2019-11-05 CC Agenda Packet - ITEM #C12 - PRESENTATION - Arts Fund Presentation - Fall 2019Enhancing
Community
The EI Segundo
Cultural Development Program
EI Segundo Arts and Culture
Advisory Committee (ACC)
The ACC is seeking City Council
approval for an EI Segundo
Cultural Development Program
Because arts and cultural programs are major
contributors to the city's quality of life,
attracting and retaining creative people and
businesses and helping grow the
economy
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LA'S HOTTEST BUSINESSES
ARE MOVING TO
EL SEGUNDO
With lower takes, a business -friendly government and an
entrepreneurial business conn munity that crosses every sector,
EI Segundo is a magnet for husinesses on their way up -
RSVP for a private tour from the City of EI Segundo and see
why we are THE location for start-ups, business expansions
and corporate headquarters.
Request your private tour of EI Segundo at
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The Cultural Development Program
would support .. .
Permanent art: Murals, mosaics, sculptures,
artist -designed landscapes, etc.
Temporary art: Short-term art installations,
provisional "landmarks" for events, etc.
Performing arts: Theatre and dance in parks and
on plazas, music in public places, etc.
Public programs: Lectures, conferences, festivals,
workshops, existing projects open to the public
Capital improvements: Artist involvement in city
signs, plazas, parks, beach access, streetscape, etc.
EI Segundo
Creative Economy
Report
Beacon Economics
May 2019
The Creative Economy
Report endorses the idea
To grow the creative economy . . .
• Maintain EI Segundo's unique
community character
• Include artists to be part of city
development and beautification
• Establish a fee to support the
arts in EI Segundo
Sounds good. But .. .
Will it drive away business?
Is it an excessive burden?
Will it discourage development?
What will it ultimately accomplish?
Will it drive away business?
Is it an excessive burden?
Will it discourage development?
What will it ult�ffiately accomplish?
Consider
the regional
picture . 0 0
36 c'it'ies
in Los Angeles County have
percent -for -arts development fees
Alhambra, Azusa, Baldwin Park, Bellflower, Beverly Hills,
Burbank, Calabasas, Carson, Cerritos, Claremont,
Commerce, Culver City, Downey, EI Monte, Glendale,
Huntington Park, Inglewood, Los Angeles, Lancaster,
Lynwood, Malibu, Manhattan Beach, Monrovia, Norwalk,
Paramount, Pasadena, Pomona, Redondo Beach,
Rosemead, Santa Fe Springs, Santa Monica, Sierra
Madre, South Gate, West Covina, West Hollywood,
Westlake Village, and Whittier
36 c'it'ies
in Los Angeles County have
percent -for -arts development fees
Alhambra, Azusa, Baldwin Park, Bellflower, Beverly Hills,
Burbank, Calabasas, Carson, Cerritos, Claremont,
Commerce, Culver City, Downey, EI Monte, Glendale,
Huntington Park, Inglewood, Los Angeles, Lancaster,
Lynwood, Malibu, Manhattan Beach, Monrovia, Norwalk,
Paramount, Pasadena, Pomona, Redondo Beach,
Rosemead, Santa Fe Springs, Santa Monica, Sierra
Madre, South Gate, West Covina, West Hollywood,
Westlake Village, and Whittier
These include high-profile cities that are
attracting new residents and creative industries
36 c'it'ies
in Los Angeles County have
percent -for -arts development fees
2018 winner 2018 nominees 2017 winner 2019 nominees 2018 winner
Alhambra Azusa, B Idwin ark Bellflower,
everl Hills,
Burban , a aba as, Ca son , I e
Commerce, Culver it Downey, EI Monte
Huntington Park, In le , os ngeles, La
Lynwood, Malibu Man attan Beach Monrovia
n t,
dale
caster,
Norwalk.j
Paramou t, Pasadena, Pom na, e o ,
Rosemead Santa Fe Springs, Santa Moni a, Sierra
Madre, Sou e, ovina West Ilywood,
Westlake Village, an Whittier
These also include cities designated
"Most Business -Friendly" by the LA County
Economic Development Corporation
Along with 36
cities, LA
county has
introduced a
percent-
for-arts
ercent-
for-aits
ordinance for
unincorporated
areas
This has
become a
common,
accepted
practice
throughout the
region
It would work
here as well
Our Revised EI Segundo
Cultural Development Program:
1) A 1% fee on commercial/industrial
construction & renovation
2) No fees on residential development
3) A $2 million project threshold
No fees on projects valued below $2 million
4) No caps
Fees apply to full project valuations regardless of size
How does this compare to other cities?
1) A 1% fee on commercial/
industrial construction, renovation
• 29 cities have I% fees
• 7 cities' have fees up to 2%
for larger building projects
•
Ell Segundo's fee would be 1%,
matching the overall standard
Fees are typically based on valuation of
new/renovated construction at time
of permitting
2) No fees on residential
development
• 30* out of 36 cities have 1% fees on
multi -unit residential development
• EI Segundo would have no fees on
residential, more development -
friendly than 30 other cities
Alhambra, Azusa, Baldwin Park, Bellflower, Burbank, Carson,
Cerritos, Claremont, Commerce, Culver City, Downey, EI Monte,
Glendale, Huntington Park, Lynwood, Malibu, Manhattan Beach,
Monrovia, Norwalk, Paramount, Pasadena, Pomona, Redondo Beach,
Santa Fe Springs, Santa Monica, Sierra Madre, South Gate,
West Covina, West Hollywood, and Whittier
3) No caps:
Fees would apply to full project
valuations regardless of size
• Only 4 cities* have caps
• EI Segundo would be consistent
with 32 other cities having no cap
Azusa, Calabasas, Downey, and Redondo Beach
4) $2 million project threshold:
No fees on projects valued below
$2 million
• 11 cities have a $500,000 threshold
• 11 have lower (Lowest: $50K, Baldwin Park)
• 3 have higher (Highest: $1.5M, Burbank)
EI Segundo's threshold at $2,000,000
would be the most business -friendly
Projected Revenue in EI Segundo
Based on previous 10 -year period (no residential)
Valuation
Threshold:
$500 K
$750 K
$ 1.0 M
� $ 2.0 M
10 -Year Total Valuations /
Yearly Average:
$1.09 B / $109 M
$981 M / $98.1 M
$870 M / $87.0 M
$685 M / $68.5 M
I% Fee:
$1.09 M
$981 K
$870 K
$685 K
Available for Cultural Development Program
Revenur-
permit
fee on new /
renovated industrial
& commercial
developments over
$2,000,000
Endowments,
bequests,
grants, and
donations
Into city-wide
pooled
account
Special account
managed by city
exclusively for
public art
Revenur-
permit
fee on new /
renovated industrial
& commercial
developments over
$2,000,000
Endowments,
bequests,
grants, and
donations
For art on
developer's
own site: 1 %
requirement
Into city-wide
pooled
account
Special account
managed by city
exclusively for
public art
Revenur-
permit
fee on new /
renovated industrial
& commercial
developments over
$2,000,000
Endowments,
bequests,
grants, and
donations
For art on
developer's
own site: 1 %
requirement
ACC approval
of Public Art
Plan
Hire professional art
consultant / create proposal
Into city-wide
pooled
account
Propos...i.
Artist initiated /
ACC -initiated
(Juried art competitions)
City Council approval
of annual budget /
ACC approval of public art
Special account
managed by city
exclusively for
public art
Revenur-
permit
fee on new /
renovated industrial
& commercial
developments over
$2,000,000
Endowments,
bequests,
grants, and
donations
For art on
developer's
own site: 1 %
requirement
Propos...,_.
Artist initiated /
ACC -initiated
(Juried art competitions)
City Council approval
of annual budget /
ACC approval of public art
ACC approval Olppr'
of Public Art
Plan
Hire professional art
consultant / create proposal
Into city-wide
pooled
account
Funded
Projects
Special account
managed by city
exclusively for
public art
■
What will it ultimately accomplish?
In summary, the proposed Cultural
Development Fee is consistent with those
of other cities that are growing and
prospering in today's economy,
and much more business -friendly
Will it drive away business?
Is it an excessive burden?
Will it discourage development?
What will it ultimately accomplish?
The term "Public Art"
may bring to mind
something like a
sculpture on a plaza.
But the EI Segundo
Cultural Development
Fund proposes a much
larger vision:
Enhancing
Community
Creating art events
that engage residents and attract new visitors
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Bringing the night fo life
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Making the everyday extraordinary
with community amenities that are works of art
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Linking the city to the sea
with art and landscape features, more every year
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Educating and entertaining
with conferences, speakers, and performances
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The EI Segundo
Cultural Development Program
is about
Enhancing Community
The Arts and Culture Advisory
Committee seeks your
support for the
Cultural Development Program