By CAROL E. SCHATZ
It seemed to make sense: build the highest buildings in an area of the city that actually wants density, and that can also best handle it because it is the regional hub for mass transit and freeways. Only in Los Angeles can this be a problem.
The City Council recently passed a very technical ordinance that makes it easier for developers of high-rise residential and commercial buildings to buy air rights to increase the height of developments in a very confined area in downtown L.A.
It is an attempt to finally correct a flawed policy that had been around for nearly 20 years. In the late ’80s the City Council passed the original Transfer of Floor Area Ratio, or TFAR, ordinance. It was so cumbersome, and the public benefit payment charged by the city was so high, that it was only used for one or two transactions in all this time.
The purpose of both the original and the recent ordinance was the same to encourage density in the heart of our city. No serious planner or academic could rationally argue that density does not belong in the center of our city. Downtown is where density belongs, and is welcomed by property owners and residents. Density helps to create that special urban hum that you feel in the great cities of this and other countries.
What is new and fabulous about our downtown renaissance is that we have created a demand for high-rise housing in a place where no one 10 years ago thought anyone would want to live. This new ordinance encourages both residential and commercial high-rises subject to the very intense checks and balances that any major project must go through in downtown and anywhere else in Los Angeles.
Moreover, contrary to recent news articles, this air space is not being sold in bulk, but rather on a project-by-project basis. Those who understand real estate know that all of the high-rise projects planned for downtown will not happen. But even if they did come to fruition, every plan ever written by the city and the private sector encourages density in downtown.
It is mind-boggling, therefore, to hear ruminations from academics questioning if density is good. Los Angeles, like it or not, is growing in population. But greater density is fought by just about every part of the city.
Density downtown, however, is quintessential smart growth: 50 percent of the new residents downtown also work in downtown, thus alleviating traffic, reducing air pollution and producing a better quality.
Do we need another plan to state the obvious? No, we need the tool of TFAR and other city incentives to encourage more residential and commercial development where it belongs downtown L.A.
The mayor, in both news articles and in his veto message, indicates that this is a good program. That would be consistent with his oft-stated support and encouragement of elegant density and his desire to see more cranes in the air his favorite bird. City Director of Planning, Gail Goldberg, is equally supportive of the concept. Ms. Goldberg should know: she was intimately involved with planning San Diego’s downtown, the densest part of that city.
While we were surprised and disappointed with the mayor’s veto of the ordinance, we understand that it was made on a political and legal argument that the mayor should have veto authority of the projects. While this type of provision was not included in the original ordinance, it is a point that at least can be negotiated.
We believe there needs to be a quick resolution to the impasse that has put the City Council at odds with the mayor. Timing is critical as the market and the momentum that has been created downtown may not last forever, and there are projects that wish to move forward using TFAR now.
It has taken us years to make downtown a coveted real estate market driven recently by residential development. We are constantly amazed and disturbed by city policies that seek to extract inappropriate mitigations from developers that have nothing to do with the effects of the project, but meet the social agenda of an extreme few.
What is refreshing about this new ordinance is that it seeks to encourage high-rise development rather than burden it with mandates. In addition, it ensures that the city can achieve a broad spectrum of policy goals by making developers pay a public benefit payment for each square foot of TFAR that they use. The city can then use this money for low income housing, public parks, transportation and other important social needs.
This is the right way to create a public-private partnership that will build a real downtown that will benefit every resident of Los Angeles.
Carol Schatz is president and chief executive of the Central City Association of Los Angeles.
