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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 1 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 2 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. `` c~ ~~; ti p,~.cc~r ~~ d ..~ SA ti yc '. 4~~ ~ yf" rL: 5~° y / N/ / ~ ~ ~ ~~ Psi ~ // oa / o~ ~o. Q /. k) ~~ ~, ~ ~, 3~ ,~` _ Nc l„ 4 ~!OFrN tiU ScA~ QcE LIdRANY itgacH' 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 3 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 4 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. 5 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. 6 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: o/ zCc~l.~-cam.-~ Barbara Stinchfield Director, Community & Cultural Services Forwarded to Council: afnont Ewell Manager 7