The decision concludes a six-month period of exclusive talks. The city will now explore a wider set of options for revitalizing the Civic
The City of Santa Monica has ended exclusive negotiations with a private developer over the future of the long-shuttered Santa Monica Civic Auditorium, citing a lack of financial detail and a need to broaden its approach to restoring the iconic venue.
In a unanimous vote this week, the City Council declined to extend its Exclusive Negotiating Agreement (ENA) with Revitalization Partners Group (RPG), a consortium that had proposed transforming the historic 1958 building into a modern entertainment venue featuring immersive technology, live performances, and new commercial space.
The decision concludes a six-month period of exclusive talks but does not end the possibility of further engagement with RPG. Instead, the city will now explore a wider set of options for revitalizing the Civic, which has been closed since 2013 due to seismic and code deficiencies.
“This isn’t a rejection of the Civic’s revival,” said a city spokesperson. “It’s a recalibration of how we get there.”
Concept Promised Bold Revival
RPG’s preliminary vision, presented in private meetings and later released to the public, proposed a 3,300-seat immersive theater combining live performers and digital avatar projections, along with 14,000 square feet of new retail and dining space. The design aimed to preserve the Civic’s original façade and lobby while adding a rooftop restaurant, flexible park space, and reconfigured parking.
However, despite renderings and design concepts, RPG never submitted a written business plan, financing structure, or operational strategy. The City’s own rough analysis—based on RPG’s verbal presentations—suggested the project would be financially unviable without major public subsidy.
Under optimistic assumptions, staff estimated the plan could produce a 7% internal rate of return (IRR)—below the industry norm for viable developments. Under more realistic modeling, the IRR dropped to 3%, with a negative net present value exceeding $100 million.
A Long Road to Nowhere — So Far
Santa Monica has tried for over a decade to find a financially sustainable way to revive the Civic, which once hosted everyone from Bob Dylan to the Academy Awards. Previous efforts—including RFPs issued in 2010, 2012, and 2019—failed due to the building’s high rehabilitation costs and lack of dedicated parking.
The latest process began in late 2023, when the City received four letters of interest. After vetting, RPG was selected in early 2024 for exclusive talks based on its team’s entertainment industry experience, which includes Make Good Group, Oak View Group, and Live Nation.
But delays plagued the process. Though authorized in July 2024, the ENA wasn’t executed until April 2025, due to prolonged negotiations and requests for deadline extensions. City staff said that even after six months, RPG had not delivered enough information to justify continued exclusivity.
Community Weighs In
The Santa Monica Conservancy and other community groups had urged the Council to extend RPG’s negotiating window, calling the proposal “bold” and “visionary.” In a letter to the Council, the Conservancy praised the design’s compliance with historic preservation standards and urged patience.
“Now is not the time to stop this process,” the group wrote. “Residents want to see this exceptional proposal completed to better understand the financial feasibility and the implications for our city.”
Despite the public support, city leaders expressed concern over the lack of transparency and progress. According to staff, RPG initially restricted the city from publicly sharing the concept designs, even after they were released online.
What’s Next for the Civic?
The Council’s decision means the city can now conduct a comprehensive market analysis and potentially reopen the project to new developers or models of reuse.
Staff will evaluate real estate trends, funding strategies, and land use constraints to inform next steps. Options could include new public-private partnerships, updated feasibility studies, or alternative uses for the site altogether.
The Civic Auditorium, located at 1855 Main Street, is a designated historic landmark. While any future redevelopment must comply with preservation standards, the Council reiterated its commitment to bringing the space back to life as a cultural and community hub.
