VIEW Q2 2014 Art + Real Estate = ?! by scharchitecture

2nd Quarter 2014

Art +Real Estate =_

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SFO • PUBLIC ART • ICONS OF PLACE

I N SIDE T H IS ISSUE

2014 BOARD

706 Mission Street/Aronson Building

SFO and the Arts

Icons of Place

The Value of Art in Corporate Spaces

Public Art

What is an Art Consultant

Restaurants Report

Art and Real Estate

California Conference

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THE VIEW EDITORIAL STAFF Editor Editorial Review

Donna Schumacher Yrene Chan

Contributers

Alexandra Daraby Krystal Grubb Miriam Pelosi Donna Schumacher Danielle Fox and Shelley Barry

Tessa Wilcox & Christine Sanford Deborah McCarthy Julie Jacobson Debbie Leiffer

Cover photograph: Amy Ellingson, Large Variation: Floating World Grouted 2’ x 2’ sample; overall dimensions 10’ x 108’ 8 ½” Fabricated by Mosaika Art & Design, Montreal Commissioned by the San Francisco Arts Commission

Nancy Lundeen

Lisa Bottom

Partner | Allen Matkins Leck Gamble Mallory & Natsis LLP President

Design Director, Principal | Gensler Director, Communications

Laurie Gustafson

Lora Estabrook

Partner | Sedgwick LLP President-Elect

Director of Business Development CB2 Builders Director, Sponsorship Committee

Helen Duong

Lada Kocherovsky

Lease Administration Manager Boston Properties, LP Past-President

Associate Principal Page & Turnbull Architects Director, Membership

Stacie Goeddel

Samantha Low

Partner | Holland & Knight LLP Secretary/Delegate

Project Manager, Special Projects Group. Hathaway Dinwiddie Construction Company Director, Programs

Jeanne Madden Regional Controller Boston Properties, LP Treasurer/CFO

Alaine Raven Business Development Manager First American Exchange Company Director, Community Affairs Team

A NGE L P R O FI L E

DONNA SCHUMACHER Principal | Donna Schumacher Architecture

What it does: Architecture, Interiors and Art consultation HQ: San Francisco Founded: 1992 Background: Master in Architecture from University of Pennsylvania, Philadelphia, MFA in Sculpture from California College of the Arts, Oakland; Architect of record for San Francisco Camerawork, San Francisco Art Commission Gallery, Project Architect for Graham Gund Associates in Boston. CREW: Member 2011 to present, VIEW Editor, 2012 to present. Charities: San Francisco Zen Center, SevenTeepees First Job: Junior draftsman for Cleveland Clinic Foundation Extracirricular Passions: Long Distance Running, Meditation, Fine Art, Travel, Arts Journalism, Cities Travel Tip: If I am traveling to the third world, before walking out the door of my house, I take off every piece of jewelry that I typically wear every day, my gold bracelet that my father gave me, my great grandmothers ring, even my earrings. Like shedding a skin, it allows me the opportunity to walk unencumbered by former expectations. It was suggested to me as a way to slip easily into different worlds without causing attention to the inevitable disparity of wealth. On a lighter note, a box of flaxseed power bars are a nice alternative when the only thing on the menu is lizard tail... Recent Travel Highlight: Denali State Park back country, Alaska Top Pic SF Restaurants: Alta CA, Lolo, Bar Crudo 15 Seconds of Fame: I was on the first plane out of Beijing after the Tienamen Square disaster in 1989, and ran Boston in 2013. Birthplace: Rochester, M.N. © 2014 CREW SF. All submissions are subject to editing for clarity and brevity, unless otherwise noted.

In 1966, the San Francisco Redevelopment Agency (SFRA) and the Board of Supervisors designated the Yerba Buena Gardens neighborhood as an urban renewal target, a new Arts District that would enliven a key piece of urban real estate while protecting the cultural diversity of a world-class city. Since that time, Yerba Buena Gardens has made incremental yet dramatic changes, and has indeed emerged as a vibrant cultural center for San Francisco. The opening of the Moscone Convention Center (1981), the creation of Yerba Buena Center for the Arts (1993), the relocation of SFMOMA to the neighborhood (1995) and the addition of The Contemporary Jewish Museum (2005), among other notable developments, have all contributed to a neighborhood renaissance. Moreover, with the numerous galleries, shopping areas, theaters, high-end hotels and residential towers that have followed the area has become one of the most dynamic and bustling in San Francisco for live, work, or play. The last major piece of the cultural puzzle is The Mexican Museum, which was identified as a new addition to the area in1993. That’s when the Redevelopment Agency designated property adjacent to 706 Mission Street for the museum’s new home. The Mexican Museum, initially located in the heart of San Francisco’s Mission District, was founded in 1975 by local resident and artist Peter Rodríguez. The museum was the realization of Rodríguez’s vision that an institution be created in the United States to exhibit the aesthetic expression of the Mexican and Mexican-American -- later expanded to reflect the evolving scope of the Mexican, Chicano and broader Latino experience. In 1982, The Mexican Museum moved to Fort Mason Center in the Marina District, where it currently has a permanent collection of over 15,500 art objects. This spectacular collection is unique in the nation and includes Pre-Hispanic, Colonial, Popular, Modern and Contemporary Mexican, Mexican-American, Latin American, Latino, and Chicano art. The museum has since become affiliated with the Smithsonian Institution, the nation’s largest museum network. Thus, with the Yerba Buena site tapped for a permanent home, design began for what would be the largest Mexican museum in the United States. However, fundraising for the effort stalled, and nearly two decades passed.

historically important Aronson Building at 706 Mission Street, immediately adjacent to the museum site. Having successfully developed other projects in the area, Millennium Partners believed in the centrality and popularity of the neighborhood and was keenly interested to find a site for a new residential project.

“It just wasn’t our time,” said Andy Kluger, chairman of The Mexican Museum’s Board of Trustees. “But we never relinquished our dream of a world-class jewel of a museum in Yerba Buena Garden Arts District.”

“Teaming up with The Mexican Museum provided the perfect opportunity to create an integrated, mixed-use building near a large number of important cultural institutions,” said Sean Jeffries, Vice President of Millennium Partners.

Then, a few years ago, Millennium Partners entered the picture.

The partnership also allowed Millennium Partners to increase the number of residential units by developing a residential

Millennium Partners, a national firm that had recently built and opened the nearby Four Seasons Hotel, set its sights on the

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Fine art is a priority at SFO. From its architecture to its permanent museum displays, the works shown are carefully selected to enrich the passenger experience of more than 44 million annual visitors. SFO’s love affair with art began following the launch of their official Public Arts Program in 1977. Since then, it has expanded to encompass purchased and commissioned works with rotating exhibitions. Two distinct programs realize SFO’s art: SFO Museum and San Francisco Arts Commission. The SFO Museum, started in 1980, is run by its own dedicated full-time staff of curators, registrars, designers, and preparators. In 1999, the museum met a new benchmark by receiving official accreditation from the American Association of Museums. The SFO Museum has twenty-five sites throughout the airport, only nine beyond security checkpoints. More than 90,000 commercial aviation artifacts and books make up the museum’s permanent collection. The pieces are typically displayed in glass cases, but there are always exceptions to the rule with a few large-scale pieces. For example, Ethan Estess’ Last Dive at Farallones, an eight foot whale fluke sculpture made of reclaimed plastic foam, wood, and rope on display in Terminal 3. The San Francisco International Airport’s public arts program is provided by a city agency, The San Francisco Arts Commission (SFAC). The agency is wellknown for its commissioned pieces at the airport, but may not know they currently hold the most valuable collection of over 100 works in San Francisco outside of the city’s museums. Its backbone is rooted to local Bay Area artists with a significant number of works in the collection from California artists. Because the SFAC’s program started in the 1970s, the airport’s collection consistently encompasses major movements from the 70s to date. Commissioned pieces for the airport start with a national request for quotation, or RFQ, by the SFAC. The selection process is layered with a series of panels and representatives. “Because it’s an open, public process women have been able to really prove themselves,” says Susan Pontious, Program Director for the San

Francisco Arts Commission. “Public art has allowed women the opportunity to really get out and do major works at a major scale. Fifty-percent of arts commission contracts are to women.” Commissioned works at Terminal 2, completed in 2011, Norie Sato and Janet Echelman’s pieces meld and augment with Terminal 2’s environment today. Air Over Under, Sato’s exterior façade installation of 120 laminated glass pieces, draws on our senses of perception. Every Beating Second, Echelman’s three netlike sculptures float 120’ in circumference from the ceiling at Terminal 2’s postsecurity space. From indigo to purple, and magenta to red-orange lights, the three sculptures of braided fibers and knotted tects needed something in this space and twine glow at night. the artist dealt with the practical problems. Terminal 3’s Boarding Area E opened in They created art that makes a moment.” January 2014 with floor to ceiling glass as well as many new commissioned and mu- The San Francisco Arts Commission is seum art pieces. When Gensler’s architects currently coordinating six new pieces, and designers envisioned a light feature at including a 10’ x 109’ mosaic by Amy the end of Boarding Area E they presented Ellingson. Of Ellingson’s work, Melissa potential artists a challenge with a space Mizell, Design Director with SF Gensler’s brightly daylight from floor to ceiling glass. Terminal 3 East team, says “the design is Sky, a collaborative installation by Franka based on creating a separate living room Dienhnelt and Claudia Reisenberger from where the mosaic will be the expanse of Merge Conceptual Design, is a series of the wall. It’s important to add moments of 27 mirror-polished stainless steel spheres. delight to the passenger experience, and Each sphere varies in size and holds an art does such a great job with this.” The LED light source that subtly shifts in color mosaic will be installed later this year along and light. This creates an optical effect with the five new commissioned pieces. distorting the proportions of the spheres About the Author themselves. “Like the sunset sky, when Krystal Grubb is a designer you are in the space and look up you can in the architecture studio at experience the artificial light contained in Gensler in San Francisco. the globes,” says Pontious. “The archi-

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Photo description: “The Bay Lights”, Western span of the Bay Bridge, San Francisco CA. Light display by Leo Villereal, Organized by Illuminating the Arts, Ben Davis, 2013 to 2026(?), the baylights.org

City centers are attracting unprecedented numbers. People want to live and work in the heart of the downtown, close to culture, amenities, and public parks. Big cities, particularly ones with a visible history have become the happy epicenters of this shifting demographic. After years of neglect and disuse, suddenly downtowns are filled with people biking to work, parents walking with strollers, workers grabbing a beer after work and couples ambling home hand in hand after a romantic night on the town. Why? In an age dominated by technology, community is increasingly established through a shared system of values. While at first this trend might seem at odds with the close physical proximity of urban living, it is in fact a direct by product. Historic downtowns naturally express a predefined character through their classic materials, turn of the century architecture and their inherent stories. This historic architecture becomes the signifier for the shared values of the communities of a technologically based society. Contemporary architecture therefore has a more challenging task. Residential complexes, office interiors and even historic cityscapes are more than ever in need of the establishment of a sense of place that goes beyond mere functional space. Placemaking is defined as the intentional effort to build the experience, quality and character of a place based on the culture of

the community. Art has the unique potential to manifest community ethos in physical form. How? On the scale of a city, this zeitgeist of desire is well illustrated by the Bay Lights project along the Bay Bridge in San Francisco. Not funded by a public agency, nor sanctioned by a major cultural institution, Bay Lights was the unique synergy of the creative culture of San Francisco on a multitude of levels. The shimmering light display has anchored the Bay Bridge as a significant landmark and increased the allure of the entire Embarcadero waterfront. Paid for almost entirely by donations from local businesses, these donors consistently cite the project as an investment in the city, an investment in a cultural cachet that has quantifiable monetary value. In what way? For the individual development, Avalon Bay Developers targeted their residential project AVA 55 9th Street toward the Millennials attracted to Tech Corridor employment along newly developed Mid Market. The establishment of a sense of community was a key branding element to their newly constructed project. For the architecture design by Solomon Cordwell Buenz (SCB) of Chicago, this meant amenities such as shared gathering spaces with large comfortable chairs and wifi access (not dissimilar in design to work spaces of the technology companies located near by), dog washing areas, a bike repair shop, and athletic facilities. (continues on page 14)

THE VALUE OF ART IN CORPORATE SPACES:

Exposure to art at work has shown to encourage creativity and productivity, promote morale and open dialogue in the workplace. Although art plays an important role in sparking creativity in our society, few companies realize the potential of a uniquely tailored art program to enhance their goals as a business. A study conducted by the Business Committee for the Arts Inc. (BCA), a non-profit founded by David Rockefeller to link art and business, and the International Association of Professional Art Advisors (IAPAA), surveyed 800 employees from 32 companies operating in the US. The study found that the overwhelming majority of employees agree that art reduces stress and encourages discussion and expression of opinions, with 94% of employees agreeing that art enhances the work environment. Furthermore, 73% of those surveyed said their view of the company would change negatively if the art in their workplace were removed. In addition to enhancing the workplace for employees, the presence of art in a corporate space sets a tone that communicates the values of the ownership. This tone helps to convey a commitment to the arts community and to cultivating a creative workplace. Both public art and permanent collections help establish a company as a community participant and as a thought leader when it comes to creative workspace. For building owners, incorporating art in gathering spaces such as lobbies and or outdoor plazas can stimulate interaction and make a location stand out as a place-making landmark in the community. Public art gives people a sense of ownership of a space and can remind people to be more attentive to what’s around them. It also becomes a really important vehicle for civic dialogue, and cultural enrichment. Public art programming can vary from commissioning a large outdoor work, acquiring permanent pieces for the lobby or curating a rotating exhibition program. These types of public art projects expose both employees and visitors to artwork in ways that wouldn’t be possible in the typical working day and environment. Artwork that promotes conversation and that reveals itself over time is the most effective and worthwhile. “Beyond our strong belief in the critical role of arts and culture in our lives every day; we endeavor to foster a sense of community in our buildings. The rotating art exhibit promotes tenant interaction as individuals share their impressions of the art, and it transforms a path-of-travel into a point of connection.” Deborah Boyer, Senior Vice President of Asset Management at The Swig Company. There is also a strong synergy between art and architecture. The integration of site-specific works of art in developments has proven a successful vehicle for helping to define public spaces, establishing a destination for the visitor, and demonstrating an investment in the cultural life of the community. Art can be a distinguishing factor

Photography credits: http://www.nhbca.com/news_031208_workart.php Benedict, Sharon L. and Roper, Doug. (2006, May 14). Art in the workplace benefits both employees and company. San Antonio Business Journal. Retrieved from http://www. bizjournals.com/sanantonio/stories/2006/05/15/focus2.html?page=all

that reinforces the unique profile of a property. Jeanne Myerson President and CEO of the Swig Company, in discussing the Mills building’s rotating exhibition program says they started the program, “to differentiate ourselves from our property management competitors.” “While this program has been a long-standing and important component of our commitment to tenant service, it further connotes our commitment to creativity, which is completely congruent with business success.” Selecting or commissioning art for these types of projects requires scholarship and vision. The vital role of the art consultant is to establish a direction for an art program that reflects the mission of the company or the culture of the ownership helps translate the vision into a successful art program. About the authors

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Tessa Wilcox is a Principal and Co-Founder at Artsource Consulting in San Francisco.

Christine Sanford is a consultant at Artsource Consulting in San Francisco.

POINT OF

VIEW

Such is the power of public art that it is iconic on its own merit as well as part of the canon of the city.

century development is artwork. Artwork, particularly contemporary art, has sky-high appreciation and unprecedented resale value according to auction data publicly available and statistical compilers. Private developers—as well as public ones—are encouraged—and sometimes mandated--to acquire artwork and use artwork in a public ways as part of project budgets under a network of local, regional and national economic and tax incentive packages. In the 20th Century, these packages were commonly referred to as “Percent for Art Laws,” whether or not they existed as “laws” on the books.

Photo description: Cloud Gate by British artist Anish Kapoor sited in Millenium Park, Chicago, on the AT&T Plaza, the artist’s first public outdoor work installed in the United States. Image copyright: Anish Kapoor. Photo copyright: City of Chicago

Pulse of Development Anyone who has visited Chicago since 2004 knows the power of public art in a public place, whether or not they know the name of the artist who created the 110ton, 66 foot long elliptical sculpture called Cloud Gate that anchors downtown’s Millenium Park. Children, arts aficionados, suits, retired folk, tourists, and just about everyone else who traverses the Park expresses delight and awe at Cloud Gate’s mirrored stainless steel surfaces, reflectivity and monumentality. Cloud Gate was created by British artist Anish Kapoor for Chicago, that architectural city of the midWest, but it belongs to the global culture that inhabits and visits Chicago. People in Chicago don’t meet at Millenium Park; they meet at Cloud Gate. Such is the power of public art that it is iconic on its own merit as well as part of the canon of the city.

Money, Value, and Market Appreciation: the $$$ Value of Public Art The big reveal for real estate industry growth is artwork. The real estate industry is replete with metrics, values and appraisals, long on sales-lingo and re-sale gains, and focused on development, redevelopment and realty renewal opportunities. But the money metric patois of 21st

The look, feel and overall appearance of the American urban landscape in the last 30 years is iconized by major public art commissions that source to development projects. AD The objective is to provide public art, or a monetary equivalent dedicated to cultural purposes, as part of private real estate development projects. Examples abound within the USA and beyond. CEO Tony Hsieh of Zappos.com linked public art as an anchor to the multimillion dollar ongoing Las Vegas Downtown Project, a real estate development and cultural plan viewed as part of a grander urban revitalization. The concept of public art was front and center with the display of an interactive installation by sculptor Johannes Girardoni at the 2014 annual TED event in Vancouver, Canada, a technology, entertainment and design conference [hence the TED acronym] begun in the 1980s by American architect and designer Richard Saul Wurman, and populated today by innovators from the USA and elsewhere conceptualizing and implementing interdisciplinary synergies.

Developer Query: What’s In it For Me, or Why a Developer Would Add Artwork as Part of Project Strategy Re-sale value is only one calculable metric in development decisions to use public

Photo description: Detail of “Bouquet “ (2013) by Korean artist Choi TaeHoon installed at Ssuheo Center, a 30-story complex in downtown Zhengzhou,China, designed as an “Art Space” to introduce the concept of public toChina, as part of the Central Land Corporation’s development project. Image: Choi Tae Hoon. Copyright. 2013. Courtesy of Baik Art, California

art as part of the project. Some public art plans offer financial or tax incentives. Artwork, when art is positioned as a cache, has--in addition to monetary value with potential market appreciation-many immeasurable financial benefits as well as non-economic, value-added attractants for the developer. These include appeal to future buyers, anchor tenants and other lessees, as well as bolstering, or re-vitalizing the economic health and identity of the locality (which in turn may spur more development, business uptake, and prospering sub-economies). Public art: • attracts buyers, anchors and tenants • brands buildings/projects • forges or revitalizes community identity • functions as a crucible for media and publicity • creates social media buzz, trending and promotion • enhances developer as good community citizens • enables liaisons with creative community (continues on page 12)

An art consultant is a specialist who provides art programs for public spaces, businesses, and private collectors. An “art program” might be defined as a selection of artworks that has been created especially for the client, taking into account their particular taste, values, physical space, and budget. Art programs include both permanent acquisitions, and rotating exhibition programs.

KEY TO SUCCESS

Many factors are important to the success of an art consulting project. The clearer you are about your own project before you approach an art consultant, the smoother the process will be. You may want to begin by considering the following:

mous names that will impress, even if it means paying a premium? Are you more interested in local and emerging artists? Or are you looking for value-driven options like open-edition giclees and poster prints?

WHAT YOUR ART CONSULTANT WILL BRING TO THE TABLE

(1) Values: The more you know about your culture and corporate values, the better you are going to be at communicating those values to an art consultant. For example, a tech company might want art that communicates that they are innovative, out-of the box thinkers. This would result in a very different program than one created for an investment firm who has been in business for over 100 years and wants to communicate that they are traditional, trustworthy and have significant assets.

All art consultants should bring this set of important skills and resources to the table:

(2) Project Types: Clarify what type of project you are planning:

• Determining the scale of the work needed, taking into account the size and shape of the wall, architectural proportions, and distance from the viewers.

a. Fine art purchase for an existing or newly-renovated commercial space: permanent acquisition of higher-end and larger-scale contemporary artworks. b. Every-day artwork that serves to complement office décor: Purchase of less-expensive original artworks by emerging artists, limited editions, photographs or poster prints. c. Rotating exhibitions: Appropriate for public lobbies in class A office buildings and active corporate campuses. These temporary exhibitions keep the environment activated, engaging and fresh, and they can satisfy a broader range of tastes.

• Understanding the client’s values and taste and translating those to art genres and styles. • Determining the number and placement of art works needed, taking into account the flow of traffic and architectural focal points.

• Determining the ideal media and designing framing solutions, taking into account lighting constraints, window positions, and wall construction. • Knowing where to find art that will satisfy the client’s needs, whether directly from artists’ studios, from art publishers, galleries, or from other art dealers. • A network of reliable subcontractors who support their projects including art handlers, framers, shippers, display system purveyors, and agents who specialize in art insurance.

d. Large scale public art for new construction: commissioned for a plaza, exterior, or lobby, often part of a percent for art program, permanent investment.

• Project management skills to see a program through from scope development, budgeting, research, and presentations to the acquisition, delivery and installation.

(3) Timing: What is your time line for the project? Is there an important date or event for which you want to have art installed? Sometimes at the end of the fiscal year, clients are in a hurry to purchase art with remaining funds. Other times, they are simply seeking a quote, in order to budget for art purchases the following year.

One thing that all art consultants have in common is that they love their work, because they love art, they love people, and they are passionate about bringing the two together, knowing that they are enriching the lives of everyone who will come into contact with the artwork they place.

(5) Decision-makers: It is important to identify decision-makers early in the process, as changes to an approval committee can derail a project part way through, leaving everyone with the sense that effort has been wasted. Your art consultant should meet with the final decision-makers early in the planning process.

Danielle Fox and Shelley Barry are Prinicipal Partners at SLATE Art Consulting, a full-service agency based in Oakland that provides art programs for acquisition and exhibition throughout the Bay Area. Shelley Barry is a member of the East Bay CREW and sits on their Programs Committee. www.slateartconsulting.com

(6) Budget: How much are you willing to spend in total? How much are you willing to spend for key pieces? Do you want fa-

About the Authors

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RESTAURANT

REPORT

San Francisco has an international reputation for its beauty as well as its fine cuisine, so it comes as no surprise that there would be restaurants catering to a desire for both. The inclusion of fine art in the design of a restaurant interior engages the senses alike creating a memorable experience for the eyes and taste buds. From the more contemporary (Wexler’s at 568 Sacramento Street), to the whimsical (Grand Café at 501 Geary Street) and the historical (Pied Piper Bar at 2 New Montgomery Street), these three examples illustrate the varying ways that this combination can create stunning results. The charcoal canopy flows over the diners the full length of the room an allusion to smoke from the pit at Wexler’s. Or, is the ceiling sculpture an allusion to the ribs on the plate? It’s left to the diner to draw their own conclusions as they embrace the smoke infused BBQ menu. Certainly the chef is something of an artist with skills used to infuse items from eggs to pie, as well as more traditional ribs. he ceiling art (designed by architecture and design firm Aidlin Darling Design) has a practical function. The sound lessoning acoustic properties contribute to the convivial atmosphere in this modern, almost too clean compact setting. the ceiling art also have practical function, some acoustic qualities to contribute to a convivial atmosphere in this modern, compact setting. Whimsical sculpture of three giant frolicking rabbits greets patrons on arrival at Grand Café in the entrance to the comfortable bar lounge. At the entry to the formal dining room fanciful hedgehogs welcome you, and acrobatic rabbits reach to the ceiling among the diners. These enchanting bronze sculptures by Albert Guibara add a sense of joy to the French café atmosphere of the rooms. The joy radiating from the sculptures cannot be ignored and adds immeasurable to the atmosphere of celebration. Wonderful accoutrements in an inviting, long establish restaurant where “The French café meets San Francisco’s gilt age.”

Wexler Restaurant, photography by Matthew Millman. Architecture by Aidlin Darling Design.

Palace Hotel. This renowned American enhances the clubby atmosphere conpainter and illustrator is known for his tributed to by the polished paneling and use of saturated hues and idealized neo- comfortable chairs. classical style. The vividly blue Pied Piper About the Author was originally commissioned for the 1909 Deborah McCarthy serves as reopening of the Palace Hotel, followthe Director of Commercial ing the 1906 earthquake and fire. Valued and Industrial Property The Pied Piper by Maxfield Parrish hangs today at close to $5 million dollars, the Management for McLellan prominently above the bar inside the painting dominates the north wall, and

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Estate Co. based in Belmont, Ca.

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tower in the space above the museum. For The Mexican Museum, Millennium Partners’ involvement gave the institution the financial backbone for the construction, providing the jumpstart that the languishing Yerba Buena move needed. The museum’s new location will be on four floors of a Millennium-owned residential building at 706 Mission. Millennium will also restore the historic Aronson Building as part of the project. Moreover, Millennium’s decision to donate $5 million to the museum’s endowment fund provided the kick-off needed to move the museum forward on fundraising. Mexican architect Enrique Norten of TEN Arquitectos is responsible for designing the museum’s interior and exterior – four floors and a focal point entry – while Handel Architects will design the exterior tower at 706 Mission Street. The museum project will be overseen through a joint venture between A+D Architecture and Design and Pfau Long Architecture, local firms who have signed on as the museum Architect-of-Record. A+D has designed several structures for cultural and nonprofit organizations, including projects in the Mission District. Handel, which will be the Design and Architect-of-Record for the tower and the museum’s shell, has worked on several structures in New York, Boston and San Francisco, including the World Trade Center memorial in New York. The firm also would be responsible for rehabilitation of the historic Aronson Building as part of the project. The final building design will reflect the winning nature of this collaboration. By working together, The Mexican Museum and Millennium Partners have been working on designs

Pivotal Keystone to the 706 Mission Street Project Located at 706 Mission, the ARONSON BUILDING was constructed in 1903 and survived the 1906 Earthquake and Fire. This San Francisco historic treasure was designed by architects Hemenway & Miller in the “Chicago Style” and is therefore listed as a Category 1 building in San Francisco. Page & Turnbull is serving as preservation architect for the rehabilitation of the Aronson Building. Their scope included a rigorous entitlement process allowing for the removal of non-historic additions, new openings on the north façade, a new roof top garden, and the adjacent construction of a new tower. Their scope also included a Historic Structures Report. As part of the rehabilitation, Page & Turnbull will lead efforts to repair the façade which features decorative terra cotta, a sheet metal cornice, cast iron pilasters, and a Colusa sandstone cornice. 706 Mission will be home to The Mexican Museum on the retail level floors and will anchor the adjacent tower designed by Handel Architects and developed by Millennium Partners to the streetscape on Mission.

that allow for a more efficient and multifaceted building. Street frontage will be maximized by providing cultural and retail uses at the ground level, allowing the project to be interactive along the entire Mission Street façade. Perhaps the greatest benefit of the design, though, will come from The Mexican Museum’s entry on Jessie Square, which will help complete the activation of the plaza and fill the key missing component of the Yerba Buena Gardens development. The residential tower, in turn, will provide activity aroundthe-clock as residents enjoy the many restaurants and other amenities in the neighborhood. The architectural design of the project is as complex as the area it inhabits and the program it serves. It will tie together the “old” of the Aronson Building and the “new” of surrounding projects such as the St. Regis and the Four Seasons, by interweaving portions of a contemporary glass façade with the stone cladding and punched windows of a classical building. The tower will be broken up into slivers of the two alternating façade treatments to reduce the overall mass, and the top will be tapered, reflecting the articulation of the nearby 140 New Montgomery building. As such, it will blend in with the existing fabric of the neighborhood. Groundbreaking is expected to take place in early 2015. The projected grand opening date for The Mexican Museum is set for 2018.

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About the Author Miriam Montesinos is Of Counsel at the Pelosi Law Group, a boutique law practice with a focus on land use and real estate. Donna Schumacher, co-author.

The intersection of art and real estate can take many forms. Large scale public art becomes the component that can tie a building into the community. Storefront galleries provide ground floor interest that can increase foot traffic and support retail attraction in emerging neighborhoods. Artists have fed the transition of economically depressed areas into vibrant destination districts. These phenomena are still relevant in the development world today, but there is another role for art and artists that is growing. No longer seen as window dressing, or providing the catalyst for gentrification that results in displacement of the very artists who created the transition, the new vision integrates art and artists into the very fabric of community and business development for long term collaboration. The Bay Area is home to some of the most creative individuals and companies in the world and the current real estate boom has been greatly influenced by the expansion of leading edge companies. These companies have one foot firmly planted in commerce, but are dependent upon a more expansive vision and fostering new ways of viewing the world. How do you feed this type of creativity? A number of influential companies have decided that one way to keep fresh ideas flowing, is to incorporate art and artists into the fabric of their businesses. A number of technology companies have artists in residence interacting with engineers and other creators on a regular basis.

The physical environment needs to support the expansion of businesses populated by individuals who seek stimulation and innovation, not just in their work life, but in the multiple environments they populate. It is within this context that we find new opportunities and new models for turning bricks and mortar into space that supports this new type of interaction. When businesses that rely on original thinking and new ideas are looking for locations, they are attracted by the environment that will give them an advantage in attracting the best and brightest. One way to manifest this energy is by integrating the work of artists, and the artists themselves, into the “workplace”. Previously, having an interesting gallery space and art studios on site, would have provided the “amenity” that could set your project apart. Having visual access to works of beauty and their creators provided an edge. In our new world however, this type of static interface isn’t really enough. The new model requires that there is real and meaningful interaction between the individuals who occupy various roles (artists, entrepreneurs, developers, designers). This is accomplished by creating space that promotes communication and collaboration, and implementing programs that foster this interplay. Not every business is large enough, or has the bandwidth, to develop and manage the complex ecosystem for which the titans of Silicon Valley are known. This provides an opportunity for real estate developers to create intentional communities that meet these same criteria. Focusing on tenant mix has long been the foundation of retail development and can be expanded into other venues. This

complementary mix that includes artists and creative entrepreneurs, benefits tenants and owner, and the neighborhoods and communities they inhabit. This new wave of reverence for the cutting edge, and seeing the world differently, has also brought new opportunities for organizations that program for the “creatives” in our communities. Rather than incorporating art and artists into an environment where business dominates, we are seeing real estate projects in which the arts organizations and artists are the predominant actors. New ways of offering space, such as coworking, promotes cross pollination of ideas between individuals and breaks down physical barriers to collaboration. Even more important is the infrastructure to curate this interaction as part of the overall management process. Projects established to serve the needs of artists for work and creative space often have the programming in place to support creative processes and interaction with the community. Some businesses and individuals are willing to pay a premium for space that includes integration with creative entrepreneurs. This supports the long term sustainability of the projects, and bodes well for their ability to adapt as new trends emerge. When you put the artists at the forefront, the sky is the limit.

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About the author Kim Edmonds Frentz, President and CEO of Ventura partners, Ventura Partners provides professional development consulting and property management services, offering comprehensive support for property owners and tenants.

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A new public space has recently been built in front of MACLA.

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The Public Art Calculus: Costing the Public Art Project The calculus varies among ordinances, policies, and programs, but generally speaking a percentage of hard construction costs of the development are established as the budget cost for the art project; the percentages also vary, but can range from 1% to 5%. The costing usually functions as a cap for all costs, and is not equal to the price of the art, or the price the artist is paid; in short, all related and incidental costs are subsumed, including fabrication, insurance, transportation, installation, engineering, experts, consultants, materials and the like.

Exemptions and Exclusions: Who’s In? Who’s Out? Some real estate developments projects are exempt, and some laws and policies have threshold qualifications that exclude projects by permit valuation, size, and purpose. The percent laws and set-asides vary, as stated above, so it is necessary to investigate any that might impact the particular venue and the specific private development project. Typically industrial and commercial development is exempted under regulatory schemes where the project does not meet a financial threshold, whether that number is $5 million or $10 million, and however the development valuation is determined. Single use dedicated properties like churches, hospitals and schools ordinarily are exempt. Realty used exclusively by non-profit organizations in furtherance of their missions, premises used for purposes that relate to national security, or hazardous, infectious or toxic materials, and singlepurpose use residential development are typically excluded.

Public art is a draw for the project and the development team, and may ultimately contribute to new project financing. A healthy portfolio is one banks invest in and hedge funds take risks on. AD Object or Realty? Artwork is personal property in the parlance of law, insurance and financing. But not always. When artwork is incorporated or “attached” to the building or structure

Photo description: Metaspace V2 featured in 2014 at TED Conference is an interactive immersive light-soundscape that empowers public perception by the use of innovative sensor technology that imbues light with sound, the type of aural and visual stimuli that creates a cache in 21st century public spaces. Image: Johannes Girardoni. Copyright. 2013. Courtesy of Girardoni Studio.

in a permanent and inseparable way (in legal terms, when the object “appertains”), then the artwork, with some exception, is deemed part of the realty. In short, there are actually two avenues for real estate developers to increase investment potential—as well as cultural cache—using art as an integral part of the project: standalone personal property or real property. The legal protections differ. No developer should even think about buying, installing or commissioning public art without reckoning on the conundrum of 21st century copyright. The more integrated and successful the public art project, the greater the need for clarity of the ownership rights in the copyright. Gotham City was surreally aglow in the movie, Batman Forever, conjuring up veritissimo and contributing to the box office appeal. But Gotham was actually a building on Figueroa Street in Los Angeles, and the Bat Gates were created by a public artist under a percent for art program administered by the now defunct California Redevelopment Agency. The artist sued Warner Brothers for copyright infringement, claiming his public art design of a street wall, futuristic pillars, bat-shaped gates, light treatments and other features enhancing the building were copyrightable artworks copied and used in the film set design and promotional movie merchandise , without credit or payment. The studio claimed it received permission from the owner of the Los Angeles-based development company that then-owned the building.

The issue, ironically, is that a successful public art integration into a development project is a potential for copyright claims if the public art agreements do not specify the rights. The studio contended that the public art was so integrated into the architecture and the design that the copyrightable features of the artwork could not be separated from the utilitarian features of the lights, gates, street walls and other architectural components. The copyright concept of “conceptual separability” in this context means that the protected copyrightable expression cannot be extracted from the unprotected utility of the work, and therefor is not protected. The Ninth Circuit Court of Appeal agreed with the studio, and an infringement claim was not successful. The take-away for developers is that the project team’s lawyer needs to know how to evaluate the public art in terms of its intellectual property anatomy in the context of the overall project, as well as how to array the IP rights, and obtain the appropriate licenses and assignments.

Stewardship: Hidden Costs of Maintaining Cultural Cache and Artistic Legacy The urban landscape needs to be sustained as much as farmer’s fields, but in the case of public art, it can’t lie fallow. Graffiti, trespass, defacement, and related city realities like pigeons, pollution, the homeless, vandals result in public spaces and artworks being exposed to potential stress. The biggest public art scandal in the 20th century was the deconstruction, and midnight removal, of internationally acclaimed artist Richard Serra’s monumental sculpture Tilted Arc. The sculpture in New York’s federal plaza was described by detractors as a collection area for the the pigeon colonies of southern Manhattan and their detritus. Maintenance and conservation plans need to be discussed with the artist and builders during the conceptual stage, so that appropriate materials, and satisfactory alternatives, can be explored in terms of aesthetics as well as durability and feasibility. Ordinary wear and tear is not actionable by an artist as a matter of (continues on page 13)

Every two years, the CREW California chapters from San Francisco, Silicon Valley, East Bay, Sacramento, Inland Empire, Los Angeles, Orange County and San Diego join together for business opportunities, networking, and to hear about the overall issues facing California and its impact in our industry. This year, nearly 200 people attended the event from April 24 – 26 at the Hyatt Regency San Francisco. As the growth of technology in the last decade continues to be heavily impacted by real estate professionals and businesses worldwide, the tagline of the conference – Evolve:2014 – came to represent this year’s theme. The dynamic event started with a Welcome Reception at the Hyatt Embarcadero on Thursday, April 24th, with optional dinearound tours. Friday’s programs included representation from well-known people at pioneering organizations like DropBox, VMWare, AutoDesk, RealConnex, RealtyMogul.com, RealCrowd, Auction.com, and

(continued from page 12) moral rights, but by contract, artists and agencies can—and often do-- require developers and owners periodically to inspect, protect, maintain, conserve and safeguard public art. All parties need to be realistic about costs and practicalities. In addition to periodic assessments, reasonable conservation plans calling for 3-5 year condition reports and treatment analysis are important aspects of stewardship. Regardless of cost, some raw materials and construction techniques simply cannot endure in pristine shape, or even good condition, in perpetuity. The Christopher Columbus sculpture in Columbus circle anchoring the massive Time Warner building was subject to intensive analysis to treat its pitted surfaces and surface losses. Contemporary conservation measures in 20102012 revealed earlier restorations that experts could not completely overcome, even with modern technology and new techniques.

From left to right: Jennifer Hafner, Lisa Stockert, Clancy Simon, Helen Duong, Julie Jacobson, Valerie Concello

LoopNet, among other pronounced organizations. Notably, Congresswoman Jackie Speier took the stage as the opening speaker, providing an informative overview of the large issues facing California today as the commercial real estate industry continues to change so rapidly. There was also an optional leisure tour on Saturday to Wine Country– Cheers to those who decided to stay around for even more networking!

Who Should the Developer Pick for the Public Art Team? A successful public art project is a creative collaboration among professionals, and both the developer and the creative team are entitled to the best legal expertise. From ground zero conception through implementation, the project requires a holistic and integrated analysis and approach. An art lawyer can navigate the complex, intertwined, and often interdependent issues of construction, public safety, negligence, access, egress and ingress, insurance, modifications and alterations, maintenance, copyright, trademark, moral rights, and more. The public art team should consist of the developer, the architects, including landscape architects, an art consultant, a communications and media consultant, a project manager, and an art lawyer. Obviously as the project develops and an artist is selected, the artist becomes a central member of the team.

This event proved to be a great opportunity to meet and build relationships with friends, colleagues, clients, and potential business partners. Be sure to be on the lookout for upcoming events throughout all of our regions in California. About the author

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Julie Jacobson, Treadwell and Rollo

About the author Alexandra Darraby is principal and founder of the Art Law Firm. A significant part of the expertise of the practice is devoted to public art. Clients of the Firm include private developers, artists, architects, designers and governmental agencies. In the USA and abroad, Ms. Darraby has extensive experience in negotiating, commissioning and contracting public artworks and urban development projects. She is consulted on insurance, risk management, valuation, real property and intellectual property laws, moral rights, and duties of care. Alexandra Darraby is the current chair of New Media for the American Bar Association International Section, and its former chair of Intellectual Property, a member of the Executive Committee for the California State Bar, International Law Section, a consultant to developers, studios, production companies, governmental agencies, and others, a court-appointed expert witness, and author of the comprehensive treatise, ART ARTIFACT ARCHITECTURE & MUSEUM LAW, 17th edition published in April 2014 by Thomson Reuters West.

(continued from page 5) Architecture to create a space unique to their values, mission statement and community. For the entry area, rather than the traditional reception desk, the visitor is greeted by an inviting collection of comfortable seating indicative of a welcoming atmosphere of collaboration. The kitchen is located directly opposite this reception area to enable employees to grab a frothy cappuccino from the kitchen for newly arrived guests or long winded meetings. The main working space is separated only by sliding translucent walls, and as such is easily visible to workers in the primary space, known as the bullpen. Photo description: “And My Room Still Rocked Like a Boat on the Sea (Caruso’s Dream)” by Brian Goggin and Dorka Keen, photograph by Michael Rauner

Photo description: SF District Map Table for Stearns Consulting.

For the art selection, Avalon Bay enlisted Black Rock Arts Foundation (of Burning Man fame) a community based choice from the start. Enhancing the city mandated One Percent for Art requirement with a added grant from BRAF, Avalon went beyond the required public art quota embracing the potential of art in their branding of place. The cascading waterfall of wire glass and steel pianos cantilevered from the building is a highly visible and theatrical work, calling attention to itself as the iconic representation of place. The work by artist team, Brian Goggin and Dorka Keehn is a sculptural abstraction of the night Enrico Caruso slept in a nearby

hotel during the 1906 earthquake, cultivating an existing story of place unique to the specific area. According to Goggin, “The opera star Enrico Caruso was awakened by the Great Calamity of April 18, 1906, while he was staying at the Palace Hotel. He did not know if he was awake or still dreaming as he walked out to the window and viewed the result of the earthquake”. On the smaller scale of an architectural interior, both corporate and retail environments benefit from the physical expression of company culture. When political consulting firm, Stearns Consulting moved closer to City Hall and the Tech Corridor, they commissioned Donna Schumacher

The space incorporates one of a kind, artist designed elements emblematic of the Stearns Consulting mission. A custom designed glass coffee table with an interchangeable district map of San Francisco is the focal point of the aforementioned reception area. Transforming from work (with strategic meetings with dry erase pens) to play (with green army men lined up in battle), the table is a memorable feature to visitors and employees alike. Surrounding the table, glass shelves display numerous awards acquired by the firm while a nearby wall is filled with brightly colored campaign slogans, both illustrating a pride in work and accomplishment. For the conference room, a large ten foot by five foot map was created by layering laser cut felt designs based on the Mission Creek Watershed, echoing the firms commitment to the environment as well as buffering noise in the otherwise reverberant space. Culture is defined as the quality of a society that arises from a concern for what is regarded by the culture as excellent. As technology continues to seep into ever more intimate levels of our lives, the desire for an expression of that shared value of excellence increases. The role of art in the creation of place becomes an imperative for competitive real estate projects. About the Author

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Donna Schumacher is the Founder and Creative Director of Donna Schumacher Architecture, a boutique architecture firm specializing in the integration of art and architecture from interior to exterior, from art consultation to the design of signature spaces. Building stories...

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