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SR 03-08-2022 3J City Council Report City Council Meeting: March 8, 2022 Agenda Item: 3.J 1 of 5 To: Mayor and City Council From: David White, City Manager, City Manager's Office Subject: Accept Proposal and Enter into Agreement with Major League Baseball for 2022 All Star Event Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a license agreement with Major League Baseball for use of the Pier Deck (Newcomb) Parking Lot and adjacent beach area from July 12-18, 2022 for the “MLB All-Star Oceanfront” Festival. Summary On July 19, 2022, Major League Baseball (MLB) will host its annual All-Star Game at Dodger Stadium in Los Angeles. MLB approached the City proposing to hold an “All- Star Oceanfront” event the weekend preceding the All-Star Game, July 15-17, 2022, at the Santa Monica Pier and adjacent beach area. The All Star Oceanfront event is a free, three-day public festival for fans to enjoy baseball themed activities, games, music, merchandise, and food. Because the proposed footprint of the event extends beyond the Pier Deck Parking Lot that would otherwise be processed via our Community Events Permit and Site Guidelines, a stand-alone license agreement is required to authorize the proposed use by MLB. Given the unique benefits from having a high-profile activation in a signature location tied to a major sporting event, particularly to advance an equitable and inclusive economic recovery in the City, staff is seeking Council approval for the City Manager to negotiate and enter into a License Agreement with MLB to enable its All-Star Oceanfront event. 3.J Packet Pg. 430 2 of 5 Discussion Major League Baseball (MLB) consists of 30 teams in the U.S. and Canada, and its All- Star Game is an annual mid-summer event held since 1933. The venue for the game rotates among MLB ballparks each year, and the 2022 game will be held at Dodger Stadium. MLB plans a series of “All-Star Week” events for fans in the host city, though typically in the immediate area around the ballpark. For this year’s game, MLB is seeking to broaden the reach and appeal of its events by holding a beach-themed “All- Star Oceanfront” festival to enable fans of all ages to join in the MLB All-Star festivities, and they have proposed to hold the event at the Santa Monica Pier and Beach from July 15-17, 2022. The event would feature baseball on the beach, music, interactive games, free giveaways, baseball themed food and beverage, All-Star merchandise, photo ops, sand sculptures and more, and would be free and open to all. Specifically, MLB’s proposal, attached, envisions a number of activations on the Pier Deck Parking Lot including pitching cages, e-sports, sponsor displays and games, an MLB All-Star merchandise shop, food and beverage in conjunction with current Pier tenant restaurants, and local music/DJ entertainment. The adjacent beachfront would feature a “sand lot” baseball diamond for youth and celebrity games, temporary bleachers for viewing, yoga, sand sculptures, and photo ops. In its proposal, MLB has outlined a sustainability plan with a goal of a zero-waste event, a security plan to ensure visitor and public safety, parking and transportation management including bike valet, and close marketing coordination with local partners such as the Pier Corporation, Santa Monica Travel & Tourism, and Downtown Santa Monica, Inc., to support Santa Monica’s hospitality and retail businesses and ensure they benefit from the event. The City’s Community Events Permit process and Site Guidelines do not currently allow for events on the Santa Monica Beach during the peak summer months, in order to preserve maximum access for beachgoers. Outside of summer, beach events are required to have a “beach-related activity” such as beach sports as a primary component. Accordingly, MLB’s proposal could only move forward under existing City processes if it were limited to the Pier Deck Parking Lot, in which case the permit would be administered by the Pier Corporation. Because MLB is seeking use of the adjacent 3.J Packet Pg. 431 3 of 5 beach area just south of the Pier Deck as part of its overall event site plan for the festival, it cannot proceed solely via a Community Events Permit, and would instead require a stand-alone License Agreement with the City. In shaping its event proposal, MLB has engaged extensively with a number of relevant City departments, including the Santa Monica Police Department, Public Works and its Office of Sustainability and the Environment, Mobility and Parking staff within the Department of Transportation, Economic Development/Pier Management, the Community Events Team, the City Attorney’s Office, and the City Manager’s Office. City staff have focused on coordination with MLB to align its event plans with key Council and community objectives—including safety and security of the event site and surrounding areas, environmental sustainability, planning for traffic management and alternative mobility options, and supporting economic development for the City and local businesses at the Pier and beachfront in particular. Staff is supportive because of the potential economic impact and the opportunity to leave a lasting positive legacy for the community and the City’s brand. MLB has also pledged to work with Santa Monica’s youth baseball and softball leagues to tie the event to our local youth and inspire their excitement for the sport. MLB has also worked closely with the Pier Corporation, which would maintain primary responsibility for coordination and management of the event to ensure compliance with City policies, and the Pier Lessees Association, and both groups have been strongly supportive. Direct economic benefits from the MLB All-Star Oceanfront festival to the City would flow from a significant rental/event fee that would be subject to final negotiation with MLB as part of the license agreement. The fee would be based on fees charged under the Community Events Permit as well as through stand-alone license agreements such as that of the Independent Spirit Awards for use of the 1550 Parking Lot, and staff currently estimate a total fee of approximately $510,000 plus applicable City fees including funds for a Parking and Traffic Management Plan, and any additional Beach Maintenance supplemental cleaning services. Fees charged to MLB would ensure full cost recovery for City service and staffing levels necessary to ensure a clean, safe, and successful event. In addition, the event would generate revenue to the City via transient 3.J Packet Pg. 432 4 of 5 occupancy taxes, sales tax, and parking revenue from visitors who stay, dine, and shop in Santa Monica while attending the event, as well as the MLB staff, contractors, and sponsors who would dine and shop at Pier merchants during the week of the event activation. In addition, considerable benefit to the City’s brand, global visibility, and reputation would accrue from one of its most iconic and picturesque locations being used as a key event site related to a major, globally followed sporting event. This was demonstrated as recently as February 2022 with the NFL’s Super Bowl LVI in Inglewood, for which NBC Sports located one of its primary pre-game broadcast locations on the Santa Monica Pier with a stunning backdrop of the iconic Ferris wheel and beachfront. Such activations and brand enhancement provide long-term boosts to economic investment and regional, national, and international tourism in Santa Monica. This activation will also provide the City with relevant experience leading up to the 2028 Summer Olympics, where the beach volleyball events are slated to be hosted at Santa Monica Beach adjacent to the Pier. Coastal Commission Approval This event will likely require a Coastal Development Permit because it is located between Memorial Day and Labor Day, pursuant to the Coastal Commission’s adopted Guidelines for the Exclusion of Temporary Events from Coastal Commission Permit Requirements, dated May 12, 1993. The City’s adopted 1992 Coastal Land Use Plan would be the standard of review, in addition to the aforementioned guidelines, however, the 1992 LUP does not contain any policies regarding temporary events. Financial Impacts and Budget Actions The direct financial impact for the City is not precisely known, but a substantial rental and event fee would be paid to the City by MLB should Council authorize staff to negotiate and execute a license agreement for this event, which would include full cost recovery for City service and staffing impacts. The City’s portion of the established Pier Deck rental fee for MLB’s proposed nine days of use would result in $132,000 in direct income for the Pier Fund, which will be deposited in account 53700001.409850. Other 3.J Packet Pg. 433 5 of 5 revenues associated with the license agreement will be deposited in the Pier and Beach Funds, as appropriate. Additional ancillary positive impacts would accrue through additional transient occupancy tax, sales tax, and parking revenue, along with benefits related to enhancement of the City’s brand and marketability to visitors. Prepared By: Anuj Gupta, Assistant City Manager Approved Forwarded to Council Attachments: A. MLB All-Star Oceanfront Proposal July 15-17 2022 B. 2022 OAKS INITIATIVE FORM (MLB) (rev) 3.J Packet Pg. 434 2022 CITY OF SANTA MONICA PROPOSAL February 2, 2022 We are submitting this RFP for the 2022 MLB All-Star Oceanfront SUBMITTED BY: BERNIE GOON SENIOR MANAGER, MLB EVENT DATE: FRIDAY, JULY 15, 2022 SATURDAY, JULY 16, 2022 SUNDAY, JULY 17, 2022 LOCATION: SANTA MONICA PIER DECK PARKING LOT AND ADJACENT BEACH SOUTH OF THE PIER DECK 3.J.a Packet Pg. 435 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball Organization Name: Major League Baseball Event Names: 2022 MLB All-Star Oceanfront Organization Contact: Bernie Goon Event Contact: Bernie Goon Carol Ann Lafferty Event Dates: FRIDAY, JULY 15, 2022 SATURDAY, JULY 16, 2022 SUNDAY, JULY 17, 2022 Event Hours: Start Time 11:00AM (TBC) End Time 7:00PM (TBC) Hours apply to both the pier deck parking lot and beach Expected Attendance: 8,000 per day or 24,000 total for the event Proposed License Term: Tuesday, July 12 – Tuesday, July 19, 2022 Site Plan: Please see attached preliminary 2022 site plan for Pier Deck parking lot and beach South of the Pier About Major League Baseball: Major League Baseball (MLB) is the most historic professional sports league in the United States and consists of 30 member clubs in the U.S. and Canada, representing the highest level of professional baseball. Led by Commissioner Robert D. Manfred, Jr., MLB remains committed to making an impact in the communities of the U.S., Canada and throughout the world, perpetuating the sport's larger role in society and permeating every facet of baseball's business, marketing, community relations and social responsibility endeavors. MLB currently features record levels of competitive balance, continues to expand its global reach through programming and content to fans all over the world, and registered records in games and minutes watched this season on MLB.TV. With the continued success of MLB Network and MLB digital platforms, MLB continues to find innovative ways for its fans to enjoy America's National Pastime and a truly global game. For more information on Major League Baseball, visit www.MLB.com. About MLB All-Star Oceanfront: MLB All-Star Oceanfront will kick off MLB All-Star Week and is a 3-day beach festival where all can enjoy baseball on the beach, music, interactives, games, free giveaways, baseball themed food and beverage, All-Star Game merchandise, photo ops, sand sculptures and more. It’s an opportunity for fans of all ages to participate in the MLB All- 3.J.a Packet Pg. 436 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball Star festivities in Santa Monica from July 15-17, 2022. Entry to the event is free for everyone. The event footprint will consist of two adjacent locations. Current plans and activities are below (subject to change). 1) Pier deck parking lot a. Batting cages b. Pitching cages c. Esports d. Make your own custom baseball card e. Partner activations which may include product displays, games, samples and giveaways f. Official MLB All-Star Game merchandise retail location g. Food and beverage in collaboration with the current restaurants on the pier h. Music (daytime DJs and local performing artists) 2) Beach a. Baseball diamond i. Invite youth leagues from Santa Monica and LA area to participate in games and clinics ii. Host games that include a former player, celebrity fan and a Sandlot legend iii. Offer free play for beachgoers and fans to sign up to play on our baseball diamond b. Yoga i. One 60 minute session each day for approximately 200 people c. Photos ops d. Sand sculpting 3.J.a Packet Pg. 437 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball Food/Beverages: MLB will work with the Santa Monica Pier Lessees Association to identify current tenants who are interested in serving baseball themed food and beverage at the event on the pier deck parking lot. Anheuser-Busch may potentially want to sell beer from one of their portable bars and create a beer garden within the Taste of LA section of the pier deck parking lot. Anheuser-Busch will look to work with a current tenant to have them pour from their portable bar or from one of the restaurant patios that are adjacent to our footprint (Albright, Rusty's and/or Seaside on the Pier). MLB is currently working with the Santa Monica Pier Corporation and the City of Santa Monica to identify options. Resource and Recovery & Recycling Plan: Major League Baseball is planning to activate several sustainability initiatives at Santa Monica’s Oceanfront during All-Star Week. MLB aims to align with Santa Monica’s goals of making this event zero waste, water efficient, and carbon neutral, leaving the site in the same condition as it was prior to the event. MLB plans to provide attendees with options for locally sourced food, reusable water bottles and refill stations, and additional opportunities to recycle. MLB plans to encourage and promote the use of alternative transportation methods such as biking, walking, and public transit. MLB plans to have the Green Team present in Santa Monica where, if possible, they will complete a volunteer event (e.g., beach clean-up with Heal the Bay) as well as educate attendees on sustainability best practices. Following the event, MLB intends to donate leftover food locally and offset the energy & carbon usage associated with the oceanfront site. We will use a private contractor that has been pre-approved by the City of Santa Monica. We will have (80-100) trashcans, (1) 3-yards and (3-4) 20-yard dumpsters onsite. Recycling bins will be placed throughout the event site. The private contractor will pick up all dumpsters at the end of the event. The waste and recycled materials will be separated. Janitorial staff all day and post-event close each day to empty and reset trash cans Building & Safety: We will have one stage on the pier deck parking lot and the height is 42-48 inches. We also plan to place some temporary bleachers on the beach for fans to enjoy the baseball games. • Bleachers: 2 rows in “L” formation / each approx. 96 LF • 6 rows @ 96LF: 342 seats x 2 = 684 total • 11 rows @96LF 627 seats x 2 = 1,254 total • Load In Timing and Beach Conditions to determine which option can be used 3.J.a Packet Pg. 438 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball Accessibility Plan: Tents are all ground level and ramps are built, if needed. We will supply ADA restrooms on site. Security: • MLB will establish a secured zone for all MLB related activations • Fans entering the secured zones will be screened prior to entering the secured zone. • MLB Security will contract with Contemporary Security Services (CSC) to provide 24hr security coverage for the event from load in to load out • MLB Security will coordinate with the Santa Monica Police Department (SMPD) and Emergency Medical Services to ensure the appropriate resources are present for the event • MLB Security will also have a representative on site or readily available to respond to any security related incident along with contracted resident security agents Parking & Transportation Management: MLB plans to work closely with the SMDOT to promote the use of public transportation including the Metro Bike Share program to get to and around Santa Monica and our event. MLB’s Marketing Plan will include transportation messaging to educate attendees on and encourage them to utilize other forms of transportation to and from the event. We plan to assist in communicating alternative parking lots by the way of signage and offer bike valet during our event. Neighborhood Communication Bernie Goon and Carol Ann Lafferty will be the main contacts for all neighborhood correspondences and will work closely with the City to alleviate any issues that may arise. Marketing MLB Marketing will support the All-Star Oceanfront event at the Santa Monica Pier, locally and regionally, through Owned & Operated assets and additional inventory secured within the market. We will continue to work closely with the SMPLA to support business on the pier pre, during and post event. In addition, we will look to work closely with Santa Monica Travel and Tourism on marketing the event, the city and the Santa Monica Pier which may lead to additional overnight stays. For partners who are interested in hosting hospitality events, we will recommend the use of Third St Promenade and Downtown Santa Monica. We will discuss potential opportunities with Downtown Santa Monica Inc. 3.J.a Packet Pg. 439 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball Production Timeline for 2022 Monday, July 11, 2022 City of SM to ensure the Pier deck parking lot is clear by EOD as install will begin at 8:00AM the following day. Tuesday, July 12, 2022 8:00 am – 10:00 pm PIER DECK PARKING LOT • Marking, Structures, Power, Lighting Towers, Dumpsters (or similar) • 24 Hour Security onsite from Tuesday until the last day of strike Wednesday, July 13, 2022 8:00 am – 10:00 pm PIER DECK PARKING LOT • AV, Audio, Lighting, Furniture • Sponsor and Vendor Load in Thursday, July 14, 2022 8:00 am – 10:00 pm: PIER DECK PARKING LOT • Sponsor and Vendor Load In BEACH • Seating, Tech, Marking of Field, Photo Ops, Sand Sculpture Area, Rope off areas Friday, July 15, 2022 - EVENT DAY 11:00 am – 7:00 pm (TBC) • SMPD K9 Sweep with security (TBC) Saturday, July 16, 2022 – EVENT DAY 11:00 am – 7:00 pm (TBC) Sunday, July 17, 2022 – EVENT DAY 11:00 am – 7:00 pm (TBC) 3.J.a Packet Pg. 440 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball Monday, July 18, 2022 8:00 am – 10:00 pm PIER DECK PARKING LOT • Load out of Sponsor/Vendor elements, AV, Lighting, Furniture, Power, Structures. 8:00 am – 1:00 pm BEACH • Load out of all elements • Return beach to the city by 1:00 pm Tuesday, July 19, 2022 8:00 am – 10:00 pm PIER DECK PARKING LOT • Load out of structures and related elements • Return lot to the city by 10:00 pm 3.J.a Packet Pg. 441 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball 3.J.a Packet Pg. 442 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball 3.J.a Packet Pg. 443 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball 3.J.a Packet Pg. 444 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball 3.J.a Packet Pg. 445 Attachment: MLB All-Star Oceanfront Proposal July 15-17 2022 (5020 : Accept Proposal and Enter into Agreement with Major League Baseball Please attach additional pages if more space is required.  CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. DocuSign Envelope ID: 8D215397-CFE9-4C75-8412-93422BB1FC99 3.J.b Packet Pg. 446 Attachment: 2022 OAKS INITIATIVE FORM (MLB) (rev) (5020 : Accept Proposal and Enter into Agreement with Major League Baseball for 2022 Please attach additional pages if more space is required.  CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ Office of the Commissioner of Baseball Robert J. Manfred, Jr., Chief Executive Officer N/A Sarah Horvitz SVP & Head Counsel, Business and Technology sarah.horvitz@mlb.com 212-931-7800 DocuSign Envelope ID: 8D215397-CFE9-4C75-8412-93422BB1FC99 03/03/2022 | 19:03:48 EST 3.J.b Packet Pg. 447 Attachment: 2022 OAKS INITIATIVE FORM (MLB) (rev) (5020 : Accept Proposal and Enter into Agreement with Major League Baseball for 2022