The Santa Monica Planning Commission has unanimously approved a development agreement amendment that will allow the RAND Corporation to expand commercial uses at its underutilized headquarters building at 1776 Main Street, while securing $5.5 million in community benefits for the city.
The amendment enables RAND to sell or lease significant portions of its 326,170-square-foot building for business and professional offices, creative offices, research and development facilities, and ground-floor retail uses. The current agreement restricts the building to "institutional office" use essentially limited to RAND-like entities.
"RAND really is Santa Monica," said Commissioner Nina Fresco, emphasizing the organization's historical significance to the city. "RAND came out of Douglas Aircraft and is really one of the defining moments of Santa Monica today."
The nonprofit research organization has occupied the five-story building since 2004 under a development agreement that runs until 2055. However, post-pandemic work patterns have dramatically reduced building occupancy, creating what RAND officials described as an inefficient use of resources.
"We now have an average of 225 people coming to a building where we have 800-plus assigned and where 1,300 could work," said Jeremy Rawitch, RAND's Director of Communications and External Affairs, during the public hearing. Pre-pandemic, approximately 700 people came to the office regularly.
Under the amendment terms, RAND will pay the city $3.5 million upon approval and an additional $2 million after Coastal Commission approval or when the property is used for new purposes. The organization will also continue its $40,000 annual contribution to the Santa Monica Early Childhood Lab School through 2065.
Amanda Honda, director of the Early Childhood Lab School, testified that RAND's support is crucial. "Without this money, we couldn't fund the tuition assistance and the tuition subsidies that are so vital to the families that participate in the program," Honda said.
The amendment also includes a provision requiring RAND or future owners to pay the city 4.6% of any sale price if the buyer is exempt from the city's Measure GS transfer tax, ensuring the city receives comparable revenue.
City staff commissioned an independent economic study projecting substantial benefits from increased building occupancy. The analysis estimates $3.3 million annually in various city taxes and $25 million in transfer taxes under Measure GS if the building sells at expected prices, totaling approximately $130 million over the development agreement's life.
"This represents both opportunity cost and also an opportunity to win for RAND and the city," Rawitch explained, noting that unlocking unused resources would allow RAND to invest more in independent research while creating economic benefits for Santa Monica.
The proposed uses align with the city's Land Use and Circulation Element goals for the Civic Center District, which calls for "a diverse mix of uses and activities" including government, residential, retail, and office uses.
Several RAND employees spoke in favor of the amendment, emphasizing how reduced occupancy has affected workplace dynamics and the organization's mission.
"Allowing us to lease or sell would free up critical resources to support the kind of research that supports our communities and informs social policy," said Sangeeta Ahluwalia, RAND's Associate Director of Healthcare.
The amendment allows up to 40% of the building's floor area for wet laboratory use and includes provisions for ground-floor retail, restaurants, and business services that could activate the surrounding area.
Planning Commission Chair Samuel Tolkin noted that RAND representatives reported no opposition to the proposal through stakeholder briefings or public comments.
The item now advances to the City Council for final consideration on July 29, followed by Coastal Commission review. The amendment extends the original development agreement term by 10 years to November 2065.
RAND, founded in Santa Monica in 1948 as a spinoff from Douglas Aircraft Company, conducts nonpartisan policy research on national security, health, education, and other public policy issues.
