AGENDA REPORT
Meeting Date: October 20, 2026
Item Number:
To: Honorable Mayor and City Council
From: Brandy Scott, Arts and Culture Program Associate
Subject: REQUEST FOR THE DISSOLUTION OF THE FINE ART OBLIGATION COVENANT FOR THE PROPERTY LOCATED AT 136 EL CAMINO
DRIVE
Attachments: 1. Beverly Hills Municipal Code Article 8, Section 3-1-809
2. Image of Fin by Alex Israel
3. Fine Art Covenant for 136 El Camino Drive
RECOMMENDATION
Staff recommends the City Council accept the in-lieu fee, assessed at $250,000, to facilitate the property owner’s request to remove the installation, and approve the termination or dissolution of the Fine Art Covenant (Attachment 3) recorded against 136 El Camino Drive, in the form approved by the City Attorney.
INTRODUCTION
Fin is a painted aluminum sculpture by artist Alex Israel that was submitted in 2021 to fulfill a Fine Art Obligation for the property at 136 El Camino Drive. The sculpture was installed on a white marble base and is painted a high-gloss, cobalt blue with dimensions of 82 3/8” height x 78 3/8” length x 3 1/8” width. The piece is part of a series created in homage to the 1960’s Los Angeles Finish Fetish trend and highlights the artist’s experience as a Southern California native. A covenant between the City and the building owner was signed and notarized in 2023.
DISCUSSION
In October of 2024 a representative from the Arka Properties Group (Arka) reached out to the City on behalf of the building owner to inquire about options for removing the piece. The Owner Meeting Date: October 20, 2026
decided the sculpture was no longer compatible with the aesthetic of the lobby and entryway and sought direction on removal. City staff worked with Arka over the past two years while they considered the options to donate the piece to the City with an endowment or pay the in-lieu fee.
The Beverly Hills Municipal Code (Attachment 1) states that a building owner seeking to remove artwork installed to meet their Fine Art Obligation, may donate the artwork to the City with an endowment covering all costs associated with restoration, installation, and maintenance for a length of time to be determined by City Council - or pay an in-lieu fee equal to the current appraised value of the sculpture ($100,000) or the valuation at the time of installation ($250,000), whichever is greater.
The building owner’s original decision was to donate the piece with the requisite endowment. Staff subsequently conducted a site visit to assess the current condition of the sculpture with Art Conservator Christina Varvi of RLA Conservation on Friday, March 4, 2025. At that time, damage was noted on the piece which would have significantly increased the required endowment costs associated with the donation, as restoration costs would be included in the total cost. The damage was reflected in the substantial depreciation of the piece noted in the appraisal.
After much reflection, on September 30, 2026, representatives from Arka Properties Group confirmed they were foregoing the donation of the piece and opted instead to pay the in-lieu fee of $250,000 to facilitate dissolving the covenant. The wire transfer was received on Thursday, October 1, 2026, and the funds were deposited into the City’s Fine Art Fund account. With receipt of the in-lieu payment, it is incumbent upon the City to issue the dissolution of the Fine Art Obligation covenant recorded on the property located at 136 El Camino Drive.
With City Council’s approval to dissolve the covenant, a Termination of Covenant will be drafted by the City Attorney’s Office and circulated for notarized signature. Once completed the document will be recorded and the property owner will be free to do whatever they please with the piece, including removal and demolition.
FISCAL IMPACT
This represents an in-lieu payment of $250,000 to the Fine Art Fund, which is a restricted fund and can only be used for acquisition, maintenance, and promotion of the City’s Fine Art Collection.
Jamie Bumia
Director of Community Services
Approved By
October 20, 2026
ATTACHMENT 1
CITY OF BEVERLY HILLS MUNICIPAL CODE
3-1-809: OWNERSHIP, MAINTENANCE, AND INSURANCE BY THE PROPERTY OWNER:
The property owner:
A. Shall, except if the fine art is placed on city owned property, own such fine art, and if the building is sold, shall transfer ownership of the fine art as an integral part of the sale of the building.
B. Shall execute a recordable covenant running with the land, in a form acceptable to the city attorney, regarding the fine art.
C. Shall maintain such fine art at the on site location as approved by the fine art commission, unless a different on site location is approved by the fine art commission at the request of the property owner.
D. Shall maintain artwork per the guidelines set forth by the artist who created it, or the artist's representative, if applicable.
E. May request the ability to remove the fine art at a later date by offering to donate the piece to the city or by paying the original or present day value of the art, whichever is higher ("removed original art value"). In the event that the previously approved fine art (1) is a structural element of the building; (2) cannot be donated to the city; and (3) its removal cannot reasonably be avoided due to construction, reconstruction or an addition to the building, then the property owner may request to apply the removed original art value to the purchase of new fine art to meet the new fine art obligation. As a condition of the approval of the request to remove the original fine art, the property owner must indemnify the city on a form approved by the city attorney against any claim, liability or financial loss that arises from the removal of the original fine art including, without limitation violations of the Visual Arts Rights Act (VARA) and the California Art Preservation Act (CAPA). Such removal request must be reviewed by the fine art commission and approved by the city council. If the piece will be gifted to the city, the owner must provide the city with an endowment for the piece to pay for transport, storage, reinstallation, insurance and maintenance in an amount acceptable to the city council. If there is construction, reconstruction or an addition to the property in conjunction with the request to remove the original fine art, then there will be a new fine art obligation assessed in accordance with the provisions of this article.
October 20, 2026
ATTACHMENT 2
Fin by Alex Israel
Painted Aluminum
82 3/8” height x 78 3/8” length x 3 1/8” width
136 El Camino - 2023
October 20, 2026
ATTACHMENT 3