AN ADVISORY SERVICES PANEL REPORT North...

A N A D V I S O R Y S E R V I C E S P A N E L R E P O R T

North Hollywood Los Angeles, California

Urban LandInstitute$

North HollywoodLos Angeles, CaliforniaTransit and the Arts in NoHo: Building a Vibrant Community

January 25–30, 2004An Advisory Services Panel Report

ULI–the Urban Land Institute1025 Thomas Jefferson Street, N.W.Suite 500 WestWashington, D.C. 20007-5201

An Advisory Services Panel Report2

ULI–the Urban Land Institute is a non-profit research and education organiza-tion that promotes responsible leadership in the use of land in order to enhance

the total environment.

The Institute maintains a membership represent-ing a broad spectrum of interests and sponsors awide variety of educational programs and forumsto encourage an open exchange of ideas and shar-ing of experience. ULI initiates research thatanticipates emerging land use trends and issuesand proposes creative solutions based on thatresearch; provides advisory services; and pub-lishes a wide variety of materials to disseminateinformation on land use and development.

Established in 1936, the Institute today has morethan 20,000 members and associates from 70 coun-tries, representing the entire spectrum of the landuse and development disciplines. Professionals rep-

resented include developers, builders, propertyowners, investors, architects, public officials, plan-ners, real estate brokers, appraisers, attorneys,engineers, financiers, academics, students, andlibrarians. ULI relies heavily on the experience ofits members. It is through member involvementand information resources that ULI has been ableto set standards of excellence in developmentpractice. The Institute has long been recognizedas one of America’s most respected and widelyquoted sources of objective information on urbanplanning, growth, and development.

This Advisory Services panel report is intendedto further the objectives of the Institute and tomake authoritative information generally avail-able to those seeking knowledge in the field ofurban land use.

Richard M. RosanPresident

About ULI–the Urban Land Institute

©2004 by ULI–the Urban Land Institute1025 Thomas Jefferson Street, N.W. Suite 500 WestWashington, D.C. 20007-5201

All rights reserved. Reproduction or use of the whole or anypart of the contents without written permission of the copy-right holder is prohibited.

ULI Catalog Number: ASH068

Cover illustration by: David Molina of Creative Capers Enter-tainment, Inc. ©Summit Design International, LLC.

Text photos by Zane Segal.

Los Angeles, California, January 25–30, 2004 3

The goal of ULI’s Advisory Services Programis to bring the finest expertise in the realestate field to bear on complex land use plan-ning and development projects, programs,

and policies. Since 1947, this program has assem-bled well over 400 ULI-member teams to helpsponsors find creative, practical solutions forissues such as downtown redevelopment, landmanagement strategies, evaluation of develop-ment potential, growth management, communityrevitalization, brownfields redevelopment, militarybase reuse, provision of low-cost and affordablehousing, and asset management strategies, amongother matters. A wide variety of public, private,and nonprofit organizations have contracted forULI’s Advisory Services.

Each panel team is composed of highly qualifiedprofessionals who volunteer their time to ULI.They are chosen for their knowledge of the paneltopic and screened to ensure their objectivity.ULI panel teams are interdisciplinary and typi-cally include several developers, a landscapearchitect, a planner, a market analyst, a financeexpert, and others with the niche expertiseneeded to address a given project. ULI teamsprovide a holistic look at development problems.Each panel is chaired by a respected ULI mem-ber with previous panel experience.

The agenda for a five-day panel assignment is in-tensive. It includes an in-depth briefing day com-posed of a tour of the site and meetings with spon-sor representatives; a day of hour-long interviewsof typically 50 to 75 key community representa-tives; and two days of formulating recommenda-tions. Many long nights of discussion precede thepanel’s conclusions. On the final day on site, thepanel makes an oral presentation of its findingsand conclusions to the sponsor. A written reportis prepared and published.

Because the sponsoring entities are responsiblefor significant preparation before the panel’s visit,including sending extensive briefing materials toeach member and arranging for the panel to meetwith key local community members and stake-holders in the project under consideration, partic-

ipants in ULI’s five-day panel assignments areable to make accurate assessments of a sponsor’sissues and to provide recommendations in a com-pressed amount of time.

A major strength of the program is ULI’s uniqueability to draw on the knowledge and expertise ofits members, including land developers and own-ers, public officials, academicians, representativesof financial institutions, and others. In fulfillmentof the mission of the Urban Land Institute, thisAdvisory Services panel report is intended to pro-vide objective advice that will promote the re-sponsible use of land to enhance the environment.

ULI Program StaffRachelle L. LevittExecutive Vice President, Policy and Practice

Mary Beth CorriganVice President, Advisory Services

Nancy Zivitz SussmanSenior Associate, Advisory Services

Nicholas GabelAssociate, Advisory Services

Jason BellPanel Coordinator, Advisory Services

Yvonne StantonAdministrative Assistant

Nancy H. StewartDirector, Book Program

Duke JohnsManuscript Editor

Betsy VanBuskirkArt Director

Kim RuschGraphics

Martha LoomisDesktop Publishing Specialist/Graphics

Diann Stanley-AustinDirector, Publishing Operations

About ULI Advisory Services


On behalf of ULI, the panel extends its sin-cere appreciation to the panel cosponsors:the Community Redevelopment Agency ofLos Angeles (CRA) and the Los Angeles

County Metropolitan Transportation Authority(MTA). Without the vision, leadership, and com-mitment to collaboration exhibited by CRA CEOBud Ovrum and MTA CEO Roger Snoble, thispanel would never have gotten off the ground. Theguidance and insight provided by Los AngelesCounty Board Supervisor and MTA Board Chair-man Zev Yaroslavsky were indispensable to thepanel, as were the energy and commitment to theNorth Hollywood redevelopment effort evidencedby City Councilman Tom LaBonge and CRA Com-missioners Shu Kwan Woo and John Schafer. Thecontinued involvement of all these officials will beessential to the success of this effort, and, in thepanel’s view, the community is lucky to have suchdetermined, dedicated, and skilled leaders.

Special thanks are extended to the CRA NorthHollywood office staff led by David Riccitiello, andparticularly to Robert Fazio, who skillfully man-aged all facets of the panel project, as well as totheir counterparts at the MTA working underthe direction of Carol Inge. In particular, thepanel would like to thank Nelia Custodio for herthoughtful guidance as the MTA representative.The CRA and MTA staffs worked tirelessly toprepare a comprehensive briefing book for thepanel; to arrange for tours and meetings with localbusiness owners, theater managers, and othercommunity leaders; and to orchestrate one of thebest community outreach efforts ever undertakenin preparation for a ULI panel. Special recogni-tion goes to Michelle Banks-Ordone, Daniel Rios,William Mason, and Julia Stewart of the CRAstaff and to Kevin Michel, Kathleen Sanchez, andLynn Goldsmith of the MTA staff for their invalu-able assistance. The quality of the market analy-sis, urban design, and community facilitation ser-vices provided by consultants was also impressive,

with the work of Rosalie Udewitz, Robert Gold-man, Patricia Smith, John Kaliski and MichaelWells, Sandra Kulli, and Susan Whittaker all mak-ing a substantial contribution to the panel’s under-standing of the issues.

The panel was quite taken with the eloquent andperceptive input it received from members of theNorth Hollywood community. In pictures, per-sonal conversations, letters, and written com-ments, residents of all ages and backgrounds,business owners and employees, artists, commu-nity activists, and others openly shared theirhopes, concerns, and expectations for their com-munity. More than 60 stakeholders took the timeto meet with panel members. Their energy, opti-mism, and commitment to meeting the challengesfacing North Hollywood were inspiring. Clearly,North Hollywood is a special place in large mea-sure because of the creativity and determinationof the people who live and work there.

The panel is grateful to the Universal City/NorthHollywood Chamber of Commerce for the partici-pation of Bruce Spiegel, and to the Mid-town NorthHollywood Neighborhood Council for the involve-ment of Diann Corral and Eric Reuveni. These aretwo key organizations that work to coordinate andchannel the energy of the community.

Two members of the panel, Mark Feinknopf andCynthia Moe, copresidents of Sacred Space in At-lanta, were unable to complete the week owing toa family emergency. The panel was sorry to losetheir expertise and perspective but was gratefulto have the benefit of their insights and writtencomments in its initial deliberations.

Finally, the panel wishes to thank ULI TrusteeWayne Ratkovich, who was instrumental in theconception of this panel assignment.

Acknowledgments


ULI Panel Members and Project Staff 6

Foreword: The Panel’s Assignment and Summary of Recommendations 7

Market Potential 10

Planning and Development Strategies 19

Implementation 31

Conclusion 40

About the Panel 42

Contents


Panel ChairFrank J. SparicioPrincipalCorporate Real Estate StrategiesRumford, Rhode Island

Panel MembersDouglas BetzPartnerWoolpert LLCDayton, Ohio

Toni L. GriffinDeputy DirectorOffice of PlanningWashington, D.C.

Elisa HillSenior Development SpecialistWashington Metropolitan Area Transit AuthorityWashington, D.C.

Christopher W. KurzPresident and CEOLinden AssociatesBaltimore, Maryland

Terry R. MargerumSenior Managing DirectorSedway Group/CBRE ConsultingSan Francisco, California

Zane SegalProject DirectorZane Segal ProjectsHouston, Texas

ULI Project DirectorsMary Beth CorriganVice President, Advisory Services

Suzanne D. CartwrightDirector, Community Outreach

ULI On-Site CoordinatorChiquita ManagoDepartment CoordinatorPolicy and Practice

ULI Panel and Project Staff


The Urban Land Institute was invited by theCommunity Redevelopment Agency of LosAngeles (CRA) and the Los Angeles CountyMetropolitan Transit Authority (MTA) to

examine development opportunities in the corearea of the CRA’s North Hollywood Redevelop-ment Project and, in particular, property ownedby the MTA at the North Hollywood subway sta-tion.

Originally a farming community, North Hollywoodevolved into a convenient and affordable residen-tial community that attracted entertainment in-dustry workers, artists, and immigrants, amongothers. Like many first-tier suburban communi-ties, North Hollywood experienced years of de-cline in the 1960s and 1970s, partly as a result offreeway construction and the development ofshopping malls that took traffic and shoppersaway from the Lankershim Boulevard corridorthat had been the community’s “main street.”

The CRA established the redevelopment projectarea in 1979, and its initial revitalization effortshave met with some success, reflected in theHewlett-Packard office building (1985), the Acad-emy of Television Arts and Sciences complex(1991), the community shopping center atVineland and Magnolia (1993), and over 750 netnew housing units, including elderly, handicapped,and low-income units. Since 1993, significantevents have included the 1994 Northridge earth-quake and the opening of the Red Line Metro sub-way station in 2000. The impacts of the earth-quake have generally been mitigated, and the newsubway station seems to have catalyzed signifi-cant new investment in the blocks near the sta-tion, perhaps offering the opportunity to create anew community focal point for North Hollywood.Several new multifamily apartment projects areunder construction, and a major mixed-use proj-ect, NoHo Commons, is scheduled to start con-struction imminently.

Another positive element is the emergence of theNoHo Arts District, designated by the Los Ange-les City Council in 1992 as a moniker for the area’slively and burgeoning theater and arts scene. Pub-lic consciousness of NoHo is slowly but steadily in-creasing in the greater Los Angeles community. Arecent market study for the proposed World Ani-mation Center museum estimated annual visitorsto the NoHo Arts District at over 175,000.

The Panel’s AssignmentThese factors have brought the revitalization ef-fort in North Hollywood to a pivotal point. Ongo-ing residential development activity, the develop-ment opportunities associated with MTA propertyat the Red Line subway station, and the construc-tion of the Metro Orange Line bus rapidway withits terminus station on Lankershim Boulevardacross from the subway are all components thatcan be used to shape a new vision for the NorthHollywood community. This ULI panel was as-

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Foreword: The Panel’s Assignment andSummary of Recommendations


sembled to provide advice and recommendationsregarding how the community can capitalize onthese efforts and how future public policy, plan-ning, design, and development decisions can beintegrated to achieve a fully revitalized, vibrant,and sustainable North Hollywood downtown areafor the 21st century.

Of critical importance is the future development ofstrategically located sites owned by the MTA, in-cluding the 10.45-acre subway station site and twosmaller parcels (1.8 and 1.9 acres) located directlywest across Lankershim Boulevard on either sideof Chandler Boulevard. (See panel study areamap.) Maximizing the potential of these sites, andintegrating the new development with the tran-sit services and the arts district, will be crucial indetermining the character of the community andin meeting redevelopment goals. While the panelmade detailed recommendations for these proper-ties, it also considered planning, design, and devel-opment strategies for the arts district and thebroader redevelopment project area.

The panel wrestled with the question of the rela-tive importance of the arts district in the redevel-opment plan. Beyond the immediate communityof actors and artists who live and work in the NoHoarea, the NoHo Arts District does not appear tohave substantial name recognition within thegreater metropolitan region. One most likely couldnot get in a cab at the Los Angeles InternationalAirport and ask to be taken to NoHo without re-ceiving a blank stare from the driver. Other partsof the region have arts offerings that equal or ex-ceed those found in NoHo. Preservation of thelow-rise, inexpensive buildings necessary to fosterthe community’s small, experimental theaters andavant-garde galleries could be expensive andmight conflict with rising land values and increas-ing market demand for other uses generated inpart by the presence of significant transit service.

The Panel’s RecommendationsThe panel came to the conclusion, however, thatNoHo’s funky arts identity is an irreplaceable partof the community’s character—a character that inand of itself is an important catalyst for redevelop-ment activity and that will enhance property val-

Panel study area.

Excellent transit accessand the NoHo Arts Dis-trict are key North Holly-wood assets.

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ues for both existing and new development. Pre-serving this character will take determined work,but the panel believes strongly that it will be wellworth the effort. This report contains several rec-ommendations for achieving this important part ofits vision for NoHo.

The second big question that the panel discussedat length was how to direct and control the devel-opment of the MTA sites and surrounding areasto achieve a more livable environment for all. Thepanel’s vision focused on creating walkable streetsthat encourage leisurely shopping, café dining, gal-lery hopping, and a safe and convenient evening atthe theater, a movie, or a concert. Such places alsoare attractive locations for employees, especiallywhen combined with the superior transit servicethat is increasingly available in North Hollywood.Achieving this urban village atmosphere will re-quire immediate attention to creating a balancedplan, given the strong rental residential marketand the number of projects already in the devel-opment pipeline. An overall design plan with de-tailed development guidelines must be put in placeso that each new building will contribute to qual-ity of the community and not detract from it.

The condition of the public realm—the street-scapes and green spaces (or the lack thereof)—was an important focus for the panel. While adenser built environment is both inevitable anddesirable—especially if it results in reduced vehi-cle traffic through transit use and more walking—it must be balanced with a well-thought-out net-work of greenways, open spaces, parks, and peo-

ple-friendly streets. At the same time, the avail-ability of a sufficient amount of well-located andvisually unobtrusive parking is critical for safetyand the economic vitality of the area’s businessesand arts venues. The panel devoted considerabletime to considering how best to balance the needto accommodate vehicular traffic with the human-scale, pedestrian-oriented spaces that make acommunity an attractive place to live, work, shop,and play.

Finally, given the impossibility of successfullyplanning and implementing a complex redevel-opment plan without extensive collaboration witha multitude of stakeholders, the panel focused onthe CRA and MTA development review processesand on how they can work together more effec-tively. Much good work has already been done,and the panel encourages the agencies to take thefinal steps necessary to begin implementation ofa shared vision for NoHo. Now is the time to takethe necessary actions to preserve and strengthenthe arts district, to plan for balanced development,to invest in the public infrastructure, and to beginto build a new future for North Hollywood.

This report summarizes the panel’s conclusionsand recommendations, which were delivered tothe sponsors during a public presentation on Janu-ary 30, 2004. The panel hopes that the findings inthis report will contribute to the successful rede-velopment of North Hollywood.


characteristics are lower than in nearby submar-kets such as Studio City, Universal City, andBurbank. The area’s largest employers are twomedical firms, two department stores, and aninsurance company, all with 300 to 400 employees.By contrast, Burbank and Universal City’s majoremployers are entertainment companies with upto 7,500 employees.

Office MarketAs of July 2003, the overall Los Angeles office va-cancy rate was 15.8 percent and full-service rentswere at $28.80 per square foot, down slightly from$29.88 in 2002. At present rates of absorption itwould take 4.5 years even to reach the 10 percentvacancy benchmark. For the overall North Holly-wood market, which comprises about 2.35 millionsquare feet, vacancy is at 15.4 percent with rentsbetween $8 and $33. However, the three majorbuildings nearest the Metro station contain about510,000 square feet and appear to be about 7 per-cent vacant, with rents in the mid-twenties. A ma-jority of tenants are reported to be entertainmentindustry–related.

There is no question that, all other things beingequal, the MTA station enhances the potential forcreating an office node in this part of North Holly-wood, particularly for entertainment industryusers. Current rents, however, do not support thecost of new construction and any near-term proj-ect would likely require subsidies. If a few keysites are designated for office use and a proactiveand sustained marketing effort is made, office usesmay well be achievable within five to ten years.

Regional and Subregional RetailMarketNorth Hollywood’s traditional retail strengthsare in department stores and auto supplies. The

North Hollywood is a district within thecity of Los Angeles, located in the east SanFernando Valley, over the hills from Holly-wood and approximately ten miles from

downtown. As such its boundaries are not pre-cisely defined, but it generally encompasses anarea between the 101 Ventura Freeway on thesouth, Sherman Way on the north, the 170 Holly-wood Freeway on the west, and the city of Bur-bank on the east.

The statistical data gathered by the CRA for thisadvisory panel used somewhat larger boundariesstretching as far west as Van Nuys Boulevard.Both of these areas are considerably larger thanthe CRA’s redevelopment project area and theMTA station area that were the foci of the panel’sanalysis, as shown on the ULI panel study areamap. The area within which market and demo-graphic data was collected is referred to as thegreater North Hollywood market study area,shown in the accompanying figure. These bound-ary differences should be kept in mind when con-sidering the economic and market data discussedin this report.

Economic and Demographic Overview(1990–2000)The population of North Hollywood grew by al-most 11 percent between 1990 and 2000 to a totalof 239,279, with a major increase in the Hispanicpopulation, which now constitutes 45.6 percent ofthe total. The Hispanic population is concentratednorth of Burbank Boulevard, where it encompassesnearly two-thirds of the populace. Incomes grewby 20 percent, less than the 30 percent increasein the Los Angeles metropolitan area’s ConsumerPrice Index. The area has a skewed distributionof household sizes, with a disproportionate amountof both large (six or more persons) householdsand singles. Educational, employment, and income

Market Potential


greater North Hollywood area is served by tworegional shopping centers, Westfield FashionSquare in Sherman Oaks and Panorama Mall/Walmart in Panorama City. The latter caters tothe large Hispanic population. The subregionalmarket is dominated by the Burbank Empire Cen-ter, Burbank Media Center, and the Valley Plazashopping center, an old subregional center locatedapproximately two miles to the northwest, whereSears and Robinsons May department stores arelocated. There are more than 70 multiplex moviescreens in North Hollywood, Burbank, and Uni-versal City, most in configurations of ten or morescreens. Of these retail establishments, only theauto supply stores are prominent in the immediatestudy area.

Retail prospects in the station area do not seempromising for a destination “town center” mall

configuration with major comparison-goods retail-ers and a multiplex cinema. A more organic MainStreet model, with local niche retailers such asgalleries and vintage clothes shops, interspersedamong the existing theaters and restaurants,seems more appropriate.

Convenience and Neighborhood RetailThere appears to be a healthy local retail market,with 13 centers (approximately 600,000 squarefeet) and a vacancy rate of 5.6 percent. Rentsrange from $1.25 to $3.50 (triple net), with thehighest rates in Sherman Oaks and Studio City.Rents in the Magnolia Vineland Center are in the$1.50–$2 range, and vacancy is reported at 1.1 per-cent. The Ralph’s grocery store in the center is re-portedly one of the chain’s best performers. In ad-dition, two other grocery chains, Hows Markets

The North Hollywoodmarket study area is con-siderably larger than thepanel’s study area, whichis located entirely inNorth Hollywood.

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and Henry’s (a subsidiary of Wild Oats) have ex-pressed interest in the NoHo Commons site.

More broadly, the local retail scene is rather funkyand eclectic, reminding some observers of Melrosein an earlier day or of various neighborhoods inBerkeley or San Francisco. In addition to arts-related retailers, one growing niche is that of vin-tage clothes shops. A recent market study re-ported that there were over 60 restaurants ofdiverse types in the arts district, nearly half ofthem serving Asian cuisine.

Since the panel did not receive specific data onrents, vacancy, and turnover for the local retailerson Lankershim and Magnolia boulevards, it is re-luctant to draw detailed conclusions. Overall, how-ever, the local retail scene appears stable, and itshould be expected to benefit substantially from

the wave of new, relatively affluent residents whowill occupy the 1,500-plus apartment and loft unitsnow in the development pipeline.

It is important to realize that, by itself, the transitinvestment does less for retail than for residentialor office development. In the words of a recentULI report, Successful Development aroundTransit, “retail must be viable on its own.” Retaildoes not drive development around transit, butrather “follows rooftops.”

Multifamily Residential MarketIn the greater North Hollywood market studyarea, multifamily units constitute 64 percent of the59,000-unit residential inventory. Between 1990and 2000, the greater North Hollywood marketstudy area added 2,763 units, more than half ofthem in projects of 50 or more units. Within thisarea, renters lease 68.1 percent of occupied units,as contrasted with Burbank, where the number is56.4 percent.

The overall vacancy rate is 3.2 percent, and rentsvary greatly depending on the quality and vintageof product. The high end is about $2 per squarefoot per month. Over 1,500 new apartment unitsare approved or under construction in the studyarea, about 90 percent at market rate. They are allprojecting market rents in the $1.75–$2 range.

The average value of condo resales is $244,000,compared with single-family homes at just under$277,000. The average sales price of condos/town-homes was $205 per square foot in 2002. Currentlyno for-sale product is under construction, but twoare scheduled to start construction this spring: 36condominiums on Burbank Boulevard and 69 loftson the former Adolph’s Meat Tenderizer ware-house site. New condos in Burbank are being mar-keted at an average price of $305 per square foot.The panel anticipates that more for-sale productwill emerge as the area’s desirability becomesmore evident, and it believes that such develop-ment should be encouraged with policies that sup-port homeownership.

It remains to be seen whether the projected rentswill be fully achieved with so much new productcoming on market so quickly. Given the low va-

Above: Eclectic localretailers create a distinc-tive ambience. Right: TheNorth Hollywood multi-family residential markethas been strong in recentyears.


cancy rates, however, area housing developershave cause for optimism. Regardless, the long-term prospects for NoHo as a major transit-oriented residential node are excellent, due bothto market trends and to locational advantages.With its Red Line and future rapid bus stations,North Hollywood is well positioned as an urbaninfill site to capture a significant share of futuresubregional residential growth.

While this growth potential is very positive forthe local economy, including the arts district, thereis a danger that, without any intervention, thestrong residential market could crowd out otheruses that are equally important to the area’s long-term economic health. The CRA may wish to con-sider policies for ensuring provision of housingtargeted at the local work force, seniors, and low-income people in general; reserving a few keysites for employment-generating uses such asoffice and retail; and preserving certain single-family neighborhoods.

Hotel MarketNo hotel market data were collected for the panel,and thus the following comments are based on thepanel’s familiarity with hotel markets in the UnitedStates and California generally and on selected in-terviews with industry professionals. There arecurrently no hotels in the NoHo district.

Generally speaking, it continues to be a difficulttime for new hotel development. Even strongplayers such as Hyatt and Marriott can have trou-ble finding financing. The hotel developers thepanel spoke with saw no foreseeable potential forhotel development in the North Hollywood stationarea because “there’s no reason to go there.” Thisview could change if the station area builds out, asanticipated by some of the recent forecasts pro-mulgated by developers and planners.

Clearly there are no major destinations in thearea now. However, just one short Metro stopaway is City Walk and the Universal City themepark, the top tourist destination for visitors to LosAngeles County. The panel believes it may beworthwhile to explore with selected hotel compa-nies or developers the pre– and post–September11, 2001, performance of Universal City hotels and

to solicit their views on NoHo generally. Anotheroption to explore is an extended-stay “suites” hotel,geared toward entertainment industry workers.

Oasis Arena FacilityThis proposal for an 8,000-or-more-seat arena,which has been presented to the MTA for one ofits transit station properties, deserves specialmention. The expected events include college andminor-league professional sports, concerts, familyentertainment, and conventions. The panel re-viewed a preliminary feasibility analysis providedby the developer. The conclusions in the prelimi-nary market study are more hypothetical thandefinitive because the developer has no firmcommitments from the proposed anchor tenants.Consequently, the report is couched in caveats,and properly so. A more conclusive analysis mustawait submission of more detailed data by thedeveloper.

Local support for this project seems highly di-vided, with most stakeholders feeling that it isnot an appropriate use for an arts district loca-tion, although its access to the transit hub and its synergistic use with MTA parking facilities iscertainly logical. The panel believes that the Uni-versal City station, with its closer access to thefreeway system and office-shared parking oppor-tunities, or some other transit station with a more

The Academy of Televi-sion Arts and Sciences isan important entertain-ment industry anchor inthe study area.


regional or subregional destination character,might be a better location for this project.

Market Potential for Arts-Related UsesWhile the name “Hollywood” describes a rela-tively small area within the city of Los Angeles,major studios and the literally thousands ofsmaller production, distribution, exhibition, andservice businesses that compose the entertain-ment industry have proliferated in recent decadesin the southeastern San Fernando Valley in andaround North Hollywood. With the addition in2000 of the Metro Red Line subway service andgiven the planned opening of the cross-valleyOrange Line bus rapidway in 2005, North Holly-wood is ever more appealing as a location for en-tertainment industry businesses and the creativeand technical people who work for them.

Many industry organizations and businesses, in-cluding the Academy of Television Arts and Sci-ences on Lankershim Boulevard two blocks southof the subway station, have made North Holly-wood their home. Numerous smaller entities, such

as music studios, postproduction houses, photog-raphy studios, and prop and costume storage fa-cilities, have also located in the area, primarily inlow-rise industrial spaces, owing to the combina-tion of low rent and good freeway and transit ac-cess. These businesses may be quite appropriateto the area, yet they often present a blank face tothe street; their buildings frequently lack identi-fying features, signage, or even windows. Theresulting lack of “eyes on the street” makes theneighborhood appear less secure and friendly thanit actually may be.

Paradoxically, the emergence of more cafés, shops,service retail, and better housing in the area islikely to increase the desire of entertainment in-dustry businesses to locate in North Hollywood,while the supply of cheap space is likely to dwin-dle due to redevelopment. One approach for rec-onciling these conflicting forces is to encouragethe development of secure yet creatively designedoffice and live/work spaces that will relate to thestreets and the surrounding urban fabric.

The presence of 21 live theaters in NoHo is an-other function of the low rent available for store-front spaces and of the many actors and would-beactors who desire to be near industry giants whilethey hone their craft. These theaters are as muchabout classes, auditions, and rehearsals as theyare about performances, and so they stay busyday and night, weekday and weekend. Yet someof them are already being threatened by risingrents as new construction commences and specu-lation occurs.

Other components of the NoHo Arts District,such as the dance studios and visual artists’ spacesand galleries, have also benefited from the relativeaffordability of commercial space and housing.These too could be threatened by the success ofthe revitalization of the area. This is not a newor unique situation, of course. It is a common pro-cess in urban rehabilitation that pioneering artistsmove into disused warehouses and abandonedareas, fixing them up by hand, organizing, andstruggling. Then, after they have begun the pro-cess of turning an area around, young profes-sionals and empty nesters are attracted, with theresult that prices escalate and the pioneers areforced out. Because of the inordinately high and

Too many arts and enter-tainment businesses cur-rently shut out the neigh-borhood behind blankwalls that lack windows,creating streets that feelunfriendly or even unsafefor pedestrians.


still rising residential prices in the Los Angelesregion, the new wave of market-rate housingabout to inundate NoHo could well thwart thecontinued growth of this nascent arts district justwhen it is beginning to savor success, unless stra-tegies are implemented to nurture and preservethe district.

A Vision for the Arts DistrictWhat steps must be taken to preserve and en-courage the NoHo Arts District? First, the artscommunity must keep doing what it is alreadydoing. Special events such as the NoHo Theaterand Arts Festival need to grow, proliferate, andbe better promoted. They showcase the improve-ment in the physical structure of the area, aswell as the improving range and quality of thetheater companies.

Second, the streetscape improvements already de-signed need to be put in place to make a strong vi-sual statement about the district’s special, quirkycharacter. The bikeways and open spaces needto be programmed, as much as appropriate, withevents such as organized bike tours that will bringnew people into the area at a gradual enough paceto enjoy it. Such programs will highlight the con-tinuing physical improvements, including the al-ready completed mural project along the bikewayto the east and the many new sculptures, murals,and facade improvements in place and planned.

Third, the various arts organizations need to worktogether. The new loose affiliation known as theNoHo Theater and Arts Business Collaborativeillustrates an excellent approach for the varioustheaters, dance troupes, and visual artists to uniteand attract a greater audience. Important targetsfor these efforts are new residents and workers,as well as those who are already living and work-ing in the community. A “buy local” and even an“eat local” grass-roots marketing campaign couldhave an effect. The goal should be to lure the area’shidden media people, those in the walled-in musicstudios and sound-isolated postproduction houses,out into the light of day, at least for lunch.

Finally, while there are many concentrations ofartistic, cultural, and entertainment attractions

in the greater Los Angeles area, NoHo is the re-gion’s only self-proclaimed arts district. Preciselybecause few Angelenos and virtually no touristsyet recognize the NoHo name, there is every rea-son to keep proclaiming it via banners, newspaperand other media ads, publicity, streetscapes, pub-lic art, gallery events, and live theater. Eventually,the NoHo brand will seep into the public conscious-ness, strengthening the area’s arts institutionsand the greater North Hollywood community’ssense of identity.

Additional Cultural and Civic AnchorsThe panel proposes several significant culturaland civic anchors of a regional and valleywide sub-regional scale that could dramatically improve the

The historic El Portaltheater and the Deaf Westtheater are two examplesof the more than 21 livetheater venues in theNoHo Arts District.


public’s awareness of the NoHo Arts District andimprove patronage of its venues.

The World Animation CenterIn 2002, the CRA commissioned a study for aworld-class animation museum of 40,000 to 50,000square feet to be located in the NoHo Arts Dis-trict. Virtually everyone the panel spoke with wasin favor of this project as a tourist draw and sig-nature design element, and the panel too wasunanimous in recommending that this project beput on the front burner for CRA consideration.While several other entertainment industry hubsthroughout the region are competing for the proj-ect, a location on one of the NoHo MTA sites or ona nearby commercial site on Lankershim is a nat-ural. The cartoonlike concept for the building de-sign is completely synergistic with the artisticflair of the proposed streetscape.

The panel reviewed a detailed market and finan-cial feasibility analysis for the proposed museum.

The prospects for the facility are promising, witha number of important caveats. The North Holly-wood location is in a large urban market withsignificant tourist visitation and several majordestinations nearby. On the other hand, Los Ange-les is a highly competitive market, with 38 majormuseums in addition to zoos, aquariums, and na-ture centers. The animation museum’s feasibilityanalysis estimated a development budget of $25million to $30 million, an annual stabilized visita-tion of 200,000, and an operating deficit of $1.9 mil-lion. The latter would imply the need for an en-dowment of more than $30 million.

NoHo Theater CenterThe panel proposes construction of a new theatercenter that would include several up-to-99-seatnon-Equity live-performance black-box theatersand one approximately 350- to 500-seat theater. Itwould also incorporate joint ticketing, promotion,costume, scenery, and prop creation and storagespaces, plus classes for performance and back-of-

The design concept forthe World Animation Cen-ter’s interior shows thepotential for this museumto provide an interactive,memorable experience forvisitors.

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the-house theater arts. The panel does not believethat such a facility would threaten the existing the-ater scene beyond the threat it is already under, andit would help to create a critical mass of quality the-ater offerings that would raise the visibility of thedistrict overall. The joint instructional, promotion-al, and ticketing functions could also be extendedto the other theaters in the arts district, improv-ing attendance and financial viability for all.

Art-House CinemaAn art-house cinema complex with five to sevensmall theaters showing independent, foreign, doc-umentary, short, and festival fare offers anotherpotential anchor element embraced by virtuallyeveryone who discussed the possibility. There areseveral reputable operators for this type of com-plex in California and, among them, the Laemmlechain has already shown interest in locating in aNoHo project.

Another concept that would also differ signifi-cantly from the stadium-seat megaplexes sur-rounding the area in every direction (as at Uni-versal CityWalk) is the Cinema Grill or AlamoDrafthouse type of complex, which integratesfirst-run and art movies with a casual sit-downdining concept within the theater space itself.These dinner-movie houses have been notablysuccessful in many markets around the country.

Art Institute/Arts High SchoolAn art institute complex could include student-level and professional-level training in all disci-plines of the arts, including film and televisionproduction and postproduction, writing, acting,painting, sculpture, web and graphic design, inte-rior design, drafting, and even culinary arts. Inaddition, a tie-in with the new high school beingdeveloped to the east of the transit nexus wouldbe logical: it could provide the site of the instituteon an after-hours basis, at least in the beginning,similar to the way in which many community col-leges use public school facilities in the evening, orthe two schools could be programmatically linked.The panel also recommends that the Los AngelesUnified School District consider designating thenew high school as an arts magnet school.

The panel believes that all four of these anchor el-ements could work well together, and that a high

percentage of the use of these facilities would beat night and on weekends. Thus, shared parkingshould work well with the daytime use of the MTAparking facilities. Any of these arts anchors couldbe sited on any of the available MTA or CRA sitesor on privately held land.

Market ConclusionsThe MTA’s transportation infrastructure invest-ment has enhanced and will continue to enhanceNorth Hollywood’s market-based development op-portunities for multifamily residential space; con-ventional office space in the middle to long term;arts and entertainment district–related develop-ment; and destination uses like the proposedWorld Animation Center.

The spate of recent developer interest attests tothis fact, as do numerous national studies docu-menting the rent premiums associated with prox-imity to a major transit facility. However, thepanel cautions the CRA and MTA that there aresubstantial differences in near-term viability (andhence level of required subsidy) among the vari-ous developer proposals now under consideration.

An additional transit boon for the area would beconstruction of a bus rapidway extension east-ward to the Burbank Airport and the major Bur-bank employment centers. Such a transit linkagewould strengthen both office and hotel potential in North Hollywood and reinforce NoHo as awell-situated yet reasonably priced alternativeto the more expensive and built-up areas to thesouth and east.

Market trends augur well for the area’s revital-ization. It will be led by new multifamily residen-tial development that will enhance and expandthe local retail market and create more local cus-tomers for the arts and theater businesses. Oncethis occurs, assuming a well-conceived NoHo ArtsDistrict marketing plan, the area could becomemore of a subregional draw for the 2-million-pluspopulation of the San Fernando Valley and com-munities to the north. As a genuine center for theNorth Hollywood community takes shape, the sta-tion area’s attractiveness as an office employmentcenter will grow.

In order for this vision to be realized, there willneed to be adequate public policies and implemen-tation strategies to ensure a mix of housing choices,and to protect and preserve key arts district usesand sites. In addition to the recommendation thatthe CRA and the community consider adding sev-eral subregional and regional cultural and civicanchors to the arts district, the panel suggests ex-ploring the creation of a business improvementdistrict and, even more important, an arts districtfoundation (both discussed later in this report).



Planning and Development Strategies

North Hollywood is geographically andchronologically at a crossroads. It is situ-ated at the intersection of four major free-ways and two transit lines and lies in the

midst of the entertainment industry clusters inBurbank, Universal City, and Studio City. Accessand convenience continue to attract residents andarts- and entertainment-oriented businesses. Asthe area’s racial and ethnic mix has diversified, sotoo has the area’s rich mix of uncommon retailersand cultural institutions. Relatively inexpensiveland values and rents have attracted a cosmopoli-tan mix of actors, artists, students, and entertain-ment industry production workers, as well as re-cent immigrants. Lower land values also drivesome of the land uses—including the preponder-ance of auto sales, repair, and storage facilities.Given the arrival of the Red Line subway, the con-struction of the Orange Line bus rapidway, andthe emergence of a strong residential market, thecommunity is now presented with a series ofchoices that will shape its built environment andsocial fabric.

StrengthsNoHo is characterized by a funky, eclectic mix ofuses. This character is central to the identity ofthe community and it has been further strength-ened in recent years by the CRA’s public art,banners, facade enhancement, and streetscapeprograms, which reinforce the arts district brand.The area also includes a number of historicallysignificant and landmark structures. A strong res-idential market and increasing expressions of in-terest by developers have created a sense of mo-mentum for redevelopment in the private sector.CRA and MTA control of the key subway areastation parcels means that a strong public-sectorvision can set the tone for future development.

ChallengesThe overriding challenge is to create a strong,cohesive neighborhood instead of a collection of in-dividual and disconnected projects. Meeting thisgoal will require a clear and consistent vision, aswell as sustained leadership to implement that vi-sion over time. This vision must balance the con-siderable market pressure for rental residentialdevelopment with the need to preserve affordablehousing, the economically fragile arts institutions,and the eclectic atmosphere, all while taking fulladvantage of the substantial transportation in-vestment to create a mixed-use, higher-densitytown center for the community.

The physical condition of the public realm needsto be improved, which will enhance both the per-ception and the reality of the community’s safety.The large-scale, expansive pavements and uncon-trolled curb cuts that characterize the district’smajor streets should be modified to create people-friendly places that will encourage walking, side-walk activities, and serendipitous exploration. Ad-ditional open space should be provided in areasthat are accessible to the neighborhoods, andthese areas should be interwoven with a networkof attractive sidewalks and bikeways. Providingthe number of parking spaces needed to supportfuture development will undoubtedly be a finan-cial challenge.

The market today does not yet support the opti-mum mix of uses that would otherwise be desir-able at an intermodal transit hub. The strength of the residential market could result in an unbal-anced land use pattern unless it is controlledthrough a well-conceived community plan.

Furthermore, some of the residential projects thatare pioneering development in the area are beingdesigned in response to the rather harsh currentcharacter of the neighborhood—creating internalstreets and open spaces that insulate residents


from the larger neighborhood—rather than set-ting the stage for a more integrated and openneighborhood environment. Continuing this de-sign trend could yield a series of residential en-claves rather than a neighborhood of connectedplaces. The intensity of development relative tolot size for some of the newer residential projectsalso poses neighborhood design challenges.

The CRA’s current design regulatory tools fallshort of guiding project designers and theirclients to quality solutions. Urban design guide-lines are needed to ensure that future projectswill come on line in a harmonious fashion, addingto the neighborhood’s character and not detract-ing from it.

OpportunitiesNorth Hollywood is poised to distinguish itselffrom other centers in the San Fernando Valley,

moving from a locally known arts district to athriving regional cultural, commercial, and resi-dential center. The market potential that ac-companies a transit-rich environment creates theopportunity for the emergence of a denser, mixed-use core, as well as providing a source of privateinvestment that can be used to revitalize, stabi-lize, and strengthen the surrounding neighbor-hoods. The MTA- and CRA-controlled sites canbe the catalysts for the creation of an exciting, vi-brant place in which to live, work, and play. Mean-while, the emerging arts district has the potentialto strengthen downtown NoHo’s identity if otheranchor cultural uses are developed. NoHo’s off-beat arts scene, central location, and excellenttransit and freeway access are powerful assetsupon which a dynamic community can be built. Itis truly NoHo’s time to shine and prosper.

The panel saw the primary planning and designchallenge as “defining the center”—giving down-town NoHo an identity that would put it on themap as one of Los Angeles’s hottest new neigh-borhoods for living, dining, entertainment, andthe arts. Suggesting design strategies that willsupport this vision while protecting and enhancingthe historic and bohemian context of the neighbor-hood that exists today was the panel’s goal. Thepanel’s general plan of existing and proposed landuses is represented in the accompanying illustra-tion. To provide a road map for implementationof this plan, the panel divided the study area intofive distinct places or neighborhoods, centeredaround a new consolidated multimodal transit cen-

Among North Hollywood’sstrengths are its stableresidential neighborhoodsand historic buildings.


ter and connected by an open-space network.Specific development strategies for each of theseNoHo neighborhoods are described and illustratedin the following section.

Development Strategies

The development program that the panel pro-poses seeks to implement both the market po-tential for the area and the land use planning anddesign vision: concentration of higher-densityoffice and commercial uses along LankershimBoulevard north of Weddington Street; preser-vation of existing residential neighborhoods, whileallowing for increased residential density withineasy walking distance of transit; and preserva-tion of historic structures and local retail and cul-tural uses, particularly along Lankershim andMagnolia boulevards.

Street trash, graffiti, andan absence of pedestrianamenities mar the publicrealm.

Banners, murals, andpublic sculpture con-tribute to a growingawareness of the NoHoidentity.


The Lankershim CoreThe Lankershim Core is the high-density area of the downtown that encompasses both sides ofLankershim Boulevard from Burbank Boulevardto Weddington Street and is anchored by a pro-posed multimodal, mixed-use transit center. Resi-dents, commuters, and visitors using the local busservice, subway, or Orange Line bus rapidwaycould emerge from the new transit center into theheart of NoHo. Here at the core, people could live,work, and enjoy convenient retail, restaurant, andcultural venues along a tree-lined boulevard witha landscaped median. High-rise buildings as tall as15 stories could line the street from Burbank toChandler Boulevard, taking the most advantage ofthe core’s proximity to transit. This district servesas the northern entrance to NoHo for traffic usingthe Burbank freeway interchange and has alreadybeen marked as a gateway with a plaza and sculp-

ture highlighting the community’s identity as anarts district.

Commercial core. As indicated in the “Market Po-tential” section of this report, the panel believesthat in the middle to longer term, North Holly-wood has the potential to develop into a signifi-cant commercial node within the San FernandoValley. NoHo has excellent transit access, high-way connections, and proximity to major enter-tainment industry centers. Therefore it would bea logical location for ten- to 15-story commercial/mixed-use buildings.

In the near term, major tenants pioneering inthese commercial buildings would undoubtedlyneed the inducement of substantially subsidizedrents. In lieu of direct rent subsidies, developmentcosts could be supported through publicly funded

The panel’s concept forexisting and proposedgeneral land use areas.

Burbank BoulevardTu

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Magnolia Boulevard

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Arts/Retail

Commercial

Industrial

Civic

Existing Residential

Proposed Residential

School/Park

Transit

Proposed Mixed Use

N


infrastructure improvements (such as parkinggarages) and tax credits. Such developer incen-tives could serve to reduce any necessary rentsubsidies. Over the longer term, the advantagesof location and a stronger regional economy shouldeliminate the need for subsidy. The panel there-fore recommends that the major properties alongLankershim Boulevard north of Cumpston Streetbe reserved for office/commercial developmentuntil market conditions support new construction.In the meantime, the existing auto-related usescould remain. As public parking facilities are con-structed in the area, it may become feasible forauto storage uses to be moved to leased spaceswithin one or more of those garages, freeing keyparcels for higher-value commercial development.

Transit station area. The panel recommends thatconsideration be given to consolidating the ex-

isting and planned bus transit facilities—bothlocal service and the bus rapidway—within a newintermodal transit center on the MTA parcel adja-cent to the former train station. This approachwould free up MTA land on the east side ofLankershim Boulevard for higher-value uses andcould provide operational efficiencies and moreconvenient transfers for transit passengers. Suchan intermodal transit center would eliminate du-plication in kiss-and-ride, ticketing, and fare andtrip-planning information facilities. Bus bays forpickup and dropoff, turnaround, and layover forboth bus services could be provided either atgrade or below grade with mixed-use air-rightsdevelopment above. Direct access to the sub-way platform from the west side of LankershimBoulevard could be opened up at the existingemergency exit stairway.

The panel divided thestudy area into five neigh-borhoods.

1

23

4

5

Burbank Boulevard

Tuju

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Aven

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Chandler Boulevard

Magnolia Boulevard


Weddington Street

Cumpston Street

N

Key:

Back Lot District

Cumpston and Chandler Neighborhood

Lankershim Core

NoHo Arts District

NoHo Park Neighborhood

Arts/Retail/Commercial

Future Intermodal Transit Center/Mixed Use

Greenway/Open Space

Industrial/Residential

Office/Commercial/Mixed Use

Parking Lots

Residential

Vine

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1

2

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4

5


The development program for both MTA parcelson the west side of Lankershim Boulevard shouldbe determined by market conditions but should,over the long term, include a mix of retail, office,hotel, cultural, recreational, residential, and enter-tainment uses. A structured parking deck with1,000-plus spaces is proposed to accommodateMetro patrons and the new uses in the core. Thisgarage would be accessed off of Tujunga Avenueand could be either above grade or partially belowgrade. Consistent with the district’s identity as thecore, the panel recommends building heights inthe ten- to 15-plus-story range. Because of the sig-nificant density accorded to these buildings, a cul-tural facility should be required as part of the de-velopment program in each building. Ground-floorretail along Lankershim Boulevard is desirable.

The panel does not believe that the proposed arenause is appropriate for this site; the building’s scalewould be inconsistent with a pedestrian-orientedarts district, and the traffic generated by arenaevents could overwhelm Tujunga Avenue andother neighborhood streets between the site andthe freeway access ramps.

The MTA parcel south of Chandler Boulevard hasattracted the most development interest in theproject area. Development of this parcel should in-corporate and interact with the restored bankbuilding on the corner of Lankershim Boulevardand Weddington Street, and building heightsshould scale back along Weddington to reflect thestreet’s proposed pedestrian/neighborhood con-nectivity functions.

Subway station site and NoHo Commons parcels.

The almost 11-acre MTA property surroundingthe subway station on the east side of LankershimBoulevard and the NoHo Commons Phase I and IIparcels are key NoHo redevelopment opportuni-ties. While the NoHo Commons parcels have al-ready been entitled, the MTA parcel should re-ceive the highest-density development program—15 or more stories—and it should feature a syn-ergistic mix of uses to promote transit ridership aswell as a safe and attractive pedestrian experi-ence. Development can be phased to accommodatecurrent market conditions while preserving thekey transit-adjacent portions of the site for long-term highest-value uses. The site should be subdi-

vided with streets to enhance connectivity withsurrounding neighborhoods.

The panel recommends that the eastern third ofthe MTA property be designated for mid- to high-rise residential. This portion of the program canbe built under current market conditions and willgenerate new tax revenues from this publiclyowned property. Given the preference of the MTAto lease rather than sell its property, it is mostlikely that this residential development will be inthe form of rental apartments, but condominiumdevelopment would also be desirable if feasible.The panel recommends that the MTA construct a1,000-plus-space garage with access off CumpstonStreet to replace existing surface parking and forshared use with future buildings on the site in theevenings and on weekends. A portion of the sitealong the Chandler bikeway should be reservedfor a park or other open space. The balance of thesite should be entitled for mixed-use high-rise de-velopment, with the specific uses left flexible aslong as design guidelines (setbacks, massing, andso on) are met. This arrangement would providemaximum clarity and minimum entitlementprocess delays for conforming development andthus should make the site attractive to developersas soon as market conditions are met.

NoHo Commons Phase II currently calls for one-story retail (most likely a grocery store use) at thecorner of Lankershim and Chandler boulevards.Given the location of this parcel in the heart of thecore, it would otherwise be desirable to increasethe building heights on this “100 percent” corner.While the panel recognizes that it may be difficultto amend the development program at this point,it does recommend that the developer and theCRA consider transferring density from NoHoCommons Phase III to the Phase II site and en-courage the construction of at least mid-rise office,health club, hotel, or other mixed uses over thegrocery store and its affiliated parking.

The NoHo Arts District NeighborhoodThis neighborhood lies at the heart of the existingarts district, including both sides of LankershimBoulevard between Weddington Street and Ca-marillo Street and along Magnolia Boulevard be-tween Tujunga Avenue and Vineland Avenue. Astrengthened arts district is a central component


Lankershim Boulevardcurrently is a wide,pedestrian-unfriendlystreet, not the true,visually appealingboulevard it could be.

of the panel’s development vision for North Holly-wood. The focus in this neighborhood should thusbe on creating a historic, pedestrian-friendly com-mercial and cultural environment from the groundup. Some of the arts facilities are currently housedin historic spaces, and the panel recommends thatthese buildings be preserved and reserved for artsuses. The arts district also includes colorful localretailers that provide an appealing, funky atmos-phere and would most likely not survive in ahigher-rent environment.

The panel recommends that revenues be set asidevia a foundation or other new entity (discussed inthe “Implementation” section of this report) forthe purchase of key theater properties to permitthe retention of economically marginal arts uses inthe district. Height limitations should also be con-sidered to protect the economic and aesthetic via-bility of the smaller retail uses.

The attractiveness of Lankershim and Magnoliaboulevards for pedestrian exploration, outdoordining, informal public entertainment, and festivaluse should be enhanced. The panel recommendsthat the CRA enlist the assistance of key electedofficials to establish a partnership with the LosAngeles Department of Transportation to designand guide streetscape improvements. Lankershimshould receive a true boulevard treatment with alandscaped median, street trees, planter boxes,benches, and street furniture. It should not bewidened. Magnolia Boulevard should receive simi-lar streetscape improvements, and retail uses

should be permitted to fill in available sites westof Lankershim.

The panel recommends that the NoHo CommonsPhase III development program be amended toremove buildings that would block views and ac-cess to the Academy of Television plaza fromLankershim Boulevard. This portion of the sitemay be better used as an extended plaza or pub-lic performance space. The panel further recom-mends that the portion of the Phase III site at thecorner of Lankershim and Weddington Street beprogrammed for another significant arts anchor,ideally the proposed World Animation Center. Thelandmark-quality design of this building and theexciting, interactive nature of the exhibits wouldcreate a significant destination for arts district pa-trons, drawing pedestrians down LankershimBoulevard from the transit station to the museumand the arts district beyond.

While the funds necessary for the constructionand operation of the animation museum wouldneed to be raised elsewhere, the panel suggeststhat it is an ideal use for CRA property. The in-creased foot traffic and enhanced communityidentity generated by the museum would sub-stantially benefit surrounding landowners andbusinesses. The panel believes that CRA land isbetter used for this type of cultural use ratherthan for residential projects that would other-wise be built to meet market demand in the cur-rent economic environment.


The NoHo Park NeighborhoodThis neighborhood includes the majority of thecivic amenities for North Hollywood, includinga park, a library, a recreation center, St. Paul’schurch and school, Lankershim ElementarySchool and its after-school recreation area, a healthclinic, the post office, the fire department, and aYMCA facility. The neighborhood is bounded byNorth Hollywood Park and the properties just be-hind Lankershim Boulevard and extends betweenChandler Boulevard and Magnolia Boulevard.

The panel believes that the concentration of thesecommunity service amenities argues for preser-vation of this neighborhood for residential uses,while the proximity of the neighborhood to transitargues for permitting infill residential construc-tion on vacant or underused parcels and increas-ing densities somewhat. Building heights shouldbe kept to no more than two to five stories, andspecial attention should be paid to setback re-quirements and streetscape investments so thatresidents will be encouraged to walk throughoutthe district. Weddington Street, with its western

terminus at the recreation center and its nar-rower, more neighborhood street quality, is an im-portant east-west pedestrian spine. This may bean area where homeownership incentives such aslocation-efficient mortgages should apply.

The Back Lot DistrictThis mixed-use neighborhood on the eastern edgeof the study area extends from Chandler Boule-vard to Magnolia Boulevard and between Vine-land Avenue and the NoHo Commons and Acad-emy properties. It currently features a mix ofboth new and aging multifamily residential devel-opment as well as light industrial uses, some ofwhich are linked to the entertainment industry.Once again, Weddington Street is a key pedestrianspine on the east side of Lankershim Boulevard.

The panel recommends that this area be retainedas a fine-grained mixed-use district, both to pre-serve its character and to incorporate lower-costartist housing and studio opportunities and retainlocal entertainment industry jobs. Design guide-lines or other regulatory tools should be used toregulate setbacks and the intensity of develop-

The NoHo Park neighbor-hood includes beautifulpublic buildings such asthe library, the post office,and several churches.


ment in this district so that the almost zero-lot-line character of the recent apartment projectsdoes not become the dominant form for new con-struction, creating an overwhelming intensity of development.

The Cumpston and Chandler NeighborhoodThis residential neighborhood extends betweenBurbank Boulevard and Chandler Boulevard andbetween Elmer Street and Vineland Avenue. Itappears to have been in transition for some time,with single-family homes being replaced by smallmultifamily buildings. The panel recommends thatthis neighborhood’s stabilization be made a prior-ity, including roadway and streetscape improve-ments, “clean and safe” programs, and homeown-ership programs. This area and the residentialneighborhood just north of Burbank Boulevardare also key to maintaining housing affordabilitywhile the character of North Hollywood overall isimproved. The properties on the northern side ofCumpston Street and the western edge of CaseStreet are particularly important for enhancingthe character of the NoHo Commons Phase I resi-

dential project and the new high school respec-tively. Attractive, well-designed infill residentialshould be permitted on these streets where oppor-tunities arise. The panel recommends that overalldensity in this district not be increased beyondthe existing zoning.

Urban Design GuidelinesNew developments are being proposed at muchhigher densities than those that currently exist inNoHo’s historic core: five- to 15-story buildingsversus one- to two-story buildings. The panel sup-ports this level of development, particularlyaround the Metro station area, as a means of cre-ating a strong critical mass of residents and work-ers who can support local businesses and culturalvenues. However, without clear design standardsin place by which to review proposals, these proj-ects might overpower, and in some cases eradi-cate, the local, historic, and eclectic character ofthe district. Guidelines that will specify howlarger-scale developments may coexist adjacent tolower-density residential, commercial, and indus-

Design guidelines areneeded to improve theway buildings address thepublic realm, avoidingresidential buildings suchas these that loom overthe street with no set-backs or open areas.

The Cumpston andChandler neighborhoodjuxtaposes attractiveSpanish bungalows (left)with architecturally un-distinguished multifamilybuildings (far left) that arerapidly deteriorating.


trial buildings must be reviewed and definednow before it is too late. Similarly, these newprojects must take into consideration the largerpublic realm: the connection and integration of new streets, streetscapes, and public openspaces. The panel’s conceptual sketch for anopen-space network is presented in the accompa-nying illustration.

The panel was given access to a number of previ-ous planning studies for the NoHo area. Two ofparticular note are the urban design study by theJerde Partnership and the draft urban designprinciples developed by Pat Smith, AICP, withinput from the Urban Studio/John Kaliski. Thesestudies have addressed the need for definingurban design and development guidelines that canbetter assist the CRA, the MTA, and the privatedevelopment community in achieving design ex-cellence. The panel strongly recommends that theCRA build upon the solid groundwork that has al-ready been laid in these studies. In particular, the

panel recommends that, working in close collabo-ration with the MTA and the community, the CRAadopt not only a revised general redevelopmentplan for the area, but also a new “Design for De-velopment” document that would specify detaileddesign guidelines for all new development and re-habilitation projects in the redevelopment area.

Since the panel generally supports the land usescurrently permitted in the area, it recommendsthat the CRA use a “form-based” code approachto design guidelines rather than a traditional use-based code. A form-based approach would concernitself primarily with the appropriate distributionof massing, building heights, and design charac-teristics of buildings throughout the district,rather than regulating the uses of those buildings.Form-based guidelines focus on the streetscapeand public spaces and how buildings relate to eachother and to the public space. They can be particu-larly helpful in creating and preserving places ofdistinct character, and can also be used to protect

The panel’s concept for anetwork of open spaces.

Burbank Boulevard

Tuju

nga

Aven

ue

Chandler Boulevard

Magnolia Boulevard


Vine

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Ave

nue

Weddington Street

Cumpston Street

N

Key:

Boulevard Treatmentwith Street Trees and Landscaped Median

Landscaped Pedestrian-Oriented Streets

Additional Streetscape Enhancement

NoHo Park/School Green Spaces

Greenway

Civic Gathering Space


areas of undeveloped land or lower-density uses.When implemented well, form-based guidelinescan also expedite the development process, sincebuildings that meet the guidelines can be approvedmuch more quickly than under a traditional build-ing-by-building review process. Arlington County,Virginia, has successfully implemented a form-based code along the Columbia Pike corridor, andTimothy Lynch, the executive director of the Co-lumbia Pike Revitalization Organization, could bea resource to the CRA in devising an effective de-sign review process.

NoHo’s design guidelines should address issuesrelated to building design (massing, materials,and sustainability), as well as to the public realmand site planning. The panel did not spend timeaddressing all these issues but instead focusedon the critical design issues that could have an im-mediate impact on pending development projects.These suggestions are obviously preliminary innature, and the panel encourages the CRA to con-tinue to develop a more detailed and thorough setof design standards.

Land Use, Density, and Intensity ofDevelopment• The Lankershim Core: Consideration should be

given to requiring a minimum floor/area ratio(FAR) in the immediate transit station area tomaximize the development potential of the tran-sit adjacency over time. A minimum buildingheight (three stories or more) might also be ap-propriate. The panel recommends a maximumbuilding height of 15 stories, consistent with asuburban downtown core district. Mixed-usedevelopment should be promoted for all rede-velopment sites in the core.

• The Arts District: In order to preserve the dis-trict’s laid-back character and historic buildings,the panel recommends that new construction belimited to a maximum height of two or threestories and that when existing buildings aremodified, a setback be required for all floorsabove two stories.

• The NoHo Park and Cumpston/Chandler resi-dential neighborhoods: As property valuesdrive density up from single-family homes tosmall apartment buildings, the panel recom-

mends that building heights be restricted to amaximum of five stories.

• Back Lot District: The panel suggests promot-ing infill residential development, especiallylofts and live/work units, while preserving theneighborhood’s existing light-industrial, mixed-use character. A four-story height maximum isrecommended.

Ground-Level Building Use and Design• The Lankershim Core: All ground-level uses

should be retail or cultural uses. Ground-floorspaces within new buildings in this districtshould be designed with a minimum floor-to-ceiling height conducive to retail/entertainment/cultural uses (14-foot minimum), with a minimumof 75 percent glazing—regardless of whether re-tail is the intended use in the near term. Parcelssouth of Chandler Boulevard within this districtare encouraged to set back ten feet from thebuild-to line above the second story.

• Weddington Street and Chandler Boulevard:Special attention should be paid to establishinga streetscape conducive to walking on thesekey east-west pedestrian circulation corridors.Residential, retail, and cultural uses should bethe predominant ground-floor uses. Floor-to-ceiling heights should be designed to accom-modate retail, cultural, or live/work space (14-foot minimum).

General Building Design and Massing• All new or renovated buildings should conform

with build-to lines along the major streets.

• Distinctive corner-building massing is encour-aged for buildings fronting the intersection ofLankershim and Chandler Boulevards, wheremaximum building heights are allowable.

• Building massing for parcels at the intersectionof Lankershim Boulevard and WeddingtonStreet is encouraged to strengthen and promotethe arts district’s historic and civic character,established in part by the former Security Pa-cific Bank building and the El Portal Theater.Corner massing should not exceed five storiesat this intersection.

Parking and Circulation• Exposed parking-garage facades should be dis-

couraged within the Lankershim core and thearts district.

• Parking garages should be located midblock andwrapped with other uses when fronting a majorstreet, including the important pedestrian con-nector streets such as Weddington Street.

• Very large-scale parking garages (such as thosefor MTA parking requirements) should be dis-couraged. Instead parking needs should be metby multiple smaller, conveniently locatedgarages throughout the district.

• Parking entrances and other curb cuts shouldbe discouraged along Lankershim Boulevard,Weddington Street, and Chandler Boulevard.

• Improved pedestrian and vehicular circulationshould be promoted throughout the neighbor-hood by introducing new streets and breakingdown the scale of large superblocks.

Streetscapes• A landscaped center median along Lankershim

Boulevard between Burbank and CamarilloStreet should be provided, and the existinglandscape and hardscape elements along thecorridor should be enhanced.

• Sidewalks should measure a minimum of 12 feetwide along Lankershim, Magnolia, and Chan-dler boulevards and should be landscaped.

• A unified design for street furniture and light-ing should be established and maintained.

• Neighborhood streets should be enhanced byadding landscape treatments and lighting.

Open Space• The regional bikeway system should be en-

hanced with generous landscaping and pedes-trian amenities, and it should be linked with thecommunity’s green spaces.

• A central civic gathering space should be devel-oped that can be programmed with communityevents, festivals, plays, concerts, and other spe-cial events.

• Existing green spaces should be improved, andthe ballfields and playgrounds at the schools inthe area should be incorporated within theopen-space network.

• Small public park spaces should be created inresidential areas that do not have them.

Neighborhood Preservation• Neighborhood connections to existing civic re-

sources, including the schools, library, recre-ation center, post office, health center, andYMCA, should be strengthened.

• View corridors to important civic uses should bemaintained and strengthened.

• Residential districts should be anchored withcivic architecture and uses.



Having a vision for North Hollywood is criti-cal, but knowing how to make the vision areality is equally important. The two leadplayers, the CRA and the MTA, can pre-

pare the area and the deliver the key developmentsites. Private landowners have equally criticallead roles in bringing their properties into play.Other stakeholders in the community have im-portant supporting roles to protect, preserve, en-hance, and market the NoHo Arts District and thebroader NoHo community.

Five Key StrategiesThe panel has recommendations for these stake-holders regarding five implementation strategies:special purpose organizations, marketing, finance,planning, and collaboration. The panel also offerssome recommendations specifically for the MTAjoint development program.

Special Purpose OrganizationsThe key goal should be to differentiate North Hol-lywood from other competing locations. NoHo’sbest asset is its unusual arts district, which shouldbe strengthened for the long term. This commu-nity identity is as important as the subway stationand the bus rapidway in creating new market op-portunities. Therefore, a top priority for CRA re-development efforts should be the establishmentof additional cultural anchors along Lankershim toenhance the existing arts district. Such anchorsmay include the World Animation Center, a relo-cated and expanded YMCA, a theater center, andan art-house cinema.

The existing arts organizations will also need nur-turing and protection. A new concept favored bythe panel would be establishing a nonprofit foun-dation, the NoHo Arts District Foundation, to ac-quire properties such as existing small theatersand gallery spaces so that their physical integrityand cultural uses can be maintained regardless of

rising property values, which could otherwiserender them no longer economically feasible. Al-though one developer active in the area remarkedthat the arts district should be allowed to succeedor fail on its own, the panel does not agree. Thearts, at all levels, need to be sustained and sup-ported in order to remain viable. The panel be-lieves that the district’s artistic character will infact increase the value of new development, bothresidential and commercial. It is not unreasonableto require developers to underwrite, in some fairmanner with the CRA and the MTA, the creationof a NoHo Arts District Foundation.

The NoHo Theater and Arts Business Collabora-tive has recently begun operations without yet of-ficially establishing itself as a nonprofit organiza-tion. An organization such as this could serve asthe genesis for this foundation, since it already hasthe cooperation of many of the arts and theaterentities and leaders. Funding could come from avariety of sources, including established founda-tions and corporations that support the arts, gov-ernment grants, and special events, but the panelbelieves that a dedicated revenue source would beneeded for the foundation to make a significantimpact, especially since property values will con-tinue to rise as the area matures. Other implemen-tation tools recommended by the panel will serveto preserve the storefront character of the mainboulevards, but in order to retain their use for thearts, some form of ownership control will need tobe asserted as well.

There is already a percent-for-art requirement fornew development projects, and this is a notewor-thy start. But the use of these funds is controlledby the project’s developer, and so the results canbe spotty. The panel believes that every new proj-ect should dedicate its required arts contributionto the proposed NoHo Arts District Foundation.In addition, the CRA needs to take a proactiverole in dedicating a portion of tax increment fi-

Implementation


Two desirable uses that would optimally locate inthe NoHo core are hotel and office. Under existingzoning, the western portion of the MTA site alonecould support as much as 1.2 million square feet ofoffice space. Absent proactive intervention, how-ever, it could be a long wait before sufficient de-mand for these uses materializes.

The panel recommends that the joint marketingteam approach both Hilton and Marriott, educatethem about what is happening in NoHo, and askthem which hotel products might be appropriatefor this market today and which might become ap-propriate as other components of the NoHo visionmaterialize. It may be that there is enough pre-sent market demand for an extended-stay hotel ora facility similar to the Oakwood Garden Apart-ments. Regardless of whether Hilton or Marriottthink there are sufficient current hotel opportuni-ties, the team should ask for a good demand analy-sis of the area as a whole, not an opinion on a spe-cific site. The resulting information will be morevalid than any consultant study as to if and when a hotel will be feasible.

Office developers know that the tenants to filltheir buildings generally are already locatedwithin two to three miles of their site. The NoHomarketing team should inventory the existing of-fice users in the immediate area—especially thelarger users—to determine their immediate andfuture needs and to make them aware of the avail-ability of office land nearby. Keep in touch withthe inventory list. Potential tenants forget andneed to be reminded that NoHo can be part oftheir space planning. Pay close attention to changesaffecting major office users, because they mayeventually need significant new blocks of space.

nancing to this foundation as well, perhaps seed-ing it with significant funds in the beginning sothat a critical mass of structures can be pre-served before prices escalate further. The man-agement of the arts foundation would include acombination of the arts, business, and develop-ment communities so that all their interestswould be mutually served.

The panel is also aware that there have been ex-tensive efforts to date toward creating a businessimprovement district (BID). There is currentlyabout $1.5 million available to fund this district.The panel strongly encourages the property own-ers to vote for the creation of this BID, whosepurposes would include promoting the area, man-aging a “clean and safe” program, and maintainingstreet furniture and other elements of the publicrealm. This function is a critical part of a success-ful redevelopment effort, and annual contributionsfrom area stakeholders, including the owners ofyet-to-be-developed properties, are a common andjustifiable means for raising the necessary funds.

MarketingAs previously discussed, there is presently astrong market in North Hollywood for rental andownership residential product, a good market forneighborhood retail, and little or no market foroffice, hotel, or regional retail. All markets arecyclical, and those that are hot today will not nec-essarily stay so. The panel recommends that thebusiness community, the MTA, other propertyowners, and the CRA form a joint NoHo market-ing team and become proactive in creating and ex-panding opportunities for balanced development,rather than waiting passively for new market op-portunities to emerge.

The panel’s proposedNoHo Arts District Foun-dation would help smalltheaters and galleries likethese to purchase theirbuildings before risingproperty values pricethem out of the neighborhood.


Government agencies lease substantial space inthe area, and these leases have been importantcatalysts in starting new buildings in North Holly-wood. These catalysts do not have to stay wherethey are. As existing leases near their end ofterm, use preleasing by government agenciesfor five-year terms as the catalyst for new officebuildings.

Retail space is marketed by retail real estate bro-kers who represent various retail tenants. Goodbrokers will not recommend a location until theyhave done research on the area and are comfort-able that their clients will do well there. Doingthis research takes time that they will not spendunless the available space will enable them todo several deals and make good commissions.Macrolevel retail feasibility studies for the studyarea show little retail demand, owing to area de-mographics and existing competition. The sales ofretailers in the area, however, suggest that themarket is much stronger than it is currently per-ceived. The joint marketing team should quantifyhow existing retailers are doing, identify the fewgood retail brokers who work in the area, and ap-proach them in person to inform them about themarket, available space, and development oppor-tunities. Make it the team’s business to providethese brokers with all the information they needfor their clients. The goal should be to make thebrokers either a formal or informal part of themarketing team.

NoHo’s rental residential market is strong, asevidenced by the several projects going forward,but the best plan for the area is not one of 100 per-cent apartments. A broader spectrum of residen-tial products will stabilize the area and reducemarket risk. Elsewhere in the nation, rental mar-kets have become soft, and real estate capital is nolonger flowing into apartment projects. This maywell happen here in the near future. A balance ofother housing types (senior housing, work/livehousing, condos, and other new high-densityownership types such as stacked townhouses)should be added to the planned mix of housingproducts. Developers specializing in these prod-ucts should be identified and approached for de-velopment proposals.

FinanceThe panel believes that the CRA should reorderits funding priorities. Rather than using public fi-nancial resources to write down land for develop-ers, the agency should use resources to make themarket stronger—lifting demand and makingprojects feasible at today’s land values. Land pur-chase subsidies should be used only to facilitatecultural or strategic developments. Subsidizingmarket-rate housing is no longer a good use of the CRA’s financial resources. Land assemblageshould continue to be a CRA tool, but primarily asa way to make the development process quickerand more attractive.

The CRA and the MTA have already made sub-stantial investments that should make the NoHoarea more attractive for developers. They cannotrest on their laurels, however, and must join to-gether to engage the city and the county in mak-ing the additional streetscape, lighting, and roadimprovements that are needed to create a livelypedestrian- and transit-friendly environment. TheLos Angeles Department of Transportation is akey stakeholder in NoHo, but it doesn’t appear toknow that yet. The NoHo vision needs to be widelypublicized among all of the agencies with capitalimprovement budgets that impact the area.

CRA Project Planning and ImplementationThe panel’s suggestions for the CRA are intendedto strengthen its capacity to plan and manage theNoHo redevelopment effort. Perhaps most impor-tant, the panel believes that the CRA needs to re-organize and to call on outside talent with expe-rience in real estate deal making. The agency’sinternal structure should be organized at the local

A proactive marketingeffort is recommended to address office vacan-cies and create balanceddevelopment opportunities.


level by function, separating planning from invest-ment and both from community relations.

The CRA should promulgate design guidelines forall properties in the study area. These guidelinesshould be concise yet specific and should clearlyset forth the rules of engagement for future devel-opment projects. Agreement on these guidelinesmust be obtained from the MTA and any othergovernment entities involved in the project ap-proval process prior to the MTA’s release of anysolicitation for development proposals. This step isessential. In the solicitation, the MTA should setforth its requirements for replacement of facilitiesand protection of its interests, but development onthe site should be controlled by the CRA-developedguidelines.

The objective should be to support the controlledand coordinated redevelopment of the area. TheCRA must streamline what appears to developersto be a ponderous approval process, especially forprojects that require a change in zoning and thusare not “by right.” Subjecting developers to layersof review and the conflicting requirements of vari-ous public agencies results in confusion, wastedresources, and discouragement. Developers hateuncertainty and will go elsewhere if confrontedwith too much bureaucracy. The locus of controlshould remain with the CRA, but the processshould require sufficient input from other in-volved agencies to ensure that their interests aremet without subjecting developers to fruitless du-plications of effort. The CRA should be empow-

ered to issue the requisite approvals for a projectto move forward expeditiously.

Rather than wait for developers to make site-specific proposals, preapprovals based on theadopted redevelopment plan vision should be putin place (i.e., this site is already approved for aten-story building with this density, this setback,and so on). Just as suburban office park develop-ers put in the roads and utilities to sell their sitesto future tenants, the CRA should “set the table”for development by clarifying the regulatory ap-proval process as much as possible prior to devel-oper involvement.

CollaborationIn the panel’s estimation, every participant in theNorth Hollywood redevelopment effort has some,but not all, of the qualifications necessary to cre-ate high-quality projects. The combination of twoor more stakeholders collaborating on a particu-lar site can produce a powerful development forcesignificantly greater than what any one participantalone could achieve. Such collaboration should bethe rule and not the exception, and should bestrongly encouraged from the top down. Collabo-ration requires flexibility, compromise, a willing-ness to assume some risk, and a determination toresist the separate institutional imperatives thatotherwise undermine joint undertakings. Theserequirements can be challenging when two ormore public-sector agencies, each with differentagendas, share a public stage. Thus, leadershipat the very top must pave the way for close, sus-

Improving the publicrealm with pedestrian-friendly streetscapeimprovements should be a priority.


tained cooperation between the CRA, the MTA,and other public agencies. These entities shouldaim to speak as one voice to the business commu-nity. The reward, as every great actor knows, isthat strong fellow actors only serve to make theoverall performance better. Such partnerships,however, should be undertaken on a site-specificbasis and not broadly for the entire area. Partner-ing on one site is difficult enough; doing so on mul-tiple sites exponentially increases the difficulty.

Examples of possible financial collaboration toolsthat could be used in various combinations to im-prove project feasibility include coupling CRAtax increment financing with MTA flexibility inground-lease terms; tax abatement benefits; de-veloper construction of improvements in exchangefor favorable land-lease terms from public enti-ties; inclusion of investors with longer-term in-vestment goals, such as pension funds and lifeinsurance companies, in financing projects withlonger-term upside potential; and public agencylead tenant commitments.

There are also many opportunities for more indi-rect forms of financial collaboration. For example,parking should be viewed as a collective resourcefor the entire area. MTA parking spaces should beshared with other area uses during nonpeak hoursand should be physically combined with non-MTAparking uses to increase economies of scale andreduce per-space costs. Spaces built for area build-ings should be leased to developers, and the CRAshould promote this as an appropriate parking

source for new projects. The MTA could adoptthe role of parking finance and management czarin the area and view this role as a profit center.Throughout the nation, parking at mass transitstations is becoming paid parking. While it may beimportant to offer free parking at the Metro sta-tion today, as ridership in the system builds, theday will come when it is feasible and thus desir-able to charge for parking. The MTA should planand prepare for this eventuality.

Finally, it goes almost without saying that theCRA and the MTA must work together to pro-mote the arts district. New avenues for this part-nership should be developed. For example, thepanel believes that MTA sponsorship of the annualNoHo arts festival would dramatically increase at-tendance and thus ridership.

Recommendations for the MTAThe MTA’s extensive land holdings present extra-ordinary development opportunities that may notbe fully appreciated by the development commu-nity. To capture the potential of these sites, theMTA has instituted a joint development programto forge the public-private partnerships necessaryto bring these projects to fruition. The programhas been successful, but its effectiveness, espe-cially in developing the North Hollywood sites,could be enhanced through the implementation ofthe following recommendations.

The ULI panel and the CRAand MTA staffs discussthe challenges and oppor-tunities for redevelopmentin North Hollywood.


Internal Resources and ProceduresThe joint development program must be made apriority within the MTA and supported by the en-tire organization. Within the last four years, thewell-established joint development program of theWashington Metropolitan Area Transit Authorityin Washington, D.C., has approved projects thatwill generate approximately $145 million over theterm of the agreements. Given the amount of de-velopable property that it owns, the MTA’s jointdevelopment program has a similar potential toproduce revenue as well as to increase ridership,but to achieve these objectives the program musthave the explicit support of top management andother departments throughout the organization.

Multidisciplinary staff. Success begins with astrong, committed program staff, dedicated solelyto joint development activities and composed ofprofessionals from many disciplines. Staff shouldhave extensive experience in managing public andprivate development projects, planning, financialanalysis, and real estate law. In other words, MBAs,planners, and lawyers should be on board, as wellas people with direct development experience tolead the program. Supplementary consultant re-sources may be used as necessary for specializedtasks beyond staff expertise, but their involve-ment should be kept to a minimum.

Interdepartmental support. Other departmentssuch as operations, general counsel, and engineer-ing must cooperate with joint development staff toget projects underway. Solving problems rather

than creating obstacles must be the rule, and theteam approach should be emphasized in a revisionof the agency’s “Joint Development Policies andProcedures” documentation.

Consolidation of proposal review process. The jointdevelopment solicitation and evaluation processshould be reviewed to ensure that it is compre-hensible and effective. The panel reviewed theMTA’s flow chart entitled “Joint DevelopmentImplementation Procedures,” which details thesteps involved in the process. It is a two-step eval-uation, the first level of which is a checklist reviewseemingly used as a screening tool. If a proposalmeets this threshold, a recommendation is thentaken to the board and approval is sought to exe-cute an Exclusive Negotiating Agreement (ENA).The second level is an evaluation of additional,more detailed information that the developer sub-mits after execution of the ENA and subsequentnegotiation of an agreement for which board ap-proval is sought.

The panel suggests consolidation of some of thesesteps. The developer should be required at the out-set to submit a very detailed proposal that is thor-oughly reviewed by the evaluation team, with arecommendation on selection of a developer takento the board as a first step. This would ensure thatthe board only has to consider a serious proposalthat has met all the fundamental requirements.The second step should be approval of terms thathave been further negotiated (to the MTA’s ad-vantage, of course) and set forth in a term sheet

Metro station areas canbe important public gath-ering places that addvalue to surroundingdevelopments, which inturn provide the peoplewho energize the stationareas.


with a request that the board authorize staff toincorporate these terms into an agreement. Nofurther board action should be necessary.

Procurement policies. Joint development should be exempted from the MTA’s standard procure-ment policies and procedures, and a new set ofprocedures should be developed that would per-mit the requisite coordination with entities out-side the MTA and would expedite the processingof proposals. Selecting a developer is not likebuying routine supplies or services and shouldbe not be treated in the same manner withinthe organization.

Parking facilities. The issue of replacement of MTA facilities, especially surface parking facili-ties, should be addressed before offering a site fordevelopment, if possible, by determining the alter-natives for relocation of interim and permanentfacilities and identifying possible financing alter-natives to the developer’s assumption of the cost.Creative solutions should be considered, such asconsolidating parking into several smaller struc-tures instead of one large behemoth or devising a system of shared parking. The desirability of alocal shuttle bus service (and possible mechanismsfor funding it) should also be considered at thisstage in the process.

External CollaborationThe MTA’s joint development program cannot suc-ceed without the informed and enthusiastic partic-ipation of numerous external stakeholders. Theearlier in the process that the MTA can engage

the community, developers, and other agencies indiscussions about potential project parameters,the better.

Circulate an annual work program. The MTAshould consider the release of an annual “Joint De-velopment Work Program” document that wouldbe distributed to the CRA and other jurisdictionalrepresentatives to notify them of the MTA’s inten-tion to market specific sites in the upcoming fiscalyear. Development issues, priorities, and con-straints could then be discussed with the local ju-risdictions and addressed in advance of the releaseof any solicitation. This additional effort at com-munication with local governments is essential toachieving a smooth development review processand can save both the MTA and its developerpartners much wasted time and effort. This offersa good time to begin the process of organizingpublic support for development concepts and toidentify incentives that could be put in place to en-hance the development opportunity. Any possibil-ity of assemblages with adjacent public or privateland should also be explored. The goal of such co-ordination is to prepare the jurisdictional repre-sentatives who will participate in the project ap-proval process for the release of the site and toenhance the attractiveness of the site offering tothe development community.

Joint marketing effort for commercial development.

The CRA and the MTA must cooperate to ensurethe successful development of the MTA NoHoproperties. Since the panel’s vision for the NoHo

Redevelopment of surfaceparking lots as vibrantmixed-use places that willgenerate tax revenues andtransit ridership has beena successful strategy fortransit agencies aroundthe nation.


major stakeholders and that everything possiblehas been done to reduce the developer’s risk to anacceptable level.

Requests for Proposals. The momentum for devel-opment must be sustained. The joint developmentprocess is not a passive exercise. Rather thanwaiting for an unsolicited proposal, the sitesshould be aggressively marketed. The marketingeffort should culminate in the issuance of an RFPfor the sites with a commitment from the CRA toexpedite approvals and streamline the processfor the selected developer. The acceptability ofphased development and long-term buildoutshould be emphasized. Alternatively, the MTAmay want to consider the use of real estate bro-kers to identify prospects and continue the mar-keting effort if there is no satisfactory initial re-sponse to the RFP. A developer may be willing toassume a broker’s fees if the broker is able to se-cure the opportunity on reasonable terms. Inter-ested parties would have to submit the standardinformation required in an RFP.

Inclusive proposal review process. The MTA’s pro-posal evaluation process should be as inclusive aspossible in order to ensure CRA and public sup-port of the selected developer. The CRA, otherdesignated public agencies, and representatives of

study area includes a significant component ofhigh-density commercial development for whichthe market is currently uncertain, a joint market-ing effort should be instituted to jump-start near-term commercial development interest. Such aneffort could include a developers’ forum withprominent support from the mayor, the city coun-cil, the county, and the CRA to provide informa-tion on the NoHo vision and the particular oppor-tunities these sites present. Financial incentivesshould be highlighted that would enhance the at-tractiveness of this location for office/retail devel-opment, such as:

• discounted ground rent until project stabiliza-tion;

• replacement of parking and station facilities atno cost to developer;

• property tax abatement;

• reduction or waiver of fees; and

• assemblage opportunities with adjacent publicor privately owned land.

The vision for NoHo should be repeatedly em-phasized to instill developer confidence that in-vestment in commercial development in this rela-tively untested market has the full support of the

North Hollywood’s formertrain station could be thesite of a new intermodaltransit center integratedwithin a mixed-use devel-opment that would includehotel, cultural, retail, office,and/or entertainment uses.


integrated approach to development on its proper-ties, all three of the MTA properties at the stationshould be offered for development at the sametime, including the site of the train depot and theproperty north of the Orange Line right-of-way,unless there is an exceptionally strong rationalefor offering them piecemeal. The MTA should beseeking landmark projects that will interface withthe new transportation facilities and enhance theireffectiveness. Given the size of the parcels, a mas-ter developer and phased development strategywill be required, ultimately involving multiple de-velopment entities. Only highly qualified and well-financed developers need apply.

community organizations should be involved in allaspects of the process except for the negotiation ofproprietary matters between the MTA and the de-veloper.

Competitive negotiations. Simultaneous negotia-tions with two or more competitive developersshould be considered to achieve project objectives.A “selected developer” and an “alternate selecteddeveloper” could be designated.

Finally, the panel believes that the importance ofconsolidating subway and bus rapidway facilitiesat the North Hollywood station into a new multi-modal transportation center cannot be overem-phasized. In order to ensure a well-balanced and


The panel believes North Hollywood is wellpositioned for a dynamic period of growthand revitalization. The primary challengefacing the CRA, the MTA, and the commu-

nity will be to guide that growth and develop-ment so that an integrated urban village neighbor-hood is created, not merely a series of individualprojects.

The panel advocates a vision for NoHo featuring abalanced, mixed-use downtown core and a vibrantarts district surrounded by stabilized and strength-ened residential neighborhoods that provide avariety of housing options for residents of all in-come levels. The eclectic, funky character of NoHoshould be preserved and enhanced with new dining,entertainment, retail, and arts attractions. Officeand hotel uses can be added to the mix as the mar-ket for these products develops; until that time, de-velopment opportunities should be reserved forthese uses so that the full potential of the transitinfrastructure will be realized. Streets and publicspaces should receive priority attention so thatresidents, employees, and visitors all enjoy andfeel safe walking within the neighborhood, linger-ing at a sidewalk café, or biking to visit a friend.

Achieving this vision will require determined andenlightened leadership and skillful collaborationacross agency boundaries. The foundation for suc-cess exists in the work already done by the MTA

and the CRA and in the planning and design stud-ies already completed. The task now is to move tothe final implementation phases of the revitaliza-tion effort. The panel’s key recommendations aresummarized as follows:

• Strengthen the arts district. Use available re-sources to add arts institution anchors; create anarts foundation to purchase and preserve keyproperties; restrict building heights to hold prop-erty values down and protect the district’s ex-isting character; and form a BID to market andmaintain the district.

• Create a livable mixed-use downtown. Consoli-date transit services at an intermodal transitstation facility; prepare design guidelines thatprovide a planning framework for a walkable,livable community and at the same time expe-dite the development process; and don’t allowthe strong market for rental residential devel-opment to overwhelm the area.

• Invest in the public realm. Give LankershimBoulevard a real boulevard treatment, with alandscaped median, street trees, planter boxes,and furniture, so that traffic is slowed in the core,shoppers, arts patrons, and other walkers arewelcomed, and drivers are signaled that inter-esting attractions are nearby; implement effec-tive “clean and safe” programs that will improvethe overall maintenance and safety of the com-munity; and build on the existing NoHo park andgreenway plans to create a network of pocketparks, landscaped streets, and bikeways through-out the community to provide visual relief fromthe intensity of development in the area.

• Be proactive in marketing the area and reduc-ing development uncertainty. Coordinate and beaggressive in marketing the area to developersand potential tenants; streamline the CRA andMTA development approval processes and usedevelopment guidelines to preapprove as many

Conclusion

NoHo’s potential as awalkable, arts- andtransit-oriented urbanvillage is already evident.


sites as possible; create shared parking strate-gies and package development incentives tomaximum effect; and use the creative energy ofthe community to inspire and support the revi-talization process.

The panel is confident that NoHo is on the vergeof emerging as one of Los Angeles’s hottest newneighborhoods, and the community should aspireto nothing less. As Daniel Burnham so aptly re-

minded planners at the turn of the last century,“Make no little plans; they have no magic to stirmen’s blood.” North Hollywood has its own specialalchemy, and with the public, private, and non-profit sectors all working together in creativepartnership, the panel expects that the commu-nity’s transformation into a full-fledged urban vil-lage will appear magical indeed.


Frank J. SparicioPanel ChairRumford, Rhode Island

Frank J. Sparicio is founding principal in Corpo-rate Real Estate Strategies, a consulting firmdealing primarily with the repositioning and dis-position of assets resulting from consolidationswithin the corporate sector. Previously, he servedas senior vice president of Fleet Boston, where hewas responsible for the bank’s corporate real es-tate assets, including 10 million square feet ofcommercial space and more than 800 branches,offices, and operations centers.

Before joining Fleet Boston, Sparicio was respon-sible for all major real estate transactions as di-rector of corporate real estate for GTE, a positionin which one of his principal responsibilities in-volved the relocation of the company’s entire tele-phone operations to a new headquarters in LasColinas, Texas. Earlier, he served as an officer ofHarco, the Hartford Insurance Company’s realestate subsidiary.

A member of the Urban Land Institute (ULI) formore than 30 years, Sparicio has served as vicechair of its Corporate Real Estate Council. Healso has served on a number of advisory servicespanel assignments.

Douglas BetzDayton, Ohio

Douglas Betz serves as a senior partner of Wool-pert LLP, a nationally known A/E/P firm of 650people. He is the principal-in-charge of the firm’sdeveloper and private-sector group, which totals85 people. He is experienced in leading multidisci-plinary teams of professionals and is responsiblefor managing special projects that involve plan-ning expertise.

Betz’s responsibilities include directing a nationalpractice that focuses on the design of theme parks,resorts, retail projects, industrial/office parks, andcorrectional facilities. He has over 25 years of ex-perience in representing clients at planning com-mission meetings, zoning hearings, city councilmeetings, and other public meetings.

An active member of ULI, Betz has served on sev-eral advisory services panels and project analysisteams and is a member of the Community RetailCouncil (CRC Green Flight). He is a graduate ofUniversity of Cincinnati, where he received abachelor’s degree in urban planning and design.

Toni L. GriffinWashington, D.C.

Toni L. Griffin currently serves as the deputydirector for revitalization planning in the Wash-ington, D.C., Office of Planning. She overseeslarge-scale redevelopment projects, neighborhoodplanning, and an overall strategic revitalizationplan for the city in coordination with other public,private, and nonprofit entities. She has spent thelast two years building a staff of seventeen plan-ners to tackle complex urban development andneighborhood planning projects, including revital-ization of the Anacostia waterfront; reuse of thedowntown existing convention center site; devel-opment of the historic St. Elizabeth’s Hospitalcampus; and completing strategic neighborhoodaction plans for every neighborhood in the city.

Previously, Griffin served as the vice president for planning and tourism development for theUpper Manhattan Empowerment Zone Develop-ment Corporation in New York City. Her princi-pal challenge was to position Harlem, a neighbor-hood with a rich and diverse African Americanand Latino cultural heritage, to take advantageof New York’s growing tourism economy. With asmall team, she created a comprehensive heritage

About the Panel


tourism initiative designed to stimulate economicdevelopment opportunities through tourism whilemaintaining the highest level of cultural preserva-tion and balance of gentrification.

Prior to moving to New York, Griffin was an asso-ciate partner with the Chicago office of Skidmore,Owings & Merrill LLP. Joining the firm in 1986after completing her degree in architecture at theUniversity of Notre Dame, she was involved inarchitecture and urban design projects includingcommercial and office developments in London,Barcelona, Sydney, and Beijing and a developmentplan for Chicago’s historic Bronzeville neighbor-hood. In her final role at SOM, Griffin managedthe Detroit project office for the General Motorsglobal headquarters at the Renaissance Centerproject. In addition to coordinating all architec-tural and engineering efforts between the clientand design consultants, her role also involvedworking with various city, state, and civic agen-cies to establish policy frameworks for the rede-velopment of the Detroit River waterfront andthe central business district.

In 1998, Griffin completed a year-long appoint-ment as a Loeb Fellow at Harvard University’sGraduate School of Design. As a Fellow, she ex-plored methods of using cultural heritage andhistoric preservation as a means toward creatingeconomic and community development in urbanethnic neighborhoods. Her activities that yearalso included teaching an urban design studio atthe school and traveling to Cuba.

Elisa HillWashington, D.C.

Elisa Hill is currently supervisor of propertyplanning and development for the WashingtonMetropolitan Area Transit Authority (WMATA) in Washington, D.C. In this capacity, she is one ofthe managers of WMATA’s joint development pro-gram, considered to be among the most successfulin the nation. Her duties include evaluation of pro-posals for development of WMATA properties andnegotiation of development agreements.

At WMATA Hill has worked with a number ofcommunities attempting to maximize the eco-

nomic development impacts of transit access, andshe has participated in numerous local planningand zoning processes. To date, construction alongMetrorail rights-of-way at or near WMATA sta-tions has totaled $15 billion. Hill is currently work-ing on strategies to position the remaining prop-erty in WMATA’s joint development inventory toreceive the maximum economic benefits.

Prior to joining WMATA, Hill was a principal in a residential condominium development firm and a deputy director of a federally funded communitydevelopment corporation, both in Boston. She is a graduate of Brandeis University, Columbia Uni-versity, and Boston College Law School. She hasalso completed the Minority Developers Execu-tive Program at the Massachusetts Institute ofTechnology.

Christopher W. KurzBaltimore, Maryland

Christopher W. Kurz is president and CEO ofLinden Associates, Inc., a regional real estate ser-vices and mortgage banking company engaged inthe financing, acquisition, development, and man-agement of commercial property. The firm alsoconsults for corporations on real estate matters.Previously, he was a cofounder, chairman, andCEO of McGill Development Company, whichgrew into the fourth largest commercial real es-tate development company in the Baltimore met-ropolitan area. Kurz served as chairman of theboard of directors and cofounder of Columbia Ban-corp and the Columbia Bank, a $500 million, pub-licly traded bank holding company. As a principalat Alex Brown Real Estate Group, Inc., he ac-quired investments for pension fund clients. Othercompanies with which Kurz has been involved in-clude the J.G. Smithy Company, Maryland Na-tional Corporation, and the Rouse Company.

Kurz holds an MBA from the Wharton School atthe University of Pennsylvania and a BA fromthe University of Pennsylvania. A ULI member,he has been chair of the Baltimore District Coun-cil, vice chair of the Small-Scale Blue DevelopmentCouncil, and a National Program Committee mem-ber. He is also a member of the InternationalCouncil of Shopping Centers, a past member of


the National Association of Industrial and OfficeProperties and the Mortgage Bankers Associa-tion, and a past board member of the CatherineMcAuley Housing Foundation in Denver.

Terry R. MargerumSan Francisco, California

Terry R. Margerum is a senior managing direc-tor of Sedway Group, a division of the CB RichardEllis Consulting practice. He has over 25 years ofexperience in upper management and consultingpositions in both the public and private sectors.He is an authority and frequent speaker on tran-sit-oriented development and public/private jointventures. He has extensive experience in redevel-opment, asset management, strategic planning,fiscal impact analysis, resort development, enter-tainment retail development, and developmentfeasibility studies. He also has substantial expe-rience as an owner’s representative in securingproject entitlements, especially in complex politi-cal settings.

In addition to many conventional purchase and saletransactions, Margerum has also been involved ina number of more complex negotiations, includinglong-term ground and air-rights leases, sale oftransferable development rights, developmentagreements among and between both public andprivate entities, joint construction and use agree-ments, and transit special access agreements.

His management experience has included execu-tive positions with the Association of Bay AreaGovernments; Vail Associates, where he managedmuch of the planning for Beaver Creek, Vail’s sis-ter resort; and the San Francisco Bay Area RapidTransit District (BART), where he was hired toestablish and direct the agency’s joint real estate

development department. He recently completeda transit-oriented development analysis of the newstations that will be built as part of BART’s exten-sion from Fremont to San Jose and Santa Clara.

Zane SegalHouston, Texas

Zane Segal is a project director, marketing con-sultant, and real estate broker with Zane SegalProjects, Inc. Specializing in mixed-use, residen-tial, retail, historic, hospitality, urban, and resortproperties, he has 25 years of experience in realestate venture management, development, con-struction, brokerage, and marketing on a range ofproperty types, including land, lofts, townhomes,custom homes, low- and mid-rise condominiums,hotels, retail centers, office buildings, subdivi-sions, and sports facilities.

He received his bachelor’s degree from the Mas-sachusetts Institute of Technology and a master of fine arts degree from the University of South-ern California, and he has studied graduate-levelarchitecture at the University of Houston.

Segal is vice chair of the ULI Houston DistrictCouncil and has served on three ULI advisoryservices panels. He was the founding executivedirector of the Museum District Business Allianceand the first president of the Houston Associationfor Film and Television and is often published andquoted by the media as a spokesperson for devel-opment, urban design, and the arts.

His community activities include participation inthe Regional Planning Committee of the GreaterHouston Partnership, delivering presentations onurban design for Imagine Houston, and serving aspresident of the Sparacino Company Dancers.

AN ADVISORY SERVICES PANEL REPORT North...

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