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HomeMy WebLinkAbout2026-10-13 - AGENDA REPORTS - OLD TOWN NEWHALL FIRE RECOVERY EFFORTSO Agenda Item: 1 CITY OF SANTA CLARITA .` AGENDA REPORT NEW BUSINESS CITY MANAGER APPROVAL: DATE: October 13, 2026 SUBJECT: OLD TOWN NEWHALL FIRE RECOVERY EFFORTS DEPARTMENT: City Manager's Office PRESENTER: Tracy Sullivan RECOMMENDED ACTION City Council: 1. Receive an update regarding the City of Santa Clarita's ongoing recovery efforts following the August 24, 2026 structural fire in Old Town Newhall. 2. Authorize the City Manager or designee to enter into a Letter of Agreement with the Old Town Newhall Association for the implementation of an Old Town Newhall Shop Local Marketing Campaign and approve a one-time transfer of $40,000 from Contingency Account (1009300-701001) to Business Development and Retention Account (1003500-516105). 3. Provide direction to staff regarding potential beautification efforts along the fire -affected properties on Main Street, including: a. A proposed community art wall consisting of a wood -framed fence with paintable panels featuring artwork by local artists; b. Direction on the artist and art selection process for the community art wall; and c. Holiday-themed decorative screening installed over the existing construction fencing, along the Main Street frontage, for Light Up Main Street and throughout the holiday season. 4. Provide direction to staff regarding a potential expansion of the SENSES Block Party series in 2027, including the number of events and location of the event footprint, to encourage additional visitation and support businesses in Old Town Newhall. Page 1 Packet Pg. 9 O BACKGROUND On August 24, 2026, a three -alarm structure fire occurred along the 24000 block of Main Street in the Old Town Newhall Arts and Entertainment District, significantly damaging several commercial properties and impacting businesses, employees, artists, performers and property owners. At its August 25, 2026, Regular Meeting, the City Council expressed its support for the businesses and individuals affected by the fire and requested that City of Santa Clarita (City) staff evaluate opportunities to assist with recovery efforts. Since that time, the City has focused on supporting those directly impacted, helping affected businesses move toward recovery, maintaining activity and visitation throughout Old Town Newhall, and facilitating the longer -term rebuilding process. These efforts have included direct business and employee assistance, coordination with regional and state partners, support for the arts community, targeted shop -local efforts, and ongoing coordination with affected property owners. The following summarizes actions implemented since the fire, ongoing recovery efforts, and additional opportunities for City Council consideration. RECOVERY EFFORTS IMPLEMENTED Following the fire, the City has conducted direct outreach to affected businesses and property owners, established dedicated City points of contact, and connected businesses and employees with the Los Angeles County Department of Economic Opportunity (County DEO), Small Business Development Center, America's Job Center of California, and other partners for business counseling, financial and recovery planning, reemployment services, and other available support. These efforts included several multi -agency meetings with individual business owners, a September 23 Rapid Response Resource Workshop for affected employees, and coordination regarding potential U.S. Small Business Administration (SBA) disaster assistance for businesses that have been directly and indirectly impacted. The City also assisted The MAIN's affected productions with identifying alternative performance locations and supported audience communication of relocation information through The MAIN's website and social media. To encourage continued visitation and support businesses throughout Old Town Newhall, the City expanded the September SENSES Block Party, added Old Town Newhall businesses to the Open Rewards program, offering 5 percent cash back at participating businesses, and updated the Old Town Newhall website to include information on ways to support Old Town Newhall through privately organized fundraising efforts. RECOVERY EFFORTS UNDERWAY The City continues to coordinate with affected business and property owners as recovery and redevelopment efforts advance. This includes coordination with County DEO and state partners Page 2 Packet Pg. 10 O regarding available disaster assistance, as well as assistance with relocation, development review, and permitting. Staff also continues to assist and promote relocated performances while evaluating options for replacing The MAIN. PROPOSED OLD TOWN NEWHALL SHOP -LOCAL MARKETING CAMPAIGN Staff recommends entering into a Letter of Agreement with the Old Town Newhall Association (OTNA) to provide $40,000 for an OTNA-led shop -local marketing campaign, in collaboration with the City. OTNA's established relationships with and representation of district businesses and ongoing role in promoting Old Town Newhall make it a natural partner to lead this effort. City funding and collaboration would expand the reach of these efforts and support coordinated messaging throughout the recovery period. The campaign would reinforce that Old Town Newhall remains open for business and encourage residents and visitors to shop, dine, and support businesses throughout the district. Funding would support paid marketing and advertising, photo and video content production, and printed marketing materials and collateral. If approved, $40,000 would be transferred from the City Council Contingency account, which currently has a remaining balance of $110,000. PROPOSED COMMUNITY ART WALL Following the fire, community members have expressed interest in using art to improve the appearance of the fire -affected properties during the recovery and rebuilding period. In response to this feedback and concepts shared with the City, staff has evaluated the feasibility of constructing a temporary community art wall along the properties. Based on this evaluation, the following outlines options and estimated costs for the wall's dimensions, as well as a proposed process for selecting participating artists. Wall Dimensions The community art wall would consist of a wood -framed fence with smooth, exterior -grade paintable panels. A six-foot wall provides sufficient space for artwork and screening while minimizing construction costs. If the City were to take the lead to construct the wall, staff evaluated three preliminary configurations: • Approximately 300 linear feet along the Main Street frontage, at an estimated cost of approximately $130,000 • Approximately 440 linear feet along Main Street and Market Street, at an estimated cost of approximately $187,000 • Approximately 715 linear feet along Main Street, Market Street, and Railroad Avenue, at an estimated cost of approximately $313,000 Page 3 Packet Pg. 11 O The estimates include construction and artist supplies and materials and assume a six-foot wall located primarily on private property, contingent upon property owner approval. If the property owner approval cannot be obtained and the wall must instead be located within the public right- of-way, the current estimates would not apply. A right-of-way installation would require additional engineering and construction considerations and is anticipated to significantly increase project costs. The completed wall would be available for future use in Old Town Newhall as rebuilding occurs. Artist Selection Process The wall would be divided into individual sections and would have artwork centered around an Old Town Newhall theme. The size and number of artist sections would be determined based on the number of qualified artists interested in participating and through the artist selection process. Staff is seeking direction from the City Council on the process to determine the art and artist, which could range from an informal selection process to the City's Public Art Planning and Selection Process through the Arts Commission. Based on City Council direction, staff would coordinate with the affected property owners as necessary, solicit bids for construction, and begin an artist selection process. Interim Holiday-Themed Decorative Screening As an interim measure, staff proposes adding holiday-themed decorative screening to the existing green construction fencing along the Main Street frontage of the fire -affected properties. If approved, staff would develop the design and coordinate installation along the Main Street frontage in conjunction with Light Up Main Street and throughout the holiday season. The decorative screening would provide a near -term enhancement to the appearance of the fire - affected properties while the longer -term community art wall is developed, pending City Council direction. SENSES BLOCK PARTY The City's SENSES Block Party series is held on the third Thursday of each month, April through September, from 7:00 p.m. to 10:00 p.m., on Main Street, between Market Street and 6th Street. The series draws residents and visitors to Old Town Newhall for themed entertainment, activities, food, and local businesses. As part of the City's continued recovery efforts, staff is seeking City Council direction regarding a potential expansion of the SENSES Block Party series in 2027. This could include adding additional months to the series; while November and December have Light Up Main Street and other holiday programming, the series could be expanded to springtime months or October. Each edition of SENSES costs approximately $20,000 for equipment, supplies, and staff time. Additionally, the location of the event could shift to another block on Main Street to encourage visitation and support businesses throughout Old Town Newhall. Page 4 Packet Pg. 12 O ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT Approval of the recommended action will result in a one-time transfer of $40,000 from the City Council Contingency account (1009300-701001) to the Business Development and Retention account (1003500-516105) for the Old Town Newhall Shop Local Marketing Campaign. The City Council Contingency account currently has a remaining balance of $110,000. Costs associated with the proposed site beautification efforts will depend on City Council direction regarding the scope of the community art wall. Staff will return to the City Council with any necessary funding actions following Council direction. Costs associated with a potential expansion of the SENSES Block Party series in 2027 will depend on the number and scope of additional events. Staff will develop estimated costs based on City Council direction and return to the City Council with any necessary funding actions. Page 5 Packet Pg. 13