SR-410-002 (6)
Council Meeting: February 22, 2005 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Authorization to execute a contract with Moore Iacofano Goltsman, Inc.
and Keyser Marston Associates, Inc. to serve as consultants for the
proposed redevelopment of Santa Monica Place Mall and establish a
revenue account and appropriate funds for the contracts
Introduction
This report recommends that the City Council authorize the City Manager to execute
two professional services contracts related to the redevelopment of Santa Monica
Place: one with Moore Iacofano Goltsman Inc. (MIG) to design, implement, and
facilitate a community outreach program; and the second contract with Keyser Marston
Associates, Inc. (KMA) to perform financial analysis of the proposed project. It is
estimated the total budget for MIG and KMA will range between $150,000 to $250,000,
and all costs will be reimbursed to the City by Macerich Company, owners of Santa
Monica Place.
Background
On January 25, 2005, Council considered a proposal to enter into a development
agreement with Macerich Company to redevelop Santa Monica Place Mall. To help
ensure that meaningful dialogue and maximum public benefit are gained from the
proposed project, City Council directed staff to engage the necessary expertise to assist
the City in negotiating with Macerich Company to redevelop Santa Monica Place. One
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consultant would help design, implement and facilitate a comprehensive outreach
program that focuses on informing and seeking feedback from the community regarding
issues and constraints related to redevelopment of the mall. The consultant would
serve as a neutral facilitator of the public outreach and input process.
The second consultant would serve as the City’s financial consultant performing
extensive analyses, including but not limited to, evaluating Macerich’s pro forma;
performing financial feasibility analyses and public benefit analyses of alternative
concepts; preparing fiscal impact studies; analyzing the financial impact of housing,
affordable housing and other mixed uses within the project; assisting in real estate and
development agreement negotiations; preparing reports and analyses required for
approval by the Redevelopment Agency, and conducting retail market segmentation
and sales transfer analyses.
Consultant Selection
Twelve firms were contacted (seven communications and five financial) and five were
interviewed (two communications and three financial). Staff and representatives from
Macerich Company interviewed two communications teams and recommend that the
City retain MIG to serve as the facilitator.
Daniel Iacofano, MIG founding principal will lead the MIG team. He brings over 25
years of experience and expertise in public participation, outreach and facilitation and is
recognized locally, nationally and internationally as an expert in the fields of facilitation
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and community relations and outreach, specifically for urban and transportation
planning and design projects. He served as a facilitator in Santa Monica in the 1990s
for creation of the original Civic Center Specific Plan.
Staff, alone, interviewed three economic consultant teams and recommends that the
City retain KMA to serve as the City’s financial consultant. The recommendation is
based on KMA’s extensive experience with similar kinds of complex projects, expertise
and availability of key project personnel. KMA’s team will consist of principals Cal Hollis,
Kathe Head and Debbie Kern; and a sub-consultant, Jill Bensley, with JB Research
Company.
Cal Hollis will lead the KMA team. He brings over 20 years of experience in real estate
analysis, strategic financial planning, and implementation Collectively, KMA’s team has
over 75 years of experience in real estate, financial, economic, and fiscal analysis,
affordable housing production, and retail development. KMA has worked on many
notable projects including the Paseo Colorado in Pasadena, a project which mirrors
Santa Monica Place in many ways, including its scale and complexity, diversity of
ownership and community participation needs.
Earlier this month, staff and representatives from Macerich met preliminarily with MIG to
plan the public outreach strategy. Staff will provide a report to Council by the end of
February outlining the public participation strategy.
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Budget/Financial Impact
The actual amount for the two consultant contracts is estimated between $150,000 and
$250,000 but will not be finalized until the public outreach scope of work is determined,
and there is a better understanding of the economic analysis needs. The City’s cost for
the two consultants will be fully paid in advance by Macerich Company as applicant. An
appropriation not to exceed $250,000 is needed at account P0400583.589000 and a
revenue budget needs to be established at account 04266.407770.
Recommendation
It is recommended that the City Council:
A. Authorize the City Manager to negotiate and execute the following: (1) a
contract with MIG, to design, implement, and facilitate a comprehensive community
outreach program; (2) a contract with KMA, to serve as the City’s financial consultant;
and (3) a reimbursement contract with Macerich Company to fully cover all costs related
to the public outreach and economic analysis effort; and,
B. Approve the appropriation and budget changes identified above.
Reference Contract No. 8450 (CCS) (Moore Iacofano); Contract No. 8451 (CCS)
(Keyser Marston); Contract No. 8452 (CCS) (Macerich).
Prepared by: Gordon R. Anderson, Assistant City Manager
Deleted:
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Steve Stark, Finance Director
Suzanne Frick, Director of Planning and Community Development
Andy Agle, Deputy Director, PCD
Jeff Mathieu, Resource Management Director
Miriam Mack, Economic Development Manager
Nia Tang, Housing and Redevelopment Senior Administrative Analyst
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