REQUEST FOR CITY COUNCIL ACTION
DATE: 06/05/2024
TO: Honorable Mayor and City Council Members
FROM: Community Services Department
SUBJECT:
Title
PERFORMING ARTS FEASIBILITY STUDY PHASE II
End
EXECUTIVE SUMMARY:
This report asks the City Council to consider the findings of a Performing Arts Center Feasibility Study that evaluates the feasibility of developing an additional performing arts venue within the city and/or renovating the Historic Civic Center to become the City’s premier performing and visual arts center and provide direction to staff on whether to proceed with the construction of a new $210M+ Performing Arts Center.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Provide direction to staff to continue with efforts to renovate and improve programming at the Historic Civic Center and surrounding grounds.
b. Forgo the construction of a new Performing Arts Center at this time.
Body
BACKGROUND & HISTORY:
The Historic Civic Center (HCC) Theatre has served as the City of Corona’s primary theatrical venue for performing arts for several decades. The HCC Theatre can seat 379 people and is ideal for smaller performances. Over the years, many residents and arts and culture groups have expressed a desire to develop a larger performing arts venue in the community that can accommodate shows with seating closer to 1,500.
In 2021, the City Council adopted the City of Corona Strategic Plan, which included an objective to increase support for the local art community. Activities include “developing an additional performing arts venue in the community and/or renovating the Historic Civic Center to become the City’s premier performing and visual arts center.”
In April 2023, the City Council approved a Professional Services Agreement with Steinberg Hart for the Performing Arts Center Feasibility Study to examine the demand, construction costs, operating costs, programming models, and potential locations for a Performing Arts Center (PAC).
In November 2023, Phase I of the feasibility study was completed and presented to the City Council. The Phase I study included an overview of stakeholder outreach, an analysis of the surrounding market, and an assessment of the HCC Theatre. City Council directed staff to move forward with Phase II of the study and provide a full assessment of the costs, locations, and programming models prior to deciding whether or not to develop a new PAC.
In March 2024, the City Council directed staff to proceed with an ambitious revitalization effort of the 6th Street corridor, including a full renovation of the HCC building and surrounding grounds.
ANALYSIS:
Staff has reviewed the feasibility study prepared by the consultant and considered options to enhance support for the local arts community. A new 1,500-seat PAC would be a wonderful facility in Corona. While the desirability of this venue is not in question, a careful assessment of the construction costs, operations and maintenance costs, and practical site constraints presents significant challenges. An assessment of each option is provided below.
Option 1 - Renovate and Modernize the HCC. A full renovation of the HCC and surrounding grounds is estimated to cost in the range of $50 million. The building is a historic structure, is well used, is well-loved, and has been identified in the City’s Strategic Plan to be preserved for use as a visual, performing, and culinary arts center today and for future generations. As such, it is recommended that the City continue on its current course to renovate the HCC and surrounding grounds. The rationale supporting this recommendation includes:
• Cost. The project is already funded as part of the overall downtown revitalization efforts and can be funded within existing revenue streams and funding levels.
• Alignment. The project is consistent with the downtown revitalization plan, and compliments existing revitalization projects currently underway.
• Preservation. Additional investment in this building protects and preserves an existing city asset for the long-term use and enjoyment of the community, at a centralized location in the downtown 6th street corridor area.
Option 2 - Renovate the HCC + Build a New PAC. Adding a 1,500 seat PAC would cost approximately $210 million, according to the consultant’s estimates. Cost alone makes this proposal infeasible. The $210 million required to construct a facility of this type, in addition to the $14 million annual debt service to fund the construction plus an estimated operating subsidy of $1.5 million annually, is simply cost prohibitive for the City based its current and projected financial capacity when considering its collective priorities and projects underway.
Cost aside, the study identified three potential locations. An analysis of these sites generated additional concerns:
• HCC Plaza. The HCC was identified as a feasible site for developing an 80,000 SF PAC with a 1,100-seat theater. Concerns exist regarding the building footprint size and associated impact on the HCC site due to having a large facility immediately adjacent to the HCC. A building of this size would largely dwarf the HCC. Parking at this site is also already a challenge for a 379-seat venue, let alone a 1,100-seat venue.
• North Mall. The north mall was identified as another site option for the potential development of a 115,000 SF PAC with a 1,500-seat theater and a large ballroom. The site could also incorporate other mixed-use amenities including retail, entertainment, and residential. A PAC located at this site would require structured parking to support the center, add an additional $25 million-$35 million to the overall project costs. Without a parking structure, the center would be acutely under-parked, creating access and congestion problems, especially considering the intense peak demand on parking for shows. Land acquisition would also add millions more to the overall project cost.
• Dos Lagos. Of the three potential locations, only Dos Lagos is seen as a viable option in terms of location. This option proposes a 115,000 SF PAC with a 1,500-seat theater and a large ballroom. Parking capacity would still be challenging, but space exists for additional structured parking at the facility if the property owners to choose to construct it. A center of this type would also provide a positive synergy with the surrounding restaurants and retail shopping that would be supported with the additional draw of a PAC. The property owners have expressed interest in a potential partnership with the City to construct and operate the PAC. However, such a partnership would require a multi-million dollar annual subsidy from the City.
In conclusion, considering the city's financial capacity, current projects, revenue projections, and estimated costs of a new performing arts center, the costs exceed the city's funding capacity. As such, it is recommended that the City proceed with renovating the HCC and forgo the construction of an additional performing arts center.
FINANCIAL IMPACT:
There is no additional financial impact associated with the recommended action. Costs associated with recommended projects have been evaluated as part of the recommended projects, and they have been evaluated as part of the previous council action.
ENVIRONMENTAL ANALYSIS:
This action is exempt under Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may substantially affect the environment, the activity is not subject to CEQA.
PREPARED BY: Donna Finch, Director of Community Services
REVIEWED BY: Justin Tucker, Assistant City Manager
APPROVED BY: Jacob Ellis, City Manager
Attachments:
1. Exhibit 1 - Performing Arts Center Feasibility Study Phase II
2. Exhibit 2 - Presentation