Rights to be transferred and the Public Benefit Payment.
 
   Transit Area Mixed Use Project means any Project or portion of a Project in the Central City TFAR Area that: (1) provides floor area for at least two different land uses, such as commercial office and commercial retail, commercial office and multi-family residential, or commercial retail and hotel, or any other combination of uses; (2) is located within 1500 feet of a fixed rail transit station, as measured from the exterior lot line to the nearest station entrance; and (3) meets the standards and guidelines in the Downtown Design Guide.
 
 
SEC. 14.5.4. PROHIBITION.
 
   A.   No building permit shall be issued for a Project on any lot within the Central City TFAR Area, which is not located within the City Center Redevelopment Project Area, that exceeds a Floor Area Ratio greater than 6:1 or 3:1, as set forth by the applicable zoning and in the Community Plan, except for the following:
 
   1.   Development permitted by Section 12.23 A. of this Code, when in conformance with the applicable height district designations of the zoning and the Community Plan; and
 
   2.   Development permitted as a result of a Transfer of Floor Area Rights or a Director’s Determination for a Floor Area Deviation approved pursuant to this article; and
 
   3.   Development permitted as a result of a Transfer of Floor Area Rights pursuant to Section 418, or a density variation pursuant to Section 437, of the former Central Business District Redevelopment Plan, approved by the Agency Board or Commission prior to June 21, 1988; and
 
   4.   Development permitted as a result of a Transfer of Floor Area Rights or density variation of less than 50,000 square feet, approved by the Agency Board or the Commission, pursuant to the former Central Business District Redevelopment Plan prior to amendments adopted May 1, 2002, or the Amended Central Business District Redevelopment Plan prior to its expiration on July 18, 2010; and
 
   5.   Residential Projects that exceed the number of dwelling units or Floor Area permitted by the zoning or the Community Plan as a result of a density or Floor Area bonus received pursuant to Sections 12.22 A.25., 12.22 A.29., 12.24 U.26. or 12.24 U.27. of this Code.
 
   B.   No building permit shall be issued for a Project, on any lot within the City Center Redevelopment Project Area, which exceeds a Floor Area Ratio greater than 6:1 or 3:1, as set forth with respect to a particular lot in Section 512 of the Redevelopment Plan and in the Community Plan, except for the following:
 
   1.   Development permitted by Sections 512.2 (Rehabilitation and/or Remodeling of Existing Buildings) and 512.3 (Replacement of Existing Buildings) of the Redevelopment Plan, when in conformance with the applicable height district designations of the Redevelopment Plan and the Community Plan; and
 
   2.   Development permitted as a result of a Transfer of Floor Area Rights approved pursuant to this article; and
 
   3.   Development permitted as a result of a Transfer of Floor Area Rights pursuant to Section 512.7, or density variation of less than 50,000 square feet, approved by the Agency Board or Commission pursuant to Sections 512.6 and 520 of the Redevelopment Plan; and
 
   4.   Residential Projects that exceed the number of dwelling units or Floor Area permitted by the zoning or the Community Plan as a result of a density or Floor Area bonus received pursuant to Sections 12.22 A.25., 12.22 A.29., 12.24 U.26. or 12.24 U.27. of this Code.
 
 
SEC. 14.5.5. EARLY CONSULTATION SESSION.
 
   For Receiver Sites within the Central City TFAR Area, which are not located within the City Center Redevelopment Project Area, Department staff shall concurrently consult with the Mayor’s Office, the City Council Office for the City Council District in which the Receiver Site is located, and the Chief Legislative Analyst, at the earliest reasonable point in the design and development of any Project applying for a Transfer.
 
   For Receiver Sites within the City Center Redevelopment Project Area, Agency staff shall concurrently consult with the Department of City Planning, the Mayor’s Office, the City Council Office for the City Council District in which the Receiver Site is located, and the Chief Legislative Analyst, at the earliest reasonable point in the design and development of any Project involving a Transfer.
 
   In either case, this consultation shall be known as an Early Consultation Session. The Early Consultation Session shall be used to identify any development issues regarding Project approval, including but not limited to: parking and transportation requirements, Transfers, and Public Benefits. An early consultation shall be accomplished at the earliest reasonable time prior to approval of a Transfer Plan for the Project.
 
 
SEC. 14.5.6. APPROVAL OF TRANSFERS – AUTHORITY AND PROCEDURES FOR PROJECTS INVOLVING TRANSFERS OF 50,000 SQUARE FEET OR GREATER.
 
   The City Council, acting on recommendations of the Commission or Agency Board, as required, shall have the authority to grant Transfers of Floor Area Rights of 50,000 square feet or greater. A Transfer to any Project in the City Center Redevelopment Project Area shall not, by itself, require an Owner Participation Agreement or Disposition and Development Agreement, or other similar agreement that involves the application of Agency policies.
 
   A.   Projects Involving a Transfer on a Receiver Site within the Central City TFAR Area which is not Located within the City Center Redevelopment Project Area.
 
   1.   Application. An Applicant seeking a Transfer shall file a request for approval of a Transfer with the Department on a form prescribed by the Director of Planning. The request shall be accompanied by a proposed Transfer Plan. The Transfer Plan shall be the only mechanism for approving the Transfer for any Project involving a Transfer of Floor Area Rights of 50,000 square feet or greater, pursuant to this article. The Department shall forward a copy of the application and Transfer Plan to the Mayor’s Office, the City Council Office for the City Council District in which the Receiver Site is located, and the Chief Legislative Analyst within 7 calendar days of receiving the application. For purposes of this section, an application shall be deemed to be complete when the Department has received sufficient information with which to prepare an initial study to assess the environmental impacts of the proposed Project.
 
   2.   Action by Commission. The Director shall issue a report to the Commission recommending approval, approval with conditions or disapproval of the request for Transfer, including the Public Benefit Payment and the TFAR Transfer Payment to be provided, with the recommendation to be based solely upon the degree that the Transfer Plan complies with the findings and conditions set forth in this section. After reviewing the Director’s report, the Commission must make the following findings in order to recommend approval to the City Council:
 
   (a)   Findings.
 
   (1)   The increase in Floor Area generated by the proposed Transfer is appropriate with respect to location and access to public transit and other modes of transportation, compatible with other existing and proposed developments and the City’s supporting infrastructure, or otherwise appropriate for the long-term development of the Central City;
 
   (2)   The Transfer serves the public interest; and
 
   (3)   The Transfer is in conformance with the Community Plan and any other relevant policy documents previously adopted by the Commission or the City Council.
 
   (b)   Conditions of Approval.
 
   (1)   The Transfer shall provide a Public Benefit Payment, and, if applicable, a TFAR Transfer payment in conformance, respectively, with Section 14.5.9 and Section 14.5.10 of this Code;
 
   (2)   Transfer must comply with any urban design standards and guidelines adopted by the City Planning Commission for the area, including the Downtown Design Guide, and other applicable design guidelines;
 
   (3)   The Commission may require additional conditions for the Transfer to ensure consistency with the purposes and objectives of the Community Plan.
 
   (c)   Commission Hearing.
 
   (1)   A public hearing on the proposed Transfer for a Project shall be held by the Commission in accordance with the procedures set forth in Section 12.24 D. of this Code.
 
   (d)   Time for the Commission to Act.
 
   (1)   Commission shall act upon any proposed Transfer for a Project within 75 calendar days from the date of submittal to it of the Director’s report and recommendation on the Transfer Plan. This time limit may be extended by mutual consent of the Applicant and the Commission. The Commission shall forthwith transmit a copy of its action to the Applicant and any other person requesting notice in writing. If the Commission fails to act on the proposed Transfer within 75 calendar days, the request shall be automatically submitted to the City Council for its action.
 
   3.   Appeals.
 
   (a)   Filing of an Appeal. If the Commission recommends disapproval of a request, in whole or in part, its action on any disapproved portion shall be final unless an appeal is taken to the City Council. The Applicant may appeal any disapproval within 15 calendar days after the Commission mails its decision to the Applicant by filing the appeal with the City Clerk on a form prescribed by the Commission.
 
   (b)   Appellate Decision – Public Hearing and Notice. Before the Council acts on the appeal, it shall hold a public hearing. The City Clerk shall set the matter for hearing, giving notice by mail of the time, place and purpose of the hearing to the applicant and to any interested party who has requested in writing to be so notified. The notice shall be mailed at least ten calendar days prior to the hearing.
 
   (c)   Time for Appellate Decision. The Council shall make its decision within 75 calendar days after the expiration of the appeal period. The 75 day time limit to act on an appeal may be extended by mutual written consent of the applicant and the Council. If the Council fails to act within this time limit, the failure shall constitute a denial of the application or disapproval of the initial request.
 
   B.   Projects Involving a Transfer on a Receiver Site within the City Center Redevelopment Project Area.
 
   1.   Application. An Applicant seeking a Transfer shall file a request for approval of a Transfer with the Agency on a form prescribed jointly by the Director of Planning and the Administrator. The request shall be accompanied by a proposed Transfer Plan. The Transfer Plan shall be the only mechanism for approving the Transfer for any Project involving a Transfer of Floor Area Rights of 50,000 square feet or greater, pursuant to this article. The Agency shall forward a copy of the application and Transfer Plan to the Mayor’s Office, the City Council Office for the City Council District in which the Receiver Site is located, the Department of City Planning and the Chief Legislative Analyst within 7 calendar days of receiving the completed application.
 
   2.   Action by Agency Board. The Administrator shall issue a report recommending approval, approval with conditions or disapproval of the request for Transfer, including the Public Benefit Payment and the TFAR Transfer Payment to be provided, with the recommendation to be based solely upon the degree that the Transfer Plan complies with the findings and conditions set forth in this section. After reviewing the Administrator’s report, the Agency Board shall make the following findings in order to approve a Transfer:
 
   (a)   Findings.
 
   (1)   The increase in Floor Area generated by the proposed Transfer is appropriate with respect to location and access to public transit and other modes of transportation, compatible with other existing and proposed developments and the City’s supporting infrastructure, or otherwise determined to be appropriate for the long-term development of the Central City;
 
   (2)   The Project is consistent with the purposes and objectives of the Redevelopment Plan;
 
   (3)   The Transfer serves the public interest by complying with the requirements of Section 14.5.9 of this Code; and;
 
   (4)   The Transfer is in conformance with the Community Plan and any other relevant policy documents previously adopted by the Commission or the City Council.
 
   (b)   Condition of Approval.
 
   (1)   The Transfer shall provide a Public Benefit Payment, and, if applicable, a TFAR Transfer payment in conformance, respectively, with Section 14.5.9 and Section 14.5.10 of this Code.
 
   (2)   The Transfer must comply with any applicable urban design standards and guidelines adopted for the area, including the Downtown Design Guide.
 
   3.   Review of Agency Board’s Disapproval or Failure to Act. If the Agency Board disapproves a request for approval of a Transfer for a Project or fails to act on the request within 12 months after the submission of a completed request for approval of a Transfer to the Agency, the Applicant may request review of the action of the Agency Board to the Commission, the initial decision-maker for the City, in accordance with this subdivision. For purposes of this subdivision, a request to file an application shall be deemed to be complete when the Agency has received sufficient information with which to assess the environmental impacts of the proposed Project.
 
   (a)   A request for review shall be filed with the Commission no later than 20 calendar days after the earlier of: (i) the date of disapproval of a request for approval of a Transfer, or (ii) 12 months after the submission to the Agency of a completed request for approval of a Transfer.
 
   (b)   The request for review shall include the proposed Transfer Plan for a Project, and any documentation received by the Applicant from the Agency Board disapproving the request for approval of the Transfer. The request for review shall specify in detail the grounds for the review. The request for review shall include other information as the Commission may request.
 
   (c)   The Commission shall act on the request for review within 75 calendar days after receipt of the request for review. The Commission shall determine whether the Agency Board acted reasonably, in light of all the circumstances, in disapproving or failing to act on the request for approval of a Transfer. In the event the Commission fails to act within 75 calendar days after receipt of the request for review, the request for review shall be automatically submitted to the City Council for its action.
 
   (d)   If the Commission finds for the Applicant on any matter in dispute, the Commission shall remand the matter to the Agency Board for further action consistent with the Commission’s decision. The Commission may impose conditions on the remanded request as it deems necessary to accomplish the purposes and objectives of this article. Upon remand, the Agency Board shall complete its proceedings with respect to the proposed Transfer in a manner that is consistent with the Commission’s action on the matter, including any additional conditions it deems necessary. If the Agency Board fails to approve the request for approval of the Transfer within 90 calendar days after the Commission remands the matter to it, the Applicant may submit the request directly to the Commission without Agency Board approval. Thereafter, the Commission shall proceed pursuant to this Section 14.5.6.
 
   (e)   If the Commission upholds the Agency Board's action or failure to act, the Applicant may appeal the action of the Commission by filing a written appeal with the City Council. The City Council shall determine whether the Agency Board acted reasonably in light of all of the circumstances in disapproving or failing to act on the request for approval of the Transfer. Any appeal to the City Council shall be filed with the City Clerk within 20 calendar days after the Commission’s action, and shall contain the proposed Transfer Plan and the record of the proceedings before the Agency Board and the Commission.
 
   (f)   If the City Council finds for the Applicant on any matter in dispute, the City Council shall remand the matter to the Agency Board to complete its proceedings with respect to the proposed Transfer in a manner that is consistent with the City Council’s action on the matter. The City Council may impose conditions on the remanded request as it deems necessary to accomplish the purposes and objectives of this article.
 
   4.   Commission Review of Agency Board Approval. If the Agency Board approves a request for an approval of a Transfer for a Project, the Agency and the Applicant shall jointly submit the proposed Transfer Plan for the Project to the Commission, the initial decision-maker for the City, after approval of the request by the Agency Board.
 
   The Commission may recommend approval, conditional approval or disapproval of the Transfer for a Project.
 
   (a)   Findings. In acting on a Transfer for a Project, the Commission shall make the findings in Subsection B.2.(a) of this Section 14.5.6 .
 
   (b)   Conditions of Approval.
 
   (1)   The Transfer shall provide a Public Benefit Payment, and, if applicable, a TFAR Transfer payment in conformance, respectively, with Section 14.5.9 and Section 14.5.10 of this Code; and;
 
   (2)   The Commission may require additional conditions for the Transfer to ensure consistency with the purposes and objectives of the Redevelopment Plan and the Community Plan, and to secure an appropriate development in harmony with the General Plan.
 
   (c)   Commission Hearing. A public hearing on the proposed Transfer for a Project shall be held by the Commission in accordance with the procedures set forth in Section 12.24 D. of this Code.
 
   (d)   Commission Action.
 
   (1)   The Commission shall act upon any proposed Transfer for a Project within 75 calendar days from the date of submittal to it of the Agency’s Board approved Transfer Plan. This time limit may be extended by mutual consent of the Applicant and the Commission. The Commission shall forthwith transmit a copy of its action to the Applicant, the Agency Board and any other person requesting notice in writing. If the Commission fails to act on the proposed Transfer within 75 calendar days, the request shall be automatically submitted to the City Council for its action.
 
   (2)   If the Commission recommends disapproval of a request, in whole or in part, its action on any disapproved portion shall be final unless an appeal is taken to the City Council. The Applicant may appeal any disapproval within 15 calendar days after the Commission mails its decision to the Applicant by filing the appeal with the City Clerk on a form prescribed by the Commission.
 
   (e)   Council Action.
 
   (1)   The City Council may approve, conditionally approve or disapprove a proposed Transfer for a Project by a majority vote. In acting on the Transfer, the City Council shall make findings in support of its decision. The City Council shall not approve or conditionally approve a Transfer unless it finds that the development resulting from the Transfer meets each of the standards set forth in Subsection A.2.(a) and A.2.(b) or B.2.(a) and B.2.(b) of this section, as applicable.
 
   (2)   The Council may impose conditions as it deems appropriate to accomplish the purposes and objectives of the Redevelopment and Community Plans and to assure that the development resulting from the Transfer meets the standards set forth in Subsection A.2.(a) and A.2.(b) or B.2.(a) and B.2.(b) of this section, as applicable.
 
   (f)   Mayoral Action.
 
   (1)   When the City Council approves or conditionally approves a proposed Transfer for a Project, the matter together with the files and reports shall forthwith be transmitted to the Mayor. The Mayor may approve or disapprove the proposed Transfer within ten calendar days of its presentation to the Mayor. This action shall be based solely upon the administrative record and whether the Mayor believes the proposed Transfer conforms with the requirements for approval set forth in this section. If the Mayor disapproves the proposed Transfer, the Mayor shall return the matter to the City Clerk for presentation to the City Council, together with the objections in writing. The City Council, within 60 calendar days after the matter has been returned to it, may override the disapproval by a two-thirds vote.
 
   (2)   If the City Council fails to override the Mayor’s disapproval within the 60 calendar days, the Mayor's disapproval shall constitute a denial of the proposed Transfer. If the Mayor fails to return the matter to the City Clerk within ten calendar days of the presentation to the Mayor, the approval of the proposed Transfer shall become final.
 
 
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