By Jason Islas
Lookout Staff

February 17, 2012 -- The Village, one of Santa Monica's largest mixed-use housing complexes and a centerpiece in the redevelopment of the Civic Center, got underway with a ceremonial ground breaking Thursday.

The $350-million, 3.7-acre complex will include three residential buildings taller than 75 feet with 158 condominiums, 160 affordable housing units and ten live/work residences for artists.

The project -- which sits on City-owned land adjacent to the Rand Corporation headquarters and fronting Ocean Avenue -- also will include on-site open space, a public plaza, parking, shops and restaurants.

The Village is part of a major transformation of the area that includes the renovation of the Civic Auditorium, the building of the Palisades Garden Walk and Town Center and the extension of Olympic Boulevard.

“This is going to be an amazing place,” said Mayor Richard Bloom. “By dedicating over half of the residences in the Village to Santa Monica’s working families, we are re-iterating that our City is an accessible and welcoming community that fosters economic diversity.”

The ground breaking is a culmination of six years of negotiations between Related California – the developer – and the City. The project scaled its final hurdle last October when the City Council narrowly approved an amendment that will allow Related the option of extending their condo leases from 99 years to 149 years.

“As a part of the public/private partnership, the City committed to contribute the $19.4 million in ground lease proceeds being paid by Related to fulfill the affordable housing component of the project,” Bloom said. “This assistance will be repaid over time from the income produced by the rental units.

"Also, to ensure that the City receives a fair return on their investment in this project, Related has agreed to provide the City with a share of the revenues from the condominium component if the sales volumes outpace current projections," Bloom said.

In June, the plans for the Village got complimentary reviews from City staff, who said it is "expressive of good taste, good design, and in general contributes to the image of Santa Monica as a place of beauty, creativity and individuality.”

The complex is divided into three sites with buildings that range from four to ten stories in height and provide plenty of open spaces meant to “activate the street,” according to Bill Witte, president of Related California.

Bloom celebrated what he called the unique nature of the Village.

“In this place, we will soon see a pioneering mix of market rate condominiums, affordable rental units, live-work units, and ground floor commercial space on a long-term ground lease,” he said.

Even in lean times, Santa Monica's oceanfront property continues to be a draw to developers, and the Village is a good indicator of how strong that draw is, City officials said.