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Sunday, February 05 2012 @ 03:08 AM PST
   

A Push for Green Growth

Proposed Ordinance Would Set Environmental Standards, Sparks Housing Debate Downtown L.A.
by Anna Scott

Jordan Katnik, who lives a few blocks from Staples Center and the rising hulk of L.A. Live, has a surprising outlook on the nearby neon lights.

"During the night, Downtown lights up our unit - it's beautiful," he said. "That's part of the reason we don't have blinds."

For Katnik and his partner, Bryan Raber, both 27, the bright streetscape outside their 1,600-square-foot loft at South Park's Elleven high-rise is just another reason to leave their own lights off.

The couple estimates that they have cut their utility bills by 80% since moving into the $700,000 condominium from Hollywood a year and a half ago, thanks largely to their floor-to-ceiling windows. Elleven happens to be the first certified "green" residential building in L.A.

Katnik and Raber belong to an expanding breed of homebuyer that considers carbon neutrality a selling point. That sector of the market may soon have more options to choose from.

This month, the Los Angeles Planning Commission approved an ordinance requiring developers of large projects to meet sustainability standards estimated to cut energy usage by 15%. If the measure is ultimately passed by the City Council, it could have particular impact in Downtown, a hub for large residential projects.

While almost everyone supports the concept of going green, it's not quite a slam dunk. Some developers and business officials say the proposal needs more work. They note that meeting strict environmental standards raises construction prices, and while those can be passed on to market-rate buyers, they say the equation become trickier with affordable housing.


Stepping Up Efforts

Elleven, which opened in 2006, recently received a high "green" designation from the nonprofit U.S. Green Building Council. The USGBC rates structures based on its 69-point LEED (Leadership in Energy and Environmental Design) system, which evaluates criteria such as how much construction material is recycled, the building's energy and water consumption, and the air quality inside an edifice. That translates into one of four LEED levels: Certified, Silver, Gold or Platinum.

LEED is the most universally recognized and scientifically sound green rating system for buildings, experts say.
Elleven, developed by South Group, is certified LEED Gold, thanks to its recycled-content building materials, low-emitting paints and finishes, treated glass windows to save on cooling energy, dual-flush toilets that conserve water and other eco-friendly features.

According to legislation in place since 2002, all new structures built by the city that are 7,500 square feet or larger must meet LEED Certified standards, though they are not required to obtain formal certification.

The ordinance approved by the Planning Commission would extend that requirement to privately developed buildings larger than 50,000 square feet or containing more than 50 units. The requirements would also apply to existing buildings being renovated at a cost that exceeds 50% of their value.

Projects that aim to meet a higher level of LEED standards would be rewarded with expedited permit applications, which could take months off the entitlement process.

"As a city, in order to accommodate our growth over the ensuing years and retain a livable community, we need to start thinking about how our buildings can have less of an impact on the environment," said project manager Claire Bowin of the city Planning Department. "It is absolutely urgent."

The proposed law also calls for a Green Building Team, comprised of staff from the mayor's office and various city departments, plus representatives from agencies including the LAUSD and the Southern California Gas Company, to oversee the initiative.

If approved by the City Council early next year as expected, the rules would apply to projects initiated after July 1, 2008.


The Debate

Upcoming Downtown residential projects expected to meet LEED standards include Linear City's 16-story Mill Street Lofts in the Arts District, slated to open in 2009; the 35-floor condo tower 717 Ninth from developer Meruelo Maddux Properties, also expected to open in 2009; a 750-unit mixed-use project at Second and Los Angeles streets from developer Related Cos.; and four other buildings from South Group.

According to local developers, LEED has in recent years become part of the industry lexicon.

"The minimum standards, I think, most developers now meet," regardless of whether it's required, said developer Barry Shy, who is planning a 777-unit condominium project at 601 S. Main St. that would likely be affected by the new ordinance.

Some, however, say the measure could make it harder to develop affordable housing.

"The gap in making those projects is so fine, especially now," said Jonathan Lonner of Lee Homes, developer of the Market Lofts at Ninth and Flower streets and Sky, a mixed-use high-rise in South Park.

Business advocacy organization the Central City Association says the measure is premature.

"Rushing this through could leave us with an unworkable policy and exacerbate the affordable housing crisis," said CCA Vice President of Legislative Affairs Veronica Perez Becker.

The CCA and other organizations, including the Los Angeles Area Chamber of Commerce, have urged the Planning Commission to re-examine how the measure would impact business and development throughout the city.

Bowin says the ordinance is a work in progress. "We believe this ordinance provides a solid foundation to move forward from," she said. Its language, she added, is deliberately open-ended in order to facilitate future amendments.

Bowin disputes the notion that meeting LEED standards significantly raises construction costs.

"Being in California already creates an advantage for developers" seeking to comply with LEED, she said, because state building codes are laced with sustainability standards in areas such as energy efficiency and storm water treatment.

Many developers agree.

"We've done some analysis from a company-wide perspective, and we find that there's a 3% to 5% increase in cost in making a project LEED Certified," said Renata Simril, senior vice president of developer Forest City Residential West, whose Downtown projects include the Met Lofts in South Park. "But that can be reduced depending on where you start to talk about sustainability."

For instance, Simril said, choosing certain sites - such as those close to mass transit - gain a developer LEED points at no cost.

New Expectations

Even if adopting sustainability requirements citywide increases initial development costs, many say the long-term benefits are worth it.

"There's a perception in the industry - and to some degree a reality - that some of the things we do to make projects more sustainable cost more," said Daniel Gehman, a principal at Thomas Cox Architects, which has worked on several high-density projects Downtown including 1100 Wilshire and the Subway Terminal Building. "But that's in the short term."

Over time, Gehman said, as the demand for green housing projects increases, the materials to build them will become more available and the technology to sustain them more affordable.

Downtown Los Angeles, he added, with a concentration of new residential development and several planned transit projects, has the opportunity to be a regional leader in sustainable development.

Meanwhile, back at Elleven, Katnik and Raber say their building is rubbing off on them. "I think the green is growing on us," said Katnik. Since moving in, "We switched over to cleaning products that are more eco-friendly, and we've learned so much in the process.

"I don't see why we shouldn't learn to live better with the environment," he added. "There's no reason not to."