PowerPoint Presentation — Santa Monica City Council, June 10, 2025

THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION

SANTA MONICA

SPECTACULAR SIGNS
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
© 2025 ORANGE BARREL MEDIA

ROBERT JAY CHATTEL
Historic Resources Consultant
Chattel, Inc.

BERTA NEGARI
Ownership Team
United XYZ, LLC

DEDICATED PROJECT TEAM

DANIEL NEGARI
Property Owner and Founder & CEO
United XYZ, LLC

JIBRAN SHERMOHAMMED
VP, Development & Corporate Counsel
Orange Barrel Media

YUMNA SIDDIQI
Senior Director of Architecture
Orange Barrel Media

NELS YOUNGBORG
Historic Resources Consultant
Chattel, Inc.

GABY GHERMEZI
Associate Development Director
Orange Barrel Media

CLAY COLLETT
Senior Development Director
Orange Barrel Media
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

OFFICES IN NEW YORK, LOS ANGELES,

COLUMBUS & CHARLOTTE

LARGEST OPERATOR OF DIGITAL OOH MEDIA

IN DOWNTOWN ATLANTA, WASHINGTON DC,

BOSTON, DENVER & ON THE SUNSET STRIP
EST. 2004
160+
OBM + IKE Market
Map Key:

OBM Market
IKE Market AS SOC IAT E S WORK I N G TO G E T H ER

TOWARDS A COMMON GOAL

NATIONWIDE REACH

KANSAS CITY DENVER

BERKELEY

OAKLAND

SAN JOSE

LOS ANGELES

CULVER CITY

WEST HOLLYWOOD

SAN DIEGO

PHOENIX

TEMPE DALLAS

ARLINGTON

SAN ANTONIO

HOUSTON

CHICAGO

MINNEAPOLIS
ST. LOUIS

DETROIT

CLEVELAND

CINCINNATI

COLUMBUS

PITTSBURGH
BOSTON

NEW YORK

BALTIMORE

PHILADELPHIA

WASHINGTON, DC

NORFOLK

CHARLOTTE

RALEIGH

ATLANTA
TAMPA

WEST PALM BEACH

NASHVILLE
MIAMI

AVENTURA

CORAL GABLES

MIAMI BEACH

MEET OBM
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

WEST HOLLYWOOD, CA WEST HOLLYWOOD, CA MIAMI, FL

WEST HOLLYWOOD, CA WEST HOLLYWOOD, CA SAN JOSE, CA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

PROPOSED PROGRAM
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
1200 BLOCK LOCATIONS
f Both properties are located on the Third Street
Promenade.
f Both properties are corner properties with excellent
visibility.
f Both properties are located on the 1200 Block.
f Both buildings have existing upper floors for mounting the displays, so these displays are not associated with any new development. Indeed, the 1202 Third Street
property historically included a sign tower for J.C.

Penney.
f 1202 Third Street Promenade has no adjacent residential uses, and the proposed display at 301 Arizona has
been purposefully positioned away from the Criterion
apartments to avoid any light intrusion into the
residences.
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
© 2025 ORANGE BARREL MEDIA

HISTORIC PROMENADE PHOTOS
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
1202 3RD STREET

EXISTING CONDITIONS
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
PROJECT RENDERING: DAY VIEW
1202 3RD STREET
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
PROJECT RENDERING: NIGHT VIEW
1202 3RD STREET
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
301 ARIZONA AVENUE

EXISTING CONDITIONS
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
PROJECT RENDERING: DAY VIEW
301 ARIZONA AVENUE
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
PROJECT RENDERING: NIGHT VIEW
301 ARIZONA AVENUE
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
© 2025 ORANGE BARREL MEDIA

SURROUNDING USES
1202 3RD STREET
301 ARIZONA AVENUE
Third Street Promenade

COMMERCIAL

MIXED-USE

COMMERCIAL/

RESIDENTIAL
Wilshire Boulevard

RESIDENTIAL

COMMERCIAL

RESIDENTIAL

COMMERCIAL

COMMERCIAL
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

PROJECT BENEFITS
f Generate substantial general fund revenue to the City on an expedient basis
f Enhance and enliven the economic environment of the
Downtown including the Third Promenade and the new
Promenade Entertainment Zone
f Ensure content on the signs includes public art/artistic creations, civic announcements of public interest or
importance, and content promoting the City and/or its
rich history, including Downtown Santa Monica and the
Third Street Promenade
f Result in memorable and creative attractions for visitors and residents alike
f Increase pedestrian activation, engagement and
enjoyment
f Require design and installation of an interpretive exhibit commemorating the history of the former J.C. Penney
building, an officially designated City Landmark at 1202 Third Street
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
COMMUNITY CONTENT (20% OF OPERATING TIME)
f Public art and City/nonprofit/public service
announcements
f Santa Monica Arts Commission to review and provide
input on public art plan as to over-arching program
objectives and goals—for example, a desire to promote
local Santa Monica artists, art of school-aged children and/or artists focused on advocating civil rights/
inclusiveness awareness.
f Santa Monica Cultural Affairs staff to provide final
approval of this public art plan and confirm selected
artists/artwork conforms to the plan.
f Based on this public art plan, Applicant to commission and display art on the digital signs interspersed with the advertising.
f All public-oriented content, including art, to run in the same general “loop” throughout the day as paid
commercial content—ensuring that the art and other City/ nonprofit content is not relegated to being shown only
during off-peak or overnight hours.
f In addition, signs will display more artwork whenever there is unsold advertising space.
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

CITY REVENUE SHARE
f City to receive the following financial benefits, across both displays:
20%

GROSS REVENUES ANNUALLY
$2,000,000

GUARANTEED IN YEAR ONE
($1,000,000 ONE-TIME CONTRIBUTION + $1,000,000 MAG)
$4.8M
APPROX. AVERAGE ANNUAL PROJECTED REVENUE
$260M
APPROX. TOTAL PROJECTED REVENUE
© 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
© 2025 ORANGE BARREL MEDIA

PROGRESS TO DATE & NEXT STEPS

DEVELOPMENT AGREEMENT APPLICATIONS
f 301 Arizona Avenue/1253 Third Street Promenade filed on November 21, 2024. f 1202 3rd Street Promenade filed on January 30, 2025.

COMMUNITY OUTREACH MEETING (APRIL 3, 2025)

OTHER COMMUNITY AND STAKEHOLDER OUTREACH (ONGOING)

PRELIMINARY COUNCIL FLOAT-UP (CURRENT)

NEXT STEPS
f DA Negotiations and Project Review
f Planning Commission Recommendation Hearing
f City Council Hearing(s)
f Landmarks Commission (1202 3rd Street Only)
f Coastal Commission
f Building & Safety
f Fabrication
f Installation
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
© 2025 ORANGE BARREL MEDIA

OBM INPUT ON QUESTIONS FOR COUNCIL

1. What terms and conditions should the agreements contain (length, options for extensions, etc.)? f DA term length needs to reflect the investment being made by the applicant team to bring these signs to fruition f 55 year term proposed
f Payment to City is immediate and not after applicant’s return is made - a long term secures long term revenues to the City 2 & 3. Is the proposed financial benefit structure appropriate? Other considerations in terms of payment timing (e.g., timing of one-time contribution for each digital signage)?
f 20% share of gross revenues
f Growing minimum annual guarantee
f $500,000/per sign bonus paid when the signs “go live.”

4. How should public art content be curated?
f OBM can curate art content -- we have and will continue to develop key partnerships with internationally recognized and local artists, as well as museums, art institutions, and curators
f Arts Commission to review and provide input on public art plan as to over-arching program objectives and goals.

5. As part of the community content benefit, should there be benefits for local businesses? f Yes, we can work with City Staff on how to best allocate the community content time between local business promotion, public art and other community content.

6. What other community benefits should be considered? (e.g., streetscape enhancements, contributions to the Downtown Business Improvement District, etc.) f For 1202 Third Street Promenade (a City-designated landmark), interpretive exhibit commemorating the history of the former J.C. Penney building designed in consultation with consultant Robert Chattel, the Santa Monica Conservancy and the Landmarks Commission and potentially an artist f Allocating a portion of City revenue from Downtown digital displays to DTSM, Inc. for reinvestment in the Promenade.

7. What is an appropriate occupancy threshold for the proposed buildings? f Substantial increase in the minimum annual guarantee when either (a) more than 50% of the rental floor area is unoccupied or (b) the entire ground floor level remains unoccupied for more than 12 consecutive months f Digital displays will assist with attracting and retaining commercial tenants both on the subject properties and adjacent properties

8. Are the locations for the two proposed digital displays appropriate? f Yes, both properties are corner properties on the 1200 Block identified by Council as an area in need of new, creative ideas and revitalization

9. Should the City establish a guiding program/policy for future applications of digital displays? f If Council wishes to do this, please continue processing our pending development agreement applications so that substantial revenue to the City will be realized sooner.
f Third Street Promenade is a great location for a pilot program. 10 & 11. What operating conditions should be applied to the proposed digital displays? What other performance standards should be established (other than brightness, refresh rates, etc.)?
f Ongoing maintenance requirements
f Daytime and nighttime light limitations
f Avoid driver distraction concerns by prohibiting flashing or strobing content or scrolling text f Content restrictions
• (a) political advertisements; (b) adult-related products and services, firearms, tobacco, smoking, smoking materials, including electronic smoking or “vaping;” (c) sexually explicit or excretory subject matter; (d) false, misleading or deceptive content; (e) violation of copyright or trademark rights or is otherwise unlawful; (f) illegal activity; (g) profanity or violence; (h) material condoning discrimination based upon race, religion, creed, ethnicity, disability, gender or sexual orientation; or (i) material that is harmful or disruptive to public use of the Third Street Promenade.

Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

APPENDIX
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

COMMUNITY BENEFITS SUMMARY
Digital Displays Community Benefits Summary
301 Arizona 1202 Third Street Promenade
Installation
Contribution to
City of Santa
Monica
$500,000 per sign at C of O/final building permit sign-off (total $1,000,000) Annual
Contribution to
City of Santa
Monica
Greater of 20% of each sign’s annual gross revenues--with MAG equaling $850,000 per sign by year three and increasing annually thereafter
(see MAG table on page 2)
Portion of sign
operating time to
be allocated for
public purposes
20% of total operating time consisting of:
• Public art and City/nonprofit/public service announcements • All public-oriented content, including art, to run in the same general “loop” throughout the day as paid commercial content—ensuring that the art and other City/nonprofit content is not relegated to being shown only during off-peak or overnight hours. (Typical ad cycle is 28 days.) • In addition, signs will display more artwork whenever there is unsold advertising space.

Each sign tied to
ongoing
occupancy of
building to which
it is attached
MAG increased by 25% if either of the following:
• more than fifty percent (50%) of the rentable floor area within the Existing Building remain unoccupied for more than 12 months or
• the entire ground floor level of the Existing Building remains unoccupied for more than 12 months.

Historic
Commemorative
Installation
n/a Permanent physical commemorative installation
at 1202 Third Street Promenade reflecting the
history of the property giving rise to its
designation as a City Landmark.

GUARANTEED CITY REVENUE SHARE
Year(s) 301 Arizona Avenue 1202 3rd Street
1 $1,000,000
($500,000 MAG + $500,000 one-time contribution)
$1,000,000
($500,000 MAG + $500,000 one-time contribution)
2 $750,000 $750,000
3-4 $850,000/year $850,000/year
5-9 $935,000/year $935,000/year
10-14 $1,028,500/year $1,028,500/year
15-19 $1,131,350/year $1,131,350/year
20-24 $1,244,485/year $1,244,485/year
25-29 $1,368,933.50/year $1,368,933.50/year
30-34 $1,505,826.85/year $1,505,826.85/year
35-39 $1,656,409.54/year $1,656,409.54/year
40-44 $1,822,050.49/year $1,822,050.49/year
45-49 $2,004,255.54/year $2,004,255.54/year
50-55 $2,204,681.09/year $2,204,681.09/year
Total Minimum Annual Contribution
*includes one-time $500,000 contribution More than $80,000,000 More than $80,000,000 © 2025 ORANGE BARREL MEDIA
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Thank You
Jibran Shermohammed
VP, Development & Corporate Counsel
[email protected]
(770) 714-9174
Clay Collett
Senior Development Director
[email protected]
(615) 977-1773
Gaby Ghermezi
Associate Development Director
[email protected]
(310) 890-5773
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

Santa Monica City CouncilJune 10, 2025

Santa Monica City Council
June 10, 2025