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City Council Report City Council Report City Council Meeting: September 13, 2016 Agenda Item: 8.A To: Mayor and City Council From: Karen Ginsberg, Director, Community & Cultural Services Subject: Venue Guarantee Letters with LA 2024 Exploratory Committee (LA 2024) and International Olympic Committee (IOC) for Beach Volleyball during 2024 Olympics Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to submit a venue guarantee letter to LA 2024 for use of Santa Monica State Beach for Beach Volleyball during the 2024 Olympics; and 2. Authorize the Mayor to submit a letter in support of the Candidature Questionnaire for the City of Los Angeles to the International Olympic Committee. Executive Summary Los Angeles is one of four cities bidding to host the 2024 Olympic and Paralympic Games (Games). The LA 2024 Exploratory Committee (LA 2024) is seeking both a venue use guarantee letter from Santa Monica to stage beach volleyball on Santa Monica State Beach and a separate letter to the International Olympic Committee (IOC) agreeing to certain assurances as part of the Los Angeles Candidature Questionnaire. The guarantee letter provides conceptual approval on the part of the venue owner and agreement to minimum terms that would form the basis of the Venue Use Agreement that would be executed in the future, should LA be successful in winning the bid. The minimum terms specify the Exclusive Use Period, which would begin on April 1, 2024 for a portion of the 1550 lot and on June 1, 2024 for the beach area, and run through August 18, 2024 for both the 1550 lot and the beach. The rental fee would be based on the formula used for large events in the 1550 lot, as established by the 1550 Lot Cultural/Entertainment Policy, and the formula used to calculate the fee for private use of the beach. Based on the preliminary plan, the fee, based on current rates, would be approximately $3.7 million and includes rental of the 1550 lot and the beach area as well as reimbursement for loss of parking revenue. Operational costs for other City departments would be negotiated as part of the Venue Use Agreement. The IOC letter provides a number of commitments by the City such as not staging major public events during the Games, protecting the marketing rights of the Organizing Committee for the 2024 Games (OCOG), providing basic public services during the 1 of 10 Games, and working cooperatively with the U.S. Department of Homeland Security, which is charged with providing security during the Games. LA 2024 has presented a preliminary plan to the City and has briefed a number of boards and commissions, beach residents, and the Pier lessees on the concept. The IOC will select the host city in September 2017; if LA wins the bid, detailed plans would be developed and a full planning process, similar to what has been used to successfully stage the LA Marathon, would be initiated to examine and address all challenges. Background Spearheaded by LA Mayor Eric Garcetti, Los Angeles officially launched its bid to host the 2024 Olympic and Paralympic Games (Games) on September 1, 2015 with a unanimous vote by the LA City Council in support of the city’s quest to host its third international Olympiad. Although Boston was initially selected as the preferred venue by the US Olympic Committee, their subsequent withdrawal cleared the way for LA to seek to bring the Summer Games back to the United States for the first time in what would be 28 years since the Atlanta Summer Olympics in 1996. Los Angeles is one of just four international finalists for the 2014 games along with Rome, Paris and Budapest. The LA 2024 Exploratory Committee (LA 2024) officially launched the two year effort to secure the bid at a ceremony at the Annenberg Community Beach House immediately following the LA City Council vote. The announcement was purposefully held on Santa Monica State Beach to highlight the key role that beaches have played in the development of new and exciting sports and inspiring a new generation of athletes. The two year bid process culminates in September 2017 with the International Olympic Committee’s (IOC) selection of the Host City. Over the next twelve months, LA 2024 will submit a number of documents and presentations to the IOC as well hosting an Evaluation Committee visit. The other three cities vying for the 2024 Olympic bid are Paris, Rome and Budapest. Discussion As part of the bid process, LA 2024 is required to submit a venue guarantee from each 2 of 10 of the proposed venues to the IOC in October 2016. The venue guarantee letter (Attachment A) establishes the minimum terms (dates of exclusive use, rental fee, municipal services, merchandising, broadcasting rights, exclusive concession rights) that would form the basis of the Venue Use Agreement that would be executed in the future, should Los Angeles be awarded the bid. As part of the Candidature Questionnaire that LA 2024 must submit to the IOC, each venue has been asked to submit an accompanying letter that provides assurances of commitments required by the IOC. The IOC letter (Attachment B) includes the following commitments: City would not stage major events during the period that would conflict with the Games City would take reasonable measures to protect the marketing rights of the OCOG City would provide the normal base level of public services during the Games The City would require that all construction would comply with local planning, environmental, health and safety, labor and anti-corruption laws The City would make the operations of the City’s Transportation Management Center available to support the Games transport and traffic solutions The City would work cooperatively with the Department of Homeland Security which is charged with providing security during the Olympic Games Since the Games are eight years away, the proposal for beach volleyball on Santa Monica State Beach has been presented as a guarantee of minimum terms, with the details and solutions to the many challenges to be addressed during the seven years of planning prior to the Games. In an effort to mitigate concerns that the Council might have making this commitment so far in advance, LA 2024 has provided a side letter (Attachment C) that makes clear that absent a mutual agreement on the definitive venue use agreement, the venue use guarantee would be rendered null and void years prior to 2024. LA 2024 has proposed having the definitive agreement completed by December 31, 2018. LA 2024 Beach Volleyball Proposal Beach volleyball is the only Olympic activity proposed for Santa Monica. The Games are scheduled to begin on July 19, 2024 and run through August 4, 2024; the Paralympic Games are held two weeks after the Olympic Games, however, beach volleyball would not be part of the Paralympic Games and would not be held in Santa 3 of 10 Monica. LA 2024 is proposing to stage the beach volleyball venue on the beach, north of the Santa Monica Pier, between Lifeguard Stations 14 and 15; the proposed concept plan is shown in Attachment D. The proposed 12,000 seat temporary stadium would be built on the sand, just north of the 1550 lot and would include a center competition court. Additional warm up and practice courts would be located on the sand as well as tents for the athletes. The entire 1550 lot would be used during the month of July and throughout the Games to stage operational and broadcast components. Additional highlights of the proposed plan include the following: There would be two volleyball sessions per day during the two week run of the Games, including night games; spectators would be expected to arrive at staggered times to enjoy the Olympic festival atmosphere Ticket holders would enter the venue at the beach level after walking down the Pier; LA 2024 would build an additional set of stairs from the Pier south of the existing stairs and would build an accessible ramp from the Pier to the venue entrance on the beach The entire site, including the 1550 lot and sand area, would be surrounded by a 10’ security fence; the proposed plan shows the fence in front of three residences A temporary bike path would be constructed on the sand to go around the site and under the Pier to meet the existing bike path south of the Pier A portion of the 1550 lot would remain open next to the Pier and controlled to provide access for deliveries to Pier businesses and the northeast portion of the lot would be open for parking for the nearby residents; the Broadway overpass would also remain open No onsite parking would be available to Olympic ticket holders; all attendees would be expected to arrive at all venues by public/alternative transportation Security within the venue would be under the direction of the federal government, which is charged with providing security at the Olympic Games The preliminary construction plan would phase the closure of the 1550 lot and the beach area as follows: o April and May 2024: 400 spaces in 1550 lot would be occupied o June 2024: 800 spaces in 1550 lot would be occupied as well as the beach construction area o July 1, 2024 - August 4, 2024: entire 1550 lot (1175 spaces except for controlled areas) and entire beach area fenced off o August 5, 2024 - August 18, 2024: tear down; 800 parking spaces occupied in 1550 lot The rental fee would be based on established formulas that are used to calculate the rent for large scale events in the 1550 lot and for the permitted use of portions of the 4 of 10 public beach by the private beach clubs and properties along Palisades Beach Road.
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