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Santa Monica
City Council Meeting: July 8, 2008
Agenda Item: i-~
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Cinema planning and development consulting services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an amendment to the agreement with IJM Enterprises for consulting services
related to the potential redevelopment of cinemas in the Bayside District, in an amount
not-to-exceed $50,000, for a new total of $120,000.
Executive Summary
In its review of the appropriate mix of retail, restaurant and entertainment uses on the
Promenade and in the Bayside District, the Promenade Uses Task Force recognized
that redevelopment of the Bayside District cinemas is critical to the long-term health and
vitality of the District. In .its review of the Task Force recommendations, the City Council
identified cinema redevelopment as a top priority for the area. Following Council
review, the City hired IJM. Enterprises to provide expert advice regarding cinema
planning and development. With IJM's assistance, in January 2008, the City distributed
an RFP soliciting proposals for the development of a mixed-use cinema development
project. Staff is seeking an amendment to IJM's contract, in an amount not-to-exceed
$50,000 to assist with reviewing the submitted proposals, and, if appropriate, assisting
with. negotiations with the selected developer.
Background
The Promenade Uses Task Force was established by the City Council in 2001 to
understand how best to enhance the vitality and maintain the proper balance of uses on
the Third Street Promenade and in the Bayside District. The Task Force studied the
then-current mix of retail, restaurant, and entertainment uses and concluded that the
existing cinemas in the District. are outdated and likely will become less competitive in
the near future unless they can provide appropriate amenities such as stadium seating,
state-of-the-art technology, and other amenities that new theaters offer.
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Entertainment, in addition to retail and restaurants uses, is seen as a key element of the
Promenade's success and it is viewed as a draw to help support other uses. The
current cinema sites are generally too small to provide for these modern amenities,
however, encouraging cinema development outside of the Third Street Promenade
could exparid the vitality of the District while maintaining this critical element in the mix
of uses.
Discussion
Staff executed a professional services agreement contract with IJM Enterprises on
March 12, 2004. Staff proposes to modify the professional services agreement by an
amount. not-to-exceed $50,000, for a total maximum compensation not-to-exceed
$120,000.
The City; with the assistance of ,IJM Enterprises, issued an RFP in January 2008
soliciting proposals for the development of a mixed-use cinema project on the 30,000-
square foot parcel of Parking Structure No. 3 located at 1320 4th Street. It is anticipated
that the mixed-use development project will include state-of-the-art cinema, ground-floor
retail and may include subterranean parking. An amendment to the existing contract is
proposed to allow IJM Enterprises to continue to assist the City with review of
proposals, and, if appropriate, negotiations with the selected developer.
The proposed development of a mixed-use cinema project on the site of Parking
Structure No. 3 would address the Promenade Uses Task Force objective to support
the upgrading of cinemas in Downtown Santa Monica to ensure- their continued
operational viability to serve residents and to attract patrons to the district:
Previous Council Actions
In considering the recommendations of the Promenade Uses Task Force, Council
identified upgraded cinemas as a top priority for the Downtown.
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On November 13, 2007, the City Council authorized staff to solicit proposals for a new
cinema development at the site of Parking Structure No. 3, located at 1320 4th Street
that would include ground floor retail and subterranean parking.
Contractor/Consultant Selection
Given the specialized nature of the theater industry, IJM Enterprises was selected in
2004 based upon its unique experience. Ira Mitchell, principal of IJM Enterprises, has
over 30 years experience in cinema and real estate development.
Financial Impacts & Budget Actions
Funds for the contract amendment are available in account no. 01268.555060.
Prepared by:
Erika Cavicante; Senior Administrative Analyst
Approved:
Forwarded to Council:
Andy Agle, Director U
Housing and Economic Development
~rSiont Ewell
Manager
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Reference Contract No.
8943 (CCS).