SR 12-05-2017 3E
City Council Report
City Council Meeting: December 5, 2017
Agenda Item: 3.E
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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 authorize the City Manager to
execute a second modification to the license agreement with Downtown Santa Monica
Inc., a California-based Corporation, to allow the sale of prepared food in operation of
a seasonal ice rink on City property between the months of October and February.
Executive Summary
In an effort to enhance the annual holiday activity in Santa Monica’s Downtown a
modification to the license agreement to allow for the sale of prepared food at the
seasonal ice skating rink is requested. Since 2007, Downtown Santa Monica, Inc.
(DTSM) has produced a successful public ice-skating rink on the City-owned surface
parking lots at the corner of 5th Street and Arizona Avenue. The existing license
agreement is set to expire at the end of the 2021/22 holiday season. DTSM has
requested approval to sell prepared food and provide an expansion to the food offerings
at the event to include items such as ice cream, hot dogs, and french fries to
accommodate the expectations of patrons and provide a greater variety of food options
than pre-packaged food items.
Background
For the last ten years, DTSM has transformed a city-owned surface parking lot at
5th 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 events attract approximately 60,000 skaters per season and
many spectators, growing into a beloved local tradition.
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The most recent license agreement approved by Council on September 13, 2016
(Attachment A) granted DTSM an extension to the term of the agreement with four, one-
year options for a total license term of nine years as well as the right to replace one
parcel in the license area, 1326 5th Street, for another parcel, 1323 5th Street.
The parcel replacement would allow DTSM to expand community activities associated
with its Winterlit programing, potentially including activities such as an outdoor
cinema, a holiday market, and food truck nights. DTSM decided not to utilize the 1323
5th Street parcel as initially conceptualized.
Discussion
Currently, the license agreement limits the type of food available to only pre-packaged
food items. Due to demand and interest of ICE patrons for a larger selection of food
options DTSM has requested that the license agreement be modified to allow the sale
of prepared food items, which is separate and distinct than the sale of pre-packaged
food items. DTSM has engaged three local businesses from the downtown district to be
involved in the ICE concessions to provide a wider range of food offerings such as ice
cream, hot dogs, and french fries. These prepared food items have been included in the
concession sales since the ice rink began operations this season on November 1. Staff
recommends adding prepared food as a permitted use to the license agreement to allow
DTSM to allow for the sale of prepared food at the ICE/Winterlit activities through the
2021/22 season. If Council does approve the sale of prepared food items then the items
will be removed from the food concession.
DTSM has obtained the required health permit from Los Angeles County. The term of
the agreement expires at the end of the 2021/22 season. If the mixed-
use development proposed for the site initiates construction during
the remaining license term, the existing agreement has provisions allowing for
termination at the City’s discretion. The other terms and conditions of the license
agreement would remain unchanged. DTSM would continue to assume responsibility for
all costs associated with the operation of the ice skating rink including staffing, ancillary
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facilities and equipment, utility charges, and the $1 license fee charged by the
City annually.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Jason Harris, Economic Development Manager
Approved
Forwarded to Council
Attachments:
A. September 13, 2016 Staff Report