The City of West Hollywood enacted a “Public Benefits Policy” that applies to development projects for which modifications to the City’s Zoning Code and/or General Plan are being requested. It is a fundamental premise that modifications to development standards will not be requested unless they will enhance the economic value of a project. The Public Benefits Policy requires the dollar amount of the value enhancement to be estimated using the “Economic Valuation Tool” that was created when the Public Benefits Policy was adopted.
KMA was a member of the consultant team that assisted the City in creating the Economic Valuation Tool. The Economic Valuation Tool’s value enhancement analysis is based on an approach that compares the residual land value supported by a project developed in accordance with a property’s existing Zoning Code and General Plan standards to the residual land value supported by a proposed project. The estimated dollar amount of value enhancement is used as one metric by which the City identifies the public benefits requirements that will be imposed on a proposed project. Priorities for these public benefits have been adopted by the City and are considered in the conjunction with input received at a community meeting that is held to obtain feedback related to neighborhood priorities. The resulting proposed public benefits package is then presented and reviewed at public hearings with the Planning Commission and City Council.
In addition to the City of West Hollywood, KMA has also assisted clients creating public benefits programs in these cities: Santa Monica, Culver City, Glendale, and Beverly Hills.