City Council Agenda Report
October 21, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Interim Director of Community Development SUBJECT: RESOLUTION NO. 25-50 – APPROVING AN AMENDED AND RESTATED
PARKING AGREEMENT
Background:
The County of Los Angeles (“County”) and City are parties to a Ground Lease Agreement dated March 30, 1995 (the “Parking Ground Lease”), pursuant to which the County leases to certain real property in the City, in turn the County leased the Parking Structure Parcel to City in order to facilitate the development and operation of the Parking Structure for use by the City and the County. On April 1, 1995, a Site Sublease entered by the City, as sublessor, and Norwalk Community Facilities Financing Authority (“NCFFA”), as sublessee. The NCFFA developed the Parking Structure Parcel with a multi-level parking structure (the “Parking Structure”) containing approximately 1,010 vehicle parking spaces, and a pedestrian bridge (the “Pedestrian Bridge”).
A Lease Agreement dated April 1, 1995 (the “City Leaseback Agreement”), entered by and between NCFFA, as lessor, and City, as lessee, NCFFA leased the Parking Structure and Pedestrian Bridge back to the City and the City continues to operate the Parking Structure.
The City, NCFFA, Theater Developer, and AMC are parties to a Parking Agreement dated May 15, 1995, a copy of which was recorded on June 14, 1995 as Instrument No. 95-948752 (the “1995 Agreement”) in the Official Records, as amended by that certain Amendment to Parking Agreement dated May 15, 1995, a copy of which was recorded on June 14, 1995 as Instrument No. 95-948753 in the Official Records (the “First Amendment”). A Second Amendment to Parking Agreement dated June 12, 1997, a copy of which was recorded on June 19, 1997 as Instrument No. 97-917901 in the Official Records (the “Second Amendment”) and together with the 1995 Agreement and the First Amendment, the (“Original Parking Agreement”), regarding the Parking Structure.
In the Original Parking Agreement, the City granted to the Theater Developer and AMC, and upon any termination of the Theater Ground Lease and/or Theater Lease, to the operator of the
City Council October 21, 2025
Resolution No. 25-50 – Approving an Amended and
Restated Parking Agreement
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Theater Complex covering the Theater Parcel (a “Theater Operator”) and together with Theater Developer and AMC certain non-exclusive rights to utilize vehicle parking spaces in the Parking Structure and in the City Hall surface parking area (“Surface Parking Area”). The Ground Lease dated December 19, 2022, as amended by that certain First Amendment to Ground Lease dated March 31, 2025 (as amended, the “Project Ground Lease”), entered into by and between City and Primestor; City leased a portion of City Property, including but not limited to the Surface Parking Area to Primestor for the development and construction of a mixed use development (the “Mixed-Use Project”) consisting of (i) approximately three hundred seventy-four (374) residential units; (ii) approximately 94,398 square feet of commercial uses, which may include, but not be limited to, food and beverage establishments, retail, health and wellness facilities, and grocery or supermarket uses; and (iii) approximately 119,643 square feet of ground-floor open space/plaza area that is publicly accessible but privately maintained and operated.
The City, NCFFA, Theater Developer, and AMC desire to amend and restate the Original Parking Agreement, in its entirety, in order to permit patrons, customers, and employees (herein collectively called “Permittees”) of each of Theater Parties, Primestor Parties, and each party or parties in possession, which shall include tenants, subtenants, concessionaires and licensees, from time to time, of the Theater Complex and the Mixed-Use Project.
Analysis:
These amendments will clarify the operational characteristics of the Civic Center garage for all parties. With the completion of the Walk project and ongoing successful operations of the AMC theater, along with the County and State operations, it’s anticipated there will be a change in the manner in which parking in the garage is used. Briefly, the Amended and Restated Parking Agreement does the following:
a. Primestor’s Rights to Take Over Operation and Maintenance of Parking Structure (Section
4.2(b)) – Primestor will have the right to take over parking structure operations and maintenance (“O&M”). Costs of O&M currently are borne by the City. If Primestor elects to take over O&M, the costs would be determined under a management agreement between City and Primestor to be negotiated and entered into later. The City would continue to receive parking revenue.
b. Theater Parking Study and Potential for Exclusive Theater Parking (Section 4.3(a)) – The City and Primestor agreed that language authorizing the movie theater up to 500 exclusive parking spaces needed to remain. Therefore, the parking agreement was revised as follows:
i. Allows a maximum of 500 exclusive theater parking spaces during hours of operation. ii. The number of exclusive theater parking spaces would be limited to the number of parking spaces justified in the parking study but not exceed 500 parking spaces. It is important to note that while 500 spaces are dedicated for the AMC theater, previous parking studies have shown that even during peak demand periods that number is never close to being exceeded. In the event, that during future operation of the garage it appears that number is close to being approached, AMC would have to justify the City Council October 21, 2025
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Restated Parking Agreement
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need for the full 500 spaces with a parking study subject to review and consideration by all parties to the agreement.
iii. Exclusive theater parking spaces would be “paused” if the theater complex ceases operation for 90 day consecutive days and resume once operations restart. iv. If exclusive theater parking is triggered, the City is to be allocated 250 non-exclusive parking spaces between the hours of 6:30 a.m. and 6:30 p.m. on Mondays, Tuesdays, Wednesdays, and Thursdays, and between the hours of 6:30 a.m. and 5:00 p.m. on Fridays under the parking plan. This addresses the City’s concern that adequate parking remain in the garage for City Hall patrons, City staff, fleet vehicles, and Public Safety.
Environmental Review:
The City Council hereby finds that the Amended and Restated Parking Agreement is categorically exempt pursuant to the California Environmental Quality Act (“CEQA”) as this activity will not have a significant effect on the environment per Section 15301 Class 1 (Existing Facilities) of the CEQA Guidelines and CEQA Guidelines Section 15061(b)(3) – Common Sense Exemption in that it can be seen with certainty that there is no possibility that the Amended and Restated Parking Agreement may have a significant effect on the environment. None of the exceptions under CEQA Guidelines Section 15300.2 apply.
Fiscal Impact:
N/A
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 3: Build Great Public Destinations and would contribute implementation of the Specific Plan.
Recommended Action:
Staff recommends City Council:
a. find that the Amended and Restated Parking Agreement is categorically exempt pursuant to the California Environmental Quality Act (“CEQA”) as this activity will not have a significant effect on the environment per Section 15301 Class 1 (Existing Facilities) of the CEQA Guidelines and CEQA Guidelines Section 15061(b)(3) – Common Sense Exemption in that it can be seen with certainty that there is no possibility that the Amended and Restated Parking Agreement may have a significant effect on the environment. None of the exceptions under CEQA Guidelines Section 15300.2 apply; City Council October 21, 2025
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Restated Parking Agreement
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b. adopt Resolution No. 25-50, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK APPROVING AN AMENDED AND RESTATED PARKING AGREEMENT; and c. authorize the City Manager to execute the Amended and Restated Parking Agreement and any documents under the terms of the Agreement and such other ancillary documents, and any additional amendments provided there is funding in the budget, in a form approved by the City Attorney.
Attachments:
Resolution No. 25-50