Commission recommends ordinance to let developers split art-in-lieu payments, caps fee at $1 million

The El Segundo Planning Commission on Jan. 23 voted 3-0 to recommend City Council approve amendments to the city’s Art in Public Places provisions (El Segundo Municipal Code Title 15, Chapter 34) that would allow developers to split the existing one-percent public art fee between cash and art, cap the cash-in-lieu at $1,000,000 and change when payments are due.

Staff said the city has required either a payment or the provision of public art on developments with redevelopment valuation of at least $2,000,000 since February 2019. Under the proposed amendments, a developer could, for example, pay part of the fee in cash and provide onsite or other approved artwork for the remainder; staff said the Cultural Development Committee and staff would review and value proposed art contributions.

The proposed ordinance would also cap the cash-in-lieu amount at $1,000,000 even if the one-percent calculation exceeded that figure. Staff told commissioners the cap arose from a City Council direction that revisited a conversation from 2019; council members discussed different cap levels before settling on $1,000,000 as a starting point.

Commissioners discussed how the cultural development fund has been used and its balance. Staff said receipts have varied: in some years the in-lieu collections were about $28,000 and in other years totaled roughly $1.9 million; annual programming budgets have generally been on the order of $350,000, supported by a fund balance that smooths year-to-year variance. Staff said funds in the cultural development fund are restricted to programming and art-related items specified in the ordinance and guidelines.

Commissioners asked about the valuation and approval process for artwork offered in lieu of cash. Staff said proposed art and its valuation go before the Cultural Development Committee (ACC) for review under the city’s Cultural Development Guidelines; the committee evaluates medium, location, artist credentials and public accessibility and makes recommendations to council. Staff confirmed the committee has authority to recommend approval, modification or denial.

A motion to adopt Resolution No. 2961, recommending City Council adopt the ordinance amending Title 15, Chapter 34 (Cultural Development) to allow split payments, cap the cash-in-lieu at $1,000,000 and change payment timing, passed on a roll call vote: Commissioner Christian, Commissioner Inga and Vice Chair Maguire each recorded “aye.” The motion passed 3-0.

Staff told the commission the commission may offer recommendations on the ordinance language and that City Council will consider the commission’s recommendations before final action.