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HomeMy WebLinkAbout2023-06-13 - AGENDA REPORTS - HART PARK ANALYSISO Agenda Item: 4 1. CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS CITY MANAGER APPROVAL: TAA,/� DATE: June 13, 2023 SUBJECT: ANALYSIS RELATED TO THE FEASIBILITY OF TRANSFERRING OWNERSHIP OF WILLIAM S. HART REGIONAL PARK DEPARTMENT: Neighborhood Services PRESENTER: Jerrid McKenna RECOMMENDED ACTION City Council review the analysis related to the feasibility of assuming ownership and operations of William S. Hart Regional Park and provide direction to staff. BACKGROUND At the November 23, 2021, regular meeting, the City Council approved the recommended action to send a letter to the County of Los Angeles (County) requesting the County's consideration to transfer ownership of the William S. Hart Regional Park (Hart Park) to the City of Santa Clarita (City). If agreeable in concept to the County, it was outlined at the meeting that staff would work with County staff to develop a report that would include future financial obligations, details on deed restrictions, and an outline of the process and timeline to complete the transfer for the City Council to review and consider at a future meeting. Shortly after that approval, a team of approximately twenty City staff was formed to complete this analysis. The full report is attached as reading file to this item for review. In addition, a summary of key findings from the analysis has been included below. Key Findings History of the Site Hart Park is an approximately 160-acre park that is currently owned and operated by the County, but located in the City. The property on which Hart Park is located belonged to silent film star William S. Hart, who left the bulk of his estate to the County upon his death in 1946, stipulating that his home and ranch Page 1 Packet Pg. 83 O property be used as a museum and public park. Hart Park is home to the William S. Hart Museum, historic Heritage Junction, many native plants and animals, and a herd of American Bison. Amenities at Hart Park include hiking and nature trails, a large picnic area, and buildings that had been used by William S. Hart personally. Last Will and Testament William S. Hart's Last Will and Testament (Will), executed on September 9, 1944, governs and outlines use and maintenance requirements at the site. More specifically, the Will states the following, "The Park shall be forever used exclusively as a public park and pleasure grounds, and for exhibition purposes, for the amusement, recreation, health, and pleasure of its inhabitants. The Park shall be open to public use at all times, subject to proper restrictions to be provided by the Board of Supervisors of the County. No charge or fee shall ever be made to the public for admittance to the Park." 1991 Court Order Upon initial analysis and feedback collected from the County, revenue generating events at the Park were significantly limited due to the Will. However, a Court order issued on August 13, 1991 by the Superior Court for the State of California to the County of Los Angeles determined "...that fees for special events and fundraising to support the park are consistent with Harfs will." This Court order would allow events including, but not limited to, "...classes, concerts, plays and movies... filmmaking, weddings... company outings and birthday celebrations. Such events shall be scheduled so that they will not unreasonably restrict the public's general uses of the park either as to area or time." Further, the Court Order requires specific accounting for money collected for these special events: "...any money obtained from the programs or fundraising activities permitted herein shall be segregated and accounted for separately... and used exclusively for and at William S. Hart County Park." Properties Eight properties exist within the Hart Park property, two of which are not subject to the Will (purchased from other entities by the County): • 2827-001-902 (9.33 acres; third portion purchased by Hart) • 2827-001-903 (024 acres; County purchased in 1968 from the federal government — formerly a forest ranger office) • 2827-001-904 (24.4 acres; owned by the Frew family and sold to County in 1958—not subject to the Will) • 2827-001-905 (13.4 acres; purchased by Hart c. 1933) • 2827-001-906 (41.3 acres; purchased by Hart c. 1933) • 2827-001-907 (33.7 acres; purchased by Hart c. 1926-7) • 2827-001-912 (32.1 acres; first portion purchased by Hart in 1921) Page 2 Packet Pg. 84 O • 2827-001-913 (1.23 acres; County purchased in early 1970s from Cal Lutheran Church not subject to the Will) Site Condition The project team has conducted multiple inspections at the site over the last year. While the team obtained some records of completed capital projects and details about ongoing maintenance, there is deferred maintenance to the facilities and the surrounding landscape that would need to be addressed. Facilities All facilities on the site have been inspected by City staff and itemized into a tiered level of importance pertaining to safety with associated costs to repair. The County provided a recent capital reserve study to help identify areas of immediate need and outline the investments made recently to rehabilitate some of the facilities. Most of the more modern facilities are functional, but must be addressed over time. The historical facilities are in good condition at this time, with some immediate needs that have been identified. Landscape Maintenance to the landscape has been kept to a minimum in recent years. It appears only basic mow and blow services are being provided on a daily basis. Many of the surrounding trees near walkways and pathways are deteriorating or in need of pruning to protect the health of the tree or adjacent structures. Immediate needs include removing dead or declining trees, pruning poorly structured trees, stump grinding to remove existing stumps, and pest management treatments for trees showing symptoms of pathogenic activity. Hart Mansion The Hart Mansion/Museum (Mansion) has been closed since the Pandemic. The construction of the Mansion was completed in 1927 and houses the three-dimensional portion of the Hart Collection. Rehabilitation work has been performed periodically since the late 1980s by the Department of Parks and Recreation, Natural History Museum (NHM) staff, and contractors. Overall, the Mansion is in good condition. However, the materials and systems in this building are outdated and unique. This will likely require outside contractors to complete future maintenance and repairs. Further, there are two items in need of immediate attention: the HVAC and the phos-chek (fire retardant) system. Hart Collection Obtaining ownership of the Hart Collection, both physical and digital, would be a significant effort, along with the ongoing responsibilities associated with collection management. There are currently more than 6,000 artifacts located at the Mansion. Periodically, objects are temporarily transferred for conservation and temporary exhibitions. All objects are moved back to the Mansion after completing conservation work and a temporary exhibition display. These Page 3 Packet Pg. 85 O transactions are permanently recorded by Incoming and Outgoing Receipts kept by the Registrar's Office. Collections are continuously tracked for insurance purposes. Part of the Hart Collection is also held at the Seaver Center and has been kept in digital format. Hart Collection at the Seaver Center The archival portion of the Hart Collection was removed from the Hart Mansion in the 1980s and is housed at the Seaver Center. The intention was to return the collection to Hart Park once the County constructed an appropriate facility to house the collection and provide public access. This did not happen. The NHM staff stated that the collection is integrated into their history collection at the Seaver Center and that it would be a challenge to remove it for the transfer. This process could take considerable time. With some planning, it could be possible to house the archival collection in the City's Archives at Newhall Library. The close proximity of Newhall Library to the Hart Museum will allow patrons to visit the Museum and then research or browse Harfs personal and professional records in the City's Archives at the Newhall Library. Museum Collection Data Transfer City staff met with the NHM's collections and Technology Services (TS) staff to discuss the data transfer of the digital assets. Currently, there is no in-house system that can accommodate this type of collection/data. Using Polaris, the Library's integrated library system, for this purpose is not feasible because the software cannot support museum or archival collections. Moving forward, it will be important to identify a secure means for storing Hart Collection data (collection management system) with appropriate redundancy to ensure there is no loss of information. Future Programming Recreational and event programming, offered by the City, could vary from large scale, single - day special events to weekly youth camps and staff- or volunteer -led community hikes. The City has developed several new programs that would fit within Hart Park including a Youth Outdoor Adventure Camp and a Community Hike series that continues to grow. Staff also anticipates Hart Hall being part of the City's facility reservation options for the community with weekly rentals and meetings be held in the space. The seven group campgrounds are also a great addition to the City for various rentals and events for a variety of different groups. City staff also expects to offer interactive programming including animal tours, animal caretaking classes, movies in the park, and seasonal youth camps similar to Camp Clarita. Revenue Potential On the revenue side, it is important to note that revenue opportunities were very limited in the past due to the properties being enforced by the William S. Hart Will, which states that the Park is to be free to the public. However, the project team believes there may be additional revenue opportunities to help pay for annual operations and capital improvements at the site. As an example, when the Cowboy Festival switched locations to Hart Park, the City had to develop a different structure to make the event free to the public. As a result, general admission Page 4 Packet Pg. 86 O to the event was free to everyone, but the City was able to charge for VIP passes and fees for vendors. Revenue opportunities like these are supported by a court order that was issued to the County on August 1, 1991, "...finding that fees for special events and fundraising to support the park are consistent with Hart's will." With knowledge of precedential events at the site and the court order, another significant revenue stream that could be captured at this site is filming. While the park needs to be open to the public for free, sections of the park could be sectioned off for filming similar to how filming at other City parks is conducted. Finally, there is a large parcel (24.4 acres) included in the possible transfer that is not governed by the Will. The opportunities for revenue generation on this parcel could be fully explored and were not included in the financial impact in the following section. Financial Impact After a thorough review of documentation provided by the County, the City developed a financial forecast that assumes taking over all operations of Hart Park and maintenance of the grounds and facilities, including functions of the Mansion and services for animals at the site. It also assumes relocating existing programming and events to Hart Park and expanding new programming at the site over time; however, as mentioned previously, as a conservative measure, it does not capture any significant new events, filming activity, or new use of the non -Will parcel. Year 1 Ongoing Revenues $331,780 $380,220 $3,449,410* $2,324,974 -Expenditures Net $3,117,631 $1,944,754 *includes $650,000 in one time need for emergent capital projects Opportunities and Challenges While there is still much to learn about the overall operations and condition of the park amenities, historical artifacts and facilities, the project team has made a great deal of discovery over the last year. They developed a comprehensive list of potential opportunties with assuming ownership and operations of the site and potential challenges. Opportunities • Large regional park • Last County -owned park within the City boundary • Includes the former Senior Center property • Possible revenue potential beyond current operations (filming, events, etc.) • Control of enhancements to the park • Local historic educational opportunities Page 5 Packet Pg. 87 O • Preservation of local history and significance • Leveraged volunteer work • Increase in community support for one-time and annual donations to improve the Park Challenges/Unknowns • Significant effort to extract and transfer historical artifacts (physical and digital) related to the Hart Collection • Management of the Museum including preservation of the Hart Collection • Absence of historic building plans for future maintenance • Maintenance and repair of aging, historic facilities with unfamiliar, complicated systems • Management and care of animals at the site • Infrastructure issues and repairs (e.g. slope failure, phos-chek system, water storage tank, retaining walls, etc.) • Evacuation and preservation of historic artifacts during emergencies Next Steps Should the City Council and the County Board of Supervisors agree to move forward on the transfer of ownership, the City would incur expenses related to each of the steps below, including, but not limited to, appraisal and title reports; CEQA exemption filing; probate preparation, filing and processing; and preparation of legal documents. Staff estimates it could take anywhere from 18 to 24 months to complete the steps identified below to fully execute the transfer and begin City operations of the Park. • City Council direction to proceed with the Transfer • Complete Title Report and Appraisal • CEQA - Class 25 Exemption • Probate Court (County would file; City cost) • Formal approval by City and County for transfer • Execution of documents • Natural History Museum Transfer Agreement for Collection • Determine grants associated with the site and reassignment • Prepare for transfer (recruit and hire staff, purchase equipment) • Certificate of Acceptance • Trust Fund Transfer Page 6 Packet Pg. 88 O ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT There is no fiscal impact on this item. ATTACHMENTS William S. Hart Park Transition Report Page 7 Packet Pg. 89 4.a 2023 WILLIAM S. HART PARK TRANSITION REPORT 7 Q � SPNry eL O y U 9 o�F Packet Pg. 90 x aofO �s o[ceMa �^0�1 4.a TABLE OF CONTENTS History of the Site 1 Last Will & Testament 2 Properties 3 Project Background 4 Current Operation 5-6 Site Condition 7-9 Collection 10-11 Future Operations 12-13 Financial Impact 14 Opportunities & Challenges 15 Next Steps 16 r- 0 0 0 L 6 E 0 a Packet Pg. 91 4.a HISTORY OF THE SITE The William S. Hart Regional Park (Hart Park) is an approximately 160-acre park that is currently owned and operated by the County of Los Angeles (County) but located in the City of Santa Clarita (City). The property on which Hart Park is located belonged to silent film star William S. Hart, who left the bulk of his estate to the County upon his death in 1946, stipulating that his home and ranch property be used as a museum and public park. Hart Park is home to the William S. Hart Museum, historic Heritage Junction, many native plants and animals, and a herd of American Bison. Amenities at Hart Park include hiking and nature trails, a large picnic area, and buildings that had been used by William S. Hart personally. "While I was r- 0 making pictures, the people gave me _ their nickels, dimes, L a and quarters. When I am gone, I 6 E want them to have my home." _ a Packet Pg. 92 4.a LAST WILL S. TESTAMENT William S. Hart's Last Will and Testament (Will), executed on September 9,1944, governs and outlines use and maintenance requirements at the site. More specifically, the Will states the following: "The Park shall be forever used exclusively as a public park and pleasure grounds, and for exhibition purposes, for the amusement, recreation, health, and pleasure of its inhabitants. The Park shall be open to public use at all times, subject to proper restrictions to be provided by the Board of Supervisors of the County. No charge or fee shall ever be made to the public for admittance to the Park." Further, the Will outlines specific obligations for the maintenance of the grounds and museum properties so that they are usable and accessible to the public during operating hours. Specific to the Museum, the Will also requires security when the Museum is open to the public and specific requirements to preservation and protection of artifacts within. 1991 Court Order Upon initial analysis and feedback collected from the County, revenue generating events at the r- 0 Park were significantly limited due to the Will. However, a Court order issued on August 13,1991 by the Superior Court for the State of California to the County of Los Angeles determined "...that = 0 fees for special events and fundraising to support the park are consistent with Hart's will." L This Court order would allow events including, but not limited to, "...classes, concerts, plays and Y L movies... filmmaking, weddings... company outings and birthday celebrations. Such events shall be a scheduled so that they will not unreasonably restrict the public's general uses of the park either as to area or time." _ 6 E Further, the Court Order requires specific accounting for money collected for these special = events: "...any money obtained from the programs or fundraising activities permitted herein shall be segregated and accounted for separately... and used exclusively for and at William S. Hart E County Park." a Packet Pg. 93 4.a PROPERTIES APV 82-001-y_S ac-es 11 Vr� op 7 As you can see in this diagram, eight properties exist within the Hart Park property. Two of which are not subjec to the Will (not highlighted in yellow) The more oversized parcel of the two contains Heritage Junction. 2827-001-902 (9.33 acres; third portior purchased by Hart) 2827-001-903 (0.24 acres; County purchased in 1968 from the federal government - formerly a forest range office) 2827-001-904 (24.4 acres; owned by the Frew family and sold to County it 1958) 2827-001-905 (13.4 acres; purchased b, 0 Hart c.1933) c 0 2827-001-906 (41.3 acres; purchased b, Y .N L Hart c.1933) L 0 a 2827-001-907 (33.7 acres; purchased b, r- _ Hart c.1926-7) N E 2827-001-912 (32.1 acres; first portion r purchased by Hart in 1921) E 2827-001-913 (1.23 acres; County M Q purchased in early 1970s from Cal Lutheran Church) Packet Pg. 94 V PROJECT BACKGROUt The City has had a long-standing vision of the Old Town Newhall Arts and Entertainment District and has put significant resources into creating an area that attracts residents and tourists to this historic part of the community. The City has made numerous investments in Old Town Newhall to support that vision, including the creation of the Veterans Historical Plaza, the construction of the Newhall Library, the operation of The MAIN, construction of the parking structure, enhancement of the historic downtown via street and sidewalk improvements, and the implementation of SENSES, Light Up Main Street, and other events. 4.a Close to many City facilities and amenities, Ha Park serves as a point of connection with man - the programs and activities that the City provides. A large portion of Hart Park is also located within the boundaries of the Old Towr Newhall Specific Plan. Hart Park remains an important amenity in th area, and it is likely that the use of Hart Park n expand to accommodate more City events in tl future. Therefore, at the November 23, 2021 meeting, the City Council approved an item to explore the opportunity to transfer the only remaining County -owned park within the City boundary to City ownership. Shortly after that approval, a team of City staff was formed to analyze the process of obtaining ownership of the site and the future financial commitment for operations and maintenance. E W LL Cn Z Q F_ LL 0 Z 0 F_ 9 w 0 U5 Z 0 U Y Q a J Q Z 0 0 w W F_ Q x vi Q J J_ 0 a a� 0 LL r a x 6 E _ a� E a Packet Pg. 95 4.a CURRENT OPERATION Since the COVID-19 pandemic started, William S. Hart Park has continued to operate in a limited capacity. There is nothing displayed on the County's William S. Hart Regional Park website besides self - serve amenities such as the turf areas and hiking trails. The grounds are currently open 8:00 a.m. to 5:00 p.m. Tuesday through Sunday. Programming has also been minimal at the site in recent years, but is beginning to increase in the first quarter of 2023. Prior to the Pandemic, the Mansion operated as a public museum with tours offered by Natural History Museum (NHM) staff Wednesdays through Fridays from 12:00 p.m. to 3:00 p.m. and Saturdays and Sundays from 11:00 a.m. to 4:00 p.m. The Mansion has remained closed to the public, with NHM staff onsite periodically to perform collection maintenance. Currently, NHM staff are assessing, rehousing, and performing conservation/preservation treatments on collection items. A few events have taken place at Hart Hall in the past two years, but nothing notable or significant is being done to plan events or do any substantial marketing to advertise the space. Q Packet Pg. 96 4.a CURRENT OPERATION The Barnyard While the site has not seen significant programming in recent years and the Museum continues to be closed, the Barnyard Animal Visiting Center did reopen to the public in August of 2021. The animals at the Banyard include wild boars, alpacas, donkeys, horses, mule deer, pot-bellied pigs, tortoises, rabbit, turkey, pheasant, ducks, geese, chicken, swans, along with a bison herd, located in a 22-acre enclosure. The Barnyard is open 9:00 a.m. to 2:00 p.m. Tuesday through Sunday and is operated by LA County staff and volunteers. While LA County staff provides the routine care and maintenance of the animals, veterinarian and other specialty services are contracted out to a list of approved vendors. Q Packet Pg. 97 4.a SITE CONDITION The project team has conducted multiple inspections at the site over the last year. While the team obtained some records of completed capital projects and details about ongoing maintenance, there is deferred maintenance to both the facilities and the surrounding landscape that would need to be addressed over time. Facilities All facilities on the site have been inspected by City staff and itemized . into a tiered level of importance pertaining to safety with associated costs to repair. The County provided a recent capital reserve study to help identify areas of immediate need and outline the investments made recently to rehabilitate some of the facilities. Most of the more modern facilities are functional, but must be addressed over time. The historical facilities are in good condition at this time, with some immediate needs that have been identified. 'ra-w Lr low Q Packet Pg. 98 4.a SITE CONDITION Landscape Maintenance to the landscape has been kept to a minimum in recent .x, years. It appears only basic mow and blow services are being provided on a daily basis. Many of the surrounding trees near walkways and pathways are deteriorating or in need of pruning to protect the health of the tree or adjacent structures. Immediate needs include removing dead or declining trees, pruning poorly structured trees, stump grinding to remove existing stumps, and pest management treatments for trees showing symptoms of pathogenic activity. Transitioning to the condition of the remaining turf and shrub areas, the following would be the primary focus of parks maintenance staff at the Park: • Irrigation Upgrades • Abandoned landscape/turf area rehabilitation • Storm drainage/swale Improvements Q Packet Pg. 99 4.a SITE CONDITION Mansion As mentioned, the Mansion/Museum has been closed during the Pandemic. The construction of the Mansion was completed in 1927 OCri1�O and houses the 3-dimensional portion of the Hart Collection consisting of more than 6,000 objects. Rehabilitation work has been performed periodically since the late 1980s by the Department of Parks and Recreation, NHM staff, and contractors. Overall, the Mansion is in good condition. However, the materials and systems in this building are outdated and unique. This will likely require outside contractors to complete future maintenance and repairs. Further, there are two items in need of immediate attention: the HVAC and the phos-check system. NHM staff confirmed maintenance is a delicate item and that their team leads these efforts and has specialty contractors they utilize. They have outfitted special transport boxes to remove the most significant historical pieces. NHM is also currently responsible for evacuating the Mansion's collection in case of a fire or similar emergency. r Q Packet Pg. 100 4.a HART COLLECTION Obtaining ownership of the Hart Collection would be a significant effort, along with the ongoing responsibilities associated with collection management. The following information has been obtained about the Hart Collection to date: Hart Collection at the Mansion There is no physical Hart material kept permanently at any County facility other than the archival collections in the Seaver Center. Periodically, objects are temporarily transferred to: • NHM for conservation and temporary exhibitions • NHM offsite collection facilities for conservation purposes All objects are moved back to the Hart Mansion following the completion of conservation work and/or temporary exhibition display. These transactions are always recorded by Incoming and Outgoing Receipts kept by the Registrar's Office. Collections are always tracked for Insurance purposes. Hart Collection at the Seaver Center The archival portion of the Hart Collection was removed from the Hart Mansion in the 1980s and is housed at the Seaver Center. The intention was to return the collection to Hart Park r- once the County constructed an appropriate facility to house the collection and provide 0 public access. This did not happen. NHM staff stated that the collection is integrated into their a: o history collection at the Seaver Center and that it would be a challenge to remove it for the, transfer. This process could take considerable time. With some planning, it could be possible M to house the archival collection in our Archives at Newhall Library. The close proximity of L Newhall Library to the Hart Museum will allow patrons to visit the Museum and then M a research or browse Hart's personal and professional records in our Archives at the Library. _ According to NHM staff, the collection includes: 0i E • William S. Hart Papers (135 linear feet) • Photographs, negatives, and film reels (45 linear feet) • Unprocessed Hart containers (25 boxes) a Packet Pg. 101 4.a HART COLLECTION Museum Collection Data Transfer City staff had a meeting with the NHM's collections and Technology Services (TS) staff to discuss the data transfer of the digital assets. Currently, we do not have a system in-house that can accommodate this type of collection/data. Using Polaris, the Library's integrated library system, for this purpose is not feasible because the software cannot support museum or archival collections. Moving forward, it will be important to identify a secure means for storing Hart Collection data (collection management system) with appropriate redundancy to ensure there is no loss of information. Museum Accreditation The Hart Museum was accredited by the American Alliance of Museums in 2011. The NHM was set to reapply for accreditation in 2026. Accreditation does not transfer with the museum. According to NHM staff, when a museum transfers ownership to a different entity, it is seen as a new museum under new management. The City's staff would have to apply for accreditation if interested in acquiring this status; however, the museum would not be eligible to apply until two years after its transfer to the City. Q Packet Pg. 102 4.a FUTURE OPERATIONS Recreation Recreational programming, offered by the City, would vary from large scale single day special events to weekly youth camps and staff or volunteer led community hikes. The City has developed several new programs that would fit within Hart Park including a Youth Outdoor Adventure Camp and a Community Hike series that continues to grow. Staff also anticipates Hart Hall being part of the City's facility reservation options for the community with weekly rentals and meetings be held in the space. The seven group campgrounds are also a great addition to the City, for various rentals and events for a variety of different groups. City staff also expects to offer interactive programming including animal tours, animal caretaking classes, movies in the park, and seasonal youth camps similar to Camp Clarita. Events The City of Santa Clarita has a rich history of producing or co -producing events at William S. Hart Park. This goes back to the early years after City formation, as several Concerts in the Park events and ancillary events during the Cowboy Festival were held at the site. Once the City takes possession of the property there are events that would return to the location or events that could be relocated to the venue. Events Previously Held at Hart Park o The three events held at Hart Park before the Covid pandemic were the annual Cowboy Festival, _ the Newhallywood Silent Film Festival, and staging for the 4th of July Parade, which is co - produced by the City. All three events would return to the site. L L Events that Could be Relocated to Hart Park a Two existing event series could be relocated to the park. The first is the weekly Saturday morning 6 E Farmers Markets currently held at the Old Town Newhall Library parking lot. The Market Manager is not supportive of this concept as he believes without being on a busier street it would impact his attendance, but due to the challenges of the current location in terms of the impact to the library and its programming, the change would be ideal for the future growth of the Market. M The second event series is City Cinemas, which launched last year at Central Park. The County a provided the community with a summer film series and moving the City's version to Hart Park would be recommended. Packet Pg. 103 4.a FUTURE OPERATIONS Potential Future Events Some events that have been discussed in the past and would make sense to develop for the site in the near future include another film festival celebrating our Western film heritage. The proposal is to hold the film festival in August to coincide with the annual Friends of Hart Park Silents Under the Stars event. Another event series that has been discussed is to develop a quarterly art show, which would feature fine art and craft vendors, food and drink vendors, and pop-up and mobile museum experiences. This is recommended in the Arts Master Plan, and the Arts Commission and staff belief that the SCV Historical Society's Heritage Junction would be an ideal location for this type of event. It could easily be held at the same time as the weekly Farmers Markets, as that event would most likely be held near the grass area adjacent to Newhall Avenue further north at the location. Revenue Potential On the revenue side, it is important to note that revenue opportunities were very limited in the past due to the properties being enforced by the William S. Hart Will, which states that the Park is to be free to the public. However, the project team believes there may be additional revenue opportunities to help pay for annual operations and capital improvements at the site. As an example, when the Cowboy Festival switched locations to Hart Park, the City had to develop a different structure to make the event free to the public. As a result, general admission to the event was free to everyone, but the City was able to charge for VIP passes and fees for vendors. Revenue opportunities like these are supported by a court order that was issued to the County on August 13,1991, "...finding that fees for special events and fundraising to support the park are consistent with Hart's will." With knowledge of precedential events at the site and the court order, another significant revenue stream that could be captured at this site is filming. While the park needs to be open to the public for free, sections of the park could be sectioned off for filming similar to how filming at other City parks is conducted. Finally, there is a large parcel (24.4 acres) included in the possible transfer that is not governed by the Will. The opportunities for revenue generation on this parcel could be fully explored and were not included in the financial impact on the following page. a Packet Pg. 104 4.a FINANCIAL IMPACT After a thorough review of documentation provided by the County, the City developed a financial forecast that assumes taking over all operations of Hart Park and maintenance of the grounds and facilities, including functions of the Mansion and care for the animals at the site. It also assumes relocating existing programming and events to Hart Park and expanding new programming at the site over time; however, as a conservative measure, it does not capture any significant new events, filming activity, or new use of the non -Will parcel. Expenditures Year 1 $3r449r4lO* *Includes $650,000 in Capital Projects Year 2 $2r324r974 Revenues Yearl Year2 $331F780 $380F220 Net Year 1 ($3,117,631) Year 2 ($lr944r754) Packet Pg. 105 4.a OPPORTUNITIES d CHALLENGES W U_ Cn While there is still much to learn about the overall operations and condition of the park Z amenities, historical artifacts and facilities, the project team has done a great deal of discovery over the last year. They developed a comprehensive list of potential opportunities Z with assuming ownership and operations of the site, as well as potential challenges. g Opportunities • Large regional park • Last County -owned park within the City boundary • Possible revenue potential beyond current operations (filming, events, etc.) • Control of enhancements to the park • Local historic educational opportunities • Preservation of local history and significance • Leveraged volunteer work • Increase in community support for one-time and annual donations to improve the Park Challenges • Significant effort to extract and transfer historic artifacts (physical and digital) related to the Hart Collection • Management of the Museum including preservation of the Hart Collection • Absence of historic building plans for future maintenance • Maintenance and repair of aging, historic facilities with unfamiliar, complicated systems • Management and care of animals at the site • Infrastructure issues and repairs (e.g. slope failure, phos-check system, water storage tank, retaining walls, etc.) • Evacuation and preservation of historic artifacts during emergencies I�� f r4 1 a Vow E Q Packet Pg. 106 4.a NEXT STEPS While the City project team has been working to develop this report, staff has also been simultaneously working with County staff to outline the transition process. Should the City Council and the County Board of Supervisors agree to move forward on the transfer of ownership, the City would incur expenses related to each of the steps below, including, but not limited to, appraisal and title reports; CEQA exemption filing; probate preparation, filing and processing; and preparation of legal documents. Staff estimates it could take anywhere from 18 to 24 months to complete the general steps identified below to fully execute the transfer and begin City operations of the Park. • CITY COUNCIL DIRECTION TO PROCEED WITH THE TRANSFER • COMPLETE TITLE REPORT AND APPRAISAL • CEQA — CLASS 25 EXEMPTION • PROBATE COURT COUNTY WOULD FILE) • FORMAL APPROVAL BY CITY AND COUNTY FOR TRANSFER • EXECUTION OF DOCUMENTS A. PSA B. CONFORMANCE WITH CITY PLANNING C. PARK TRANSFER AGREEMENT D. QUITCLAIM DEED E. NATURAL HISTORY MUSEUM TRANSFER AGREEMENT FOR COLLECTION • DETERMINE GRANTS ASSOCIATED WITH THE SITE AND REASSIGNMENT • PREPARE FOR TRANSFER RECRUIT AND HIRE STAFF, PURCHASE EQUIPMENT) • CERTIFICATE OF ACCEPTANCE • TRUST FUND TRANSFER r- 0 a a: 0 L a 6 E a Packet Pg. 107