sr-090164-8dCITY OF SANTA MONICA
64-C-111
DATE:
TO:
F RO~d
July 7, 1964
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The Honorable City Council
~rV. A. Hard, Acting City Manager
SUBJECT: Exhibit Hall Study
Vde have made inquiry of Economic Research Associates as to
whether they were prepared to conduct the survey at the price
and in accordance with their proposal submitted on December
20, 1963.
The answer was affirmative and we therefore again recommend the
retention of this firm for the subject survey.
WAHifc
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W. A. HARD
Acting City Manager
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~~C)Ifl,~:SCS EESEA2CSS ASSOCIAYES 417 South HIII Street, Los Mgeles 13, Califamia • iNAdison 48665
NARRISON ,L PRICE
Prersl~cnY
Mr. W. W. Dundore
Director of Finance and
City Controller
City of Santa Monica
1685 Main Street
Santa Monica, California
A Proposal for Research
Introduction
December 20, 1963
Proposal No. 1035
The Santa Monica Civic 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 far 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
exhibit-type events that cannot now be accommodated in the auditorium,
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
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(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.
Research Obiective
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.
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:
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.
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, £or the purpose
of developing additional potential uses.
4. Analysis of space requirements of conventions held an 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 £rom cutting down on the setup-
teardown time needed to change from event to event in the existing
auditorium.
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b. 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, eta
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, determina-
tion of the approximate cost of the facility. In this portion of the
study, E. R. A, would work with the Welton Becket organization,
or any architectural firm suggested by the City of Santa Monica.
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.
13. Consideration and projection of economic and other benefits that
the City of Santa Monica would derive from an exhibition hall
facility,
Close liaison will be maintained with the city throughout the research
program. Approximately midway through the research, when it is
possible to project the potential usage of a new exhibition hall, an oral
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report will be made to the city, and conclusions will be drawn as to the
need for such a facility. If at that time there does not appear to be
sufficient need for an additional facility, the study will be concluded
at that point and the client will be billed only for the time expended to
that point. If the demand appears strong, the study will move on to
completion. At the conclusion of the research, a formal written report
will be prepared. In conducting this study, E, R. A, expects to draw
heavily from a recent exhibition hall study by one of the staff members
for the City of Los Angeles, as well as many other auditorium studies
performed by members of E. R. A.
Time and Cost
The estimated time to complete this study is 8 to 10 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 $7, 500. This figure also includes a $500 allow-
ance for consultation from architects on the cost of the proposed structure.
Billings will not exceed this amount without prior client approval. It is
the policy of E. R. A. to require a deposit of $l, 500 on a project of this
size, payable at the time of project authorization, said deposit to be
applied against final project billings: Regular billings are submitted
twice monthly as costs are incurred.
Qualifications of Economics Research Associates
Economics Research Associates was established in 1958 in response to
the growing demand for creative solutions to problems of business and
government -- solutions which satisfy practical objectives and meet
today's compressed time schedules. The highest standards of excellence
are set in the conduct of research, the preparation of reports, and the
presentation of results. The' E. R. A. staff is comprised of seasoned
professionals with a proved record in the fields of economics research
and management consulting. A senior staff man will be assigned to
this project who would typically have six to eight years professional
experience and have successfully carried out several studies of the type
proposed. Attached is a sheet listing a number of the more significant
projects in the field of public facilities.
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Additional information about present and past work in the public
facilities field will be made available on xequest., Names of persons
familiar with E. R. A. ~ s work in each instance will be supplied as
references if this should become desirable.
Acceptance
This proposal may be accepted by returning one copy signed and
accompanied by the required deposit. Work will be scheduled within
two weeks thereafter.
Respectfully submitted,
~ .,
Richard McElyea
RM:fm
Enclosures
ACCEPTED BY:
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COvOP:>:CS ~ ESP:a~C:i .4SSOC9AYG5 417 South Hill Street, Los Mgelas 13, California • MAdison 486b5
HARRISON A. PRICE
ProslEOni
Economics Research Associates Experience:
Following is a list of the experience of E. R. A. personnel in
the field of economic feasibility analysis and site location studies for
Dublic facilities.
The projects listed below include both studies done exclusively
by Economics Research Associates and studies by Stanford Research
Institute in which senior staff members of E. R. A. who were formerly
with S. R. I. had primary responsibility for the research or played a
major part in the study. °
Disneyland, Inc. -- E. R. A. investigated the economic feasibi-
lity of a convention center at Disneyland. The study also included
an analysis to determine the precise site for such a facility.
E. R. A. conducts all of the economic feasibility studies for
Walt Disney Productions.
City of Tacoma, Washington -- E. R. A. is presently conduct-
ing acomprehensive auditorium study for the Ciry of Tacoma in
conjunction with Welton Becket and Associates, architects and
engineers. This study entails all research tasks associated with
a complete auditorium study including the determination of the
type and size of facilities needed, site location, financial analysis,
and economic impact on the .community. Ir. this study E. R. A.
was selected after lengthy presentations before the Civic Auditor-
ium Committee by four major firms in the field of auditorium
studies, including Stanford Research Institute.
City of Sacramento, California -- Mr. McElyea of the E. R. A,
staff, directed this comprehensive auditorium study for the City
of Sacramento while at S. R. I. This study included ar. economic
feasibility analysis, projections of use, development of planning
factors, site analysis, recommendations for facilities required,
and financial projections. Special attention was given to a cultural
center.
Century 21 World's Fair -- This study involved a comprehensive
feasibility and space planning analysis for Century 21. The work
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came at a critical time in the planning of the project and
consititues the major part of all analytical preparation that
went into the Fair.
Los Angeles Music Center -- Personnel of E. R. A. were
involved in two studies for the Los Angeles Music Center
while at S. R. I. Mr. Lund directed the first study which
involved projections of use, site analysis, and financial
ooerations of the Music Center after a size change in the
Memorial Pavilion was made and two new buildings were
added to the complex. Construction is now under way on
the Memorial Pavilion.
City of Houston -- Dr. Robert Sigafoos directed a compre-
hensive study of the need for governmental and cultural convent-
ion facilities in the Houston Civic Center Area to 1980'while
ai S. R. I. This study included an analysis of both the govern-
mental space requirements as well as the need for auditorium
facilities in the civic center. Included in the auditorium
analysis were projections of use, analysis of exisiting facili-
ties, site analysis and physical arrangement of future civic
center facilities, financial analysis, planning factors, and
preliminary cost estimates and development schedules.
Marineland of the Pacific -- In this study, E. R. A. analyzed
attendance patterns .and financial operations at Marineland
and made recommendations for future planning.
Chouinard Art Institute -- In making this study, E. R. A.
played a major part in the development planning o£ ar. applied
arts center in Los Angeles.
Los Angeles Exhibition Ha11 -- Two studies were made by S. R. I.
for a proposed exhibition hall for the Gity of Los Angeles. Mr.
Lund directed the first study which involved an economic #easibi-
lity study and projections of use of an exhibition hall at a given
site. The second study, which Mr. McElyea played a major
part in, was primarily a study of several alternative sites, and
in addition, included projections of use and financial analysis
for a larger facility.
City of Anaheim -- This study by S. R. I, was directed by Mr.
McElyea. It included the full scope of auditorium analysis
including feasibility, site analysis, use projections, recom-
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mendations of needed facilities and configuration, and financial
projections. It was oriented toward an auditorium facility.
serving all of Northern Orange County as well as the City of
Anaheim. The city is presently negotiating with architects, and
construction is expected to start within the next year.
Friends of the Los Angeles Zoo--An interesting and compre-
hensive study of the planning factors, site location, and financial
analysis for the Los Angeles World Zoo was directed by Mr.
Lund and Mr. McElyea while at S, R. I. This study is now
recognized as the guidebook for zoological park directors through-
out the country.
International Exposition of Southern California (Long Beach)--
~.. R. A. had completed several studies for the California
World's Fair in Long Beach (1967-1968). The initial study was
an economic feasibility analysis and was followed by seperate
evaluations of performing arts, traffic, and economic impact.
City of San Diego--An economic feasibility analysis for an
auditorium complex for the City of San Diego was conducted
by Mr. Price, President of E. R. A., while manager of the
Southern California Laboratories of S. R. I. The scope of the
work in this study was similar to Anaheim and Sacramento.
New York World's Fair-- E. R. A. has worked with several
major exhibitors in New York World's Fair in defining the
scope and economics of participation. Projects studied and
successfully launched are:
Ford Motor Company
General Electric Company
Pepsi-Cola/UNICEP
Maricopa County, Arizona--.
City and County of Honolulu-- 5. R. I. made complete feasi-
bility studies of municipal auditorium needs for both of the
above public bodies. Mr. Luxid of the E. R. A. staff did the
complete financial analysis and projections for both of these
studies.
Smoke Tree Ranch, Palm Springs-- This was an economic
feasibility study relating to the development of a recreation
center ir. Palm Springs, California.
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H_arrah's, Nevada-- This study by E. R. A. involved an~.analysis
of alternative locations for a tourist center complex in the
Greater Reno, Nevada area.
Cultural and Recreational Center, Kansas.City--The purpose of
this study was to evaluate the economic feasibility of developing
a major cultural and recreational center on Signboard Hill,
Kansas City, and to provide guidelines related to the develop-
ment of an appropriate theme and optimum design for the
proposed center.
California State Fair and Exposition-- E. R. A, was selected in
a national competition with 2b other firms to do a $100, 000
study for the California Fair. This comprehensive study included
an analysis of all aspects of the California State Fair including
the concept, econorXiic feasibility, attendance estimates, site
evaluation, facility requirements and placement, and a complete
implementation program. E> R. A. also was called upon to
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present the program before the California State Legislature,
which passed it by a vote of 99 to 1. The State Finance Depart-
ment considers the report and the presentation to have been a
major factor in its passage, since in ten prior studies by other
organizations, no action had resulted.
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Economic Research Associates quoted as follows:
Thirteen step analysis by staff personnel under direction of an
experienced senioz with six to eight yeses professional experience.
Cost estimate: $7, 500 total.
Will take eight to ten weeks to complete,
Enclosures indicate a well qualified staff experienced in numerous
studies relative to auditoriums and exhibit lsalls.
SL1A and Robert I{liegman, A, I. A, , quoted as follows°
Ten step analysis by staff personnel, including apre-architectural
program,
Cost estimate: $12, 500 maximum.
Ydill present initial conclusions in oral form within 90 days, and
wzitten zepozL °tlain 30 days subsequeeat to acceptance of oral
report.
Enclosuzes indicate a well qualified staff.
Stanford Reseazch %natitute quoted as follows:
Six step program of research but no detailed architectural and
engineering studies are proposed.
Cost estimate: $fl5, 750.
VTill requite four months to complete.
Enclosures indicate a well qualified staff experienced in numerous
studies zelative to auditoziuma and exhibit halls.
It appeazs from tlae foregoing that Economic Research Associates has
submitted the best proposal foz flee following reasons:
¢1} lowest stated cost
~2} well qualified staff, expezienced in studies of this type
(3} fastest stated time to completion.
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ERIdES'T' N. PviO~i.EY
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