Revitalization Partners Group is disputing a city staff report that questions the financial viability of their proposed $360 million Civic Auditorium redevelopment, with representatives calling the analysis "wildly inaccurate" and insisting they are not seeking public subsidies.
"We never saw their math. They never asked us about the math. They never asked us to opine in any way about it, and it's bad math," said Tim Sexton of The Make Good Group, one of the consortium's partners. "Our team are the world experts in live entertainment. And we know the economics of this stuff better than anybody."
The Santa Monica City Council faces a critical decision Tuesday night on whether to extend negotiations with RPG after their six-month Exclusive Negotiation Agreement expired Oct. 8. Council members can choose to approve a six-month extension for continued negotiations, grant a three-month extension requiring accelerated analysis, or terminate the agreement and explore alternative redevelopment options.
Sexton strongly contested city staff's characterization that the project would require public funding, calling it "a mischaracterization in the staff report, just a fabrication, and it's a pretty big mischaracterization."
"We are not asking, and never have asked for a penny. We're not asking for any money from the city, nor any subsidy from the city," Sexton said.
Critics of the RPG deal are advocating for the contract to be canceled and new ideas considered as the city struggles with a pending fiscal crisis.
“The Civic Auditorium could become a modern, flexible concert venue suited for the 21st century,” said an email from advocacy group Santa Monica Forward who have solicited letters opposing the RPG deal. “It could house a convention center or meeting space that addresses Santa Monica's shortage of such facilities. The site could support hotel development that takes advantage of its prime downtown location. Or it could accommodate mixed-use development including housing to help address our housing shortage. Through a competitive process, Santa Monica can discover which use (or combination of uses) best serves the community and generates the greatest public benefit.”
RPG proposes converting the historic venue into an immersive digital and holographic theater with capacity between 2,800 to 3,300 seats, plus 14,000 square feet of new retail and restaurant space. The design envisions preserving historic elements while relocating parking and creating new green space on the former courthouse lot.
City staff's independent analysis suggests the project appears economically questionable without substantial public subsidy, showing negative returns even under optimistic scenarios with 200 shows annually. The report also says the city hasn’t received full information about the project.
“Of note, through multiple meetings and discussions with the City, RPG has not provided a formal project concept that can be shared publicly,” said the staff report. “While RPG has released a proposal for the Civic to the public, they have asked that the plans that were shared with staff remain confidential.”
However, RPG representatives say they have responded to every city request for information and have been working to resolve any questions or concerns.
The Santa Monica Civic Auditorium has been closed since 2013 due to seismic safety concerns, ending a storied run that began when the venue opened in 1958. During its operational years, the auditorium established itself as a cultural cornerstone, hosting the Academy Awards from 1961 to 1968 and welcoming legendary musical acts including Pink Floyd, the Rolling Stones and Elton John.
Despite its cultural significance, previous attempts to find a development partner proved unsuccessful. Earlier redevelopment efforts in 2010-2012 and 2018-2019 failed to materialize, and the city currently lacks the necessary budget and staff to independently reopen the facility. In 2022, the property was declared surplus under the Surplus Land Act, a prerequisite step before leasing or selling civic property.
In March 2025, the City Council unanimously approved the Exclusive Negotiating Agreement with RPG. The consortium includes several entertainment and real estate heavyweights: Geyser Holdings, led by Russell Geyser, who has overseen more than $1 billion in commercial real estate syndications; The Make Good Group, led by Sexton and known for sustainability expertise; The Azoff Company, led by former Ticketmaster and Live Nation CEO Irving Azoff; Oak View Group, headed by Tim Leiweke, who redeveloped Seattle's Key Arena into Amazon's Climate Pledge Arena; and Live Nation, a Fortune 500 company specializing in live entertainment.
The deal nearly collapsed when negotiations stalled over the holidays and January 2025 fires destroyed the homes of two RPG principals. Several RPG leaders shifted focus to organizing FireAid, a benefit concert that raised over $100 million for fire relief and some of its members are still trying to find new places to live. However, Sexton said they are committed to the work.
Sexton emphasized the team's personal connection to the venue and questioned why the city would terminate negotiations when no alternative exists.
"That's where we did some of our earliest and most famous shows,” Sexton said. “One of the most famous ever, of course, is the Eagles live album, which was recorded in Santa Monica Civic."
He called the consortium's assembled expertise rare and valuable.
"This array of people in RPG doesn't grow on trees, you know, to have this group of people all together wanting to save the Santa Monica Civic, and not only save it, but make it an important 21st Century destination for not only West Side citizens and the citizens of Santa Monica, but for people all over the world," Sexton said.