Written Comments — Santa Monica City Council, June 10, 2025

1 David Yakobson
From: [email protected]
Sent: Tuesday, June 10, 2025 11:04 AM
To: councilmtgitems
Subject: Digital Billboard Signage

EXTERNAL
Dear City Council,
As a voting member of the population of the City of Santa Monica and as a business owner, I encourage you to reject the current proposal for digital billboards at the corner of 3rd and Wilshire Blvd. The proposal as it is structured is not an equitable solution for the business owners inside the city and is proposing public-private revenue sharing on private property. Public-Private revenue sharing to obtain a license to advertise is extortion by the city of Santa Monica, as is a $500,000 application fee.

City ordinance should be fair and equitable to all businesses. There are many options for advertising which do not require the infrastructure, electricity use and light pollution that permanent LED billboards will result in. I would be happy to discuss other options with the city reps if they are interested.

Thank you,
Joe DiRosa
Sincerely,
To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet.

Joe DiRosa
Founder, CEO
Artist Series, Seedlings, Tartare, BrainPower
310-770-5171
[email protected]
www.seedlings.vc
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2 David Yakobson
From: Raymur Flinn <[email protected]>
Sent: Tuesday, June 10, 2025 11:36 AM
To: Lana Negrete; Jesse Zwick; Caroline Torosis; Ellis Raskin; Natalya Zernitskaya; Dan Hall; Barry Snell
Cc: councilmtgitems; Armine Chaparyan; Rachel Kwok
Subject: Digital Displays at 301 and 1202 Third Street Promenade - Support Attachments: LOS for OBM 6.9.2024.docx.pdf

EXTERNAL
Please see the attached letter of support for the Digital Displays.

Raymur Flinn
Executive Director
Santa Monica Education Foundation
1717 4th Street, Suite 132A
Santa Monica, CA 90401
Office: 310-450-8338
Cell: 310-663-0022
smedfoundation.org
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Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401
Re: Orange Barrel Media – Support for Santa Monica Public Schools Dear Members of the Santa Monica City Council,
The purpose of this letter is to share information about Orange Barrel Media’s support for our public-school students.

We are truly grateful for the commitment Orange Barrel Media has made to our students and schools. They have shown themselves to be a community-minded partner, supporting equitable education for all Santa Monica children in our public schools.

Orange Barrel Media has recently become a Corporate Hero donor to the Santa Monica Education Foundation, contributing financially to help fund critical programs. In addition to their monetary support, they have also offered to promote the Education Foundation on their proposed digital displays on the Third Street Promenade. This generous offer will help highlight the vibrant arts programs supported by our donors and will encourage broader support for the Foundation's mission.

These contributions ensure that students across all Santa Monica public schools receive enriching experiences in Academics, Arts, and Athletics.

Without support from Orange Barrel Media and other dedicated Corporate Heroes, Santa Monica schools would look vastly different.

We appreciate Orange Barrel Media’s investment in our schools and their commitment to Santa Monica’s future leaders.

Sincerely,
Raymur Flinn
Executive Director
1717 4th Street Ste 132A, Santa Monica, CA 90404 310-396-4557 smedfoundation.org Item 7-B
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1 David Yakobson
From: Judy Abdo <[email protected]>
Sent: Monday, June 9, 2025 9:39 PM
To: Lana Negrete; Caroline Torosis; Natalya Zernitskaya; Dan Hall; Barry Snell; Jesse Zwick; Ellis Raskin
Cc: councilmtgitems; Armine Chaparyan; Rachel Kwok
Subject: email to council re 7-B

EXTERNAL
Councilmembers,
I’m writing to express my support for the proposed digital displays at 301 Arizona and 1202 Wilshire, and to encourage you to move forward with Staff’s recommendation to start Development Agreement negotiations with the applicant.

As a former Councilmember and Mayor, I appreciate the value these signs will bring to the community economically and culturally. The displays will create a meaningful and long-term revenue stream for the City, offer a platform to spotlight community programs, provide an accessible advertising opportunity for local businesses, and serve as a virtual digital gallery for local artists. Altogether, they will add energy and creativity to the area, and help boost our ongoing economic recovery efforts.

Thank you,
Judy Abdo
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1 David Yakobson
From: Phyllis Hamilton <[email protected]>
Sent: Monday, June 9, 2025 2:24 PM
To: Lana Negrete; Jesse Zwick; Caroline Torosis; Ellis Raskin; Natalya Zernitskaya; Dan Hall; Barry Snell
Cc: councilmtgitems; Armine Chaparyan; Rachel Kwok
Subject: Digital Displays | 301 and 1202 Third Street Promenade - Support Attachments: Santa Monica Draft Support Letter 05.29.25 - John Reed.docx

EXTERNAL
Please see attached letter of support for the digital displays at 1202 Third Street Promenade.

Should you have any questions, let me know.

Thank you,

PHYLLIS HAMILTON

REAL ESTATE MANAGER
5420 LYNDON B JOHNSON FREEWAY
SUITE 300, DALLAS, TX 75240
C: 972-824-5180
Email: [email protected]
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RSG Group | John Reed Fitness
5240 LBJ Frwy., Suite 300
Dallas TX 75240
May 29, 2025
Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401
Re: Digital Display Development Agreements
Dear Members of the Santa Monica City Council,
On behalf of John Reed Fitness, I am writing to express our strong support for the proposed digital display at 1202 Third Street Promenade (25ENT-0021). As a tenant in this iconic building, we are deeply invested in the ongoing vitality of the 1200 block and the long-term success of our business within it.

The proposed digital display will not only enhance the energy and appeal of the area, it will also provide a canvas for us to promote our business. Like many businesses in the area, we face the challenge of maintaining foot traffic and visibility in a changing retail landscape, and signage is a useful tool to attract customers. This project offers a creative, impactful way to address that challenge.

By bringing in interest and engagement to the block, the digital display will not only help attract new customers to our gym, but the increased traffic will help other nearby businesses as well. Moreover, the signs will generate revenue for the City which can be reinvested back into the Promenade.

Thank you for your time and consideration. Please don’t hesitate to reach out if additional information is needed.

Sincerely,
Phyllis Hamilton
Real Estate Manager
John Reed Fitness – Santa Monica
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1 David Yakobson
From: Lindsey Lincoln <[email protected]>
Sent: Monday, June 9, 2025 8:43 AM
To: Lana Negrete; Jesse Zwick; Caroline Torosis; Ellis Raskin; Natalya Zernitskaya; Dan Hall; Barry Snell
Cc: councilmtgitems; Armine Chaparyan; Rachel Kwok
Subject: Yes on Digital Displays at 301 and 1202 Third Street Promenade Attachments: SMBGC Letter of Support.pdf

EXTERNAL
Hello –
I am attaching Boys & Girls Clubs of Santa Monica’s Letter of Support for digital displays on the Third Street Promenade.

Thank you,
Lindsey Lincoln
Director of Marketing & Communications
Boys & Girls Clubs of Santa Monica
1220 Lincoln Blvd, Santa Monica, CA 90401
T: 406.781.6636
Make a difference for local kids at smbgc.org!
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Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401
Re: Digital Display Development Agreements
Dear Members of the Santa Monica City Council,
I am writing to express my support for the two proposed large format, digital displays on the Third Street Promenade located at 301 Arizona Avenue (24ENT-0233) and 1202 Third Street Promenade (25ENT-0021).

These projects represent an exciting opportunity to bring new life and energy to the Santa Monica Promenade – particularly the 1200 block, which is ideally suited for this type of activation. The digital displays will not only add vibrancy and visual interest to the area but will also serve as a platform to showcase dynamic public art and community content that reflects the creative spirit of Santa Monica.

More importantly, the projects have been designed to directly benefit the city – not only through their thoughtful designs and integration into the urban environment but by generating new, ongoing revenue streams for the City.These funds can support essential city services and programs, making the signs not just a visual enhancement, but a meaningful public asset.

Being that the 1200 block is currently underutilized and in need of revitalization, it stands to benefit greatly from the foot traffic, engagement, and placemaking that these signs will help foster. By blending art, innovation, and economic impact, this project aligns perfectly with the goals of revitalizing the Promenade and strengthening its role as a cultural and commercial hub.

Thank you for your time and consideration. Please don’t hesitate to reach out if additional information is needed.

Sincerely,
Brynja Seagren
CEO
Boys & Girls Clubs of Santa Monica
Boys & Girls Clubs of Santa Monica
1220 Lincoln Blvd
Santa Monica, CA 90401
[email protected]
6/9/2025
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2 David Yakobson
From: David Kaplan <[email protected]>
Sent: Sunday, June 8, 2025 4:14 PM
To: Lana Negrete; Jesse Zwick; Caroline Torosis; Ellis Raskin; Natalya Zernitskaya; Dan Hall; Barry Snell; Armine Chaparyan; Rachel Kwok; councilmtgitems Subject: Support for Digital Displays at 301 and 1202 Third Street Promenade Attachments: Promenade Digital Display signage support letter 060625.pdf

EXTERNAL
Dear Members of the Santa Monica City Council,
I am writing in support of the proposed large format digital display signs on the Third Street Promenade located at 301 Arizona Avenue and 1202 Third Street Promenade.

These are prominent corners of the Promenade chosen to help highlight the northern end that has languished over the past decade or more and to invite others to enter the Promenade from the north.

The signage is also intended to benefit the City with advertising revenues as well as with time set aside for City content.

The Promenade is an ideal place for these digital displays, and a very talented firm has been preparing these designs including reviews with interested groups.

The signs are in keeping with the vibrant tone and active use that the City should want for this special shopping district and tourist attraction at the heart of downtown Santa Monica.

I strongly support this great addition and attraction for the Third Street Promenade that enhances a community resource and benefits all the surrounding businesses.

Thank you,
David Kaplan
2419 Pier Avenue
(letter attached)
David Kaplan | KCK ARCHITECTS
2526 Eighteenth Street
Santa Monica, CA 90405
310 452 7505
310 713 5446 cell
www.kckarchitects.com
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Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401

Re: Digital Display Development Agreements
Santa Monica Promenade

Dear Members of the Santa Monica City Council,
I am writing in support of the proposed large format digital display signs on the Third Street Promenade located at 301 Arizona Avenue and 1202 Third Street Promenade.

These are prominent corners of the Promenade chosen to help highlight the northern end that has languished over the past decade or more and to invite others to enter the Promenade from the north.

The signage is also intended to benefit the City with advertising revenues as well as with time set aside for City content.

The Promenade is an ideal place for these digital displays, and a very talented firm has been preparing these designs including reviews with interested groups.

The signs are in keeping with the vibrant tone and active use that the City should want for this special shopping district and tourist attraction at the heart of downtown Santa Monica.

I strongly support this great addition and attraction for the Third Street Promenade that enhances a community resource and benefits all the surrounding businesses.

Thank you,
David Kaplan
2419 Pier Avenue
Santa Monica 90405
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3 David Yakobson
From: Clay Collett <[email protected]>
Sent: Saturday, June 7, 2025 11:02 AM
To: Lana Negrete; Jesse Zwick; Caroline Torosis; Ellis Raskin; Natalya Zernitskaya; Dan Hall; Barry Snell
Cc: councilmtgitems; [email protected]; Armine Chaparyan; Rachel Kwok; Jibran Shermohammed; Gaby Ghermezi; Daniel Negari
Subject: Digital Displays at 301 and 1202 Third Street Promenade – Applicant Rep Letter Attachments: Santa Monica OBM Letter - 6.7.25.pdf; Attachment A - OBM Perspective on Questions for Council.pdf; Attachment B - Community Benefits Summary.pdf

EXTERNAL
Dear Mayor Negrete and Councilmembers,
Please see attached letter of support regarding Agenda Item 7-B for the proposed digital displays at 301 Arizona Avenue and 1202 Third Street Promenade, as well as two attachments outlining (a) our perspective on the thoughtful questions posed to Council for the June 10 hearing and (b) a summary of the public benefits we see in the project.

We are eager to partner with Daniel Negari and the City on these projects, and believe we can deliver a truly compelling digital platform at these two project sites, rich with art, city content and revenue generation for the city. We humbly ask for your support of these two development agreements on June 10, and we thank you for your time and consideration of this item. If you have any questions, please do not hesitate to reach out.

Thank you and have a great weekend all.

West Hollywood, CA 90069
June 7, 2025

VIA E-MAIL
Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401
Re:Digital Displays/Signs on Third Street Promenade Private Properties Agenda Item 7-B
Locations: 1202 Third Street Promenade and 301 Arizona Avenue DA Application Nos. 24ENT-0233 & 25ENT-0021
Dear Councilmembers:

We are writing in full support of the four Recommended Actions stated on page 1 of the Staff Report for the City Council’s Large Format Digital Signage Study Session, including most importantly that City Council authorize City staff to initiate development agreement negotiations for the digital displays proposed at 301 Arizona Avenue and 1202 Third Street Promenade. As the media company partnering with the property owner UNITED XYZ, LLC/Daniel Negari on the proposed digital signs, we would also like to provide our perspective for your consideration on the questions City Staff posed to the City Council. (See Attachment A for a full summary of answers to the questions raised.) The above-referenced development agreement applications propose installation of high-quality LED digital signs on the existing buildings at 301 Arizona Avenue and 1202 Third Street Promenade that provide meaningful benefits to the City. (See Attachment B for a full summary of benefits.) Among other things, the proposed development agreements would:
• generate substantial general fund revenue to the City on an expedient basis, including at least $1 million per sign the first of operation, and ongoing revenue sharing thereafter with minimum annual guarantees (or MAGs),
• enhance and enliven the economic environment of the Downtown including the Third Promenade and the new Promenade Entertainment Zone, during a time of need, • 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 (as well as advertising), • result in memorable and creative attractions for visitors and residents alike, • increase pedestrian activation, engagement and enjoyment, • ensure the digital displays are of the highest quality and complementary to the two buildings and their surroundings, and
• 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.

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2 We at Orange Barrel Media (OBM) are a leading national media company with substantial experience designing, operating, maintaining and curating signs of this type in many cities throughout the nation. OBM’s portfolio includes unique displays in top urban markets across the nation, including New York, Los Angeles, Atlanta, Houston, Miami and West Hollywood. We work closely with property owners and local municipalities to permit and develop advertising properties that the public finds fun, attractive and exciting. In each city, we deliver high-end, high-value projects like the ones before you on June 10, and we have experience across the country working with artists and arts collectives to curate interesting and contextual arts programs.

We have specifically designed and customized the entablature framework around these displays to complement the historic building at 1202 Third Street and to reflect the coastal character of Santa Monica at 301 Arizona Avenue. Through the development agreement process, our goal is to deliver the highest quality displays that the City of Santa Monica will be proud of.

We look forward to presenting our vision for the proposed digital displays at your June 10th Council meeting, and we hope to receive the City Council’s authorization at that time to proceed with development agreement negotiations with the City Staff. We have previously hosted a successful virtual community meeting about these two proposed signs and conducted outreach to various interested parties, stakeholders and artists and art collaboratives. Because the building at 1202 Third Street Promenade is a designated City Landmark, we have met with representatives of the Santa Monica Conservancy to share our concept and have collaborated with preservation architect Robert Chattel on the research and approach pertaining to this design.

Again, we ask that the City Council authorize City Staff to proceed with development agreement negotiations for these two properties. Thank you for your time and consideration. We look forward to discussion at the hearing.

Best regards,
Clay Collett
Senior Development Director
Orange Barrel Media, LLC

cc: Elaine Polacheck
Arminé Chaparyan
Rachel Kwok
Daniel Negari
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1 ATTACHMENT A
OBM’S PERSPECTIVE ON QUESTIONS FOR CITY COUNCIL
With respect to the eleven questions posed to the City Council in the Staff Report (pages 15-16), we ask for your consideration of the following:

1. What terms and conditions should the agreements contain (length, options for extensions, etc.)?
We’ve proposed a term of 55 years for each development agreement. This proposal reflects the very high upfront investment we (OBM and Daniel Negari) will be making to design, entitle, fabricate and install the signs – estimated to be approximately $4,000,000-$5,000,000 per sign based on the current proposed designs, plus the physical alterations to the buildings associated with the digital display installations. In this regard, other cities that allow for high-quality, custom signage designs like the ones proposed here have approved substantial development agreement terms, including West Hollywood which allows for 30-year development agreement terms. We appreciate your consideration of the importance of a longer development agreement term and ask that you direct City Staff to negotiate for a term length that reflects the investment being made by the applicant team to bring these signs to fruition. We note also that a short term will likely lead to a cumbersome reapplication process at the end of the term, which spends unnecessary city and staff resources. 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)?
Our proposed 20% share of gross revenues with a growing minimum annual guarantee as well as a $500,000/per sign bonus paid when the signs “go live” is a strong offer for digital displays that require no investment from the City and are located on private property where the sign company also must pay rent to the property owner as another share of gross revenue. Notably, in the first year of operations, the City will receive a minimum of $2,000,000 ($1,000,000/sign). Attachment B includes a summary of the proposed community benefit for each of the signs, including the minimum annual guarantees.

4. How should public art content be curated?
We support City Staff’s recommendation for a requirement that OBM coordinate with the City for professionally curated art content. Since our inception in 2004, OBM has been committed to developing media that supports the production and presentation of art. We believe art is a powerful form of expression that enriches communities and encourages meaningful dialogue. Our community engagement team is dedicated to developing key partnerships with internationally recognized and local artists, as well as museums, art institutions, and curators, to activate art in highly visible areas. We are committed to developing a unique, locally-minded arts program for display on the Item 7-B
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2 proposed signs, and we are excited by the opportunity to work with the City to ensure a diverse mix of voices are represented in the arts program.

While there are a variety of ways we can partner with the City on the public art component, one way it could work would be for the 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—and then Cultural Affairs staff could provide final approval of this public art plan. Overall, we’ve worked collaboratively with cities across the nation to deliver public art, and we are confident that we can work with City Staff on a process that works for Santa Monica and does not overburden City Staff’s workload.

5. As part of the community content benefit, should there be benefits for local businesses?
We certainly support displaying beneficial promotions of local businesses as part of the community content that will be displayed throughout the day on these signs.

Provided the City Council agrees, we look forward to working with City staff on how to best allocate the community content time between local business promotion, public art and other community content (e.g., civic announcements of public interest or importance and content promoting the City, including Downtown Santa Monica, the Third Street Promenade and things like slices of Santa Monica history).

6. What other community benefits should be considered? (e.g., streetscape enhancements, contributions to the Downtown Business Improvement District, etc.)
For 1202 Third Street Promenade (a City-designated landmark), the proposed development agreement includes a commitment that we will design and install an interpretive exhibit commemorating the history of the former J.C. Penney building, an officially designated City Landmark. We would work with our consultant Robert Chattel, the Santa Monica Conservancy and the Landmarks Commission and potentially an artist to design such a commemorative exhibit.

Although the question about allocation of City revenue from the signs is best answered by the City Council, OBM supports a portion of City revenue from Downtown digital displays to be allocated to DTSM, Inc. for reinvestment in the Promenade.

7. What is an appropriate occupancy threshold for the proposed buildings? In our opinion, the purpose of the occupancy threshold is to incentivize the property owner to continue activating the building with tenants after the digital signs are installed while acknowledging that some of the factors in keeping the building occupied are beyond the owner’s control (e.g., downturn in commercial retail and office leasing market). We’ve proposed an occupancy threshold that triggers a 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 Item 7-B
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3 consecutive months. Having these two prongs – focusing on both the ground floor activation and overall building occupancy – reasonably addresses the purpose of an occupancy threshold without being overly punitive on the property owner.

In our experience, the digital displays will assist with attracting and retaining commercial tenants, not only within the subject properties but also adjacent properties.

In this regard, we would like to highlight the letters of support for our proposed digital displays submitted by an owner of other properties on the Promenade and a long-time leasing broker.

8. Are the locations for the two proposed digital displays appropriate? Absolutely. When Daniel approached us, we looked at his inventory of Santa Monica properties. We specifically landed on selecting these two properties for the first digital displays for several reasons:
• Both properties are located on the Third Street Promenade, a walk street where the City has been strategically targeting for economic investment and activation.
• Both properties are corner properties with excellent visibility. • Both properties are located on the 1200 Block, which is northernmost block of the Promenade, and is the block which Council previously identified as an area in need of focused revitalization and vibrancy improvements.
• The 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, though the JCP logo no longer remains atop the circular tower.
• The display at 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 the south to avoid any light intrusion into the residences.

9. Should the City establish a guiding program/policy for future applications of digital displays?
This is a policy question for the City Council to address. That being said, we do think the Third Street Promenade is a great location for a pilot program for off-premises digital signs. If the Council decides to move forward with a program/policy, we urge the Council to continue processing our pending development agreement applications without delay. The Development Agreement applications for these two properties have already been filed (in November 2024 and January 2025), substantial filing fees have Item 7-B
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4 been paid, draft development agreements have been submitted as a starting point for negotiations, and the signs have been designed at a concept review level. Furthermore, in advance of the City Council’s hearing, we have hosted a community meeting and conducted community outreach to various interested parties, stakeholders and artists and art collaboratives.

In our experience with this type of high-profile signage across the country, we think it will be helpful to City Staff to have concrete proposals before them to help inform how broader proposed standards might apply and work or not work on various sites including sites with historic resources and sites with neighboring residential uses.

Finally, if the City decides to move forward with our proposals, substantial revenue to the City will be realized sooner.
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.)?
OBM supports ongoing maintenance requirements and a light standard, and we are confident we can work with staff to finalize clear standards in the development agreement. For example, we have proposed a nighttime luminance limit of 400 candelas per square meter and a daytime luminance limit of 6,000 candelas per square meter. We also will not display any content that could lead to driver distraction concerns, such as flashing or strobing content or scrolling text.

We also have proposed that 20% of the display time throughout the entire 24 hour day to be made available to the City for community or civic announcements of public interest or importance and content promoting the City, including Downtown Santa Monica and the Third Street Promenade.

We further support content restrictions and have proposed restrictions on any content containing (a) political advertisements designed to promote views of particular political groups or influence opinions of others on public policy issues; (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.

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1 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.

ATTACHMENT B
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2 Minimum Annual Guarantee (MAG) Per Sign
Year(s) 301 Arizona
Annual MAG Contribution
1202 Third Street
Promenade
Annual MAG Contribution
Total Annual MAG
Contribution
1 $1,000,000
($500,000 “go live bonus +
$500,000 MAG)
$1,000,000
($500,000 “go live bonus +
$500,000 MAG)
$2,000,000
($1,000,000 “go live bonus +
($1,000,000 MAG)
2 $750,000 $750,000 $1,500,000
3-4 $850,000/yr $850,000/yr $1,700,000/yr
5-9 $935,000/yr $935,000/yr $1,870,000/yr
10-14 $1,028,500/yr $1,028,500/yr $2,057,000/yr
15-19 $1,131,350/yr $1,131,350/yr $2,262,700/yr
20-24 $1,244,485/yr $1,244,485/yr $2,488,970/yr
25-29 $1,368,933.50/yr $1,368,933.50/yr $2,737,867/yr
30-34 $1,505,826.85 /yr $1,505,826.85/yr $3,011,653.70/yr 35-39 $1,656,409.54 /yr $1,656,409.54/yr $3,312,819.08/yr 40-44 $1,822,050.49 /yr $1,822,050.49/yr $3,644,100.98/yr 45-49 $2,004,255.54 /yr $2,004,255.54/yr $4,008,511.08/yr 50-55 $2,204,681.09/yr $2,204,681.09/yr $4,409,362.18/yr Item 7-B
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5 David Yakobson
From: Andrew Thomas <[email protected]>
Sent: Friday, June 6, 2025 4:15 PM
To: councilmtgitems
Subject: RE: June 10, 2025 Council Agenda Item 7B.4: Digital Advertising in the City of Santa Monica
Attachments: DTSM Inc Digital Advertising Position Letter 6.6.25.pdf

EXTERNAL
Dear Mayor Negrete, Mayor Pro Tem Torosis, and Honorable Council Members, On behalf of Downtown Santa Monica, Inc. (DTSM, Inc.) Board of Directors, I am writing to share our position on digital advertising in Downtown Santa Monica, ahead of your upcoming discussion on this topic scheduled for the June 10, 2025, Council meeting.

At its meeting on May 20, 2025, the DTSM, Inc. Board revisited the subject of digital signage and, following a comprehensive discussion, reaffirmed its position from April 25, 2024. The Board recommends the City of Santa Monica develop a district-wide digital signage plan and commit to reinvesting related advertising revenue directly into Downtown, including a meaningful allocation for DTSM, Inc.

Board members emphasized the need for a cohesive strategy to ensure that any future digital signage is implemented thoughtfully and responsibly. This approach would help ensure that any signage introduced is visually appropriate, high-quality, and consistent with Santa Monica's distinctive character.

Thank you for your ongoing partnership and leadership.

Respectfully,
Andrew Thomas, LPM
Chief Executive Officer
Downtown Santa Monica, Inc.
1351 Third Street Promenade, Ste. 201
Santa Monica, CA 90401
310.393.8355 (Office)
www.DowntownSM.com
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Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
1351 Third Street Promenade, Suite 201, Santa Monica, CA I 310.393.8355 I [email protected] Santa Monica City Council
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
June 6, 2025
RE: June 10, 2025 Council Agenda Item 7B.4: Digital Advertising in the City of Santa Monica Dear Mayor Negrete, Mayor Pro Tem Torosis, and Honorable Council Members, On behalf of Downtown Santa Monica, Inc. (DTSM, Inc.) Board of Directors, I am writing to share our position on digital advertising in Downtown Santa Monica, ahead of your upcoming discussion on this topic scheduled for the June 10, 2025, Council meeting.

Thank you for your ongoing partnership and leadership.

Respectfully,
Andrew Thomas
Chief Executive Officer
Downtown Santa Monica, Inc.

CC: DTSM, Inc. Board of Directors
Interim City Manager Elaine Polachek
Community Development Director Arminé Chaparyan
Economic Development Manager Jennifer Taylor
Planning Manager Jing Yeo
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
6 David Yakobson
From: Daniel Negari <[email protected]>
Sent: Friday, June 6, 2025 3:35 PM
To: Lana Negrete; Jesse Zwick; Caroline Torosis; Ellis Raskin; Natalya Zernitskaya; Dan Hall; Barry Snell
Cc: councilmtgitems; Armine Chaparyan; Rachel Kwok
Subject: Re: Digital Displays at 301 and 1202 Third Street Promenade – Applicant Letter Attachments: Community Benefits Summary DA Applications 2025.06.05.pdf

EXTERNAL
Including the attached community benefits summary enclosed.

On Fri, Jun 6, 2025 at 3:29 PM Daniel Negari <[email protected]> wrote:

Dear Mayor Negrete and Councilmembers,
Attached is a letter of support regarding Agenda Item 7-B for the proposed digital displays at 301 Arizona Avenue and 1202 Third Street Promenade.

As a lifelong Santa Monican and the largest property owner on the Promenade, I’m deeply committed to revitalizing the area and believe this initiative is a critical step toward that goal. I hope you will consider the points outlined and authorize staff to move forward with development agreement negotiations.

Please don’t hesitate to reach out with any questions.

Best regards,
Daniel Negari

UNITED XYZ, LLC
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
1 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.

Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
2 Minimum Annual Guarantee (MAG) Per Sign
Year(s) 301 Arizona
Annual MAG Contribution
1202 Third Street
Promenade
Annual MAG Contribution
Total Annual MAG
Contribution
1 $1,000,000
($500,000 “go live bonus +
$500,000 MAG)
$1,000,000
($500,000 “go live bonus +
$500,000 MAG)
$2,000,000
($1,000,000 “go live bonus +
($1,000,000 MAG)
2 $750,000 $750,000 $1,500,000
3-4 $850,000/yr $850,000/yr $1,700,000/yr
5-9 $935,000/yr $935,000/yr $1,870,000/yr
10-14 $1,028,500/yr $1,028,500/yr $2,057,000/yr
15-19 $1,131,350/yr $1,131,350/yr $2,262,700/yr
20-24 $1,244,485/yr $1,244,485/yr $2,488,970/yr
25-29 $1,368,933.50/yr $1,368,933.50/yr $2,737,867/yr
30-34 $1,505,826.85 /yr $1,505,826.85/yr $3,011,653.70/yr 35-39 $1,656,409.54 /yr $1,656,409.54/yr $3,312,819.08/yr 40-44 $1,822,050.49 /yr $1,822,050.49/yr $3,644,100.98/yr 45-49 $2,004,255.54 /yr $2,004,255.54/yr $4,008,511.08/yr 50-55 $2,204,681.09/yr $2,204,681.09/yr $4,409,362.18/yr Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
7 David Yakobson
From: Daniel Negari <[email protected]>
Sent: Friday, June 6, 2025 3:29 PM
To: Lana Negrete; Jesse Zwick; Caroline Torosis; Ellis Raskin; Natalya Zernitskaya; Dan Hall; Barry Snell
Cc: councilmtgitems; Armine Chaparyan; Rachel Kwok
Subject: Digital Displays at 301 and 1202 Third Street Promenade – Applicant Letter Attachments: Councilmembers Letter from UNITED XYZ.pdf; Councilmembers Letter from UNITED XYZ 2025.06.06.docx

EXTERNAL
Dear Mayor Negrete and Councilmembers,
Attached is a letter of support regarding Agenda Item 7-B for the proposed digital displays at 301 Arizona Avenue and 1202 Third Street Promenade.

Please don’t hesitate to reach out with any questions.

Best regards,
Daniel Negari

UNITED XYZ, LLC
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

UNITED XYZ, LLC
2800 Olympic Boulevard, #1
Santa Monica, CA 90404
June 6, 2025

VIA EMAIL
Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401
Re: Proposed Digital Displays/Signs at 301 Arizona Avenue and 1202 Third Street Promenade (24ENT-0233 and 25ENT-0021)
Agenda Item 7-B – Support
Dear Mayor Negrete and Councilmembers:

My name is Daniel Negari, I am the founder and CEO of XYZ. I was born in Santa Monica and have been in the area for most of my life. Over the past several years, I’ve invested more than $100 million into revitalizing Downtown Santa Monica and the Third Street Promenade — a place I deeply care about and believe in. I’m proud to now be the largest property owner on the Promenade, with even more longterm investment planned.

As the owner of the properties located at 301 Arizona (northeast corner of Third Street Promenade and Arizona) and 1202 Third Street Promenade (southwest corner of Third Street Promenade and Wilshire), and the applicant for the digital displays proposed at these properties. I respectfully urge you to authorize City Staff to move forward with development agreement negotiations for the proposed digital displays as recommended by City Staff. We look forward to obtaining your feedback, as well as your authorization to proceed.

As we all know, the Promenade — especially the 1200 block — is in urgent need of reinvention. The Council’s recent creation of the Entertainment Zone was a critical step forward. These digital displays are the next. They will generate much needed revenue the City in year one, with a long-term revenue platform to support public safety, enhance the Entertainment Zone, provide vital resources to DTSM, and improve City services.

Through another property owner that has digital displays on his property in West Hollywood, I was fortunate to connect with Orange Barrel Media (OBM) and learn about their custom digital displays. OBM creates value for property owners, municipalities, and the general public by designing and operating iconic out of home media displays that add to the quality and character of urban places. They pride themselves on incorporating ongoing advances in design and technology of these displays; and they continually generate a diverse and captivating programming mix of commercial messages, public art, and community content. I was particularly impressed with OBM’s focus on architecturally distinctive signs and prior experience with designing and installing digital displays on historic buildings. As an owner of over 10 landmarks in the Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Santa Monica City Council
June 6, 2025

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city, this is one of the most important points for me as a preservation minded steward of these assets.

After learning more about the revenue generation potential of these signs and OBM’s public art program, I reviewed my real estate portfolio with OBM and we identified 301 Arizona (Footlocker building) and 1202 Third Street Promenade (John Reed Fitness building, a City-designated landmark) as the top two locations for the digital displays.

Orange Barrel Media has embraced the opportunity to work in this marketplace and has designed creative entablature to frame these two digital displays. On the historic 1202 Third Street site, Orange Barrel’s design team has collaborated with preservation architect Robert Chattel. And, on the 301 Arizona site, they’ve intentionally designed and positioned the sign to avoid impacts on residential tenants living across Arizona Avenue.

For each sign, we are proposing revenue sharing with the City, starting with a minimum of $1,000,000 in year 1 of operations ($500,000 “go live” bonus and $500,000 minimum annual guarantee to the City). That means the City will receive at least $2,000,000 in the first year both signs are installed (assuming they are installed in the same year), and ongoing revenue sharing to the City thereafter. I understand that DTSM Inc.’s Board recently voted that a portion of City revenue from Downtown digital displays be allocated to DTSM, Inc. for reinvestment in Downtown. We are supportive of this but understand the allocation of revenue is a decision for the City Council.

The displays will also include other community benefits such as incorporation of public art, community announcements, and public service announcements and alerts that will be interspersed throughout the commercial advertisement loop. A list of the key financial and community benefits is enclosed with this letter.

I realize that the concept of off-premises advertising on private property, particularly in the digital format, is a new concept to Santa Monica. Our development agreements propose creative, captivating, thoughtful, rewarding and proven approaches to this opportunity. The signs will provide about 800 to 850 sf of digital display area each. Other than the installation of these digital displays on the two existing buildings, no new development is proposed.

We filed these development agreement applications for the digital displays in November 2024 (301 Arizona) and January 2025 (1202 Third Street Promenade) and appreciate your direction to move forward with negotiations.

Approval at this float-up hearing represents an important first step in a public review process. Multiple key milestones still lie ahead, including Development Agreement negotiations, City Council approval, design review, Landmarks Commission Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Santa Monica City Council
June 6, 2025

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consideration, Coastal Commission approval, and the full plan check and permitting process. Timely action is critical, as delays could cause us to miss alignment with major upcoming events such as the World Cup, Super Bowl, and Olympics – opportunities that will not return anytime soon.

I hope the City Council will agree that the time is ripe for the City to move forward with expeditiously processing these two development agreements.

Sincerely,
Daniel Negari
Property Owner and Founder & CEO

UNITED XYZ, LLC
cc: Elaine Polacheck
Arminé Chaparyan
Rachel Kwok
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025

UNITED XYZ, LLC
2800 Olympic Boulevard, #1
Santa Monica, CA 90404
June 6, 2025

Page 2 ends

city, this is one of the most important points for me as a preservation minded steward of these assets.

Page 3 ends

I hope the City Council will agree that the time is ripe for the City to move forward with expeditiously processing these two development agreements.

Sincerely,
Daniel Negari
Property Owner and Founder & CEO

UNITED XYZ, LLC
cc: Elaine Polacheck
Arminé Chaparyan
Rachel Kwok
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
8 David Yakobson
From: Michael Bezerra <[email protected]>
Sent: Tuesday, June 3, 2025 1:58 PM
To: Barry Snell; Ellis Raskin; Dan Hall; Natalya Zernitskaya; Jesse Zwick; Caroline Torosis; Lana Negrete; councilmtgitems
Cc: Chandler Bryant
Subject: Third Street Promenade Digital Display
Attachments: Santa Monica Support Letter - Promenade Tenants.pdf

EXTERNAL
Hello Santa Monica City Council Members,
I hope this message finds you well.

Please find attached a letter expressing my support for the proposed digital display on the Third Street Promenade. I believe this addition will contribute positively to the vibrancy and economic vitality of the area.

Thank you for your time and consideration.

Regards,
Michael Bezerra
Michael Bezerra
Sunset Restaurant Management Group
Office: 323.822.0817 | Fax: 323.822.0871 | Cell: 310.666.6250 Email: [email protected]
Cabo Cantina | Fiesta Cantina | Baja Beach Cafe | Jameson’s Irish Pub | Baja Beach Bar | PB Cantina | Jameson’s Pub Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Michael Bezerra
8272 Sunset Blvd. Suite D. West Hollywood, CA 90046
[email protected]
June 3, 2025
Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401
Re: Digital Display Development Agreements
Dear Members of the Santa Monica City Council,
On behalf of Cabo Cantina, I am writing to express our strong support for the proposed digital displays at 301 Arizona Ave (25ENT-0021) and 1202 Third Street Promenade (25ENT-0021). As a proud tenant of this iconic location, we are deeply committed to the continued vitality of the Promenade and the long-term economic health of the community it anchors.

The 1200 block is urgently in need of revitalization. In today’s evolving retail environment, visibility and engagement are essential. Like many businesses in the area, we face the challenge of maintaining foot traffic. The proposed digital display provides a creative solution that reenergizes the block, enhances the pedestrian experience, and drives meaningful economic activity, allowing us and our neighbors to thrive.

With increased traffic and activity in the area, the digital displays reinvigorate the public realm and support the City’s efforts to ensure the Promenade remains a vibrant, safe, and welcoming destination for residents and visitors alike. Additionally, the revenue generated by the displays creates a new stream of funding that can be reinvested directly into essential city services and programs.

We urge you to approve this proposal and help unlock its potential benefits for the entire community. Thank you for your time and thoughtful consideration. Please reach out if additional information is needed.

Sincerely,
Michael Bezerra
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
1 David Yakobson
From: Sheyda Semnani <[email protected]>
Sent: Wednesday, June 4, 2025 10:38 AM
To: councilmtgitems; Lana Negrete; Caroline Torosis; Jesse Zwick; Natalya Zernitskaya; Dan Hall; Ellis Raskin; Barry Snell
Cc: Jeff Appel
Subject: 301 Arizona & 1202 3rd - Digital Display Development Agreements Attachments: Support Letter (Digital Billboard).pdf

EXTERNAL
Dear Mayor and Council Members,
Please see aƩached leƩer in support of the digital billboard on behalf of United El Segundo dba The Now.

Please feel free to reach out with any quesƟons.

Best,
Sheyda Semnani| In House Counsel

THE NOW
Office Tel: (855) 300-2708 ext. 114
Direct: (310) 208-9929
9815 National Blvd.

Los Angeles, CA 90034
[email protected]
https://www.thenow.la/
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
June 3, 2025
Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401
Re: Digital Display Development Agreements
Dear Members of the Santa Monica City Council,
On behalf of United El Segundo, Inc, I am writing to express our strong support for the proposed digital displays at 301 Arizona Ave (25ENT-0021) and 1202 Third Street Promenade (25ENT-0021). As a proud landlord, we are deeply committed to the continued vitality of the iconic Promenade and the long-term economic health of the community it anchors.

We urge you to approve this proposal and help unlock its potential benefits for the entire community.

Thank you for your time and thoughtful consideration. Please reach out if additional information is needed.

Sincerely,
Jeff Appel
CEO/Owner
[email protected]
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