SR-802-001-03 (2)
RMD: EDD: MR: AJ: F:\RESOURCE\SHARE\STAFFREPORTS\PIER LEASING GUIDELINES FY? 03.DOC
Council Meeting: March 11, 2003 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Proposed Guidelines for Leasehold Management of Santa Monica Pier
for Calendar Years 2003 and 2004
Introduction
This report recommends that Council approve proposed guidelines for leasehold
management of City property located on Santa Monica Pier for calendar years 2003 and
2004.
Background
In November 1983 City Council created the Santa Monica Pier Restoration Corporation
(PRC) as a non-profit, public benefit corporation to oversee the reconstruction and
commercial revitalization of the Pier. The responsibilities and authority of the PRC were
formalized and broadened in December 1985, with Council approval of a Services
Agreement with the PRC and by-laws for the corporation. The relationship between the
City and PRC was reaffirmed and modified upon Council approval of a new Services
Agreement on December 19, 2000, transferring to City Economic Development Division
staff, supported by the Office of the City Attorney, responsibility for lease and license
negotiations and administration of approved uses of the Pier. The PRC remains
responsible for establishing, subject to Council approval, policies and guidelines for
operation of the Pier, for promoting and marketing of the Pier as a community asset, for
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hosting and managing special events and activities on the Pier, and as advocates for
Pier-related capital projects and improvements.
The PRC formulated a set of public policy statements, goals and objectives for future
development and use of property on the Pier, set forth in the General Use and
Development Plan adopted by the PRC in September 1987 and approved by Council in
February 1988. The 1988 Plan identified a multi-step program for the commercial
revitalization of the Pier through attraction of diverse products and services appealing to
the varied public visiting the Pier. The appropriate tenant mix distribution identified at
that time included retail, restaurant and entertainment/amusement uses. A primary
objective of the PRC?s development program was to revitalize the Pier in a manner that
preserved its historic design and use characteristics while serving the future recreational
needs of the community and the economic requirements of the City. The Pier?s
economic position was to be improved by increasing the commercial area available for
leases and licenses, and improving the quality of products and services offered while
maintaining it as an affordable destination.
Council oversight and review of PRC activities continues through its appointment of
members to the PRC Board of Directors and through review and approval of an annual
Plan of Work, annual Leasing Guidelines and annual budget proposed by the PRC.
The Plan of Work sets forth the goals and objectives of the PRC for the ensuing fiscal
year, and the Leasing Guidelines set forth the standards and methodology used by City
staff to implement the commercial objectives of the PRC stated in the Plan of Work.
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The City provides funds for PRC activities and program implementation through the
allocation of budget resources.
Guidelines for design and future development and use of property on the Pier were set
forth as public policy statements in the 1988 General Use and Development Plan. As
called for in Section 5.1 of the 2000 Services Agreement, draft leasing guidelines for
Santa Monica Pier were reviewed with and approved by the Leasing Committee and
PRC Board. At its meeting held February 13, 2001, Council approved the Leasing
Guidelines for fiscal years 2000-01 and 2001-02, subject to the Guidelines being
returned for periodic review and possible modification by the PRC Board and City
Council as the means by which each year?s Plan of Work is to be implemented.
The PRC and Economic Development Division staff has concluded the following leases,
licenses and operating agreements on behalf of the City since February 2001 for
commercial use of the Pier in accordance with the approved Leasing Guidelines:
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200 Santa Monica Pier ? new operating agreement for management and
maintenance of the Santa Monica Carousel with Roth Management Company
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200 Santa Monica Pier ? new booking agent agreement for management of
parties and events in the Carousel Building with Kids Play, Inc.
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200 Santa Monica Pier ? new concession agreement for operation of a gift shop
featuring carousel-related and pier-related items with Airport Concessions, Inc.
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301 Santa Monica Pier ? new lease for development and operation of a family-
oriented restaurant with Bubba Gump Shrimp Company
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330 Santa Monica Pier ? new lease for continued operation of a convenience
restaurant with Surf View Café
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350 Santa Monica Pier ? amended and restated lease for continued operation of
a family-oriented amusement facility with George Gordon Enterprises (Playland
Arcade)
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380 Santa Monica Pier ? amended and restated lease for continued operation of
a family-oriented amusement facility with Santa Monica Amusements (Pacific
Park)
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401 Santa Monica Pier ? amended lease for expansion of family-oriented
restaurant with Pacific Faire, Inc. (Mariasol Cantina)
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404 Santa Monica Pier ? new lease for continued operation of a fishing bait and
tackle facility with Santa Monica Pier Bait & Tackle
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Historic Vending Operations ? new vending license agreements for continued
operation by four long-standing concessionaires (Churro Man; Oatman Rock
Shop; Thermal Base Photos; Beachcomber Gifts)
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Vending Cart Operations ? transitioned from master cart license agreement with
Promenade Services, Inc. to new cart license agreements with individual
operators
Also during the past fiscal year, the PRC and Economic Development Division staff
solicited proposals for leasehold development and operation of 250 Santa Monica Pier
(formerly Ash Grove and Arcadia).
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Discussion
Council approved the PRC?s Plan of Work for fiscal year 2002-03 on May 21, 2002.
This Plan of Work identified the following lease and license-related issues as needing to
be addressed during the current fiscal year:
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1600 Oceanfront Walk ? continue work with UCLA and/or Heal the Bay for
planned expansion of Ocean Discovery Center
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250 Santa Monica Pier ? assist in developing a viable new leasehold occupancy
for the site
Proposed Leasing Guidelines for calendar years 2003 and 2004 setting forth the
standards and methodologies to be utilized by City staff to implement the commercial
objectives of the PRC as stated in the Plan of Work are conveyed as Attachment A.
The proposed Leasing Guidelines were presented to and reviewed with the Leasing
Committee on November 25, 2002, and approved by the PRC Board of Directors at its
meeting held December 4, 2002. Significant modifications in the proposed Leasing
Guidelines from those approved by Council on February 13, 2001, are summarized as
follows:
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PREFERRED USES
: 250 Santa Monica Pier (former Ash Grove and Arcadia)
has been changed from ?music and entertainment venue with food and beverage
service? to ?casual breakfast, lunch and dinner restaurant or cafe, with or without
alcohol service, and preferably with evening music and entertainment?
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LOCAL PREFERENCE
: The limited size and density of commercial development
and casual recreational ambiance are important factors in defining the unique
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character of Santa Monica Pier. That unique character must be preserved in
order to protect the Pier?s economic viability. Therefore, leasing and licensing of
City-owned buildings and Pier deck area will be subject to a preference for locally
owned, independent, non-formula businesses and activities that are financially
and operationally capable of providing the Preferred Uses. Such preference will
be reflected in bonus ratings and recommendations for responses submitted as
part of a public Tenant Recruitment process. A formula business is that which
requires by contractual or other arrangement the maintenance of standardized
name, services, décor, uniforms, facility design, signage and trademarks/logos,
menu and format substantially identical to a similar business located elsewhere.
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RENEWAL OPTIONS
: Lease and license renewals or options to extend the
terms of occupancy will not be offered. As vacancies arise either by natural
expiration or earlier termination, recruitment for each opportunity site will be
conducted in accordance with these Leasing Guidelines. Current operators may
respond to a public Tenant Recruitment process in the same manner as any
prospective new operator. It is recognized, however, that reliability and continuity
of quality commercial service are valuable assets to the public experience of the
Pier. In order to support existing quality Pier businesses operating and
maintaining their premises in full compliance of their lease or license, such
businesses will be subject to a preference reflected in bonus ratings and
recommendations as part of staff review of responses submitted in accordance
with the public Tenant Recruitment process.
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EXPANSION OF LEASEHOLDS
: Minor physical expansion of existing leasehold
occupancies (for example, enlargement of an outdoor patio) may be approved for
tenants who wish to further diversify their business operations through the
investment of additional capital in structures, structural improvements or
equipment, or otherwise improve operations consistent with the goals and
objectives of the Leasing Guidelines.
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LABOR PEACE
: The City owns the Pier and has a financial or proprietary
interest in Pier businesses engaged in visitor-serving commercial activities.
Some of these businesses are in industries that have a history of
labor/management conflict. Risk of interruption of rental revenue and common
area maintenance fees received by the City from Pier businesses would be
minimized if such businesses were assured of labor peace. An appropriate labor
peace provision would minimize the City?s exposure to revenue interruption and
disruption of public recreational enjoyment of the Pier. New agreements for
leasehold use will provide that the tenant may not engage in practices that
impede employees? ability to organize and contract with a labor organization for
the purpose of collective bargaining. Such prohibited practices include
harassment, intimidation, ?captive audience? anti-union meetings or illegal
terminations of workers in retaliation for organizing. Tenant engagement in
prohibited practices would constitute an event of default under the terms of lease.
Affected leases would be those businesses having five or more full or part-time
employees and engaged in restaurant or visitor-serving entertainment activities
such as arcades, amusement parks and nightclubs.
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Budget and Financial Impact
The City currently budgets for and funds anticipated costs of the Pier Restoration
Corporation, and budgets for anticipated lease rental and license revenue and costs
associated with City staff operation, maintenance and management of the Pier through
Economic Development Division of Resource Management Department. Anticipated
enhanced revenue based upon the proposed Leasing Guidelines will be a part of the
fiscal year 2003-04 budget. Approval of the proposed Leasing Guidelines will not affect
the fiscal year 2002-03 budgeted amount.
Recommendation
Staff recommends that City Council approve the Leasing Guidelines for calendar years
2003 and 2004 for use of Santa Monica Pier commercial area, and that the City
Manager be authorized to implement the Leasing Guidelines as approved.
Attachment A: Santa Monica Pier Leasing Guidelines for calendar years 2003 and
2004
Prepared by: Jeff Mathieu, Director of Resource Management
Mark Richter, Economic Development Manager
Elana Buegoff, Senior Administrative Analyst
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SANTA MONICA PIER
LEASING GUIDELINES FOR CALENDAR YEARS 2003 and 2004
GUIDELINE OBJECTIVES
Promote and maintain the compatible uses of City-owned property located on the Santa
Monica Pier in a manner supporting an attractive, safe and accessible environment for
visitors and the residential community; preserve and enhance the Preferred Uses
through operation of the facility in a manner supporting this diverse and affordable
public recreational and community asset; promote high quality of goods, food and
services provided by the commercial operators; establish the pricing of leasehold
occupancy consistent with optimizing the Preferred Uses and assisting in the support of
fiscal self-sufficiency of the Pier Fund; and assure access to and use of City-owned
properties by the general public for the Preferred Uses through a leasing program that
promotes the orderly management of tenancies.
PREFERRED USES
Current uses of City-owned structures and deck area on Santa Monica Pier are diverse,
and have been intended to preserve the Pier as a unique community recreational
resource. The Pier is an internationally recognized attraction serving residents and
visitors representing a broad range of incomes, ages and lifestyles. The current lease
and license agreements represent the implementation of the Santa Monica Pier
Development Program adopted in 1988.
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Diversity will be maintained but focused on those purposes that support the historic
character of the Pier and offer choices of services and pricing within the general use
categories while retaining the intended emphasis on low density, unique recreational
and entertainment-oriented activities. Preferred Uses include, but are not limited to, a
range of entertainment and commercial products and services that will appeal to and
serve both the residential community and area visitors.
Buildings and deck area on Santa Monica Pier that are and will be available for lease or
license, and associated Preferred Uses for each, consist of the following:
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1600 Oceanfront Walk ? 4,533 s.f. enclosed structure area
Current Operation: Ocean Discovery Center
Term: 8-year lease, commencing 07-01-95
Preferred Use: marine research and educational facility accessible to the public
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200 Santa Monica Pier ? 8,236 s.f. enclosed structure area
Current Operation: Roth Management Company
Term: 1 year Operating Agreement, commencing 09-01-01 (on holdover)
Preferred Use: public access to Carousel at supported pricing, with evening and
off-hours use of the Carousel building for parties, receptions and special events
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200 Santa Monica Pier ? 260 s.f. gift shop within Carousel Building
Current Operation: Airport Concessions Inc.
Term: thirty-three month license, commencing October 1, 2002 with two one-year
extension options
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Preferred Use: Carousel-related and general souvenir, gift items and books
featuring local history and themes
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250 Santa Monica Pier ? 5,015 s.f. enclosed structure and 1,064 s.f. patio area
Current Operation: Vacant.
Preferred Use: casual breakfast, lunch and dinner restaurant or café with or
without alcohol service, and preferably with evening music, entertainment and/or
other live performances
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256 Santa Monica Pier ? 3,035 s.f. enclosed structure and 1,073 s.f. patio area
Current Operation: Rusty?s Surf Ranch
Term: 20-year lease, commencing 11-01-94
Preferred Use: lunch and dinner restaurant with alcohol service, and with evening
music and entertainment
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258 Santa Monica Pier ? 2,557 s.f. enclosed structure and 1,392 s.f. patio area
Current Operation: Santa Monica Pier Seafood
Term: 23-year lease, commencing 05-01-91
Preferred Use: limited or full service family-oriented restaurant with or without
alcohol service
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301 Santa Monica Pier ? 4,534 s.f. enclosed structure and 2,198 s.f. patio area
Current Operation: Bubba Gump Shrimp Co. Restaurant
Term: 25-year lease, commencing 05-04-02
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Preferred Use: full service family-oriented restaurant with or without alcohol
service
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310 Santa Monica Pier ? 1,292 s.f. enclosed structure
Current Operation: Blazing Saddles Bicycle Rentals and Sales
Term: 43-month lease, commencing 04-01-00
Preferred Use: recreation-oriented bicycle rentals, with ancillary sales of bicycle-
related gear and merchandise
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330 Santa Monica Pier ? 1,525 s.f. enclosed structure and 584 s.f. patio area
Current Operation: Surf View Café
Term: 24-month lease, commencing 07-01-01
Preferred Use: limited service convenience restaurant without alcohol service
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350 Santa Monica Pier ? 8,603 s.f. enclosed structure and 641 s.f. patio area
Current Operation: Playland Arcade
Term: 30-year lease, commencing 07-01-90
Preferred Use: amusement and self-operated games arcade with ancillary retail
sales
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370 Santa Monica Pier ? 10,985 s.f. gross deck area
Current Operation: Club Route 66 (not yet constructed)
Term: 40-year lease, not yet commenced
Preferred Use: full service restaurant with alcohol service and with evening music
and entertainment
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380 Santa Monica Pier ? 75,000 s.f. gross (56,891 s.f. net) deck area
Current Operation: Santa Monica Amusements/Pacific Park
Term: 50-year lease, commencing 05-26-96 and as amended and restated
effective September 26, 2002
Preferred Use: amusement rides and games with ancillary retail sales and food
and beverage sales with or without alcohol service
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401 Santa Monica Pier ? 6,204 s.f. enclosed structure and 2,217 s.f. patio area
Current Operation: Mariasol Restaurant
Term: 35-year lease, commencing 01-01-91
Preferred Use: limited or full service family-oriented restaurant with or without
alcohol service
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404 Santa Monica Pier ? 292 s.f. enclosed structure
Current Operation: Santa Monica Pier Bait & Tackle
Term: 24-month lease, commencing 07-01-01
Preferred Use: fishing bait and tackle sales with ancillary retail sales, fast food
and convenience food
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Municipal Pier Deck Area
Current Operation: up to thirteen individual vending cart operating licenses,
including three historic operators (Thermal-Base Photo, Churro Man, Oatman
Rock Shop), two food vending carts and eight apparel/service carts
Term: 36-month licenses, cancelable on 30 days notice
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Preferred Use: Pier and/or beach-oriented retail sales and limited food service
DESIGN GUIDELINES
The historic character and eclectic, thematic appearance of the Pier are important
aesthetic elements to be retained, preserved and enhanced. The City has previously
adopted Design Guidelines to serve as an architectural standard for the Pier. All public
and private structural modifications and other improvements proposed for
implementation on the Pier will be subject to review for consistency with the Design
Guidelines, without exception. If tenants or City make modifications to structures on the
Pier deck or build new structures to implement the Preferred Uses as a mutually agreed
condition of a lease, the PRC and City shall first review and approve the proposed
scope of work and improvement design in accordance with the Design Guidelines. All
necessary architectural reviews, licenses and building permits must be obtained, and
the work inspected for compliance with applicable codes.
LOCAL PREFERENCE
The limited size and density of commercial development and casual recreational
ambiance are important factors in defining the unique character of Santa Monica Pier.
That unique character must be preserved in order to protect the Pier?s economic
viability. Therefore, leasing and licensing of City-owned buildings and Pier deck area
will be subject to a preference for locally owned, independent, non-formula businesses
and activities that are financially and operationally capable of providing the Preferred
Uses. Such preference will be reflected in bonus ratings for responses received from
locally owned independent businesses as part of a public Tenant Recruitment process.
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A formula business is that which requires by contractual or other arrangement the
maintenance of standardized name, services, décor, uniforms, facility design, signage
and trademarks/logos, menu and format substantially identical to a similar business
located elsewhere.
RENEWAL OPTIONS
Lease or license renewals or options to extend the terms of occupancy will not be
automatically offered to existing tenants upon expiration of agreements. As vacancies
arise either by natural expiration or earlier termination, recruitment for each opportunity
site will be conducted in accordance with these Leasing Guidelines. Current operators
may respond to the public Tenant Recruitment process in the same manner as any
prospective new operator. It is recognized, however, that reliability and continuity of
quality commercial services are valuable assets to the public experience of the Pier. In
order to support and encourage businesses on the Pier to operate and maintain their
premises in an exemplary manner, such businesses will be subject to a renewal
preference reflected in bonus ratings for responses received as part of a public Tenant
Recruitment process.
TERM OF YEARS
As vacancies arise either by lease and license expiration or earlier termination,
available space will be offered for Preferred Uses for non-renewable lease terms up to
five years if substantial new capital investment in structures, structural improvements or
equipment is not warranted.
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If a tenant is required to make substantial new capital investment in structures,
structural improvements or equipment to implement the Preferred Use consistent with
intended purposes of the premises, lease terms of ten years to twenty-five years may
be offered varying with amortization and financial requirements of the new investment.
EXPANSION OF LEASEHOLDS
Minor physical expansion of existing leasehold occupancies (for example, enlargement
of an outdoor patio) may be approved for tenants who seek to enhance, improve or
modify their business operations consistent with the Preferred Uses through the
investment of additional capital in structures, structural improvements or equipment in a
manner that does not limit or diminish operator diversity on the Pier. Such expansion
shall not diminish the opportunity for tenant diversity, and must advance the Preferred
Uses for the benefit of the Pier and City.
DIVERSITY OF TENANCIES
In order to promote operator diversity in the development and use of leasehold
opportunity sites, the prospective grant of multiple leaseholds and/or license areas to an
individual tenant, licensee or operator will not be permitted.
LABOR PEACE
The City owns the Pier and has a financial or proprietary interest in Pier businesses
engaged in visitor-serving commercial activities. Some of these businesses are in
industries that have a history of labor/management conflict. Risk of interruption of rental
revenue and common area maintenance fees received by the City from Pier businesses
would be minimized if such businesses were assured of labor peace. An appropriate
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labor peace provision would minimize the City?s exposure to revenue interruption and
disruption of public recreational enjoyment of the Pier. New or substantially amended
agreements for leasehold operation will provide that the tenant may not engage in
practices that impede employees? ability to organize and contract with a labor
organization for the purpose of collective bargaining. Such prohibited practices include
harassment, intimidation, ?captive audience? anti-union meetings or illegal terminations
of workers in retaliation for organizing. A substantial amendment is defined as a
change of use of the property, an increase in seating or square footage of more than
25%, or an extension of lease duration. Tenant engagement in prohibited practices will
constitute an event of default under the terms of lease. Affected leases would be those
businesses having five or more full or part-time employees and engaged in restaurant or
visitor-serving entertainment activities such as arcades, amusement parks and
nightclubs.
PERIODIC REVIEW OF RENTAL RATES
Minimum rents and participation by City in percentage rents based on gross receipts
from commercial lease and license activities will be established at estimated fair market
rates and set forth in any public Request for Qualifications and/or Request for Proposals
issued for any available leasehold or license opportunities. Responses received for
lease and license opportunities may exceed the minimum and percentage rents set
forth in the Requests.
Leaseholds with Preferred Uses for research and public educational purposes (e.g.
UCLA Ocean Discovery Center) and Operating Agreements subject to supported pricing
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standards (e.g. Carousel) will be maintained without application of fair market rental
rates. The City will seek to reasonably minimize its costs associated with these
activities by recovering Common Area Maintenance costs from leaseholds, by
participating in ancillary gross receipts from commercial activities at educational
facilities and the Carousel, and by making facilities subject to Operating Agreements
available for event rental at rates approved by the PRC and Council.
COMMON AREA MAINTENANCE COSTS
Leasehold tenants will pay as a condition of occupancy of Pier building or deck areas a
proportionate share of the City?s cost to manage, maintain and provide security to Santa
Monica Pier. As of January 1, 2000, the applied Common Area Maintenance cost was
$5.00 per leased square foot per year, increasing with biennial CPI adjustment as of
July 1. Monthly payment of Common Area Maintenance fees as additional rent shall be
a condition of each lease granted for the Pier. The Common Area Maintenance cost will
be reanalyzed and adjusted on five-year intervals, commencing with July 1, 2000.
FACILITY CONDITION REVIEW
All City-owned structures and deck area available for lease will be inspected prior to
new leasehold occupancy and brought by the City or new tenant to a decent, safe and
sanitary condition appropriate for the Preferred Use. If tenants must make
improvements to a building or deck area to implement the Preferred Uses as a mutually
agreed condition of a lease, City staff will first review and approve the proposed scope
of work and improvement design. The prospective tenant will provide the proposed
scope of work and preliminary improvement design in accordance with Tenant
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Recruitment procedures. All improvements on the Pier shall be in accordance with the
Design Guidelines. All necessary building permits must be obtained, and the work
inspected for compliance with applicable codes. Appropriate rental credits for the
approved work performed would be negotiated as part of the lease.
TENANCY RELATIONSHIPS
All City-owned buildings and deck areas on Santa Monica Pier appropriate and suitable
for leasing or licensing by the City to individual tenancies or licensees for the Preferred
Uses will be in accordance with agreements prepared by the City. Each tenant or
licensee will be responsible for interior maintenance and repair and utility consumption
at its sole expense, and the City will generally retain responsibility for maintenance and
repair of roofs and exterior of City buildings and of the Pier deck. Structures
constructed by tenants for the Preferred Uses would be subject to interior and exterior
maintenance and repair by the tenant at its sole expense. Subletting of leased
premises is prohibited except provided in the lease to provide ancillary services.
Subletting of license premises is prohibited without exception.
TENANT RECRUITMENT
All City-owned buildings and deck areas on Santa Monica Pier appropriate and suitable
for leasing or licensing will be subject to a public marketing and solicitation process to
identify prospective tenants and licensees with financial and experience qualifications
for the Preferred Use of the available space. Vacancies will be the subject of public
Requests for Qualifications and/or Requests for Proposals publicized utilizing:
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Media advertising, including general circulation newspapers or local/limited
circulation publications
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Direct mail to waiting list and/or other targeted individuals having expressed previous
interest in leasehold occupancy or license operation for the available Preferred Use
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Posting notice on the Pier Restoration Corporation?s, City?s and Resource
Management Department?s internet web site
As appropriate, vacancies may also be publicized utilizing:
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Direct contact or outreach to prospective tenants
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Dissemination by fax, e-mail or telephone to local commercial real estate brokers
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Press releases and other direct marketing performed by the PRC
Requests for Qualifications and/or Requests for Proposals will be drafted by City staff,
and approved by the Leasing Committee of the PRC prior to release.
The Request for Qualifications and/or Request for Proposals will set forth the Preferred
Uses of the available space, proposed terms and conditions for the leasehold or license
opportunity, and criteria for reviewing and rating responses. All respondents and
prospective tenants will file a Lease Application. Information contained in the Lease
Application will be utilized for confirmation that the proposed tenancy is a Preferred Use
for the available space, and verification of experience, references and financial
capability to perform leasehold obligations. Responses will also state preliminary terms
and conditions for the proposed lease or license.
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Responses to Request for Qualifications and/or Request for Proposals will be analyzed
and rated by a review team comprised of City staff and the Executive Director of the
PRC. Representatives of City Engineering Division and/or Planning and Community
Development may be included as appropriate. The review team will provide its analysis
and recommendation as to a preferred respondent, inclusive of appropriate bonus
ratings for local independent business respondents and complying tenant renewal
proposals, to the Leasing Committee of the PRC. The recommendation may be to
reject all responses, solicit additional information from one or more respondent, or to
enter exclusive lease or license negotiations with a preferred respondent.
The Leasing Committee will consider the review team analysis, and make its
recommendation the PRC Board. The Board may authorize City staff to enter exclusive
negotiations with a preferred respondent subject to specific terms and conditions, or
reject all proposals, or direct that additional information be solicited from one or more
respondent prior to making a determination.
City staff will conduct exclusive negotiations with each preferred respondent as
authorized by the PRC Board. The City Attorney will prepare all lease and license
agreements for review and execution by the prospective tenant or licensee. The
executed agreement will be submitted to the Leasing Committee for its review in terms
of consistency with the PRC Board authorization. If determined to be in accordance
with the authorization to enter exclusive negotiations, the lease or license will be
recommended to the PRC Board for approval. Upon approval of a lease or license by
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the PRC Board, the agreement will be approved as to form by the City Attorney and
transmitted to the City Manager for execution.
The City will neither pay nor receive commissions for leasing of City-owned property.
Staff will cooperate with commercial real estate brokers who are authorized to negotiate
leases and licenses on behalf of prospective tenants.
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