SR-12-11-2007-8C~..r
CITy of City Council Report
Santa Monica
DRAFT City Council Meeting: December 11, 2007
Agenda Item:
To: Mayor and City Council
From: Barbara Stinchfield, Director of Community and Cultural Services
Subject: Selection of Santa Monica Conservancy to relocate the Shotgun House to
city-owned property at Norman Place and Second Street for use as a
Preservation Resource Center; approve major lease terms and authorize
Negotiation and Execution of a Lease Agreement with the Santa Monica
Conservancy
Recommended Action
Staff recommends that the City Council:
1) select the Santa Monica Conservancy to relocate, rehabilitate and operate the.
Shotgun House as Preservation Resource Center; and
2) approve major terms fora 20 year lease agreement including waiving application
and building permit fees and .authorize the City Manager to negotiate and
execute the (ease agreement with the Santa Monica Conservancy.
Executive Summary
In August 2007, at the direction of the City Council, City staff issued. a Request for
Proposals to non-profit organizations for the relocation, rehabilitation and operation of
the Shotgun House (House), acity-owned bungalow that is currently being stored at
1601 Olympic Boulevard. One proposal was received from the Santa Monica
Conservancy (Conservancy), proposing to use the House as a Preservation Resource
Center (Center). The Center would be open to the public during regular prescribed
hours and by appointment as well as for special events. Funds are included in the
capital improvement department budget for certain site improvements.. There are no
other fiscal impacts to the City associated with this item.
Discussion
Background and Prior Council Actions
The Shotgun House was originally located on private property at 2712 Second Street in
Ocean Park. Efforts to preserve the House began in 1998 when the owner of the
subject property filed an application for demolition and the Santa Monica Landmarks
Commission designated the House a City Landmark. The designation allowed for
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demolition of the house within 60 days of the hearing date, with the requirement that the
applicant submit photographs and floor plans documenting the structure and provide
evidence to prove attempts were made to relocate the house. This determination was
appealed by both the Ocean Park Community Organization (OPCO) and the Church in
Ocean Park. On February 16, 1999, the City Council upheld the Landmarks
Commission designation and directed staff to prepare an analysis in accordance with
the California Environmental Quality Act (CEQA) to determine if demolition would create
a significant adverse impact on an historic resource. On September 26, 2000, the City
Council certified the Final Environmental Impact Report and adopted a Statement of
Overriding Considerations allowing for the demolition of the structure
Subsequently, the House was purchased by the Ocean Park Community Organization
(OPCO) in an effort to save it from immediate demolition. In order to provide OPCO with
sufficient time to identify a site for permanent relocation, explore reuse alternatives and
raise funds for the relocation and rehabilitation efforts, the City administratively
approved its temporary relocation to the Santa Monica Airport in July 2002. Despite its
best efforts, OPCO's Shotgun House Relocation Committee was unable to finalize
these tasks. Additionally, OPCO became a defunct non-profit organization.
On November 1, 2005, the City Council authorized the temporary relocation of the
House to City-owned property at 1401 Olympic Boulevard in order to make way for
Airport Park construction. Since December 2005, the House has been stored at this
site. On December 20, 2006, the City Council directed staff to pursue ownership of the
House; identify an appropriate site on designated City property for the permanent
placement of the House in Ocean Park; initiate a process to select a nonprofit
organization to raise funds and potentially lease the House for a public benefit purpose;
and create a lease agreement that clearly delineates responsibilities of both lessor and
lessee.
On June 26, 2007, the City Council approved the Norman Place and Second Street site
as the permanent location for the House; authorized staff to issue an RFP to select a
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non-profit organization to relocate, rehabilitate and lease the House from the City for
public benefit purposes. Additionally the City Council authorized the City to complete
site improvements in the amount not to exceed $84,000 to ready the site for acceptance
of the House.
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Approved relocation site at 2" ° Street & Norman Place
On August 20, 2007, City staff issued a Request for Proposal (RFP) for the House. The
RFP was sent to 76 non-profit organizations that currently receive City grant funding. It
was also posted on the City's website and a display ad was placed in the Santa Monica
Daily Press. One proposal from the Santa Monica Conservancy was received at the
close of the RFP process. The proposal was reviewed by a staff committee comprised
of representatives from City Planning, Economic Development, Community and Cultural
Services and the Library.
Selection of the Santa Monica Conservancy
The committee unanimously supports the selection of the Conservancy to relocate,
rehabilitate and operate the House. The proposal confirms the organization's non-profit
status; demonstrates a solid understanding of the work involved to relocate and
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rehabilitate the House including identification of team members with experience and
capacity in historic preservation; and demonstrates a public benefit by proposing to use
the House as a Preservation Resource Center and the headquarters of the
Conservancy. Letters of support from the Santa Monica Malibu Unified School District,
the California Heritage Museum, the Ocean Park Association and the Juneteenth
Celebration Committee were included with the proposal.
Proposed Hours of Operation, Planned Activities and Staffing
The Center is proposed to be open 12 hours/week on a regular basis with additional
hours by appointment for school groups and others interested in local community
history. The House would also be used for small workshops related to training in
construction and rehabilitation of historic buildings and the Center staff would assist
community members with answers to preservation questions. A database of material
suppliers, preservation consultants, architects, artisans and engineers with experience
in preservation work is proposed to be made available for public use. The Center would
also serve as the site for regular Conservancy Board and committee meetings. The
Conservancy proposes to store its materials at the Center. Additionally, the Center
would house a permanent exhibit documenting the history of the House, its role in Santa
Monica and the history of the shotgun style house in general. The Conservancy
expects to produce a video documenting the House relocation and rehabilitation efforts.
Staffing of the Center would initially consist of volunteers until a paid staff person is
hired. The success the Conservancy has had with its Downtown Walking Tour program
provides an indication of its ability to identify committed volunteers on an ongoing basis.
The Conservancy proposes to promote the Center through local media, the
Conservancy newsletter and website as well as through links to other websites that
focus on preservation, tourism and history.
Estimated Relocation Rehabilitation and Operation Costs
The Conservancy estimates that the cost for relocation and rehabilitation will range from
$260,000 to $278,000 depending on whether a small addition to accommodate a
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restroom can be incorporated on site. Additionally, the submitted budget identifies
services that may be provided on a pro-bono basis which would reduce the estimated
cost. The proposal demonstrates the capacity of the Santa Monica Conservancy to
raise the necessary funds to relocate and rehabilitate the house including approximately
$20,000 which have already been raised and expended for the Shotgun House project.
These funds covered moving the house twice, termite inspection and hiring a
preservation professional to prepare an historic assessment of the house and these
activities were performed prior to ownership of the house being clarified.
The proposed timeline reflects completion of a fundraising campaign within 30 months,
with the first 9 months devoted to developing a financing feasibility study and with
relocation and rehabilitation commencing during the last six months of the campaign.
The proposal identifies a variety of possible funding sources including but not limited to
the Conservancy membership, local businesses, national associations of builders and
building suppliers and foundations which support community and cultural institutions.
The proposal includes an outline of estimated ongoing operating costs of approximately
$10,000 annually. The Conservancy has indicated it will be able to support ongoing
maintenance needs through fundraising and, if needed, with support from its current
fund balance.
Proposed Lease Terms
The following summarizes recommended lease terms for the relocation, rehabilitation
and operation of the House by the Santa Monica Conservancy.
o The Conservancy will be solely responsible for funding and implementing the
relocation and rehabilitation of the House including utilities, foundations, exterior
and interior walls, roofing, mechanical, electrical and plumbing systems, lighting,
floor finishes, equipment and furnishings and any other improvements necessary
to operate the facility as a Preservation Resource Center.
o The Conservancy will be required to secure all necessary regulatory permits for
the relocation and rehabilitation of the House including but not limited to
discretionary approvals from the Planning Commission and Landmarks
Commission, Coastal Commission approvals, building permits and housemoving
permits. City staff will provide technical support to the extent possible.
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o The Conservancy has requested that the City waive application and building
permit fees for this project in recognition of the public benefits that the project will
provide. Staff feels that this is a reasonable request and would recommend that it
be incorporated into the lease terms.
o The City will fund and complete site improvements for the Second and Norman
Place site including reconfiguration of the lot to accommodate a new parking
layout, landscaping, replacement of the existing retaining wall and construction of
a trash enclosure. The City will work closely with the Conservancy to schedule
the site improvements at such time as the City determines the Conservancy has
adequate funds (including funds received and funding commitments) to fully
implement the proposed relocation and rehabilitation. The City will complete its
obligations in advance of the House relocation.
o The Conservancy will be required to pay rent annually in the amount of $1 (one
dollar);
o The House is to be used by the Conservancy as a Preservation Resource
Center, providing services to the community including use of the building's
rehabilitation as a learning tool.
o Within 9 months of lease execution, the Conservancy shall prepare and submit to
the City a fundraising feasibility plan for the project.
o Contingent upon the Conservancy raising the necessary funds for the building
relocation and rehabilitation, the House will be made available for the
Conservancy's exclusive use for a term of 20 years.
o Within 30 months of lease execution, the Conservancy will have identified
sufficient funds to relocate and rehabilitate the House.
o The Conservancy will be solely responsible for covering all operating costs
during the term of the lease including ongoing maintenance expenses (such as
utilities, insurance, preventative maintenance).
o The Conservancy will provide all necessary staffing to sustain its operations and
will not be dependent upon City staff for custodial, security, clerical,
equipment/facility maintenance, landscaping within building setback areas, event
set up, administrative or community support services. A minimum of two months
prior to opening the Center, the Conservancy shall submit to the City a facilities
operations plan. outlining basic staffing levels and any contracted services to be
used for maintenance and operations as well as a preventative maintenance
program.
o The City will maintain the public parking lot.
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o The Conservancy will sustain the following minimum service standards in order
to insure the community receives the maximum public benefit from this
agreement. The Conservancy will:
• Maintain its non-profit status
Be essentially educational in nature
• Open the Center to the general public at regular hours with a minimum of
600 hours per year and by appointment.
Alternatives
If the Council does not approve the selection of the Conservancy for the House as
proposed, it may wish to consider selling the building to a private entity for a private use.
Financial Impacts and Budget Actions
The City Council previously appropriated $84,000 in account M010876.589000 for site
improvements. Revenue impacts associated with waiving application and building
permit fees are minimal. There is no necessary budget action associated with this
recommendation.
Prepared by:
Karen Ginsberg, Assistant Director, Community & Cultural Services
Approved:
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Barbara Stinchfield
Director, Community & Cultural Services
Forwarded to Council:
afnont Ewell
Manager
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