Loading...
SR-12-11-2012-3CID City of City Council rt Santa Monies City Council Meeting: December 11, 2012 Agenda Item: J3, G To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: License for Seasonal Ice Skating Rink Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a License Agreement with Downtown Santa Monica, Inc. (DTSM) for the continued use of City -owned property at 1324 5th Street as a seasonal public ice skating rink for $1 the 2013/14 winter season, with options for annual renewals at the City's discretion. Executive Summary Since 2007, as part of its annual Winterlit holiday celebration, DTSM has produced the outdoor public ice skating rink on a City -owned parking lot at the corner of 5th Street and Arizona Boulevard. The seasonal rink has become a popular destination attracting locals and visitors to downtown. The current agreement with DTSM was approved by Council on September 28, 2010, and will expire on February 29, 2013. DTSM would like to continue to offer this holiday amenity to the public and maintain the community's interest and involvement in downtown during the winter. DTSM requests a new agreement with options for annual renewals subject to the eventual redevelopment of the 5th and Arizona site. The City's license fee charged to DTSM for use of the site would continue to be $1 per season. Background Each season, the ice rink serves over 65,000 skaters and many more spectators (estimated at 200,000 to 250,000) with programing that includes general skating, skating lessons, performances, and the sale of skating - related merchandise and food and beverage. Set up of the rink begins in early October with demobilization at the end of February. The rink is open to the public for skating from early November through the end of January. When not in use as an ice rink, the lot at the corner of 5th Street and Arizona is operated by the City as a surface public parking lot. 1 The 5th Street and Arizona site is part of a larger 112,000- square foot land assemblage acquired by the City between 2007 and 2010 for the purpose of developing a large - scale, mixed -use project through a public - private partnership. The selection of a developer to partner in this effort is in process. On November 13, 2012, Council approved a 'short list' of development teams to be invited to respond to a Request for Proposals to be issued by the City in January of 2013. Staff does not anticipate a ground breaking on this site to occur for several years. Discussion DTSM, under a Services Agreement with the City, is responsible for promoting and managing marketing efforts, programs, and special events in downtown Santa Monica for the benefit of residents, merchants, property owners, customers and visitors. The holiday ice skating rink has become an important part of DTSM's programming efforts to enhance the reputation of Santa Monica as a premier holiday destination and attract residents and visitors to downtown. Under the proposed license agreement, DTSM would continue to be responsible for all costs associated with the operation of the ice skating rink including staffing, ancillary facilities and equipment, as well as all utility charges. In the past, revenues from skate rentals and sponsorships nearly covered the rink's $700,000 operating budget. The City's license fee charged to DTSM for use of the site would continue to be $1 per season. Alternative The City could either elect not to authorize a license agreement with DTSM for the operation of an ice rink at 1324 5th Street, or authorize a shorter season, to allow the City to maximize the use of the site as a public parking lot. 7 Financial Impacts & Budget Actions The City averages $55,000 per month in gross revenues from the parking lot operation. The license of the lot as an ice rink for the months of October, November, December, January and February would result in foregone parking revenues to the City totaling $275,000. The projected reduction in revenue due to the ice rink is reflected in the FY 2013/14 budget. Prepared by: Elana Buegoff, Sr. Development Analyst Approved: Andy Agle, Director Housing and Economic Development 3 Forwarded to Council: t Rod Gould City Manager Reference Contract No. 9674 (CCS).