Agenda packet, study session — Los Altos City Council, May 9, 2023

CITY COUNCIL STUDY

SESSION
AGENDA
5:30 PM - Tuesday, May 09, 2023
via Videoconference and In Person
Please Note: The City Council will meet in person as well as via Telephone/Video Conference Telephone:1-669-444-9171 / Webinar ID: 864 4642 7738
https://losaltosca-gov.zoom.us/j/86446427738?pwd=cjhwSWNVMzFYcGc5WmxyOVRJY29qUT09 Passcode: 367179
TO PARTICIPATE IN-PERSON: Members of the public may also participate in person by being present at the Los Altos Council Chamber at Los Altos City Hall located at 1 N. San Antonio Rd, Los Altos, CA
TO PARTICIPATE VIA VIDEO: Follow the link above. Members of the public will need to have a working microphone on their device and must have the latest version of ZOOM installed (available at https://zoom.us/download). To request to speak, please use the “Raise hand” feature located at the bottom of the screen. To participate via telephone you may call the number listed above and press *9 to request to speak.

TO SUBMIT WRITTEN COMMENTS: Prior to the meeting, comments on matters listed on the agenda may be emailed to [email protected]. Emails sent to this email address are sent to/received immediately by the City Council. Please include a subject line in the following format:

PUBLIC COMMENT AGENDA ITEM ## - MEETING DATE STUDY SESSION Correspondence submitted in hard copy/paper must be received by 2:00 PM on the day of the meeting to ensure distribution prior to the meeting. Correspondence received prior to the meeting will be included in the public record. .

Public testimony will be taken at the direction of the Mayor, and members of the public may only comment during times allotted for public comments.

AGENDA

MEETING CALLED TO ORDER

CONFIRM QUORUM

DISCUSSION ITEM(S)
1 5/9/2023 CITY COUNCIL STUDY SESSION AGENDA Page 2 of 2

1. Receive update from the Downtown Theater Working Group on the Downtown Theater Feasibility Study

ADJOURNMENT

SPECIAL NOTICES TO THE PUBLIC
In compliance with the Americans with Disabilities Act, the City of Los Altos will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk 72 hours prior to the meeting at (650) 947-2610.

Agendas Staff Reports and some associated documents for City Council items may be viewed on the Internet at http://www.losaltosca.gov/citycouncil/online/index.html. Council Meetings are televised live and rebroadcast on Cable Channel 26.

On occasion the City Council may consider agenda items out of order. 2 Los Altos Theater Study
Final Summary Report
Prepared for the Los Altos Stage Company
March 23, 2023
3 Agenda Item 1.

The following summarizes the feasibility study process, findings, and recommendations for a new theater. In the pages following, we have described the context and market for the proposed new theater, described a preferred facility vision, forecasted likely utilization for performances, programs, and community uses, and estimated facility and operational requirements and costs.

This report describes market and organizational conditions that support a base case for a new theater. With this completed, effort can now move to planning in greater detail and gathering support for the next phases. This report is intended to serve as a springboard for further decision-making regarding the development of a new theater for the Los Altos community.

The next seven (7) pages contain a high-level executive summary. Greater detail, analysis, and background information can be found in the body of the report and in the appended materials.

We would like to acknowledge the Los Altos Stage Company Board of Directors, the New Theatre Task Force, and the Los Altos City Council for their support of this study.

INTRODUCTION
4 Agenda Item 1.

Executive Summary

Page 3 ends

AMS Planning & Research, in partnership with theater
planning firm Schuler Shook, worked with the New Theater Task Force and Los Altos Stage Company to assess the
feasibility of developing a community-scaled theater space for the residents of Los Altos. Over the course of two
phases of work, we found that there is both need and
opportunity for replacement of the existing Bus Barn
Theater with a degree of added space to accommodate a
wider variety of community activity.

In our first phase, we studied market conditions, the
overall health and operations of the Stage Company, and the supply of other venues in the market, and also
collected input regarding community goals, attitudes,
opinions, and aspirations about arts, culture, and
downtown Los Altos.

Our second phase focused on defining a space that meets both community and Stage Company needs and goals. We
developed a profile and mock schedule of activity that
would take place in a new facility and, from there,
developed space plans and an operating financial forecast.

Phase 1
Assessing Feasibility
• Supply, Demand, and
Aspiration
Phase 2
Setting Definition
• Operating Model,
Building Description,
Financial Forecast
Scope of Work
5 Agenda Item 1.

Background – Downtown Vision Plan
In 2018, the Los Altos City
Council adopted the Los Altos
Downtown Vision Plan “as a
guiding document that we can
all aspire to.”
The plan calls for the
development of a live theater
venue on Parking Plaza 2.

Page 4 ends

References : https://www.losaltosca.gov/developmentservices/page/downtown- vision; Supported Key Attributes (selected), page 7; Vision Elements (selected), page 16; Opportunity Sites (selected), page 26
6 Agenda Item 1.

Background - LASC & City MOU
In 2021, LASC and the City entered into a three-year nonbinding Memorandum of Understanding regarding potential development of Downtown Parking Plaza No. 2.

The key points are excerpted here:

Page 5 ends

7 Agenda Item 1.

Executive Summary

Page 6 ends

In seeking to understand
the state of the Stage
Company, AMS analyzed
operating data going
back to fiscal year 2012
and up to 2019, preCOVID. We consistently
saw steady and
measured growth in the
Company’s revenues and
expenses.

This indicates solid
management and
oversight and that
programming is meeting
community interests and
perceptions of value.
60%
growth in revenue in years
leading up to 2020
(pre-COVID)
53%
growth in attendance in
years leading up to
2020
(pre-COVID) 53%
of patron households
have children living at
home – indicating
strong potential for
youth and multigenerational
programming
40%
of households in the
primary market have
incomes over $200k – the
highest concentration in
California
55%
of the market’s
population is under age
40 – representing strong
future growth potential
for arts patronage
AMS analyzed the market area and zeroed
in on a collection of 15 zip codes that we
believe comprise the Theater’s primary
market. This geography includes a total
population of approximately 387,000
people.

In short, we found the primary market
area to be extremely strong –
demographically speaking – for greater
consumption of arts and cultural activity.

A thorough analysis of the Stage
Company’s database of over 10,000
patrons was also conducted and found
that a strong base of followers exists
from which to build, with ample
opportunity for future growth of both
program consumers and philanthropic
supporters who could be tapped with the
right strategies, approaches, and
campaigns.

The Company & The Market
8 Agenda Item 1.

Executive Summary

Page 7 ends

Community Input
In order to gain insight into what community members, patrons of the theater, and other stakeholders are thinking with respect to the Stage Company and a new, community-facing facility, we conducted a web-based community survey. We heard from 445 respondents who self-selected to participate.

The survey found that there IS significant interest for greater training opportunities for young people, as well as for attending a range of performances including live music, comedy, lectures, film, and, of course, live theater. A majority felt that the advantages of developing a new theater would be to enhance downtown Los Altos as a hub of economic and cultural activity, and to bring the community a sense of pride – pride of place.

Our major take-away from the data is that people see this project as a community resource for the residents of Los Altos more so than as a regional destination. This project is about serving more of the Los Altos community and doing it better.

Survey responses
received from
over 440 area
residents
There is high interest
in diverse content,
including educational
programs for young
people, film, lectures,
theater, & live music
Stakeholders envision
a multi- and intergenerational gathering
place that contributes
to downtown vitality
9 Agenda Item 1.

Executive Summary

Page 8 ends

To begin developing an operational forecast, we worked with LASC to map out the likely activity level of a new theater space. We put together a highly detailed calendar of community events, classes, rehearsals, performances, and facility rentals that would take place throughout a typical year.

The breakdown of this activity is summarized in the chart above. We plotted over 725 unique uses of the building including community events and rental of the space. Over a quarter of the use would be for classes, workshops, and theater camps for young people. The space would be utilized day and evening and often for more than one activity at a time. For example, a film might be shown in one space while young people are taking an acting class or rehearsing in another.

The forecasted activity conservatively generates annual attendance of over 20,000 at the building, based on an 85% average capacity sold for ticketed events and performances.

Activity Forecast
Rehearsal,
307
Classes/Workshops/Camps,
197
Performance, 158
Other (non-performance),
63 Annual attendance of 20,500 from over
725 activities annually, including:
 Community events
 Concerts, lectures, film, comedy, & family
performances
 Rental uses
 LASC & LAYT performances
 Classes & camps for young people
 Rehearsals
10 Agenda Item 1.

Executive Summary

Page 9 ends

Facility Program
• 23,400 square feet
• 13,000 sq. ft. minimum site footprint required
• Order of magnitude cost = $1,000/sq. ft.
160-seat theater Back of house
support spaces
Lobby, patio, &
community
gathering spaces
Dedicated youth lounge, rehearsal & teaching spaces,
offices, storage
Schuler Shook theater planners worked with LASC leaders to determined that the building needed to contain this array of activity would consist of a 160-seat mainstage, configured in a traditional proscenium style.

Theaters also require ample backstage spaces and room for community gathering in the front of the house. This building program includes a suitably-sized lobby and outdoor patio area, a special lounge space dedicated to Los Altos Youth Theatre, storage, dressing rooms, and other essential support spaces.

An appropriate site needs to accommodate a footprint of between 13,000 and 14,000 square feet, which can be accomplished at the downtown parking plaza site as a stand-alone project or as part of a larger, mixed-use development. However, it cannot be
accommodated at the current Bus Barn site without spilling over onto adjacent land uses.

In terms of square feet, the facility would be over 23,000 when “grossed up,” which is the allocation used to account for walls, hallways, duct runs, sprinkler control rooms, etc.

An order of magnitude analysis of likely project costs for a theater in the Bay Area was conducted by the Schuler Shook team, which determined a project cost range of $1,000 per square foot, including hard and soft project costs. Therefore, this building program would be in the range of $23 million to develop.

The LASC team envisions this cost to be met through a
community-wide capital campaign. The next step is to determine the funding plan to raise this money.
11 Agenda Item 1.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
FY 2023 FY 2024 FY 2025 FY 2026 Pre-Opening Year 1 Year 2 Year 3 Year 4 Base Year

CONTRIBUTED REVENUE

EARNED REVENUE

OPERATING EXPENSES
Executive Summary

Page 10 ends

Finally, we worked through a number of key operating assumptions and researched comparable theaters to arrive at an operating financial forecast.

The forecast shows that the operating budget for the building would normalize at around $1.7 million in operating year 5 (which would be 8 to 10 years from now) with revenue evenly split between earned sources, such as ticket sales, rents, tuitions, and concessions, and contributed support, in line with industry benchmarks.

This budget includes LASC, Youth Theatre, building operations, and occupancy costs (heating/cooling, utilities, security, insurance, etc.) The operation of LASC will build and grow to this point, with the greatest growth forecast to occur in contributed revenue, which can result from the significant capital campaign required to construct the facility.

As it builds towards this normalized operational forecast, LASC will gradually introduce expanded educational programming and external rentals, simultaneously ramping-up the staff required to program and operate the new facility to its fullest capacity.

Operating Forecast
12 Agenda Item 1.

MOVING FORWARD…
Where do we go from here?

1. City to Determine Preferred
Site & Development
Approach • Support City staff to determine if a stand
-
alone or mixed-use development
approach is most feasible

2. Conduct a Capital
Fundraising Analysis • To understand the environment in which a capital campaign would occur
• To develop an achievable capital
campaign strategy
13 Agenda Item 1.

REPORT

CONTENTS

1. Context 11
A. Study Scope
B. Current Snapshot

2. Emerging Opportunity 41
A. Comparable Projects
B. Development Approaches

3. Preferred Scenario 44
A. Activity Profile
B. The Building
C. The Operation

4. Recommendations 63

5. Appendices 65
Page
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 13
14 Agenda Item 1.

Study Scope

CONTEXT
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page
14 15
Agenda Item 1.

STUDY
SCOPE
The Los Altos Stage Company (LASC) engaged AMS Planning & Research, along with theater planners Schuler Shook, to conduct a feasibility study for the development of a new home. The team sought to study, evaluate and develop plans and strategies to move the project forward. The primary goal of the study was to help LASC make a confident, business-based decision about the most effective building and business plan for a new or redeveloped facility.

Six key questions guided this work:

1. What are the community’s priorities, needs and opportunities for a new theater building?

2. What are the community’s programmatic interests and attendance patterns and preferences?

3. What are the local and regional market conditions and competitive landscape for the development of a new theater?

4. What is the best balance of activity to both broaden and deepen LASC offerings and provide space for community use?

5. What is the appropriate facility configuration for the most relevant LASC, community and regional performing arts needs?

6. What are the best operating structure and policies? How are they manifested financially?
A feasibility study
for the development
of a new home for
LASC.

Appendix F contains
narrative description
of the scope of work
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 15
16 Agenda Item 1.

STUDY
SCOPE
Phase 1: Situation Analysis

1. Background & Operations Review

2. Kick-Off

3. Stakeholder Engagement

4. 360 Market Scan

5. Patron Assessment

6. Strategy Session & Workshop
Phase 2: Business Planning

1. Activity Mapping

2. Exemplar Learning

3. Facility Planning

4. Financial Projections

5. Final Reporting
Assessing Feasibility:

Supply, Demand, and
Aspiration
Setting Definition:

Operating Model,
Building Program,
Financial Forecast
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 16
17 Agenda Item 1.

STUDY
SCOPE:

To increase the vibrancy of Los Altos’ downtown business district by building a performing arts venue that will present cultural activities and programs
To utilize Los Altos’ existing and longstanding
community-based theater arts and youth theater
education programs to provide programming and
management for the venue
To increase the local cultural participation of and
engagement by Los Altos residents by expanding education and community access opportunities in the new venue
To attract residents of surrounding communities to Los
Altos’ downtown business district for expanded and varied nighttime programs
LASC established a
set of goals for the
development of a
new theater in Los
Altos.

These goals served
as building blocks
for the work of the
study.

Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 17
18 Agenda Item 1.

Current Snapshot

CONTEXT
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 18
19 Agenda Item 1.

Solid growth over five years pre -covid with revenues meeting expenses AMS Finding: Stage Company on Firm Foundation

Page 19 ends

60%
growth in revenue in
years leading up to 2020
(pre COVID)
53%
growth in attendance in
years leading up to 2020
(pre COVID)
In seeking to understand
the state of the Stage
Company, we analyzed
operating data going back
to 2012 up to fiscal year
2019, pre-covid. When we
did this we consistently
saw steady and measured
growth in the Company’s
revenues and expenses.

This indicates solid
management and
oversight and
programming that is
meeting community
interest and perceptions
of value. 20
Agenda Item 1.

CURRENT
SNAPSHOT:

Operations
LASC has been
making it work!
• Revenues have
historically met
expenses… even in
growth mode
0 100,000
200,000
300,000
400,000
500,000
600,000
FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 Revenue & Expenses

TOTAL REVENUE TOTAL EXPENSES
0 50,000
100,000
150,000
200,000
250,000
300,000
FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 Ticket Sales & Production Costs
(including marketing)
Ticket Sales TOTAL Total Production Costs
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 20
21 Agenda Item 1.
• LASC single tickets
were seeing strong
growth pre - COVID
• The Company has
increased reliance
on single ticket
revenue 0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 Season & Single Ticket Sales
Single Tickets Season Tickets

CURRENT
SNAPSHOT:

Operations
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 21
22 Agenda Item 1.
• Company growth is
fueled by sales
• Contributed
revenue has
remained
~$150k/year
0 50,000
100,000
150,000
200,000
250,000
300,000
350,000
FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 Earned & Contributed Revenue
Total Earned Income Total Contributed Income

CURRENT
SNAPSHOT:

Operations
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 22
23 Agenda Item 1.
• There is an
increasing
reliance on sales
• This coin has two
sides… 49% 41% 43% 44% 42% 42% 34% 35%
51% 59% 57% 56% 58% 58% 66% 65%
FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 Earned / Contributed Ratio
% Contrib'd % Earned

CURRENT
SNAPSHOT:

Operations
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 23
24 Agenda Item 1.

CURRENT
SNAPSHOT:

The Market
Santa Clara County’s
nonprofit universe…
• A bit under 10% of
all charitable
organizations are
focused on arts and
culture, with an
important minority
working in LASC’s
“sweet spot”
4,600 nonprofits in Santa Clara
County
387 with a primary purpose
in the arts and culture
sector
24 that are theaters or
performing arts centers
including LASC
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 24
25 Agenda Item 1.

CURRENT
SNAPSHOT:

The Market
The County’s
Theaters and
performing arts
organizations saw
healthy but flat
results, pre -
pandemic
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
2016, 20
organizations
2017, 22
organizations
2018, 21
organizations
2019, 17
organizations
2020, 12
organizations
Financial results for Santa Clara County theaters & PACs Aggregate revenue Aggregate expenses
Note: The Guild Theatre is not shown in this chart, due to capital funding.

Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 25
26 Agenda Item 1.

CURRENT
SNAPSHOT:

The Market
Contributed revenue
was 25% - 30% of total
revenue pre -
pandemic
Can the market
sustain a bigger ask?
National averages
would suggest, yes
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
2016, 20
organizations
2017, 22
organizations
2018, 21
organizations
2019, 17
organizations
2020, 12
organizations
Revenue mix for Santa Clara County theaters & PACs
Aggregate revenue Aggregate contributed revenue
Note: The Guild Theatre is not shown in this chart, due to capital funding.

Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 26
27 Agenda Item 1.

CURRENT
SNAPSHOT:

The Market
A 5- year summary
(2015- 2020) of
revenue to theaters
and PACs in Santa
Clara County and 4
benchmark markets
shows that in
affluent California
counties, theaters
and PACs rely more
on earned than
contributed income.
29%
71%
Santa Clara
County
37%
63%
Alameda
County
27%
73%
Orange
County
57%
43%
San Diego
County
40%
60%
San Francisco
County
contributed
earned
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 27
28 Agenda Item 1.

CURRENT
SNAPSHOT:

The Market
Giving is changing and
so is the pool of
prospective donors.

The “emerging giving code” of disruption and systemic
impact is replacing traditional focus on “charity”
While most of the money is still going to organizations outside of the region, there is a growing trend toward local community-based giving
• Noteworthy donors like Mackenzie Scott and Chan
Zuckerberg funding locally with urgency and
unrestricted, large grants
• The region’s private and family foundations are still committed to local impact
Making the case and connecting to giving priorities is key Source: “Silicon Valley Fortunes Grow, but Frustrating Trends in the Region’s Philanthropy Persist.” American Nonprofit Academy (September 2021)
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 28
29 Agenda Item 1.

CURRENT
SNAPSHOT:

The Market
35+ performance
venues* • 2 0 - mile radius • ~50% below 500
seats
• ~55% traditional or
black box theaters
• Low % of multi-
purpose spaces
outside of churches
and community
centers
• 50% academic or
government- owned /
operated
*Excludes major commercial
venues
Seating
Capacity
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 29
30 Agenda Item 1.

CURRENT
SNAPSHOT:

The Market
A sample of 75+
event venues within
10 miles; an
opportunity for a
smaller - scale, low
rent option
Source: Eventective.com
$-
$5
$10
$15
$20
$25
$30
$35
$40
0 5
10 15
20 25
Number of Venues
Average Rent/Seat
Event Facilities Within 10 Miles
Number of Venues Average Rent/Seat
AVG Cost/Seat $23
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 30
31 Agenda Item 1.
• The primary market
for Los Altos Stage
is the adjacent
ZIPs
• Top 13 patron ZIPs
account for 50% of
records
• Predominantly in
Los Altos,
Mountain View,
Sunnyvale,
Cupertino, Palo
Alto
• See Appendix A for
full Market &
Patron Analysis
findings.

CURRENT
SNAPSHOT:

Patron
Summary* 15 Zips
• Population: 387,390
• Area (sq miles): 91.6
• Ppl/sq miles: 5,697.14
Primary market area
(approximate)
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 31
Map of ZIP codes analyzed
32 Agenda Item 1.

CURRENT
SNAPSHOT:

Patron
Summary
A tight primary market area, with majority hyper-local
patron base
Patrons are wealthier, older, and more racially homogenous than the broader market
 Also, strong coexisting potential with children’s
programming
 Top “persona” patron segments reflect older and family life, highest incomes and engagement in arts and culture Strong donor potential in existing nearby market with high household incomes and housing values
Expansion to the north and east portion of the market
requires consideration of programming and access
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 32
33 Agenda Item 1.

CURRENT
SNAPSHOT:

Community
Survey
See Appendix C for
aggregate survey
results
Most respondents are engaged with cultural life in Los Altos and the broader Bay Area
Community pride, arts education, and drawing visitors to Los Altos are seen as benefits of a new theater by most
Significant interest in programming diverse event types City-provided land for a new theater is less controversial than city funding; strongest support for a partnership approach Maintaining the Bus Barn site may mitigate opposition
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 33
34 Agenda Item 1.

The remaining 19% were spread throughout the South Bay
81% of responses came from Los Altos
94022
194
94023
1 94024
165
94025
3 94040
17 94043
12 94061
2 94062
1 94085
2 94087
2 94089
2 94301
1 94303
1 95008
3 95014
2 95050
1 95110
1 95112
1 95125
1 95126
1 95127
1 95129
1 95136
1 95148
1 Total responses = 445 Los Altos Theater Study – Final Report March 2023 | AMS Planning & Research Page 34
35 Agenda Item 1.

Majority attend events in Los Altos and elsewhere in the Bay, donate to local organizations 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Respondents
Dined in a restaurant in downtown Los Altos
Traveled to a city in the Bay Area other than Los Altos specifically to attend a performance/cultural event
Attended a special event in Los Altos (e.g., film/music festivals, food festivals, art fairs, etc.)
Attended a performance presented by the Los Altos
Stage Company
Donated to a local arts, cultural, and/or community
institution
Visited a historic site/museum in Los Altos
Visited an art museum/visual art exhibition in Los Altos Donated to a national arts, cultural, and/or community
Became a member of a local arts and/or cultural
institution
Donated to Los Altos Stage Company
Attended a performance in Los Altos in a venue other
than the Bus Barn Theater
Gone to the movies/film screenings in Los Altos
94%
83%
71%
53%
51%
46%
38%
33%
25%
24%
18%
13%
In the last 5 years respondents...
n = 440
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 35
36 Agenda Item 1.
50% agree a theater would be a reflection of Los Altos culture Community pride and arts education themes resonate most strongly n = 438 Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 36
10% 30% 50% 70% 90%
% of Respondents
Be a source of community pride
Provide local young people with arts education
beyond the classroom
Be an important reflection of the culture of Los
Altos
Bring different segments of the community
together
Provide a valuable mental and emotional outlet
to residents
20% 11%
26% 29%
17% 10%
22% 32%
22% 15%
19% 31%
22% 12%
22% 22%
23% 14%
20% 24%
A new theater would...

Strongly Agree
Agree
Disagree
Strongly Disagree
55% total agreement
10% 30% 50% 70% 90%
% of Respondents
Be a source of community pride
Provide local young people with arts education
beyond the classroom
Be an important reflection of the culture of Los
Altos
Bring different segments of the community
together
Provide a valuable mental and emotional outlet
to residents
20% 11%
26% 29%
17% 10%
22% 32%
22% 15%
19% 31%
22% 12%
22% 22%
23% 14%
20% 24%
A new theater would...

Strongly Agree
Agree
Disagree
Strongly Disagree
55% total agreement
37 Agenda Item 1.
49% agree it would improve quality of live in Los Altos Majority agree a new theater would promote economic development n = 441 Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 37
10% 30% 50% 70% 90%
% of Respondents
Draw visitors to the city
Help downtown shopping and dining thrive
Improve the quality of life for residents
Provide much-needed event space (for meetings, retreats, weddings, celebrations, community gatherings, etc.)
20% 15%
25% 28%
19% 15%
20% 31%
23% 16%
20% 29%
25% 16%
21% 25%
A new theater would...

Strongly Agree
Agree
Disagree
Strongly Disagree
53% total agreement
10% 30% 50% 70% 90%
% of Respondents
Draw visitors to the city
Help downtown shopping and dining thrive
Improve the quality of life for residents
Provide much-needed event space (for meetings, retreats, weddings, celebrations, community gatherings, etc.)
20% 15%
25% 28%
19% 15%
20% 31%
23% 16%
20% 29%
25% 16%
21% 25%
A new theater would...

Strongly Agree
Agree
Disagree
Strongly Disagree
53% total agreement
38 Agenda Item 1.

Significant interest in programming diverse event types More interest in classes for children than in family-oriented performances Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 38
0% 10% 20% 30% 40% 50% 60% 70% 80%
% of Respondents
Offer a diversity of performance and event types such as film, lectures, comedy, music, etc.

Be a reflection of the community it serves, making an effort to be inclusive of all races, ethnicities, abilities, genders and ages Program new plays and musicals from recent years
Provide classes and workshops for children and teens
Be a resource for local artists and arts organizations
Highlight local visual and performing artists
Offer a variety of performances catered to families
Provide classes and workshops for adults
Program works highlighting important social issues
10%
18%
14%
13%
13%
17%
27%
26%
29%
19%
19%
19%
30%
28%
28%
26%
30%
22%
10%
11%
12%
16%
12%
11%
16%
13%
13%
11%
14%
29%
17%
13%
8%
6%
9%
7%
9%
6%
9%
9%
7%
8%
Programming priorities Priority Rank
1 2
3 4-6
7-9
n = 304
39 Agenda Item 1.

More approve of using city land than city funds; 38 comments suggested keeping the Bus Barn site Partnership approach has majority support
n = 429
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 39
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
% of Respondents
It is important for a new theater to be developed as a partnership between the public, private, and not-for-profit sectors The city should provide land for a new downtown theater Only private donations from individuals, families, and
foundations should be used to support this project
The city should provide funds toward the construction of a new downtown theater
This community will financially support the development and ongoing operations of a new downtown theater
22% 10%
27% 25%
35% 7%
21% 23%
14% 24%
16% 28%
37% 10%
22% 18%
27% 14%
25% 12%
Level of agreement
Strongly Agree
Agree
Disagree
Strongly Disagree
52% total agreement
40 Agenda Item 1.

CURRENT
SNAPSHOT:

Stakeholders
17 interviewees
provided an honest
assessment
• People see the need to ‘upgrade’ the Bus Barn
• Downtown improvement is on everyone’s mind
• Parking, parking, parking!
• Housing, housing, housing!
• There are vocal and organized ‘nay sayers’
• The list of civic priorities for capital improvement is long and unfunded or underfunded
• A divided council is par for the course in Los Altos
• The donors are out there…will they show up for this
project?
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 40
41 Agenda Item 1.

Stakeholders on… The Building
• A building of ‘neighborhood scale’
• A community gathering place
• A place for young people & training
• A diversity of programming inclusive of
LASC, but not exclusively for them
• Connected & contributing to downtown
‘placemaking’ & vitality
• Multi-generational & inter-generational
programming
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 41
42 Agenda Item 1.

Stakeholders on… Location(s)
Where would you put it?
Downtown parking plaza
• “Feets on Streets”
• Controversial to remove or replace parking
spaces
• Housing priorities
Redevelop current site
• ‘Less’ controversial; same use on same site
• Consolidates civic, cultural, and
recreational assets
• Not physically downtown
Other parking plaza sites (or anywhere else)
• Only if an opportunity were to arise
• Possible, but not probable at this point
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 42
43 Agenda Item 1.

Stakeholders on… Support
• LASC is by and for the community of
Los Altos
• People give to LASC, but will they
give in larger amounts?
• LASC does not have a track record
with large gifts and campaigns
• Board is developing new members in
preparation for a campaign
• LASC’s longstanding work with young
people is noted as its best path to
major donors
− “Not everyone is a theater-lover…”
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 43
44 Agenda Item 1.

Comparable Theaters

EMERGING OPPORTUNITY
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 44
45 Agenda Item 1.

COMPARABLE

PROJECTS
Peer organizations
were analyzed for
their facility
characteristics,
programming and
utilization, operating
structure and
finances, markets
served, community
partnerships, and
other opportunities.

Lessons learned
informed the
development of the
preferred operating,
financial and facility
scenario. They also
aid in sharing the
vision to
stakeholders,
prospective donors,
and the community.

Appendix B contains
additional
information

FACILITY CHARACTERISTICS
180-500 seat mainstage theater
Rehearsal room, classrooms and other ancillary spaces
Ample lobby space

PROGRAMMING CHARACTERISTICS
Producing theater companies
Some rentals and presentations
Educational programs

OPERATIONAL CHARACTERISTICS
Preference toward non-profit owned and operated
Selection Criteria
See Appendix B for full Comparable Facilities report
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 45
46 Agenda Item 1.

Seven organizations help illustrate potential futures
Colligan
Theater at the
Tannery Arts
Center
Santa Cruz, CA
Alexandra C.
and John D.

Nichols Theatre
& The Gillian
Theatre
Glencoe, IL
Sutter Theatre
in the Sofia
Center for the
Arts
Sacramento, CA
The Steddy
Theater at
Center for the
Arts
Crested Butte,
CO
Raymond James
Theatre at St.

Petersburg
College, St.

Petersburg, FL
Lillie Theatre
Pittsburgh, PA
The CVA Flex
Theatre in
Silverthorne
Performing Arts
Center
Silverthorne, CO
Primary Theater
Capacity 182 seats 255 seats 386 seats 450 seats
(standing) 182 seats 254 seats 131 seats
Year Built 2015 2016 2018 2019 2009 1991 2017
Scale 10,000 sf 36,000 sf 40,000 sf 31,000 sf 10,000 sf (orig. facility) 27,800 sf 16,000 sf
Cost $5.8 million $34 million $30 million $19 million $4 million $2.8 million $9 million Owner Non-profit Non-profit Non-profit Non-profit College Non-profit Non-profit Operator Non-profit Non-profit Non-profit Non-profit Non-profit/ College Non-profit Non-profit
Budget FY2019 $1,480,552 $6,018225 $3,722,735 $2,116,977 $3,685,576 $3,448,220 $2,241,829 % Contribution 43% 49% 35% 52% 34% 70% 56%
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 46
47 Agenda Item 1.

Activity

PREFERRED SCENARIO
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 47
48 Agenda Item 1.

AN ACTIVE
VENUE:

By “Year 5” the
bustling new venue
will welcome daily
formal and informal
rehearsal, education,
production and
rental activity.

Day Date
CLASSES Mon 1-Dec MUSICAL-T
CLASSES RENTALS AND COMMUNITY Tue 2-Dec MUSICAL-T
CLASSES PLAY-R Wed 3-Dec MUSICAL-P
ND COMMUNITY CLASSES PLAY-R Thu 4-Dec MUSICAL-P RENTALS AND COMM ND COMMUNITY ACCESS PLAY-R Fri 5-Dec MUSICAL-P
ND COMMUNITY ACCESS PLAY-R Sat 6-Dec MUSICAL-P
ND COMMUNITY ACCESS PLAY-R Sun 7-Dec MUSICAL-P
CLASSES PLAY-R Mon 8-Dec
CLASSES PLAY-R Tue 9-Dec RENTALS AND COMMUNITY RENTALS AND COMM CLASSES PLAY-R Wed 10-Dec MUSICAL-P
ND COMMUNITY CLASSES PLAY-R Thu 11-Dec MUSICAL-P
ND COMMUNITY ACCESS PLAY-R Fri 12-Dec MUSICAL-P
ND COMMUNITY ACCESS PLAY-R Sat 13-Dec MUSICAL-P
ND COMMUNITY ACCESS PLAY-R Sun 14-Dec MUSICAL-P
AY-R CLASSES Mon 15-Dec
AY-R CLASSES Tue 16-Dec RENTALS AND COMMUNITY RENTALS AND COMM LAY-R CLASSES RENTALS AND COMMUNITY Wed 17-Dec MUSICAL-P AY-R CLASSES RENTALS AND COMMUNITY Thu 18-Dec MUSICAL-P LAY-R Fri 19-Dec MUSICAL-P
AY-R Sat 20-Dec MUSICAL-P
LAY-R Sun 21-Dec MUSICAL-P
LAY-R CLASSES Mon 22-Dec
AY-R CLASSES RENTALS AND COMMUNITY Tue 23-Dec RENTALS AND COMMUNITY RENTALS AND COMM AY-R CLASSES Wed 24-Dec MUSICAL-P
LAY-R CLASSES YOUTH-FAMILY-R Thu 25-Dec MUSICAL-P
LAY-R YOUTH-FAMILY-R Fri 26-Dec MUSICAL-P
AY-R YOUTH-FAMILY-R Sat 27-Dec MUSICAL-P
LAY-R YOUTH-FAMILY-R Sun 28-Dec MUSICAL-P
LAY-R CLASSES YOUTH-FAMILY-R Mon 29-Dec
LAY-R CLASSES YOUTH-FAMILY-R Tue 30-Dec RENTALS AND COMMUNITY ACCESS AY-R CLASSES YOUTH-FAMILY-R Wed 31-Dec MUSICAL-P
LAY-R CLASSES YOUTH-FAMILY-R Thu 1-Jan MUSICAL-P RENTALS AND COMM LAY T YOUTH-FAMILY-R Fri 2-Jan MUSICAL-P

FALL WINTER
EATER BOARD / SM. REH 2025-26 REH ROOM / CLASSROOM THEATER BOARD / SM. REH Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 48
49 Agenda Item 1.

ACTIVITY:

Overall
767 total annual uses
in the three primary
spaces
Model assumes:
• spaces will host
multiple uses a
day
• any touring acts
are brought in by
renters
• A modest level of
non - performance
rental activity
SCHEDULE 5: UTILIZATION SUMMARY
(days) Mainstage Theater Board Room/Small
Rehearsal
Rehearsal
Room/Classroom
TOTAL
Internal Use (Productions/Classes)
Performance 134 0 0 134
Rehearsal (Technical) 43 0 0 43
Rehearsal (Regular) 27 24 189 240
Classes/Workshops/Camps 40 128 29 197
Other 0 0 0 0
Subtotal, Internal Use 244 152 218 614
External Use (Rentals)
Performance - Commercial 12 0 0 12
Performance - Nonprofit 12 0 0 12
Setup or Rehearsal 0 0 24 24
Non-Performance/Event - Nonprofit 10 12 11 33
Non-Performance/Event - Commercial 10 6 14 30
Subtotal, External Use 44 18 49 111
Dark
Dark 14 14 14 42
Subtotal, External Use 14 14 14 42
TOTAL UTILIZATION 302 184 281 767
Los Altos Stage Company
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 49
50 Agenda Item 1.

ACTIVITY:

Overall
Most activity driven
by LASC (80%)
15% of all use is
Community Access
~20,500 in annual
attendance
• Approximately 25%
are youth and
family audiences
80%
15%
5%
Total Activity by USER TYPE
Internal Use
(productions/education)
External Use
(community access,
commercial rentals)
Dark
39%
37%
24%
Total Activity by SPACE
Mainstage Theater
Rehearsal
Room/Classroom
Board Room/Small
Rehearsal
40%
26%
21%
8%
5%
Total Activity by USE TYPE
Rehearsal
Classes/Workshops/Camps
Performance
Other (non-performance)
Dark

PUBLIC ATTENDANCE
Adult
Performances/Events 13,200
Youth-Family
Performances/Programs 4,380
Community Access
Performances/Events 2,880

TOTAL ANNUAL
ATTENDANCE: 20,460
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 50
51 Agenda Item 1.

ACTIVITY:

LASC
LASC - driven activity
translates to 614
annual uses facility -
wide
Education activity
occupies a large
portion of the
calendar
Introduction of
classes adds ~90
days to historical
LASC offerings
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 51
27%
27% 18%
15%
7%
6%
LASC Activity by Type
Camps
Classes
Play
Musical
Youth-Family
Workshops
PRODUCTIONS Play Musical Youth-Family
# of Productions 3 2 3
# Performances per Production 20 25 8
Projected Attendance per Production 2,400 3,000 960
Total Performances 60 50 24
Total Attendance 7,200 6,000 2,880
CAMPS/WORKSHOPS/CLASSES Youth Camps Workshops Classes
# of Days per Session 10 5 1
# of Camp Sessions 4
# of Workshop Sessions 4
# of Classes 88
Projected attendance per workshop/camp, session, or class 30 15 15 Total Days 40 20 88
Total Attendance 120 60 1,320
52 Agenda Item 1.

Building Program & Economics

PREFERRED SCENARIO
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 52
53 Agenda Item 1.

THE
BUILDING:

Facility
Program
23,373 Gross Square
Feet (GSF)
See Appendix D for full
Architectural Program
• Front of House (FOH) - Lobby, Concessions, Restrooms, Youth Lounge, Box Office, Storage
• Theatre - Proscenium Stage, Orchestra Pit, Trap Room, Stage Crossover • Back of House (BOH)
− Artist Support - Green Room, Dressing Rooms, Storage
− Technical Support - Production Office, Costume Room, Loading Dock − Shops & Storage - Scene Shop, Property/Costume and Supply Storage − Offices/Classrooms/Meeting Rooms
− 2 Rehearsal Rooms

KEY COMPONENTS
• Stage Rigging and Curtain Systems
• Performance Lighting Power/Control System
• Stage Lighting (LED) Instruments and Portable Equipment • Performance Audio Systems
• Assistive Listening System
• Live Room and Microphone System
• Production Communications System
• Wireless Microphones System
• Loose Equipment System
• Performance Video System
• Portable Conferencing System
• Fixed Seating - Theatre
• Loose Theatre Equipment
• Electrical for Theatrical Lighting

KEY EQUIPMENT
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 53
54 Agenda Item 1.

THE
BUILDING:

Facility
Program
Building footprint is
13,292 GSF • Downtown site can
accommodate
• Bus Barn site
requires adjacent
land
• Order of Magnitude
cost ~$1,000/ sq.sf.
• See Appendix D for
additional details
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 54
55 Agenda Item 1.

THE
BUILDING:

Facility Cost
The cost per square
foot estimate was
developed by first
surveying the square
foot cost of 17 newly
constructed theatres
in the San Francisco
Bay Area over the
last 24 years,
adjusted for
inflation.

Total Estimated Facility Project Cost:
$23,373,000
All 17:

Mean:
$814/sf
Median:
$745/sf
Adjusted to remove
all K-12 projects
Mean:
$953/sf
Median:
$830/sf
Los Altos Civic
Center
$1,398.59/sf
FINAL ASSUMPTION:
$1,000/SF
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 55
56 Agenda Item 1.

Operational Assumptions & Economic Impact

PREFERRED SCENARIO
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 56
57 Agenda Item 1.
• Forecast for
normalized year of
operations (Base
Year/Year 5)
• 2022 dollars
• No debt service
• “Presenter” model –
activity driven by
LASC Productions
with rentals
• See Appendix E for
full pro forma
Space Capacity
Mainstage Theater 160
Rehearsal Room/Classroom 65
Board Room/Small Rehearsal 15
Youth Program Classroom 35
Youth Lounge 40
Fringe Taxes and Benefits 25%
Expense Contingency 5%
Average Concession Transaction $2.80
Concession Capture Rate 70%
Nonprofit Rental Rate Discount 50%
Ticket Service Fee $6.00
Average % Capacity Sold for Performances 85%
Credit Card Fee Expense 2.5%
Credit Card Capture Rate 90%
Total Gross Square Footage 23,373
Mainstage Net Square Footage 6,744
Los Altos Stage Company
SCHEDULE 1: KEY ASSUMPTION S
Space Assumptions
Economic Assumptions
Building Assumptions
THE
OPERATION:

Key
Assumptions
See Appendix E for full Pro Forma financial model
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 57
58 Agenda Item 1.

LASC programming generates $706K in gross earned revenue.

Earned Revenue Forecast
79% OF EARNED REVENUE FROM LASC TICKET SALES
LASC Productions (play, musical, youth-family) $586,000 LASC Education and Community $120,000
Rentals $44,000
Chargebacks $9,000
Ancillary $134,000
TOTAL EARNED REVENUES $893,000
Los Altos Stage Company
SCHEDULE 3: REVEN UE SUMMARY

EARNED REVENUES
LASC
Productions
66%
LASC Education and
Community
13%
Ancillary
15%
Rentals
5% Chargebacks
1%
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 58
59 Agenda Item 1.

Program Expenses
LASC Productions (play, musical, youth-family) $620,000 LASC Education and Community $64,000
Subtotal, Program Expenses $684,000
Theater Operations Expenses
Theater Operations $32,000
Subtotal, Theater Operations Expenses $32,000
General & Administrative Expenses
Personnel $738,000
Overhead $70,000
Subtotal, General & Administrative Expenses $808,000
Occupancy Expenses
Fire and Security $18,000
Utilities and Maintenance $117,000
Taxes $2,000
Insurance $29,000
Subtotal, Occupancy Expenses $166,000
TOTAL OPERATING EX PENSES $1,690,000
Expense Contingency (5%) $84,500
TOTAL EX PENSES W ITH CONTINGENCY $1,774,500
Los Altos Stage Company
SCHEDULE 4: EXPEN SE SUMMARY
Expenses driven by
Programming and Personnel
Expense Forecast

EXPENSES
Personnel
42%
Program Expense
38%
Occupancy
9%
Contingency
5%
Overhead
4%
Theater
Operations
2%
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 59
60 Agenda Item 1.

Increase of 4.75 FTE to support expanded programs, marketing, fundraising, facility Staffing Forecast
8 FTE
SCHEDULE 10A:

STAFFIN G AN D COMPEN SATION FTE BASE
SALARY
% Taxes &
Benefits
Total
Compensation
Executive Artistic Director 1.00 $115,000 25% $144,000
Managing Director 1.00 $85,000 25% $106,000
Facilities and Operations Manager 1.00 $65,000 25% $81,000 Marketing Director 1.00 $75,000 25% $94,000
Development Director 1.00 $75,000 25% $94,000
Associate Artistic Director/Education Director 1.00 $65,000 25% $81,000 Production Manager 1.00 $55,000 25% $69,000
Box Office Manager 1.00 $55,000 25% $69,000
TOTAL STAFFING 8.00 $590,000 $738,000
Los Altos Stage Company
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 60
61 Agenda Item 1.

Financial Summary

BASE YEAR FORECAST
LASC will need to raise 50% of its income to meet its
$1.78M operating budget
% Contributed
50%
% Earned
50%
Earned Revenues Base Year
Productions and Programming $706,000
Rentals $44,000
Chargebacks $9,000
Ancillary $134,000
Subtotal, Earned Revenues $893,000
Contributed Revenues
Grants, Corp./Sponsorship, Individual, Special Events $882,000 TOTAL OPERATING REVENUES $1,775,000
Operating Expenses
Productions and Programming $684,000
Personnel $738,000
Theater Operations $32,000
Overhead $70,000
Occupancy $166,000
Subtotal, Operating Expenses $1,690,000
Expense Contingency (5%) $84,500
TOTAL OPERATING EX PENSES $1,774,500
TOTAL ANNUAL RESULT $500
Los Altos Stage Company
SCHEDULE 2: SUMMARY

BASE PRO FORMA
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 61
62 Agenda Item 1.

THE
OPERATION:

Incremental
Growth
Building toward year
5 of operations, or
the “base year,” LASC
will gradually
introduce expanded
educational
programming and
external rentals,
simultaneously
ramping - up the staff
required to program
and operate the new
facility to its fullest
capacity.

Earned Revenues Pre-Opening Year 1 Year 2 Year 3 Year 4 Base Year Productions and Programming $353,000 $494,200 $529,500 $564,800 $635,400 $706,000 Rentals $0 $30,800 $33,000 $35,200 $39,600 $44,000
Chargebacks $0 $6,300 $6,750 $7,200 $8,100 $9,000
Ancillary $0 $93,800 $100,500 $107,200 $120,600 $134,000 Subtotal, Earned Revenues $353,000 $625,100 $669,750 $714,400 $803,700 $893,000 Contributed Revenues
Grants, Corp./Sponsorship, Individual, Special Events $535,000 $617,400 $661,500 $705,600 $793,800 $882,000 TOTAL OPERATING REVENUES $888,000 $1,242,500 $1,331,250 $1,420,000 $1,597,500 $1,775,000 Operating Expenses
Productions and Programming $342,000 $478,800 $513,000 $547,200 $615,600 $684,000 Personnel $369,000 $516,600 $553,500 $590,400 $664,200 $738,000 Theater Operations $16,000 $22,400 $24,000 $25,600 $28,800 $32,000 Overhead $35,000 $49,000 $52,500 $56,000 $63,000 $70,000 Occupancy $83,000 $116,200 $124,500 $132,800 $149,400 $166,000 Subtotal, Operating Expenses $845,000 $1,183,000 $1,267,500 $1,352,000 $1,521,000 $1,690,000 Expense Contingency (5%) $42,000 $59,000 $63,000 $68,000 $76,000 $84,500 TOTAL OPERATING EX PENSES $887,000 $1,242,000 $1,330,500 $1,420,000 $1,597,000 $1,774,500 TOTAL ANNUAL RESULT $1,000 $500 $750 $0 $500 $500
% Contributed 60% 50% 50% 50% 50% 50%
% Earned 40% 50% 50% 50% 50% 50%
Los Altos Stage Company
SCHEDULE 2: SUMMARY

BASE PRO FORMA
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 62
63 Agenda Item 1.

Mapping It Out: LASC Growth
LASC will grow incrementally over years leading up to normalization of operations around Year 5

Page 63 ends

$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000

CONTRIBUTED REVENUE

EARNED REVENUE

OPERATING EXPENSES
64 Agenda Item 1.

THE
OPERATION:

Economic
Impact
The expanded
operation will
produce a positive
impact on the local
economy, generating
76 full - time jobs and
attendance - related
spending.

According to Americans for
the Arts, the national
audience spending
average, above the cost of
the ticket, is $31.47.

Source: https://www.americansforthearts.org/by-program/reportsand-data/research-studies-publications/arts-economic-prosperity-5 Los Altos Theater Study – Final Report March 2023 | AMS Planning & Research Page 64
65 Agenda Item 1.

RECOMMENDATIONS
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 65
66 Agenda Item 1.

MOVING
FORWARD…
There is no doubt a
new facility would
allow LASC to deepen
their commitment to
community and
artistic excellence. It
would help nourish
the economy and
create a sense of
place.

So where do we go
from here?
City to Determine Preferred Site & Development
Approach
 Support City staff to determine if a stand-alone or mixed-use development approach is most feasible
Cultivate Project Partnerships
 Developers
 City
Conduct a Fundraising Feasibility Study
 To understand the environment in which a capital campaign will occur.
 To develop an achievable capital campaign strategy
Engage in Board Development
 To establish readiness for a capital campaign and
organizational evolution
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 66
67 Agenda Item 1.

APPENDICES
Los Altos Theater Study – Final Report
March 2023 | AMS Planning & Research Page 67
68 Agenda Item 1.

Phase 1 Interim Presentation
Full presentation as delivered August 2022; includes market and patron file analysis findings (Some data and findings repeated in report body)

APPENDIX A
69 Agenda Item 1.

Comparable Facilities Report

APPENDIX B
70 Agenda Item 1.

Aggregate Survey Results

APPENDIX C
71 Agenda Item 1.

Architectural Program & Supporting Documents

APPENDIX D
72 Agenda Item 1.

Financial Pro Forma

APPENDIX E
73 Agenda Item 1.

Scope of Work

APPENDIX F
74 Agenda Item 1.

Page 1 ends

Background - LASC & City MOU
In 2021, LASC and the City signed a three-year non-binding Memorandum of Understanding regarding potential
development of Downtown Parking Plaza No. 2.

The key points are excerpted here:

Page 2 ends

76 Agenda Item 1.

Progress-Momentum-Next Steps
Capital Campaign Analysis
State-of-the-Art Downtown
Theater
Multi-purpose
Neighborhood Playhouse
77 Agenda Item 1.

Outcomes- Findings-Forecasts
160-seat downtown theater
Estimated $23 M construction cost
Funds for construction raised as a
public-private partnership
Opening operating budget of $1M
Theater donated to the City and
managed by Los Altos Stage
78 Agenda Item 1.

Pillar One:

Intergenerational,
multi-cultural, &
multidisciplinary
arts programs
5 79
Agenda Item 1.

Pillar Two:

Youth education,
engagement
& empowerment

Page 6 ends

80 Agenda Item 1.

Pillar Three:

Community
access
opportunities

Page 7 ends

81 Agenda Item 1.

Los Altos Theater Study
Key Findings and Recommendations
82 Agenda Item 1.

Scope of Work
Six key questions guided this work:

1. What are the community’s priorities, needs and opportunities for a new theater building?

2. What are the community’s programmatic interests and attendance patterns and preferences?

3. What are the local and regional market conditions and competitive landscape for the development of a new theater?

4. What is the best balance of activity to both broaden and deepen LASC offerings and provide space for community use?

5. What is the appropriate facility configuration for the most relevant LASC, community and regional performing arts needs?

6. What are the best operating structure and policies? How are they manifested financially?
Study the potential development of a replacement facility for LASC 83 Agenda Item 1.

Feasibility & Vision
Phase 1
Assessing Feasibility
• Supply, Demand, and Aspiration
Phase 2
Setting Definition
• Operating Model, Building
Program, Financial Forecast
Scope of Work
84 Agenda Item 1.

Solid growth over five years pre -covid with revenues meeting expenses Stage Company on Firm Foundation

Page 11 ends

60%
growth in revenue in
years leading up to 2020
(pre COVID)
53%
growth in attendance in
years leading up to 2020
(pre COVID)
Bus Barn facility has
significant limitations &
constrains company
growth
85 Agenda Item 1.

The market for arts consumption is strong
Market Assessment: Strong Potential for Growth

Page 12 ends

53%
of patron households have
children living at home –
indicating strong potential
for youth and multigenerational programming
40%
of households in the
primary market have
incomes over $200k – the
highest concentration in
California
55%
of the market’s population
is under age 40 –
representing strong future
growth potential for arts
patronage
86 Agenda Item 1.
…a space by & for the Los Altos community
Community Survey Shows Support

Page 13 ends

Survey gleaned
response from
over 445 area
residents
There is high interest
in diverse content
including programs for
young people, film,
lectures, theater, &
live music
Stakeholders envision
a multi- and intergenerational gathering
place that contributes
to downtown vitality
87 Agenda Item 1.

Activity Drives Attendance
A Bustling, Year-round Venue
Annual attendance of 20,500 from
over 725 activities annually,
including:
• Community events
• Concerts, lectures, film, comedy,
& family performances
• Rental uses
• LASC & LAYT performances
• Classes & camps for young people
• Rehearsals

Page 14 ends

Rehearsal,
307
Classes/Workshops/Camps,
197
Performance, 158
Other (nonperformance), 63
88 Agenda Item 1.

A New Theater for the Community
• 23,400 square feet
• 13,000 sq. ft.
minimum site
footprint required
• Order of
magnitude cost =
$1,000/sq. ft.
• City-owned, LASCoperated

Page 15 ends

Back of house 160-seat theater
support spaces Lobby, patio, &
community
gathering spaces
Dedicated youth lounge, rehearsal & teaching
spaces, offices, storage
89 Agenda Item 1.

Seven organizations help illustrate potential futures
Colligan
Theater at the
Tannery Arts
Center
Santa Cruz, CA
Alexandra C.
and John D.

Petersburg
College, St.

Comparables
Economic Data Sourced Directly from LASC and 7 comparable theaters

Page 17 ends

43%
49%
35%
52%
34%
70%
56%
48%
56%
48%
54%
44%
46%
25%
42%
45%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6 7 Average of 7
Comps
Earned / Contributed Revenue Analysis
Contributed
Revenue
Earned
Revenue
91 Agenda Item 1.

Mapping It Out: LASC Growth
LASC will grow incrementally over years leading up to normalization of operations around Year 5. LASC assumes all building operations & maintenance costs.

Page 18 ends

$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000

CONTRIBUTED REVENUE

EARNED REVENUE

OPERATING EXPENSES
92 Agenda Item 1.

To summarize…

Page 19 ends

 Stage Company on Firm
Foundation
• Company poised for growth post-COVID
• Current facility is constraint, not opportunity
 Market Assessment: Strong
Potential for Growth
• Primary market is strong for arts consumption
• Family & younger adult households indicate
opportunity for future growth
 Community Survey Shows
Support
• Majority support a new theater for Los Altos
• Strong interest in ‘community focused gathering
place’ with diversity of content
A Bustling, Year-round Venue
• Over 20,000 visits/year to downtown
• Over 700 activities mapped
• LASC productions, rehearsals, classes
• Community events, performances, & gatherings
A New Theater for the Community
• 160-seat downtown venue
• City-owned/LASC operated
• Fits on parking plaza site, not at Bus Barn
• Supports Downtown Vision objectives
Growth & Economic Impact
• New building = more growth for LASC
• Growth of sales, classes, + rentals
• Contributed revenue must grow
• Positive economic impact downtown 93
Agenda Item 1.

MOVING FORWARD…
Where do we go from here?

1. City to Determine Preferred
Site & Development
Approach • Support City staff to determine if a stand
-
alone or mixed-use development
approach is most feasible

2. Conduct a Capital
Fundraising Analysis • To understand the environment in which a capital campaign would occur
• To develop an achievable capital
campaign strategy
94 Agenda Item 1.

PUBLIC CORRESPONDENCE

The following is public correspondence received by the City Clerk’s Office after the posting of the original agenda. Individual contact information has been redacted for privacy. This may not be a comprehensive collection of the public correspondence, but staff makes its best effort to include all correspondence received to date.

To send correspondence to the City Council, on matters listed on the agenda please email [email protected]
95 Agenda Item 1.

From: Roberta Phillips
To: Public Comment; City Council
Subject: Study Session May 9,2023 Theater
Date: Monday, May 8, 2023 12:10:57 PM
Dear Council Members

1. The Study Session report does not show that a new theater in Downtown would be Financially feasible.

Just yesterday I saw the Children's Theater in Berkeley Ca, is closing due to lack of funds.

Funding Shortfall Forces Bay Area
Children's Theatre To Suspend
Season
dowhttps://patch.com/california/berkeley/funding-shortfall-forces-bay-area-childrens-theatresuspend-seasonn

2. Housing is a higher priority . Our parking lots should be used for affordable housing

3. The loss of parking will result in the City asking the residents to build a parking garage or other parking facilities at a cost to residents.A survey done by LAR shows clearly that the community does not want to pay for a private theater regardless of their non-profit status.

4. There is no value shown for the cost of land nor how much the Los Altos Stage Company will pay to lease this very valuable asset worth millions of dollars.

5. The goal of the Downtown Vision Plan was to put more feet on the street.

That is being accomplished by the plan to build more housing downtown.

The Los Altos State Company has to be self-sufficient. There is no proof that is feasible.

6. The Bus Barn theater can stay where it is currently located and the Stage Company can raise donations to remodel.There is plenty of parking available.

The City has set it's priorities and a new theater downtown is not one of the priorities. We have many CIP projects in line ahead of a theater.

Sincerely
Roberta Phillips
650-941-6940
96 Agenda Item 1.

From: Los Altos Residents
To: Public Comment
Cc: Gabriel Engeland
Subject: [External Sender]Study Session May 9, 2023 - Theater Date: Monday, May 8, 2023 8:34:00 AM
Attachments: image001.png
Screen Shot 2023-05-06 at 9.06.06 PM 2.png
Dear Mayor Meadows, Vice Mayor Weinberg, and Council Members Lee Eng, Fligor, and Dailey,
In November, 2021 Los Altos Residents (LAR) conducted a survey asking residents of Los Altos questions about their support for a new theater downtown and whether they were in favor of paying for its construction and/or operations and maintenance.

Here is an executive summary of what those Los Altans that responded to the LAR survey thought. We also attach the complete data including the survey questions so you can judge for yourself if they were biased or not.

At the Study Session on May 9, 2023, AMS will report on the results of a survey it conducted for the Theater Working Group asking similar questions. AMS got 445 responses to its survey. However, only 81% of the responses AMS got were from Los Altans. So to compare the two surveys fairly, the LAR survey received 444 responses from Los Altans while the AMS survey only received 360 responses from Los Altans. LAR got input from 84 more Los Altans than AMS! However here’s the interesting thing: the respondents from the Theater Working Group/AMS survey AGREE with the LAR survey respondents on some very important points!!
Of the Theater Gp/AMS respondents:
- the majority (44%) agree that only private donations should be used to support a new theater (versus 38% that disagreed)
- the majority (47%) do NOT want the city to provide funds towards the construction of a new theater (versus 40% that do)
- the majority (41%) do NOT want the city to financially support the 97 Agenda Item 1.
development and ongoing operations of a new theater (versus 37% that do)
These responses from both the LAR survey and from the AMS survey should be enough to convince you that your constituents do not want you to vote to spend any of their tax dollars for a new downtown theater.

We understand that you place great weight on the Downtown Vision Plan as justification for building a theater downtown. However the Downtown Vision Plan was adopted by a former Council in August 2018 - almost 5 years ago. And the surveys and community engagement that form the basis of the Downtown Vision Plan were all conducted in the first half of 2017 - six years ago. (see the date in the lower right hand side)
A great deal has transpired since July 2017. We had a pandemic that resulted in a huge loss of jobs, and a change in the way people work - many people continue to work remotely at least 2 days per week if not all 5 days. Stores have closed and continue to close downtown - Oz Boutique, Runners High, Cook’s Junction, Cover Story, to name a few recent closures. Restaurants now occupy much of our street parking spaces on Main and State Streets. California has lost and continues to lose population and the tech sector has been laying off thousands of people in the Bay Area which will likely lead to even more loss of population. More has seemingly changed than not changed since the 2017 surveys that form the basis of the Downtown Vision Plan were taken. Are these survey results/community engagement takeaways still valid? Who can accurately answer that question? Do you have complete confidence the conclusions from the consultant are still correct? We have several other questions we think need to be addressed:

1. Why was notice of this May 9, 2023 Study Session not sent out to people on the email list for City Council meetings or mentioned in the City Manager Weekly Update? Notice of the May 9, 2023 Regular City Council meeting was sent out to this email list. It is the practice of City Staff to send out notices of Study Sessions to everyone on this email list - why was this Study Session excluded? It could be interpreted to look like an attempt to keep this Study Session “under the radar” hoping that it wouldn’t come to the attention of interested parties such as LAR.

2. Would Council consider allowing the Theater Working Group to pay for and build a new theater where the Bus Barn Theater is currently located including allowing a larger footprint to accommodate the planned new theater, thus keeping the theater on the Civic Center Campus where it can take advantage of the parking afforded by the new Community Center?

3. Will the Council direct staff to conduct a survey and find out how many of your 98 Agenda Item 1.
constituents want to get rid of the parking spaces on Parking Plaza 2 - the parking plaza behind the Main Street Post Office, Chico's, the Discovery Shop, and the Rustic House - in order to build a theater?

4. Will we need to build required RHNA housing on that city-owned Parking Plaza?

5. Could we build a park for all the residents of the new condos downtown on that Parking Plaza?

6. Which of these options, park or theater, would benefit the most citizens and taxpayers of Los Altos?

7. What does funding the theater with “public/private” funds mean?

8. And exactly how much public funding are you willing to commit to?

9. Why are you even considering funding a new theater when the City apparently can't afford a desperately needed new police building?
These are just some of the questions we think you should address before any action is taken on a new downtown theater including funding any more new surveys on whether the Los Altos Stage Company can successfully raise the money to build a theater with "public/private” or even with only private funds. If they can’t raise enough money to fund a survey, it would appear unlikely they could raise the tens of millions needed to build a new theater.

While we believe that most of you favor a new downtown theater, both surveys show that the majority of Los Altans do not want you to vote to pay any of our tax dollars towards the construction, development or operations of a new theater. Moreover, we believe the majority of Los Altans would prefer their tax dollars be used instead on resolving our budget deficit and, for example, funding all the deferred maintenance that has left most of the city-owned buildings in sad shape (police building, City Hall, Los Altos Youth Center, Grant Park Community Buildings/Senior Center to name a few). We believe they would prefer that you spend our tax dollars to bring our two fire stations into compliance. We understand our police force needs to hire nine (9) police officers to be fully staffed and we believe that public safety and crime prevention is at the top of most of your constituents expectations from its City government We also believe we need to hire staff for City departments because we understand that many of the department are significantly understaffed.

It seems to Los Altos Residents that these items are all “must haves” and that a new theater is a “nice to have” but is not required especially when a theater already exists and has been successfully putting on productions.

We would urge you to listen to the viewpoint of all of your constituents - including those who responded to the LAR survey AND those who responded to the Theater Group/AMS survey. Again, the majority of all respondents from both surveys do NOT want the City to fund the construction, development or the ongoing operations of a new theater.

We hope you will take our concerns into consideration when you take up a new theater for discussion at the May 9, 2023 Study Session. 99 Agenda Item 1.

Sincerely,
Freddie Wheeler
Co-founder, Steering Committee
Los Altos Residents
www.LosAltosResidents.org
100
Agenda Item 1.

November 1, 2021
Survey of Residents of Los Altos
Regarding Downtown Theater
101
Agenda Item 1.

Executive Summary
2 444 Los Altos residents responded
43% would like a theater downtown; 39% would not
52% do not want a theater to replace a parking plaza
51% do not want city to contribute to construction
53% do not want city to contribute to operations & maintenance 50% want to vote on whether city land is used for a theater 53% want to vote on whether city contributes to construction 53% want to vote on whether city contributes to operations & maintenance 102
Agenda Item 1.

Objective & Methodology
3 Objective
Gather resident opinions to present to Council for consideration during discussion of downtown theatre proposal
Methodology
Survey link posted on Nextdoor, emailed to approximately1500 fellow residents Duration
Two weeks
103
Agenda Item 1.

Survey email from Los Altos Residents
4 C A L L TO AC T I O N :

P L E A S E TA K E T H I S D OW N TOW N THEATER SURVEY
The purpose of this anonymous survey is to solicit your thoughts about a live performance theater in downtown Los Altos. As you may have read in the Town Crier, a New Theater Working Group has been formed and will soon seek approval from the City Council to build the theater on one of the downtown parking plazas.

The aggregated data from this survey will be provided to the City Council when this topic is scheduled to go before them.

We welcome your thoughts and opinions.To make your voice heard, please click on this link.

THANK YOU!
104
Agenda Item 1.

Aggregated data for respondents who identified as residents Resident Responses
105
Agenda Item 1.

Demographics
6 Q2: How long have you lived in Los Altos? Q4: My age group is:

Q3: My zip code is?
106
Agenda Item 1.

Q5: I visit downtown Los Altos
7 107
Agenda Item 1.

Q6: Please rate the following in terms of where the
city should spend city funds and resources:
8 108
Agenda Item 1.

Q6: Tallying priorities 1, 2, 3 tells us residents want to spend money on
9 #1 Parks 59%
#2 New police building 52%
#3 Housing 49%
#4 Grant Park 44%
#5 Theater 43%
#6 Library 39%
Other* 39%
#7 Halsey House 23%
* Includes 152 random comments, e.g., pool, parks, more parking. See attachment. 109
Agenda Item 1.

Q7: Please rate the following in terms of land use
in downtown Los Altos:
10 110
Agenda Item 1.

Q7: Tallying priorities 1, 2, 3 tells us residents
prioritize land use as follows:
11 #1 More parklets 84%
#2 Housing 64%
#3 More parking 61%
#4 Theater 56%
#5 Other* 55%
* Includes 112 random comments, e.g., pool, dog parks, more parking. See attachment. 111
Agenda Item 1.

Q8: Pre-COVID, I attended live performances at Bus
Barn Theater
ive performances at Bus Barn Theater.
12 112
Agenda Item 1.

Q9. Pre-COVID, I attended live performances at live
theaters such as Mt. View Center, Oshman JCC,
Hillbarn, Lucie Stern, etc.
13 113
Agenda Item 1.

Q10: I would attend live performances at a theater in
downtown Los Altos.
14 114
Agenda Item 1.

Q11: I would like to have a live performance theater
downtown.
15 115
Agenda Item 1.

Q12: I want the city to allow a theater to replace a
downtown parking plaza (for example, Plaza #2
behind the Main Street Post Office).
16 116
Agenda Item 1.

Q13: I want the city to provide funding from the city
budget toward the cost of construction of a
downtown theater.
17 117
Agenda Item 1.

Q14: I want the city to provide funding from the city
budget toward the ongoing maintenance and
operating expenses of a downtown theater.
18 118
Agenda Item 1.

Q15: I want to vote in a citywide election on whether to use city-owned land (for example, Parking Plaza #2
behind the Main Street Post Office) for a theater.
19 119
Agenda Item 1.

Q16: I want to vote in a citywide election on whether the city should provide any funding from the city budget
toward the cost of construction of a downtown theater.
20 120
Agenda Item 1.

Q17: I want to vote in a citywide election on whether to provide any funding from the city budget for the ongoing maintenance and operating expenses of a downtown
theater.
21 121
Agenda Item 1.

PUBLIC CORRESPONDENCE

To send correspondence to the City Council, on matters listed on the agenda please email [email protected]
122
Agenda Item 1.

May 9, 2023
Mayor Meadows and the Los Altos City Council
Los Altos City Hall
1 North San Antonio Road
Los Altos, CA 94022
Subject: SUPPORT FOR NEW DOWNTOWN PERFORMING ARTS THEATER I support the findings of the recent “Los Altos Theater Study” and the 2018 “Los Altos Downtown Vision Plan” as it relates to a new Downtown live theater. A Downtown theater would support the Downtown economic viability. It is supported by the merchants, Los Altos Village AssociaXon (LAVA), the property owners, Los Altos Property Owners Downtown (LAPOD), and many in Los Altos and the surrounding community.

The Theater Study found, “there is both need and opportunity for replacement of the exisXng Bus Barn Theater” with a larger theater. The consistent, steady and measured growth of the Los Altos Stage Company indicates solid management, oversight, and programming that is appreciated by the community. The market for a larger live theater is extremely strong in our Los Altos community.

Similar to the Downtown Vision Study, this new Theater Study, said “a majority currently felt that advantages of developing a new theater would be to enhance downtown Los Altos as a hub of economic and cultural acXvity, and to bring the community a sense of pride – pride of place.” Of course, there will always be naysayers, who lead with fear and negaXve fantasies. They opposed the Community Center, and yet it is now a beauXful, funcXonal asset to the City, loved by the Community. There are those afraid of live theater, and the mulXple points of view and entertainment that it offers. Fortunately, the success of live theater does not rely upon those who wish to silence it. Yet the theater provides freedom of thought and speech, educaXon, economic vitality, community gathering, and entertainment for the enXre community.

A new Downtown Theater would be a wonderful resource, serving the Downtown, and Los Altos, and doing it beaer. All indicators show the economy of scale of a new theater would not only be embraced by the Community, it will also support the Downtown, and fit in well with neighboring businesses, offices and residenXal areas.

Imagine shopping Downtown, dining, and aaending the theater all in one place. And imagine how wonderful the Stage Company can serve the Community with a proper theater building. I encourage you to conXnue your leadership to support the process of moving toward the Downtown Vision Plan and a new Downtown live theater.

Respeccully,
Mark Rogge
123
Agenda Item 1.

From: Frank Martin
To: Public Comment
Subject: Public Comment, Study Session, May 9, 2023"
Date: Monday, May 8, 2023 2:18:31 PM
Dear council members,
I strongly oppose using any of my tax dollars for a downtown theatre. Some of my friends are wondering whether the huge sewer tax fee [tax] increase you are considering is just another way to free up general funds for this purpose instead of using general funds to reduce or eliminate the sewer tax increase. Maybe this is true or maybe it is not.

The theatre is a money losing enterprise that cannot survive without about 50% ongoing donations or subsidies.

It benefits only a tiny number of kids and families in contrast to our community center or library. Some`people say it is another special interest grab on city land like a Bocce Ball court at Grant Park but I am not sure.

Moreover our city government does not belong in the theatre business.

If you want to give away a city parking lot or any city property or provide any city funds for any reason such as a downtown theatre for your interests this should be decided by an election ballot.

Moreover, having such short public notice of this special meeting is hardly a good idea if you believe in transparency and good governance.

Frank Martin
124
Agenda Item 1.

From: Pat Marriot
To: Public Comment
Subject: PUBLIC COMMENT THEATER STUDY SESSION MAY 9, 2023 Date: Monday, May 8, 2023 2:43:18 PM
Council Members:
“As trustees of the city, elected officials and city managers have special and serious obligations to safeguard the fiscal assets of the public.” League of California Cities With that fiscal responsibility in mind, your job is to determine whether a new theater is economically feasible for the city and its residents.

I.LASC PRESENTATION
The feasibility study presented is based on “likely project costs” ($23.4M), “likely utilization” (annual attendance of 20,500 from over 725 activities), and a “likely forecast” (expenses covered by earned revenue + equal contributions).

Demographic market data is no guarantee that wealthy people would contribute to or patronize a Los Altos theater over other charitable or entertainment options.

The quoted survey of “445 respondents who self-selected to participate” was distributed by LASC with instructions to “pass the link along to others.” Thus, it’s not scientifically valid and its conclusions should be ignored. In any case, it only asked if people would like a theater, not their willingness to pay for it
LASC has said it wants to give the theater to the city and lease it back. Bearing in mind your legal obligation to “safeguard the fiscal assets of the public,” § Is it fiscally responsible to accept a “gift” that would drain our budget with added staff and building maintenance for a private interest group?
§ Is it fiscally responsible to take on major expenses at a time of rampant inflation, with a $120M county budget deficit, a $30B state budget deficit, while burdening residents with an exorbitant sewer fee increase, while the city can’t maintain existing assets (public safety building, Grant Park senior center, Halsey House among others)? II.THE MISSING PRESENTATION: OTHER OPTIONS
LASC’s goal is to “increase the vibrancy of Los Altos’ downtown business district,” using the 2017 Downtown Vision to support its cause.

Its feasibility study does not indicate how increased vibrancy would be measured, but the 125
Agenda Item 1.
2017 economic study estimated a 190-seat theater – with parking – would generate an additional $1M in downtown sales, increasing restaurant sales by 2.7% and other downtown retail sales by a mere 0.7%. Very small percentages.

That economic study gave three other options for increasing downtown sales by $1M: 64 apartments or 48 luxury condos or 113 hotel rooms or offices– all of which would be paid for, owned and maintained by private entities, costing the city nothing, but bringing in property and/or hotel tax.

Property tax is the city's largest source of revenue, 9x - 10x sales tax, so why would we opt for a theater as the best way to increase vibrancy/income?
Our Housing Element Update commits us to housing on downtown parking plazas, far more essential than a theater, especially considering the state’s housing strike force and builders remedy to contend with if we don’t meet our housing mandates.

A downtown theater would require parking to replace what would be lost by a 13,000 sf building and to provide parking for theater patrons. Palo Alto recently built a new aboveground parking garage with 627 spaces for a cost of $67,838,798 ~ $108,000/space. 126
Agenda Item 1.

Bearing in mind your legal obligation to “safeguard the fiscal assets of the public,” § Is it fiscally responsible to use scarce city resources – time, staff, funds – for a theater that offers minimal, if any, ROI and does not have broad support among your constituents?
§ Is it fiscally responsible to choose the “vibrancy” option that provides the least revenue to the city?
§ Is it fiscally responsible to assume responsibility for building a multi-million parking garage downtown?
I urge you to consider your responses carefully because there’s a lot of money and a lot of credibility at stake.

Respectfully,
Pat Marriott
127
Agenda Item 1.

From: Penny Lave
To: Public Comment
Subject: Downtown Theater
Date: Monday, May 8, 2023 2:46:16 PM
The Los Altos community deserves the opportunity to explore the feasibility of a downtown theater. We support the City cooperating with the group of residents currently investigating such a project. There is precedent. Our excellent History Museum is a shining example of what dedicated residents can accomplish. Let’s find out if it is possible!
Penny and Roy Lave
Sent from my iPad
128
Agenda Item 1.

From: Couture, Terri
To: Public Comment
Subject: FW: PUBLIC COMMENT THEATER STUDY SESSION MAY 9, 2023 Date: Monday, May 8, 2023 3:11:42 PM
Dear City Council
Regarding the theatre proposal, our City Council should safeguard our finances for the core operations to keep our city safe and viable.

The city is in dire need of many capital improvements and repairs, we also have financial obligations that must be paid, and MUST take priority over entertainment.

Page 6 ends

economic downturn. Governor Newsom’s proposed 2023-2024 budget projects an even deeper decline than 2022.

The overall inflation rate this year was 7.27% and the CPI increase yearly was 5.3%. The economy is shrinking, mortgage rates have tripled, businesses are not projecting revenue increases & are firing workers.

Many newly local residents are fearful of losing their jobs and at least 3 businesses have recently left Los Altos, as they are going out of business.

The study further states that it analyzed 15 local zip codes of which there are already more than 10 community theatres. In a shrinking economy there should be more focus on maintaining the city services, necessary facilities and personnel.

The study does not show how the theater will help the children of the community even though it states that as a attribute. The study doesn’t show how it will reach and improve the lives of those in affordable housing or on limited incomes.

Where is the concrete financial analysis for the theatre? Our City Council should safeguard our finances for the core operations to keep our city safe and viable. Do not consider this proposal at this time.

Thank you
Terri Couture
*Wire Fraud is Real*. Before wiring any money, call the intended recipient at a number you know is valid to confirm the instructions. Additionally, please note that the sender does not have authority to bind a party to a real estate contract via written or verbal communication. 129
Agenda Item 1.

From: Pat Marriot
To: Public Comment
Subject: ** SECOND ** PUBLIC COMMENT THEATER STUDY SESSION MAY 9, 2023 Date: Monday, May 8, 2023 3:12:47 PM
Council Members:

I wrote to you on Saturday, May 6, saying I had not received email notification of this study session. I have since learned that eight other residents who follow Council and commission agendas did not receive an email.

Bruce Barton, editor of the Town Crier, which publishes information about city meetings, was unaware of the session.

I did receive email notifications for the May 9 council meeting, May 8 environmental commission, May 10 parks and rec meeting.

The first email notice of this theater study session arrived in my mailbox at 9:13 this morning.

I don’t know why this study session is the only city meeting for which I’ve not received an email notice. It’s unfortunate that most residents who rely on email were not unaware of this session – dealing with an important and contentious issue -- until this morning.

Pat Marriott
130
Agenda Item 1.

From: Bill Hough
To: City Council
Cc: Public Comment
Subject: Public Comment, Study Session, May 9, 2023
Date: Monday, May 8, 2023 4:34:20 PM
I continue to oppose the expenditure of public funds on a downtown theater, especially at the same time the city wants to double the sewer tax. I have an idea: why not cancel the theater and use the funds to pay for higher sewer costs?
Two groups, Los Altos Residents (LAR) and the Theater Working Group/AMS conducted surveys on this issue.

Respondents from both surveys agree:
- the majority (44%) agree that only private donations should be used to support a new theater (versus 38% that disagreed)
- the majority (47%) do NOT want the city to provide funds towards the construction of a new theater (versus 40% that do)
- the majority (41%) do NOT want the city to financially support the development and ongoing operations of a new theater (versus 37% that do)
These responses from both the LAR survey and from the AMS survey should be enough to convince you that your constituents do not want you to vote to spend any of their tax dollars for a new downtown theater. Let's let this bad idea die.
131
Agenda Item 1.

From: Reena Kapoor
To: Public Comment
Subject: [External Sender]Public Comment, Study Session, May 9, 2023 Date: Monday, May 8, 2023 6:31:32 PM
Dear Mayor Meadows, Vice Mayor Weinberg, and Council Members Lee Eng, Fligor, and Dailey--
In November, 2021 Los Altos Residents (LAR) conducted a survey asking residents of Los Altos questions about their support for a new theater downtown and whether they were in favor of paying for its construction and/or operations and maintenance.

We also asked questions about whether they wanted a theater to replace a parking plaza and whether they wanted to be able to vote on all these expenditures and give aways of city land. We got 444 responses to our survey.Here is an executive summary of what those Los Altans that responded to the LAR survey thought. We also attach the complete data including the survey questions so you can judge for yourself if they were biased or not.

At the Study Session on May 9, 2023, AMS will report on the results of a survey it conducted for the Theater Working Group asking similar questions. AMS got 445 responses to its survey. However, only 81% of the responses AMS got were from Los Altans. So to compare the two surveys fairly, the LAR survey received444 responses from Los Altans while the AMS survey only received 360 responses from Los Altans. LAR got input from 84 more Los Altans than AMS! However here’s the interesting thing: the respondents from the Theater Working Group/AMS survey AGREE with the LAR survey respondents on some very important points!!
Of the Theater Gp/AMS respondents:
- the majority (44%) agree that only private donations should be used to support a new theater (versus 38% that disagreed)
132
Agenda Item 1.
- the majority (47%) do NOT want the city to provide funds towards the construction of a new theater (versus 40% that do)
- the majority (41%) do NOT want the city to financially support the development and ongoing operations of a new theater (versus 37% that do) These responses from both the LAR survey and from the AMS survey should be enough to convince you that your constituents do not want you to vote to spend any of their tax dollars for a new downtown theater.

We understand that you place great weight on the Downtown Vision Plan as justification for building a theater downtown. However the Downtown Vision Plan was adopted by a former Council in August 2018 - almost 5 years ago. And the surveys and community engagement that form the basis of the Downtown Vision Plan were all conducted in the first half of 2017 - six years ago.
(see July 13, 2017 date - left side of page)
A great deal has transpired since July 2017. We had a pandemic that resulted in a huge loss of jobs, and a change in the way people work - many people continue to work remotely at least 2 days per week if not all 5 days. Stores have closed and continue to close downtown - Oz Boutique, Runners High, Cook’s Junction, Cover Story, to name a few recent closures. Restaurants now occupy much of our street parking spaces on Main and State Streets. California has lost and continues to lose population and the tech sector has been laying off thousands of people in the Bay Area which will likely lead to even more loss of population. More has seemingly changed than not changed since the 2017 surveys that form the basis of the Downtown Vision Plan were taken. Are these survey results/community engagement takeaways still valid? Who can accurately answer that question? Do you have complete confidence the conclusions from the consultant are still correct? We have several other questions we think need to be addressed:

1. Why was notice of this May 9, 2023 Study Session not sent out to people on the email list for City Council meetings or mentioned in the City Manager Weekly Update? Notice of the May 9, 2023 Regular City Council meeting was sent out to this 133
Agenda Item 1.
email list. It is the practice of City Staff to send out notices of Study Sessions to everyone on this email list - why was this Study Session excluded? It could be interpreted to look like an attempt to keep this Study Session “under the radar” hoping that it wouldn’t come to the attention of interested parties such as LAR.

3. Will the Council direct staff to conduct a survey and find out how many of your constituents want to get rid of the parking spaces on Parking Plaza 2 - the parking plaza behind the Main Street Post Office, Chico's, the Discovery Shop, and the Rustic House - in order to build a theater?

4. Will we need to build required RHNA housing on that city-owned Parking Plaza?

5. Could we build a park for all the residents of the new condos downtown on that Parking Plaza?

6. Which of these options, park or theater, would benefit the most citizens and taxpayers of Los Altos?

7. What does funding the theater with “public/private” funds mean?

8. And exactly how much public funding are you willing to commit to?

While we believe that most of you favor a new downtown theater, both surveys show that the majority of Los Altans do not want you to vote to pay any of our tax dollars towards the construction, development or operations of a new theater. Moreover, we believe the majority of Los Altans would prefer their tax dollars be used instead on resolving our budget deficit and, for example, funding all the deferred maintenance that has left most of the city-owned buildings in sad shape (police building, City Hall, Los Altos Youth Center, Grant Park Community Buildings/Senior Center to name a few). We believe they would prefer that you spend our tax dollars to bring our two fire stations into compliance. We understand our police force needs to hire nine (9) police officers to be fully staffed and we believe that public safety and crime 134
Agenda Item 1.
prevention is at the top of most of your constituents expectations from its City governmentWe also believe we need to hire staff for City departments because we understand that many of the department are significantly understaffed.

We would urge you to listen to the viewpoint of all of your constituents - including those who responded to the LAR survey AND those who responded to the Theater Group/AMS survey.

Again, the majority of all respondents from both surveys do NOT want the City to fund the construction, development or the ongoing operations of a new theater.

We hope you will take our concerns into consideration when you take up a new theater for discussion at the May 9, 2023 Study Session.

Sincerely,
Thanks!
Reena
︵‿︵‿︵‿︵‿︵

REENA KAPOOR
1927 ANNETTE LN., LOS ALTOS, CA 94024
[email protected] | [email protected]
135
Agenda Item 1.

From: Oleg Kiselev
To: Public Comment
Subject: Public Comment, Study Session, May 9, 2023"
Date: Monday, May 8, 2023 7:21:48 PM
Dear City Council,
I have an objection to:

1. Building the new theater on the Downtown Parking Plaza

2. Using city funds to pay for the construction of the new theater

3. Using city funds to pay for the maintenance of the new theater A new theater is not going to revitalize the downtown or bring new business. Most likely, it will move the patrons who attend Bus Barn theater now 2 blocks over.

I don't object to a private group buying or leasing land from the city and building a theater at their own expense. If the idea behind this theater is sound, the theater should be able to support its ongoing costs from its business. If the theater can not survive on its own revenues and the donations of its supporters, then saddling the city with a permanent lifeline for it ($1M/year by 2028-2030?!) is extremely irresponsible.

I am a Los Altos resident and property tax payer for the past 23 years. 136
Agenda Item 1.

From: [email protected]
To: Public Comment
Cc: City Council; Gabriel Engeland
Subject: [External Sender]public comments on theater study session may 9 Date: Monday, May 8, 2023 8:30:35 PM
To: Los Altos City Council
From: Jon Baer
Re: Downtown theater study session

1. Land on the Civic center site is a viable and preferable option for locating a new theater-there is sufficient land, readily available parking and close proximity to the downtown.

2. A downtown location for the theater, while originally envisioned as part of the downtown vision plan, is no longer a good option. Much has changed, including the need to put housing downtown on several of the downtown parking plazas without necessarily providing parking, much less replacing the lost parking spots. The other parking plazas must be kept for parking to meet the demand for parking for existing downtown businesses as well as new residential buildings which have insufficient parking.

3. Building affordable housing in the downtown without providing parking, while within the current State laws, is a policy decision which unduly disadvantages those in affordable housing who have cars and could subject the City to legal challenge. Please read the following article on this subject: https://missionlocal.org/2023/05/no-parking-at-mission-affordablehousing-means-tenants-pay-the-price/

4. The proposed downtown theater does not address the issue of parking nor replacement parking. Looking at adding mixed use development to the project only worsens the parking deficit

5. Park in lieu and public art funds should not be used to construct or subsize operations of a theater. The money was raised to maintain and upgrade our parks and provide public art throughout town. Using those funds for a theater is a misuse and mis-prioritization of money.

The city has failed to fund other, time sensitive park projects, including improvement at Grant park which could be funded by park in lieu monies. By funding projects such as the theater with park in lieu money, it will necessitate deferring other projects or require diversion of scarce general funds for those projects.

6. The proforma for the theater assumes that grants, corporate sponsorship and donations will cover the nearly $900K annual deficit. This deficit, which is likely to grow over time, is as large as the revenues expected from productions, programs and rentals. This is a huge hole which the City would be forced to cover if donations do not meet projections.

7. The cost of construction is estimated at $1000/ft sq. Given the cost of building the community center, that cost estimate may be low by 30-50%, particularly if it must meet standards for City public facilities.

8. While there is support for a theater from a core group within the community, half the residents are not in favor of funding a theater with public funds. Most of the public is not in favor of donating land for a theater.

9. The survey that was completed by the theater group was ambiguous and misleading, resulting in survey results that do not fully reflect the community’s opposition to spending city funds on a new theater.
137
Agenda Item 1.

From: Carla Hickman
To: Public Comment
Subject: [External Sender]Public Comment, Study Session, May 9, 2023--Theatre Date: Tuesday, May 9, 2023 12:17:42 AM
I am writing to voice my opposition to the City spending money and converting any City lands for a Theatre in Downtown Los Altos. I have many concerns over this issue.

1. The notifications and information about this entire project have been dismal. I feel like the Council is trying to sneak this in without any true input from the residents.

2. Parking is already at a premium in Los Altos. Between the restaurants taking parking spaces (which I am NOT opposed to), new development adding more users downtown and very little new parking, and the already limited availability for parking in downtown, it is absurd to think of taking spaces for a theatre that would require more parking, and yet taking away parking.

3. The idea of the City paying for any part of the construction of this Theatre, and an even bigger problem, being responsible for the upkeep and staffing for such a venture in the long term, is absurd. We all heard the comment from one of the City Council member after winning election who “promised” a theatre to the best friend.

Ridiculous. If a theatre is so well supported, then let those that want it fund it with their own supporters.

4. Los Altos is a small town. The existing live theatre does not appear to be a huge draw, as there are always tickets available, certainly not enough to spend millions to expand, take parking and require years of long term costs.

People are NOT coming to Los Altos to go to a play. There are several theaters in other communities nearby that are more than available for Los Altans to participate in if they so desire. Mountain View Theatre sits vacant so much of the year and they have a community more than double the size of ours. There are theaters available at the high schools, and even Foothill where arrangements could be made for shared use.

5. At a time when people are moving away from the area and housing prices are going down, construction costs are skyrocketing (see recent articles on Bay Area City projects in the area with costs far exceeding budgets), and long term budgets in question with less business taxes coming, now is NOT the time to put a huge financial outlay on the budget, with maintenance and staffing costs continuing far into an uncertain future.

6. Your own, very minimally successful survey does not match up with your idea of overwhelming support for this project. People are not interested in this project. At minimum, this should be put to the voters. The idea that the City has spent as much money as it has, even considering this with feasibility studies and the like is ridiculous.

After getting a No vote on the Community Center, and pushing it through despite voters saying no, and seeing the empty spaces over there on a regular basis, and lack of available staffing, I am extremely concerned that the Council is trying to proceed with their own agenda with no regard for the thoughts and opinions of the constituents they serve.

Please take into consideration the citizens of this town outside of your immediate friend group. There are still many of us living in this town that do not have unlimited funds to support fiscally irresponsible spending.

The support for a downtown theatre is minimal from the discussions I have had with neighbors and friends in town, and I strongly urge you to be realistic about what you are thinking about, and drop the Theatre project from consideration.

Carla Hickman
Los Altos Resident
138
Agenda Item 1.

From: Jo Estill
To: Public Comment
Subject: Public Comment Study Session May 9, 2023
Date: Tuesday, May 9, 2023 7:57:21 AM
Any consideration of spending any city funds on a theater is ludicrous. Our city is facing such liability right now from lack of funding for normal town expenses. For instance, how many people have fallen already while tripping on the upended asphalt in all of our parking plazas? For instance, how many residents have tripped while trying to reach their mailboxes because the city's gutters are impeded due to city installed street tree's roots? For instance, where in our city's budget does it fulfill the future unfunded employee pension plans? For instance where in our city's budget is funding for much needed upgrading to 70 year old buildings?
Even considering any city funds towards a theater at this time is seriously a frivolous idea.

JoAnne Estill
1972 Deodara Drive
Phone: 650 967 5086
139
Agenda Item 1.

From: Monica Waldman
To: Public Comment
Subject: PUBLIC COMMENT MAY 9, 2023 THEATER STUDY SESSION Date: Tuesday, May 9, 2023 8:01:31 AM
Council Members,
My family benefits from having a local theater in Los Altos and we've attended several performances over the years. After reading the packet for the Theater Study Session I have the following concerns:

1. Why was the survey not sent to all members of the Los Altos community but instead sent to a select few who were selected by an unknown criteria? As Chair of the Public Arts Commission, an art teacher and a working artist with an extensive arts background, I was saddened that I was not "chosen" to participate in the survey. How accurate are the results and how do they reflect the wishes of the community?

2. Slide 40 mentions "Housing, housing, housing!" which should be the top priority with City owned land at this time. We are trying to get our Housing Element passed and how will HCD react when finding out our City will be using City owned land for an entertainment venue in lieu of housing?

3. Why not rebuild LASC's current building and create a Cultural Hub with the Main Library, History Museum, Community Center and new theater? Events could use multiple facilities with ease with this configuration.

Monica
140
Agenda Item 1.

From: Rita Held
To: Public Comment
Subject: downtown theater
Date: Tuesday, May 9, 2023 11:03:32 AM
A new theater downtown is not a good idea.
#1 Using a downtown parking plaza for a new theater is ridiculous. Parking downtown is tight, especially now with outdoor eating taking lots of street parking.
#2 We already have a theater at the community center where there is lots of parking. If needed, renovate the existing theater or build a new one there. #3 Perhaps it’s time to put this issue on the 2024 ballot, and let Los Altos voters decide.

Most sincerely,
Rita Cartalano
141
Agenda Item 1.

Los Altos City CouncilMay 9, 2023

Los Altos City Council
May 9, 2023