Council introduces ordinance to amend public-art fee program, including $1 million cap and payment deferral option

The City Council on March 18 introduced an ordinance to amend the municipal code’s cultural development (public art) requirement to expand flexibility for developers: permit split compliance (on-site art plus an in-lieu payment), cap the in-lieu fee at $1,000,000, and allow fee payment to be deferred to final inspection or certificate of occupancy.

Community Development Director Michael Allen summarized the item, noting the cultural development fee program was adopted in 2019 and staff previously presented program updates. Allen said the planning commission considered multiple alternatives at its February 13 hearing and recommended the three amendments now before council.

The three specific changes are: (1) allow applicants to partially satisfy the requirement by producing on-site artwork and paying the in-lieu difference; (2) establish a $1,000,000 cap on the in-lieu fee; and (3) permit applicants to defer payment until final inspection or issuance of a certificate of occupancy, whichever is applicable. Allen told council staff and the planning commission considered but did not recommend other fee-splitting structures beyond the proposed approach.

The El Segundo Chamber of Commerce submitted a two-paragraph letter supporting stakeholder engagement and said the Chamber surveyed members and will share feedback; the letter was read into the record by the clerk.

Council closed the public hearing and Keldorff introduced the ordinance; council will consider the ordinance’s second reading and potential adoption at the next regular meeting. No final adoption occurred at the March 18 meeting; the item was introduced for a subsequent hearing.

Staff noted future discussions with stakeholders about program administration and implementation may follow the ordinance introduction.