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.
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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.
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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
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Forwarded to Council:
t
Rod Gould
City Manager
Reference Contract No.
9674 (CCS).