Santa Monica Civic Auditorium Technical Assistance Panel

A ULI Advisory Services Technical Assistance Panel Report

Santa Monica, California SANTA MONICA CIVIC AUDITORIUM TECHNICAL ASSISTANCE PANEL (TAP) PROGRAM JULY 2013 ULI Los Angeles Mission Statement At the Urban Land Institute, our mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. ULI Los Angeles, a district council of the Urban Land Institute, carries forth that mission as the preeminent regional real estate organization providing inclusive and trusted leadership influencing public policy and practice.

About the ULI Los Angeles Technical Assistance Panels In keeping with the Urban Land Institute mission, Technical Assistance Panels are convened to provide pro-bono planning and development assistance to public officials and local stakeholders of communities and nonprofit organizations who have requested assistance in addressing their land use challenges.

A group of diverse professionals representing the full spectrum of land use and real estate disciplines typically spend one day visiting and analyzing the built environments, identifying specific planning and development issues, and formulating realistic and actionable recommendations to move initiatives forward in a fashion consistent with the applicant’s goals and objectives.

Staff and Panel Members

TAP Client ULI Los Angeles Project Staff City of Santa Monica Gail Goldberg Executive Director, ULI Los Angeles Panel Chair John H. Alschuler, Jr. Christine Aure Susa Chairman, HR&A Advisors, Inc. Director, ULI Los Angeles New York, New York Matthew Severson Panelists Associate, ULI Los Angeles Michael W. Ross Chief Executive Officer, Pasadena Civic Auditorium, Convention Center, Convention & Visitors Bureau Report Editor Pasadena, California Susan Davison, AICP, CGBP LEI, Inc. John Fisher, AIA [email protected] President, John Sergio Fisher & Associates, Inc. Tarzana, California

Thomas W. Wulf Senior Vice President, Lowe Enterprises Real Estate Group

Melani V. Smith, AICP Principal, Melendrez

Dan Massiello Senior Vice President-Public Finance, Kosmont Companies

ii Santa Monica Civic Auditorium Technical Assistance Panel Contents

Executive Summary...... 2 Santa Monica Civic Auditorium Assistance Panel Report...... 5 Technical Assistance Panel Assignment and Process...... 7 Panel Observations and Recommendations...... 9 Programming and Management...... 10 Set the Dream...... 12 Moving beyond the Civic: The Civic Center Creative District...... 14 Opportunities...... 16 Financing Options and Implementation...... 18 Conclusion...... 21 Acknowledgements...... 22 Technical Assistance Panel Member Biographies...... 23

1 Executive Summary

THE CITY OF SANTA MONICA, DIRECTED BY THE of event bookings at the Civic Auditorium now consist of Community & Cultural Service Department’s Cultural Affairs consumer event shows, and while it remains home to the Division (“Cultural Affairs Division”), requested ULI Los Santa Monica Symphony Orchestra, the building systems Angeles to host a ULI Technical Assistance Panel to provide a have deteriorated and reached the end of their useful life. The roadmap to address the long-term future of the Santa Monica City of Santa Monica had plans and the funds to renovate Civic Auditorium and provide a framework to implement the the Civic Auditorium, but the loss of redevelopment agencies vision. The event was part of ULI Los Angeles’s Technical terminated those plans. At this time, the city closed regular Advisory Panel (“TAP”) program which provides expert, operations of the Civic Auditorium on June 30, 2013. The multidisciplinary advice on land use and real estate issues panel now sees the challenge for the city is to redefine their facing communities in the Los Angeles Region. For many vision for the Civic Auditorium and make it a reality. years, the Civic Auditorium was one of the largest concert venues in Southern California. International artists, such as The Santa Monica Civic Auditorium is the the Doors, the Rolling Stones, the Beach Boys, Bob Hope, and Cultural Heart of the City Bob Dylan performed in the main auditorium. It was designed Given the deep sense of civic pride and community to be flexible enough to allow for local community events connection to the building, the panel recommends the or large concert performances. But, with the lack of capital preservation and restoration of the Civic Auditorium. The

Santa Monica Civic investment in the facility, and years of deferred maintenance, ULI Los Angeles Technical Assistance Panel recommends Auditorium, primary most concerts and events prefer to contract with newer, the City of Santa Monica “set the dream” – to renovate the (north) elevation, looking southeast. state-of-the-art venues in the Los Angeles area. The majority theatre as a cultural icon for posterity. More than 43% of Santa Monica adults make all, or a portion of their living in arts-related fields. This factor points to a major opportunity for a type of development that taps into the desire for something for the community. The City of Santa Monica can establish a cultural center – performing arts, visual arts, and more importantly, a special place for the Westside - where the city can demonstrate it is a leading place for culture, for all the arts. The city should aspire for a renovated Civic Auditorium that can qualitatively compete with downtown and other regional venues.

The panel believes that any future for the Civic Auditorium will require major financial commitments; harmonious, appropriately-scaled development; improvements to the operating model; and the generation of other sources of revenue, through the sale of naming rights or general obligation bonds.

2 Santa Monica Civic Auditorium Technical Assistance Panel Programming and Management The Civic Auditorium exists in a highly competitive, fluid market environment, which will require a distinct market position in order to succeed. Successful facility management demands extensive knowledge, expertise and creativity. A modern, well-managed facility can capture concerts, Broadway shows, family shows, filming, award shows, local events, graduations, and local performances. Additional event opportunities for revenue are available, through the booking of tradeshows, conventions, consumer shows, meetings, outdoor parking lot events, and banquets and receptions.

Consideration should be given to a public non-profit considered feasible within the market. The panel suggests the Santa Monica Civic management model, to be explored for the operation and Auditorium marquee Civic Auditorium set fees to cover costs, be priced within the management of the Santa Monica Civic Auditorium. This displaying upcoming industry norm, and be managed to industry standards. events. model will allow the city to maintain budget authority and to elect the governing board. The governing board oversees the management and sets policy. The Facility Manager is Set the Dream The Civic Auditorium needs to be a state-of-the-art facility in charge of day-to-day operations and implements the that is flexible enough to be an ideal venue for drama, policy. This governing format is valuable in that it enables musicals, ballet, popular concerts, choral, classical concerts, the facility management to operate with greater flexibility film and both raked seating and flat floor special events and effectiveness, especially in the areas of personnel including exhibits. The Civic Auditorium should be renovated management, payroll, purchasing, contract approval, to enhance acoustics; incorporate telescopic seating; sales and marketing, event booking, scheduling, event and modernize the theatre system technology. These management, parking, ticketing, advertising, concessions and improvements are in addition to the excellent study already catering, facility maintenance, and generally being able to presented to the city for the renovation and addition to the negotiate competitive “deals.” This model can be successful if Civic. there are clearly defined goals and the facility management is entrepreneurial and market-focused. Move Beyond the Civic: The Civic Center The panel believes the future of the Civic will require a Creative District substantial capital subsidy and annual operating support if its The Civic Center Specific Plan, adopted by the City of programming mix includes a commitment to provide below Santa Monica in 2005, has proven to be a planning vehicle market pricing for community events and the arts sought that is adaptable to the changing market conditions and by so many citizens. The panel recommends the city set opportunities facing the city. In 2013, given the new reality the direction for the Civic and determine whether the Civic facing the city, that the funding previously available to needs to operate at profit; break-even from operations; cover renovate the Civic Auditorium is no longer available, so new debt service; or operate at a loss. Currently, there is a large solutions and opportunities must be sought. The entire 10 city subsidy, which cannot continue in the current economic acres that currently encompass the Auditorium Special Use environment. A snapshot of the Civic’s financials indicate the District within the Specific Plan must now be replanned. While cost of services are too high and out of alignment with what is the Early Childhood Center currently proposed in the District is still a viable use, and planning for it is ongoing with Santa

3 The panel recommends a healthy mix of uses to generate activity in the Civic Center Creative District and provide a revenue stream to support any renovation and development. A mix of some of the following complimentary uses should be explored: boutique hotel and conference center; residential apartments; artist in residence; creative commercial office; and pedestrian activated ground floor retail.

Financing Options Redevelopment funding is no longer a resource for the city and the ability to raise new annual revenues from the general fund to make debt service payments is curtailed. In order to determine what the city can afford in the post-redevelopment era, financing options must be explored prior to making a decision to continue planning such a project. The panel Side view of the primary Monica College, the proposal to incorporate a soccer field entrance and its parabolic believes that a balanced multi-sourced approach should be within the acreage, to be shared with Samo High, is now pylons. utilized and suggests the city explore the following options: obsolete. The space that this use would have occupied within leverage the value of parking lots with development, naming the District, has therefore been reconsidered by the panel. rights, voter authorization for general obligation bond; public/ private opportunities; and other financing vehicles such The Civic Auditorium has survived as an island in a sea of as EB-5 financing, New Markets Tax Credit financing and surface parking for long enough, but for the Civic to succeed Historical Tax Credits. in the future, it must be embedded in a larger Creative District, flanked by compatible uses, and reconnected to the urban fabric of the city. In the future a surface parking lot will Panel Recommendation The challenge for the city is to redefine their vision for the be considered an inappropriate use of a precious piece of Civic Auditorium and make it a reality. In the future, the panel land in this location. Citizens need welcoming, well-defined imagines the Civic Auditorium and any development within public spaces to stimulate face-to-face interaction, encourage the Santa Monica Civic Center Specific Plan to be a place of civic participation, admire public art and gather for public civic pride, serving citizens ranging in age from early chilhood events. to mature adulthood, integrated seamlessly into its context, Opportunities and providing a range of activities drawing community members to diverse facilities and lively public space. The city The panel suggests the following directions for the city to should save the Civic Auditorium due to its cultural history, support the Civic Auditorium: 1) Support the renovation & landmark status and the unusually high level of civic pride modernization of the Civic Auditorium with significant financial associated with the structure, even though it is not cost support through development opportunities of the surrounding effective to restore the building. In order to do so, the path city controlled surface parking lots; 2) Support and encourage forward will require an affirmative approach since achieving the establishment of the Civic Center Creative District through the vision will require a disciplined, sustained commitment complimentary development uses to expand the arts impact; from the City of Santa Monica. and 3) Bring a renewed vibrancy and activity to the Civic Center Creative District and establish the connections and linkages to the surrounding area.

4 Santa Monica Civic Auditorium Technical Assistance Panel Santa Monica Civic Auditorium Technical Assistance Panel Report

Background For many years, the Civic Auditorium was one of the largest The Santa Monica Civic Auditorium was built in 1958, concert venues in Southern California. International artists, designed by Welton Becket, as a public gathering place such as the Doors, the Rolling Stones, the Beach Boys, Bob dedicated to cultural, educational and community events. Hope, and Bob Dylan performed in the main auditorium. Welton Becket studied at the famed Ecole des Beaux Arts, The Civic Auditorium has hosted significant entertainment and is known for his mid-twentieth century modern designs. and cultural events; from the Oscars, to conventions with Beckett designed cultural Los Angeles icons, such as the a regional draw. From 1961 to 1968, the Academy of Capital Records building, the old Music Center, the Beverly Motion Picture Arts and Sciences held its annual Oscar Hilton Hotel, and the Santa Monica Civic Auditorium. His awards ceremony there. It was designed to be flexible master planning work includes the Century City, and UCLA, enough to allow for local community events or large concert where he was master planner from 1948 until 1968. performances. But, with the lack of capital investment in the facility, and years of deferred maintenance, most concerts The Civic Auditorium incorporates a modern style, and aside and events located to new facilities constructed in the Los from minor upgrades, the building is largely in its original Angeles area. The majority of event bookings at the Civic condition. The facility has a capacity for up to 3,000 seated Auditorium now consist of consumer event shows, and while and 3,500 standing. Designed as a multi-purpose facility, it remains home to the Santa Monica Symphony Orchestra, which can be used for both flat-floor events and sloped-floor the building systems have deteriorated and reached the end Jessica Cusick and Lisa events, the facility comprises 27,000 square feet on the of their useful life. Luboff join the panel on a tour of the Civic. main floor. The auditorium contains a unique mechanical riser system that allows the main floor to convert from flat exhibit space to sloped performance space for concerts. A forerunner of adaptable space, the riser system allowed the main floor to accommodate a variety of stage performances, theater, concerts, and events. The auditorium includes a stage area and proscenium opening, stage rigging, and rear access to the facility for event loading. The East/West wing provides an additional 4,200 square feet of exhibit/meeting space. More than 1,000 surface parking spaces are available and tents can be used over the main entrance to provide an additional 17,000 square feet of covered space for larger events. In 2002, the city designated the auditorium building a historic landmark, citing its mid-century international style and riser design as historic features.

5 Santa Monica Civic Center Specific Plan well as the completion of the RAND headquarters on a 3.7- The Santa Monica Civic Center Specific Plan covers a portion acre site directly opposite of the Civic Auditorium. During the of the city that provides critical opportunity for redevelopment planning process, a public open space and public/community and rejuvenation. Within the specific plan are a number of facilities program was approved, which included residential TOP: John S. Fisher, Mike significant land uses, such as the downtown, the main street and mixed-use housing with the area. The plan sought to Ross, Jessica Cusick, commercial area, and the civic center. The Civic Auditorium create an appropriate balance between open space and John Alschuler and Lisa Luboff touring the facility. is located in the civic center of the city, which includes the housing, accommodate future light rail service, and provide BOTTOM: Tom Wulf, City Hall, the city’s Public Safety Facility and the County for the future of the Civic Auditorium. A key objective of the John Sergio Fisher, and Mike Ross Courthouse. Since the plan was adopted in 1993, several plan was to maintain the Civic Auditorium as a prominent interview Nederlander landmark and program it with activities for the community. representatives. public facilities were improved or constructed in the area, as Current development plans within the area also allow for the construction of an Early Childhood Education Center along the northern edge of the Special Use District, expected to add a layer of activity to the area. (The Civic Auditorium and Early Childhood Education Center reside within the Auditorium Special Use District, one of five special use districts within the Santa Monica Civic Center Specific Plan).

6 Santa Monica Civic Auditorium Technical Assistance Panel Technical Assistance Panel Assignment and Process

In 2012, the City of Santa Monica made a difficult decision. Technical Assistance Panel Questions The city had expended significant time and resources to 1. EXAMINE THE STRATEGIES to maximize the full potential address the future of the Civic Auditorium and the potential of the Civic Auditorium as a standalone, self-supporting venue opportunity for redevelopment within the Santa Monica Civic bringing cultural events to Santa Monica. Consider the logical Center Specific Plan area. Over the course of seven years, partners in this endeavor, the use of the building and the full the city examined a number of different ways to revitalize site, including the parking lot. Specifically: the Civic. Several public facilities within the area were • Consider the financing options available to create a upgraded and the city had plans and funds to renovate the viable venue which must include a major retrofit and Civic Auditorium. But, the loss of Redevelopment Agencies renovation. in the State of California, and the access to redevelopment • Once renovated can a sufficient number of events funds, the city terminated the $50 million renovation plans and activities be attracted to the Civic Auditorium for the Civic Auditorium. The cty indicated they are unable considering regional competition and the venue’s to continue to subsidize and operate the Civic Auditorium, place in the community? If so, what types of events for a variety of reasons, including: the building, along with and activities might these be? its systems and performance technology are antiquated; • What are reasonable expectations for operating it presents seismic safety concerns; the current business profitably with sufficient income generation to pay model, which relies primarily on consumer shows, is no any debt service resulting from the renovation? longer economically viable; the Civic had lost its competitive position in the region for attracting concerts, performances 2. WHAT KIND OF OPERATOR, and operation, would appear and larger events, apart from community-subsidized to create the best chance of success in the long term for this activities, and it operates with an annual deficit of up to $2 cultural icon? What size theatre might be most efficient and million. The City of Santa Monica, directed by the Community effective? The current Specific Plan allows for a 20,000 SF & Cultural Service Department’s Cultural Affairs Division addition and calls for sports fields and open space adjacent (“Cultural Affairs Division”), requested that the Urban Land to the Civic. Is this compatible with the strategy to renovate Institute Los Angeles to host a ULI Technical Assistance Panel the facility and make it self-sufficient or should the plan be to provide a roadmap to move forward. revised? Are there other actions the city can take to benefit Tom Wulf and Dan Massiello meet with the future viability of the Civic Auditorium? Francie Stefan. Now that redevelopment funding is no longer a resource, the city commissioned the TAP so as to address several major questions and provide recommendations on guiding future opportunities for the Civic Auditorium and the potential for future redevelopment within the Santa Monica Civic Center Specific Plan.

7 3. DESCRIBE THE ISSUES related to the redevelopment of Panel of Experts this site, and the potential opportunities to overcome them. The District Council assists the sponsor in refining the scope • Is there a minimum area of the parking lot land of work and convenes a panel to address those specific required to be redeveloped in order to provide a issues. Each panel follows a proven process that begins with feasible funding option? a conversation between ULI representatives and the potential • What might be the best types of development at this sponsor to frame the assignment. Each panel is comprised of site? highly qualified professionals who volunteer their time to ULI. • Is an integrated development approach preferable or They are chosen for their knowledge relative to the scope of should it be more segregated with separate uses and the topic and screened to ensure their objectivity. Members a project specific approach? of a TAP cannot be involved in matters pending before or be • What is the role of public parking in relation to any working for the sponsor of a TAP, and cannot solicit work The panel reviews their potential future pro-forma for the facility and the site? findings. from the sponsor during the panel’s assignment period. ULI panel teams are interdisciplinary and typically include several developers, a planner, a market analyst, a finance expert, and others with the niche expertise needed to address a given project. ULI teams are structured to provide a holistic look at development problems. Each panel is chaired by a respected ULI member with previous panel experience.

Process The agenda for the two day TAP process was intensive, and included interviews with a diverse group of stakeholders, a site tour, a working session and an evening spent discussing findings and formulating recommendations. Sponsor entities are responsible for significant preparation before the panel’s visit, including providing extensive briefing material to each member prior to the panel’s convening. During the day of the TAP, members tour the site, hear from public and private stakeholders, and then deliberate on the assigned issues. Panel members approach the assignment from many perspectives, such as market potential, land use and design, financing and development strategies, and organizing and implementation. Because of the in-depth preparation prior to the day of the TAP, panel members are able to assess a sponsor’s issues and to provide recommendations in a compressed amount of time. In fulfillment of the mission of the Urban Land Institute, this report is intended to provide objective advice that will further ULI’s mission to share best practices and provide educational services in local land use planning and real estate development.

8 Santa Monica Civic Auditorium Technical Assistance Panel Panel Observations and Recommendations

During the two day TAP, panelists began with a list of findings Auditorium as an arts center requires substantial to help set the focus for the recommendations. Panelists subsidies, and will require annual operating support. discussed the various observations gathered during the There is no economic model for a self-sustaining review of the briefing materials, as well as the issues and cultural center. ideas that were raised during the various interviews of the • The arts are an important civic function, but are stakeholders. Panel overall recommendations included not typically economically viable on their own. In programming and management, recommendations for this case, the panel believes a successful future for the theater, the creation of a civic center cultural district, the Civic will require major financial commitments development opportunities, and a list of financial options. and multiple sources of funding. In a very difficult Observations economy, the City of Santa Monica is fortunate to • The Civic Auditorium has been the cultural heart of have choices, but none of these choices are easy or the City of Santa Monica. It is a gathering place for obvious. the community, one in which residents have special • The future of the Civic will require viewing the memories of community events that have been held ten acre site as a single, holistic place. Any plan in the building. The deep pride in the Auditorium for renovation should be oriented towards the indicates that it is a lifestyle anchor with tremendous community, but based in reality. It should be focused value to the residents of the city. on implementation, and include a development and • The city should save the Civic due to its cultural operating plan that provides for long-term revenue history, landmark status and the unusually high level solutions that support civic and performing arts of civic pride associated with the structure, even programming. though it is not cost-effective to restore the building • Despite clear consensus that the Civic Auditorium

when compared to the cost of new construction. should be saved, there is a distinct lack of clarity Panel members meet • With the city’s special emphasis on the arts and a with stakeholders as to function, economics and with the Santa Monica Convention and Visitors high demand for the arts on the Westside, the Civic management. Bureau should be saved and can fill an important niche. The Civic Auditorium exists in a highly competitive, fluid market environment, which will require a distinct market position in order to succeed. • The Civic Auditorium building is over fifty years old, with landmark status, is functionally obsolete, has deferred maintenance issues, and is disconnected from the urban fabric. • The operating model has imbedded costs that the market cannot and will not carry. Preserving the Civic

9 Programming and Management

The current operating model is the Civic Auditorium is provides free services to city departments and civic events. managed by a municipal department. Very few cities cost The panel suggests the Civic Auditorium needs to at least effectively manage convention centers, theaters, stadiums or provide services at cost recovery. There should be no free other large facilities. The public assembly facility business is services to the city or civic organizations. In the City of competitive, with the Los Angeles area containing a variety Pasadena, which is the same size, same demographic, and of venues that serve the entertainment market. From the contains the Pasadena Civic Auditorium, the city pays to 2,100 seat Ahmanson Theater in downtown, to the 7,100 use the facility at a third of the normal rent. The city pays for seat Nokia Theater, Los Angeles is home to more than every service, from internet access, to union stage hands, fifteen venues that compete with the Civic, none of which to audio services. In the City of Santa Monica, about 40% are run by a city department. The Civic Auditorium cannot of the Civic Auditorium’s usage is city departments. A lot of compete in terms of the facility, its acoustics and ambience, Auditorium use is not paid for – and has been covered by the and the cost of services. Panelists consider it highly unlikely city subsidy. that the Civic Auditorium can be financially successful if its manager is constrained by city policies and procedures that Services have to be priced within the industry norm. A make it difficult, if not impossible, to conduct business in a snapshot of the Civic’s financials indicate the cost of services competitive, business-like manner. City leaders must free are too high. The facility has a high operating cost and aging the facility from constraints that inhibit sound and reasonable systems, completely out of alignment with what is considered business practices. feasible within the market. The building needs to be managed to industry standards. Competing venues chart. Currently, there is a large city subsidy, which cannot continue Source: Pasadena Convention Center. in the current economic environment. The Civic Auditorium The City of Santa Monica must consider the following questions and define their own financial expectations of the Venue Location # Seats Stage Comments Civic Auditorium: Ahmanson Theater Downtown 2,100 Union Premier location. High profile/reputation Cerritos Center Cerritos 1,800 Non-Union Self-presents, controls product through non-compete • Is the mission of the Civic to make an operating Dorothy Chandler Auditorium Downtown 3,100 Union Premier location. High profile/reputation profit – profit being defined as a surplus of operating Greek Theater Griffith Park 6,100 Union Location, Accommodates larger shows, Traditional reputation revenue over operating expenses? Hollywood Palladium Hollywood 4,000 Open Floor Union Location, Night club setting, Livenation • What level of profit is desired? Is the mission’s Nokia Theater Downtown 7,100 Union Location, Accommodates larger shows, Competes for TV shows objective only to generate income sufficient to break- Location, Co-promotion, higher profitability for marginal events Orpheum Theater Downtown 2,100 Non-Union even from operations or should the profit be large Pantages Theater Hollywood 2,700 Union Owned and promoted by Nederlander enough to also cover debt service? Pasadena Civic Auditorium Pasadena 3,000 Union Convenient to valleys, L.A. Perceived distant from west-side Royce Hall Westwood 1,800 Non-Union Location, Higher profitability for marginal events • Are operating losses acceptable? If they are, to what Santa Monica Civic Aud. West-side 3,000 Union Premier location. Not true performing arts theater extent will the city fund the facility and programs? Segerstrom Hall Orange County 2,900 Union Orange County, Regional competition for 2nd shows in market • How will any shortfall be funded? Shrine Auditorium Downtown 6,300 Union Location, Accommodates larger shows, Competes for TV shows Terrace Theater Long Beach 3,100 Non-Union Convenient to South L.A., North Orange Co. Successful facility management demands extensive The Grove Anaheim 1,700 Union Orange County, Nederlander promoted, 2nd shows in market knowledge, expertise and creativity. A modern, well-managed Thousand Oaks Civic Theater Thousand Oaks 1,800 Non-Union Niche location, Higher profitability for marginal events facility can capture additional events. Concerts are attractive, Universal Amphitheater Hollywood 6,000 Union Location, Accommodates larger shows, Competes for TV shows Wiltern Theater Downtown 2,300 Union Location, owned and promoted by Livenation

10 Santa Monica Civic Auditorium Technical Assistance Panel but in revenue terms, they are only one night. Management There are four basic forms of governance of public assembly should seek to capture concerts, Broadway shows, family facilities: shows, filming, award shows, local events, graduations, and • Elected public body – Santa Monica Model (city local performances. Additional event opportunities for revenue council) While the reporting lines may be through an are tradeshows, conventions, consumer shows, meetings, appointed official, (e.g., city manager, department outdoor parking lot events, and banquets and receptions. head) it is the city council, etc. that makes the final Rarely does a public assembly facility operate for a single decisions purpose or event type. Ancillary revenue can be captured by • Elected public body with an independent board – internet connectivity charges, electric and equipment rentals, (e.g., recreation commission, facilities district, etc.). food and beverage concessions, ticket service charges The board would likely be appointed by the public (renovation fee) and retail space. All are an important part of body, receive its authority from the public body and the balance of activities, as well as the opportunities to drive have some reporting responsibilities (and perhaps revenue to offset any city subsidies. some approvals such as budget) to that body. • Public non-profit or not-for-profit corporation – Like Santa Monica, most local government agencies finance, Pasadena Model (public authority). (Pasadena Model) construct and manage the majority of public assembly This arrangement has more independent authority yet facilities and thus this form of ownership is by far the most would have to have at an operating agreement with common, however often not the most effective and cost the city. efficient model. The Santa Monica Civic Auditorium has an • Private corporation limited liability company or unusually high $2 million annual operating loss. At this point, partnership. the city believes this level of subsidy is unacceptable and will not continue in the future. Consideration should be given to the Public Non-profit Management model, to be explored for the operation and There is no reason a public assembly facility cannot be management of the Santa Monica Civic Auditorium. This successfully operated by a public body if: model will allow the city to maintain budget authority and to • There are clearly defined goals. elect the governing board. The governing board oversees the • The approach is business-like, bottom-line oriented. management and sets policy. The manager implements the • The leadership knows the need for an policy. This governing format is valuable in that it enables entrepreneurial, marketing-oriented approach. the facility management to operate with greater flexibility • The facility and operation are relatively non-political and effectiveness, especially in the areas of personnel and freed of factors that cause instability, loss of management, payroll, purchasing, contract approval, confidence, and lack of competitiveness. sales and marketing, event booking, scheduling, event • In effect, the facility’s operation is treated as a public management, parking, ticketing, advertising, concessions enterprise or as if it were a private organization and and catering, facility maintenance, and generally being able as free as possible from bureaucratic restraints. to negotiate competitive “deals.” The Facility Manager is in charge of the day-to-day operation, not the governing board.

11 Set the Dream

The panel recommendation is for the city to “set the dream” important component of what makes the city exceptional, – to renovate the theatre as a cultural icon for posterity set desirable and economically competitive. Part of the plan in the context of an engaging mixed use urban environment. involves the retention, development, and reuse of cultural The City of Santa Monica can establish a cultural center – facilities that fit into the community’s identity. The panel performing arts, visual arts, and more importantly, a special considered the Civic Auditorium as one of those facilities that place for the Westside. The city can demonstrate it is a would contribute to the cultural participation in the city. leading place for culture, for all the arts, and qualitatively compete with downtown venues so that the Westside In order to do so, the Auditorium needs to be a state-of-the population does not need to travel downtown to enjoy the art facility that is flexible enough to be an ideal venue for best entertainment and special events. The city holds perhaps drama, musicals, ballet, popular concerts, choral, classical the largest concentration of creative professionals in the concerts, film, and both raked-seating and flat-floor special U.S. More than 43% of Santa Monica adults make all, or a events that include exhibits. Each of the above uses has an portion of their living in arts-related fields. This factor points ideal capacity that should be considered and accommodated, to a major opportunity for a type of development that taps in order to provide the greatest amount of capacity to the city into the desire for something beyond just another office and to groups seeking to use the facility. building, residential tract, or shopping experience; a new destination that provides a real sense of ownership for the The following are needs and possibilities for setting the community. In the Creative Capital report that details a plan dream: for the development of the city’s arts and culture vision, the The Civic staged for an exhibit event. The main community “envisions the arts and culture as an integral GREATLY IMPROVE THE ACOUSTICS. This can be done by floor includes a unique component of civic life, incorporating into the values, policies, removing the ceiling for a greater reverberation time coupled hydraulic tilting platform to allow for flexibility in uses. and daily activities of the city.” Residents view culture as an with adjustable absorption panels and draperies for variable acoustics ranging in reverberation times under one second for film to one second for reinforced sound to 2 seconds for classical orchestra or adjustable acoustics can be achieved electronically.

GREATLY IMPROVE THE SEATS. Instead of plastic removable seating, the city should consider installing retractable permanent upholstered performing arts center seats. With the push of a button, seats can disappear when a flat floor is needed. Easily retractable seating equates to cost savings in labor. There currently is one company that can provide telescoping seating with curved rows which provide better sightlines and heightens audience self-awareness. A maximum of 2,000 seats is an ideal number for dramas, musicals, ballet and classical orchestra. The request for 3,000 seats for special filming premiers and popular concerts

12 Santa Monica Civic Auditorium Technical Assistance Panel has been expressed. With the removal of the existing seating, GREATLY IMPROVE THE TECHNOLOGY. Theatre system there is enough height to build a balcony with 1,000 fixed technology improvements needs to be installed in order to performing arts seats. Two-thousand telescoping seats renovate the Civic Auditorium to astate-of-the-art facility. can be installed on the floor, designed to the height of the Improvements should include motorized rigging and tension new balcony, and closed off to accommodate a 2,000 seat grids for flexible front-of-house theatrical lighting positions, capacity event. A scrim roll drop at the balcony edge could the use of movie lights and LED fixtures, and modernized visually separate and allow for the space closure, while still amenities. Concessions and restrooms need to be expanded maintaining the acoustical volume. and improved.

PROVIDE ADDITIONAL FLOOR SPACE. The retracted All recommendations should include a series of design telescoping seating would yield 20,000 SF of flat floor. The studies with projected costs and operating proformas. Illustrative figure of telescopic, retractable, motorized sloping floor was an innovation in its time but and upholstered seating not as efficient today. It would be historically preserved. A flat area of 50,000 SF has been cited for exhibits and other special events. The stage area plus an addition from the stage all the way to Pico Blvd. could approach the needed area and present an iconic front in back. Other additions could include one or two small black box theatres for small performances and so that the cultural center can be continually active.

13 Moving Beyond the Civic: The Civic Center Creative District

The rejuvenated facility should anchor a creative cultural District, flanked by compatible uses, and reconnected to the district. The Civic Center Specific Plan, adopted by the urban fabric of the city. In the future a surface parking lot will City of Santa Monica in 2005, has proven to be a planning be considered an inappropriate use of a precious piece of vehicle that is adaptable to the changing market conditions land in this location. and opportunities facing the city. In 2013, given the new reality facing the city, that the funding previously available The District must reflect four essential characteristics, it must to renovate the Civic Auditorium is no longer available, new be: solutions and opportunities must be sought. The entire ten CIVIC– The uses must be compatible with and acres that currently encompass the Auditorium Special Use supportive of the civic focus of the Civic Center. District within the Specific Plan must now be replanned CULTURAL– The hub of a diverse and dynamic and repurposed. While the Early Childhood Center currently creative precinct that grows and expands events proposed in the District is still a viable use, and planning and offerings. The Civic Center, and the Auditorium for it is ongoing with Santa Monica College, the proposal to Special Use District within in it, must support a broad incorporate a soccer field within the acreage, to be shared range of performing arts, film exhibition, community with Samo High is now obsolete. The space that this use activities, and special events. would have occupied within the District, has therefore been CREATIVE– The city is becoming the home of the reconsidered by the panel. creative class, and must showcase arts and activities that represent the dynamism of the population of the The Civic Auditorium has survived as an island in a sea of city, as well as the entire westside of Los Angeles. surface parking for long enough, but for the Civic to succeed Uses and programming should build upon the Knitting the urban fabric. in the future, it must be embedded in a larger Creative changing and continued growth of creative industries (in terms of digital and other technology and media) and their populations. ACTIVATED – A successful site, in the remarkable coastal setting that the Civic Center enjoys, must be a place in which life, use and programming occurs both indoors and outdoors. It must also connect to the surrounding urban areas.

Open Space The on site open space within the District should be complementary to Tongva Park, but serve different group sizes and accommodate different types of cultural and arts oriented events. In short, open space within the District should be accessible, flexible, and programmed. Examples of open spaces that may serve as models for this District’s

14 Santa Monica Civic Auditorium Technical Assistance Panel space are the canted lawn atop the Hypar Pavilion at Lincoln imagine, for example, Santa Monica Glow festival art Center, the well established and beloved lawn at Bryant Park exhibits extending from the beach to the Civic Center in New York, Federation Square in Melborne, and the plaza in Creative District via this path. front of the New World Symphony Building in Miami Beach. • Main Street’s organization should be enhanced and clarified with the addition of colored buffered The specific development opportunities that the panel bike lanes north and south, crossing points for identified for the land within the District, are described in the pedestrians should also be clearly marked. Though Opportunities section of this report starting on page 16. the street has a comfortably narrow section, the space within it for drivers, pedestrians and cyclists is Mobility not clearly differentiated. Streetscape improvements In addition to providing facilities and amenities that to this street, together with its realignment, as complement the Civic, it is crucial that the District is knit proposed in the Colorado Esplanade project, will together, and into the urban fabric that surrounds it, by facilitate the connection to downtown Santa Monica connective tissue that is multimodal, serving not only drivers, and to the Metro Expo Line. The Colorado Esplanade but also transit riders coming from the future Metro Expo project also proposes improvements to the northern Line station at 4th and Colorado, or from Big Blue Bus stops, sidewalk of 4th Street, which will facilitate pedestrian or others on foot, as well as those on private, or in the near connectivity to the Civic Center. future, city bike share bicycles. • The edges of the Creative District should also be re-imagined as new development is planned. Both Specific physical connections are described below and the Pico Blvd. and 4th Street edges of the site are shown in the figure on page 14. These elements should be presently unactivated by at grade uses, and edged considered in the replanning of the District, and either reflect with surface parking. In the case of 4th street, at guidance already contained in the Specific Plan itself, or least south of Civic Center Drive, the sidewalk zone introduce ideas that have already been adopted in the city’s is isolated from the site by hedges, and devoid of the Bike Action Plan of 2011. amenities which increase pedestrian comfort. On • 3rd Street should be reintroduced through the site Pico Boulevard, the street edge is backed by either from the south, and connected to Main Street, at surface parking behind hedged shrubs, or back of least as a path for cycists. house elements of the Santa Monica Civic, including • Civic Center Drive should be comfortable for all its loading dock. However, at least in the case of the modes of travel, as it enters the site and travels east Pico Blvd. edge, an unutilized turf setback area is of west. a significant depth and could be redesigned to work • Multimodal connections to the site should be with the sidewalk zone in order to provide a widened, enhanced from the east and west via the Michigan shaded, pleasant walking environment. Ave. Neighborhood Greenway improvements currently being planned. Olympic will be a central In the future, we imagine the The Civic Center Creative spine through the site itself, connected through District to be a place of civic pride, serving citizens ranging from 4th Street to Ocean Boulevard, through the in age from early chilhood to mature adulthood, integrated developing Village, with multimodal capability to seamlessly into its context, and providing a range of activities serve cyclists as well as pedestrians and drivers. drawing community members to diverse facilities and lively The western connection will facilitate flow ffrom the public space. Pier, through the Civic Center to the Civic. One could

15 Opportunities

Opportunities property. The panel recommends a healthy mix of uses to What does it take to create this cultural and creative district? generate activity in the Civic Center Creative District while The panel suggested the setting of a few goals to provide the programming a revenue stream to support any renovation foundation for a community direction. and development. Examples of potential complementary and viable uses are the following (note: the sites available GOAL 1: Bring a renewed vibrancy and activity to the will likely not support all of these uses simultaneously at this Civic Center Creative District; scale, however a mix of these is recommended to accomplish GOAL 2: Support the renovation & modernization the outlined goals): of the Civic Auditorium with significant financial support through development opportunities of the BOUTIQUE HOTEL AND CONFERENCE CENTER surrounding city controlled surface parking lots; 200-400 keys; 20,000-40,000 SF conference facility. GOAL 3: Support and encourage the establishment The addition of a full-service, low-rise hotel and of the Civic Center Creative District through conference center adjacent to the Civic Auditorium complementary development uses to expand the arts can be beneficial in achieving multiple goals for the impact; district. First is the synergy with the Civic Auditorium GOAL 4: Establish the connections and linkages to the for events, exhibits, conferences and even food service. surrounding area. The addition of a directly adjacent hotel and expanded conference space can further enhance the viability of The city is quite fortunate to share a location and environment the Civic Auditorium itself and attract additional meeting which is in high demand for a variety of potential development and conference business to the city. The food and uses which could all be successful and achieve the beverage services of the hotel may also have the ability established goals. Many cities and agencies are not so to support the Civic Auditorium needs. fortunate with land for development opportunities. What this provides is a clean slate of many viable development RESIDENTIAL APARTMENTS/MULTI-FAMILY Parking at the Civic. scenarios for the approximately five to six acre development 400-600 residential units & amenities. The addition of residents to the Civic Center Creative District can bring a vibrancy and life to the district; especially in “off-hours”, evenings and weekends where the current Civic area is predominately vacated. The demand for additional housing units continues to outstrip supply in the Santa Monica market and is expected to continue to do so for the near future. Although additional residents and units typically translate to increased traffic concerns, the panel recommends density precisely at these types of locations that have significant connectivity with the city and region as a whole.

16 Santa Monica Civic Auditorium Technical Assistance Panel ARTIST IN RESIDENCE – LIVE/WORK LOFTS OR ARTIST HOUSING LAND REDEVELOPMENT 50-100 loft units (WAV Ventura example; http:// Potential Revenues to support Civic Auditorium www.wavartists.com/). The inclusion of an “artist in The current modernization and renovation program for the residence” portion of development is essential to the Civic Auditorium was reported to require approximately creation and success of the Civic Center Creative $4-6 Million per year in annual revenue to support the District. Although this use will most certainly require capital costs. A balanced mix of development can be subsidy, it is important to the creation of the district programmed to achieve this goal. In concept, below, and vibrancy of the space. A residence for working a mixture of the following program elements on the artists, whether they be visual, performance, digital approximately 5.1 acre site achieve this goal: or new media will add both ongoing activity, but more importantly, creativity to the ongoing programming of BOUTIQUE HOTEL & CONFERENCE CENTER: the district and generate opportunities for additional o 1 acre land area events. o 150,000 GSF +/- o 300 rooms +/- COMMERCIAL OFFICE – CREATIVE, TECHNOLOGY, o $275 ADR, 75% occupancy, 14% TOT = $3.1 DIGITAL AND MEDIA FOCUS Million/year 100,000-150,000 SF; Creative, low-rise general office o Ground lease of land: approx. $.5 Million/year uses. Building the vision of the Civic Center Creative District also includes the growth and expansion of RESIDENTIAL APARTMENTS/MULTI-FAMILY: innovative business and the synergy that brings within o 3 acre land area; 3.5 FAR; 460,000 GSF +/- the district. The site is highly desirable from an office o 400-600 residential units standpoint and in particular from the Creative Class o Land value approx. $48 Million within the city. Including these types of uses, and o Ground lease of land: approx. $2.8 Million/year more importantly, people within the district will further enhance the success and vibrant nature of the site. COMMERCIAL OFFICE – CREATIVE CLASS o 1.5-2 acre land area; 3.5 FAR PEDESTRIAN ACTIVATED GROUND FLOOR RETAIL o 250,000-300,000 GSF +/- 30,000-50,000 SF – Stitching the uses together, o Land value approx. $15 Million surrounding the created open space, the Civic o Ground lease of land: approx. $1.0 Million/year Auditorium and linking the district the fabric of the city, the ground floor retail amenities are an essential piece ARTIST IN RESIDENCE - POTENTIAL: of the development. The Civic Center Creative District o 1 acre land area; 2.0 FAR; 87,000 GSF +/- will benefit from an authentic, local, and unique mix o 50-75 live/work affordable units of retail and food service amenities that continue to o Likely requires subsidy/Potential for Affordable activate the space during an 18-hour day. It is within Housing fund use this space and adjacent to these retail establishments that the outdoor programming will bring the vibrancy and activity to the area.

17 Financing Options and Implementation

One fundamental question must be answered before the goals is to have the facility be self-sustaining, i.e. elimination city can move forward on planning the rehabilitation and of general fund operating subsidies, the utilization of any city renovation of the Civic Auditorium: Can the city pay for it? funds (outside of the Auditorium’s operations) to support debt Other sections of this report address the areas in which the service were deemed not to be viable options. Furthermore, panel discussed room for improvement in the operations GO bonds are difficult to get approved in California due to the of the Auditorium and other economic considerations, but requirements of Proposition 13. we do not expect that the Auditorium’s operations would ever meaningfully contribute to paying the debt service Other financing vehicles that were looked at include EB-5 payments required to finance the costs of such major financing (a federal Visa/Immigration program encouraging capital improvements. Now that redevelopment funding is job-creating foreign investment in the US), New Markets Tax no longer a resource for the city, the ability to raise new Credit financing (another federal program offering tax credits annual revenues to make debt service payments is severely in lieu of tax exempt interest), and historical tax credits (a curtailed. In order to determine what the city can afford in the similar program), but the reality is that while these programs post-redevelopment era, many financing alternatives must be offer attractive effective borrowing rates, they are in fact explored prior to making a decision to continue planning such debt vehicles and the funding for their annual debt service a project. ultimately must be generated by the Civic Auditorium itself or come from other city operations. The team assembled for the TAP considered many approaches to financing such a large project. Traditional What is needed is a new source of external funding that can vehicles such as general obligation bonds, city general be relied upon on an annual basis in order to repay any debt fund financing (such as certificates of participation) or incurred to finance improvements. Possible external funding alternative pledges from within the operations of the Civic sources that could be available to the city may include the John Alschuler outlines the panel’s Auditorium Enterprise and/or other city Enterprises were all selling of naming rights for an annual fee or applying for recommendations for the final presentation. contemplated. Considering the fact that one of the stated grants or other philanthropic resources. While these and other alternatives should be explored, they are either insufficient in size to have a meaningful impact on the projected annual debt service requirements and/or it is simply too premature to ascertain the availability of any meaningful resources of this nature. In order to finance the rehabilitation and/or reconstruction of the Civic Auditorium, a more broad-based solution is required.

The panel was unanimous in their assessment that in order to finance an investment of this magnitude, the city would need to tap into the value of its most readily available asset: the real estate on which the Auditorium sits. The parking lots surrounding the Auditorium are extremely valuable properties,

18 Santa Monica Civic Auditorium Technical Assistance Panel and, if properly structured, the value contained therein can be The current market value and best use of the parking lots, unlocked, deployed to the city’s benefit, and remain under the anticipated new revenues that could be generated by a city’s control as well. private development and the market factors that need to be considered when determining what to develop and/or There are several methods that can be employed to monetize evaluating the likelihood of the success of any such endeavor, the value of the real estate assets surrounding the Civic are all beyond the scope of this panel’s assignment. However, Auditorium. As is the case with the entire project as a whole, very rough “back of the envelope” calculations made by several policy issues must be addressed and choices made the panel during the session, and based on the collective that will affect the city and its residents far into the future. All expertise and experience of the panel’s members, estimated approaches envision some sort of private development taking the potential for annual new revenues could be in the $4 place next to the auditorium. This approach would ostensibly million range or higher. At current interest rates, $4 million be a “public/private partnership”, whereby private capital will would pay the debt service to finance an approximately $50 be deployed along with public funding. If the city chooses to million capital project. leverage the value of this real estate asset in order to fund this project, the panel recommends, in general, that the city The panel considered these figures simply as “food for retain ownership of the property itself and devise a structure thought” as they are in no way intended to represent an that would lease it to private entities to install a for-profit actual projection or estimation of the city’s ability to realize development. this level of new annual revenues. The panel does believe, however, that these “high level”, broad-based evaluations The types and amounts of revenues that could be generated are conservative and could be higher if the proper mix of by any such private development depend on the nature of that development opportunities can be realized. Moreover, the development. If some sort of hotel development is desired, panel made sweeping assumptions and generalizations new annual revenues realized by the city would likely be in about the character and nature of what could be installed the form of increases to “site-specific” transient occupancy, on the parking lot; ultimately, the choice of what to install, if real estate and sales taxes, as well as ground rent generated anything, would be up to the city’s policy-makers and could by the footprint of the development project itself. If more of be something substantially different from what the panel a residential development is desired, it seems likely that the contemplated for use in this very limited exercise. The Cultural District. major types of revenues produced would be ground rent and new real estate taxes generated by this currently tax-exempt property. There would also likely be site-specific increases to city sales tax receipts as well in a mixed-use scenario where retail and housing are installed within the new development. These new site-specific tax revenues generated by the new project could then be allocated by the city from within the general fund to the repayment of any debt service associated with the financing of the Civic Auditorium’s capital improvements. When these revenues are combined with ground rent to be received by the leasing of said property, there will be a substantial amount of new annual revenues that can be deployed to support the large scale financing that would be required to pay the costs of the improvements to the Civic Auditorium.

19 Moving beyond the Civic means that the city will be required To that end, the panel urges that the city set clear direction in to rethink the entire approach that was previously considered regard to: back in the era of redevelopment funding. Embarking down - The cultural, civic and artist function of the Civic such a path of further study and exploration is expensive, in Auditorium considering the aspirations of the and of itself. The city must first determine if the ultimate goal community and the competitive market place. of “saving the Civic” is even obtainable, before deciding how - The operating mode of the Civic Auditorium best to do so. The answer to the question “should we save considering the need for management able to the Civic” will not lie in a financial model because the panel implement community’s vision in the context of believes it is not an economically sound decision. The answer today’s market and financial realities. lies within a cost/benefit analysis that must be applied to less - A financial plan for the renovation of the building. scientific concepts, such as quality of life priorities regarding - A comprehensive development plan for the District, development and policy regarding how best to utilize city including the development of the parking lots. resources, such as real estate. - A sustainable operating plan for operating financing.

The panel recommends the City “set the vision” and craft Do the financial means to pay the costs of rehabilitating the a plan to resolve the above issues before any further Civic Auditorium even exist? The panelists believe that the engagement with the marketplace, i.e. to solicit operators of answer is a qualified “yes”. the facility, investors or development proposals. There are Creating the vision and setting the direction many ways to address these questions, the panel suggests consideration of the following two options. First, the City The panel urges the city to consider the report suggestions, staff could lead this process drawing upon their considerable the thoughtful work of the city staff and the comments of its resources supplemented by constants with expertise in facility citizenry then move forward with an action plan. The Civic management, real estate, design, planning and cultural has closed while an important district of the city remains resources. Or, as the panel recommends, the City could dominated by surface parking lots. Opportunities exist to re- create establish a new board appointed by and responsible to envision the management of the Civic, its physical form, and the City Council, a precursor to the entity that might eventually its surrounding development context. While there is no easy oversee and manage the new cultural district. The board course of action available, the city is fortunate to have the could be led by a balanced group of citizens with experience John Alschuler interviews intellectual, cultural and financial assets that can address the Nina Fresco, Carol in cultural programming, civic requirements, public/private Lemlein and Frank Gruber apparent challenges. from the Save the Civic development, and business management, again supported by community group. appropriate third party advisory resources. In both instances, substantive community engagement would be solicited. Either path forward can be viable, though the panel expresses its recommendation for the near term creation of a new board. The process could take up to a year.

Regardless, the panel urges the city and its elected leadership take this opportunity to make the required decisions to ensure the long term contribution of the Civic to the cultural and community life of Santa Monica. Once these issues are resolved, the city or the new governing board could choose experienced, creative executive leadership to implement the vision with the goal of opening the Civic within five to ten years.

20 Santa Monica Civic Auditorium Technical Assistance Panel Conclusion

Due to the loss of redevelopment funds, the city closed in a larger Cultural Creative District, flanked by compatible regular operations of the Civic Auditorium on June 30, 2013. uses and reconnected to the urban fabric of the city. Any The building is an important cultural resource and it is seen program should be created so developers and the local by the community as the cultural heart of the downtown civic community have clarity about the vision and support for area. The city should save the Civic Auditorium due to its the Civic Auditorium and the Civic Center Creative District. cultural history, landmark status and the unusually high level Communication should be integral to the public process and of civic pride associated with the structure, even though it is all costs, revenue, and subsidies should be transparent. not cost effective to restore the building in comparison to the costs of new construction. In order to do so, the path forward Another part of the recommendation is for the city to create will require an affirmative approach since achieving the vision a public authority that runs the Civic Center program. This will require a disciplined, sustained commitment from the City is the time for the city to take leadership and create a new of Santa Monica. public entity to implement its vision. This leadership would be a dedicated board of local leaders that mobilizes resources, At the heart of the recommendation is the need for the city to builds community support, and worries about the future of clearly lay out their vision for the future of the Civic Auditorium this place. The Civic Center is not a building, it should be a and the Civic Center Specific Plan. It is important that the city place. Once you build it, you have to effectively run it. The establish a program that is clearly defined and detailed along board should craft an imaginative, long term, economically with a viable financing plan before issuing another Request viable operating and management plan. The panel for Proposal (“RFP”). For example, the local community may recommends the city design and develop a Cultural Creative desire the renovation of the Civic Auditorium, but without District, that includes multiple venues and public open space, a clear path forward that includes a viable, solid operating all centered around the renovation of the Civic Auditorium. plan, the city will be responsible for the long term subsidy of The public board would execute the vision, oversee all the Civic Auditorium and it’s programs. The panel believes renovation and development, and sustain the C ivic message the future of the Civic will require substantial subsidies and over time. It is clear to the panelists that the City of Santa annual operating support. Any program for the Civic Center Monica has a sense of community spirit and a passion for should include a long term vision, a defined path, short the arts. In the future, the panel imagines the Civic Center and long term revenue opportunities, and a cost-effective, Cultural Creative District to be a place of civic pride that business-like management structure. provides a range of activities drawing community members to diverse arts and cultural facilities and lively public spaces. There is no economic model for a self-sustaining cultural center that does not rely on substantial annual private funding for either the building or its program components, or both. The panel suggested various development scenarios in the report that would provide the revenue foundation for the renovation and long term preservation of the Civic Auditorium through development opportunities at the site. For the Civic Auditorium to succeed in the future, it must be embedded

21 Acknowledgements

The Technical Assistance Panel is thankful for the Nederlander participation and commitment of city staff, stakeholders and • J. Alex Hodges, Chief Operating Officer community members. The following is a list of individuals • David K. Green, Senior Vice President / Chief Financial who were interviewed or provided valuable information and Officer perspective during the TAP process. Planning and Community Development City of Santa Monica Community and Cultural • Francie Stefan, Strategic and Transportation Planning Services Department Manager • Karen Ginsberg, Director • Sarah Lejeune, Principal Planner • Jessica Cusick, Cultural Affairs Manager • Lisa Luboff Varon, Senior Administrative Analyst Save the Civic community group • Nina Fresco City Manager’s Office • Frank Gruber • Rod Gould, City Manager • Carol Lemlein • Elaine Polachek, Assistant City Manager Architecture Housing and Economic Development • Brenda Levin, FAIA, Consultant Michael Ross, Dan Massiello and John • Andy Agle, Director • Miriam Mulder, City Architect Alschuler meet with • Jason Harris, Manager, Economic Development stakeholders discussing the Civic. • Jennifer Taylor, Administrator, Economic Development Santa Monica Convention and Visitor’s Bureau • Misti Kerns, Executive Director • Jeff Jarow - SMCVB Board of Director Chair, Par Commercial Brokerage • Ellis O’Connor - SMCVB Board of Directors Vice Chair, MSD Hospitality Owner Representative for The Fairmont Miramar • Paul Leclerc - SM TMD Committee Members, Loews Hotel General Manager • Jonathan Wolf of IFTA and AFM

Entertainment/Event Executive • Sepp Donahower

22 Santa Monica Civic Auditorium Technical Assistance Panel Panel Members

John H. Alschuler, Jr. Dan Massiello Chairman, HR&A Advisors, Inc. Senior Vice President-Public Finance, Kosmont Companies

Mr. John Alschuler’s work focuses on development finance, Mr. Dan Massiello brings over 20 years of professional the revitalization of urban communities, regional economic experience in the Public Finance industry to Kosmont development, waterfront redevelopment and asset planning Companies. Mr. Massiello started his career with an east for institutions. John’s core skills include structuring public- coast financial advisory firm, and has been an investment private partnerships, development finance, building parklands, banker in CA for 13 years. and creating innovative development strategies. Mr. Massiello has structured and brought to market over $4 John’s wide-ranging practice is national and international billion of new money and refunding transactions to market in scope ranging from New York to Cincinnati, San for Cities, Redevelopment Agencies, School and Community Antonio to London. His work focuses on large-scale urban College Districts and Special Districts. Successfully completed transformations, as well as discreet real estate transactions. transactions include General Fund Financings (Certificates of Since founding the New York office of HR&A in 1984, he has Participation), Tax Increment, General Obligation, Installment led to bold plans that have reshaped important waterfronts, Purchase, Lease Revenue, Revenue, Special Tax, and Sales downtown districts and neighborhoods. Tax supported financings. A significant portion of these TAP Panelists (left to transactions involved unrated and challenging credits, which right): Dan Massiello, John held several positions in city governments and brings have garnered Mr. Massiello the ability to engineer well- Michael Ross, John his experience in public budgeting and public finance to his Alschuler, Melani Smith, structured and marketable financing vehicles that consistently John Fisher and Tom practice. He served as the City Manager of Santa Monica, meet his clients’ financing goals and objectives. Wulf. California, where he was responsible for the planning and development of the Third Street Promenade.

23 Melani V. Smith, AICP Michael W. Ross President, Principal - Planning and Urban Design, Chief Executive Officer, The Pasadena Center Meléndrez Operating Company

Ms. Melani Smith brings to her work at Meléndrez Mr. Michael Ross is the chief executive officer (CEO) of The communication, management, leadership, and facilitation Pasadena Center Operating Company (PCOC), a nonprofit skills born out of a diverse background in urban planning, organization responsible for managing the Pasadena marketing and public relations. Convention Center, Pasadena Civic Auditorium and the Pasadena Convention & Visitors Bureau. Since joining As Principal and Director of Meléndrez’s planning practice, the PCOC in 2006, MIchael has been responsible for the Melani works at regional, community and site-specific scales, management of the convention center expansion scheduled from engaging project stakeholders, visioning, and creating to open in March 2009 that will include 60,000 square feet conceptual and master plans and design guidelines, through of new exhibit space and a 25,000 square foot ballroom. to grant writing for funding and implementation. Sensitivity to In addition, he oversees the operation of the Pasadena long term livability and sustainability of the urban environment Convention Center, the historical 3,000-seat Pasadena Civic is a cornerstone of Meléndrez philosophy. Key issues, Auditorium and the Pasadena Convention & Visitors Bureau. including walkability and bicycle friendliness, placemaking, and resource and energy conservation are addressed as a Michael has more than 20 years of hospitality industry core part of each planning assignment the firm undertakes. experience with extensive facility operations and destination Melani is President of the Downtown Breakfast Club in Los marketing experience. Prior to joining the PCOC, he was Angeles, was recently appointed to Mayor Villaraigosa’s the first CEO of Team San Jose, a nonprofit public-private Design Advisory Panel in the City of Los Angeles, and in 2007 partnership responsible for operating San Jose’s convention she was appointed to the City of Long Beach’s Planning and cultural facilities, including the 400,000-square-foot commission. San Jose Convention Center, the 2,600-seat Center for Performing Arts and the 3,000-seat Civic Auditorium. Additional executive level facility experience includes stints as general manager of the Sacramento Convention Center Complex and director of the Harborside Convention Complex in Fort Myers, FL and executive director of the Gateway Center/Collinsville Convention & Visitors Bureau in Collinsville, IL.

24 Santa Monica Civic Auditorium Technical Assistance Panel John Fisher, AIA Thomas W. Wulf President, John Sergio Fisher & Associates, Inc. Senior Vice President, Lowe Enterprises Real Estate Group

Mr. John Fisher is a registered architect in the states Mr. Thomas Wulf is Senior Vice President of Lowe Enterprises of Alaska, Arizona, California, Illinois, New York, Ohio, Real Estate Group, responsible for commercial property Pennsylvania, and West Virginia, and he is NCARB certified. development and management in Southern California. John received his Bachelor and Master of Architecture Thomas co-manages Lowe’s New Markets Tax Credits degrees from Carnegie Institute of Technology and was allocation and public-private partnership activities, and a Fulbright scholar in Finland. He was a design instructor currently oversees the firm’s assignment with the cities of at Carnegie Tech. From there, he joined the faculty of the Culver City and Compton. Department of Architecture at the University of California, Berkeley, where he was chairman of the Environmental His past developments include the 1.8 million square foot Control Systems study area. Exchange mixed-use development in Hawthorne, Calif., the 210,000-square-foot, three-building Calabasas Commerce He remains committed to “green” architecture in his current Center and the 140,000-square foot Arboretum Courtyard in work. He has been practicing in California since his time Santa Monica. He is a member of the Urban Land Institute, at Berkeley, with a four-year hiatus as Dean of the School the International Council of Shopping Centers, the US Green of Architecture at Syracuse University. While at Syracuse Building Council, and serves on the Executive Board of University, he supervised the HUD research grant on Making Directors of the Southern California chapter of NAIOP. Mr. Buildings and Facilities Accessible and Usable by Physically Wulf is a USGBC LEED Accredited Professional. Disabled People. Upon his return to California, he opened his present architectural practice. In addition to private practice, John has taught design part time at UCLA and Woodbury University. He has also been a visiting professor at Cal Poly, Pomona, and Tsinghua University in Beijing.

John has 43 years of experience as a registered architect and as a principal of his own architectural firms with offices in California, New York and China. He has been responsible for the design of over $3.5 Billion Dollars US in construction value for cultural, hospitality, commercial, educational and housing facilities around the country and in Asia and Europe.

25 At the Urban Land Institute, our mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide.

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