Caruso Agreed to Certain Stipulations

Caruso Signed a Legal Agreement with POV

Rick Caruso signed a written agreement with Pacific Palisades neighbors, who live north of Sunset (and near the proposed Village project), on April 27, 2016.

In an October 2016 Curbed L.A. Story, Caruso said he would ban Trump from The Grove because of his shortcomings saying, “If you want to be in public office … you’ve got to be compassionate, you’ve gotta be a gentleman, you’ve gotta be professional … I just don’t see him being any of that.” (In a 2017 story, Caruso later said that any talk of banning the president is inaccurate. “I was talking about his compassion and sensitivity to be able to represent everybody, and I still have that concern. But whether I agree with him or not doesn’t matter. We have to rally around him, and time will tell,” he says.)

That is why Circling the News is certain that Caruso will keep his word in the agreement because of his sensitivity to all Pacific Palisades residents.

That agreement came about because as the project progressed, neighbors north of Sunset in the Alphabet Streets were worried about traffic impacts and parking issues.

Neither L.A. City Planning nor Councilman Mike Bonin nor the Pacific Palisades Community Council seemed to be addressing those concerns. About 120 residents formed a working group, Protect Our Village (POV), to have a voice in hours of operation, parking, loading and unloading, construction work parking, resident complaints, outdoor performances, community room space, the movie theater and the liquor licenses.

In exchange for not objecting to any portion of the project at the L.A. City Planning Commission hearing that was to be held the next day on April 28, 2016, Caruso sent and signed the agreement (below) with two POV representatives.

April 27, 2016

Re: Pacific Palisades Village; Agreement regarding Conditions of Approval

Dear Protect Our Village:

We appreciate the considerable time and effort that Protect Our Village, an association of local Pacific Palisades residents, (TOY) have devoted to working with us to craft a set of mutually acceptable Project features and operating requirements for the Palisades Village Project (Case No. ENV.2015-2715.MND / CPC-2015 2714-ZC-SP-DRB.SPP) (“Project”). It is with pleasure that we set forth our mutual agreements here.

As the developer of the Project and in concert with POV, Caruso Affiliated / Palisades Village Co., LLC (“CA”) agrees to use reasonable good faith efforts to cause the City of Los Angeles to adopt, as conditions of approval of the Project, the matters summarized below (such matters, the “Project Requirements”). Any Project Requirements summarized below that are not reflected in City-imposed conditions of approval shall be the subject of a private agreement executed by CA. For the avoidance of any doubt, upon the mutual execution of this letter agreement by both CA and POV, CA shall be obligated to cause the Project Requirements summarized here to be set forth in either (a) City-imposed conditions of Project Approval, or (b) a private agreement.

In exchange for the agreements of CA set forth herein, POV agrees to use reasonable good faith efforts to support the Project at the City Planning Commission hearing on April 28, 2016, and through subsequent City hearings and processes. POV also agrees that it will not appeal any interim or final City approval of the Project or file litigation that challenges the Project or seeks to unwind such approvals, nor shall POV support, endorse, assist, or encourage any such efforts by others or attempt to prevent the approval and construction of the Project.

Neither CA nor POV will introduce the Project Requirements at the City Planning Commission hearing however within 5 working days after the hearing CA will introduce the Project Requirements to City staff and thereafter CA and POV will use their reasonable good faith efforts to cause the Project Requirements to be incorporated into conditions of final Project approval by the City Council; provided that any Project Requirements that are not incorporated as conditions of approval shall be set forth in a private agreement.

The Project Requirements, whether set forth in the City’s final conditions of approval or the private agreement, will be conditioned upon and will automatically take effect after the expiration of applicable periods for appeal or legal challenge to approval of the Project without appeal or legal challenge. The agreement entered into by CA shall apply to successor owners and operators of the Project.

The Project Requirements to be set forth in City-imposed conditions of approval or in a private agreement are as follows:

1. Maximum Hours of Operation:

(a) Retail tenants: may operate between 10:00 am — 8:00 pm

– Retail tenants may extend closing hours to 9:00 pm Sunday through Thursday, and 10:00 pm on Fridays and Saturdays only during the holiday season, which is defined as from the day after Thanksgiving through December 30.

• Bakery/Coffee/Breakfast operating hours: 7:00 am — 10:00 pm
• Restaurant operating hours may be 11:00 am — 11:00 pm with the exception that the restaurant in Building E (adjacent to Monument and park area) may operate from 11:00 am — 10:00 pm.
• No restaurant or food service establishment shall be located at the corner of Swarthmore and Monument.
• There shall be no stand-alone bars or large format restaurants.
• Public restrooms are to be attended when open; and shall be locked to entry between 10:00 pm and 9:00 am daily.

2. Parking:
   • All tenant leases shall require tenants and employees to park in the underground on-site parking structure. CA will make reasonable efforts to make tenant vendors and contractors to also park in the underground on-site parking structure. All CA employees are to be required to park in the lot, free of charge to the employee. CA agrees that lease provisions regarding required parking shall be clearly set forth and there will be no penalty or cost imposed on employees who burden their employer-tenants with the costs of on-site parking. CA shall oversee compliance and enforce leases regarding any breaches of parking clauses. CA shall cause internal security staff to monitor any tenant-employee parking violators, who shall bring violations to the attention of CA management. Violations of the no-parking on residential streets by employees will be reported to the oversight committee and CA management for enforcement.
   • Parking Validation Policies: two hours free parking will be offered and can be obtained from a tenant or concierge. Movie theater patrons will receive validation for three hours.
   • For Sunday farmers’ market vendors and guests, free parking will be offered from 6:00 am 1:00 pm. If vendor trucks are unable to fit under the overhead clearance for the underground lot they will not park in the neighborhood. CA will take reasonable steps to assure that promoters of the Sunday farmer’ market adhere to farmers’ market parking conditions.
   • All valet services must park cars on-site in the underground lot. Valet employees to park on-site in the underground lot. There shall be no off-site stashing or staging of vehicles. CA to provide adequate signage directing how to reach valet and drop-off zones.
   • CA shall support permit parking efforts of any block within 1,000 feet of the Project electing to seek permit/restricted parking; CA shall make permits and passes for any permit parking program available locally through its on-site management offices, if allowed by the City.
   • Signage shall be maintained to discourage parking on residential streets; way finding signs shall clearly direct traffic into the underground parking lot.
   • Illegally parked vehicles at or about the project property shall be towed.
3. On-Site Advertising:
   • No digital kiosks allowed.
   • Any advertising signs or boards within the project shall not exceed 22″ x 28″. All tenant above grade on-site advertising will not be larger than 22″ x 28″ other than movie poster advertising which shall not exceed 46″ x 68″.
   • On-site advertising to be limited to tenants, products, and movies offered on the property and other local Pacific Palisades Village businesses.
   • There shall be no advertising or commercial signage of any type on any building

(1) along Albright Street; or (2) along Monument Street west of Swarthmore Avenue.

4. Change in Use:
   • CA will enter into a covenant/condition not to change any uses for a period of 10 years from opening.
   • There shall be no exemptions sought or granted regarding parking requirements of the City of Los Angeles or Pacific Palisades Specific Plan, other than for the possible installation and maintenance of a community room, which meets all of the requirements set forth below.*
5. Construction Worker Parking: During construction of the project, all construction workers will park onsite or CA will provide a shuttle from an off-site location.

6. Shopping Carts: All shopping carts will be equipped with technology that prohibits the shopping cart from being taken off premises.

7. Service and Loading
   • All service and loading for the project will be internalized and occur only on Swarthmore Avenue or the alley between Swarthmore  and Monument Street.
   • Truck deliveries servicing the project, including UPS or similar delivery trucks, will be prohibited from staging in residential streets.
   • Signage shall adequately alert commercial delivery/pickup trucks they may not stage or wait on residential streets; ingress and egress routes for trucks shall follow the shortest, most direct path to/from Sunset Blvd. CA shall support efforts for the City of Los Angeles to establish signage on residential streets which limit truck access.
   • Refuse collection and commercial deliveries and pickups will occur only during the following times:

— Swarthmore Avenue: 9:00 am 7:00 pm (weekdays and weekends)

—Alley: 8:00 am — 7:00 pm (Saturday and Sunday)

—Alley: 7:00 am — 7:00 pm (Monday thru Friday)

8. Traffic/Road
   • CA will not promote, create or subsidize programs to encourage tour buses, taxis, free transportation, or private car services like Uber or Lyft to come to the project to shop or dine, except car services that transport 90272 residents or their guests directly to or from the development and their private residences in the 90272 zip code.
   • Uber, Lyft, other private car services, third party vehicle parking services and taxis to be prohibited from parking or waiting in nearby residential streets. A designated pick-up/drop-off location at valet area will be used for these purposes. CA will maintain signage informing 3^fd party drivers of location of and directions to the pickup/drop-off zone located at valet area.
   • Two (2) spaces on Swarthmore will be provided for drop off/pickup by private cars.
   • On Friday and Saturday nights, CA shall cone off traffic exiting the project parking lot to direct traffic to proceed as directly to Sunset Blvd. as possible from each exit, and away from the residential area starting at 10:00 pm. Coning hours will be monitored to determine if earlier coning or coning on other days of the week is necessary to prevent evening traffic from coming through residential streets.
   • There shall be no shuttles or buses allowed, except for shuttles for employees to park in an alternate location during holiday season.
   • CA shall take reasonable steps to from the City seek parking and meter expiration restrictions along Swarthmore Ave. which discourage late night parking and encourage parking in CA’s underground lot.
9. Resident Complaints

Residents will be able to send a complaint or concern via email to a local group (TBD) that will monitor submissions and work with CA management to resolve such complaints or concerns.

10. Outdoor Performances

Low volume music on sidewalks and patios shall comply with LAMC noise ordinances. If such music is offensive to the community, residents may request CA to adjust the volume or to discontinue music.

Amplified events may occur onsite until 9:00 pm and will be capped at four (4) events per month in addition to Friday and Saturday nights. All events shall comply with LAMC noise ordinances and applicable regulations.

11. Trademarks

Any CA trademarking of terms like “Palisades” or “Pali” shall be restricted to commercial development only, and not prevent any individual merchants from using those names.

12. Community Room Space

Allowance will be made for a community room that meets all of the following requirements:

• The space shall serve only as a community room, i.e., a space designed solely for Pacific Palisades community organizational meetings. It may not be used for private parties or events other than as a community organization function.
• Hours of operation: 8:00 am —9:30 pm seven days a week.
• if data indicate that the parking lot is 85% full during times when community room is used, or is potentially used, the days and times that the community room may be used will be restricted to avoid those times and days of the week. (85% includes times when the community room is in use — i.e., includes cars parked by attendees of the community room.)
• The room shall be located as far from off-site residences as reasonably possible, and in no case may be located at a site adjacent to a residence bordering the Project property.
• The room shall be no more than 1,250 square feet; maximum occupancy shall be the lesser of 125 persons or highest capacity established by the fire department.
• Required parking for the community room will be 10 spaces per 1,000 sq. ft. (i.e., 13 parking spaces for a 1,250 sq. ft. community room), and such required parking may be provided through bicycle credits as allowed under the LAMC.
• No alcohol or food may be sold. Limited food and beverages may be served (coffee and cake, wine and cheese or local take out); there will be no kitchen facility for use by the community room.
• The room will be free for use by Pacific Palisades based non-profit organizations.
• 3 hours free validated parking will be made available to users of the community room.
• CA will post the times that the community room is reserved on a daily basis.

13. Movie Theater
    • Maximum Operating Hours

Sunday — Thursday: last show starts at 10:00 pm.

Friday — Saturday: last show starts no later than 10:00 pm with the exception that two auditoriums may have a last showing starting no later than 10:30 pm.

• Hours of any alcohol sales: alcohol sales will end 30 minutes after last show starts.
• Kitchen closing hours: kitchen will close 30 minutes after last show starts.
• No five performances will be allowed.

14. CUB/Liquor Licenses

• Both parties agree there shall be no more than eight (8) CUBS allowed within the Project which may include no more than two (2) off-site licenses and no more than six (6) on-site licenses. The off-site licenses shall be limited to one market and one specialty store. The on-site licenses will not include standalone bars; and the sale of alcoholic beverages shall be made only in in establishments that also sell food.
• All proper and appropriate City procedures will be followed with respect to approvals to sell alcohol at the Project.

15. Street Closures

Swarthmore Avenue shall be allowed to be closed to vehicular traffic up to six (6) days per year in addition to the weekly Sunday Farmers’ Market, with advance notification of street closure applications given to neighbors living within 500 feet.

16. Neighborhood Traffic Improvement Fund

In exchange for POV not raising objection to the conversion of Swarthmore Avenue to a one-way street, CA will fund a bond or other instrument to be set aside for traffic or roadway improvements in the immediate vicinity of the Project site. CA will continue to meet with residents to identify the specific improvements to be funded with the bond or other instrument.

Once again, we appreciate the time and effort that POV has devoted to finding common ground and reaching an agreement on these matters. If this letter accurately reflects the agreements reached between CA and POV regarding the Project, kindly countersign this letter in the space provided below and return a copy to me.

We look forward to continuing to work with you to make the Pacific Palisades Village Project a reality that the whole community can enjoy.

Sincerely,

Caruso Affiliated / Palisades Village Co., LLC

By:

Name: Rick J. Caruso

Title: President and CEO