1. Managing the Future of Downtown Santa Monica Project Update Progressive Urban Management Associates, Inc. Kristin Lowell Inc. December 2007 Progressive Urban Management Associates, Inc. Kristin Lowell Inc. December 2007 ATTACHMENT 1.

2. Project Overview The best management and marketing approach for the multi-billion dollar real estate & community asset that is Downtown Santa Monica. A feasible plan that engages a diverse array of downtown participants and builds support for immediate implementation. The best management and marketing approach for the multi-billion dollar real estate & community asset that is Downtown Santa Monica. A feasible plan that engages a diverse array of downtown participants and builds support for immediate implementation.

3. Why Develop a New Management Approach Now? New competition Ongoing concern with cleanliness, parking, infrastructure and street populations Create certainty & redefine city resources and commitment Opportunity to balance goals – real estate vs. community asset Refresh Bayside management model New competition Ongoing concern with cleanliness, parking, infrastructure and street populations Create certainty & redefine city resources and commitment Opportunity to balance goals – real estate vs. community asset Refresh Bayside management model

5. Results from Participant Outreach 200+ conversations, discussions & surveys… Beginning in the summer of 2006, meetings with property owners, businesses, city officials & elected leaders Roundtables & downtown community survey Consumer intercept & resident telephone surveys Plan concepts developed at Bayside meetings, endorsed by City Council in April 2007 Working Group formed in the summer of 2007 to advance implementation 200+ conversations, discussions & surveys… Beginning in the summer of 2006, meetings with property owners, businesses, city officials & elected leaders Roundtables & downtown community survey Consumer intercept & resident telephone surveys Plan concepts developed at Bayside meetings, endorsed by City Council in April 2007 Working Group formed in the summer of 2007 to advance implementation

6. Results from Participant Outreach Vision for Downtown Santa Monica Clean & safe Premier urban destination with energy & vibrancy Walkable More abundant parking Friendly, inviting, comfortable & welcoming Unique character & unique shopping experience The community’s “living room” – part of civic identity Vision for Downtown Santa Monica Clean & safe Premier urban destination with energy & vibrancy Walkable More abundant parking Friendly, inviting, comfortable & welcoming Unique character & unique shopping experience The community’s “living room” – part of civic identity

7. Results from Participant Outreach Priorities for Improvement Improve & expand clean & hospitality services, including alley cleaning and ambassadors Reduce homeless and other street populations Upgrade parking infrastructure and increase supply Special projects to upgrade streetscape, keep downtown competitive Ensure that the downtown management organization is accountable to those who pay Priorities for Improvement Improve & expand clean & hospitality services, including alley cleaning and ambassadors Reduce homeless and other street populations Upgrade parking infrastructure and increase supply Special projects to upgrade streetscape, keep downtown competitive Ensure that the downtown management organization is accountable to those who pay

8. Downtown Management Framework Objectives Improve and protect downtown Santa Monica, both as a premier real estate and community asset… Excellence Efficiency Accountability Balance Objectives Improve and protect downtown Santa Monica, both as a premier real estate and community asset… Excellence Efficiency Accountability Balance

9. Downtown Management Framework Clean and Friendly Initiative More sidewalk and public space cleaning Add equipment, personnel Add alley cleaning Add ambassadors Add restroom monitoring Clean and Friendly Initiative More sidewalk and public space cleaning Add equipment, personnel Add alley cleaning Add ambassadors Add restroom monitoring

10. Downtown Management Framework Parking Management & Development Implement the 2002 recommendations from the Downtown Parking Task Force Support current redevelopment agency efforts Explore use of additional parking revenue to reinvest in the parking system Parking Management & Development Implement the 2002 recommendations from the Downtown Parking Task Force Support current redevelopment agency efforts Explore use of additional parking revenue to reinvest in the parking system

11. Downtown Management Framework Marketing & Special Projects Homeless outreach Explore transportation alternatives Downtown urban design Marketing and promotions Create capacity for bonding in near future Marketing & Special Projects Homeless outreach Explore transportation alternatives Downtown urban design Marketing and promotions Create capacity for bonding in near future

12. Management Framework -- Financing Recommendations to the City Bayside/City collaboration on maintenance through new accountability standards and services partnership Explore increasing amount of parking revenue reinvested in downtown parking Participate in future capital improvements & replacement Recommendations to the City Bayside/City collaboration on maintenance through new accountability standards and services partnership Explore increasing amount of parking revenue reinvested in downtown parking Participate in future capital improvements & replacement

13. Management Framework -- Financing Recommendations to Downtown Eliminate Downtown Business Assessment Replace with New Property-Based Assessments through Local Legislation Recommendations to Downtown Eliminate Downtown Business Assessment Replace with New Property-Based Assessments through Local Legislation

14. Property-Based Assessment District Progress through the Fall of 2007 Working Group formed to develop plan – August 2007 National contractor evaluates existing maintenance services, provides estimates for supplemental cleaning & new ambassadors City of Santa Monica identifies base level of service, creating new work plan to concentrate on core services Working group reviewing emerging work program, budget and assessment scenarios Open forums to review emerging concepts in November Progress through the Fall of 2007 Working Group formed to develop plan – August 2007 National contractor evaluates existing maintenance services, provides estimates for supplemental cleaning & new ambassadors City of Santa Monica identifies base level of service, creating new work plan to concentrate on core services Working group reviewing emerging work program, budget and assessment scenarios Open forums to review emerging concepts in November

16. Property-Based Assessment District Maintenance Program To create budget models, the City has evaluated re- deploying all downtown maintenance to the Promenade, parking structures and alleys. National contractor estimate for supplemental cleaning in remainder of downtown @ $1.3M annually Seven days a week, litter removal, machine sweeping, graffiti removal, landscaping, emergency cleaning, etc. All resources to be combined and jointly managed. Maintenance Program To create budget models, the City has evaluated re- deploying all downtown maintenance to the Promenade, parking structures and alleys. National contractor estimate for supplemental cleaning in remainder of downtown @ $1.3M annually Seven days a week, litter removal, machine sweeping, graffiti removal, landscaping, emergency cleaning, etc. All resources to be combined and jointly managed.

17. Property-Based Assessment District Ambassador Program National contractor estimate for ambassadors deployed on foot & bicycle throughout downtown @ $1.2M annually Seven days a week averaging 15 hours per day Includes restroom attendants New for downtown Ambassador Program National contractor estimate for ambassadors deployed on foot & bicycle throughout downtown @ $1.2M annually Seven days a week averaging 15 hours per day Includes restroom attendants New for downtown

18. Property-Based Assessment District Marketing & Special Projects Homeless outreach Explore transportation alternatives Downtown urban design Marketing and promotions Create capacity for bonding in near future Marketing & Special Projects Homeless outreach Explore transportation alternatives Downtown urban design Marketing and promotions Create capacity for bonding in near future

19. Draft PBAD Budget Enhanced Maintenance$ 1,289,000 Ambassador Program$ 1,228,000 Marketing Enhancements$ 500,000 Special Projects$ 350,000 Administration$ 336,700 $ 3,703,700

20. Property-Based Assessment District Assessment Methodology Different weighting between Promenade, remainder of Bayside and remainder of Downtown Acknowledges differences in values, frequency of services Promenade x4, Bayside x2, Downtown x1 Adjusted rate for residential and exempt uses – pay for maintenance & ambassadors only Assessment applied to building or lot square footage, whichever is greater Assessment Methodology Different weighting between Promenade, remainder of Bayside and remainder of Downtown Acknowledges differences in values, frequency of services Promenade x4, Bayside x2, Downtown x1 Adjusted rate for residential and exempt uses – pay for maintenance & ambassadors only Assessment applied to building or lot square footage, whichever is greater

21. Draft PBAD Assessment Estimates Annual RatesBuilding or Lot Sq. Ft. Promenade$ 0.88 Remainder of Bayside$ 0.44 Remainder of Downtown$ 0.22 Res/Exempt: Bayside$ 0.32 Res/Exempt: Downtown$ 0.16

22. Estimated Assessment Example #1 1351 Third St Promenade Lot: 7,500 sq.ft. Building: 18,500 sq.ft. 18,500 x 0.88 = $ 16,280 per year 1351 Third St Promenade Lot: 7,500 sq.ft. Building: 18,500 sq.ft. 18,500 x 0.88 = $ 16,280 per year

23. Estimated Assessment Example #2 1299 Ocean Blvd Lot: 32,000 sq.ft. Building: 102,000 sq.ft. 102,000 x 0.44 = $ 44,880 per year 1299 Ocean Blvd Lot: 32,000 sq.ft. Building: 102,000 sq.ft. 102,000 x 0.44 = $ 44,880 per year

24. Estimated Assessment Example #3 1533 4 th Street Lot: 7,500 sq.ft. Building: 15,600 sq.ft. 15,600 x 0.32 = $ 4,990 per year 1533 4 th Street Lot: 7,500 sq.ft. Building: 15,600 sq.ft. 15,600 x 0.32 = $ 4,990 per year

25. Estimated Assessment Example #4 1415 Ocean Blvd. Lot: 15,000 sq.ft. Building: 50,000 sq.ft. 50,000 x 0.44 = $ 22,000 per year 1415 Ocean Blvd. Lot: 15,000 sq.ft. Building: 50,000 sq.ft. 50,000 x 0.44 = $ 22,000 per year

26. PBAD Governance Bayside as the Governing Board (15 members) Develop budgets and assessments, oversight for day-to- day service delivery One-half City Council appointed (7 appointees) One-half Property-owner appointed (7 appointees) One City Manager or designee Mix of property owners, businesses, residents Geographic representation – Promenade, Bayside & Downtown Bayside as the Governing Board (15 members) Develop budgets and assessments, oversight for day-to- day service delivery One-half City Council appointed (7 appointees) One-half Property-owner appointed (7 appointees) One City Manager or designee Mix of property owners, businesses, residents Geographic representation – Promenade, Bayside & Downtown

27. PBAD Next Steps… Working Group to guide refinement of plan concepts Develop formal PBAD Management Plan (early 2008) Working Group, Bayside endorsement of Plan Petition campaign to secure property owner support (spring 2008) City Council ordinance to create district (summer 2008) Mail ballot to approve assessments (summer 2008) PBAD begins new services (January 1, 2009) Working Group to guide refinement of plan concepts Develop formal PBAD Management Plan (early 2008) Working Group, Bayside endorsement of Plan Petition campaign to secure property owner support (spring 2008) City Council ordinance to create district (summer 2008) Mail ballot to approve assessments (summer 2008) PBAD begins new services (January 1, 2009)

28. Managing the Future of Downtown Santa Monica Project Update Progressive Urban Management Associates, Inc. Kristin Lowell Inc. December 2007 Progressive Urban Management Associates, Inc. Kristin Lowell Inc. December 2007