The West Hollywood Planning Commission is set to review a proposal tonight regarding a development agreement that would extend the timeline for the construction of a significant commercial development at 8920 Sunset Boulevard.
This nine-story, 116,801-square-foot project, originally approved in 2018, is designed to house a private membership club, creative office space, retail stores, and restaurants with outdoor dining. The project also includes a rooftop deck and a subterranean garage with 279 parking spaces. The request for a new development agreement seeks to provide an additional seven years to complete the project, which has faced delays due to the pandemic and subsequent economic challenges.
The development is poised to bring a modern and energy-efficient building to the Sunset Strip, replacing a smaller, lower-scale commercial structure. The approved design incorporates artistic elements and public spaces, such as pedestrian-friendly cafes, retail shops, and an art gallery at street level. It also aims to enhance the overall character of the area while providing substantial public benefits to the community.
The extension, which the Planning Commission will review, does not alter the project’s design or scope. The proposed development agreement includes provisions that would incentivize timely construction, as well as penalties if certain milestones are not met, to ensure that the project moves forward without unnecessary delays.
The project was first approved by the City Council on August 20, 2018, when entitlements were granted for the construction of the nine-story, 141-foot-tall multi-use commercial building. The development was planned to host the first U.S. location of The Arts Club, which would occupy the upper five floors of the building.
The club’s amenities were set to include a restaurant, lounge, supper club, ten guestrooms, and a rooftop pool. The lower floors of the building were designated for creative office spaces, retail shops, and a restaurant with outdoor dining. At the time, the building was also designed to include 351 underground parking spaces in an automated garage system.
Along with the project’s approval, the City Council certified an Environmental Impact Report, issued a Statement of Overriding Considerations, and adopted a Mitigation Monitoring and Reporting Program. Additionally, the Council approved changes to the Sunset Specific Plan, Zoning Map, and General Plan Land Use Map to accommodate the increased height and density of the development.
In recognition of the increased density and height, a public benefits package with an estimated value of $12.1 million was also approved in 2018. The package included several key contributions to the city, such as the creation of a public art gallery and performance space that would be open to local artists and performance groups free of charge for 25 years.
The gallery, covering 2,100 square feet on the building’s ground floor, was designed as a centerpiece of the development’s commitment to supporting the arts in West Hollywood. Additional public benefits included an annual $50,000 contribution to the city’s Arts Division to assist artists and performers with securing grants and other forms of support, as well as a $1 million cash benefit to the city. Of that amount, at least 25% was earmarked for the Sunset Boulevard Beautification Fund, while another 25% was allocated to the Affordable Housing Trust Fund. The public benefits package also required an annual contribution of $100,000 to support the arts over a ten-year period.
Delays in the project’s implementation, however, were caused by circumstances outside the control of the property owner, most notably the COVID-19 pandemic and subsequent economic disruptions. These delays have prompted the request for a new development agreement that would grant additional time to complete the project.
The agreement contains provisions that would allow seven more years for the project’s completion, with specific penalties imposed if construction pauses for an extended period. The agreement specifies that if construction has not commenced by certain deadlines, the property owner would be required to pay up to $5 million to the city in phases over the course of the extension.
The payment schedule begins five days after the approval of the agreement and continues at intervals of 18 months, 30 months, 42 months, and annually up to seven years. If construction begins but is suspended for more than six months, the owner would be subject to a penalty payment of $500,000 for every six-month period that work is halted, up to a maximum of $4 million, unless the delay is deemed an “Enforced Delay” due to unforeseen circumstances.
The agreement also includes a requirement for the installation of an art mural on the existing building before construction begins. This mural, to be approved by the city in accordance with West Hollywood’s Mural Program, is intended to improve the aesthetic of the property and create an active visual presence on Sunset Boulevard during the interim period before construction is completed.
The project has undergone several amendments since its initial approval. In February 2021, the Planning and Development Services Director approved a minor amendment to the project that adjusted the parking configuration.
The automated parking system originally approved was replaced with a valet system using mechanical lifts, which allowed for a reduction from six subterranean levels to four. Other changes included the correction of a typographical error in the project’s original resolution that capped the private club’s membership at 6,745 members and a revision to the city’s Green Points System requirements, reducing the number of points required for LEED Gold certification from 75 to 72.
In April 2022, the Planning Commission approved a major amendment to the project that further reduced the number of underground parking spaces to 279 and replaced the ten guest rooms for club members with additional office space. Other refinements included adjustments to outdoor terrace configurations and the elimination of the rooftop pool. The private club’s membership cap was also lowered from 6,745 to 5,500 to help balance parking demand.
In response to delays, the Planning Commission previously granted a one-year extension to the project’s timeline in April 2022, extending the permit expiration date to April 1, 2023. In February 2024, the Planning Commission approved a second and final extension, with a recommendation to the City Council to authorize additional time for entitlements under the new development agreement.
Tonight’s review by the Planning Commission will determine whether to recommend approval of the proposed development agreement, which seeks to provide a framework for moving the project forward while safeguarding the public’s interest through both incentives for timely completion and penalties for delays. The commission’s decision will be based on whether the agreement is in the interest of the city, consistent with the General Plan and other applicable ordinances, and compliant with state and local regulations governing development agreements.
If the commission approves the proposal, the project at 8920 Sunset Boulevard could finally move closer to breaking ground after years of planning, setbacks, and amendments.
