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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
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