HomeMy WebLinkAboutCalifornia Coastal Commission - 2025-04-15 (2) ��.. 2000 Main Street,
t e ...�TO1 Huntington Beach,CA
92648
° _' City of Huntington Beach APPROVED 7-0
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File #: 25-195 MEETING DATE: 4/15/2025
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Kriss Casanova, Economic Development Manager
Subject:
Approve and Authorize Execution of a Lease Amendment with the State Lands Commission
and an Agreement with the California Coastal Commission for the Development of a New.
Restaurant at 21 and 22 Main Street on the Huntington Beach Pier
Statement of Issue:
City Council approval is requested for two agreements required to advance the development of a
new restaurant at 21 and 22 Main Street on the Huntington Beach Pier:
1. State Lands Commission Lease Amendment - Because the City leases the pier from the State
of California, any sublease (including this one for a restaurant) must receive formal approval.
This amendment updates the City's master lease with the State to reflect the sublease with
Surf City Partners, LLC.
2. Agreement with the California Coastal Commission - Required by the Coastal Development
Permit (CDP), this agreement ensures that if the restaurant's sublease ends in the future, the
property will remain subject to all applicable coastal development regulations.
These agreements are procedural but essential for construction to proceed. The project, led by Surf
City Partners, LLC (SCP), includes a full-service restaurant with outdoor dining, upgraded public
restrooms, and a bait-and-tackle shop. Approval will ensure the project complies with State oversight
and supports responsible use of public land.
Financial Impact:
There is no financial impact associated with approving these agreements.
Recommended Action:
>' A) Approve and authorize the Mayor to execute the "Amendment of Lease 6616" with the State of
• California State Lands Commission, updating Exhibit C-3 (Sublease Endorsement).
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File #: 25-195 MEETING DATE: 4/15/2025
B) Approve and authorize the Mayor and City Clerk to execute the "Agreement Pursuant to Special
Condition No. 10(B) of CDP 5-22-0804 Between the City of Huntington Beach and the California
Coastal Commission."
Alternative Action(s):
Do not approve and direct staff accordingly.
Analysis:
Pier Ownership and Jurisdiction
The Huntington Beach Pier is located on tidelands held in trust by the City for the State of California
and is leased to the City under Lease No. 6616, a General Lease - Public Agency Use. The State
Lands Commission (SLC) oversees this lease and ensures that uses of State-managed lands remain
consistent with the public trust doctrine, which prioritizes public access, recreation, and
environmental stewardship. Because of this, any sublease or development on the pier, such as a
restaurant, requires approval by the State.
Additionally, development within non-certified areas of the coastal zone is governed by the California
Coastal Act and subject to regulation by the California Coastal Commission, which enforces
conditions that protect visual resources, beach access, and public facilities.
Although the City approved a sublease with Surf City Partners in October 2024, that approval alone
is not sufficient. Two additional agreements must be approved to secure State concurrence:
• The State Lands Lease Amendment updates the City's lease with the State to formally
recognize the restaurant sublease and ensure alignment with public trust purposes.
• The Coastal Commission Agreement is required by Coastal Development Permit 5-22-0804
and ensures that if SCP's sublease ends, the site continues to comply with all coastal
development regulations. This preserves long-term public benefit and ensures environmental
compliance.
These types of agreements are standard for projects that improve public facilities like piers through
private partnerships.
Project Background
In 2021, the City selected Surf City Partners, LLC (SCP) to revitalize an 800-square-foot concession
space at 21 Main Street on the Huntington Beach Pier. The initial concept for a small food and
beverage operation has since evolved into a more substantial project, including:
• A full-service restaurant with outdoor dining
• Renovation of the adjacent public restroom facilities
• A bait-and-tackle shop and associated storage
In October 2024, the City executed a long-term sublease with SCP, which includes a base rent of
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File #: 25-195 MEETING DATE: 4/15/2025
$66,000 per year, escalating 3% annually, plus 3% of gross sales over $2 million. The sublease runs
through 2043, with extension options available.
Construction is expected to begin in fall 2025, with the restaurant anticipated to open in spring 2026.
While SCP completes permitting, temporary summer 2025 activations may include a bait shop, hot
dog cart, and pop-up retail to maintain pier activity.
This public-private partnership advances multiple City goals by enhancing a high-profile location on
the pier, improving public amenities, and promoting economic activity. The project will:
• Enhance the visitor experience with new dining options
• Activate a long-vacant and underutilized pier location
• Upgrade public restrooms in partnership with the restaurant
• Support fishing, recreation, and tourism through the bait-and-tackle shop
Approval of the lease amendment and agreement with the Coastal Commission will ensure that these
benefits are delivered in a way that respects the City's lease obligations, complies with State
regulatory frameworks, and upholds responsible stewardship of coastal lands.
Environmental Status:
The request for the City Council to approve the subject lease agreement is covered by the General
Rule that the California Environmental Quality Act (CEQA) applies only to projects that have the
potential for causing a significant effect on the environment (Section 15061.b.3 of the State CEQA
Guidelines). It can be seen with certainty that there is no possibility that this activity will have a
significant effect on the environment. Therefore, this activity is not subject to CEQA. It should be
noted that construction and operation of the project was analyzed and findings made pursuant to
CEQA under Conditional Use Permit No. 22-012.
Strategic Plan Goal:
Goal 2 - Fiscal Stability, Strategy A - Consider new revenue sources and opportunities to support the
City's priority initiatives and projects.
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. State of California State Lands Commission Amendment of Lease 6616
2. Agreement pursuant to Special Condition No. 10(B) of CDP 5-22-0804 Between the City of
Huntington Beach and the California Coastal Commission
3. PowerPoint Presentation
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RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN
TO:
City Clerk
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
(SPACE ABOVE THIS LINE FOR RECORDERS
USE)This Release of Covenant is recorded at the
request and for the benefit of the City of Huntington
Beach and is exempt from the payment of a recording
fee pursuant to Government Code Sections 6103 and
27383.
AGREEMENT PURSUANT TO SPECIAL CONDITION NO. 10(B) OF CDP 5-22-0804
BETWEEN THE CITY OF HUNTINGTON BEACH
AND THE CALIFORNIA COASTAL COMMISSION
This Agreement is made this , 2025, between The City of Huntington
Beach ("Owner") and The California Coastal Commission.
WHEREAS, Surf City Partners, LLC ("Permittee") is seeking to sublease the property
located at 21 Main Street, Huntington Beach, CA 92648 ("Property") from the City of
Huntington Beach; and
WHEREAS, the Coastal Development Permit (CDP) for the Property. is CDP 5-22-0804;
and
WHEREAS, CDP 5-22-0804 imposes certain Standard and Special Conditions applicable
to the Property.
NOW, THEREFORE,the parties agree as follows:
1. Sublease Termination: In the event Permittee's sublease of the Property is
terminated for any reason,the owner agrees that the Property shall remain bound by the Standard
and Special Conditions referenced in CDP 5-22-0804.
2. Subsequent Subleases: Owner agrees that any subsequent sublease agreement for the
Property shall include a provision requiring the new sublessee to submit a written agreement to
the California Coastal Commission ("Commission") acknowledging and incorporating all the
1
23-13638/369706
Standard and Special Conditions of CDP 5-22-0804. This written agreement shall be in a form
acceptable to the Executive Director of the Commission.
3. Governing Law: This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
4. Entire Agreement: This Agreement constitutes the entire understanding between
the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous
communications and proposals,whether oral or written.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.
EXECUTIVE DIRECTOR CITY OF HUNTINGTON BEACH, a
CALIFORNIA COASTAL COMMISSION municipal corporation of the State of
California
By: vfr Mayor
print name
ITS: X4/LC- . fit/7 ".
Executive Director City Clerk
INITIATED AND APPROVED:
REVIEWED AND APPROVED: Dire or of Community Development
APPROVED AS TO FORM:
City Manager
(..(C t(-
City Attorney
2
23-13638/369706
A notary public or other officer completing this certificate verifies only the identity
of the individual who signed the document to which this certificate is attached, and
not the truthfulness, accuracy, or validity of that document.
ACKNOWLEDGMENT
STATE OF CALIFORNIA , )
) ss
COUNTY OF ORANGE )
On April 30, 2025 before me, Donna Switzer, Notary Public, personally appeared
Lisa Lane Barnes, who proved to me on the basis of satisfactory evidence to be
the person whose name is subscribed to the within instrument and acknowledged to
me that she executed the same in her authorized capacity, and that by her signature
on the instrument the person, or the entity upon behalf of which the person acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal. rnfA9y
4 F:" Commission Orange C8ounty
.p7 2n470457
My Comm.Expires Noy 9,2027 •
(Seal)
(Notary Signature)
A notary public or other officer completing this certificate verifies only the identity
of the individual who signed the document to which this certificate is attached, and
not the truthfulness, accuracy, or validity of that document.
ACKNOWLEDGMENT
STATE OF CALIFORNIA )
) ss
COUNTY OF ORANGE )
•
On 5/2/2025 before me,Donna Switzer, Notary Public, personally appeared Pat
Burns who proved to me on the basis of satisfactory evidence to be the person
whose name is subscribed to the within instrument and acknowledged to me that he
executed the same in his authorized capacity, and that by his signature on the
instrument the person, or the entity upon behalf of which the person acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
���r�.,� DONNA SWRZER
�yi;4;,�o Notary Public•California
WITNESS m • . d and official seal. = W , Orange County
Commission#2470457
ft�i s
+�.o•" My Comm.Expires Nov 9,20I7
t•'
(Seal)
(Notary Signature)
JoF���, lo... CITY OF
a''• 6 i
�_ HUNTINGTON BEACH
i o .
oUN..... •TY•�;.° Lisa Lane Barnes I City Clerk
May 7, 2025
California State Lands Commission
Attn: Jeff Plovnick
100 Howe Avenue, Suite 100 - South
Sacramento, CA 95825
Dear Mr. Plovnick:
Enclosed are two partially executed originals of the State of California State Lands Commission
Amendment of Lease 6616, approved by City Council on April 15, 2025.
Upon final execution, please provide a fully executed original to:
City of Huntington Beach
City Clerk's Office
Attn: Donna Switzer, Senior Deputy City Clerk
2000 Main Street, 2nd Floor
Huntington Beach CA 92648
Your attention to this matter is greatly appreciated.
Lisa Lane Barnes
City Clerk
LLB:ds •
Enclosure
•
Office: (714)536—5405 I 2000 Main Street, Huntington Beach, CA 92648 I www.huntingtonbeachca.gov
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iff\ -T = New Restaurant
ING\-\\ „..........7:(7---,4/ ..... at 21 Main Street on
C .•' ,CORPoRAr.. _ ___ _ , the HB Pier
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=_ - === Lease Amendment &
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19;: 1 April 15, 2025
°OONTN C �
Pier Development Overview
• Surf City Partners, LLC has signed a sublease with
the City to develop "Huntington's on the Pier" at
21 & 22 Main Street on the HB Pier.
• The Pier is owned by the State of California and
leased to the City under Lease No. 6616, overseen
by the State Lands Commission (SLC). ,
• All subleases require SLC endorsement to ensure /\14/.
compliance with public trust uses.
• A special condition of the Coastal Development
Permit (CDP 5-22-0804) requires an agreement •
ensuring the site remains subject to coastal '` ---_ 1
development regulations, even if the sublease
ends.
Requested
,... .-,.,.. . ., , , ijr./70•!4'... - ' Ittilir "
• State Lands Commission Lease Amendment ' ' : 4:1 : ' �� L
Updates Lease No. 6616 to reflect the City's �f
approved sublease with Surf City Partners, LLC
(October 2024). -
=� l
• California Coastal Commission Agreement _ ,- I IT, ..,.
Satisfies Special Condition 10(B) of CDP 5-22- 11 Y ' `
0804, ensuring the site remains in compliance .�'� `� .: ,-�'� �.,
ors t.-
with coastal regulations if the sublease ends. ..
Recommendation
1 . Approve and authorize execution of the State Lands Lease
Amendment (Lease 6616).
2. Approve and authorize execution of the California Coastal
Commission Agreement (pursuant to CDP 5-22-0804).
" v v - -11fAtiol
HUNTINGTON BEACH • CALIFORNIA
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