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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Accept a Completion Bond for Building Improvements Associated with 21 and 22 Main Street on the Huntington Beach Pier
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Statement of Issue:
City Council action is requested to accept a completion bond guaranteeing the completion of required improvements associated with the construction of a new restaurant project located at 21 and 22 Main Street on the Huntington Beach Pier. The completion bond is required under the executed sublease between the City and Surf City Partners, LLC (the “Lessee”) and ensures that the approved improvements will be completed in accordance with approved plans, conditions of approval, applicable City standards, and regulatory requirements.
A completion bond is a financial guarantee that protects the City by ensuring that required improvements are completed, or that funds are available for the City to complete the work, in the event the Lessee fails to do so.
Financial Impact:
There is no direct fiscal impact to the City associated with acceptance of the completion bond. The bond serves as financial security to ensure completion of required improvements at no cost to the City in the event of default by the Lessee.
Recommended Action:
recommendation
A) Accept the Completion Bond in the amount of $1.3 million for building improvements associated with 21 and 22 Main Street; and
B) Authorize the City Engineer to administer and enforce the bond in accordance with City standards and applicable law.
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Alternative Action(s):
Do not approve the recommended action and direct staff accordingly. If the completion bond is not accepted, construction of the project cannot proceed until an acceptable bond is approved by the City Council, resulting in a delay of the project.
Analysis:
As a condition of the sublease between the City and Surf City Partners, LLC, the Lessee is required to construct specific improvements on the Huntington Beach Pier. These improvements include a full-service restaurant with outdoor dining, renovation of adjacent public restroom facilities, and a bait-and-tackle shop with associated storage. The project is intended to enhance visitor amenities and improve public facilities on the Pier.
To guarantee completion of these improvements, and in accordance with the sublease requirements, the Lessee has provided a completion bond in the amount of $1.3 million, representing 100 percent of the estimated construction cost. City Council acceptance of the completion bond is required prior to the issuance of building permits and the commencement of construction.
The completion bond has been reviewed and approved as to form by the City Attorney and is issued by a surety authorized to do business in the State of California. The bond is conditioned upon the faithful completion of the required improvements in compliance with City standards, approved plans, and applicable regulations.
The Lessee is responsible for obtaining all required permits and approvals, including compliance with the approved Coastal Development Permit issued by the California Coastal Commission. Public access to the Huntington Beach Pier will be maintained in accordance with the terms of the sublease and the approved Coastal Development Permit.
Construction is anticipated to commence later this month, with the restaurant expected to open in late summer 2026. Staff recommends acceptance of the completion bond to allow the project to proceed while ensuring the City is fully protected in the event the required improvements are not completed.
Environmental Status:
The acceptance of a completion bond is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(5).
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Completion Bond
2. PowerPoint Presentation