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HomeMy WebLinkAbout1993-11-09 - AGENDA REPORTS - SOUTHWEST MUSEUM PROPOSAL (2)AGENDA REPORT UNFINISHED BUSINESS DATE: November 9, 1993 SUBJECT: SOUTHWEST MUSEUM PROPOSAL DEPARTMENT: Community Development BACKGROUND City Manag Item to be LYNN M. HARRISAr/ 1 /.fJu,CU In July, 1993, the City received an Invitation to submit a letter of intent to propose a new location for the Southwest Museum. Staff responded with a letter of Intent to the Museum in early August. At the September 29, 1993, City Council Study Session, staff presented Council with background Information on the museum, and requested direction regarding whether or not to proceed with a proposal. At that time, it was staff's understanding from the "Request for Proposal" (RFP) that the Southwest Museum was primarily seeking land or an existing structure, and that fundraising for the anticipated $35,000,000 cost of constructing a new facility would be borne by Museum sponsors and endowments. Council direction at the Study Session was to stand ready to prepare a proposal If Santa Clarita was Invited to do so, and to Investigate other properties for potential sites. In late September, staff was advised by Mr. Tom Wilson, Executive Director of the Museum, that the City would be advised In a future letter (received on October 21, 1993, attached) regarding the contents of a "competitive" proposal, and that the proposal deadline had been extended to November 30, 1993. The tone of this letter was quite emphatic: Mr. Wilson reiterated the anticipated construction cost of anew facility, and advised that Santa Clarita "would have to demonstrate that [the city] has the population and financial base to raise the funds necessary to build a major museum and the resources to sustain it. Insofar as the private sector cannot provide such a major amount, the Museum would have to he assured that your municipality would provide the rest." Santa Clarita is among approximately 80 communities that submitted "letters of Intent" to the Museum. Staff has been advised that the Museum would look the most favorably upon some form of public-private partnership for land acquisition, fundraising, or both. In light of the Museum's new request for a guarantee of funding, staff considers that financial support for the Museum may have been offered by another municipality. Staff considers that because the process has been changed, that Santa Clarita should not submit a proposal at this time. However, because the Museum may reconsider their fundralsing ability In the future, and change the parameters of the project, staff considers that the City should not close Its doors to the Museum. Attached is a letter acknowledging that It is infeasible at this time for the City of Santa Clarita to continue with a proposal, but should the financial constraints of the project change, we would request to be reconsidered. RECOMMENDATION: Discuss Item, and provide staff with direction to send the attached letter to the Southwest Museum. Attachment: 10/18/93 Letter to George Caravaiho from Tom Wilson; letter of denial to the Museum ouca A,b 119c .cmk pr Agendaliem:� City OI Santa Clarita 23920 Valencia Blvd. Suite 300 City of Santa Clarita California 91355 November 10, 1993 Phone (805) 259.2489 Fax (805) 259-8125 Again, thank you for Including the City of Santa Clarita in your search for a new home for the Museum. Please consider us in any future plans and programs. GAC:CMK: Mr. Thomas Wilson Executive Director Southwest Museum P.O Box 41558 Los Angeles, CA 90041=0558 Dear Mr. Wilson: Jan Heidt Mayor Thank you for your recent letter of October 18, 1993. The City Council has George Pederson considered your comments; In particular with respect to providing the "necessary Mayor Pro -Tem resources" to guarantee the construction of the new facility. Carl Boyer As you suggested, this new consideration presents a considerable challenge to Councilmember Santa Clarita, especially In view of the City's many other pressing budgetary JoAnne Darcy priorities. It Is the Council's decision at this time not to pursue a formal Councilmember proposal to the Southwest Museum. However, should the Museum's plans or project parameters change, we would appreciate the opportunity to be Jill Klajic Councilmember reconsidered. Again, thank you for Including the City of Santa Clarita in your search for a new home for the Museum. Please consider us in any future plans and programs. GAC:CMK: SOUTHWEST MUSEUM OU 21 1993 October 18, 1993 CtyMANA;,crr�.o,r;C George A. Caravalho City Manager 23920 Valencia Boulevard, Suite 300 City of Santa Clarita, CA 91355 Dear Mr: Caravalho, Thank you again for your letter of August 5, 1993, in which you suggest two sites .in Santa Clarita as possible future locations of the Southwest Museum. Both the Valley Gateway site and the Civic Center site sound like potentially good locations for the Southwest Museum. After evaluating your letter, the Board of Trustees of the Southwest Museum identified several areas of concern regarding relocation of the Museum to Santa Clarita. As you know, we anticipate project costs of approximately $35 million to relocate the Museum. To raise such a sum, the Museum has to be in an area with a population and donor base to support such a fund-raising effort. Although there is good access to the area by freeway, and there are other communities nearby from which the Museum would undoubtedly. draw support, you would have to demonstrate that Santa Clarita has the population and financial base to raise the funds necessary to build a major museum and the resources to sustain it. Insofar as the private sector cannot provide such a major amount, the Museum would have to be assured that your municipality would provide the rest. Some of the best proposals that we have received are those where there are creative public-private partnerships. Should you be able to create the sort of public-private partnership that could realize a $35 million project, where if the -private sector' could not provide the necessary resources, the public sector could take up the remainder, you could create a competitive proposal. As you might imagine, the Southwest Museum has received a gratifying response to its Request for Proposal. Over 80 municipalities and other entities from southern California responded to the RFP. In spite of the many attractions of your community and the many, merits of your letter, in view of the response to the RFP and the current economic situation, realistically you probably face a considerable challenge to prepare a competitive proposal. P.O. BOX 41558 9 LOS ANGELES, CALIFORNIA 90041-0558 0 213-221-2164 0 FAX: 213-224-8223 There may of course be factors of which we are unaware or Santa Clarita may be prepared to guarantee substantial project costs. If so, i shall be happy to work with you further to develop a proposal. Many thanks for your interest in the Southwest Museum, and for your reply to the Request for Proposal. Yours. sincerely, Thomas H. Wilson Executive Director