SR-802-012
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II-C
MAR 2 9 1988
CjED:EDD:PC:JPM:CSR:
Council Meeting: March 29, 1988
Santa Mon"
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TO:
The Mayor and city Council
FROM:
City Staff
SUBJECT:
Recommendation to Authorize the cj
Negotiate and Execute an Exclusive Negot~_______
with Underwater World Com.pany and to Negotiate Necessary----
Agreements for the Development of the Santa Monica
Aquarium on a Parcel Adjacent to the Santa Monica Pier.
INTRODUCTION
This staff report recommends that the City Council: 1) authorize
the City Manager to negotiate and execute an Exclusive
Negotiating Agreement with Underwater World Company; 2)
authorize the city Manager to negotiate necessary agreements with
Underwater World Company for the development of the Santa Monica
Aquarium project on a parcel of land adjacent to the north side
of the Santa Monica Pier; 3) authorize City staff to conduct
pUblic workshops and hearings to solicit public, pier Restoration
corporation, and other City Board and Commission comments and
recommendations on the proposed development; 4) authorize staff
to prepare an Environmental Impact Report on the project; and 6)
direct staff to return to the city council in December 1988 with
the completed agreements and other documents for City Council
approval.
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\1~19
BACKGROOND
In september 1987, Underwater World Company met with city staff
to discuss the possibility of constructing an aquarium facility
on a parcel of land adj acent to the north side of the Santa
Monica Pier. The parcel totals approximately 48,600 square feet
(1.1 acre). A portion of the parcel is currently occupied by the
City's Beach Maintenance Facility (27, 600 square feet) and the
remaining portion of the parcel (approximately 24,000 square
feet) was formerly occupied by the Deauville Beach Club and is
currently vacant. (The remaining 50,000 square feet of Deauville
Club property not required for the aquarium building could be.
used for the aquarium entrance plaza and additional parking.)
The City has discussed the use of the vacant Deauville Beach Club
parcel for years. Proposals have been made to construct a
skateboard park, a hotel, and the city has explored the
desirability and feasibility of constructing surface or
structured parking on the parcel to supplement existing parking
for beach and Santa Monica Pier users. The Underwater World
company proposal to construct an aquarium represents a unique
pier and beach compatible use for the property that was worthy of
further consideration.
Over the past several months, City staff has met with
representatives from Underwater World Company to discuss the
proposed Aquarium proj ect. Staff and Underwater World Company
representa ti ves have met with key City departments to eval ua te
the feasibility of constructing the facility and with the Pier
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Restoration Corporation (PRC) Development committee and PRC staff
to discuss the desirability and compatibility of the Aquarium
project with the pier Development Plan adopted by the city
Council in February 1988.
city staff has also met with Underwater World Company staff to
discuss an outl ine for a lease agreement between the City and
Underwater World.
DESCRIPTION OF PROPOSED AgUARIUM PROJECT
The proposed Santa Monica Aquarium is modeled after a facility
that is currently operating in Auckland, New Zealand, and a
facility that is proposed to be constructed at Pier 39 in San
Francisco. The Aquarium is proposed to be two stories in height
and contain about 60,000 square feet of floor area. About 34,600
square feet is devoted to aquarium tanks, service area, offices,
and lobby; 4,300 square feet to a possible dynamic motion
simulator theater i 12,600 square feet to retail; 4 t 600 square
feet to restaurant; and 3,900 square feet to education and
function rooms. (See Attachment A: Preliminary Aquarium Project
Floor Plans.)
The proposed Aquarium will allow the visitor to travel through
the display tanks in a tunnel capped by clear acrylic panels.
Pedestrian access to the facility is proposed from the 1550 beach
parking lot on the ground level and from a second level
pedestrian walk connected to the Pier Bridge.
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The proposed Dynamic Motion simulator theater discussed to
possibly be included in the project consists of seats mounted on
a hydraulically controlled floor that has synchronized motion
with a film projected in the front of the theater. The combined
effect is one of perceived movement that is greater than the
actual movement of the shifting seat platform. The retail shops
and restaurant/food service areas are intended to serve Aquarium
patrons.
AQUARIUM FEASIBILITY
The proposed Aquarium project will occupy the entire Beach
Maintenance Facility parcel and approximately 24/000 square feet
(32%) of the vacant Deauville Beach Club parcel. The project
will require the relocation of the Beach Maintenance Facility to
another location in the immediate area or elsewhere along the
beach. City staff is currently investigating alternative
locations for the facility. The potential impacts of alternative
locations for the facility will be analyzed in the Environmental
Impact Report (EIR) for the project.
COMPATIBILITY WITH PIER DEVELOPMENT PLAN
City staff and Underwater World Company representatives have met
with the PRC Development Committee and PRe staff to discuss the
proposed Aquarium project. Of major concern to the PRe is the
compatibility of the uses to be contained in the Aquarium project
with the uses contemplated in the pier Development Plan, the
availability of parking for both the Aquarium and the Pier, and
the design of the project. Underwater World Company staff
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understands the need to have the Aquarium project be compatible
with the Pier plans and agrees with the need to remain flexible
on the final scope of the Aquarium facility and its support Uses.
Of particular concern to PRC Development committee members was
the amount of retail space and the Dynamic Motion Simulator to be
contained in the proposed project. In response to these
concerns, Underwater World Company has agreed to reduce the scope
of the retail component to about 7,000 square feet ( a reduction
of 44%) and will not include the ride in the Aquarium project if
a simulator facility is located on the Pier.
However, to maintain flexibility on the ultimate size of the
Aquarium project, the EIR will analyze the potential
environmental impacts of the proj ect as originally proposed by
Underwater World Company. Once the PRC receives proposals
responding to its Request for Development Proposals for the Pier
leasehold spaces, city staff, PRe Board members and staff, and
Underwater World Company can work to adjust and refine the
development scheme for the Aquarium project to ensure its
co~patibility with the Pier.
OOTLINE OF LEASE TERMS
City staff is proposing to Underwater World Company a lease
agreement that will provide for a guaranteed base rent to the
City, city participation in the profits from Aquarium facility
revenue, and participation in any prof it from the sale of the
leasehold interest or refinancing of the proj ect. The lease
agreement will contain provisions requiring that the facility be
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operated to "world class" standards and that it maintain a
minimum level of visitor activity. City staff has discussed with
Underwater World COlllpany an outline of proposed provisions the
city desires to include in the lease agreement and other
development agreements. Underwater World Company understands and
preliminarily agrees with the outline of the proposed provisions.
EXCLUSIVE NEGOTIATING AGREEHENT
The Exclusive Negotiating Agreement between the city and
Underwater World Company will provide for a 9 month period in
which both parties will negotiate all necessary agreements and
will refine the Aquarium project design. The Exclusive
Negotiating Agreement will provide for the preparation of an EIR
for the project; outlines the parameters of the maximum project
scope; details the scope of negotiations on necessary agreements
and on the lease; and grants the developer the right to access
the property for performing soils tests, engineering studies,
surveys, and other similar purposes.
The term of the Agreement may be extended by mutual written
consent.
NEGOTIATION OF DEVELOPMENT AND OTHER AGREEMENTS AND REFINEMENT OF
AQUARIUM DESIGN AND SCOPE
During the 9 month period of the EXClusive Negotiating Agreement,
the City and Underwater World Company will negotiate land
disposition, development, lease, and other necessary agreements.
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Underwater World Company and the City will also proceed to refine
the Aquarium design and scope and to secure necessary permits
based on an environmental impact report, on public review and
comment, on PRe Board and staff comments and recommendations, and
on appropriate other City Board and commission review and
recommendations. The city will assist Underwater World Company
with
obtaining permits
including
any necessary
Planning
Commission and Architectural Review Board approval as well as any
permits needed from the California Coastal Commission and the
Water Quality Control District.
A key component of the development refinement process will be to
prepare an Environmental Impact Report on the project at the
developer's sole expense.
The EIR will identify potential
significant environmental impacts resulting from the project and
propose
measures
to
minimize
those
significant
adverse
environmental impacts.
FI~CAL/BUDGET IMPACTS
There are no direct fiscal/budget impacts resulting from the
actions recommended in this report.
RECOMMENDATION
City staff recommends that the city Council:
1)
Authorize
Exclusive
Company;
the City Manager ~o negotiate and execute an
Negotiating Agreement wi th Underwa ter World
2) Authorize the City Manager to negotiate with Underwater World
Com.pany the disposition, development, lease, and any other
necessary agreements for development of the Aquarium project:
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3) Authorize City staff to prepare an Environmental Impact
Report on the proposed development project and conduct public
workshops and hearings to solicit public, PRC, Board, and
commission recommendations on the development scheme; and
4) Direct city staff to return to the city Council in December
1988 to present the agreement documents and development
project for final city council approval.
Prepared by: John Jalili, City Manager
Peggy Curran, Director
community and Economic Development Department
Jeffrey Mathieu, Division Manager
Christopher Rudd, project Manager
Economic Development Oivision
Community and Economic Development Department
agua2cc
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