By Jason Islas
Lookout Staff

November 18, 2011 -- The Planning Commission on Wednesday unanimously accepted the most recent design for a new building at a prime location in Downtown Santa Monica, holding firm on the contentious issue of community benefits.

The commission voted to require the developer to pay the $175,000 recommended by staff for transportation infrastructure improvements, namely to help create bike lanes and prepare for the coming of the Expo line.

The commission, which last month rejected a design by David Forbes Hibbert for the 56-unit residential building at the corner of Fourth and Broadway, accepted a new design by architect Michael Folonis, who recently resigned from the Architectural Review Board (ARB) due to conflicts of interest.

Architect Michael Folonis' design

“Last time this project came to us, we all struggled" with the design, Commissioner Richard McKinnon said Wednesday. “But tonight, no one is struggling with the design.”

Chair Jim Ries said, “I think it was appropriate in this case to lay down a gauntlet that says, 'We really want high quality designed projects.'”

“We should be commended for that and not questioned that we overstepped our authority,” Ries said about the Commission's rejection of the original design.

Although the new design generally met the commission's approval, the debate over how much the developer would be required to give in community benefits continued from the previous meeting.

“What we're asking you to do is make some public investment,” said McKinnon.

The question before the commission was not whether the developer should make a public investment but what the public investment should be.

Chris Harding, a land-use attorney representing the developer, argued that $50,000 is a reasonable amount because it is comparable to what other developments in the area – at Fifth Street and Arizona Avenue as well as the Agensys project – were paying.

Harding has argued that the City should consider the developer's decision to build the affordable housing on site – rather than paying the in-lieu fee – as a community benefit, because the cost of building the on site affordable units is approximately $1 million more than paying the in-lieu fee.

However, McKinnon argued that $175,000 is a low price to pay considering the property's proximity to the Expo line, important bike lanes and the coming Colorado Esplanade. Commissioner Jennifer Kennedy agreed.

“The fee "could easily be $300,000 or $400,000,” she said.

Commissioner Ted Winterer argued that although the developer is contributing to the community, they are also reaping plenty of benefits.

“I appreciate that they are doing the [affordable] housing on site,” Winterer said. But, he added, “they're getting a lot out of this site. They don't have to put in parking, and they are getting substantial height and density out of this site.”

He said that based on the site's location, the recommended $175,000 plus the on-site affordable housing was “the bare minimum” contribution.

The development agreement will still have to go before the City Council for final approval, but Chair Jim Ries echoed the Commission's sentiments when he said, “I'm ready to move forward with this project.”