SR-407-007 (3)
F:\CAD\COUNCIL\REPORTS\arts commission means testing.doc
May 8, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation from the Arts Commission Regarding the Means Testing of
Artist Incomes for Artist Day-Studio Space at Santa Monica Airport
Introduction
This report recounts the action taken at the April 23, 2001 meeting of the Santa Monica
Arts Commission in response to the City Council’s April 10, 2001 request for the Arts
Commission’s further review of the feasibility of means testing of artist incomes for leasing
of artist day-studio space at the Santa Monica Airport.
Background
On December 5, 2000, the City Council approved guidelines for the leasing of non-aviation
City property at the Santa Monica Airport which included the rental of a building for use
as artist day-studios at below market rates. On April 10, 2001, the City Council considered
a request from the Arts Commission that it re-examine the criteria by which artists would be
selected as tenants for the day-studios. In a letter dated March 26, 2001, the Arts
Commission recommended to the City Council that an income maximum be established for
artist applicants that would correspond with 80% of the Los Angeles County median
income. The City Council supported the intent of the Commission’s request and directed
staff to provide information on the income levels of existing tenants at the Santa Monica
Fine Arts Studios (the proposed master lessee of the day-studio space at 3026 Airport
Avenue) and present this information to the Arts Commission. The Council requested that
the Commission consider the feasibility of establishing a percentage of tenants in the 3026
Airport Avenue space to be subject to the means testing requirement.
Discussion
At its meeting on April 16, 2001, the Arts Commission discussed the City Council action.
Staff explained to the Commission that means testing of individual existing tenants at
Santa Monica Fine Arts Studios has not been done in the past and was not a condition of
tenancy and therefore income level information was not available. At this meeting there
was considerable discussion concerning the Los Angeles County median income levels
and whether the Commission’s original request was meant to apply to the master lessee
space at 3026 Airport Avenue.
It was determined that the Commission’s Artist Live/Work/Studio Committee should hold a
special meeting to discuss these issues further and make a recommendation to the
Commission. That meeting took place on April 23, 2001 and was followed by a special
meeting of the Arts Commission. The following summarizes the action taken at the April
23, 2001 special meeting of the Santa Monica Arts Commission:
A. Masterleased Hangar, 3026 Airport Avenue – Santa Monica Fine Art
Studios
A motion was made to grandparent all current Santa Monica Fine Art
Studio (SMFAS) artists into the new SMFAS programs at 3026 Airport
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Avenue without a means test provided that new program opportunities be
restricted to artists meeting means test. The motion passed.
A motion was made to implement a means test for future tenants of the
SMFAS based on the Housing and Urban Development (HUD) Schedule
using 175% of the Los Angeles-Long Beach SMSA Median Family
Income to be applied only at the beginning of occupancy. The motion
passed. (See Attachment A)
A motion was made that the means test be applied at the time of their
initial tenancy to all non-grandparented tenants of SMFAS and future
tenants until 50% of all participants have qualified income levels. The
motion passed.
A motion was made that SMFAS give priority to artists who live and/or
work in Santa Monica or provide evidence of being displaced from
previous studio spaces in Santa Monica. The motion passed.
B. Other Artist Day-Studios at Airport Operated by Economic
Development Division
A motion was made that a means test of 200% of the HUD schedule of
Los Angeles-Long Beach SMSA Median Family Income be applied at the
beginning of tenancy for all new artists leasing spaces at the Santa
Monica Airport directly from the City and that priority be given to artists
who live and/or work in Santa Monica or provide evidence of being
displaced from previous studio spaces in Santa Monica. The motion
passed. (See Attachment A)
The motions adopted by the Arts Commission endeavor to make City subsidized spaces at
the Santa Monica Airport available to local artists and artists of moderate means. At the
same time, the limits on income suggested by the Commission allow for a wide range of
artists to make use of these facilities. The Commission raised the income levels from the
previous recommendations for two reasons; first, to account for the significant cost of art
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materials and production without using a net income approach that is difficult to audit; and
second, to evaluate gross household income rather than the individual income of the artist
which prevents the manipulation of the rules by submitting individual tax returns. The
income levels have been set higher for tenants in the City-operated spaces due to the fact
that those artists will be required to pay directly for insurance, utilities, improvements,
maintenance and other costs of tenancy. In contrast, in the SMFAS space, utilities and
other costs of tenancy will be paid by the master lease holder.
Budget/Financial Impact
These recommendations contain no financial impact on the City.
Recommendations:
The Santa Monica Arts Commission respectfully requests that the City Council adopt the
means testing as recommended by the Commission and direct staff to incorporate these
recommendations into the lease with Santa Monica Fine Arts Studios and apply these
conditions to applicants for City-managed airport day-studio spaces.
Prepared by: Barbara Stinchfield, Director, Community and Cultural Services
Jeff Mathieu, Director, Resource Management
Maria Luisa de Herrera, Cultural Affairs Manager
Mark Richter, Economic Development Manager
Hamp Simmons, Cultural Affairs Coordinator
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