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Sunday, February 05 2012 @ 02:52 AM PST
   

City Seeks to Expand Controversial Park Funds Program

Motion to Extend Quimby Fees Occurs as Program Is Being Audited

by Anna Scott (Downtownnews.com)

City officials are looking at expanding a controversial program that charges developers for park improvements. The move comes despite the fact that the city Department of Recreation and Parks, which manages the effort, has acknowledged that it has had trouble running the program, and that it still has $77 million in unspent money.

On Wednesday, Dec. 5, the City Council's Arts, Parks, Health and Aging Committee considered a motion to expand the assessments known as Quimby fees to all new market rate apartment projects and condominium conversions in the city. The fees, which cost developers approximately $3,000 to $9,000 per new residential unit, must be spent on park projects within two miles of where they are collected.

"With thousands of new units of market rate rental housing being constructed each year, the city is missing out on a major opportunity to dramatically increase park space for renters and others," wrote 15th District Councilwoman Janice Hahn, who authored the motion.

Currently, only apartment projects that require a zone change - such as shifting a building's designation from commercial to residential, which happened in many Downtown projects - are charged the park fees. New condominium projects are also charged, while condo conversions typically are not.

Many Downtown Los Angeles stakeholders, while in favor of more green space, question the expansion of Quimby fees.

"The Department of Recreation and Parks has failed to formulate a plan to spend these millions, and we have yet to see even one new park in Downtown resulting from Quimby fees," said Veronica Perez-Becker, vice president of legislative affairs for the Central City Association. "With no plan on how these fees would be collected or spent, we are opposed to this motion in its current form."

Calling for a Closer Look

Since 2002, the city has amassed more than $120 million in Quimby funds. In the Ninth District, which includes much of Downtown, Recreation and Parks has collected approximately $16 million over the past five years. About $3 million remains unallocated.

Recreation and Parks has been widely criticized in recent months for its management of Quimby funds. As City Council members joined in the outcry, Recreation and Parks officials revealed that a dramatic increase in collections in recent years has left the department without an effective system for managing or allocating the money.

The situation prompted City Controller Laura Chick to launch an audit of the Quimby program in Downtown. It is expected to be finished early next year.
Rec and Parks General Manager Jon Kirk Mukri has said the department is building a computerized database to better track Quimby dollars, and is conducting a citywide study to assess park needs.

At Wednesday's meeting, Mike Shull, Recreation and Parks' superintendent of planning and development, said Hahn's proposal could "benefit the city across the board." But many in the development community called for further study.

"It seems a little bit premature," said Yuval Bar-Zemer of Linear City, developer of the Toy Factory and Biscuit Company lofts.

Others questioned the effects of the proposal on the city's housing stock, especially affordable housing.

Tara Bannister, executive director of the Los Angeles branch of the California Apartment Association, which represents housing owners and managers, suggested examining whether the proposal would raise rents. "There might be another way to finance it," she said.

Shiraz Tangri, co-chair of the Downtown Los Angeles Neighborhood Council's Planning Committee and a land use lawyer who has worked on several Downtown projects, urged Recreation and Parks to clarify what projects are already subject to Quimby fees.

"There's been some significant ambiguities in how they've been applied by the department," he said, specifically with regard to affordable housing units.

Ninth District Councilwoman Jan Perry, a member of the committee, was absent Wednesday, but said in an interview that she is wary of approving anything before Recreation and Parks provides more information on its Quimby program. Perry has requested that Recreation and Parks report to the council on how it approaches land acquisitions.

"We're still waiting for that, and I wouldn't want to be supportive of anything that would endanger that process in any way," said Perry.

Hahn defended Recreation and Parks' track record, and said her proposal could help balance inequities created by the two-mile limit on Quimby funds, which favors areas with a concentration of development.

"Renters of apartments use parks, or should have parks nearby," said Hahn. "It doesn't seem right we're not charging them the same kind of fees we're charging developers of other kinds of projects."

According to Recreation and Parks data, at least 1,101 residential developments citywide have been assessed Quimby fees since 2003. That includes at least 45 in the Ninth District.

Recreation and Parks and zoning officials say they have no information on how that compares to the total number of new residential developments citywide, or how many more projects might be affected if Hahn's proposal takes effect.

Ultimately, the committee postponed the motion for 60 days.

Additionally, zoning officials agreed to draft an ordinance increasing Quimby credits for developers who volunteer to include green space in their projects.

"I think the last time the Quimby ordinance was looked at was 1971," said Chief Zoning Administrator Michael LoGrande, "so it's definitely due time to take a constructive look at that and see how we can improve it."