Staff Report.Public Art Funding
PREPARED BY: Robert Schultz
Town Attorney
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Community Development
Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL REPORT
MEETING DATE: 4/20/2020 ITEM NO: 13
DATE: April 12, 2021
TO: Mayor and Town Council
FROM: Robert Schultz, Town Attorney
SUBJECT: Introduction and First Reading of an Ordinance of the Town of Los Gatos
Amending Chapter 25, by Renaming it to “Revenue and Taxation” and Adding
Article VII, Sections 25.70.010- 25.70.140 of the Los Gatos Town Code Entitled
Public Art Funding
RECOMMENDATION:
Accept public comment and then move for the introduction and first reading of an Ordinance,
by title only, amending Chapter 25, by renaming it to “Revenue and Taxation” and adding
Article VII, Sections 25.70.010-25.70.140 of the Los Gatos Town Code entitled Public Art
Funding.
BACKGROUND:
In January of 2016, Town Council approved the Arts and Culture Commission’s strategic plan,
which identified public art, funding, and community engagement as its three major goals.
At the April 18, 2017 Town Council meeting, the Commission presented the possibility of
investigating a development contribution requirement for arts funding, also called “public art
funding” or “percent for art,” in alignment with the strategic plan.
On June 19, 2018, the Commission returned to Council with a report and recommendation to
pursue an ordinance designating some percent of building valuation for all private development
projects to fund public arts programs. Council directed staff to obtain further information and
so, through a request for proposal process, Keyser Marston Associates produced an analysis in
PAGE 2 OF 4 SUBJECT: Introduction and First Reading of an Ordinance of the Town of Los Gatos Amending Chapter 25, by Renaming it to “Revenue and Taxation” and Adding Article VII, Sections 25.70.010- 25.70.140 of the Los Gatos Town Code Entitled Public Art Funding DATE: April 14, 2021
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BACKGROUND (continued):
a Private Sector Arts Contribution Program report (Attachment 1).
At the September 3, 2019 Town Council meeting, Council directed the preparation of an
Ordinance for Public Art Funding.
DISCUSSION:
A robust public art program fosters economic development, creates vital public spaces, and
promotes general health and welfare by contributing to a more desirable community in which
to live, work, and recreate. Well-conceived and executed works of art that are integrated into
their sites and accessible to the public enhance the value of development projects, create
greater interest in leased space, promote cultural tourism, create a sense of place, and make a
lasting visible contribution to the intellectual, emotional, and creative life of the community at
large, thereby helping to mitigate the impacts of development. The experience of public art
makes public areas of buildings and grounds more inviting and engaging.
There is a growing national trend of including private developments in a public art funding
requirement by ordinance. In California, more than 48 cities have such an ordinance or policy.
Several surrounding jurisdictions in the Bay Area have implemented a percent for art funding
structure attached to development within their borders. Some cities have threshold building
valuation or size minimums before such a requirement would be imposed, and some have caps
after valuation reaches a certain amount. Some cities exempt certain projects. Some cities,
such as Walnut Creek and Pasadena, offer no valuation minimums or project exemptions at all.
Please see Attachment 1 for the table of art requirements in various municipalities prepared by
consultant Keyser Marston. Almost all the cities with private development art programs offer
an option for the developer to pay fees to a Public Art Fund in lieu of providing on site art. Fees
are used for other Public Art acquisitions and programming.
To analyze what projects would be appropriate for a percent for art requirement, the Keyser
Marston report notes that, due to its built-out status, the Town processes comparatively few
new non-residential building permits. Accordingly, it was the opinion in the Keyser Marston
report that, for viability of the program, it is not practical to impose square footage minimums
or building valuation minimums. Given the developmental realities in Los Gatos and with input
from the Arts Commission, the draft Ordinance recommends that a 1% percent for art funding
requirement attach to all commercial and mixed-use development, both new construction and
reconstruction/remodel that adds more than 50% square footage, and all residential
development of three or more units, not including Accessory Dwelling Units (ADUs) or Junior
Accessory Dwelling Units (JADUs), both new construction and reconstruction/remodels that
PAGE 3 OF 4 SUBJECT: Introduction and First Reading of an Ordinance of the Town of Los Gatos Amending Chapter 25, by Renaming it to “Revenue and Taxation” and Adding Article VII, Sections 25.70.010- 25.70.140 of the Los Gatos Town Code Entitled Public Art Funding DATE: April 14, 2021
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DISCUSSION (continued):
adds more than 50% square footage. Further, there are numerous exceptions in the draft
Ordinance, such as:
(a) This Chapter shall apply to all new commercial developments (including mixed use
projects), including new construction, additions and reconstruction that add more than
50% square footage; and
(b) All new residential projects of three or more units, including new construction,
additions and reconstruction that add more than 50% square footage.
(c) Notwithstanding subsection (a) and (b) above, this Chapter shall not apply to:
i. Affordable housing developments, or, if affordable housing is a part of the
development, the affordable housing units shall be subtracted from the
valuation of the project as in subsection (d) below;
ii. Historic renovations;
iii. Repair or reconstruction of structures damaged by flood, fire, wind,
earthquake, or other disaster;
iv. Seismic retrofit projects;
v. Single family and two-family residential units;
vi. Accessory dwelling units or junior accessory dwelling units;
vii. Any project exempted by federal or state law;
viii. Municipal facilities;
ix. Buildings or structures primarily used for religious worship.
The Draft ordinance also addresses the implementation of the fee during the development
review process and the maintenance requirements for the Art. The effective date for the
Ordinance would be July 1, 2021 and shall immediately apply to all development projects that
have not yet received final land use entitlements.
CONCLUSION:
After accepting public comment, staff recommends that Council move for the introduction and
first reading of an Ordinance, by title only, amending Chapter 25, by renaming it to “Revenue
and Taxation” and adding Article VII, Sections 25.70.010-25.70.140 of the Los Gatos Town Code
entitled Public Art Funding.
PAGE 4 OF 4 SUBJECT: Introduction and First Reading of an Ordinance of the Town of Los Gatos Amending Chapter 25, by Renaming it to “Revenue and Taxation” and Adding Article VII, Sections 25.70.010- 25.70.140 of the Los Gatos Town Code Entitled Public Art Funding DATE: April 14, 2021
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ENVIRONMENTAL ASSESSMENT:
It has been determined that there is no possibility that this project will have a significant impact
on the environment; therefore, the project is not subject to the California Environmental
Quality Act (Section 15061 (b)(3)).
COORDINATION:
This report was coordinated through the Town Attorney’s Office, the Community Development
Department, and the Arts and Culture Commission.
FISCAL IMPACT:
There are no significant fiscal impacts associated with the approval of this ordinance as it will be
a revenue generating ordinance.
ATTACHMENTS:
1. Keyser Marston Associates’ August 23, 2019 Private Sector Arts Contribution Program Report
2. Draft Ordinance Amending Chapter 25, By Renaming it to “Revenue and Taxation” and
Adding Article VII, Sections 25.70.010- 25.70.140 of the Los Gatos Town Code Entitled Public Art
Funding