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SR-410-005 (2) . '-I/O-OPS- . ID-B DEe 8 1981 PRC:GM:mh (12/2) Council Meeting: 12/08/87 Santa Monica, California TO: Mayor and City council FROM: pier Restoration Corporation SUBJECT: Recommendation to Approve the Santa Monica pier Development Program and Adopt the Santa Monica pier Design Guidelines Introduction This report transmits the pier Restoration Corporation IS (PRC) Santa Monica pier Development Program and recommends that the city Council approve the program and adopt the Santa Monica Pier Design Guidelines. These documents are included as Attachment A and Attachment B, respectively. The report also recommends that Council direct City staff to develop a financing plan to implement Phase 1 of the program which requires an expenditure of $7 million for platform strengthening and repairs, upgrading of utilities and public amenities. Additionally, the report recommends that Council direct the city Attorney to amend the Sign Ordinance to provide for the standards for signs in the Santa Monica pier Design Guidelines to take precedence over conflicting provisions in the sign ordinance in recognition of the unique environment of the Santa Monica Pier. Background This development program is the result of more than six years of pUblic planning and analysis for the pier's restoration. In 1981, the City Council appointed the pier Restoration and Development Task Force which initiated a broad-based community - 1 - lQ~~7 . . discussion about the future of the Pier. The Task Force, in cooperation with the state Coastal Conservancy, sponsored three widely attended public workshops which resulted in a set of guidelines for revitalizing the Pier. The Pier Guidelines were adopted by the City council in september, 1982, and the objectives of the Guidelines form the basis of the PRC's development program. In the wake of the severe winter storms of 1983, which destroyed over 100,000 square feet of the Pier, the city was faced with both the costly reconstruction of portions of the pier as well as proceeding with the restoration plan as set forth in the Pier Guidelines. In November, 1983, the City Council established the pier Restoration Corporation, a non-prOfit pUblic benefit corporation, to oversee the reconstruction and restoration of the Pier. The Council appointed a Board of Directors with a broad range of community and business interests to provide leadership in directing the complex process. In September, 1985, the City Council approved a Services Agreement with the PRC which delineated the responsibilities of the PRC and the City with respect to the management of the Pier. In addition to the ongoing responsibilities of managing and negotiating existing and future leases, and promoting the Pier, the primary responsibility of the PRC has been the preparation of a development plan for the Pier'S restoration which provides for an economically viable formulation of the pier Guidelines. The City retains the responsibility for Pier maintenance, security, parking, and capital construction projects. - 2 - . . Highlights of the Development Program The following summary highlights the major elements of the PRe's development program which is fully described in the attached documents. o The total development program includes approximately 150,000 square feet of commercial area which is an increase of 87,500 square feet over the current 62,000 square feet of commercial area. o The development will proceed in two phases: Phase 1 will total about 134,000 square feet and will be implemented over the next three years. Phase 2 will add another 16,000 square feet and will be initiated after Phase 1 becomes operational and the City and PRC determine how best to structure its implementation. o A tenant mix, offering a diversity of products and services to a broad range of incomes, ages, and lifestyles, will include approximately 40% amusements and entertainment uses, 40% restaurants and fast food operations, and 20% retail businesses. o Buildings designated for retention are the Carousel, Billiard Building, Boathouse, Playland Arcade, and Sinbad's. All other structures are designated for demolition since they are in poor condition and are not historically or architecturally significant. - 3 - . . o The program provides an opportunity for existing tenants to participate which will vary depending on their operation, current location and lease terms. o Design guidelines have been prepared to guide the restoration process and to encourage creative solutions which are interpretations of important elements of the pier's history rather than strict reproductions of the past. o The full program total of $26.8 million will be financed by a pUblic/private effort with the city's costs for Phase 1 projected at $7 million and the private investment projected at $13.6 million. The $7 million represents required costs for reconstruction and repairing of the Pier platform, upgrading of utilities and public amenities. o The Phase 1 program will generate a total financial benefit of approximately $1.3 million by FY'92-93, the projected year of stabilization. Parking and Circulation In keeping with a central objective of the pier Guidelines to remove parking from the pier, the development program contemplates accomplishing this in two phases. During Phase 1, approximately 125 spaces will remain on the Pier; interim off-site parking will be provided with approximately 200 surface spaces on the Deauville site as well as additional spaces - 4 - . . provided through reconfiguration of the 710-space beach lot north of the pier. City staff is moving forward with planning for a parking structure which would provide the required parking for the full development program. The economic feasibility and land use issues related to the site, south of the Pier, which was recommended in the 1985 Pier Parking and Traffic Circulation study, are currently under study. A plan for the parking structure is expected to be presented by ci ty staff to the Council later this year. Upon completion of the 550 to 650 space parking structure, the remainder of cars may be removed from the Pier, at which time Phase 2 development might proceed. Pier Reconstruction The reconstruction of the storm-damaged portions of the pier will proceed concurrently with the commercial development. The reconstruction of portions of Newcomb pier (termed the Pleasure Pier in the PRC report) is now underway; 45,000 square feet at the southwest corner of the pier will be rebuilt by the Summer of 1988. The design of the reconstruction of the west end of the Municipal Pier is expected to be completed by Spring 1988 with construction planned to begin after the summer season. The 400 lineal foot extension is expected to be completed by Summer 1989. The City'S share of the Newcomb reconstruction costs have already been appropriated; the $1.4 million city share of the Municipal pier reconstruction is included in the $7 million Phase 1 cost. The reconstruction of the breakwater is planned for Phase 2 and will proceed once funding has been secured. - 5 - . . Review Process The PRC I S Development Program and Design Guidelines have been thoroughly reviewed by city staff. city staff has been involved particularly in developing the costs and scope of work which will be the city's responsibility. The Landmarks commission approved the Design Guidelines on November 12, 1987. The Design Guidelines were certified by both the Architectural Review Board (November 4, 1987) and the Planning Commission (November 16, 1987) . PRC and city staff have met informally with Coastal Commission staff who have found the plan to be consistent with the Local Coastal Plan. Timeline and Next steps Upon City Council approval of the development program, the PRC will issue Request for proposals (RFP) for the development of Phase 1. The areas include the following: a. A 4, OOO-square foot portion of the Billiard Building for an entertainment or retail operation. b. The 6,400-square foot building known as Sinbad's for an entertainment and eating establishment. c. A Central Plaza Area containing 40,000 square feet of newly constructed restaurants, fast food operations, retail and entertainment uses. d. A Fun Zone area containing 40,000 square feet of amusement games, rides and other ancillary uses. - 6 - . . e. A 4,OOO-square foot area in Carousel Park for retail or restaurant use. A detailed timeline is included in the development report. Phase 1 is projected to be completed by May, 1991. According to the terms of the services Agreement by and between the city and the PRC, the PRC is authorized to prepare and negotiate all leases as set forth in an approved development plan. The final leases are submitted to the city Manager for approval and execution. Budget/Fiscal Impact city staff will return to Council concurrent with the Mid-year Budget Review with a financing plan for full implementation of Phase 1. Recommended Action pier Restoration corporation respectfully recommends that the city Council: 1. Approve the Santa Monica pier Development Program and adopt the santa Monica pier Design Guidelines. 2. Direct City staff to develop a financing plan to implement Phase 1 of the development program and return to Council for approval concurrent with the Mid-year Budget Review. 3. Direct the city Attorney to prepare an ordinance amending the Sign Ordinance portion of the Zoning Code to provide for the standards for signs in the adopted santa Monica pier Design - 7 - , .. . . Guidelines to take precedence over conflicting provisions in the Sign Ordinance in recognition of the unique environment of the Santa Monica Pier. Prepared by: Gail Harkens, Executive Director, PRe Susan MUllin, Leasing Manager, PRe Attachments: "An santa Monica pier Development Program liB" santa Monica pier Design Guidelines - 8 -