City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 5.Q
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of First Modification to License Agreement with Cirque du Soleil Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Authorize the City Manager to negotiate and execute a first modification to the License Agreement No.11517 between the City and Cirque du Soleil to provide a rent credit and extend hours of amplified sound for the evening of October 24, 2024.
Summary
On December 12, 2023, Council authorized the City Manager to negotiate and execute a license agreement with Cirque du Soleil to welcome back their iconic big top tent on a portion of Beach Lot 1N, the parking lot north of the Pier, from October 1, 2024 to January 24, 2025. The last time Cirque du Soleil brought its traveling circus to Santa Monica was 10 years prior. The City is excited to host the return of Cirque du Soleil as part of the City’s post-pandemic economic recovery and expansion of community cultural offerings that will benefit the economic wellbeing of the community. To help support their opening success, Cirque needs to make some additional improvements to Lot 1N to accommodate their electrical needs, and has requested that the City allow them to host a premiere event on the site on October 24, 2024, which would necessitate a modification to the license agreement.
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Discussion
As part of the site preparation for the show it was determined the electrical equipment which powers the event site and parking lot lights requires replacement prior to the event’s occupancy. The cost for repairs is estimated to be $168,000 including building permits and fees, engineering drawings and project management. This repair will be funded by Cirque du Soleil. Staff seeks authorization to modify the License to provide a $50,000 rent credit to partially offset Cirque’s costs against the site rental fee of $1,544,309. The investment in Lot 1N to improve the electrical equipment will benefit the City and Beach Lot visitor experience and help support future event activations on this site.
Also, the License Agreement between the parties limits the use of amplified sound to 10PM. Cirque du Soleil requests permission to allow amplified sound inside their tent on the night of Thursday, October 24, 2024 until 1:30 AM to coincide with their official premiere show and after-party. Other than this one evening, use of amplification will continue to be limited to 10PM. A neighborhood notice will be sent to residences within a 500 foot radius of the event in advance and will include contact information should there be any concerns. All speakers will be directed away from residences and it is not anticipated that the amplified sound will be audible outside the tent.
Environmental Review
The License Agreement is categorically exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which include 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 agreement involves the licensing of the existing property located at 1550 Pacific Coast Highway, and would not result in the expansion of this site. Therefore, the agreement is exempt from CEQA pursuant to Section 15301.
Additionally, the agreement is exempt pursuant to Section 15061(b)(3) of the CEQA Guidelines which states that CEQA does not apply “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on 3 of 3
the environment.” The proposed modifications of the agreement would not result in a physical environmental effect on the environment, and as such is exempt from CEQA.
Past Council Actions
Meeting Date Description
12/12/2023
(Attachment A)
Approval to Enter into a License Agreement with Cirque du Soleil
Financial Impacts and Budget Actions
The recommended action is estimated to result in a reduction in the amount of $50,000 in the site rental fee to the Beach Fund for FY 2024-25. If approved, the revenue adjustments will be included in the FY 2024-25 midyear budget process.
Prepared By: Elana Buegoff, Pier Administrator
Approved Forwarded to Council
Attachments:
A. 12.12.2023 Staff Report (Web Link)
B. OaksInitiativeNotice
C. Levine Act Disclosure Form