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HomeMy WebLinkAbout10/04/1988, C-12 - CONSIDERATION OF AUTHORIZING A GRANT APPLICATION FOR ACQUISITION AND RESTORATION OF THE FREMONT THEATER. CI-W Or Sa►n LUIS OBISPO METrVJ29TF COUNCIL AGENDA REPORT 1=2117:2 FROM: Toby Ross Administration SUBJECT: Consideration of authorizing a grant application for acquisition and restoration of the Fremont Theater. CAO RECOMMENDATION: Adopt a resolution authorizing a grant application for acquisition and restoration of the Fremont Theater and appropriation of $5,000 to prepare the application. BACKGROUND: Auditorium Development In 1987, the City Council considered an "Implementation Program for Performing Arts Auditoriums" which acknowledged the need for two community theaters: 1. A 1,500 seat auditorium to be located on the Cal Poly campus as a joint venture between the City, Cal Poly and the Foundation for the Performing Arts. 2. A 300 seat auditorium in one of several potential sites, including the Fremont Theater. The Council directed 1) negotiations on the joint venture with_Cal Poly and the Foundation 2) evaluation of the feasibility of using the Fremont Theater. The large auditorium has been included in the State University Capital Improvement Plan and conceptual agreement between the sponsors has been reached. Progress on the small auditorium project has been limited to preliminary discussions with the owners of the Fremont Theater. The study and design phases of the auditorium projects are in the current Capital Improvement Plan (attached) . Historical Preservation Grant The California Wildlife, Coastal, and Park Land Conservation Act of 1988 earmarks $11 ,000,000 for historical preservation projects. All cities and counties in California are eligible to submit grant applications for funding. A wide range of preservation and rehabilitation activities as well as the acquisition of historical properties are eligible for grant city of San WI s OBISPO IN COUNCIL AGENDA REPORT Application for acquisition and restoration of the Fremont Theater Page 2 funding. On September 1 , 1988 the Cultural Heritage Committee (CHC) discussed possible projects. The committee was interested in pursuing the restoration of the Rodriguez Adobe located north of Islay Hill and east of Broad Street and discussion was continued to October 6, 1988. In addition to the Rodriguez Adobe, staff has also identified the restoration of the railroad water tank east of the railroad tracks at Railroad Square as a potential project. This property is owned by the city and some rehabilitation studies have been completed. The planning staff has begun to compile information needed to complete an application for the Rodriguez Adobe. Preliminary contacts have been made with the property owners. Also, last year the CHC collected information about the structure that will be useful in demonstrating that the structure meets national register criteria -- a requirement of any grant application. The Public Works, Recreation, and Fire Departments are reviewing information about the grant program and may recommend projects that are eligible for Proposition 70 funding. According to the State Office of Historic Preservation, a city may submit multiple applications -- one for each activity. There is no penalty for submitting multiple applications. The ability of staff to prepare multiple applications is limited by time (December 1 is the deadline) and the amount of staff work required. More than one or two applications may require supplemental staffing or consultant assistance, depending on the complexity of the projects. It may be necessary to establish priorities for preparing applications. Following recent discussions with the property owner, Councilwoman Rappa requested that the City seek a grant for the acquisition and preservation of the Fremont Theater. Recognizing the limitation of staff time and the specialized nature of the historical grant process, she recommends that a consultant be used to prepare the application. Analysis Successful implementation of a small theater project is dependent on a new funding source and a strong, private non-profit group to advocate and operate a community theater. A sizeable historic preservation grant would be a major boost for the project but not sufficient to assure a community theater. ����►►�N��Illflp��l � �� city of San tins OBIspo COUNCIL AGENDA REPORT Application for acquisition and restoration of the Fremont Theater Page 3 Grant funds are available to government or non-profit "owners" of historic properties. Leases, easements or agreements may satisfy the ownership requirements. Formal documentation is required. The application period for these grants is very short considering the amount of work required to complete an application. The major tasks involved in completing an application for the Fremont Theater include: 1. Recruiting, selecting and contracting with a consultant to complete application. 2. Documenting the historical status of the Fremont Theater. 3. Negotiating an agreement with the property owners to lease or otherwise secure control of the property. 4. Documenting compliance with standards for acquisition projects. 5. Establishing necessary contacts in Sacramento. 6. Completing necessary forms and resolutions. Fiscal Impact The application process is expected to cost about $5,000. The City expects to request more than $1 million. It is impossible; at this time, to assess the City's chances of receiving a grant. If we later determine that the project is ineligible, efforts could be stopped. Alternatives 1. The City Council could authorize the application and the money necessary for a consultant to complete the application. 2. The City Council could authorize the application and direct a staff to prepare it. The application process is difficult and other projects would have to be delayed or cancelled to complete it with City staff. 3. The City Council could choose not to authorize the application. This is the only time this grant program will be available. The potential for other grant programs in the future is unknown. Consequence of not taking the recommended action Without early authorization to proceed with the application, it may not be possible to comply with application deadlines. ������►►i�11111�11p !��III city o� san fuss oBIspo COUNCIL AGENDA REPORT Application foracqusition and restoration of the Fremont Theater Page 4 Recommendations Adopt a resolution authorizing application for an History Grant to acquire. and renovate. the Fremont Theater and appropriate $5;000 to cover expenses of applying. -/a RESOLUTION NO. (1988 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING APPLICATION FOR AN HISTORY GRANT TO ACQUIRE AND RENOVATE THE FREMONT THEATER AND APPROPRIATING $5,000 TO COMPLETE THE APPLICATION WHEREAS, public hearings have determined need and community support for a small performing arts auditorium; and WHEREAS, the Fremont Theater has been identified as an historic structure with the potential to meet the community's need for a small auditorium; and ' WHEREAS, the project is eligible to apply for an History Grant under the California Wildlife, Coastal and Park Land Conservation Act of 1988. NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Section 1 The Council hereby authorizes application for an History Grant to acquire and renovate the Fremont Theater and appropriates $5,000 to complete the application. On motion of seconded by , and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 4th day of October, 1988. ' MAYOR RON DUNIN ATTEST: CITY CLERK PAMELA VOGES ssssasss Approved: City Ad In rative er City AtltojnA�y 6111 Director of Finance CAPITAL IMPR4 _ LMENT PLAN PART 3. SIGNIFICANT'PROJECTS (continued) Auditorium Development Estimated Total Cost: Not calculated Proposed Phases:Study and Design ($450.000 City share)(1937-88) Source of Outlay: Facilities Reserve Description: Evaluate the feasibWty. design and cost of two performing arts auditoriums: 1).a 1.500 seat multi-event performirr arts center at Cal Poly adja- cent to the existing theater and 2) acquisition and remodeling of the Fremont Theater as a multi-event theater. The City will undertake the first project in cooperation with Cal Poly and a citizens'group—the Foundation for the Performing Arts. These three par- ticipants will negotiate an agreement defining responsibilities for construction and operation of the center. Design of this auditorium could start as early as 1987-88 depending on approval among the parties to the agreement. The City will work with other citizens'groups—including Friends of the Fremont— to develop a program for using the Fremont Theater as the downtown performing arts theater. Progress on both of these projects will be contingent on strik- ing acceptable agreements among the participants and raising the money required. The 1987-88 outlay will cover the City's share of study and design costs. The City Council has approv- ed in concept reserving $4,500.000 over three years (from 1988-89 to 1990-91) to pay the City's share of costs.Raising this amount of money will require a tax increase and some type of debt instrument to leverage the balance in the-facilities reserve. Policy Unks: In 1970 the City Council established a formula allocating certain revenues to the Communi- ty Promotion Program.Over the yeais portions of the Community Promotion budget have been set aside in a facilities reserve for eventual construction of facilities to promote cultural arts. In 1985 the City Council commissioned a study by the architectural firm of Hall Goodhue Halsley and Barker to assess possible. locations. financing and features for a performing arts center. That study recommended two projects similar to those currently proposed PROGRAM SUMMARY HISTORY AND ARCHEOLOGY GRANT PROGRAM California Wildlife, Coastal, and Park Land Conservation Act of 1988. 1. Eligible Annlicants: units of local government In California. 2. Grant Funds: total $11,000,000; the minimum grant award is $50,000. 3. Application Deadline; December 1, 1988. 4. Eligible Properties: Owned by -- or under "under significant ownership control" of applicant. 5. Historic Status: property must be a State Historical Landmark ga be judged as historically significant using National Register criteria. 6. Eligible Activities: development activities that protect, stabilize, preserve,. rehabilitate, restore, or reconstruct a historic structure; or property acquisition. 7. Restoration Standards: standards published by the U.S. Secretary of the Interior. S. Environmental Review: must be complete and documentation submitted as part of application. 9. Funds Available: after July 1, 1989. 10. Proiect Plans: must be completed by June 30, 1990 and construction completed by June 30, 1992. 11. Cost Reimbursement: is for agency costs Incurred after the grant has been approved.