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CITY OF SANTA MONIGA. - b5-G-30
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FROM:
SUBJECT:
August 2, 1865
The Honorable City Gouncil
Perry Scott, City Manager
Exhibit Hall and Hotel Feasibility Study
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The City Council included in the 1965-66 budget the sum of $10,000
for the purpose of obtaining the services of a qualified consultant
to conduct the subject study.
Pursuant to this implicit authorization this office has contacted
the firm which originally proposed, and was recommended therefor,
to perform the exhibit hall study. This firm, Economics Research
Associates, has agreed to reactivate and conduct the exhibit hall
study in accordance with the original criteria for $7,500, the same
fee as initially requested.
For an additional fee of $1,500 they will include as an integral
part of the exhibit hall study the necessary research to determine
the market support for hotel development at our Pico and Ocean
Avenue site, following the guide lines set forth on page 4 of the
attached proposal.
It is the recommendation of the administrative staff that this
proposal, £or a total fee cf not to exceed $9,000, be accepted.
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PERRY ~OT'P `
City I~lanager
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Attach.
cCOiVO;'s1lCS 2~SEA3C'ri :.SSOCiS:7ES ~ Bll$aahFillSrze ~ icsAngeles,California9CC:3 ~ td;Adison4-E666
HARRiSON A. PRICE
Presidon4
July 21, 1965
Mr. W. A. :iard
Director of i finance
City of Santa Monica
1635 Main Street
Santa Monica, California
Dear Mr. Hard:
On December Z0, 1963, Economics Research Associates submitted its
Proposal No. 1035 concerning the eccro~ric feasibility of a.n exhibit
l;all to be associated with tie existing civic auditorium. Our budget at
that time was $7, 500 and by you-r letter of January 23, 1964, you
advised us '°aat we were recommended to conduct the study after review-
ing competitive proposals from several other firms.
the purpose of this letter is to reactivate that proposal and to add to
it a study of market demand for hotel develcpmerit at an adjacent site
at Main Street, Pico'Boulevard, and Ocean Avenue.
We are delighted to have the opportunity to out"tine this work for you.
Since the original proposal, E. R. A. has carried oui hotel market studies
in Santa Monica at the International Airport and for the new 1800 unit
Sheraton'riotel at Universal City. We have aiso studied auditorium and
exhibit space demands in Redondo, Torrance, Elysian Park, and Universal
City. In other words, the state of ou-r knew-how and background on your
specific problem is that much farther along and we hope to be able to
do an outstanding job for you. We are passing on to you in our budget
structure substantial benefit from related work.
Please let me know if I can be of any assistance in explaining or adjusting
the precise statement of work.
S~ncerely yours, ~
~- -- , ~ ~. 44.
- ~~''
Harrison A. Price
HAP:hlm President
~o1ta ~o .
ECONOMICS R'eSEARCH ASSOCIATES • 417 South Hill Street
HARRISON A. PRICE
Pr•sitl•nt
,
• Los Angeles, California 90013 MAdison 4.8665
July 21, 1965
Mr. W. A. Hard
Director of Finance
City of Santa Monica
1685 Main Street
Santa Monica, California Proposal No. 1035
Revised
A Proposal for Research
Introduction
The Santa Monica Givic Auditorium is amulti-purpose, theatre-type
auditorium capable of accommodating a wide range of events, from
theatrical productions to professional tennis and boxing matches.
Although the auditorium is basically a theatre structure, its tilting
flbor makes possible its use for a number of events requiring flat
floors. While this multi-purpose design can accommodate a wide
variety of events, the very high usage of the auditorium (among the
highest in the West) has made it necessary to constantly be changing
the facility from a theatre arrangement to a flat-floor arrangement.
This has tended to increase operating costs sharply,
In addition, the auditorium has had a number of requests for more
exhibit space than can at present be made available, and for space
for more flat-floor events. As a result, the city is now considering
the addition of an exhibit building to the present auditorium structure.
It is reasoned that this exhibit building could accommodate the potential
as well as many flat-floor events that now take place in the auditorium.
The purpose of the additional building would be (1) to free the present
auditorium so that it can be used primarily for theatre events, (2) to
reduce the very costly labor charges in changing from one setup to
another, (3) to increase the revenue potential to the auditorium and to
the city with exhibition events which usually are very profitable, and
-2-
(4) to attract convention and trade show activity to Santa Monica, along
with complementary economic benefit to the city's hotels and motels,
restaurants, and retail businesses. In this latter connection, a supple-
mentary task in this research is to evaluate the market for hotel develop-
ment on city-owned property across the street from the auditorium on a
1. 7 acre site bounded by Main Street, Pico Boulevard, and Ocean Avenue.
Research Objective
The initial objective of the research is to determine whether there is
sufficient market demand for a new exhibition hall in conjunction with
the existing civic auditorium. If it is found that there is sufficient
market demand,. the objectives will be to determine how large the exhi-
bition hall should be, how much it will cost to construct, what are its
operating revenue and expense potentials, and what other economic
benefits to the community would it provide.
An additional objective of the work is to evaluate market support and site
suitability for hotel development lon city-owned property bounded by Main
Street, Pico Boulevard, and Ocean :!lvenue. Market support is to be
defined in terms of its constituent elements, including that generated by
the convention center and exhibit hall, and local and transient demand
derived from the trading area of 'the site.
Scope and Method of Approach
In meeting the objectives of the study, the research will include but not
necessarily be limited to the following lines of inquiry:
Exhibit Hall
1. Analysis of the exhibit events and other flat-floor events now being
held in the civic auditorium in order to determine how many of
these would be logical candidates for a new separate exhibition hall.
Z. Analysis of the types of exhibit events now being held in other
facilities in the West Los Angeles area to determine how many of
these events might be logical candidates for a new exhibition hall
at the Santa Monica Civic Auditorium site.
3. Analysis of the usage of other auditoriums in Southern California
that have a theatre facility and an exhibition hall, for the purpose
®_ of developing additional potential uses.
-3-
4. Analysis of space requirements of conventions held in the Santa
Monica area, as well as potential conventions and trade shows
that might be held if suitable exhibit facilities were available.
S. Analysis of savings in labor costs from cutting down on the setup-
teardown time needed to change from event to event in the existing
auditorium.
n. Investigation of the possibilities of using an exhibition hall, rather
than the present auditorium, for events such as boxing, tennis,
and basketball.
7. Contacting groups that offer a potential use for an exhibit hall for
consumer and trade 'shows, dances, etc.
8. Determination of the amount of user-days and types of use that
could reasonably be expected for an exhibition hall in conjunction
with the Civic Auditorium.
9. Based on the analysis of potential user groups, determination of
the optimum size of an exhibition hall facility in conjunction with
the existing auditorium. Also included would be recommendations
as to particular features that should be incorporated in the structure.
10. Evaluation of additional parking requirements as a result of an
added convention-exhibit facility.
11. Based on the size of the hail and the features required, determin-
anon of the approximate cost of the facility.
12. Projection of the revenues and expenses of the proposed facilities
in order to determine whether the exhibition hall would be self-
supporting from direct charges and rentals. Projections would
be made for the combination of the existing auditorium and the
proposed exhibition hall, as well as the incremental effect of the
addition of the exhibition hall. This information would be drawn
from our experience in working with operators of exhibition
buildings and auditoriums in other cities and on the operating
experience of the present facility.
Hotel Demand
~ Thus phase of the research effort is concerned with deterrnining the market
support for hotel development at the city site adjacent to the convention
-4-
center. The specific program will include the following elements:
1, Establishing the trading area of a hotel development on this site.
2. Estimating market demand derived from industrial use, educational
institutions, local population, and transient traffic within this
trading area. Market support derived from activities at the audi-
torium and the proposed exhibit center will be specifically estimated.
3. Assessing competitive influences prevailing within the trading area,
including space availability, pricing, and vacancy levels affecting
hotel operation.
4. Evaluating the dynamic factors of growth and timing on the market
outlook at this site.
5. Assessing the physical quality level of the site for hotel development
considering access, traffic conditions, present and future land use
in adjacent areas,- and other site factors.
Close liaison will be maintained with the city throughout the research
program. Oral progress reports will be supplied to city management as
desired by the client. At the conclusion of the research, a formal written
report will be prepared and tiae client supplied with 25 copies of the formal
report. A formal oral presentation will be made at that time if requested.
Additional copies can be obtained at the cost of report reproduction.
Time and Cost
The estimated time to complete this study is 10 to 12 weeks. Work can
begin within two weeks after receipt of project authorization. Estimated
costs, including staff time, overhead, direct costs and expenses, and
report preparation, are $9, 000. Progress billings are submitted twice
monthly as costs are incurred.
Acceptance
This proposal shay be accepted by returning one copy signed and accompanied
by the required deposit. .Work will be scheduled within one week thereafter.
Respectfully submitted,
6% d+°'
i°~~rison A. Price
- HAP:hlm President
ACCEPTED BY:
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~~~~~
~il South 9i1~ Street o ies k~3el~s, Ca~itornia S0013 ~ YiAdison 4-3065
HARn^:SON A. P~':C~
r~residas:
July 21, 1965
Mr. W. A. '_-lard
Director of finance
City oP Santa Monica
1685 Main Street
Santa Monica, Caliio-rnia
Dear Mr. :ard:
~~9 q ¢
'~i~Y N'C ~ ~ dj$
AUC~ ~ 19h5 ~~u
Cn December 20, 1963, Economics 2esearch Associates subrr.itted its
Proposal \o. 1035 concerning the eccnomic feasibility of an exhibit
hall to be associa±ed with the existing civic auditori,~m. Our budget at
that time was $7, 500 and by your letter a.Jar_ua=y 23, 1904, you
advised us that we were recorrmei~ded to cer_d:zci the study of±er review-
ing competitive proposals =-rom several other i_rms.
The purpOSe Oi t'f1iS letter 1J' i;0 rea Ctivatc ti'lat le rOpO Sal grid t0 add t0
it a study of market demand for hotel developme ± at an adjacent site
at Main Street, Pico Boulevard, and Ocean Avenue.
'Ne a-re delighted to have the onpo'rtunity io cutline this work for ycu.
Since the original proposal, E. R. A. has carried out hotel mar:cet studies
ir_ Sa-r~ta Monica at the International Airport and -tor the new 1800 u_~it
Sheraton Hotel at Universal City. ti~Te have also studied auditorium and
exhibit space demands in Redondo, Torrance, Elysian Park, and Universal
City. in other words, the state of on-r know-hose and background on your
specific problem is that much ~a-riher along and we hope to be able to
O
do an outstanding job zo-r you. tNe are passing on to you in cur budget
structure substantial benefit from related work.
Please let me know ii I can be of any assistance in explaining or adjusting
the precise statement of work.
Si:2cerely ycurs,
Grrison A. Price
HAP:hlm President
~~o o~
~oJlo ~So
EC®~JOaw13CS RESE&RCta ASSOCIATES • 417 South Hill Street Los Angeles, California 90013 • MAdison48665
HARRISON A. PRICE
PresitlenY
July 21, 1965
Mr. W. A. Hard
Director of Finance
City of Santa Monica
1685 Main Street
Santa Monica, California Proposal No. 1035
Revised
A Proposal for Research
Introduction
The Santa Monica Givic Auditorium is amulti-purpose, theatre-type
auditorium capable of accommodating a wide range of events, from
theatrical productions to professional tennis and boxing matches.
Although the auditorium is basically a theatre structure, its tilting
floor makes possible its use for a number of events requiring flat
floors. While this multi-purpose design can accommodate a wide
variety of events, the very high usage of the auditorium (among the
highest in the West) has made it necessary to constantly be changing
the facility from a theatre arrangement to a flat-floor arrangement.
This has tended to increase operating costs sharply.
In addition, the auditorium has had a number of requests for more
exhibit space than can at present be made available, and for space
£or more flat-floor events. As a result, the city is now considering .
the addition of an exhibit building to the present auditorium structure.
It is reasoned that this exhibit building could accommodate the potential
as well as many flat-floor events that now take place in the auditorium.
The purpose of the additional building would be (1) to free the present
auditorium so that it can be used primarily for theatre events, (2) to
reduce the very costly labor charges in changing from one setup to
another, (3) to increase the revenue potential to the auditorium and to
the city with exhibition events which usually are very profitable, and
-2-
(4) to attract convention and trade show activity to Santa Monica, along
with complementary economic benefit to the city's hotels and motels,
restaurants, and retail businesses. In this latter connection, a supple-
mentary task in this research is to,evaluate the market for hotel develop-
ment on city-owned property across the street from the auditorium on a
1. 7 acre site bounded by Main Street, Pico ,Boulevard, and Ocean Avenue.
Research Objective
The initial objective of the research is to determine whether there is
sufficient market demand for a new exhibition hall in conjunction with
the existing civic auditorium. If it is found that there is sufficient
market demand, the objectives will be to determine how large the exhi-
bition hall should be, how much it will cost to construct, what are its
operating revenue and expense potentials, and what other economic
benefits to the community would it provide.
An additional objective of the work is to evaluate market support and site
suitability for hotel development on city-owned property bounded by Main
Street, Pico Boulevard, and Ocean Avenue.. Market support is to be
defined in terms of its constituent elements, including that generated by
the convention center and exhibit hall, and local and transient demand
derived from the trading area of the site.
Scope and Method of Approach
In meeting the objectives of the study, the research will include but not
necessarily be limited to the following lines of inquiry:
Exhibit Hall
1. Analysis of the exhibit events and other flat-floor events now being
held in the civic auditorium in order to determine how many of
these would be logical candidates for a ne~v separate exhibition hall.
2. Analysis of the types of exhibit events now being held in other
facilities in the West Los Angeles area to determine how many of
these events might be logical candidates for a new exhibition hall
at the Santa Monica Civic Auditorium site.
3. Analysis of the.. usage of other auditoriums in Southern California
that have a theatre facility and an exhibition hall, for the purpose
of developing additional potential uses.
-3-
4. Analysis of space requirements of conventions held in the Santa
Monica area, as well as potential conventions and trade shows
that might be held if suitable exhibit facilities were available.
5. Analysis of savings in labor costs from cutting down on the setup-
teardown time needed to change from event to event in the existing
auditorium.
6. Investigation of the possibilities of using an exhibition hall, rather
than the present auditorium, for events such as boxing, tennis,
and basketball.
7. Contacting groups that offer a potential use £or an exhibit hall for
consumer and trade shows, dances, etc.
8. Determination of the amount of user-days and types of use that
could reasonably be expected for an exhibition hall in conjunction
with the Civic Auditorium.
9. Based on the analysis of potential user groups, determination of
the optimum size of an exhibition hall facility in conjunction with
the existing auditorium. .Also included would be recommendations
as to particular features that should be incorporated in the structure.
10. Evaluation of additional parking requirements as a result of an
added convention-exhibit facility.
11. Based on the size of the hall and the features required, determin-
ation of the approximate cost of the facility.
12. Projection of the revenues and expenses of the proposed facilities
in order to determine whether the exhibition hall would be self-
supporting from direct charges and rentals. Projections would
be made for the combination of the existing auditorium and the
proposed exhibition hall, as well as the incremental effect of the
addition of the exhibition hall. This information would be drawn
from our experience in working with operators of exhibition
buildings and auditoriums in other cities and on the operating
experience of the present facility.
Hotel Demand
This phase of the research effort is concerned with determining the market
support for hotel development at the city site adjacent to the convention
-4-
center. The specific program will include the following elements:
1. Establishing the trading area of a hotel development on this site.
2. Estimating market demand derived from industrial use, educational
institutions, local population, and transient traffic within this
trading area. Market support derived from activities at the audi-
torium and the proposed exhibit center will be specifically estimated.
3. Assessing competitive influences prevailing within the trading area,
including space availability, pricing, and vacancy levels affecting
hotel operation.
4. Evaluating the dynamic factors of growth and timing on the market
outlook at this site.
5. Assessing the physical quality level of the site for hotel development
considering access, traffic conditions, present and future land use
in adjacent areas, and other site factors.
Close liaison will be maintained with the city throughout the research
program. Oral progress reports will be supplied to city management as
desired by the client: At the conclusion of the research, a formal written
report will be prepared and the client supplied with 25 copies of the formal
report. A formal oral presentation, will be made at that time if requested.
Additional copies can be obtained at the cost of report reproduction.
Time and Cost
The estimated time to complete this study is 10 to 12 weeks. Work can
begin within two weeks after receipt of project authorization. Estimated
costs, including staff time, overhead, direct costs and expenses, and
report preparation, are $9, 000. Progress billings are submitted twice
monthly as costs are incurred.
Acceptance
This proposal may be accepted by returning one copy signed and accompanied
by the required deposit. Work will be scheduled within one week thereafter.
HAP:hlm
Respectfully submitted,
Harrison A. Price
President
ACCEPTED BY: .