SR-906-000 (15)
CCS: ADMN:BS:JM:F:SHARE:STAFFRPTS\CAVALIA.DOC
City Council Meeting: September 14, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Proposed Policy on Limited Theatrical Use of the Parking lot at 1550
Pacific Coast Highway and Authorization for City Manager to Negotiate
and Execute a License Agreement with Cavalia LLC for Use of a Portion
of THE Lot for Theatrical Performances
INTRODUCTION
This report recommends adoption of a policy permitting limited commercial use of the
parking lot at 1550 Pacific Coast Highway (?1550 Lot?) for theatrical performances
during fall and winter months and requests City Council authorization for the City
Manager to negotiate and execute a license agreement with Cavalia LLC for use of a
portion of the lot for theatrical performances between October 11, 2004 and February
28, 2005.
BACKGROUND
In recent years, City staff has explored various means of sustaining and enhancing the
Beach Fund. During the past year, City staff has been approached by various event
producers regarding the availability of the 1550 Lot for extended cultural/entertainment
activities. The Council-approved Community Events Program allows for some classes
of short-term events in the Beach lots to enhance opportunities for expression.
However, the Community Events Program does not address or allow extended
commercial use for the purpose of enhancing City revenues. In order to sustain the
Beach Fund and to be responsive to the inquiries about longer-term stays, City staff
issued a Request for Letters of Interest to ensure an open and competitive process for
interested applicants. This opportunity was advertised in the Los Angeles Times on
June 10, 2004.
The City received one Letter of Interest from Cavalia LLC for the 2004-05 fall/winter
season. City staff has worked closely with the Pier Restoration Corporation staff to
evaluate the proposal, its benefits and its impacts.
DISCUSSION
Allowing limited theatrical use of part of the 1550 Lot during late fall and winter months
pursuant to a City license will help sustain and enhance the Beach Fund, provide new
entertainment opportunities, and attract visitors. It will not impair beach access or
interfere with community events. Cavalia is theatrical performance described as a
?magical encounter between Man and Horse.? The ticketed performances take place in
a large tent structure and would require the use of half of the 1550 Lot with the
remainder of the lot available for general public parking. Past performances have
received critical acclaim in Seattle, Toronto, Montreal, Berkeley, Glendale and currently
in Del Mar. Cavalia LLC proposes a Santa Monica run of seven performances weekly
over an initial period of five weeks with an option to extend for an additional five weeks.
This type of performance is of a quality and nature that would attract visitors to the
Santa Monica Beach and the Santa Monica Pier during a time period that traditionally
sees a drop in activity.
FISCAL/BUDGET IMPACT
In the prior fiscal year, the City generated approximately $154,000 from special events
and filming at the 1550 Lot during the same time period. Discussions with Cavalia LLC
indicate that the production could generate net revenue to the City?s Beach Fund that
would approximate prior year levels.
RECOMMENDATION
City staff recommends that the City Council adopt a policy allowing licensing of part of
the 1550 Lot for theatrical use during the late fall and winter months and authorize the
City Manager to negotiate and execute a license agreement with Cavalia LLC for the
time period and use specified in this report, contingent upon reaching an agreement that
ensures net Beach Fund revenues will approximate prior year levels.
Prepared by: Barbara Stinchfield, Director
Elaine Polachek, Open Space Manager
Department of Community and Cultural Services
f:\atty\muni\strpts\mjm\1550lotsupplemental.doc
City Council Meeting 9-14-04 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Supplemental Staff Report On Proposed Policy and Guidelines for Extended
Licensing of a Portion of the 1550 Lot During the Off-Season to Generate
Revenue
Introduction
This report supplements the staff report recommending a proposed policy authorizing extended
licensing of a portion of the 1550 Lot during fall and winter months in order to generate revenue.
Supplementary information includes additional background, a summary and discussion of
relevant issues, and proposed guidelines that would serve to implement the proposed policy if it
is adopted.
Background
The 1550 Lot, which is located immediately adjacent to and north of the Santa Monica Pier,
provides parking for visitors to the beach and to the Pier. During peak summer months, the lot is
heavily utilized for this primary purpose and fills to capacity. However, it is under-utilized in the
off-season.
Because space is usually available in the lot, the City allows the public use to use portions of it
for a limited range of expressive activities pursuant to the Community Events Law and the event
permitting system which implements that law. Allowing this use is fully consistent with the
City?s goal of promoting opportunities for the exercise of First Amendment rights. Moreover,
the restrictions upon types of expressive activities that may be conducted in this limited forum
ensure, among other things, that visitors to the beach and Pier will be able to enjoy the splendid
natural environment.
That environment is protected and managed by the City?s Community and Cultural Services
(CCS) Department which administers the Beach Fund. Sustaining the fund is an ongoing
challenge. Accordingly, CCS routinely explores possibilities for revenue generation.
In the last year, three groups contacted CCS about renting space in the 1550 Lot for an extended
period of weeks or months in order to conduct commercial entertainment/cultural activities.
However, no clear standards exist for evaluating and responding to these inquiries. The
Community Events Law, which is intended primarily to protect public space, ensure its shared
use and maximize opportunities for expression in public space, does not authorize extended use
of public space by a single person, group or entity. Moreover, doing so could be inconsistent
with that law?s purposes. Thus, a commercial entity wishing to, for instance, put on a show for
months in the 1550 Lot could not obtain a Community Events Permit for that purpose.
In order to explore the possibility for revenue generation that such extended uses of the 1550 Lot
might afford and to respond to the inquiries about such use, City staff analyzed the options.
Staff?s recommendation to adopt a policy and guidelines allowing for extended licenses in the
1550 Lot results from that analysis.
Discussion
Recent inquiries and past experience show that a market exists for licensing portions of the 1550
Lot for extended periods. The location is prime. Parking is available. During the fall and winter
months part of the lot could be licensed to appropriate commercial enterprises without
inordinately impacting beach parking or opportunities for community events. However, the
policy and guidelines would have to be carefully conceived in order to maintain control of the
lot?s uses and preserve the current Community Event management system. For example, the
policy would need to rest upon and maintain a clear demarcation between the two uses of the lot
for activities other than parking: one use being as a limited forum for some expressive activities
and the other for commercial benefit to the City and the public it serves. The policy would also
need to limit the type of extended commercial activities to safeguard the beach so that it is
preserved as a haven where residents and visitors can recreate and restore their spirits by
experiencing the natural environment.
Consistent with these goals, CCS and the City Attorney?s Office are proposing guidelines for
generating revenue by licensing part of the 1550 Lot during the off season. A copy of the
proposed guidelines is attached.
The guidelines would ensure effectuation of the principal goal of generating substantial net
revenue to the Beach Fund. This goal is important not just in itself but also to ensure that
licensed events are clearly differentiated from Community Events and the Community Event
permitting system. The guidelines relevant to these points include the requirements that the
event generate substantial net revenues, that the license term be for a minimum period of five
weeks, that the licensed area encompass between ¼ and ½ of the lot, that the licensed charge be
at market rate, that the licensee pay all City costs, and that the licensee comply with all standard
City requirements such as insurance and indemnification.
The proposed guidelines would also protect access to the Beach, the beach environment and
experience, neighbors? quality of life, and the Pier businesses. Thus, events would only be in
the off-season. Also, the licensee would be required to provide a traffic and off-site parking
plan, and the event would have to consist primarily of entertainment or cultural enrichment open
to the public and suitable for all ages; not sales or business promotion. No concessions or
services in competition with Pier businesses would be allowed.
Finally, the proposed policy and guidelines would not adversely impact those wishing to utilize
Beach lots for permitted Community Events. The permitting system and guidelines for utilizing
the limited public forum provided by the Beach lots would remain unchanged. Also, ample
space for such events in beach lots would remain available.
RecommendationStaff recommends that the City Council approve the proposed policy and adopt
the proposed, attached guidelines so that a framework will exist for future evaluation of license
applications.
PREPARED BY: Barbara Stinchfield, Director of Community and
Cultural Services
Elaine Polachek, Open Space Manager
Marsha Jones Moutrie, City Attorney
Barry Rosenbaum, Senior Land Use Attorney
SEE ATTACHED PROPOSED GUIDELINES
Guidelines Governing The Licensing of Lot 1 North For Large, Extended Commercial
Events For The Purpose Of Generating City Revenue
The following guidelines shall govern the licensing of Lot 1 North (1550 Beach Parking
Lot) for events that are not governed by the City?s Community Event Ordinance and
implementing regulations:
1. The event must generate substantial net revenues to the City?s Beach Fund to
support beach operations and improvements.
2. Lot 1 North shall only be licensed during the Santa Monica beach off-season
stth
(November 1 through February 28).
3. The license term shall be for a minimum period of five weeks but shall not exceed
sixteen weeks.
4. The licensed area shall encompass a minimum of ¼ of Lot 1 North (80,000 square
feet) and a maximum of ½ of Lot 1 North (160,000 square feet).
5. The license charge shall be based on comparable market rates for similar venues.
6. The event must be open to the public (free or ticketed) and intended for diverse age
groups.
7. The licensee must meet standard City requirements for insurance, indemnification,
security, Police, Building and Safety, Fire Department and other governmental
approvals, business licenses, recycling, clean-up, waste disposal, and accessibility.
8. The licensee must pay for all City costs and services associated with the event,
including but not limited to, police services for crowd/traffic control, fire safety officers,
location supervision, parking staff, utility charges, sanitation services, and
custodial/maintenance services. The City division responsible for the services shall
determine the costs to be borne by the licensee.
9. The event must have a City approved traffic and off-site parking (with shuttle) plan.
10. The event shall not offer concessions or services that are in direct competition with
adjacent Pier businesses.
11. The event must be entertainment or cultural. Events that have as a principal
component merchandise sales or exhibits, business promotions, or product or service
launches/sampling shall not be considered.
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