In 1986, the Santa Monica City Council discussed a preliminary report containing four plans calling for various combinations of office buildings, a hotel, a museum, a conference center, a playhouse, parking garages and open space and, in two of the plans, demolition of the auditorium. By the 2000s, the Civic Auditorium was operating at an annual deficit of as much as $2 million, which the city has had to cover. The City of Santa Monica began to plan for a $51.9-million renovation using redevelopment funds and negotiated with the Nederlander Organization to book events. That effort was suspended after Governor Jerry Brown dissolved community redevelopment agencies. Per the "Santa Monica Mirror" newspaper, the auditorium was expected to close in July 2013 for at least five years. It needs at least $23 million in seismic and accessibly upgrades. A complete renovation would exceed $50 million. From an economic perspective, it would be cheaper to replace it, but many consider it a landmark worth preserving. The city has an annual budget of more than half of a billion dollars and is considering its priorities.