Council Approves Leasing Guidelines for Pier

By Teresa Rochester

Completing the transfer of key leasing responsibilities from the Pier Restoration Corporation to the City's Economic Development Division, the City Council unanimously approved a set of guidelines for managing leaseholds on the pier.

In a unanimous decision the council voted 5 to 0 (Councilmen Herb Katz and Robert Holbrook were absent) to approve the new rules, which allow the PRC to approve tenants but mandates that the City will actively seek out prospective leasees and present them to the Corporation's board.

While the guidelines mandate that lease renewals or options to extend occupancy to existing or future tenants will not be automatic, council members heeded the call of long-time pier businesses, such as the Boathouse, for special consideration. Last year, the PRC passed up the Boathouse's bid to renew the lease they have held for half a century.

"I think there should be some sort of benefit for long-time tenants," said Councilman Ken Genser.

The council amended the guidelines to give long-time tenants a leg up based on their history, performance and operating capability. The council also added a provision that no tenant should be granted more than one lease to ensure diversity on the world-famous tourist destination.

While most destination areas try to lure national chains to their locations, the new Pier guidelines give lease and license preference to local independent businesses. If the business is granted a lease, the term would likely be for five-years. Longer leases will be offered to businesses that invest in significant improvements to the building or deck area.

Leaseholders also will pay a proportionate share of the City's cost to manage, maintain and provide security to Santa Monica Pier.

Surf View Café and Santa Monica Pier Bait & Tackle, which will be affected by the anticipated restoration of a portion of the breakwater and installation of commercial vessel moorings and vessel landing, will receive automatic month-to-month leases until they are forced to move.

Mark Richter, the City's economic development manager, told the council that the City would focus on attracting more entertainment and commercial uses as opposed to retail stores.

In the wake of the 1983 storms that battered the pier, the PRC -- formed two-years after the storm -- actively sought retail outlets as a means to draw people back to the pier. Today, the nearby Third Street Promenade, has become the City's hot spot for retail.

The City took charge of negotiations and management of pier leases in December, when the council approved a new Service Agreement with the PRC.

The agreement relieves the PRC of hiring outside attorneys to handle negotiations. Instead the PRC will now focus on advertising, event management, planning and development, sponsorships, licensing, marketing, promotions and special events.