That the Council, subject to the concurrence of the Mayor:
1. Instruct the City Administrative Officer (CAO) and the Chief Legislative Analyst (CLA) to report with a proposal to create the Los Angeles Municipal Development Corporation (LAMDC) to manage the City’s real estate portfolio and leverage certain economic development financing tools, incorporating the following details:
a. Prepare and issue a request for proposals (RFP) for the proposed creation of and contract with LAMDC;
b. Options for the CAO to both oversee and administer the contract with LAMDC;
c. A proposed budget (seed funding) for LAMDC based in part on the January 2013 budget estimate of $5 million, adjusting for time elapsed since initial estimate and differences between 2013 and present recommendations; and
d. Options for performance metrics for LAMDC to be included in the RFP and subsequent contract.
2. Request the City Attorney, with the assistance of the CAO and CLA, to report with options to establish the governing board for LAMDC, including:
a. A board structure for LAMDC consisting of approximately half City staff and half representatives with prescribed experience and expertise (as detailed in Recommendation 2b) with one additional member from the latter;
i. City representatives on the board of LAMDC, comprised of 1 member at the General Manager or Assistant General Manager level from each of the following offices/departments, for a total of 8 City members:
1. The Mayor’s Office, City Attorney, CAO, CLA, General Services Department (GSD), Economic and Workforce Development Department (EWDD), the Los Angeles Housing and Community Investment Department (HCIDLA), and the Department of City Planning;
ii. Non-City representatives – Appointed representatives on the board of LAMDC via the following board appointment structure, for a total of 9 appointed members:
1. 5 members are appointed by the Mayor; 1 member to be appointed by the President of the City Council; 1 member to be appointed by the Chair of the Information, Technology, and General Services Committee; 1 member to be appointed by the Chair of the Budget and Finance Committee; 1 member to be appointed by the Chair of the Economic Development Committee;
b. A list of prescribed experience, expertise, and qualifications for non-City staff board appointments in areas such as real estate development, finance, business administration, law, portfolio management, and/or architecture; and
c. Options to mitigate potential risks of conflicts of interest involving non-City board members.
3. Instruct the CAO and CLA to report back with an analysis of allowing LAMDC to leverage certain economic development financing tools. These financing tools should relate to LAMDC’s operations in real estate development.
4. Instruct the CAO and CLA to report on an appropriate time frame for City reimbursement of seed funding and on methods utilized by cities such as New York and Philadelphia for revenue sharing between the City and LAMDC for management of the City’s real estate assets and financing tools.
5. Request the City Attorney, with the assistance of the CLA and CAO, to report on options to include specific provisions in the contract with LAMDC, including:
a. A provision requiring that LAMDC provide an annual comprehensive report, which would include details of all projects from the previous Fiscal Year and projects slated for the upcoming Fiscal Year with detailed performance metrics for the economic and community impacts of each project and the relevant Council policy goals supported by said projects;
b. A provision for Council to retain the ability to assert jurisdiction over LAMDC’s real estate asset management related decisions pursuant to Charter Section 245;
c. A provision to ensure that the board of LAMDC and all public meetings are subject to all Brown Act provisions and that formal documents be subject to California Public Records Act requirements; and
d. A provision requiring that financial information of LAMDC and all relevant documentation including annual comprehensive reports be posted transparently on LAMDC’s website for public access.