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Home My Public Portal About17) 10B Percent for Art OrdinanceCity Council February 3, 2015 Page 3 of 5 A review of the City's current capital improvement program indicates two projects that could benefit from a public art set-aside: the Las Tunas Drive streetscape project, and expansion of the Live Oak Park Community Center. Nevertheless, more review is needed upon final project scopes and funding appropriations to determine feasibility of such an art-funding requirement. Alternatively, the City Council may elect not to designate a percentage set-aside for its capital improvement projects, but instead stipulate in the ordinance that it may designate a funding appropriation for CIP artwork on a case-by-case basis. This arrangement, used in West Hollywood, has its benefits, especially if a CIP is funded primarily by various federal and state funding sources-like gas tax funds-which may not allow for public art costs. Furthermore, it presents flexibility on what projects to impose a fee, taking into consideration available funding, desired funding caps and whether the project furthers public art goals. • Impose a one percent (1%) fee to privately developed commercial and industrial projects. Using issued permit data from calendar year 2014, Attachment "A" provides various revenue scenarios based on valuation thresholds from $0 (or no threshold) to $250,000. Given Temple City's built-out nature, a majority of commercial and industrial permits are for tenant improvements, i.e., interior and fagade renovations. Assuming a best-case scenario on valuation threshold, generated revenues could yield $16,945. However, this amount could decrease to $14,065 should the City Council decide to establish a $50,000 valuation threshold. This provision would mirror that of Baldwin Park, which is currently the lowest countywide for commercial and industrial projects. The city of Lynwood follows with a $100,000 threshold, with a jump to most municipalities imposing thresholds exceeding $250,000. The latter applies mostly to new commercial development projects, which are very rare in Temple City. A broad definition of qualifying projects is proposed to cover new construction, reconstruction and other activities that require a building permit. Typically exempted projects include building reconstructions due to fire and natural force, the installation of fire sprinklers and most government agency projects. Some municipalities have expanded exemption to further community goals like historic property rehabilitation; the construction of handicapped facilities; and building construction or modifications for educational, childcare, non-profit and social seNice uses. Additionally, some municipalities have exempted certain businesses from the provision-e.g., car dealerships in Glendale. City Council February 3, 2015 Page 4 of 5 • Apply a half or one percent (0.50% or 1%) fee to multi-family and single-family residential developments of four or more units. Attachment "B" provides 2014 baseline revenue projections for a potential percent- for-art provision on multi-family and single-family residential developments of four or more units. As most new residential development citywide includes the demolition of existing properties and the construction of new homes, the analysis incorporates both demolition and building permits. (NOTE: Permits issued for the Linden Walk subdivision are excluded from the analysis, as an existing development agreement allows for public art in-lieu fees.) Countywide, most municipalities with percent-for-art requirements on new multi- family or housing subdivisions apply valuation thresholds ranging from $50,000 upwards of $1 million. Associated development requirements for these thresholds vary greatly between communities. For example, Baldwin Park imposes a $50,000 threshold on residential developments of four or more units; Lynwood on all residential developments exceeding $100,000 in valuation; Sierra Madre at $250,000 for projects of four or more units; South Gate at $500,000 for residential projects of five or more units; and Monrovia at $1 million for residential projects exceeding four units. There is no clear formula or rationale to these qualifiers. Rather, each municipality determines the figures based on development projections, community sentiment and nuanced factors. In 2014, the City's issued permit valuations for new multi-family and subdivision units ranged from $214,535 to $408,324, with an average permit valuation of $266,183. Given these values, the City Council could consider two threshold valuations: one at $200,000, and another at $250,000. Applying factors of half and one percent (0.50% and 1%), baseline revenue projections could yield $34,604 to $69,208 under a $200,000 threshold; and $23,873 to $47,745 at a $250,000 threshold. Imposing a higher threshold-for example, $300,000-yields little return. For ease of administration, staff recommends that applicable multi-unit developments or subdivisions (four or more units) be those considered as newly constructed housing units, including any permit valuation associated with demolition activities. Projects typically exempted from such a requirement include affordable housing projects funded or subsidized by federal, state or local housing agencies. CONCLUSION: Based on previous City Council direction, the information provided herein offers baseline revenue projections and recommended valuation thresholds for a proposed percent-for-art ordinance. Upon further consideration and if so desired by the City Council, staff will prepare an ordinance for subsequent review and adoption. City Council February 3, 2015 Page 5 of 5 FISCAL IMPACT: The actions contained in this report do not present a fiscal impact to the adopted FY 2014-15 City Budget. At this time, there is no clear indication on the amount of revenue to be generated by a potential ordinance, as valuation thresholds remain undefined. A preliminary best-case scenario for annual revenues-using 2014 permit data as a benchmark-estimates $83,273 assuming one percent (1%) development factors, and valuation thresholds of $50,000 for commercial and industrial projects and $200,000 for multi-unit developments. This revenue estimate is extremely conditional and will fluctuate annually based on market conditions. Upon potential enactment of an ordinance, the Public Arts Commission will develop administrative guidelines that govern use of the generated revenues in relation to public art programming. Among those considerations is definition of eligible expenditures for the revenues, as well as a categorized appropriation for how the monies should be spent (e.g., 60% for new artwork, 25% for artwork maintenance, etc.). Pursuant to best practice, defined parameters would subsequently be incorporated by amendment into the ordinance as a formalized fiscal policy. ATTACHMENTS: A. Revenue Projections: Commercial/Industrial B. Revenue Projections: Multi-Family/Subdivision (4+ Units) ATTACHMENT A PERCENT-FOR-ART ORDINANCE REVENUE PROJECTIONS: COMMERCIAL AND INDUSTRIAL DEVELOPMENT ADP_R!=S_!) ~RClJiERTY STREET NAME 9109 lAS TUNAS DR 9239 LAS TUNAS DR 9659 lAS TUNAS DR 9109 LAS TUNAS DR 5809 ROSEMEAD Bl 9629 LAS TUNAS DR 9621 LAS TUNAS DR 9548 lAS TUNAS DR 5546 ROSEMEAD BL 6019 BALDWINAV 5665 ROSEMEAD BL 5809 ROSEMEAD BL 6340 ROSEMEAD BL 4509 TEMPLE CITY BL 5801 TEMPLE CITY BL 9508 lAS TUNAS DR 9514 lAS TUNAS DR 4509 TEMPLE CITY BL 9559 lAS TUNAS DR 9510 LAS TUNAS DR 9157 LAS TUNAS DR 9545 LAS TUNAS DR 9548 LAS TUNAS DR 5703 ROSEMEAD BL 10217 LOWER AZUSA RD 9152 lAS TUNAS DR 9225 lAS TUNAS DR 4700 MILLER DR 5807 ROSEMEAD BL 5809 ROSEMEAD BL 5535 ROSEMEAD Bl 9525 GIDLEY ST TOTAL VALUATION: Source: Cour1ty of Los Ar~geles, City of Temple City. Data: 2014 Issued Buildir~g Permits. VA~l!j(JiON .•• •. $3,000.00 $3,000.00 $3,000.00 $3,800.00 $4,000.00 $7,000.00 $7,000.00 $7,000.00 $7,500.00 $8,608.00 $9,100.00 $10,000.00 $10,000.00 $15,000.00 $15,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $25,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00 $70,000.00 $91,500.00 $100,000.00 $100,000.00 $150,000.00 $200,000.00 $235,000.00 $350,000.00 $1,694,508.00 Threshold @ 1% None $ 16,945 $25,000 15,015 $50,000 14,065 $75,000 12,265 $100,000 11,350 $150,000 9,350 $175,000 7,850 $200,000 7,850 lojlq~KDESCRIPTioN· . < '.< , > ··· ··.·.·•• .... ··,.· .\' TENANT IMPROVEMENT-REVISE FLOOR PLAN APPROVED ON 02/26/14 TENANT IMPROVEMENT-REPLACE 4 EXISTING 3'X6'-8" OFFICE TENANT IMPROVEMENT FOR MAILBOX BUSINESS-NON BEARING TENANT IMPROVEMENT-DEMOLITION OF INTERIOR WALK IN COOLER APPROVAL FOR SUBDIVIDING EXISTING UNIT ONLY LEGALIZE RECONSTRUCTION OF INTERIOR STAIRS & TENANT TANANT IMPROVEMENT FOR IVY SPA-PARTITION WALL FOR SPA INSTALL SOFFTS & DRYWALL CEILING IN BACK ROOM AT BUILDING TENANT IMPROVEMENT-HAIR SALON RELOCATE LAVATORY & INSTALL COUNTER THEREFOR AT BACK OF TENANT IMPROVEMENT INSTALLING 7 VEHICLE LIFTS AND RESTROOM TENANT IMPROVEMENT-INSTALLATION OF VENTilATION/GREASE HOOD TENANT IMPROVEMENT OF NEXTEL CELL SITE REMOVE ANTENNAS, SAND BLASTING EXISTING STUCCO FINISH, RE-SURFACE STUCCO TO A TENANT IMPROVEMENT-INSTALL INTERIOR NON-BEARING PARTITIONS FRONT FACADE IMPROVEMENT FRONT FACADE IMPROVEMENT TENANT IMPROVEMENT INTERIOR REMODELING WITH NEW PAINT, TENANT IMPROVEMENT NEW PARTITION WALL, ADA RESTROOM, T-BAR FRONT FACADE IMPROVEMENT & MIN INTERIOR REMODELING TENANT IMPROVEMENT-NEW WINDOWS, ADA WHEEL CHAIR RAMP AND UPGRADE (ADA) PARKING TENANT IMPROVEMENT LOW PARTlTION WALL, EXISTING "T" BAR TENANT IMPROVEMENT OF A FULL SERVICE RESTAURANT OF APPROXIMA TENANT IMPROVEMENT-DENTAL OFFICE TENANT IMPROVEMENT ON FIRST FLOOR 1996 SF. FOR REALTOR TENANT IMPROVEMENT REDUCE 4300 SF. TO 2897 SF. RESTAURANT, TENANT IMPROVEMENT WARE HOUSE/OFFICE CHANGE TO CATERING & TENANT IMPROVEMENT FOR CHUAN'S RESTAURANT INTERIOR TENANT IMPROVEMENT W/NEW KITCHEN, RESTROOM+ INTER! TENANT IMPROVEMENT-REFACE CABINETS & UPGRADE APPLIANCES & NEW WAREHOUSE 3000 SF./OFFICE SPACE 1000 SF. ATTACHMENT 8 PERCENT-FOR-ART ORDINANCE REVENUE PROJECTIONS: MULTI-FAMILY/SUBDIVISION (4+ UNITS) ADDRESS PROPERTY STREET NAME VALUATION 9478 WOODRUFFAV 9488 WOODRUFFAV 5528 SULTANAAV 4433 ELLIS LN 4439 ELLIS LN 5408 WELLANDAV 5410 WELLANDAV 5412 WELLANDAV 5418 WELLANDAV 5526 SULTANAAV 5531 SANTAANlTAAV 5533 SANTAANITAAV 5535 SANTAANITAAV 5537 SANTAANITAAV 5539 SANTAANITAAV 5529 SANTAANITAAV 5951 CLOVERLYAV 9468 WOODRUFFAV 5526 SULTANAAV 4431 ELLIS LN 5528 SULTANAAV 5949 CLOVERLYAV 9476 WOODRUFFAV 4435 ElliS LN 4437 ELLIS LN 5420 WELLANDAV TOTAL VALUATION: Source: County of Los Angeles, City of Temple City. Data: 20141ssued Building Permits. $214,535.00 $214,535.00 $242,073.00 $244,880.00 $244,880.00 $246,330.00 $246,330.00 $246,330.00 $246,330.00 $252,157.00 $259,397.00 $259,397.00 $259,397.00 $259,397.00 $259,397.00 $263,770.00 $265,660.00 $265,663.00 $268,790.00 $272,923.00 $283,631.00 $285,632.00 $285,632.00 $302,582.00 $327,300.00 $403,824.00 $6,920,772 Threshold 0.5% 1% $200,000 $ $250,000 $300,000 34,604 $ 23,873 5,169 69,208 47,745 10,337 \11/0RKDESCRIPJION : ;;·.···;. · .. ........ ··· .. ·· . : : ·.·· ..•... ·.·.· ... . . . . ·: NEW 2-STORY 2BR/3.5BA DETACHED CONDO W/ATTACHED 2 CAR GARAGE NEW 2-STORY 2BR/3.5BA DETACHED CONDO WIATT ACHED 2 CAR GARAGE NEW 2-STORY 4 BEDROOMS, 4 BATHROOMS DETACHED CONDO WITH NEW 2-STORY CONDO 4 BEDROOMS, 3 BATHROOMS WITH ATTACHED 2 NEW 2-STORY CONDO 4 BEDROOMS, 3 BATHROOMS WITH ATTACHED 2 NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO WITH NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO WITH NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO WITH NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO WITH NEW 2-STORY 4 BEDROOMS, 4 BATHROOMS DETACHED CONDO WITH NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO NEW 2-STORY 4 BEDROOMS, 3 BATHROOMS DETACHED CONDO NEW 2-STORY 3BRJ3.5BA DETACHED CONDO WIATT ACHED 2 CAR GARAGE NEW 2-STORY 3BR/3.5BA DETACHED CONDO W/ATTACHED 2 CAR GARAGE NEW 2-STORY 4 BEDROOMS, 4 BATHROOMS DETACHED CONDO WITH NEW 2-STORY CONDO 3 BEDROOMS, 3 BATHROOMS WITH ATTACHED 2 NEW 2-STORY 4 BEDROOMS, 4 BATHROOMS DETACHED CONDO WITH NEW 2-STORY 48R/4BA DETACHED CONDO WI ATTACHED 2 CAR GARAGE NEW 2-STORY 4BR/4BA DETACHED CONDO W!ATTACHED 2 CAR GARAGE NEW 2-STORY CONDO 4 BEDROOMS, 3 BATHROOMS, 2ND: FLOOR DEN, NEW 2-STORY CONDO 4 BEDROOMS, 3 BATHROOMS, 2ND: FLOOR DEN, NEW 2-STORY 3 BEDROOMS, 2 BATHROOMS ATTACHED CONDOS WITH