The changes aim to revitalize the underutilized property, which has seen reduced occupancy due to post-pandemic hybrid work trends
The Santa Monica City Council approved an amended development agreement with the RAND Corporation on Tuesday, paving the way for new retail, dining, and office uses at its 326,170-square-foot headquarters at 1776 Main St., while securing $5.5 million in community benefits, city officials said.
The updated agreement allows RAND’s existing building, constructed in 2004, to expand beyond its original “institutional office” designation to include general and creative offices, media production, limited life sciences research, retail shops, restaurants, convenience markets, banks, and personal services like salons. The changes aim to revitalize the underutilized property, which has seen reduced occupancy due to post-pandemic hybrid work trends, with only about 225 employees using the building daily, roughly 25% of its capacity.
“This agreement ensures RAND’s property remains a vibrant part of our civic center, supporting local businesses and community needs,” Mayor Lana Negrete said in a statement.
RAND will contribute $5.5 million to the city’s General Fund in two payments: $3.5 million upon agreement execution and $2 million within three years, triggered by events such as Coastal Commission approval or new property uses. Additional financial benefits include a 4.6% payment on the first property sale if exempt from the city’s Measure GS tax, and a right of first offer for the city to lease unused parking spaces. RAND will also continue its annual $40,000 contribution to the Santa Monica Early Childhood Lab School through 2065 to support low-income families, extending a prior commitment.
The council also adopted an amendment to the Civic Center Specific Plan to align with the new uses, ensuring consistency with the city’s Land Use and Circulation Element goals for a mixed-use district. The project is exempt from further environmental review under the California Environmental Quality Act, as it involves no new construction or expansion of the existing building.
Originally approved in 2000, the development agreement restricted the site to institutional office use after RAND sold 11.3 acres to the city, now home to Tongva Park and the Civic Center Village Project. The new amendment extends the agreement’s term by 10 years to 2065 and removes leasing and transfer restrictions, allowing RAND to lease more than 15,000 square feet or sell the property to non-institutional users.
