May 8, 2001 Santa
Monica, California
TO: Mayor
and City Council
FROM: City
Staff
SUBJECT: Recommendation
from the Arts Commission Regarding the Means Testing of Artist Incomes for
Artist Day-Studio Space at Santa Monica Airport
This
report recounts the action taken at the April 23, 2001 meeting of the Santa
Monica Arts Commission in response to the City Council’s April 10, 2001 request
for the Arts Commission’s further review of the feasibility of means testing of
artist incomes for leasing of artist day-studio space at the Santa Monica
Airport.
Background
On December 5, 2000, the City Council
approved guidelines for the leasing of non-aviation
City property at the Santa Monica
Airport which included the rental of a building for use
as
artist day-studios at below market rates.
On April 10, 2001, the City Council considered a request from the Arts
Commission that it re-examine the criteria by which artists would be selected
as tenants for the day-studios. In a
letter dated March 26, 2001, the Arts Commission recommended to the City
Council that an income maximum be established for artist applicants that would
correspond with 80% of the Los Angeles County median income. The City Council supported the intent of the
Commission’s request and directed staff to provide information on the income
levels of existing tenants at the Santa Monica Fine Arts Studios (the proposed
master lessee of the day-studio space at 3026 Airport Avenue) and present this
information to the Arts Commission. The
Council requested that the Commission consider the feasibility of establishing
a percentage of tenants in the 3026 Airport Avenue space to be subject to the
means testing requirement.
Discussion
At
its meeting on April 16, 2001, the Arts Commission discussed the City Council
action. Staff explained to the Commission that means testing of individual
existing tenants at Santa Monica Fine Arts Studios has not been done in the
past and was not a condition of tenancy and therefore income level information
was not available. At this meeting
there was considerable discussion concerning the Los Angeles County median
income levels and whether the Commission’s original request was meant to apply
to the master lessee space at 3026 Airport Avenue.
It
was determined that the Commission’s Artist Live/Work/Studio Committee should
hold a special meeting to discuss these issues further and make a
recommendation to the Commission. That
meeting took place on April 23, 2001 and was followed by a special meeting of
the Arts Commission. The following summarizes the action taken at the April 23,
2001 special meeting of the Santa Monica Arts Commission:
A.
Masterleased Hangar, 3026 Airport Avenue – Santa Monica Fine Art Studios
A motion was made to
grandparent all current Santa Monica Fine Art Studio (SMFAS) artists into the
new SMFAS programs at 3026 Airport Avenue without a means test provided that
new program opportunities be restricted to artists meeting means test. The
motion passed.
A motion was made to implement
a means test for future tenants of the SMFAS based on the Housing and Urban
Development (HUD) Schedule using 175% of the Los Angeles-Long Beach SMSA Median
Family Income to be applied only at the beginning of occupancy. The motion passed. (See Attachment A)
A motion was made that the
means test be applied at the time of their initial tenancy to all
non-grandparented tenants of SMFAS and future tenants until 50% of all
participants have qualified income levels.
The motion passed.
A motion was made that SMFAS
give priority to artists who live and/or work
in Santa Monica or provide evidence of being displaced from previous
studio spaces in Santa Monica. The
motion passed.
B.
Other Artist Day-Studios at Airport Operated by Economic Development
Division
A motion was made that a means
test of 200% of the HUD schedule of Los Angeles-Long Beach SMSA Median Family
Income be applied at the beginning of tenancy for all new artists leasing
spaces at the Santa Monica Airport directly from the City and that priority be
given to artists who live and/or work
in Santa Monica or provide evidence of being displaced from previous
studio spaces in Santa Monica. The
motion passed. (See Attachment A)
The
motions adopted by the Arts Commission endeavor to make City subsidized spaces
at the Santa Monica Airport available to local artists and artists of moderate
means. At the same time, the limits on
income suggested by the Commission allow for a wide range of artists to make
use of these facilities. The Commission
raised the income levels from the previous recommendations for two reasons;
first, to account for the significant cost of art materials and production
without using a net income approach that is difficult to audit; and second, to
evaluate gross household income rather than the individual income of the artist
which prevents the manipulation of the rules by submitting individual tax
returns. The income levels have been set
higher for tenants in the City-operated spaces due to the fact that those artists will be required to pay
directly for insurance, utilities, improvements, maintenance and other costs of
tenancy. In contrast, in the SMFAS space, utilities and other
costs of tenancy will be paid by the
master lease holder.
Budget/Financial Impact
These
recommendations contain no financial impact on the City.
Recommendations:
The
Santa Monica Arts Commission respectfully requests that the City Council adopt
the means testing as recommended by the Commission and direct staff to
incorporate these recommendations into the lease with Santa Monica Fine Arts
Studios and apply these conditions to applicants for City-managed airport
day-studio spaces.
Prepared
by: Barbara
Stinchfield, Director, Community and Cultural Services
Jeff
Mathieu, Director, Resource Management
Maria Luisa de
Herrera, Cultural Affairs Manager
Mark Richter,
Economic Development Manager
Hamp Simmons,
Cultural Affairs Coordinator