Department of Cultural Affairs

Public Art Committee

Private Percent for Art Program

The following information provides an introduction for developers regarding the Arts Development Fee (ADF). For further information and details regarding the program, please contact the Public Arts Division at 213-202-5555.

Arts Development Fee Ordinance Summary (Municipal Code 91.107.4.6.):

The owner of a development project for a commercial or industrial building for which the total value of all construction or work for which the permit is issued is $500,000 or more, is required to pay an arts fee.

The amount of the fee is calculated by the Department of Building & Safety using the following formulas:

1. Office or research and development. For an office or research and development building, the arts fee shall be $1.57 per square foot.

2. Retail. All retail establishments shall pay an arts fee of $1.31 per square foot.

3. Manufacturing. For a manufacturing building, the arts fee shall be $0.51 per square foot.

4. Warehouse. For a warehouse building, the arts fee shall be $0.39 per square foot

5. Hotel. For a hotel building, the arts fee shall be $0.52 per square foot.

In no event shall the required arts fee exceed either $1.57 per gross square foot of any structure authorized by the permit or one percent of the valuation of the project designated on the permit, whichever is lower, as determined by the Department of Building and Safety. Where there are combined uses within a development project or portion thereof, the arts fee shall be the sum of the fee requirements of the various uses listed above. Developers should contact their Department of Building & Safety Plan Checker regarding Arts Development Fee calculations.

Developer's Options for Arts Development Fee Compliance

The Arts Development Fee process permits two options for developers. At the time the developer is assessed an Arts Development Fee by Department of Building and Safety, they have the option of either paying the fee at the plan check counter at the Department of Building and Safety when they pull their building permit, or entering into an advance agreement with the Department of Cultural Affairs that a department approved art program or project will be executed for the amount of the fee.

Option One, Paying the Fee at Building & Safety:

A developer can fulfill the Arts Development Fee requirement by paying the fee at the Department of Building & Safety when he or she pays other permit fees, and “pulls” the building permit.

In the event that a developer has decided to pay their Arts Development Fee at the counter at Department of Building and Safety, there will be no opportunity for a subsequent refund. By paying their fee, the developer has performed the full and final satisfaction of the Arts Development Fee for the development.

Fees paid at the counter are deposited into a special Cultural Affairs Department fund and play an important part in allowing us the ability to provide arts and cultural services to the community. Arts Development Fee funds are used to support arts projects, facilities and arts educational programs available to the end users of the development site. They are not added to the general city fund.

Option Two, Entering into an Advance Agreement with the Department of Cultural Affairs:

Developers have the option of completing a Departmentof Cultural Affairs approved arts project for the value of the Arts Development Fee obligation. Examples of such projects include creation of a public artwork at the development site, or support of non-profit arts organizational activites.

The Department of Cultural Affairs will meet with the developer to ascertain their project interest and assist in formulating a project for fee compliance. If you are a developer contemplating a project for compliance of an Arts Development Fee, it is essential that you contact the Department of Cultural Affairs right away so we can answer questions and begin the process prior to your "pulling" permits.

When a developer is contemplating and pursuing permits for construction on a building, the developer works with a Plan Checker at the Department of Building and Safety. The Plan Checker will calculate any pertinent fees and then will supply this calculation to the developer. There is a period of time in which the developer is aware of the fees (including the Arts Development Fees) prior to the payment of those fees at Building and Safety.

It is during this period that the Department of Cultural Affairs has the opportunity to work with the developer to enter into an advance agreement and issue compliance paperwork, which can be given to Building and Safety when the other fees are paid at the counter. In this case, Building and Safety will accept the compliance paperwork as proof of fee compliance. The developer will then not pay the fee at that time.

In order for the Department of Cultural Affairs to issue the compliance paperwork, the developer must enter into a prior agreement that a project approved in advance by the Department of Cultural Affairs will be executed. The developer must also provide the Department of Cultural Affairs with copies of the Permit Application and a financial security in the form of a Letter of Credit or Certificate of Deposit for the amount of the fee. The department will keep this security, to be returned to the developer after the timely completion of the project. Once these steps have been completed, the department will issue the developer with fee compliance paperwork to be given to Building and Safety.

Please contact the Public Arts Division at 213.202.5544 for further assistance.

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