Santa Monica Civic Auditorium Community Meeting June 4, 2013 Virginia Park Jessica Cusick, Cultural Affairs Manager, gave a report with the help of a slide show presentation. There were 115 people present. The team within the city includes members of Cultural Affairs, Housing and Economic Development, Public Works, Planning and Finance. The structure is not seismically sound and is not considered safe for public assembly currently. The operations as they have been are too expensive too subsidize with the current budget conditions. The city was poised to renovate, had plans underway that were moving through the process when they lost redevelopment funds. The team is to finding a solution to save the Civic since we lost the $54M in redevelopment funds. Timeline: 2002 Civic Auditorium becomes a designated landmark 2005 Civic Center Specific Plan is finalized 2007 Creative Capital, the city’s cultural plan, is adopted 2008 A joint use plan between the city and SMMUSD is adopted 2009 Nederlander deal comes on line 2009 Redevelopment funds are allocated to Civic 2010 Broad Museum is almost built adjacent to Civic Auditorium 2010 Nederlander deal is struck 2012 Loss of redevelopment funds, all plans put aside 2013 Civic Auditorium closed to the public Council meeting in October 2012 When the closing of the Civic was scheduled, staff was directed to: Research financing options There is no magic bullet. Options include a voter approved obligation bond, or private resources such as leasing, private investment in adjacent development, naming rights, foreign investment, historic tax credits, private fundraising. Final result will most likely be a combination of the above. Explore other operating models for cultural uses The civic could be leased to an outside entity. We could enter into an agreement with an operator. We could enter into a booking agreement. While most rehabilitation estimates are in the $50M range, some feel that if we invest the $23M to make it seismically safe and ADA accessible, that we can get it back on line and work on the other stuff over time. The venue could be managed more cost effectively privately than by the city. Will need to be subsidized somehow, all cultural venues need subsidy. Ancillary activities such as restaurants, parking et al, could provide this subsidy. There is definitely demand for the facility because of its amazing location and because of all the new amenities the city is investing in such as the esplanade, park and light rail, as well as the promenade, mall and Main Street adjacencies. Come up with an interim use so it won’t be completely dark during planning The process of turning the Civic around could take 5 years. During that time it is important to maintain systems. The best way to do that is to keep it active and serving the community in ways that are safe relative to the condition of the building. Perhaps one interim use could be renting the space to production companies for filming. It could be used as a sound stage and as a visually interesting location underneath where the pistons that move the floor are. Continuum: city control of venue city invested funds VS operator control of venue operator invested funds Urban Land Institute Report ULI is a non-profit that provides credentialed professionals who volunteer to serve on panels. They determined that the city should definitely save the Civic even though it is not the most economical path. The pride, history and architectural heritage of the venue are valuable and should be retained. But there will be no silver bullet solution. The panel recommended reviewing and perhaps revising the Civic Auditorium Special Use District within the Civic Center Specific Plan to ensure that it still reflects the needs and goals as they have evolved since it was written. The panel felt the $50M was a very low estimate of what it would take to make the venue competitive in today’s entertainment market. They offered a vision that included a list of ways that the 10-acre site could generate funds to support both the renovations and the operating subsidies. The vision described a mixed-use cultural campus that provided ancillary businesses that would both enhance the visitor experience and generate funding. The panel suggested that the city work on a clear plan and get a public advisory panel in place to manage to project and the operations. Questions This concluded Jessica’s report. Comments and questions from the community about the report included: 1. Voter approved bonds need a 2/3 vote at the polls for approval. Such a bond would increase people’s property taxes by approximately $12/$100,000 of property value. Landlords are permitted to share the cost with tenants so everyone contributes. 2. Would the $52M plan that was aborted have included the multiple types of uses that have typically taken place at the civic? Yes. 3. Why can’t we continue to have concerts in the auditorium in the meantime? Why is it okay for small groups but not large groups? The building is not considered earthquake safe for public assembly. Waivers can be given to individuals in small groups who wish to use the auditorium in its current condition. 4. Has Bruce Becket, son of the Civic Auditorium’s architect and architect in his own right, been consulted on plans? Yes. 5. Has there been a discussion about naming rights yet? No. It is recommended that that take place late in the process because as more of the plans are confirmed, the rights become more valuable. 6. Can we float a bond large enough to cover the whole project? Yes. 7. What have other cities done with their civic auditoriums that have run into similar problems? How are public/private partnerships working? This is still being researched; more information will be presented as we move forward. 8. When the zoning in the civic auditorium area is changed from open space to a development zone, will there be consequences? For example, will we have to purchase new open space elsewhere? This is something that will have to be researched down the road when plans are clearer and we know if such a revision will occur. Breakout Group Reports The attendees broke up into four special topic groups for more in depth discussion and reported back to the room. They were given the opportunity to create additional groups on other topics but did not choose to do so. What types of Cultural Activities would you like to see at the Civic? The civic should be our cultural center and incorporate the venues on the High School campus next door. It should be the arts center for the Westside. It would be great to include a museum, a waterfall or a fountain, an outdoor performance space. The site should be related to the beach, could have an outdoor café. The venue definitely needs better acoustics, new bathrooms. It should continue to be a multi-purpose space: concerts should continue, tradeshows should come back. The city should not manage it. There should be an appointed commission figure out how it will work. Funding A lease and parking revenue bond would not need to go to a vote because those revenue streams could back these. Don’t release naming rights until the end of the process because as operators are contracted and the final designs are public, the rights become more valuable. We will need both capital funding and cultural subsidy funding. SMMUSD and SMC could possibly share some of their bond funds in exchange for shared use. Is there community support for general obligation bonds? This and city bonds should be explored. No one wants 20-story towers. Bond repayment is shared by owners and renters alike, does not only fall to property owners. Local cultural institutions could hold fundraisers at regular intervals to assist in upkeep and subsidies. ULI Recommendations: Cultural Campus If the site included residential, it would be artist live/work. If the site included offices, they would be creative offices such as for production companies. The site should include a red carpet movie theater such as for AFM. Is there enough practice space there now? Will we need more? Add flexible performances spaces such as smaller black box venues for local theater groups. Restaurants on site would greatly enhance visitor experience. The key is synergistic uses. What is the civic missing if it were to become a cultural hub? A welcoming arrival, Upgrade to the interior to make it more attractive, Inviting open space outside, connections to neighborhood. To preserve open space, activity could be shifted to Main and Pico side. Important building views are from Fourth Street and from the Main Street approach and should be preserved. The Civic Auditorium should remain the focal point if development is added around it. Its style should lead. Even though there is a park nearby, there should be open space on the site. Don’t miss out on an opportunity to put parking or other features underground. Who should manage the Civic Auditorium? The whole thing begins with good management. A civil authority, A public authority, A Civic Advisory Panel. We need a group of experts, whatever we call it, who really know their business to begin the process of figuring out how to do this. We should not wait until we are in the operational phase. We need the experts to help us craft deals, determine funding, develop operational models and make development recommendations. The experts should all be professionals in the fields of expertise. It would work in a way similar to the pier restoration. Final Comments After the reports from the groups, attendees were given a chance to stand up, take the mike and make final remarks. 1. Fourth and Pico should remain open space for SMMUSD, doesn’t necessarily need to be soccer but should be open space. Our city has a deficit of dozens of acres of open space; we should not convert what we have at the civic without replacing it elsewhere by, for example, covering over the freeway to make parkland for the village across Main Street. The reason the height of the new parking structure at Olympic and Fourth was accepted was because of the open space it didn’t cover, we should not renege on that. 2. We need a storm drain retention basin. 3. The private sector manages venues more economically but we should not allow them to do it at the expense of workers wages. 4. Ask Michael Dell to give the Civic $1,000,000 every year. 5. All developers working in Santa Monica should pay a fee towards the Civic. 6. Do not close the Civic down on June 30. We need it in the meantime for all the uses we have been enjoying. 7. Make sure renters can participate in bond payment too. Considering adding the repayment fee to utility bills instead of property tax bills. 8. Establish that the Civic Auditorium and the cultural campus are a public entity. Ensure low cost community access so everyone can participate. 9. Make sure employment practices are just. 10. The Civic Auditorium is the true home of the SM Symphony. 11. The Civic Auditorium is the crown jewel of Santa Monica. -----------------------------------------Disclaimer: Please forgive omissions or incorrect interpretations of comments in these well-intentioned notes. Send corrections to savethecivic@gmail.com. Please attend the City Council Meeting on June 11, 2013!