City Council
Report
City Council Meeting: August 11, 2026
Agenda Item: 11.C
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To: Mayor and City Council
From: Oliver Chi, City Manager, Office of Economic Development Subject: Authorize the City Manager to Negotiate and Execute an Exclusive Negotiation Agreement with Goldenvoice|AEG Presents, LLC Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to Negotiate and Execute an Exclusive Negotiation Agreement with Goldenvoice|AEG Presents, LLC to evaluate the potential redevelopment and operation of the Santa Monica Civic Auditorium located at 1855 Main Street (APN 4290-013-901).
Summary
On July 14, 2026, the City Council authorized the City Manager to negotiate an Exclusive Negotiation Agreement (ENA) with AEG Presents LLC (“AEG”) to evaluate the feasibility of redeveloping and operating the Civic Auditorium (“Civic”) as a live entertainment venue. This report outlines the purpose and scope of the proposed ENA, the due diligence activities to be undertaken, and the anticipated negotiation process.
The ENA provides a framework for AEG to apply its expertise as a leading live entertainment promoter and venue operator to evaluate the Civic's market potential, operational needs, redevelopment requirements, and financial feasibility. This analysis will complement and help inform the City's Highest and Best Use (HBU) Analysis by providing an industry perspective on whether the Civic can be successfully rehabilitated and operated as a sustainable entertainment venue. The ENA does not approve a redevelopment project, grant development rights, or obligate either party to enter into a lease, Disposition and Development Agreement (DDA), or other binding agreement. 2 of 4
Discussion
Following the conclusion of exclusive negotiations with Revitalization Partners Group (RPG), the City engaged efforts to coordinate a highest and best use analysis to evaluate the Civic’s long-term redevelopment potential under a range of development scenarios. Concurrently, the City partnered with Goldenvoice (a subsidiary of AEG Presents) to plan and implement the Ocean Way Festival, providing staff with the opportunity to collaborate with one of the region's premier live entertainment producers. Through that collaboration, the City and approached representatives from AEG to gauge their interest in evaluating the Civic as a potential live entertainment venue.
Drawing on its experience developing and operating major concert venues, AEG would, through the proposed ENA, evaluate whether the Civic can be successfully redeveloped and operated as a live entertainment venue. AEG’s assessment of market demand, operational needs, redevelopment costs, and financial feasibility would complement the City’s existing analysis of the Civic site by providing an experienced operator’s perspective on the Civic’s redevelopment potential. Together, these efforts would help the City determine whether the Civic represents a viable, financially sustainable opportunity that advances the City's economic development and community objectives.
Surplus Land Act
On November 7, 2023, the City received certification from the California Department of Housing and Community Development (HCD) confirming compliance with the Surplus Land Act (SLA) and granting provisional authorization to proceed with the disposition of the Civic pursuant to Government Code section 54230.5. Having satisfied the requirements of the SLA, the City may proceed with evaluating the property’s long-term disposition, including entering into an ENA with prospective development partner(s).
Exclusive Negotiation Agreement
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The proposed ENA establishes an initial six-month period for the City and AEG to evaluate the Civic’s potential as a live entertainment venue. During this time, AEG will retain technical experts and consultants to assess the existing conditions, identify structural and building improvements, evaluate preliminary redevelopment concepts, estimate redevelopment and operating costs, evaluate market demand and programming opportunities, identify potential financing strategies, and determine the project's overall financial feasibility. The ENA provides that the parties may extend the ENA for up two 90-day periods.
The ENA does not commit the City or AEG to proceed with a redevelopment project.
Instead, it provides an opportunity to determine whether redevelopment of the Civic is technically and financially feasible, while complementing the City's review of the site with an experienced venue operator's perspective. At the conclusion of the ENA, AEG will present its findings, including a recommended project scope, implementation strategy, financial approach, and preliminary development schedule. These findings will help inform the City’s consideration of the Civic’s long-term redevelopment potential and whether to pursue a future Disposition and Development Agreement (DDA) or other implementing agreement.
During the term of the ENA, the City will identify what analyses may be required to evaluate AEG’s proposed project, if any. AEG has agreed to cover the costs of any analyses reasonably required by the City.
Environmental Review
The proposed ENA is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), the common-sense exemption, because it can be seen with certainty that there is no possibility the activity may have a significant effect on the environment. The ENA authorizes only due diligence and negotiations and does not approve or authorize any physical improvements, construction, or development at the Civic Auditorium. Any future redevelopment proposal would be subject to all applicable environmental review requirements prior to approval.
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Past Council Actions
Meeting Date Description
10/11/2022
(Attachment A)
Adoption of Resolution Declaring Surplus Properties
10/25/2025
(Attachment B)
Approval of First Modification to Exclusive Negotiation Agreement with Revitalization Partners Group, LLC for the Civic Center Auditorium Renovation, Programming and
Operation
Financial Impacts and Budget Actions
As part of the ENA phase, AEG will reimburse the City for any staff, consultant, and legal costs via a Cost Recovery Deposit. The funds will be held in a deposit account for the Civic Center Auditorium project, 01.221060. As expenses are incurred, the deposit will be reduced, and the revenue will be recognized and recorded in account 01700014.415490. Budget adjustments would be incorporated in future budget cycles, as needed.
Prepared By: Nia Tang, Economic Development Administrator Approved Forwarded to Council
Attachments:
A. Attachment A - Adoption of Resolution Declaring Surplus Properties (Web Link) B. Attachment C - HCD Clearance Letter (11.7.2023)
C. Attachment B - Approval of First Modification to Exclusive Negotiation Agreement with Revitalization Partners Group, LLC for the Civic Center Auditorium Renovation, Programming & Operation (Web Link)
D. Levine Act Disclosure Form - AEG
E. OAKS INITIATIVE FORM - AEG
F. Written Comments
G. PowerPoint Presentation