SR-802-007 (4)
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Santa Monlca, Callfornla
APR 2 = i980
Aprll 14, 1980
TO:
Mayor and Clty Councll
FROM:
Clty Staff
SUBJECT: Country Market Booths for the Santa Monlca Pler
Introductlon
ThlS report concerns a proposal to open a country-
market style falr on the Santa Monlca Pler, dlscusses the proposal.
and requests
Clty Councll conceptual approval.
Back9.round
Mr. Colln Serlln and Mr. steven Kelth, dba Callfornla
Open Space Tradlng Company, a partnershlp, have proposed an open-
booth, country-market style falr be operated on the Santa Monlca
Pler one day a week. They plan to assume the entlre costs for
advertlslng WhlCh would draw a new cllentele to the Pler.
The Country market would be patterned after open alr markets
ln England WhlCh offer booths featuring colorful banners and
canvas tops to lndlvldual vendors. As ln other country-style
markets, varlety lS ava11ab1e to the publlC, wlth the booths
spaced throughout the Pler lnvltlng casual shopplng and dlscovery.
Booths would be along the boardwalk and along the roadway, set
at an angle to allow for ample Vlew and yet pleasant shopplng.
They propose to be open a mlnlmum of one day a week:
durlng the summer on a weekday, and on Sunday ln the wlnter
season.
(October 1st through May 31st.)
Inltlally, the operatlon
would be open three Sundays durlng the summer to lntroduce
open space tradlng to the Pler and then only one weekday each
week durlng the summer. Each day the booths would be dlsmantled
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APR 2 2 1Sao-
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and stored at a locat~on off the Pler untll the following week.
In order to augment eX1st~ng bus1nesses, and not to compete
for the present dollar volume, no dupl1catlon of eX1stlng serV1ces
on the P1er lS proposed.
Investment 1S est1mated at $ 50,000 for 1nltlal
advertlslng and $ 60,000 for 300 booths at $ 200. each. These
would be placed to attract pedestrlans along the boardwalk, and
along the north slde of the Pler allowlng for shopplng w1thout
h1nder1ng free recreatlonal use. Rental to the Clty at one-half
capac1ty (150 booths) would be $ 5,400 per month, based on
a 50-50 SpIlt of net revenue between the Clty and the managers,
est1mated at 30% of gross revenues.
Recommendatlon
Staff recommends the Clty Counc1l approve the Cal1fornla
Open Space Tradlng Company proposal In concept and dlrect
the Clty Manager to seek competltlve proposals and return to
Councll for lts approval of a f1nal lease as negotlated by Staff.
Exhlb1t "A" Callfornla Open Space Tradlng Company Proposal
IlB" Resume of Mr. Serlln and Mr. Kelth
Prepared by: Gary Ferguson
Peter Klpp
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~~\P\ OPEN
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SPACE
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TRADING Co
~PAlvy
SA1JTA MONICA PIER MARKEl'
PRELIMINARY HEADS OF AGREEMENT
TRADING OP~TI9N
Ve plan to operate the lfarket a m1nimum of one day per week
throughout the year. Iluring the Summer months, (July, August,
and part September), this would be a weekday. Out of season we
would expect to operate on Sundays, w1th a weekday as potent1al
second day.
Initially we would need to trade for at least several Sundays
in order to establish the ~arket.
stalls would be erected by 7 a.m. and dismantled by 7 p.m. on
the same day of operation. They would then be stored elsewhere.
USE:) AND EXCLUSIONS
The Market will be art orientated and the maJor1. ty of uses W1.11
reflect this. Below is a summary of the various uses which will
serve as a guide to the structure of the Market.
ART:
Paintings - water colors and oil. Photography.
Pottery. Scul ptuxe. Glassware and crafts.
Home produced Jewellery. Furniture. Metalwork.
CLOTHING :
Period clothes. Used clothing. Children and
babies wear. Shoes. Denim wear. Hats.
Lingerl.e. Designer's goods. Vanufacturer t s
seconds. Accessories. Sweat shirts. Sports wear.
LOSANGELES SUITE 301 1340 S BEVERLY GLEN BLVD LA CAL 90024 {213}858-8512
LONDON 59 CHEPSTOW ROAD PORTOBELLO MARKET W2
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~~\A. OPEN
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SPACE TRADING
COMPANy
DOMESTIC GOODS:
ElectricaL Tools. Cutlery. Crockery. Rugs.
Bedding. w.nens. Fabrics. Lighting. Kitchen
utensils. Bathroom accessories.
SPORTS & HOBBIES
& TOYS:
Children's games. Books. Nursery -toys. Soft
toys and dolls. Sports equipment. Adult games.
EXCLUSIONS
The exclusions will be based on the recommendations to be given
to US by the pier lessees. Basically we will not permit any
duplication of an existing trade or facility. Therefore, of course,
no food or drink for immed~ate consumption viII be permitted.
REVENUE TO THE CITY
There is potential space for 150-300 market stalls, sUbject to the
layout adopted. Rents will range from $25 per day for an off-pi teh
position out of season, to $50 per day during the busy seasons.
It 18 therefore difficul t to project income, although it can be
easily ascertained on the actual trading day.
We estimate that a:ppronm.ately 40ft, of the gross revenue can be
allocated to expenses (management, running costs, general promotion,
etc. ) We therefore propose a 3C% share of the gross revenue to the
Ci ty. This is effectively an equal partnership in the profi tabili ty
of the enterpr~se.
LOS ANGELES SUITE 301 1340 S BEVERLY GLEN BLVD LA CAL 90024 (213) 858-8512
LONDON 59 CHEPSTOW ROAD PORTO BELl.O MARKET W2
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~~\f\ OPEN
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SPACE TRADING c
01l1pAlvy
Each year the market will become more established and rents will
be increased by 25~30%. Therefore the City w~ll enjoy an
automatic annual increase in the revenue.
We proj)ose that the ENTIRE revenue from the first month's trading
be retained and used for advertising and promoting the Pier Market.
The TERM of the LEASE should be by negotiation. Ve suggest a
mimmum of ten years.
gEN~!\.L N-ATT~
other Locations: We are currently negotiating for two other sites;
one at Long Beach, close to the Queen YJary, and the other in
Laguna Beach. Neither location will have any adverse effect on
the Pier Market although there could well be a posi ti ve benefit
from the additional promotion that we would then by carrying out.
Advertising and promotion: We would expect to create a noticeable
ini tial impact both with the general public as well as potential
traders. We plan newspaper advertising as well as ed~torial
coverage. Radio advertis~ng and public relations. General ma1ling
shots. Specific advertising in local papers, trade journals and
magazines. We would hope to get some T.V. coverage, both as a
news i tam as well as advertising. We would expect to use our
capital initially for these promot1ons which will be partially
re-imbursed by the first month's revenue as mentioned above.
LOS ANGELES SUITE 301 1340 S BEVERLY GLEN BLVD LA CAL 90024 (213) 858-8512
LONDON 59 CHEPSTOW ROAD PORTOBELlO MARKET W2
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~"N\1\ OPEN
Cf\\.SfO
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SPACE TRADING
COMPAl\Ty
Market stalls: At present we are having various designs prepared
and costed. We are aware of the special wind problems that eX1.st
on the pier and the final designs will adequately cope wi th th~s
problem. Obviously we are unable to commence manufacturing until
we have reached agreement 'W~ th the Ci ty .
LOS ANGELES SUITE 301 1340 S BEVERLY GLEN BLVD L A GAL 90024 (213) 858-8512
LONDON 59 CHEPSTOW ROAD PORTOBELLO MARKET W2
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OPEN SPACE TRADING
C01\1pll!vy
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THE CALIFORNIA OPEN SPACE TRADING COMPANY is at present a partnership
between Colin SerlLn and Stephen Kelth. We propose ~ncorporating the
partnership in the near future.
Colin Serlin 16 Pres~dent and controlling shareholder 1n Mountain
Water Estates Li~ted, apropertjUinvestment and development company
based maloly out of London.Currently the company has acquired property
in Cal1fornia and will be developlng 10 Los Angeles. The Company has
a nett value substantially in excess of $1,000,000 and will be used as
the major financial vehicle for the proposed Pler Market.
Over the past years a number of the company's sites have been utl1ised
for flea markets and we have become lncreasingly involved wlth the operatlon
Stephen Keith 16 an Honours graduate from the University of Manchester
in th U.K.For 8 years >~ '.as marketin~ manager and ultimately Managing
Director of Graft & Manquist Lim1ted , a major British company.
Subsequently he formed Associated Promotions Lim1ted Wh1Ch spec1alised
in the organlsation and management of exhibitions ,displays,and shows.
Clients 1ncluded Br1tish Leyland and F.W. Woolworth.
LOS ANGELES SUITE 301 1340 S B EVERLY G LEN BLVD L A CAL 90024 (213) 858-8512
LONDON 59 CHEPSTOW ROAD PORTO BEllO MARKET W2