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agenda-report Approval of License Agreement with the Regent Hotel for Use of a Portion of Ocean Avenue

Santa Monica City Council
September 24, 2024

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agenda-report Approval of License Agreement with the Regent Hotel for Use of a Portion of Ocean Avenue
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September 24, 2024
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Santa Monica City Council
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City Council
Report
City Council Meeting: September 24, 2024
Agenda Item: 5.H
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To: Mayor and City Council
From: Jenny Rogers, Recreation and Arts Director, Recreation and Arts Department Subject: Approval of License Agreement with the Regent Hotel for Use of a Portion of Ocean Avenue
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines; and

2. Authorize the City Manager to negotiate and execute a license agreement with the Regent Hotel to use a portion of Ocean Avenue on October 24, 2024, for the grand opening event.

Summary
City staff have received a request for a partial street closure from the Regent Hotel as part of their upcoming grand opening celebration on Thursday, October 24, 2024. The Regent Hotel, one of the most premier luxury hotels, is opening the brand’s first hotel in the continental United States in Santa Monica - Regent Santa Monica Beach. Currently, the City’s events permit only allows closure of city streets on weekends, so staff are not able to permit this event at an administerial level. Therefore, as part of City Council’s strategic priority to cultivate the economic growth and cultural vitality of Santa Monica, staff recommend Council authorize the City Manager to enter into a license agreement to permit the Regent Hotel’s grand opening event.

Discussion
Recognizing the substantial community and economic benefits and operational impacts that result from community events, the City has a comprehensive, coordinated process 2 of 4
for managing events on public property and ensuring health and safety, which is codified in Santa Monica Municipal Code (SMMC) Chapter 4.68, Community Events law. The Community Events law establishes the City’s framework for permitting community events to use City streets, parks, open spaces, and City facilities licensed to private parties. Since its adoption in 2000, the City’s events ordinance has been updated several times to adapt to changing community priorities. The goal of the ordinance is to provide a means to facilitate community events while giving City staff sufficient time to adapt City services and provide notice to the community. Depending on the location, Big Blue Bus, Resource, Recovery and Recycling, and other City services must divert their routes and public safety, mobility and other teams must ensure proper measures are taken to make the event and surrounding area safe. The number of events and days that “Open Street” events can occur is currently restricted to minimize impacts to traffic, circulation, and noise impacts. “Open Street” events are only allowed on Fridays, Saturdays, Sundays and Mondays if it is a holiday except for Memorial Day, July Fourth, Labor Day, Thanksgiving, and Christmas Day.

The requested grand opening event is scheduled on Thursday, October 24, 2024, and in an area of the City that is not covered by a Business Improvement District. The event proposal includes a partial street closure on a portion of the street that affects businesses on the southbound side of Ocean Avenue between Olympic and Pico Boulevard. Because of the day of the week and the location of the hotel, the Regent grand opening permit request does not meet the criteria under the City’s Open Street Ordinance. A license agreement would provide the hotel and event producers the ability to host this major grand opening event, which supports the City’s ongoing economic recovery efforts, while preserving the public safety and welfare of the City.

The Regent Santa Monica Beach Hotel renovation and rebrand (formerly Loew’s Santa Monica) has resulted in approximately $150 million in private investment to Santa Monica. By introducing a new global brand to Santa Monica, this hotel plays an important role in helping to welcome back visitors to Santa Monica from around the world. It was named one of “Forbes Travel Guide’s 30 Most Anticipated Hotel Openings 3 of 4
of 2024” and had its official ribbon cutting ceremony on September 12th. The Regent is scheduled to welcome guest to Santa Monica starting October 1st.

Significant investments in Santa Monica’s hospitality sector demonstrate a strong confidence in Santa Monica’s ability to attract and sustain tourism and a renewed interest in the downtown leading up to major international events such as the 2026 FIFA World Cup and LA28 Olympics. The opening of the Regent Santa Monica Beach Hotel is an important milestone in the City’s economic recovery efforts in support City services.

Key Terms and Mitigation Measures:
• Event Details - Grand Opening Party, 2:00pm - 9:30pm, 1700 block of Ocean Avenue. This timeframe includes set-up and breakdown of event. A red carpet is being proposed to be laid out in front of their property on Ocean Avenue to welcome guests to the Grand Opening Party. Entertainment and mingling will take place on the red carpet for the first hour, after which guests will be directed inside the hotel.
• Proposed Partial Road Closure and Sidewalk Closure - Regent has hired Pacific Traffic Control on the site survey and developing a Temporary Traffic Control Plan. City staff is working with the Regent Hotel on developing a Temporary Traffic Control plan that will mitigate impacts to those impacted by the sidewalk and lane closure in front of the property. This will include traffic control barricades, temporary signage, bike lane re-routing, bus re-routing, wayfinding signage and traffic safety personnel.

To address circulation issues, the Regent Hotel may be required to provide onsite representatives to monitor the sidewalk closure, provide wayfinding support and redirect pedestrians to safe crossing routes. This will be addressed through Traffic Safety review and recommendations.
• The Regent Hotel will be responsible for payment of fees for all permits, licenses, and services required to support the event.
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• The Regent Hotel will comply with all noise regulations and will utilize noise monitoring devices to ensure compliance.
• To address neighborhood questions and impacts, the Regent Hotel will establish an on-site representative from set-up through demobilization to responsively handle information requests, complaints, and monitor noise.

Environmental Review
This project is categorically exempt under Section 15301/Class 1 of the CEQA Guidelines, because there will be no change or expansion in use of existing facilities.

Past Council Actions
Meeting Date Description
04/25/2023 (B) City Council Adopted urgency ordinance amending Municipal Code Chapter 4.68 to allow for “Open Street” Community Events to promote public safety and welfare, and associated changes.

Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. The Regent Hotel will pay all required City fees for this event.

Transient Occupancy Tax revenues associated with the opening of the hotel have already been incorporated into the City’s FY 2024-25 Budget.

Prepared By: Aaron Orozco, Community Recreation Administrator Approved Forwarded to Council

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