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CC - Approval of An Amendment to the Parking License Agreement with ArcLight Cinemas for Parking in the City’s Downtown Parking Structures.
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Contact Person/Dept: Todd Tipton/CDD
Phone Number: (310) 253-5783
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/21/17); Oliver McMillan and ArcLight Cinemas (06/21/17); Downtown Business Association and Chamber of Commerce (06/21/17).
Department Approval: Sol Blumenfeld, Community Development Director (06/16/17)
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RECOMMENDATION
Staff recommends the City Council approve an amendment to a Parking License Agreement between the City of Culver City (City) and ArcLight Cinemas (ArcLight) for parking in the City’s downtown parking structures.
BACKGROUND/DISCUSSION:
In 2002 the former Culver City Redevelopment Agency (CCRA) entered into a Disposition and Development Agreement with OM to construct a movie theater (Theater), Town Plaza and related public improvements, and convey the land where Trader Joe’s and Yalla/Cold Stone/Chipotle (Inline Shops) are located.
The Theater’s construction was funded by the former CCRA on property owned by the City (the “Property). OM entered into a lease with the City to manage the Property and OM entered into a management agreement with Pacific Theater to operate the Theater. The management agreement with Pacific Theater remained in place until OM purchased the Property in 2014. When OM purchased the Property all rights afforded to them by the DDA were conveyed as well. After purchasing the Property, OM entered into an agreement with ArcLight to operate the Theater and then remodeled the Property.
The DDA includes a parking agreement that requires the City to provide Theater patrons free parking for four hours (two hours free with a two-hour validation) and provide parking to employees of the Theater, inline shops (Yalla, Cold Stone, Chipotle) and Trader Joe’s in the City’s parking structures. The four-hour time period was intended to encourage Theater patrons to see a movie and have a meal either before or after. The requirement to provide four-hours of free parking has since expired.
In 2015 the City Council modified the downtown parking rates to better manage its parking resource and fund much needed capital improvements. The revised rates allow one hour free and $1 for each 30 minutes thereafter up to a maximum of $12.
Walker Parking, the City’s parking consultant, was asked to determine what impact the revised rates could have on ArcLight’s operation. Based upon research of nearby city parking rates relative to movie theaters, Walker believes there will be no impact and recommends that the revised rates be applied, and that the City continue to provide two-hour validations. With a two-hour validation ArcLight patrons will receive three hours of free parking (one hour via the revised rates and two hours via validations). Those staying longer will be required to pay $1 for each 30 minutes thereafter.
The revised rate structure for ArcLight will be memorialized in the proposed amendment to the parking agreement.
FISCAL ANALYSIS:
ABM currently accepts on average approximately 4,000 two-hour validations per month, which does not currently generate revenue.
RECOMMENDED MOTIONS
That the City Council:
1. Approve an amendment to a Parking License Agreement between the City of Culver City and ArcLight Theaters for parking in the City’s downtown parking structures;
2. Authorize the City Attorney to prepare the necessary documents;
3. Authorize the City Manager to approve the documents on behalf of the City.