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sr-092810-13g1- September 28, 2010 Council Meeting: Santa Monica, California CITY CLERK'S OFFICE -MEMORANDUM To: City Council From: Councilmember McKeown Date: September 28, 2010 13-G: Request of Councilmember McKeown that the Council authorise the City Manager to amend the existing agreement with the Santa Monica Playhouse to better address current needs, by releasing $30,000 of $75,000 in already-allocated funding to provide rent relief, spur fundraising through a matching grant, and establish along-term plan for retention of this valued community cultural resource. On June 18, 2002, in approving the City's annual budget for fiscal year 2002-2003, the City Council allocated $75,000 from its discretionary fund to help the Santa Monica Playhouse to purchase the downtown facility from which they had served the City for some forty years. This need had been identified in January of 2002, and the Council directed staff to evaluate the situation and return with options (see attached staff report from January 22, 2002). Because the building owner has remained unwilling to finalize a purchase of the property by Santa Monica Playhouse, the allocated $75,000 remains unused. As predicted in the 2002 staff report, the rent has been increased, and the Santa Monica Playhouse has experienced increasing difficulty in keeping current with payment. The request to the City Council is to authorize the City Manager to amend the 2002 agreement with the Santa Monica Playhouse to better address current needs. This amendment would include: 1- September 28, 2010 September 28, 2010 • making $20,000 of the already-allocated money available now, too address the immediate rent deficit. • making available as a fundraising stimulus another $5,000 of the already-allocated money, on a $1-to-$2 match ratio. The City would match with one dollar every two dollars raised from Playhouse contributors, to be used toward future rent, but only up to the $5,000 limit. • making an additional $5,000 grant of the already-allocated money available for a planning process, designed to address issues of future sustainability for the Playhouse, which might include formation of a Board or other body more capable of long-term, ongoing fundraising. The remaining $45,000 of already-allocated money would remain with the City as a prudent reserve, and might at some future time be used to help with needed modifications to the property to help the Playhouse attain. full ADA compliance, etc. There is no new budget impact associated with the requested amendment to the agreement for use ofalready-allocated funds. Further, flexible use of this financial resource, always meant to help retain the Santa Monica Playhouse, is congruent with policies adopted by the Council in the 2007 Creative Capital plan, which recommended retention of existing cultural resources. 1- September 28, 2010 2 CCS: Cultural Affairs Council Meeting: January 22, 2002 TO: Mayor and City Council FROM: City Staff Santa Monica, CA SUBJECT: Santa Monica Playhouse Request for Financial Assistance 9/18/10 12:32 AM Introduction In 2002 the Santa Monica Playhouse will be celebrating its fortieth anniversary at its current site on Fourth Street in downtown. Their current lease is up and their landlord has given them eighteen months in which to raise the $300,000-500,000 to facilitate the purchase of the facility. If they do not raise this sum, their rent will go up by twenty percent making it impossible for them to stay. They are asking for an unspecified level of financial assistance from the City. Background The Playhouse is anon-profit professional theatre and educational conservancy, concentrating its efforts in three areas: the creation of live theatre, an educational conservatory program, and community outreach. The Santa Monica Playhouse presents approximately ten theatrical performances per week of between four to eight different productions. They present ten productions annually involving Santa Monica's oldest professional acting company the Actors Repertory Program, the New Playwrights Series, the Jewish Heritage Program and the International Cultural Exchange Program. They also present six musicals for children and families annually. The dozen Theatre for Youth Programs promote the awareness of the power of theatre as a tool for life. Through the Playhouse's STEP Program, artists teach theatre and performance at local elementary and middle schools. Discussion http://wwwOl.smgov.netlciryclerk/council/agendas/2002/20020122/s2002012212-B.htm Page 1 of 2 CCS: Cultural Affairs 9/18/10 12:32 AM The Santa Monica Playhouse has been a regular recipient of the Cultural Affairs Division's Community Arts Grants and is in its second year of the Cultural/Arts Organizational Support Program. Combined current funding in both programs is $9,050 this fiscal year. Currently there is no City funding program in place to support this request. Preoared By Barbara Stinchfield, Director, Community and Cultural Services Maria Luisa de Herrera, Manager, Cultural Affairs ttP: / /www0lsmgov. net/ciryderk/council/agendas/2002 /20020122/s 2002012212-B, htm Page 2 of 2 Reference Amended Contract No. 8182 (ccs).