RSG served as the Chief Legislative Analyst’s (CLA) independent consultant on two site-specific subvention agreements: the $335 million Village at Westfield Topanga lifestyle center which opened in 2015, and the $950 million Frank Gehry/Grand Avenue Los Angeles project agreement negotiated with Related Companies. Both projects involved extensive analysis of the developer’s capital stack for the various uses (with Grand Avenue entailing a luxury hotel, inclusionary rental units, market rate rentals, parking, and retail/restaurant uses), evaluation of their pro forma, fiscal and economic impact analysis, and analysis of the gap in context of the City’s underwriting criteria. RSG was subsequently retained by the City and Westfield to perform a post-construction cost reconciliation for the Village project, which entailed review of the developer’s accounting records, contracts and retentions for purposes of making any adjustments to the final subvention terms. Both projects included a community benefits agreement in addition to the subvention agreement.
RSG also prepared a valuation of a subordinate note held by the former CRA/LA on the Grand Central Market mixed-use project that secured the affordability of inclusionary units. Finally, RSG is frequently retained to prepare feasibility studies as part of development applications with the City of Los Angeles Planning Department for third-party developers seeking feasibility studies for off-menu density bonus incentives.