sr-092209-8aCity Council Meeting: Date
Agenda Item: 8- ~}
To: Mayor and City Council
From: Barbara Stinchfield, Director, Community and Cultural Services
Subject: Authorization for City Manager to Negotiate aPublic/Private Partnership
Agreement with the Nederlander Organization for the Use and
Programming of the Santa Monica Civic Auditorium and Approval of
Negotiating Parameters
Recommended Action
Staff recommends that the City Council:
1. authorize the City Manager to negotiate an agreement with the Nederlander
Organization for the use and programming of the Civic Auditorium
2. approve key negotiating parameters for this agreement
Executive Summary
Both the Civic Center Specific Plan (CCSP) and Creative Capital place a high priority on
renovation and upgrades to the landmark Santa Monica Civic Auditorium. Creative
Capital made it clear that the use and programming of the Civic Auditorium should align
with the community's vision for its use, and that options for revenue generation and
private partnerships needed to be weighed against an anticipated on-going public
subsidy. In exploring ways to renovate and reposition the Civic Auditorium as a vital
cultural hub within the Civic Center area, the City issued a Request for Qualifications
(RFQ) for potential partners. This report requests authorization for the City Manager to
negotiate an agreement with the Nederlander Organization and direction from City
Council regarding key negotiating parameters.
Background
The Civic Auditorium was designated a City Landmark by the Landmarks Commission
on November 12, 2001. That decision was upheld by the City Council during its April 9,
2002 meeting.
In June 2005, the City of Santa Monica adopted an update the 1993 Civic Center
Specific Plan C( CSP) setting forth planning policies and land use and development
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regulations fora 67 acre area bounded by Pico Boulevard on the south, Fourth Street
on the east, Ocean Avenue on the west and Colorado Avenue on the north.
Creative Capital, approved by City Council on February 27, 2007, committed the City to
a cultural use of the Civic Auditorium in line with the community's vision for the facility.
That vision includes the need for significant upgrades to the building and its technical
equipment. Creative Capital suggests that the recommendations regarding the Civic
Auditorium in the CCSP be revisited to better accommodate the cultural uses
envisioned by the community.
During the summer of 2008, capitalizing on the potential inherent in concurrent
development, staff from the City, the Santa Monica Malibu School District and Santa
Monica College worked collaboratively to explore possible shared use opportunities
between the Civic Auditorium and Samohi campuses.
In March 2009 City Council authorized the issuance of an RFQ to solicit qualifications
from non-profit and/or for profit entities interested in participating in a public/private
partnership for the use and programming of the Santa Monica Civic Auditorium (staff
report). Further, Council approved a selection process and review criteria for
responses, which included demonstrated experience and degree of innovation, abilities
on recent comparable projects, financial capacity and understanding of the needs of this
project. In approving issuance of the RFQ it was anticipated that staff would return to
City Council to request authorization to negotiate with one or more firm(s).
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Discussion
RFQ Selection Process
The RFQ, issued in June 2009, was distributed widely and advertised in both the local
press and in trade publications. Due to demand from interested parties, four tours of
the facility were scheduled and staff issued three addenda in response to inquiries.
Despite this high level of interest, only one organization submitted a response by the
deadline.
A staff review committee met in early August and were impressed with the depth and
thoughtfulness of the Nederlander Organization's submittal. Committee members cited
their years of experience, financial capacity, expertise in working with historic facilities
and the public sector; as well as their national reputation for the quality and breadth of
their product, from Broadway productions to concerts. For all of these reasons staff felt
the Nederlander Organization represents an excellent potential partner for the City.
The Nederlander Organization, established almost 100 years ago, is one of America's
premier entertainment companies. It is known for its ability to secure top headline
entertainment based on long-term industry relationships, quality presentations and
financial capability. Nederlander is one of the primary theatrical producers and theater
operators on Broadway, whose production list includes, among countless others: Lion
King, Wicked, Rent, Avenue O, Stomp, Riverdance, Evita and Chicago. They also have
a major concert programming division which works with a broad array of talent,
including such superstars as Sting, Bruce Springsteen, Bob Dylan and Tony Bennett.
Further, they have extensive experience working with municipalities and other
government entities. In California they have agreements to run or program the Greek
Theater in Los Angeles, the Santa Barbara Bowl, the Grove in Anaheim, the San Diego
Civic Theater and the Center for the Performing Arts in San Jose.
Along with their statement of qualifications the Nederlander Organization submitted a
conceptual approach to programming that seems particularly well aligned to community
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priorities. They are proposing an exciting mix of Broadway shows, family entertainment,
concerts and special events, along with some innovative community partnerships. For
example a `Pops' concert series with the Santa Monica Symphony or a musical theater
school for young people in partnership with local schools. Additional details on their
conceptual approach can be found in Attachment A.
Negotiating Parameters
If the City Council authorizes the City Manager to move forward, staff is seeking
guidance from Council on the focus of negotiation and public benefits. Recommended
parameters include:
• Ensure that the programming and operation of the Civic Auditorium are
financially sustainable over time-
• Maximize the number and diversity of high quality cultural/entertainment options
available at the Civic Auditorium
• Ensure that sufficient capital investment will be made to the facility to support its
proposed use and ensure that adequate reserves are projected to maintain the
facility over time
• Ensure that, as a result of this agreement, existing staff at the Civic Auditorium
maintain employment comparable to their current employment status
• Ensure that the Civic Auditorium will remain available for community use
• Ensure that any advertising or sponsorship arrangements are compatible with
City precedent and policies
• Effectively manage the flow of people and uses in the Civic Center area
Financial Impacts & Budget Actions
The five year forecast for the Civic Auditorium Fund underscores the need for a new
approach to the use and programming of the Civic Auditorium. The Civic Auditorium
requires an ongoing annual General Fund subsidy of $1.0 million in FY2009-10 and
ranges between $1.1 to 1.3 million in FY2010-11 through FY2013-14: This baseline
forecast does not include major infrastructure improvements, which would increase the
subsidy. Five Year Forecast
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The recommendations in this staff report have no immediate budgetary impacts;
however future. budgetary impacts will likely result from negotiations with the
Nederlander Organization. The terms of the agreement would likely require the City to
contribute to the cost of improvements and upgrades to the facility. This past June, in
adopting a plan for the future use of RDA funds, City Council included $25 Million for
Civic Auditorium improvements. All of these impacts would be evaluated and presented
to Council prior to final commitments.
Prepared by: Jessica Cusick, Cultural Affairs Manager
Approved: Forwarded to Council:
tld c~ti-a~~
Barbara Stinchfield P. amont v
Director, Community & Cultural Services ity Manager
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Attachment A
NEDERLANDER ORGANIZATION
Request for Qualifications for the Santa Monica Civic Auditorium
In their response to the Request for Qualifications for the Santa Monica Civic Auditorium
the Nederlander Organization outlined a conceptual approach to partnering with the City
to program and activate the Civic Auditorium that seems particularly well aligned to
community priorities. They emphasized their desire to provide a full array of options at
the Civic Auditorium, from Broadway productions to rock and roll, from cutting-edge
theater to family fare, from opera to world music. They highlighted their existing
resources and expertise, as well as their commitment to developing local relationships
and partnerships. Some highlights of their proposed approach are listed below.
Theatrical Presentations:
The Nederlander Organization proposes to bring top theatrical events to the Civic,
making it part of their regional network of exclusive theaters. They envision combining
national touring productions along with the cutting-edge theater and family
entertainment offering a full range of top quality entertainment.
With their experience in working in historic venues, such as the Pantages, Nederlander
understands the Civic's landmark status and views the facility as a historic treasure.
The key renovations to the facility that they envision, such as seating, acoustics, lighting
and patron amenities, would be developed with sensitivity. Any renovation would
combine respect for 1Nelton Becket's design as well as concern for issues of
sustainability..
Concert Programming:
The Nederlander Organization also envisions programming top musical talent in every
genre -from developing local artists to perennial favorites to superstars, ensuring a
diverse and vibrant concert schedule. They see the Civic as being a perfect fit for their
portfolio of venues in California. They also stated their interest in pursuing an alliance
with the Santa Monica Symphony to develop a `Pops' concert series featuring the
Symphony playing with artists who enjoy performing with orchestras, from Tony Bennett
to Death Cab for Cutie.
Community Outreach and Cultural Programming:
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The Nederlander Organization envisions working with the City to develop outreach
programs and community partnerships that will provide the community unique access to
the world of theater production and concert programming. One possibility would be to
develop a musical theater school, another would be to work with existing theater
programs and offer internships with the Civic related to staging, sound, lighting and
other key operational areas, yet a third involves offering Master Classes conducted by
visiting actors, singers and dancers who are touring with productions.
They also stated their interest in working with Samohi and other entities to create a
coordinated approach to booking entertainment in the Civic Center area. As well as
their understanding of the need to reserve the Civic Auditorium for certain key
community uses such as Stairway to the Stars or the Santa Monica Symphony.
Special Events/Rentals
The Nederlander Organization envisions working with the Civic's current operations
team to enhance the booking of special events and rentals, adding movie premieres as
well as more corporate and convention related events.
Reference Contract No.
9124 (CCS).