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C/ED:EDD:EF:
Council Meeting: July 8, 1986
Santa Monica, California
TO:
The Mayor and City council
FROM:
City Staff
SUBJECT: civic Center Improvement program Background and
Technical Information Report
INTRODUCTION
This report transmits to the City Council the Background and
Technical Information Report for the civic Center Improvement
program. The report concludes part 1 of the planning and market
analysis for the project prior to beginning the public review and
comment period. This pUblic review periOd will be followed by
part 2 ,
the draft civic Center Improvement Program document
whiCh will provide an improvement and/or development program for
the site.
This staff report describes the purpose of the Background and
Technical Intormation Report, summarizes the Report's major
findings, presents a brief analysis of the opportunities and
constraints of the civic Center site and describes four primary
improvement/development scenarios plus several additional site
plan concepts. The staff report recommends that the City council
review the Technical Report and provide staff with its initial
comments and directions prior to beginning public review and
comments on the Technical Report.
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BACKGROUND
In January 1986, the city retained the services of a team of
consul tants headed by Barton Myers Associates to prepare the
civic Center Improvement Program. Barton Myers Associates
(project management and schematic site planning) is assisted by
Harrison Price Company (market analyses), Edgardo contini and
Harold Marks (parking and traffic circulation analyses), Theater
Projects (technical feasibility of Auditorium reuse), and
campbell and campbell (schematic site plans and landscaping).
The Background and Technical Information Report is intended to
provide information that will assist the city in determining an
appropriate improvement program for the civic Auditorium and its
adjacent surface parking lot. This project site totals
approximately 473,000 square feet of land or about 10.9 acres.
The Technical Report provides information on the "market demandll
for cultural and civic facilities; on the net cost to construct,
operate, and maintain these and other community facilities; and
on the types of land uses and scale of development on the block
that would be required to generate revenue to offset the cost
(plus a 20% contingency to provide a margin of comfort) of
building, operating, and maintaining desired cultural and civic
facilities.
The Technical Report contains four scenarios for the City
Council's and community's consideration and illustrates these
scenarios with conceptual site plans. These conceptual plans
were prepared to help determine the ability of the site to
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accommodate a variety of development mixes given the limited
amount of land area available for development and the consequent
market demand.
The Technical Report also provides a "unit" of net revenues
generated by office development.
This information will enable
the city Council to determine the all\ount of revenue-generating
uses that would be required to be developed on the block to
offset the cost of alternative mixes of cultural and civic
facilities. On a gross basis, it is estimated that one square
foot of office space would generate approxill\ately $1.39 per year
in land lease revenue to the city.
Each parking space will
generate approximately $120 per year in direct and ground lease
revenue to the City.
MAJOR FINDINGS
The Background and Technical Information Report presents a number
of findings.
Civic Auditorium
1) Operation of the Civic Auditorium resulted in a net deficit
to the City during the first 11 years of its existence.
During the 1970.s, the facility operated at a net surplus due
to the popularity of rock and roll shows staged in the
facility. By the mid-1980's, the facility fluctuated between
operating losses or small profits.
2) Today, the Santa Monica civic Auditorium is a moderately
successful financial entity compared with other civic
auditoriums in Los Angeles county.
3) The short term prospects for the facility are far improved
froll\ the decline or marginal nature of the facility during
the early 1980's due to the enlarged capacity of the building
and the agreement with Avalon Attractions to help book the
facility.
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4) The civic Auditorium is an example of a multiple purpose hall
which by its nature compromises its excellence for staging
certain types of events. The facility is well suited to
accommodating pop/rock concerts, film exhibitions, and
special events. The building is not as well suited as a
venue for opera, broadway-type theater productions, symphony,
and dance programs.
5) The civic Auditorium serves a limited number of community and
civic users. Of the 52 "civic" events staged at the facility
in 1985, only about 15 were events that would find it
difficult to relocate to other facilities if the Auditorium
were demolished and replaced with a smaller facility or
rehabilitated to a different type of facility.
Cultural and civic Facilities
1) The Los Angeles region could support no new theaters beyond
those existing or currently proposed if the market demand for
theater space was derived only from the supply of available
seating in the region's facilities compared to the region's
population (number of seats per 1,000 population). If all
new theaters proposed for the Los Angeles region were
constructed, the region would have the same number of theater
seats per 1,000 population as New York. However, demand for
theaters is derived from primarily the quality of the product
being offered. If one theater offers a better show than
another, the theater-goer may switch his or her allegiance to
a particular theater.
2) There is a demand for using the civic Auditorium as a mid to
large sized popular/rock music venue. At its current 4,500
person capacity, the civic Auditorium is the second largest
enclosed mid-sized venue in the Los Angeles region, the
largest behind the Universal Amphitheater. All seven of the
most influential promoters in the Los Angeles market
expressed strong interest in using the ci vie due to its
capacity, location, parking, and general ambiance.
3) There is a demand for a small 300-500 seat performance
theater based on discussions with numerous small theater
companies in the surrounding area, on the number of
performances given, and on the high attendance at local
theater productions. These small theaters are usually
designed with an adjoining 99 seat experimental theater or
"black box".
4) There would be a demand created for a specialized use for the
Civic Auditorium if new theatrical prOduct would be staged in
the facility. This would require identifying an operator
which has a theatrical product to import into the area (the
traveling show of a Broadway play) or locating a group or
organization which would use the facility for a specialized
use (a film institute or organization).
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5) A 50,000 square foot conference center and a 350 room hotel
to serve the center could be supported by the proj ected
growth of conference and meeting activity in California
resort areas. A 50,000 square foot conference center is of a
scale that is compatible with a community the size of Santa
Monica and would be served by not only hotel facilities in
Santa Monica but also the westside area.
compatible Revenue-Generating Land Uses
1) The demand for office development is approximately 200,000
square feet per year.
2) The Civic Center is not well suited to large scale retail
development due to its proximity to Santa Monica Place and
the Third Street Mall. The area is suitable for retail that
would support office, conference, hotel, and other site
employees and visitors.
3) There is an estimated demand for 844 first class hotel rooms
not associated with a conference center in the Civic
Center/Oceanfront area but approximately 1,050 are planned
for the area. Depending on the timing of these planned new
room, the Civic Center area could capture some of the demand.
SITE ANALYSIS
The Civic Center site has both opportunities that could enhance
improvements and development of the site and constraints that
will control the amount and location of improvements and
development that are possible.
site opportunities
site opportunities that benefit the parcel include the direct and
easy access to the Santa Monica Freeway which will be improved
with construction of the proposed 4th street on-ramp; the
surrounding
surface
street
system which
can
accommodate
additional traffic; and the potential redevelopment of the Rand
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property which could incorporate visual and pedestrian linkages
with Ocean Avenue, the Pier, and the Promenade.
The city's general plan permits up to 1.4 million square feet of
development on the Civic Auditorium parcel which is currently
developed with the 72,000 square foot Auditorium facility for an
FAR of 0.15. Traffic counts for street segments between Pico
Boulevard and Colorado Avenue indicate that Ocean Avenue's
current average daily traffic volume is about 65% - 70% of its
design capacity, Main street is about 25% of its design capacity,
and 4th street is at 58% - 75% of its capacity.
Site Constraints
The Civic Center area serves as the center of governmental and
jUdicial activities in the city and any improvements and
development of the Civic Auditorium parcel should be compatible
with this activity. The civic Center/Oceanfront area is also
expected to experience a significant amount of new development on
adj acent parcels in the near future both on the Rand parcel
across Main Street and on large parcels along Ocean Avenue and
the school administration site. This major growth activity will
significantly alter the character of the area and may also result
in limits to development due to potential traffic congestion in
the area. The parcel is physically and visually separated from
major activity centers such as the Downtown, the Third street
Mall, and the beach by the Freeway, the Rand parcel, and Santa
Monica Place.
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A major 120" storm drain traverses the civic Auditorium site 16'
to 20' below the surface which limits the amount of underground
parking that is possible on a key portion of the site near the
Freeway on-ramp. The underground storm drain requires that
parking be located primarily in above-grade parking structures
which limit the amount of Civic Center parcel available for
buildings and open space.
IMPROVEMENT AND DEVELOPMENT SCENARIOS
The Background and Technical Information Report delineates four
scenarios which illustrate a range of options for the City in
improving the civic and cultural amenities in the area. (See
Attachments 1 - 4.) The cost of providing these improvements
(plus a 20% contingency for a margin of comfort) would be offset
by the development of revenue-generating uses on the Civic
Auditorium parcel which are compatible with both the Civic
Center's role and function and the constraints of the area. TWO
scenarios provide for the improvement of the existing Civic
Auditorium and two scenarios provide for its demolition and
replacement with new cultural amenities. The schematic site
plans provided for each scenario are conceptual and are intended
to illustrate for comparative purposes the scale and mass of
development that would be required on the parcel under different
scenarios. All scenarios assume that up to 1/3 of all parking is
provided below-grade and the remaining 2/3 is provided in an
above-grade parking structure due primarilY to the location of
the underground storm drain. All scenarios also assume that
parking currently provided on the Civic Auditorium parcel for
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city Hall and County Courthouse employees, visitors, and jurors
will be located in a structure built behind the city Hall and
county buildings. Providing replacement parking on the Civic
Auditorium parcel for City and County use would severely limit
the improvement and development options available for the parcel.
Scenario A
scenario A suggests retaining and rehabilitating the civic
Auditorium as a popular/rock music venue, constructing a small
outdoor grassy amphitheater for community concerts and programs,
constructing an art museum/gallery, and providing significantly
improved landscaping to create a park-like environment. Tbe
approximatelY $330,000 net annual cost for paying off capital
improvements and providing for operatingjmaintenance expenses
(including a 20% contingency) would require the development of
131,000 square feet of office space on the Civic Auditorium
parcel to generate sufficient annual ground lease revenue to
offset the cost of providing the Civic amenities. The total
development on the Civic Auditorium parcel including above and
below grade parking would be 457,000 square feet. All
above-grade development would total 0.72 FAR. (This assumes that
the area devoted to above-grade parking would be counted at
2j3rds of its actual floor area as permitted in the city's
proposed Zoning Code.)
scenario B
scenario B recommends the conversion of the Civic AUditorium
building to a musical theater venue or to another use that would
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be compatible with a 350 room hotel and 50,000 square foot
conference center. (Retaining the civic as a popular/rock music
venue would be incompatible with hotel and conference center
operations.) The scenario also recommends landscaping the block
to create a park-like setting for the development. The report
estimates that it would cost the City $1,092,000 per year to
cover the construction, operation, and maintenance of the
conference center (including a 20% contingency). To offset this
cost, the City would be required to dedicate the transient
occupancy tax revenue from the new 350 room hotel on the parcel
and a portion of the transient occupancy tax revenue from the
other hotels in the area that would be served by the conference
center. This arrangement is typical of other communities with
similar conference centers since the conference center helps to
both stimulate and stabilize annual tourist and business travel
in the community. To offset the approximately $697,900 net
annual capital, operating, and maintenance costs (including a 20%
contingency) required to rehabilitate and reuse the Civic
AUditorium as a musical theater or other compatible facility and
to provide a landscaped park-like setting, about 275,000 square
feet of office space would have to be developed on the parcel.
The resulting 1,231,000 square feet of development on the parcel
including underground parking translates into an FAR of 1.9 for
all above-ground development.
Scenario C
scenario c supposes the demolition of the Civic Auditorium and
its replacement with other civic and cultural amenities. These
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include a 50,000 square foot conference center, an art
museum/gallery, and a landscaped park-like setting. As in
scenario B, the cost of providing and operating the conference
center would be offset by transient occupancy tax revenue from
the on-site and other nearby hotels. To offset the $442,000
annual capital, and operating and maintenance costs (including a
20% contingency) for these facilities would require the
construction of a 350 room hotel (which would be necessary for
the efficient operation of the conference center) and 175,000
square feet of office space. There would be 922,000 square feet
of development on the parcel including underground parking. The
FAR for above-grade development would total 1.48 FAR.
scenario D
Scenario D recommends demolishing the Civic Auditorium and
replacing it with a 500 seat and 99 seat theater complex, a
grassy outdoor amphitheater, an art museum/gallery, and
landscaped park areas. The $1,238,000 annual capital and
operating/maintenance costs (including a 20% contingency) would
require the development of 489,000 square feet of office space.
This would result in 1,156,000 square feet of development
(including underground parking) or 1.71 FAR for all above-grade
development.
Alternative scenarios
In addition to the four scenarios presented in the body of the
report, the consultants also provide additional site plan
concepts that are included for the Council's consideration.
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These alternative concepts would require a refocus of the present
civic Center Improvement Program study and would require that
additional work be done to refine these concepts. However, as
concepts, they deserve the City Council's consideration as they
represent a maj or rethinking of the the ci ty' s present (and
historic) Civic Center grouping of facilities. Each alternative
contains some major difficulties and significant tradeoffs in
their implementation, but each provide the potential for a civic
center complex that would directly link with the pier, the
Promenade, beach, and Pacific Ocean.
These alternatives suggest that the civic Center axis shift from
a north-south (Santa Monica Freeway - pico Boulevard) orientation
to an east-west (City Hall ocean) orientation. The
alternatives suggests that new development of the Rand property
accommodate a visual and pedestrian "civic" corridor across the
Rand parcel. This corridor would require either the purchase of
the property or shifting of development potential to other
portions of the property. The civic corridor connection would
continue across Ocean Avenue to the Promenade either utilizing
city-owned property adjacent to Seaside Terrace (necessitating a
"slanted axis" from city Hall to the ocean) or privately owned
property between Seaside Terrace and Arcadia Autoway (permitting
a "perpendicular axis" directly to the ocean). This would
require purchasing residential property and relocating tenants
and homeowners. civic and cultural facilities, pedestrian
oriented uses such as retail shops and restaurants, view
corridors, pedestrian promenades, and small one-way streets would
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be located within this civic corridor. To offset the increased
costs involved in implementing these alternatives, a significant
amount of new development would be required on the civic
Audi torium parcel to generate revenue. The costs to implement
this scenario could be offset by maximizing development of the
civic Auditorium parcel. The parcel could accommodate up to: 1)
475,000 square feet of office development plus a 350 room hotel
and 50,000 square feet conference center which would generate
about $1,085,000 per year or 2) 600,000 square feet of office
development if no conference center/hotel is included which would
generate up to $1,570,000 per year. This would fully develop the
southern end of the Civic Center block and reorient the civic
complex to the west toward the ocean. While the potential costs
appear high and implementation would be lengthy and complex, the
results would be dramatic.
FINANCING AND IMPLEMENTATION
Specific financing and implementation mechanisms will be
presented in the draft civic Center Improvement Program once the
city Council provides staff with directions on which scenario or
combination of scenarios to utilize. However, it is assumed that
the city would sell bonds based on the anticipated revenue the
city could receive from a ground lease of the Civic Auditorium
parcel.
RECOMMENDATIONS
It is recommended that the city Council review the Background and
Technical Information Report and provide staff with its initial
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comments.
Based on Council comments, staff will proceed to
conduct pUblic workshops on the Technical Report and return to
the council in September with recommendations on drafting the
Civic Center Improvement Program report.
Attachment 1 Scenario A - civic as a popular music venue; grassy
amphitheater; art museum/gallery; landscape/park;
office space of 131,000 square feet
Attachment 2 scenario B - civic Auditorium as a musical theater
venue; conference center and hotel; landscape/park;
and 275,000 square feet of office space
Attachment 3 Scenario C - Demolish Civic; construct conference
center and 350 room hotel; art museum/gallery;
landscape/park; 175,000 square feet of office space
Attachment 4
scenario D - Demolish Civic; add 500 and 99
small theater complex; grassy amphitheater;
museum/gallery; landscape/park; 489,000 square
of office space
seat
art
feet
Attachment 5 Background and Technical Information Report for the
Civic Center Improvement Program
Prepared by: Peggy Curran, Director, ClEO
Ernesto R. Flores, Economic Development Manager
Christopher S. Rudd, Senior Administrative Analyst
cvctocc2
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