Civic
Auditorium
Exclusive Negotiation
Agreement
Administrative Item: 11.C.
City Council Meeting
August 11, 2026
Item 11-C
August 11, 2026
Item 11-C
August 11, 2026
Background
• City’s longstanding interest in viable public-private partnership for Civic Auditorium site • Civic has been closed to the public since June 2013
• The City has solicited proposals on three separate occasions to reactivate the Civic Auditorium during the past 17+ years
• March 2009, December 2017, and December 2023
• Each of those efforts ended without identification of a viable pathway to revitalize the Civic Auditorium • ENA negotiations with Revitalization Partners Group (RPG) concluded October 14, 2025 • At the conclusion of RPG’s ENA, staff was directed to explore alternative options for the Civic • Subsequently, staff has 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 ENA Background
Item 11-C
August 11, 2026
Item 11-C
August 11, 2026
Background
• City discusses evaluation of the Civic site with AEG
• Through the City’s work with Goldenvoice on the Ocean Way Festival, staff identified contacts at AEG and approached representatives to gauge their interest in evaluating the Civic as a potential live entertainment venue
• AEG Presents is the world’s second-largest presenter of live music and entertainment events • Through the ENA period, AEG would perform an assessment of market demand, operational needs, redevelopment costs, and financial feasibility to help inform the City’s analysis of the Civic • AEG’s assessment would complement the City’s existing analysis of the Civic site by providing an experienced operator’s perspective on the Civic’s redevelopment potential • 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 ENA Background
Item 11-C
August 11, 2026
Item 11-C
August 11, 2026
• ENA Negotiations with AEG Authorized on July 14, 2026 • Staff was authorized to negotiate an ENA with AEG to evaluate the feasibility of redeveloping and operating the Civic as a live entertainment venue
• Key ENA terms
• Six-month period for City and AEG to evaluate Civic’s potential as a live entertainment venue • Up to two 90-day extensions, based on mutual agreement • AEG would retain technical experts and consultants to assess:
• Existing conditions and identify structural and building improvements • Evaluate preliminary redevelopment concepts
• Estimate redevelopment and operating costs
• Evaluate market demand and programming opportunities
• Identify potential financing strategies
• Determine the project’s overall financial feasibility • AEG will present its findings to help inform the City’s consideration of the Civic’s long-term redevelopment potential and feasibility to continue as a live entertainment venue
ENA Framework
Item 11-C
August 11, 2026
Item 11-C
August 11, 2026
• City Received HCD Certification on November 7, 2023
• Having completed the SLA requirements, the City may proceed with evaluating the Civic’s long-term disposition, including entering into an ENA with any entity of the City Council’s choosing • Of note, the proposed ENA with AEG does not constitute a disposition of property or commit the City to a future transaction
• Instead, the ENA simply provides an opportunity to evaluate whether redevelopment of the Civic is technically and financially feasible while complementing the City’s analysis with the expertise of an experienced venue operator • Further, the City Charter, Municipal Code, and Purchasing Policy do not prescribe an express competitive solicitation process for the disposition of City-owned real property through a license, lease, or sale
• Accordingly, following compliance with the SLA, the City may negotiate an ENA with AEG without conducting a separate competitive solicitation for the ENA
• The Civic site has also proven to be a challenging venue to revitalize, as evidenced by our three prior assessment efforts over the past 17+ years
• AEG – which owns & operates over 100+ entertainment venues and promotes over 12K shows annually – brings a genuinely unique perspective with respect to identifying the viability of the Civic as a live entertainment hub Surplus Land Act
Item 11-C
August 11, 2026
Item 11-C
August 11, 2026
Background
• Staff recommends that the City Council take the following actions:
• Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines.
• Authorize the City Manager to Negotiate and Execute an Exclusive Negotiation Agreement with AEG Presents, LLC to evaluate the potential redevelopment and operation of the Santa Monica Civic Auditorium.
Recommendations
Item 11-C
August 11, 2026
Item 11-C
August 11, 2026
Questions? Background
Item 11-C
August 11, 2026
Item 11-C
August 11, 2026