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SR-305-005 (4) F:\CCSADMN\SHARE\STAFFREP\011304 18th st.doc Council Meeting: January 13, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff th SUBJECT: Contract with 18 Street Arts Center For Funding Approved During the Fiscal Year 2003-04 Budget Approval Process Introduction This report requests that Council authorize the City Manager to negotiate and execute a th contract with the 18 Street Arts Center for funding approved with the adoption of the FY 2003-04 City Budget. Background th At the June 17, 2003, City Council meeting, representatives of the 18 Street Arts Center requested funding to embark on a Facility Expansion Feasibility Study to identify th ways that 18 Street can maximize the use of its property to better address the cultural facility needs of the City’s arts agencies and artists. This study will examine the cost of building and operating affordable artist live-work housing using sustainable building practices, implementing upgrades to the studio, gallery, theater, dance and office th facilities currently provided to nonprofit arts organizations at 18 Street and the development of on-site parking as a possible revenue generator. In response to this th request, Council set aside $20,000 for the 18 Street Arts Center’s planning study pending staff evaluation of the Center’s scope of work. This motion was incorporated into Resolution #9863 adopting the FY 2003-04 Budget. Discussion th Community and Cultural Services Department staff has met with the staff of the 18 Street Arts Center and Cain Brothers, consultants and capital advisors on the project. Cain Brothers has a proven track record in creating plans and generating the necessary th funding sources for projects similar to the one proposed by 18 Street. The proposed plan lays out realistic goals with built in check points to examine the feasibility of moving th forward. 18 Street has already secured $20,000 in additional funding for this strategic plan from private sources. Additionally, potential funding sources from both private foundations and public agencies have already been identified for various project components. th The work plan for the Facility Expansion Feasibility Study for the 18 Street Arts Center provides many opportunities for the public to provide input on the project. Specifically, th 18 Street hopes that the Santa Monica Arts Commission, the Environmental Task Force, and other City agencies will participate in workshops and a design charette planned for March. The shortage of affordable cultural facility space in Santa Monica has been documented in the Santa Monica Cultural Arts Master Plan, adopted by Council in 1996, while the need for affordable artist live/work space was identified in Strategies to Preserve and Enhance Affordable Artist Housing and Studio Space, th adopted by Council in 2000. 18 Street Arts Center is the only nonprofit provider of such th space in Santa Monica and the demand far outstrips their current capacity. 18 Street houses thirty percent of the nonprofit arts agencies in Santa Monica with another twenty percent on their waiting list for office space. There are only nine nonprofit live/work 2 th studios for artists in Santa Monica and all of them are at 18 Street. With the development of Crossroads School, there is a substantial need for parking in the th neighborhood surrounding 18 Street. Planning for the project will examine these needs. th City staff is confident in the 18 Street Arts Center’s ability to proceed with this strategic plan and recommends that a contract be executed. Budget Financial Impact Funds in the amount of $20,000 are available in account number 01274.544390. Recommendation Staff recommends that the Council authorize the City Manager to negotiate and execute th a contract with the 18 Street Arts Center. Prepared by: Barbara Stinchfield, Director, Community and Cultural Services Karen Ginsberg, Asst. Director, Community and Cultural Services Hamp Simmons, Coordinator, Cultural Affairs Division 3