SR 09-13-2016 3I
Ci ty Council
Report
City Council Meeting : September 13, 2016
Agenda Item: 3.I
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To: Mayor and City Council
From: Andy Agle, Director , Housing and Economic Development, Economic
Development Division
Subject: License Modification for Seasonal Ice Skating Rink
Recommended Action
Staff recommends that the City Council a uthorize the Cit y Manager to execute a first
modification to the License Agreement with Downtown Santa Monica Inc., a California -
based Corporation, for the installation and operation of a seasonal ice rink on City
property between the months of October and February. The m odification would extend
the term of the agreement with four, one -year option periods and r eplace one parcel in
the l icense area, 1326 5 th Street, for another parcel, 1323 5 th Street. Th e existing term
of five years , combined with the re commended four, one -year options , w ould result in
a n amended license agreement not to exceed nine years in total .
Executive Summary
Modifications to the license agreement for the seasonal ice skating rink are intended to
extend and enhance the annual holiday activity in San ta Monica’s Downtown .
Since 2007, Downtown Santa Monica, Inc. (DTSM ) has produced a successful public
ice -skating rink on City -owned surface parking lot s at the corner of 5th Street and
Arizona Avenue . The existing license agreement is set to expire at t he end of the
2017/18 holiday season. DTSM has requested an extension to the term in order to
accommodate its mid -term planning and future program ming for the seasonal activities.
In addition, t he City requires the use of a portion of the southern most par cel of the
license area during the upcoming winter season. DTSM has requested to replace the
unavailable parcel with a City -owned surface -parking parcel across the street and to
act ivate the replacement parcel as part of its seasonal celebrations.
Back ground
For the last ten years, Downtown Santa Monica Inc. (DTSM ) has transformed a city -
owned surface parking lot at 5 th Street and Arizona into “ICE ,” a winter event featuring
an ice rink, cabanas, food service , and holiday décor , as part of its broader “Winterlit”
seasonal activities. ICE event s attract approximately 60,000 skaters per season and
many spectators , growing into a beloved local tradition .
The most recent l icense a greement approved by Council on December 11, 2012
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(Attachment A) granted DTSM annual use of the six -parcel site as a seasonal , public
ice -skating rink during the months of October through February for one dollar per
season. The initial term of the a greement was for one year with four , one -year options
to extend , for a total license term of five years .
The license area at 5 th Street and Arizona is part of a larger 112,000 -square foot land
assemblage that is being considered for a public -private partnership, mixed -use
develop ment . The proposed development is in the early stages of e nvironmental review
and land use entitlements and is not expected to break ground for several years.
Discussion
The license agreement is in the fourth year of its term and is set to expire at the end of
the 2017/18 winter season. DTSM has requested to e xtend the license term to facilitate
its mid -term planning and programming of upcoming ICE/Winterlit activities.
Staff recommends adding four additional one -year extension options to the existing term
of the license agreement to allow DTSM to seasonally p rogram ICE/Winterlit through
the 2021/22 season . If the mixed -use development proposed for the site initiates
construction during the extended license term, the existing agreement has provisions
allowing for terminat ion at the City’s discretion. The other terms and conditions of the
license agreement would remain unchanged. DTSM would continue to assume
responsib ility for all costs associated with the operation of the ice skating rink including
staffing, ancillary facilities and equipment, utility charges , and the $1 license fee
charged by the City annually . In the past, revenues from admission fees, skate rentals ,
and sponsorships have cover ed the rink’s approximately $850,000 operating budget.
The license of the lot as an ice rink for the months of Octobe r through February result s
in foregone parking revenues to the City totaling approximately $100,000 per season .
City and DTSM s taff have discussed options for relocating the ICE/Winterlit operations
in the future if the proposed mixed -use development at th e site commences
construction during the license term.
In addition, DTSM has been notified by the City that a portion of the southernmost
parcel, located at 1326 5 th Street (see Attachment C), licensed to DTSM for
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ICE/Winterlit is needed by the City for c onstruction staging relating to an adjacent public
works project scheduled to occur during the FY 2016/17 license period . DTSM has
confirmed it can relinquish its use of the 1326 5th Street parcel from the license area
without affecting its ICE/Winterlit o perations ; however, DTSM has requested to replac e
the parcel with another parcel, a City -owned surface parking lot located at 1323 5 th St.,
which is across the street from the license area. The parcel replacement would allow
DTSM to expand community activi ties a ssociated with its Winterlit programing ,
potentially includ ing activities such as an outdoor cinema, a holiday market, and food
truck nights. The replacement parcel would be u sed in conjunction with the ICE/Winterlit
program between the months of Oct ober and February.
The 1323 5 th Street parcel is one of the subject parcels of a land exchange approved by
Council on August 14, 2012 (Attachment B). S taff anticipates that sale of th e parcel
could occur during the 2016/17 season ; therefore, staff recomm ends the inclusion of a
15 -day termination clause in the l icense modification related to th e 1323 5 th Street
parcel if there is a need to terminate use early.
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action n ecessary as a result of the
recommended action . If there are a ny future budgetary changes , they will be reflected in
future budgets. DTSM’s use of the 1323 5th St. parcel will not significantly impact the
City’s projected parking revenues due to the small number of parking spaces being
eliminated .
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Prepared By: Elana Buegoff, Senior Development Analyst
Approved
Forwarded to Council
Attachments:
A. Attachment C 2016
B. Attachment A - License for Seasonal Ice Skating Rink (Dec 11, 2012)
C. Attachment B - Purchase and Sale Agreement for Fire Station Land Exchange
(Aug 14 , 2012)
Attachment C .
Ice Rink License Area
Original License Area =
Parcels to be Swapped =