City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 5.E
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of Memorandum of Understanding (MOU) with StartupStarter for Santa Monica Hub Innovation Event Including Road Closure Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a Memorandum of Understanding (MOU) with StartupStarter to sponsor a one-day street closure event called Santa Monica Innovation Hub on Monday, October 14, 2024;
2. Adopt a finding of Categorical Exemption (Class 1 Existing Facilities) pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines.
Summary
StartupStarter, the founders of LA Investment Week and producers of LA Tech Week, has submitted a community events application requesting a partnership with the City to sponsor a one-day open street event called Santa Monica Innovation Hub 2024. This event meets the criteria for a City-sponsored event, as outlined in Administrative Instruction II-4-21. Staff recommends that Council authorize entering into an MOU to authorize the City to sponsor the event and to define the roles, responsibilities, and financial contributions of each party.
Discussion
Santa Monica stands as Southern California's premier technology innovation hub, attracting next-generation entrepreneurs eager to launch startups. In the heart of Silicon Beach, our city’s strategic positioning fosters a dynamic ecosystem ripe for innovation.
Entrepreneurs benefit from a supportive community, accessing top-tier talent, a wealth 2 of 10
of resources and state-of-the-art startup accelerators. With the unbeatable combination of coastal charm, entrepreneurial spirit, and tech-friendly infrastructure, Santa Monica offers an unparalleled environment for startups to thrive, innovate, and succeed. Santa Monica is the epicenter of creativity and opportunity on the West Coast and it’s time to help remind the world of this and to celebrate our innovators – individual entrepreneurs, businesses, non-profits, educational institutions, and community partners.
The City has been requested to partner with StartupStarter and Downtown Santa Monica, Inc. (DTSM) to sponsor Santa Monica Innovation Hub, a one-day street closure event in celebration of LA Tech Week and Innovation Week on Monday, October 14, 2024, on Ocean Avenue, along with a one-day Youth Innovation Hub event on Tuesday, October 15, 2024, on Third Street Promenade.
LA Tech Week is primarily a tech industry event comprised of a series of ticketed events throughout the region for investors and entrepreneurs, including hackathon events, investor meetups and networking. Staff in Economic Development and the Information Services Department, along with DTSM, have been working closely with StartupStarter to formulate the vision for the event and identify key economic development goals to help support and accelerate the economic recovery efforts in Santa Monica.
The event coincides with the opening of A16z in Santa Monica. A16z, one of the leading venture capital firms in the United States, hosts the annual LA Tech Week event series, which takes place in venues across LA County. The Santa Monica Innovation Hub will stand as the premier event to launch the week-long series of events taking place across the entire City of Santa Monica and throughout LA County.
The full street closure event is proposed to be held on the one block segment of Ocean Avenue and Palisades Park between Santa Monica Boulevard and Broadway. The Community Events Ordinance allows open street events to occur on weekends and Monday holidays, and October 14 is a federal holiday. The applicant has submitted their Community Event Permit application to the City, and it has undergone initial review by City staff to ensure the footprint is feasible for traffic control, Police and Fire operations, and will not impede access to property owners and businesses located 3 of 10
along this route. This is a paid, ticketed event but it will maintain public access on the sidewalks and along the segregated bike path, as well as the footpath through Palisades Park. A staff recommendation is to require a certain number (e.g. 100) tickets to be provided free of charge to Santa Monica education partners. Property owners and tenants located along the route will also be granted vehicular access to their properties at all times.
City staff believe the economic benefits brought to the City by this event justify the sponsorship. Santa Monica’s Creative and Tech Sector is comprised of 3,197 businesses, employing 30,839 people (35% of the City’s total employment) with an average quarterly payroll of $1.6 billion (57% of City’s total). It’s an incredibly important sector to the City’s economy but also one that is volatile, as evidenced by Santa Monica’s office vacancy rate of 19.7% as reported in Costar as of June 2024. Prior to COVID, many of Downtown Santa Monica’s offices (e.g. Santa Monica Clock Tower, the upper levels of buildings along Third Street Promenade, Second and Fourth Streets) were largely occupied by tech companies and start-up entrepreneurs. Many of the workers in the tech sector continue to work remotely, however, and as leases are coming to term, it is time for these companies to determine whether they want to continue to commit to Santa Monica or operate remotely for the indefinite future.
Thankfully, our City is starting to see these workers returning and welcoming new companies opening (e.g. A16z and Pegasus Angel Accelerator). Expert Dojo, Stubbs Alderton & Markiles and WeWork are all located on the Third Street Promenade and continue to play an important role in fostering innovation and launching the next generation of entrepreneurs. Thus, the importance of this event is to raise the profile of Santa Monica as the leading innovation hub in the region and to help reinforce the message “you belong here” as a means of retaining and attracting innovation talent to and investment in Santa Monica. This event also aligns with the City’s goals to cultivate economy recovery and expand community and cultural offerings, and to support a sustainable and connected community with programs that will benefit the economic wellbeing our community.
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The event organizers are already in discussions with businesses and property owners located along the route to get their support. The Shore Hotel will be hosting VIP events at the hotel and pool area; restaurants along and near the route will also be hosting mixer events. City staff are also using this event as an opportunity to reconnect with many of Santa Monica’s venture capital and private equity firms, including A16z, Clearlake Capital, Ocean Avenue Capital Partners and Upfront Ventures, along with tech incubators and accelerators such as Expert DoJo, Science and Stubbs Alderton & Markiles (all located in DTSM) and UP Partners (located at Santa Monica Airport) along with our cutting edge, leading Santa Monica innovators such as SNAP, Lionsgate, Hulu and Kite Pharma. The local entities are invited to get involved and showcase their innovative products to investors and the community. The coinciding Youth Tech event on the following day will serve to showcase up-and-coming innovation to the community. This free event will take place on Third Street Promenade to spotlight youth tech and help showcase our community’s emerging innovators in partnership with the local schools (Santa Monica College, Santa Monica Malibu Unified School District, Crossroads, New Roads as well as UCLA) and help raise awareness of the local tech sector and Santa Monica’s role as an innovation hub. The Memorandum of Understanding will specify the local partnerships, the requirement to work in partnership with DTSM businesses along the event route, and priority to showcase Santa Monica tech firms. It will also require a certain number of tickets for the paid event be made available to the community at no charge.
The organizers are working with LA Times and LA Business Journal along with their impressive channel of VC and tech firms across the country to promote the event and foster meaningful economic connections between tech entrepreneurs and tech investors (hence the merging of LA Tech Week and LA Investment Week).
Key messages associated with the Santa Monica Innovation Hub event and outreach include: Why Santa Monica? What is Investment Week 2024 + LA Tech Week? Who and what will be at the Hub?
Why Santa Monica?
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Santa Monica is the epicenter for technology and innovation in the region. Situated in the heart of Silicon Beach, Santa Monica benefits from its proximity to major technology companies, startups, venture capital firms, and renowned academic institutions. This concentration of resources fosters collaboration, networking, and knowledge sharing within the tech community. The Santa Monica Innovation Hub celebrates the city’s ability to connect many worlds together, culminating amongst the beautiful beach front skyline. Some of the advantages Santa Monica offers, include:
1. Startup Ecosystem: Santa Monica boasts a vibrant and dynamic startup ecosystem, attracting entrepreneurs, innovators, and investors from around the world. The city is home to numerous incubators, accelerators, co-working spaces, and startup support organizations, providing essential resources and mentorship to early-stage ventures.
2. Access to Talent: With its desirable coastal location and high quality of life, Santa Monica attracts top-tier talent across various industries, including technology, engineering, design, and business. The city’s diverse and skilled workforce fuels innovation and creativity, driving the growth of its tech sector.
3. Tech-Friendly Infrastructure: Santa Monica’s infrastructure is tailored to support the needs of technology companies and startups. The city offers robust internet connectivity through the state-of-the art CityNet broadband program, modern office spaces, and amenities designed to enhance productivity and collaboration. Additionally, initiatives such as the City of Santa Monica’s CityNet, Shared Mobility and the Zero Emission Delivery Zone pilot demonstrate a commitment to leveraging technology for community benefit.
4. Supportive Community: Santa Monica fosters a supportive and inclusive community for technology and innovation. Local organizations, meetups, and events provide opportunities for networking, learning, and mentorship. The city government actively engages with the tech community to address challenges, promote growth, and create a favorable business environment. 6 of 10
5. Quality of Life: Beyond its professional opportunities, Santa Monica offers an exceptional quality of life with its beautiful beaches, cultural attractions, outdoor recreation, and vibrant culinary scene. This desirable lifestyle attracts talent and encourages professionals to live, work, and innovate in the city.
6. Commitment to Sustainability: Santa Monica prioritizes sustainability and environmental stewardship, aligning with the values of many tech companies and entrepreneurs. The city has implemented initiatives focused on renewable energy, green transportation, waste reduction, and sustainable urban planning, making it an attractive destination for environmentally conscious businesses and individuals.
What will be at the Hub?
1. Immersive Innovation Activations: Interactive exhibits and demonstrations showcasing cutting-edge technologies, startups, and innovation initiatives will engage attendees and highlight Santa Monica’s role as a leader in innovation.
2. Art Exhibitions: Local artists will display their work along the street and adjacent park, adding a cultural dimension to the event and celebrating the intersection of art and technology.
3. Food: A diverse selection of food trucks, vendors, and pop-up eateries will offer culinary delights ranging from gourmet cuisine to street food favorites, catering to all tastes. Priority will be given to Santa Monica businesses.
4. Networking Opportunities: Attendees will have the chance to connect with entrepreneurs, investors, industry professionals, and community leaders, fostering collaboration and partnership opportunities.
5. Street Closure: Ocean Avenue between Santa Monica Boulevard and Broadway will be closed to motorized traffic to create a pedestrian-friendly environment for the event, this would include redirecting traffic on Ocean Avenue.
6. Entertainment: Live music performances and street performers will entertain attendees throughout the day, creating a festive atmosphere. 7 of 10
7. Youth Innovation Hub: On October 15th, a dedicated area will be set up on the Santa Monica Promenade for youth-focused innovation activities, workshops, and presentations, encouraging young minds to explore technology and entrepreneurship in partnership with Children’s Healthcare of Los Angeles.
Investment Week 2024 + LA Tech Week
Investment Week + LA Tech Week events are annual flagship startup and investor events spanning seven days of immersive experiences and conference programming in Los Angeles hosted and operated by StartupStarter. Investment Week 2024 is built to connect startups with investors and service providers who support their growth. These events feature thought leaders, industry experts, world class founders and brands supporting the expansion of technology innovations. The events help to position the participating companies with partnerships and strategic collaborations to support customer acquisition across the broader startup ecosystem, in an effort to boost profitability.
Who Is StartupStarter?
StartupStarter is a LA-based media & fintech company revolutionizing the capital raising process for both startups and investors through secure live-data connections via Application Program Interfaces (APIs) to banking, billing, accounting, marketing, social media, and other software & technology providers. StartupStarter’s technologies create an opportunity for startups to access more capital opportunities through transparent growth data and provides investors the ability to source new investment deals, deploy capital effectively, and track the growth of their portfolios. The co-founder Lorel Scott has worked closely with many Santa Monica tech companies, including Expert DoJo and Stubbs Alderton and Markiles, who have provided references to the City.
References have also been provided by UCLA Anderson Venture Accelerator, an event curation partner.
Lorel Scott, the COO and co-founder of StartupStarter, is a black entrepreneur who is a member of the LBGQT+ community and is working to “change the narrative around 8 of 10
business education and level the playing field for people of color seeking to advance their businesses” (AfroTech, December 2022: https://afrotech.com/startupstarter-ischanging-the-narrative-for-entrepreneurs/) Staff recommends that the City enter into a MOU with StartupStarter to sponsor the Santa Monica Innovation Hub event and road closure on October 14, 2024. Under the terms of the proposed MOU, StartupStarter would assume responsibility for organizing and managing the event, as well as obtaining all appropriate permits. They would also be responsible for contracting with an event promoter and musical acts, securing the event space on private property, contracting with vendors and sponsors, and raising all the funds necessary to support the event, which is estimated to cost approximately $200,000. The proposed Santa Monica Innovation Hub event application has been reviewed by City staff from Recreation and Arts and Community Development to determine if the event meets the conditions for a City sponsored event, per Administrative Instructions II-4-21. Staff supports this event as it advances the City’s goal of supporting local businesses through economic recovery from the pandemic. The Economic Development Division has supported and helped to sponsor prior open street events for other Business Improvement Districts (BIDs) - Main Street and Montana Avenue.
The City would be responsible for providing oversight and coordination of the City’s permitting process, coordinating the City’s social media promotion of the event, providing certain fee waivers and reductions in accordance with the Community Event Administrative Instruction and assisting with outreach to Santa Monica tech businesses, education partners (e.g. Santa Monica Malibu Unified School District, Santa Monica College) and non-profit business organizations (e.g. Santa Monica Chamber of Commerce, Downtown Santa Monica, Inc., Santa Monica Pier Corporation).
The Memorandum of Understanding will specify the local partnerships, the requirement to work in partnership with DTSM businesses along the event route as well as priority given to showcase Santa Monica tech firms. It will also require a certain number of tickets for the paid event be made available to the community at no charge. It will also 9 of 10
require StartupStarter to also organize the free community-focused Youth Tech event on the Third Street Promenade in collaboration with Downtown Santa Monica, Inc. and the City to be held as part of LA Tech Week 2024.
StartupStarter has demonstrated experience and success with organizing tech events throughout the region and securing sponsorship funds. As sponsor partner, the City will waive application fees, provide staffing support with marketing and community outreach, charge reduced staffing costs for Police and Fire (per the Community Events Administrative Instruction) and will provide community Wi-Fi access to the event organizers and exhibitors. The organizer would be responsible for paying for all nonsworn City staff required by the event.
Environmental Review
The event is categorically exempt from CEQA pursuant to Section 15301. Section 15301 (Class 1 – Existing Facilities) exempts the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The event would occur on existing streets and facilities, and would not expand or materially change existing City streets or infrastructure, and therefore is exempt pursuant to Section 15301.
Past Council Actions
Meeting Date Description
04/25/2023
(attachment A)
Introduction and Adoption of an Urgency Ordinance
Amending Chapter 4.68 to allow for “Open Street”
Community Events to promote public safety and
welfare, and associated changes.
Financial Impacts and Budget Actions
Staff seeks authority to enter into an MOU with StartupStarter to sponsor the Santa Monica Innovation Hub event and road closure on October 14, 2024. The indirect costs associated with the event that includes fee reductions and in-kind staff time are funded from the various City department budgets, including Economic Development, Information Services, Recreation and Arts, and Transportation. The Economic Recovery 10 of 10
Fund will pay for actual costs incurred by the City that must be reimbursed and are not eligible to be passed along to the event partner under the Sponsorship Guidelines in the Community Events AI. StartupStarter will be responsible for paying for all other permits and fees associated with the event. The total estimated costs to the City are $15,000 based on budgets from prior Open Streets events on Main Street and Montana Avenue.
MOU Request
Request Amount FY 2024-25 Account # Total MOU Amount
$15,000 01800004.553170 $15,000
Prepared By: Jennifer Taylor, Economic Development Adminstrator Approved Forwarded to Council
Attachments:
A. Attachment A: Open Streets SR 04-25-2023 10C
B. Santa Monica Innovaton Hub 2024 Overview
C. Santa Monica Innovation Hub - Site Map