West Hollywood Public Benefits Economic Evaluation Tool
City of West Hollywood
HR&A developed a data-driven evaluation tool for the City of West Hollywood that quantifies the economic value generated when developments exceed zoning limits, enabling more transparent negotiations and equitable public benefit captures. Approved by the City Council in 2018, the tool provides city staff with a standardized methodology to assess appropriate community benefit contributions from developers seeking zoning flexibility, ensuring the city maximizes public value from private development.
West Hollywood faced a common challenge among high-value real estate markets: determining fair community benefit contributions when allowing developers to exceed standard zoning parameters. Without a systematic approach to calculate the increased land value created through additional development rights, negotiations were inconsistent and potentially undervalued public benefits. HR&A addressed this need by creating a comprehensive Public Benefits Economic Evaluation Tool based on residual land value methodologies. Our approach incorporated detailed market research and financial modeling to accurately capture the economic increment generated by exceeding base zoning. The tool features multiple calculation modules tailored to different development scenarios, providing adaptability while maintaining methodological consistency.
The evaluation tool transformed West Hollywood’s approach to development negotiations by establishing a clear framework that benefits all stakeholders. For city staff, it streamlined the negotiation process, reduced uncertainty, and provided defensible valuations based on market realities rather than arbitrary standards. For developers, it created transparency about expected contributions and established predictable parameters for project planning. For community members, it ensured that appropriate public value is captured when development exceptions are granted. After Planning Commission review and City Council approval in January 2018, the tool has become an integral part of West Hollywood’s development process, helping the city secure meaningful public benefits while supporting continued investment and growth.
