THE SANTA MONICA CIVIC AUDITORIUM JUNE, 2013

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1 THE SANTA MONICA CIVIC AUDITORIUM JUNE, 2013

2 CURRENT SITUATION August 14, Suspension of the $51.9 million renovation due to the uncertainty of redevelopment funds Fall 2012 Discussion of options for the future June 30, 2013 Facility scheduled to close

3 RECENT PLANNING MILESTONES 2001 Santa Monica Civic Auditorium designated a local landmark 2005 Civic Center Specific Plan update 2007 Adoption of Creative Capital cultural plan 2008 Exploration of shared use opportunities between Samohi and the Civic 2009 Discussions with Eli Broad regarding a museum at the site Nederlander Organization selected to book shows at the Civic Adopted RDA Five-Year Implementation Plan, FY through FY Exploration of museum development adjacent to Civic 2011 Council approves business terms with the Nederlander Organization 2012 Suspended renovation as a part of a contingency plan to mitigate risk associated with the uncertainty of redevelopment funds Council directed additional research on operating and funding options

4 City Council direction from the study session: KEY QUESTIONS FOR THE FUTURE OF THE CIVIC Research potential sources of financing for the renovation Explore operating models that allow the Civic to function as a cultural resource Develop an interim use

5 INTERIM USE Civic may be closed for 5 years or more Facility needs to be monitored and maintained Utilize the East Wing for City and public events Market Main Hall as a venue for filming Use parking lot for limited number of events

6 FINANCIAL SOURCES City has two primary options that may be used alone or in combination: Seek voter-approved funding Leverage private resources Voter-Approved Funding General obligation bond is the most likely option Private Resources Sources, likely combined, could include: long-term lease private investment/development of adjacent parking lot naming rights and sponsorships foreign investment historic tax credits fundraising capital campaign

7 OPERATING MODELS To operate the Civic as a mixed-use cultural facility, the City could: seek to lease the facility, either to a for-profit or non-profit entity enter into an operating agreement with a entertainment company enter into a booking agreement

8 OPERATING MODELS Most options require full renovation, at a cost of at least $50 million Civic could be managed more cost effectively by the private sector All cultural facilities require some level of subsidy Cultural facilities have the potential to generate a great deal of ancillary economic activity There exists market demand for the facility A continuum: greater control over community use and content = greater investment on the part of the City diminished control over the facility and programming = greater third-party investment.

9 ULI REPORT ULI is a 501(c) 3 non-profit research and education organization ULI advisory services panels provide strategic advice to sponsors on complex land use and real estate development issues Panel members are volunteers The Santa Monica Civic Auditorium panel: John H. Alschuler, Chairman of HR&A Advisors, Chair John S. Fisher, AIA, John Sergio Fisher & Associates (theater designer) Dan Massiello, Senior Vice President, Public Finance, Kosmont Companies (public finance expert) Mike Ross, Chief Executive Officer, Pasadena Center (convention and civic auditorium operator) Melani Smith, AICP, Principal, Melendrez (urban designer) Thomas W. Wulf, Senior Vice President, Lowe Enterprises (real estate developer)

10 ULI REPORT Statement the City should save the Civic due to its cultural history, landmark status and the unusually high level of civic pride associated with the structure, even though it is not cost-effective to restore the building No silver bullet, Santa Monica is fortunate to have options Confirmed operating and financing findings Time to update the Auditorium Special Use District within the CCSP $50M estimate for renovation low for a top performing flexible space Offered a clear vision for the creation of a new arts and cultural district, one that would encompass the entire 10 acre site Implementation requires sustained commitment and an imaginative, long-term and economically viable plan New district managed by a separate non-profit entity City needs to formulate a clear vision for the Civic Auditorium and the adjacent land prior to seeking partners or establishing such an entity

11 TODAY S MEETING Community feedback on findings Break-out groups Group reports Open forum

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