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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 cyclical down tum oryet-un- 33.000 Model 3s were Bold in Iles- The car eompanles talk high costs, electric cars so to make an annual profit, meet the targets, and Ind(• knuwn severity California In the first half. about cutting air pollution far have proved unpmilt- and It's selling cats at only a vtdual European govern- Statewtde sales of new The next -highest seller was and relieving global warm- able. 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A F 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 el se9undobusiness. comlreat-estatelschaduIe -.r-tour ELSEGUNDO Where hit; ideax sato off. e I seg and obu s i ness.com 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 014 Al MO - Nr Ou -,\1.: \, i � _ 1.'� , �� • - - i . �1 x moi/-� Bringing the night fo life with art illuminations - functional and spectacular Ly7II� " f!. . jibe P; A. I —,idw tIA K SaM ON Making the everyday extraordinary with community amenities that are works of art WLad im% ��- Y M., V Linking the city to the sea with art and landscape features, more every year F � . . . . . . . . . . . . "l — i�� =a ■ x'-.= J • Grand Ave. • U) Educating and entertaining with conferences, speakers, and performances ez Scieno ff A`2 i Al erio +�rf C4K .� ` f,4=Ml T- r - Cel u d o. ��i10I� :� '�* 4 Pr d. ��-� � .� � � i _, k e ere ��. Fes iv I in thO Park The EI Segundo Cultural Development Program is about Enhancing Community The Arts and Culture Advisory Committee seeks your support for the Cultural Development Program