Emergency Grant Program / Council District Two / FY 2019-2020 Arts Development Fee / Expenditure Plan and Fee Status Report / COVID-19 Pandemic

MOTION-- Art and performance are critical to the economy and fabric of Los Angeles. Unfortunately, the COV1D-19
pandemic has devastated this industry. Public health guidelines have closed theaters, halted filming, and
stopped large gatherings altogether. These major disruptions have led to mass layoffs and have the
potential to erase an entire sector if urgent action is not taken, both Citywide and specifically in Council
District 2.

The Noho Arts District in Council District 2 has the second largest concentration of theatres in the United
States, which present more than 500 shows per year, host roughly 35 acting classes on any given night,
and provide entertainment to over 20,000 people throughout the year. Many NoHo theatres survive
month to month. Without the revenue from shows, classes, rentals, and ticket sales, these professional
theatres could close their doors permanently within the next 30 to 60 days. This creates a domino effect for
Noho restaurants, bars, and other local businesses rely on theater patrons, actors, and employees for 
significant portion of their sales

Currently, Council District 2 maintains approximately $349,000 in Arts Development Fee (ADF) revenues.
According to die ADF ordinance (LAMC Section}, ADF guidelines, and the Nexus Report, the
fees can be used for cultural and artistic facilities, services, and amenities that are accessible to all
members of the public. In order to preserve the Noho Arts District, it is necessary to reallocate existing
CD2 ADF revenues to a new Council District Two Emergency Grant Program that will assist live
performance spaces with operating expenses through the COVID-I9 pandemic.

I THEREFORE MOVE that the Council INSTRUCT the Department of Cultural Affairs with assistance from
the City Attorney's Office to develop guidelines for a Council District 2 Emergency Grant using the
following parameters;

(l) Eligible organizations Include both for-profit and nonprofit live performing arts
located in Council District 2 with under 50 employees, including sole proprietors,
Independent contractors, and the self-employed.

(II) The program will allocate $8,000 individual grants to live performing arts venues that can
be used for operating capital in return for a virtual publicly accessible performance, lesson
or workshop and/or a certain number of free, publicly accessible performances, lessons or
workshops upon re-opening.

I FURTHER MOVE that the Council APPROVE the reallocation of $200,000 from Council District 2 from the
art project commitments and associated findings identified in the FY 2019-2020 ADF Expenditure Plan
and Fee Status Report to the new Council District Two Emergency Grant Program.