Maguire/Thomas Partners Fifth & Grand, Ltd., Maguire/Thomas Partners Grand Place Tower, Ltd., Tax Matters Partner - Page 7

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          Id.2  The transfer of building density typically was accomplished           
          by the first landowner’s recording a covenant running with the              
          land against the first landowner’s property in favor of the                 
          second landowner’s property.3  Neither the City nor CRA                     
          transferred FAR to MTP in connection with Phases I, II, and III             
          of the Ownership Participation Agreement (OPA)4 between CRA and             
          MTP under section 418 of the CBD Plan.                                      
               2.   Buildable Area Limits Imposed by the Los Angeles City             
                    Charter                                                           
               In addition to the maximum FAR imposed by the CBD and BH               
          Plans, the Los Angeles City Charter (City Charter) restricted               
          development to 13 times the buildable area of the building site.            
          CRA could grant a landowner a variation to exceed the maximum FAR           
          limits of the CBD and BH Plans; however, CRA could not permit by            
          variation construction of a building in excess of the City                  
          Charter’s 13-to-1 limitation.                                               
               3.   Treatment of the Library Square Tract as One Building             
                    Site                                                              
               Under the City Charter, the Library Tower and Grand Place              
          Tower parcels were separate building sites.  If the Library Tower           
          and Grand Place Tower parcels were treated as separate building             


               2See Mitsui Fudosan (U.S.A.), Inc. v. County of Los Angeles,           
          268 Cal. Rptr. 356, 357-359 (Ct. App. 1990).                                
               3 See id. at 358.                                                      
               4 See discussion at par. D of the Findings of Fact below pp.           
          9-11.                                                                       




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