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:
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Approve and Authorize the Execution of a License Agreement with EVA Coffee Project LLC (DBA IYKYK! Coffee Lab) for Temporary Use of City Property at 101 Walnut Avenue
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Statement of Issue:
City Council approval is requested for a license agreement with EVA Coffee Project LLC (doing business as IYKYK! Coffee Lab) for the temporary use of City-owned property located at 101 Walnut Avenue. The agreement would allow café services to activate a currently vacant lot in the Downtown area, providing new revenue to the City of Huntington Beach.
Financial Impact:
Under the terms of the agreement, the City will receive monthly rent equal to the greater of $1,200 or 10% of gross revenues generated by IYKYK! Coffee Lab during the term of the agreement. The Licensee will be responsible for all costs related to utilities, taxes, maintenance, improvements, and insurance.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute the “License Agreement by and Between the City of Huntington Beach and EVA Coffee Project LLC. (DBA IYKYK! Coffee Lab) for Temporary Use of City Property at 101 Walnut Avenue.”
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Alternative Action(s):
Do not approve and direct staff accordingly.
Analysis:
The property at 101 Walnut Avenue is a vacant, City-owned lot in Downtown Huntington Beach, located near Pacific City and within a high pedestrian-traffic area. In 2024, the City issued a Request for Proposals (RFP) to explore long-term uses for the site in an attempt to gain additional revenue and enhance the vacant space. Despite its prime location, the parcel presents significant development challenges due to its small, irregular shape and the regulatory requirements associated with permanent improvements.
To support an accessible, short-term activation and pilot a creative, community-focused use, staff recommends entering into a License Agreement with EVA Coffee Project, LLC, a Huntington Beach-based business operating as IYKYK! Coffee Lab (Licensee). This temporary use provides the City with an opportunity to evaluate a low-impact approach that may help shape future development or leasing strategies.
The License Agreement preserves public access to existing metered parking, ensures ADA compliance, and assigns full responsibility for maintenance, liability, and site restoration to the Licensee. This initiative aligns with City priorities to activate the Downtown area, support local businesses, increase revenue, and enhance public spaces.
Key Terms of the License Agreement:
• Use: Café services with temporary art installations to enhance site vibrancy.
• Term: May 24 - October 5, 2025, with an optional extension through May 23, 2026.
• Rent: Greater of $1,200/month or 10% of gross revenue.
• Operating Hours: Weekends from 8:00 a.m. - 8:00 p.m., with optional weekday operations.
• Maintenance & Clean-Up: Licensee is responsible for all site maintenance and daily clean-up. All materials and equipment must be removed from the premises at the end of each day.
• Insurance: General liability and workers’ compensation coverage required.
This temporary use serves as a potential interim approach to activating an underutilized City asset, allowing the site to contribute to Downtown’s vitality while the City continues to evaluate its long-term potential. By partnering with a local business in a low-impact, community-driven activation, the City can gather useful insights, reduce risk, and maintain flexibility for future planning. Staff recommends approval of the License Agreement as a step toward the thoughtful and incremental use of public space.
Environmental Status:
This action 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.
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 <https://www.huntingtonbeachca.gov/strategicplan>
Attachment(s):
1. License Agreement with EVA Coffee Project LLC (DBA IYKYK! Coffee Lab)
2. PowerPoint Presentation