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HomeMy WebLinkAbout2007-02-27 - AGENDA REPORTS - MARTIAL ARTS MUSEUM (2)Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS City Manager Approval: Item to be presented by: DATE: February 27, 2007 SUBJECT: MARTIAL ARTS HISTORY MUSEUM REQUEST FOR LAND LEASE DEPARTMENT: Community Development City Council deny the request for the land lease due to substantial physical and financial restraints that exist on the site, as well as the compatibility issues that may arise with the implementation of the Downtown Newhall Specific Plan themes. Over the last several years, Santa Clarita community member Michael Matsuda has been trying to find a location to house his proposed Martial Arts History Museum in the Los Angeles area. Mr. Matsuda recently discontinued talks with the Los Angeles City Council staff after efforts to secure a location in that city faltered. Mr. Matsuda has also asserted that he feels assured that he will be granted funds through the California Cultural Historical Endowment should he be successful in obtaining a 20 year lease on a property within the next two months. In July of 2006, Mr. Matsuda began meeting with Santa Clarita City officials and attending public meetings in order to publicize his search for a location within the Downtown Newhall area. At the August 22, 2006 regular meeting of the City Council, Mr. Matsuda spoke during the Public Comment portion of the meeting, requesting that the City help him to identify potential properties to locate his proposed Museum. Per the direction of Council, staff worked with Mr. Matsuda to explore potential locations for a Martial Arts History Museum in the Newhall area. At the November 28, 2006 regular meeting of the City Council Mr. Matsuda again spoke during the Public Comment portion of the meeting, presenting a letter to the City that formally requested a 20 -year lease of a City owned property at the cost of $1 per year. At the time he also FP'i Ei requested "start-up costs" in the amount of $40,000. Currently the Council/Agency is only being asked to consider the long term lease. Phase 3b of the the Downtown Newhall Specific Plan identifies an area for a Children's Museum south of 5th street with the option to accomodate future civic uses as opportunities arise. Currently multiple existing uses occupy the identified "Museum" site and substantial investment into the Specific Plan area will need to take place before the targeted use can be supported. Mr. Matsuda has requested the City lease him the northernmost portion of the Newhall Metrolink/Community Center property that is currently unimproved. Unfortunately that land, as well as the rest of the parcels owned by the City surrounding the Community Center and Metrolink station, is in a regulatory floodway. The floodway status of the property in question relegates the land for use as a parking area only, until such time as the flood waters are mitigated. There is no current plan to remove that flood hazard status and accomplishing that goal may take years as well as a substantial financial investment if it is ever to be achieved. Aside from the issues with flood hazard, the property has several other encumbrances that make it difficult to use for anything other than parking. The funding sources that made it possible for the City to acquire the land have been very specific about what it may be used for. Since the land is already being "shared" by two uses, the addition of a third will undoubtedly raise serious concerns from the City's transportation funding resources that could potentially require the City to repay the grants, along with interest and appreciation factors included. The only other City owned properties in the area are currently held by the City's Redevelopment Agency. The former Union 76 station property on San Fernando Road at Lyons, along with the former Moore's Sub Shop on San Fernando Road at 5th Street were purchased with Redevelopment funds in order to use them to either sell to a developer with a plan to create revenue generating commercial and residential mixed-use projects, or to contribute them as "seed" investments into similar projects that may also have direct public benefit along with the benefits of increasing tax increment revenues. At this time none of the properties owned by the City appear to be appropriate for the use proposed by Mr. Matsuda, and the compatibility of this particular theme has not been fully vetted by staff or the Newhall Redevelopment Committee. ALTERNATIVE ACTIONS Other actions as determined by the City Council FISCAL IMPACT Should the Council confirm the recommendation of staff there will be no financial impact on the City. Any use of property by a non-profit use such as a museum would remove that parcel from the tax roles and would impact the amount of tax increment funding available for future projects in the redevelopment area.