Land Surplus Act Could Delay YWCA Project

More than 200 public entities received a notification from the city informing them that the YWCA and former Water and Power properties are available surplus land.

The notification is required under Surplus Land Act (SLA), which went into effect on Jan. 1.

However, the law —which mandates the city must first offer available land to developers looking to build units with affordable housing — could hamper the city’s ability to move forward with developers that have already submitted proposals.

Under the conditions of the SLA, developers must commit to setting aside 25 percent of the units for affordable housing.

If a deal isn’t reached via the notice of availability, the city can put the extra land on the market as long as a 10-plus-unit project has at least 15 percent of its homes reserved for low-income households.

Interested developers must notify the city in writing of their interest to lease or purchase the land within 60 days of the notice.

“Ideally, the city desires to establish a long-term, fair market value ground lease or sale [as determined by an appraisal] of the development site,” the city’s April 8, notice of availability of Surplus Land reads. “However, the city is willing to consider alternatives that result in an overall superior project. In the event of a lease or sale of the development site, the ground floor use for the YWCA Building must be accessible to the public.”

After inquiring about the notice, Pasadena Now was told compliance with the SLA will cause a delay in the process of selecting a development proposal for the YWCA and Water and Power properties from the proposals that were received in response to the June 2019 RFP.

“It is also possible that compliance with the act may result in negotiations with entities designated in the act leading to approval of a development proposal received by one of those entities,” the email stated.

The city has been trying to find use for the dilapidated property since it acquired the famed building under imminent domain in 2012 for $8.3 million.

Housing advocates have called on city officials to place affordable housing at the site.

Pasadena’s rents have skyrocketed, and some apartments rent for well over $3,000.

In January, the City Council gave City Manager Steve Mermell direction during a closed session meeting on the YWCA on Thursday.

According to Mermell, the council made it clear that it wishes to see some form of affordable housing as part of any development in the Civic Center and to return with an analysis of the impact that may have on the price.

At that time, five proposals were being reviewed for the YWCA property.

The proposals included a 125-150 full-service Four Seasons hotel at the YWCA site along with 25 luxury residences at the former Water and Power site by Carpenter and Company of Boston.

Continental Assets Management in Arcadia proposed a four-star 167 hotel room, either a five-story 120 room market-rate unit building or a six-story 139 affordable housing unit is proposed at the Water and Power site.

A proposal by Edgewood Realty Partners from nearby South Pasadena would see a 164-room boutique hotel operated by Palisociety and a 70,000 square foot, five-story office building is proposed for the Water and Power site.

New Orleans-based HRI Properties LLC would create a 179-room hotel, of which 165 rooms would be in a new 83,000-square-foot building adjacent to the YWCA. Their proposal didn’t specify what the Water & Power site would be used for.\

The Ratkovich Company with the National Community Renaissance in Los Angeles is proposing two alternatives.

The first would call for rehabbing the building for office space. The second option calls for the rehabilitation of the building with construction of a new 59,000 square foot office building, or rehabbing the building and building a 142-room hotel.

On the PWP property, permanent supportive housing or permanent supportive housing and 15,000 square feet of leasable office space is proposed by Ratkovich.

The City Council was supposed to take up the issue regarding the hotel in March or April, but the city obviously had to change to gears to deal with the Coronavirus outbreak.