SR 09-27-2022 5A
City Council
Report
City Council Meeting: September 27, 2022
Agenda Item: 5.A
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of Amended and Restated Lease with Pacific Park at 380 Santa
Monica Pier
Recommended Action
Staff recommends that the City Council:
1. Make a determination that the actions to execute a new Amended and Restated
Lease Agreement and waive Pier Leasing Guideline’s competitive procurement
requirement as set forth in recommended actions #2 and #3 are exempt under
CEQA guideline 15061(b)(3) and 15302.
2. Authorize the City Manager to negotiate and execute a new Amended and
Restated Lease Agreement with EPR Parks, LLC (Tenant) with respect to Pacific
Park to extend the term of the lease, provide an additional two 10-year extension
options to extend the term up to May 25, 2070, allow alcohol service subject to
regulatory approvals, and incorporate additional new business terms as outlined
in a Draft Term Sheet negotiated by the parties; and
3. Waive the Pier Leasing Guidelines competitive procurement requirement in
granting the extension of lease term.
Summary
Pacific Park is a two-acre family friendly amusement park located at 380 Santa Monica
Pier and is owned by EPR Parks LLC and operated by Premier Parks. When Pacific
Park opened in 1996, it was the first full-fledged amusement park to operate on the Pier
in over 65 years. Featuring 12 rides including an 85-foot solar powered Ferris Wheel, a
collection of midway game booths, and a variety of retail and food outlets, Pacific Park
is among the City’s top sales tax producers and one of the City’s largest employers.
Tourism and economic impact studies have shown the Pier and Pacific Park are major
contributors to the Santa Monica and regional economy. The updated lease would
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extend the current agreement through 2050, with two 10-year extension options, ending
the lease in 2070 and modifying other terms agreeable to both parties.
The proposed amended and restated lease would significantly enhance the value of
Pacific Park’s operation and allow them to get favorable financing to maintain the Park
as a top-level attraction. As a result of the enhanced value of the Park, the City’s
revenue share would be increased as well.
Discussion
Pacific Park’s initial lease term expires in 2026 with two 10-year options remaining. If
both options are exercised, the lease would terminate in 2046. Pacific Park (Tenant)
submitted a proposal to the City (Landlord) on August 28, 2020, which sought to modify
certain provisions of its existing lease, commit significant and on-going capital
investment, and resolve a dispute between the Parties regarding substructure and
decking improvements. The Parties commenced good faith negotiations to structure
mutually acceptable terms and conditions for Council’s consideration (Attachment A.
Term Sheet). The following summarizes the major key business terms and conditions
agreed to in concept by the Parties to be incorporated into a new Amended and
Restated Lease, subject to Council approval.
Term: Initial term of the lease to be extended by four years and will expire on May 25,
2030. The Current Lease provides for two ten-year extension options which would
terminate in 2050. The new lease would grant Tenant two additional ten-year options to
the Current Lease thereby potentially extending the term until May 25, 2070.
Waiver of Rent Reset: The Current Lease provides Landlord the opportunity to reset the
rental rate to reflect fair market rent during option periods. Based on a recent evaluation
of fair market rent for comparable amusement parks, Landlord has opted to maintain the
current rent structure as it has been determined to reflect fair market value. Percentage
rent will continue at ten percent (10%) of gross receipts in excess of $11,000,000 per
calendar year. Base Rent (the minimum rent due under a lease) and Common Area
Maintenance (CAM) Charges will continue to be adjusted annually by increases in the
Consumer Price Index. An analysis of competitive amusement park lease rates
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prepared by the Tenant and scrutinized by the City’s consultant suggests that current
lease rates are among the highest in the industry which in turn would suggest that a
near term reset of rents would not yield an increase in rent.
Modify definition of Gross Sales: Certain provisions in the Current Lease will be
amended to eliminate exclusions from the definition of Tenant’s Gross Receipts. These
modifications will result in the increase in the Tenant’s Gross Receipts for the purpose
of calculating the amount of Percentage Rent due to the City and represents an
effective rent increase.
Elimination of Rent Credit: Tenant is responsible for the costs of certain public safety
services described in a Settlement Agreement and Release dated March 27, 2000,
however the annual rent credit provided to the Tenant in the current Lease will be
eliminated. Elimination of rent credit represents an effective rent increase.
Sale of Alcohol: Sale of alcoholic beverages as part of the Tenant’s food operations will
be permitted, subject to regulatory approvals and conditions that may be required as
part of the State and local alcohol permit approval process. Lease will acknowledge
that operation of a restaurant on the Premises is a permitted use.
Substructure and Decking: To resolve the ongoing dispute between Landlord and
Tenant with respect to responsibility for maintenance, repair and replacement of the
improvements underlying the Pier and necessity of these improvements for supporting
Tenant’s rides and maintenance of decking within the premises, Tenant will be solely
responsible for the maintenance, repair and replacement of all improvements which
support Tenant’s rides and decking within its premises, except in the event of a Pier
Casualty (damage or destruction of the Pier caused by a casualty event such as fire
which renders the Pier wholly or partially unsound). Landlord will continue to be
responsible for all maintenance, repair and replacement of all other improvements
supporting the Pier, subject to CIP budget appropriation.
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Future Capital Investment: Tenant will spend a minimum of $10 million in capital
improvements/capital repairs during the five-year period commencing in the calendar
year after Tenant’s annual revenue returns to pre-pandemic levels which based on
revenue trends could occur within this or the following calendar year. Thereafter,
Tenant will commit to capital improvements/repairs of a minimum of $5 million during
each succeeding five-year periods including the extension periods. The $5 million
requirement will be adjusted by increases in the Construction Cost Index. Each year the
Tenant would be required to provide Landlord with a report documenting the
expenditures on capital improvements and capital repairs performed during the previous
year.
The Park’s total capital improvement commitment would be a minimum of $55 million in
today’s dollars, comprised of $14 million for long term maintenance of the decking and
substructure, and a minimum of $40 million on future capital improvements. Actual
capital requirements will be indexed to keep up with construction costs.
Other proposed terms: Additional terms include: (a) Tenant’s waiver of a $1.5 million
reimbursement claim for past substructure and decking work; (b) elimination of a
requirement on the City to maintain $8 million cash on hand reserve in the event of a
Casualty; (c) upon a future sale of the lease, the City would receive a Transfer Fee of
0.25% of net sale proceeds (d) addition of a Refinance Liquidity Test (120% debt
coverage ratio); and (e) addition of financial requirements prior to end of lease regarding
improvements. There is also an agreement to clean up inconsistent language in the
existing lease, including the provisions governing virtual reality games and devices.
Deviation from Pier Leasing Guidelines
Under the Council-approved Pier Leasing Guidelines (Appendix B. Guidelines), the Pier
Corporation is delegated the authority to recommend to the City Manager the execution
of leases which conform to said Guidelines. Both Pier Corporation recommendation
and Council approval of Pier leases are required when a proposed lease diverges from
the Guidelines or for lease terms that are more than 25 years.
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The Guidelines provide the framework for fair and consistent leasing and licensing of
City-owned property on the Santa Monica Pier. The Guidelines provide parameters and
general policy on mix of uses, standards and terms, and tenant recruitment and
selection. When substantive terms or process deviate from the Guidelines, Council has
the authority to grant exceptions.
The proposal deviates from the Guideline’s requirement for a competitive public process
as lease renewals or extensions are not automatically offered to tenants.
Section 6. subsection I. and subsection II. state:
I. “The Santa Monica Pier is public property; therefore all leases and
licenses will be subject to an open and competitive public process.”
and
II. “Lease renewals will not be automatically offered to tenants. As vacancies
arise either by lease expiration or earlier termination, recruitment for
occupancy will be conducted in accordance with the Leasing Guidelines”
The Guidelines do support extended lease terms when correlated to a substantial level
of capital investment, use and size, and allowing longer lease terms for leases with
larger footprints when furthering the Pier’s goals and objectives outlined in the
Guidelines.
Section 7.2. regarding Term states:
“Rental lease terms for commercial space on the Pier shall be negotiated
based on the level of capital investment, use, size of the space (leases for
larger footprints are normally for longer terms) and complementary character
of the operation with the Pier Leasing Goals and Objectives. These factors
also will be balanced against the City’s policy of ensuring that public sites
periodically do become available for a public competitive process.”
Staff concluded that waiving the competitive procurement process by extending the
lease would not have a negative fiscal impact on the City as the proposed lease
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modifications would provide the City with significantly more benefit than might have
resulted from a full RFP process seeking competing amusement park proposals.
Furthermore, the Tenant conveyed that if the City were to have pursued a competitive
process in considering the extended term, they would have withdrawn their request and
instead would continue to operate under the remaining term granted in the current
lease.
Financial Analysis
Staff engaged economic and real estate consultant Allan D Kotin & Associates (ADK&A)
to provide economic and financial analysis of the proposed amended and restated
lease. Work performed by ADK&A included an analysis and valuation of the addition
of alcohol sales into future concession operations, additional lease extension options,
elimination of exclusions to gross sales, amusement park fair market rent comparisons,
past and estimated future costs of maintaining, repairing, and replacing deck boards
and substructure, as well as other economic items discussed during negotiations. In
performance of this evaluation ADK&A was given access to proprietary financial
documents and financial projections. Increase in rent to the City under the proposed
lease versus the current lease is illustrated in Exhibit D.
ADK&A found that the proposal presented in the Term Sheet is economically feasible,
mutually beneficial to the Tenant and City, and conveys roughly equal value to the
parties. The proposed amended and restated lease requires substantial and continuing
capital investment in the Pier and leasehold by the Tenant, provide an exceptional
return to the City and enable the Tenant to maintain its competitive position with respect
to other amusement parks and attractions. Furthermore, it ensures performance of key
obligations by future leasehold owners in inflated dollars by contractually obligating
indexed investment and maintenance obligations.
Commission Action
At the Pier Corporation board meeting on May 16, 2022, the Board supported the
proposed amendments and approved forwarding to Council a recommendation for
approval.
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Environmental Analysis
CEQA applies only to projects that have the potential for causing a significant effect on
the environment. A project is not subject to CEQA under CEQA Guidelines Section
15061(b)(3) “where it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment.” The proposed
extension of the lease for Pacific Park would not result in a physical environmental
effect on the environment.
In addition, Section 15302 exempts Class 1 projects from CEQA, which include the
“operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of
existing public or private structures [or] facilities, including streets, sidewalks, bicycle
and pedestrian trails, and similar facilities. The project consists of the extension of the
Pacific Park lease. This lease extension would allow for continued operation of Pacific
Park and would not necessitate the construction of new buildings or facilities that would
result in a physical impact. Therefore, the project qualifies as a Class 1 exemption.
Past Council Actions
Meeting Date Description
12/14/2010 Assignment of Santa Monica Amusements LLC Lease
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended actions for FY 2022/23. However, it is anticipated that the proposed
modifications to the lease terms will result in an increase in lease revenues in future
years. Staff will adjust revenue budgets accordingly as part of the FY2023-25 biennial
budget process. Revenues will be deposited into account number 53700001.409840.
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Prepared By: Elana Buegoff, Pier Administrator
Approved
Forwarded to Council
Attachments:
A. Term Sheet
B. Pier Leasing Guidelines
C. 12/14/2010 Staff Report
D. Rent Projection
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11055804.6
TERM SHEET BETWEEN THE CITY OF SANTA MONICA (“LANDLORD”)
AND EPR PARKS, LLC (“TENANT”) WITH RESPECT TO PACIFIC PARK
Set forth below are the principal business terms for the amendment and restatement
of that certain Amended and Restated Lease Agreement between Landlord and Tenant dated
as of January 1, 2000 (the “Current Lease”). The parties contemplate that a new lease will
be signed based on the Current Lease, as amended by the terms set forth herein and
additional minor modifications as appropriate to eliminate any inconsistencies and
conflicting provisions in the Current Lease.
1. PREMISES: Tenant will continue to lease the 70,000 square foot area of the
Newcomb Pier known as Pacific Park. Tenant also occupies a small area adjacent to the
Premises pursuant to a License Agreement, renewed by mutual agreement on an annual
basis, which is not considered as part of the Premises.
2. TERM/GRANT OF EXTENSION OPTIONS: The term of the Current
Lease will be extended by four (4) years and will expire on May 25, 2030. The Current
Lease provides for two (2) ten (10) year extension options. Landlord will grant Tenant two
(2) additional ten (10) year options to extend the term of the Current Lease, potentially
extending the term until May 25, 2070
3. RENT:
3.1. Base Rent: Annual Base Rent is currently Five Hundred and One
Thousand, Two Hundred Ten Dollars ($501,210), and Tenant’s Annual Share of
Operating Expenses (“CAM Charges”) is One Hundred and Seventy Eight
Thousand, Four Hundred and Forty Five Dollars ($178,445), payable in equal
monthly installments. Base Rent and CAM Charges will continue to be adjusted
annually by increases in the Consumer Price Index (though not less than two
percent (2%) and not more than five (5%) per year).
3.2. Percentage Rent: Percentage Rent shall continue in the amount of
ten percent (10%) of gross receipts in excess of $11,000,000 per calendar year.
Certain provisions in the Current Lease will be amended to eliminate exclusions
from the definition of Tenant’s Gross Receipts. These modifications will increase
the amount of Tenant’s Gross Receipts for the purpose of calculating the amount of
Percentage Rent due Landlord.
3.3. Base Rent Credit: The provision granting Tenant a credit for the
cost of certain police services described in the Settlement Agreement and Release,
between Landlord and Tenant, dated as of March 27, 2000, will be eliminated.
3.4. Rent During Option Terms: The fair market rent adjustments at the
commencement of each option term will be eliminated to facilitate long-term
financing opportunities for Tenant.
5.A.a
Packet Pg. 29 Attachment: Term Sheet (5145 : Pacific Park Lease Extension)
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4. MAINTENANCE AND REPAIR OF PIER AND PREMISES:
4.1. Pier Common Area: The areas comprising the Pier Common Area
will be clarified, specifically to exclude the Pier Bridge. Landlord will continue to
be responsible for the maintenance, repair and replacement of the Pier Common
Area, subject to CIP budget appropriation. Prior to execution of the New Lease,
Tenant will conduct an inspection of the Pier Common Area. Absent the
identification of any issues which Landlord declines to address, Tenant will accept
the Pier Common Area in “As-Is” condition as of the date of execution of the New
Lease.
4.2. Pier Substructure: The Current Lease will be amended to resolve
the ongoing dispute between Landlord and Tenant with respect to responsibility for
maintenance, repair and replacement of the improvements (i.e., pilings and caps)
underlying the Pier and supporting Tenant’s rides. The provisions in the Current
Lease allocating responsibility for maintenance, repair and replacement of the Pier
Substructure to Landlord will be eliminated, except as noted below in the event of a
Pier Casualty. Tenant will be solely responsible for the maintenance, repair and
replacement of all improvements which support Tenant’s rides, except as noted
below in the event of a Pier Casualty. Landlord will be responsible for all
maintenance, repair and replacement of all other improvements supporting the Pier,
subject to CIP budget appropriation. An exhibit identifying the physical
components of each party’s substructure responsibilities will be attached to the
New Lease.
4.3. Pier Decking: The Current Lease will be amended to resolve the
ongoing dispute between Landlord and Tenant with respect to responsibility for
maintenance, repair and replacement of Pier decking located inside Pacific Park.
Provisions in the Current Lease allocating responsibility for maintenance, repair
and replacement inside Pacific Park will be eliminated, except as noted below in
the event of a Pier Casualty. Tenant will be solely responsible for the maintenance,
repair and replacement of all Pier Decking located on the Premises, except as noted
below in the event of a Pier Casualty. Landlord will be responsible for the
maintenance, repair and replacement of all other decking located on the Pier. If a
party initiates replacement of decking boards which would naturally extend beyond
its area of responsibility, it will extend repair so that the full length of a board is
replaced.
4.4. Pier Casualty: In the event of a casualty (e.g. fire, earthquake)
Landlord will continue to be required to repair all components of the Pier,
including all decking and substructure, subject to the availability of insurance
proceeds and CIP budget allocation. The Current Lease requires the Landlord to
spend up to Eight Million Dollars ($8,000,000) in excess of available insurance
proceeds in the event of a Pier casualty. This requirement will be eliminated.
4.5. Waivers: The parties will waive all claims against each other with
respect to liabilities that have accrued for the maintenance, repair and replacement
of the Pier Substructure and decking, with neither party admitting responsibility for
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Packet Pg. 30 Attachment: Term Sheet (5145 : Pacific Park Lease Extension)
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prior repairs. Tenant’s waiver to include claims for all amounts spent to date on the
Pier Substructure and decking. The parties will waive the right to consequential
damages (e.g. lost profits) against the other party, the scope of which will be
negotiated in the New Lease.
5. FUTURE IMPROVEMENT TO PREMISES:
5.1. Capital Improvement and Capital Repairs: Tenant will spend at
least Ten Million dollars ($10,000,000) in capital improvements/capital repairs
during the five (5) year period commencing in the calendar year after Tenant’s
annual revenue returns to pre-pandemic levels (i.e. greater than $40,000,000).
Thereafter, Tenant will commit to capital improvements/repairs of at least Five
Million Dollars ($5,000,000) during each succeeding five (5)year period, adjusted
for periods Pacific Park is closed, for events of “force majeure” e.g. casualty,
prohibited access, governmentally ordered closure and pandemic. The Five Million
dollar requirement will be adjusted every five (5) by increases in the Construction
Cost Index published by the Engineering News Report, (though not less than two
percent (2%) and not more than five (5%) per year). The minimum commitments
will not be a cap on Tenant’s obligations if the cost to fulfill its maintenance, repair
and replacement obligations exceeds such amounts. No later than ninety (90) days
after the end of each calendar year, Tenant shall deliver to Landlord a report of
capital improvements/capital repairs performed during the previous calendar year.
6. PERMITTED USE:
6.1. Food Service: Landlord will acknowledge that operation of a
restaurant on the Premises is a permitted use.
6.2. Alcoholic Beverages: The New Lease will clarify that the service of
alcoholic beverages will be permitted, subject to regulatory approvals. Upon
Landlord’s approval of this Term Sheet, Landlord, will cooperate with Tenant’s
effort to secure regulatory approvals, including the immediate signing of Tenant’s
CUP application.
6.3. Virtual Reality Rides: The New Lease will clarify that Landlord
will be permitted to operate and allow the operation of virtual reality rides in the
Pier Commercial Area, provided that Tenant is afforded the right of first
opportunity to operate such rides, per the provisions of the Current Lease.
7. SALE/TRANSFER FEE: Tenant will pay Landlord a sum equal to one
quarter of one percent (0.25%) of the Net Sales Proceeds, to be defined in the Amended
Lease, upon the future sale of Tenant’s entire interest in the New Lease.
8. DEBT SERVICE COVENANT: Tenant will covenant that principal
amount of any new leasehold mortgage loan may not exceed the higher of: (A) the
outstanding balance on an existing loan which it replaces; or (B) a loan with scheduled
annual payments of principal and interest such that the debt service coverage ratio (DSCR)
at the time of incurrence does not exceed 120%. DSCR is calculated by dividing the
Adjusted Income for the 12 calendar month period preceding incurrence (or, if lower, the
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Packet Pg. 31 Attachment: Term Sheet (5145 : Pacific Park Lease Extension)
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Adjusted Income for the 12 calendar month period before that) by the scheduled annual
payments of principal and interest under the new debt. For the purposes hereof, "Adjusted
Income" means Net Income + Depreciation/Amortization + all other non-cash and
discretionary items + Interest Expense.
9. OBLIGATIONS AT THE END OF THE TERM: Per the Current Lease,
Tenant will continue to be obligated to remove all rides and other improvements from the
Premises at the end of the term, provided, however that Landlord will be afforded the right
to purchase said rides and improvements at the then current fair market value pursuant to an
agreed upon appraisal process, to be completed no later than six (6) years before the end of
the term. If City declines to exercise its right to purchase the rides and other improvements,
Tenant will post a bond or other reasonably acceptable security to guarantee its removal
obligations.
10. CLEAN-UP PROVISIONS: The parties recognize that certain provisions
in the Current Lease must be updated and/or revised to remove ambiguities and conflicts.
Such provisions include audit rights, dispute resolution procedures, including a meet and
confer process, and other conflicts in agreed upon terms for the New Lease.
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Packet Pg. 32 Attachment: Term Sheet (5145 : Pacific Park Lease Extension)
Approved by the SMPC: May 15, 2017
Approved by City Council: June 13, 2017
SANTA MONICA PIER LEASING GUIDELINES
These Santa Monica Pier Leasing Guidelines (“Guidelines”) provide the framework for
fair and consistent leasing and licensing of City‐owned property on the Santa Monica
Pier. The Guidelines provide parameters and general policy on mix of uses, standards
and terms, and tenant recruitment and selection. They reflect the general intent and
goals of the City of Santa Monica (“City”) at the time they were approved and do not
convey any right upon anyone, or impose any obligation on the City. The City may from
time‐to‐time change these Guidelines or depart from these Guidelines without liability to
anyone.
1. INTRODUCTION
1.1. Background
The Santa Monica Pier began in 1909 with the construction of the Municipal Pier – the
straight portion that begins at the base of the bridge from Ocean Avenue and continues
for more than 1,500 feet over the beach and Santa Monica Bay. Santa Monica Pier’s
ability to attract large crowds impressed Charles Looff, an amusement park pioneer who
had built Coney Island’s first carousel in New York. In 1916, after negotiations with the
City of Santa Monica, Looff constructed his “Pleasure Pier” alongside the Municipal Pier
(now known as the Newcomb Pier). The Pleasure Pier featured the landmark Looff
Hippodrome building, which now is listed on the National Register of Historic Places
and houses an operating vintage wooden merry‐go‐round.
Today, the Santa Monica Pier (“Pier”) is known as one of the region’s premier
recreational and entertainment destinations, attracting over six million visitors annually.
The Pier offers spectacular ocean vistas, year round events and attractions, and is home
to a changing collection of restaurants, shops, activities and experiences.
1.2. Unique Character of Pier and Pier Environment
The Santa Monica Pier has been an icon for both the local community and Southern
California for over a century. Over this time it has provided a broad variety of
entertainment and experiences that directly relate to its beach and ocean setting. These
activities and services are predominately specific to the Pier’s on‐going “microculture”,
history and surrounding community rather than a replication of things at other piers and
places. The maintenance of the Pier’s own “personality” is a core value of the Santa
Monica community and central to the recruitment and selection of tenants and licensees.
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Packet Pg. 33 Attachment: Pier Leasing Guidelines (5145 : Pacific Park Lease Extension)
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2. LEASING GOALS AND OBJECTIVES
The Pier is a valuable historic resource of the City to be developed, used and preserved
as a public resource for the enjoyment by the general public. The commercial leasing
and licensing program on the Pier is to be managed for the benefit of the general public
and in a manner consistent with the following goals and objectives:
I. Promote and maintain the compatible uses of City‐owned property available for
lease and license located on the Pier in a manner supporting an attractive, safe and
accessible environment for visitors and the residential community;
II. Provide for a diversity of business, entertainment, event, educational, and cultural
activities as well as active and passive recreational opportunities on the Pier;
III. Promote quality and value of goods, food and services provided by the commercial
operators on the Pier;
IV. Establish pricing of leasehold and license occupancies that reflects fair market value
to help support the fiscal self‐sufficiency of the Pier;
V. Assure access to and use of City‐owned properties by the general public through a
leasing and licensing program that promotes the orderly and equitable management
of tenancies and licenses;
VI. Preserve and promote the unique, eclectic and community recreational character
of the Pier;
VII. Preserve and build on the historic elements and character of the Pier while
ensuring its relevance and vitality to current and future generations;
VIII. Achieve fiscal, social and environmental sustainability;
IX. Enhance access and encourage both local and distant visitors to visit and enjoy the
Pier;
X. Harmonize with the surrounding beach and downtown community;
XI. Take an incremental but continuous approach to change to advance
commercial, cultural and civic opportunities on the pier; and
XII. Seek a mix of uses and tenants that will contribute to the animation of the Pier.
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Packet Pg. 34 Attachment: Pier Leasing Guidelines (5145 : Pacific Park Lease Extension)
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3. MANAGEMENT STRUCTURE
Leasing and licensing on the Pier is the responsibility of the City of Santa Monica through
its Office of Pier Management (“OPM”) in coordination with the City’s Economic
Development Division. OPM also oversees Pier maintenance and operations. Pier
events, filming and marketing are managed by the Non‐Profit Santa Monica Pier
Corporation (“SMPC”) in accordance with Event and Marketing Guidelines developed by
the SMPC and subject to Council approval.
4. VISION FOR THE PIER AND GUIDING PRINCIPLES
4.1. Vision Statement
A Santa Monica Pier that provides an historic platform and a legacy of colorful visitor
experiences to showcase contemporary events; a community asset that attracts,
welcomes and entertains local, regional, national and international visitors of all
incomes, abilities and interests; a landmark that offers an enticing and changing array of
site‐appropriate active and passive experiences and attractions.
4.2. Pier Guiding Principles
I. The Pier will be a signature attraction of the City of Santa Monica, known and
recognized world‐wide and enjoying a broad base of local community support.
II. The Pier will be an easily accessible and visually prominent destination within the
City.
III. The Pier will provide enticing year‐round experiences and attractions for visitors.
IV. The Pier will attract and engage visitors of all ages and incomes.
V. The historic fabric and character, as well as the environmental sustainability and
structural integrity of the Pier will be documented, celebrated, maintained and
improved.
VI. Pier programming will include both traditional and cutting edge entertainment,
cultural, athletic and educational experiences.
VII. Promotions, sponsorships and private and public revenue‐producing events, will
largely off‐set the cost of popular and free public programming.
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Packet Pg. 35 Attachment: Pier Leasing Guidelines (5145 : Pacific Park Lease Extension)
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5. SUB AREAS AND USES
5.1. Areas
The Pier is approximately 9 acres in size and consists of two adjoining piers:
I. Municipal Pier. The Municipal Pier is the primary walkway of the Pier. It is
approximately 2.5 acres in size and 1,500 feet in length. This public strolling corridor
provides the main access to restaurants, shops, amusement (e.g. carousel, Pacific Park) and
recreation (fishing, walking, viewing) areas, vending carts and performers.
II. Newcomb Pier. Located south of and adjacent to the Municipal Pier, the Newcomb Pier
(also known as the Pleasure Pier) is approximately 6.6 acres, of which 2.2 acres is currently
used for public parking and special event space.
Most merchants, facilities, and events are on the Newcomb Pier while vending carts,
kiosks and fishing activities are primarily on the Municipal Pier.
5.2. Commercial and Public Areas
The Pier presently has approximately 130,000 square feet of leasable commercial space
comprised of buildings, kiosks, carts and deck area. The current Pier tenant mix is
approximately 70 percent amusement, 25 percent dining, four percent educational and one
percent retail.
Public facilities and service areas on the Pier include the Carousel building which houses City
and SMPC offices; a Harbor Guards station; a Police Sub‐Station; a Pier Maintenance
workshop; and a second floor public observation deck. In addition there are central and
west end public restroom facilities, a central trash & recycling shed, and a 270 space public
parking lot.
The “Santa Monica Pier Development Program” approved by Council on February 9,
1988, supported a development program that consisted of approximately 150,000 square
feet of commercial area. A new planning effort under development by the City with the
assistance of the SMPC, will explore access enhancements, potential expansion of existing
activities, and new commercial and civic opportunities. This enhancement effort, and
future efforts, may alter the overall mix of activities and uses on the Pier over time to
reflect the needs of the Pier and public and changing market conditions.
5.A.b
Packet Pg. 36 Attachment: Pier Leasing Guidelines (5145 : Pacific Park Lease Extension)
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6. GENERAL LEASING STANDARDS
Leases and licenses shall be consistent with the Pier Leasing Goals and Objectives.
I. The Santa Monica Pier is public property; therefore all leases and licenses will be
subject to an open and competitive public process.
II. Lease renewals will not be automatically offered to tenants. As vacancies arise either
by lease expiration or earlier termination, recruitment for occupancy will be conducted
in accordance with the Leasing Guidelines.
III. Preferred Uses include, but are not limited to, a range of entertainment and
commercial products and services that will appeal to and serve both the residential
community and area visitors. The City may change uses as leases expire in order to
attract a tenant mix consistent with the Guideline’s goals and objectives.
IV. In order to promote merchant diversity on the Pier the award of multiple
leaseholds and/or licenses to an individual tenant, licensee or operator is
discouraged but may be allowed subject to conditions provided under Section
7.5.
V. All prospective tenants must provide evidence of economic viability and
appropriateness to the Pier of their proposed uses and business plan, as well as their
capacity and ability to develop and maintain their operation.
VI. Tenants and licensees will be expected to provide quality, visitor‐ supporting services
or activities throughout the term of their lease or license, including sustained high
levels of maintenance and cleanliness. Leases and Licenses will contain performance
standards to ensure on‐going quality and service. Failure to maintain performance
standards will be considered a material breech and subject the lease or license to
termination.
VII. Tenants and licensees are expected to be active members of the Pier community,
participating in its operational life and working together with the City and other
tenants to enhance the Pier visitor experience.
VIII. Assignment or subletting of leases is prohibited without the written consent of the
Landlord. Landlord’s consent will be subject to express standards and conditions set
forth in the lease. Assignment or subletting of licenses is prohibited without
exception.
IX. Operation and improvements to lease and license areas are subject to the City’s
standard regulatory review and approval process.
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7. MINIMUM/BASIC LEASE TERMS AND CONDITIONS
7.1. Diversity & Permitted Uses
The City will seek operators who offer creative, imaginative and unique merchandise, food
options and activities that are thematically compatible with the Pier yet not overly
duplicative of the products and services already offered on the Pier.
In order to maintain an appropriate tenant mix consisting of distinct and diverse
merchandise, food and services the City will endeavor to limit the number of merchants who
carry the same or similar types of offerings. A ‘Permitted Use’ clause shall be included in
every lease and license to describe the type of business that will be operated within the
leased premises or license area. The Permitted Use description should clearly describe the
type of business the tenant or licensee intends to operate and the merchandise, food or
service the tenant intends to offer for sale.
The purpose of the Permitted Use clause is to regulate the duplication of merchandise or
services; however, it does not grant any tenant or licensee an exclusive right to sell any
item or service. Exclusivity rights shall not be granted to any merchant on the Pier.
7.2. Term
Rental lease terms for commercial space on the Pier shall be negotiated based on the level
of capital investment, use, size of the space (leases for larger footprints are normally for
longer terms) and complementary character of the operation with the Pier Leasing Goals
and Objectives. These factors also will be balanced against the City’s policy of ensuring
that public sites periodically do become available for a public competitive process.
To maintain the vitality of the Pier the City needs to insure its ability to address the mix of
uses and activities on the Pier over time. Therefore, it needs to have a variety of lease and
license timeframes and not have the majority of licenses or leases with very long terms
or the majority of leases ending simultaneously‐‐ thus limiting the City’s ability to deal with
evolutionary changes in Pier visitor needs.
7.2.1. Recommended Terms for Leases and Licenses
I. Portable Vending Carts
The recommended term for vending cart licenses is from 6 months to 1 year.
These licenses should be subject regularly to a public process to accommodate uses that
meet contemporary Pier needs and to allow frequent opportunities for businesses interested
in operating on the Pier.
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II. Fixed Location Kiosks
The recommended term for fixed location kiosk licenses and concessions is
from 3 years to 5 years.
III. Deck Space Rental
The recommended term for the commercial license of deck space is from 1 day
to 2 years, depending upon use and circumstances.
IV. Viewers and Transmitters
The recommended term for license and concession of cameras, antennas, and
coin‐operated telescopes and binoculars range is from 1 to 5 years depending on use
and circumstances.
V. Retail Shops, Restaurants, Amusements and Aquarium
The recommended terms of leases for retail shops, restaurant, attractions and
the aquarium range from 5 years to 25 years ‐‐ inclusive of any option periods.
Generally, terms of five years will be granted if there is no substantial new
capital investment in structures, structural improvements or equipment. If a tenant is
required to make substantial new capital investment in structures, structural
improvements or equipment then terms of ten years to twenty‐five years may be
considered. Additional options to extend the term provided under Section 7.5, may be
offered contingent upon the amortization and financial requirements of new investment
and findings of benefit to the City.
VI. Leaseholds Subject to Development Agreements
Terms of leaseholds that are subject to a Development Agreement will be
negotiated with the City of Santa Monica. A Development Agreement is a negotiated
contract with the City that includes a developer’s contribution of significant community
benefits and requires review by the Planning Commission and the Landmarks
Commission, and final approval by the City Council.
7.3. Rates
Rents, fees and charges on the Pier are expected to reflect fair market value.
Adjustments can be made to provide for diverse uses consistent with the Pier Leasing
Goals and Objectives or significant offsetting capital investment that provides the Pier
permanent benefits also consistent with the Goals and Objectives.
In addition to a base rent, the City may elect to require that a lease include a percentage
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rent provision, which can be differentiated by categories of sales. The City, as Landlord,
shall have the right to audit tenant's financial records to ascertain that the gross sales
figures reported by the tenant are accurate.
Leaseholds with preferred uses for research and public educational purposes (e.g. Santa
Monica Pier Aquarium) may be maintained at other than fair market rental rates. The
City will seek to reasonably minimize its costs associated with these activities by
participating in ancillary gross receipts from commercial activities at educational
facilities.
7.4. Hours of Operation
The Santa Monica Pier is a public venue open 365 days per year 24 hours per day. Pier
merchants will be encouraged to remain open for business with adjustments related to
the time of year and type of business. Minimum business hours when all businesses are
expected to be in operation, unless otherwise specified, shall be daily between the
hours of 11 am and 9 pm. Tenants will not be required to operate on Christmas Day and
Thanksgiving.
7.5. Modifications Based on Findings of Exceptional Community Benefit
Diversity of ownership in Section 6. IV and the length of term in Subsection 7.2.1. V may
be modified if all four of the following findings can be made and documented:
I. The proposed project will provide an exceptional opportunity to fulfill a goal or
objective of the Pier Guiding Principles and will enhance the unique character
and the viability of the Pier.
II. The proposed project will require substantial capital investment and provide an
exceptional return opportunity to the City.
III. The proposed project will enhance the mix of uses on the Pier while still being
consistent with the Pier’s unique character.
IV. The proposed project will provide a significant enhancement to the visitor
experience at the Pier.
7.6. Triple Net Lease
Unless otherwise specified, Tenant shall pay all property taxes and assessments
(including Possessory Interest Tax), insurance, utilities and Common Area Maintenance
Fees‐‐as defined below‐‐as well as any duly‐enacted future assessment or fee that the
City may elect to institute.
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7.7. Common Area Maintenance Fees
As a condition of occupancy of a Pier building, Leasehold tenants shall pay a
proportionate share of the City’s Common Area Maintenance (“CAM”) cost to manage,
maintain and provide security to Santa Monica Pier. On January 1, 2000, the applied
Common Area Maintenance cost was modified to provide for a fixed CAM payment with
biennial increases of not less than three percent (3%) and no greater than six percent
(6%) per annum. Currently the CAM fee is $7.65 per square foot per year.
7.8. General Operational and Performance Standards
Tenants must maintain high quality and uniform standards of operation and service to
sustain and increase demand for their business, maintain positive customer experience,
and enhance the overall reputation of the Santa Monica Pier. In order to achieve the
highest standards of operations the following standards may be incorporated into each
lease and license:
I. Tenants are expected to staff and operate their businesses in a first‐class and
reputable manner, commensurate with transacting a high volume of business on the
Pier.
II. Periodically, Landlord or Tenant may engage a third party “mystery shopper” to
visit and evaluate Pier businesses. Tenant will provide an action plan for improvement if
so requested by the Landlord.
III. Tenants shall respond to Landlord’s written inquiries regarding any complaints
or issues, including postings on social media sites related to Tenant’s operations. Tenant
will provide an action plan for improvement if so requested by the Landlord.
IV. Food operations that receive a designation from the Los Angeles County
Department of Health of less than an “A” more than three times during the term of the
lease or license, except to the extent that any such rating is restored to an “A” within 30
days of receiving the lower grade, will be in default and breach of the lease/license.
Landlord recognizes that third party action may require additional time to reinstate “A”
rating and may request tenant to provide an action plan for improvement.
V. Any Lease extension option will be conditioned upon Tenant’s economic
performance. For example, Tenants with a percentage rent clause should have reached
rent levels requiring percentage rent payments to City for at least two of the four rental
years immediately prior to the expiration of the lease.
VI. Landlord may establish an annual review process to be performed by Office of
Pier Management Staff to evaluate key criteria utilizing a standardized rating scale.
VII. Each Lease or License may have additional operational and performance
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standards applicable to the particular Tenant’s operation.
7.9. Maintenance and Environmental Responsibilities
Lessees and Licensees shall be responsible for maintaining their facilities in
attractive and safe condition, in compliance with applicable building codes and all
applicable environmental laws, ordinances, regulations and standards. This
includes all areas under their lease, the facades and exterior presentations, and
appurtenance’s of their facility or operation.
8. CITY POLICY PROVISIONS
8.1. Labor Peace
The City owns the Pier and has a financial or proprietary interest in Pier businesses
engaged in visitor‐serving commercial activities. Some of these businesses are in
industries that have a history of labor/management conflict. Risk of interruption
of rental revenue and common area maintenance fees received by the City from
Pier businesses would be minimized if such businesses were assured of labor
peace. An appropriate labor peace provision would minimize the City’s exposure to
revenue interruption and disruption of public recreational enjoyment of the Pier.
Therefore, new or substantially amended agreements for leasehold operation shall
provide that the tenant will not engage in practices that impede employees’ ability
to organize and contract with a labor organization for the purpose of collective
bargaining. Such prohibited practices include harassment, intimidation, “captive
audience” anti‐ union meetings or illegal terminations of workers in retaliation for
organizing. A substantial amendment is defined as a change of use of the property,
an increase in seating or square footage of more than 25%, or an extension of lease
duration. Tenant engagement in prohibited practices shall constitute an event of
default under the terms of lease. Affected leases would be those businesses having
five or more full or part‐time employees that engage in restaurant or visitor‐serving
entertainment activities such as arcades, amusement parks and nightclubs.
8.2. Sustainability
The City of Santa Monica is committed to meeting its existing needs without
compromising the ability of future generations to meet their own needs. Therefore
in order to conserve and enhance local resources, safeguard human health and the
environment, maintain a healthy and diverse economy, and improve the livability
and quality of life for all community members in Santa Monica, each new or
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substantially amended agreement for leasehold operation shall include provisions
that require sustainable practices including:
A. Carbon Foot Print Reduction. Tenant shall use best efforts to help meet City‐wide
carbon footprint reduction goals by minimizing unnecessary use of electricity and water,
minimizing or eliminating use of hazardous or toxic materials, and minimizing single‐
occupancy vehicle trips by facilitating employee use of alternative transportation modes
such as carpools, buses, vanpools, and bicycles. A list of green business best practices is
available at: www.sustainableworks.org
B. Healthy Food/Sustainable Food Provision. Tenant shall exercise best efforts to
procure and promote healthy and sustainable food practices on the Premises.
Approaches include utilizing locally and sustainably grown, organic foods from California;
offering meatless menu options and food that has been minimally processed; and
reducing food packaging waste. Tenant is expected to participate in recycling and
composting programs offered by the City. Information on the City’s Sustainable Food
Commitment is available at: www.sustainablesm.org/food.
C. Non‐Recyclable Food Service Container Ban. Tenant shall comply with the City of
Santa Monica Ordinance (S.M.C.C. 5.44) banning non‐recyclable plastic disposable food
service containers. Information on the Non‐Recyclable Food Service Container Ban is
available at: www.sustainablesm.org/container.
D. Single Use Carryout Bag Ban. Tenant shall comply with the City of Santa Monica
Ordinance (S.M.C.C. 5.45) banning the use of single‐use plastic carry‐out bags.
Information on the Single‐Use Carryout Bag Ban is available
at: www.sustainablesm.org/bag.
A. Forest Stewardship Council Approved Products. Tenant is expected to follow the
recommendations of the Forest Stewardship Council recommended products list in
procurement of supplies.
8.3. Landlord’s Licensing Program
The Landlord and The Santa Monica Pier Corporation may engage in sponsorship
programs applicable to all tenants on the Santa Monica Pier. Tenant shall agree to
participate in and be subject to such sponsorship program(s) so long as the terms of
sponsor products, goods and/or services are at least as favorable to Tenant as the terms
of agreements applicable to the same products, goods and/or services supplied to Tenant
for use on the Premises at the time of Landlord’s or Pier Corporation’s request for
Tenant participation‐‐provided that such sponsorship program does not violate any
contractual agreements entered into by Tenant.
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9. DESIGN GUIDELINES
The Santa Monica Pier 1987 Design Guidelines remain the primary reference
regarding structures on the Pier, encouraging a balanced respect for the historic
architectural elements and unique character of Pier with the intent to advance the
range of activities and services to enhance the visitor experience and success of Pier
operations and businesses. All public and private structural modifications and other
improvements proposed on the Pier will be subject to review for consistency with
the Design Guidelines, without exception.
The City’s Economic Development Division in its proprietary capacity as Landlord
must review and approve in writing all proposed modifications before any regulatory
action, including submission of applications to Planning or Building and Safety. The
regulatory permit and entitlement process involves the City as regulator, not as
Landlord. These are entirely separate roles and approval of one does not mean
approval by the other.
10. TENANCY RELATIONSHIPS
All City‐owned buildings and deck areas on Santa Monica Pier appropriate and
suitable for leasing or licensing by the City to individual tenancies or licensees will
be in accordance with agreements prepared by the City. Each tenant or licensee
will be responsible for interior maintenance and repair and utility consumption at its
sole expense, and the City generally will retain responsibility for maintenance and
repair of roofs and exterior of City buildings, and of the Pier deck and substructure
unless otherwise specified in the lease or license. Structures constructed by tenants
are subject to interior and exterior maintenance and repair by the tenant at its sole
expense. The City shall have a right to inspect all tenant improvements, including
fixed assets that will revert to the City at the end of the lease term, for the purpose
of determining maintenance and repair needs. If necessary, Tenant is responsible for
making repairs to, or replacing, such fixed assets at its sole expense.
11. TENANT RECRUITMENT
All City‐owned buildings and deck areas on Santa Monica Pier appropriate and
suitable for leasing or licensing will be subject to a public procurement and
solicitation process to identify prospective tenants and licensees whose financial and
professional experience, and products and/or services are consistent with the
Leasing Goals and Objectives set forth herein.
Prospective tenants will be sought by publicly noticing the availability of a leasing
opportunity on the City’s web site and through other appropriate forms of
communication designed to reach the intended audience. This may include printed
and electronic advertisements in appropriate trade journals or newspapers; display
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banners on the property; and other forms of outreach to potential operators. In
addition, the City may retain a qualified commercial real estate brokerage firm or
listing agent to market the leasing opportunity, identify prospective tenants, and
cooperate with other realtors.
All prospective tenants must submit a Lease or License Application to the City.
Information contained in the Lease or License Application shall describe the
proposed use for the available space; provide information about the respondents’
experience; provide references; describe in detail the financial capability of the
respondent to perform; and set forth preliminary terms and conditions.
12. EVALUATIVE CRITERIA AND SELECTION
Leasing opportunities at the Pier are very limited. Therefore, each lease is vital in
order to maintain a vibrant mix of uses and sustainable Pier business environment.
This requires an extensive outreach effort and a thorough review and selection
process.
The Pier Manager will appoint an evaluation panel to review all applications
submitted to the City. The panel will include representatives from the Office of Pier
Management; the Economic Development Division; the Pier Corporation; and other
City staff and other organizations and consultants as appropriate.
The panel will review and evaluate applications based on uniform criteria that may
include but are not limited to the following: (i) character, reputation, training, and
experience of the prospective tenant or licensee; (ii) ability, capacity, and skill of the
prospective tenant or licensee to perform; (iii) quality and price of the services or
goods to be provided; (iv) uniqueness and compatibility of proposed product or
service with the Santa Monica Pier, (v) financial capability; and (vi) length of tenure
in an Exemplary Manner (see below) on the Pier.
The selection process will include additional bonus points for existing Pier tenants
and licensees who are deemed to have operated in an Exemplary Manner. The term
“Exemplary Manner” will mean and refer to those Pier tenant or licensees who meet
all of the following criteria: Merchants that throughout the term of their lease or
license have:
(i) provided consumers with relevant and quality merchandise, food and
activities,
(ii) demonstrated a track record of good customer service,
(iii) regularly updated and invested in their operation and premises;
(iv) demonstrated increasing sales volume over time;
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(v) have been productive and active members of the Pier Community; and
(vi) complied with all lease or license provisions, as well as all applicable local,
state and federal laws and regulations.
Proposers may be asked by the panel to participate in an oral interview in order to
clarify or elaborate on their proposal and to demonstrate samples of products or
services. The panel also may request verification of credit history and may contact
references.
The evaluation panel will provide to the Pier Manager its analysis and
recommendation of a preferred respondent or respondents, inclusive of
appropriate bonus points. The panel’s recommendation also may be to reject all
responses, solicit additional information from one or more respondents, or to enter
into exclusive lease or license negotiations with a preferred respondent.
13. LEASE APPROVALS & DELEGATION OF AUTHORITY
The City Manager has the authority to negotiate and execute leases and licenses
with terms of three years or less for uses in accordance with this Leasing Guideline,
and on the basis of written agreements prepared and approved as to form by the
City Attorney.
Leases and licenses with terms of occupancy greater than three years and less than
twenty‐five years, shall require a recommendation of the Pier Corporation Board to the
City Manager to enter into a lease or license with the preferred respondent subject
to specific terms and conditions; enter into exclusive negotiations with a preferred
respondent; reject the recommendation; or direct that additional information be
solicited prior to making a determination. In negotiating leases, staff will refer to any
suggestions or recommendations of the board.
Negotiation of leases and licenses with terms of occupancy greater than twenty‐
five years shall require authorization by Council following a recommendation from
the Pier Corporation Board.
The City Attorney will prepare and approve as to form all lease and license
agreements for review and execution by the prospective tenant or licensee. The
executed lease or license agreement will be submitted to the City Manager If
determined to be in accordance with the Leasing Guidelines, Pier Corporation
Board recommendation, and Council authorization if required, the City Manager
will execute the agreement.
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14. PROTEST/APPEAL PROCESS
Applicants not selected as the preferred respondent by the evaluation panel will be
informed by letter or email. Protestant may file a written protest with the City’s
Economic Development Manager no more than seven (7) calendar days following
the notification. The written protest must set forth, in detail, all grounds for the
protest, including without limitation all facts, supporting documentation, legal
authorities and arguments in support of the grounds for the protest. All factual
contentions must be supported by competent, admissible and credible evidence.
Any matters not set forth in the written protest shall be deemed waived. Any
protest not conforming to this procedure shall be rejected as invalid. The protest
must include the name, address, and telephone number of the person representing
the protesting party.
The Economic Development Manager shall review the merits and timeliness of the
protest and issue a written decision to the Protestant within ten (10) calendar days of
receipt of the protest.
The decision of the Economic Development Manager may be appealed to the City’s
Housing and Economic Development Director by filing a letter appeal within ten (10)
calendar days of the date of the Economic Development Manager’s decision. The letter
of appeal shall set forth, in detail, all grounds for the appeal, including without limitation
all facts, supporting documentation, legal authorities and arguments in support of the
grounds for the appeal. All factual contentions must be supported by competent,
admissible and credible evidence. Any matters not set forth in the letter of appeal shall
be deemed waived. Any letter of appeal not conforming to this procedure shall be
rejected as invalid.
The City’s Housing and Economic Development Director shall review the merits and
timeliness of the letter of appeal and issue a written decision to the Protestant within
seven (7) calendar days of receipt of the letter of appeal. The decision of the Director is
final.
Attachment A. Santa Monica Pier Lease and License Inventory
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ATTACHMENT A.
SANTA MONICA PIER LEASE AND LICENSE INVENTORY (Updated Dec. 2013)
As of the date of adoption of these Guidelines, the buildings and areas on the Santa Monica Pier available
for lease or license consists of (but are not be limited to) the following:
Address Current User/Use Square
Footage
Current Term
Expiration
1600 Oceanfront Walk Santa Monica Pier Aquarium/Marine research
and educational facility.
4,533 sf. June 2018
200‐A Santa Monica Pier Pier Shop/Retail shop offering souvenir items
and books featuring local history and themes.
260 sf. April 2014
200‐B Santa Monica Pier Soda Jerks/‘Old Fashion’ Soda Fountain. 400 sf. July 2025
250 Santa Monica Pier Ristorante Al Mare/Full Service Restaurant with
alcohol and ancillary entertainment.
6,069 sf. +1,033
patios
December 2038
256 Santa Monica Pier Rusty’s Surf Ranch/Full service restaurant with
alcohol service, and with evening music and
entertainment.
3,035 sf. +
1,073 sf. patios
September 2029
258 Santa Monica Pier The Albright (SM Pier Seafood)/Full service
restaurant with alcohol service.
2,557 sf. +
1,392 sf. patio
June 2020
301 Santa Monica Pier Bubba Gump Shrimp Co./Full service restaurant
with alcohol service.
8,955 sf. May 2027
310 Santa Monica Pier Blazing Saddles/Bicycle rentals, with ancillary
sales of bicycle‐related merchandise.
1,292 sf. Oct 2003
month‐to‐month
321 Santa Monica Pier Oatman Rock Shop/Retail shop offering
souvenir items and gifts.
135 sf. April 2013
month‐to‐month
322 Santa Monica Pier Starline Tours/Tour sales, visitor info services. 250 sf. April 2016
330 Santa Monica Pier Pier Burger/Limited service convenience
restaurant without alcohol service.
1,525 sf. +
584 sf. patio
Sept 2023
350 Santa Monica Pier Playland Arcade/Arcade with ancillary retail
sales.
8,603 sf. +
641 sf. patios
June 2031
350‐B Santa Monica Pier Marlene’s Beachcomber/Retail sales of beach
related items.
375 sf July 2009
month‐to‐month
370 Santa Monica Pier Trapeze School NY/ Trapeze school. 10,985 sf. gross
deck area
April 2015
380 Santa Monica Pier Pacific Park/Amusement park with rides, games
and ancillary retail and food service.
70,000 sf. gross
deck area
May 2046
401 Santa Monica Pier Mariasol Cucina/Full service restaurant with
alcohol service.
6,204 sf. + 2,217
sf. patios
March 2028
404 Santa Monica Pier SM Bait and Tackle/Fishing bait and tackle with
ancillary retail and food sales.
292 sf. June 2004
month‐to‐month
Trolley Kiosk 66 to Cali/Pier related souvenir and sundries. 85 sf June 2016
Mobile Vending Carts Pier and/or beach‐oriented retail and food that
is not otherwise available on the Pier.
Aprox 25 sf. each varies
5.A.b
Packet Pg. 48 Attachment: Pier Leasing Guidelines (5145 : Pacific Park Lease Extension)
PacParkWorkingModel with Charts for tables 091922 REM TERM GRAPH 9/19/2022
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
PERCENTAGE RENT REVENUE TO CITY OVER CURRENT TERM OF PACIFIC PARK LEASE
EXISTING LEASE COMPARED TO REVISED LEASE
WITH EXISTING LEASE WITH REVISED LEASE
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Packet Pg. 49 Attachment: Rent Projection (5145 : Pacific Park Lease Extension)