City Council
Report
City Council Meeting: June 24, 2025
Agenda Item: 4.A
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To: Mayor and City Council
From: Elaine Polachek, Interim City Manager, City Manager's Office Subject: Approval of an Exclusive Negotiating Agreement with Hochsitz to Negotiate Terms of a Potential License Agreement for Olympics-Related Activations in Lot 4 South and Crescent Bay Park
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Statutory Exemption pursuant to Section 15272 (Olympics Games) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Authorize the City Manager to negotiate and execute an Exclusive Negotiating Agreement (ENA) with LOIDL LLC dba Hochsitz to explore the development of a temporary Olympic-related activation at Crescent Bay Park and Beach Parking Lot 4 South during the 2028 Summer Olympic Games.
Summary
In advance of the 2028 Summer Olympic Games, staff recommends entering into an Exclusive Negotiating Agreement (ENA) with Hochsitz to evaluate the feasibility of licensing a City-owned site for a temporary project that would include an International Olympic Committee (IOC) satellite broadcast center, a country hospitality house, and a brand hospitality house. This project represents a once-in-a-generation opportunity to showcase Santa Monica to a global audience through live international broadcasts, high-profile hospitality activations, and curated cultural programming. Such visibility has the potential to elevate the City’s global profile, generate increased tourism, and drive substantial economic activity for local businesses. If an agreement is reached, staff would negotiate provisions requiring event staff and crew to stay in Santa Monica hotels and prioritize the use of local restaurants, retail businesses, and services, ensuring that a significant share of the economic benefit remains within our community. 2 of 3
Discussion
The City received a proposal from Hochsitz to temporarily license portions of Crescent Bay Park and Beach Parking Lot 4 South to develop three structures for Olympicrelated activations. These structures would serve as a satellite IOC broadcast center and two country or brand hospitality houses during the 2028 Summer Olympic Games.
These activations would attract international media, government dignitaries, sponsors, and Olympic stakeholders to Santa Monica, generating global exposure for our beachfront and iconic Pier.
During the Olympics, country and brand hospitality houses are dedicated spaces hosted by national Olympic committees, governments, or major brands to celebrate culture, foster international relations, and engage with athletes, dignitaries, media, and the public. Country houses typically showcase national pride through food, music, art, and athlete appearances, serving as a hub for fans and officials to gather and experience the spirit of the Games. Brand houses offer companies a high-profile platform to activate their sponsorships through immersive experiences, product showcases, and curated events that draw global attention. These venues attract significant foot traffic, generate international media coverage, and contribute to the local economy through tourism, hospitality, and event-related spending.
Staff reviewed Hochsitz’s proposal and found that the potential benefits merit further exploration. Hochsitz has a proven track record of delivering successful Olympic hospitality venues and is prepared to fund the project without City subsidies. Under the ENA, Hochsitz would deposit $50,000 to cover the City's cost of negotiation and due diligence. The ENA (Attachment A) grants Hochsitz exclusive negotiation rights for 180 days, with the option to extend twice for 90 days upon mutual agreement.
While negotiating terms, the City would seek provisions in the future license agreement that direct substantial economic benefit to Santa Monica, including local hire, requirements that Hochsitz secure hotel accommodations for event staff and crew within Santa Monica, and prioritize engagement with local restaurants, caterers, and vendors. 3 of 3
The final terms of any license agreement, including rent, design approval, and community benefits, would be presented to Council for approval upon completion of negotiations.
Environmental Review
Staff has performed a preliminary environmental assessment of this project and determined that it falls within the Statutory Exemption set forth in CEQA Guidelines, section 15272 (Olympic Games), which exempts activities associated with the Olympic Games authorized by the International Olympic Committee. Therefore, this project is exempt from the California Environmental Quality Act (CEQA).
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Hochsitz would provide a $50,000 deposit to cover the City’s costs associated with evaluating the proposal and negotiating the license agreement.
Staff would return to Council with the terms of the license agreement and related budget actions in the future.
Prepared By: Melissa Spagnuolo, Community Partnerships Manager Approved Forwarded to Council
Attachments:
A. Exclusive Negotiation Agreement - LOIDL LLC (Draft)