REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, Acting City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Kriss Casanova, Economic Development Manager
Subject:
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Approve and authorize execution of a License Agreement with Visit Huntington Beach (VHB) for use of the Visitor Information Kiosk located at Pier Plaza
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Statement of Issue:
The City Council is asked to approve a five-year license agreement with Visit Huntington Beach (VHB) for the continued operation of the Visitor Information Kiosk at Pier Plaza. This kiosk provides essential visitor services, enhances the visitor experience, and promotes local businesses and activities. The agreement includes a monthly base rent of $275 with annual 3% increases. The current agreement expired on December 31, 2024.
Financial Impact:
The License Agreement will generate an estimated $3,300 annually and a minimum of $16,500 over the five-year term, excluding annual increases. The rent equates to approximately $2.03 per square foot, based on the kiosk’s size of approximately 135 square feet.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute the "Non-Exclusive License Agreement Between the City of Huntington Beach and Visit Huntington Beach" for the use of the Visitor Information Kiosk located at Pier Plaza.
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Alternative Action(s):
Do not approve, and direct staff accordingly.
Analysis:
Visit Huntington Beach (VHB) is a 501(c)(6) non-profit corporation and serves as the City’s official destination marketing organization, tasked with promoting Huntington Beach as a premier destination locally, nationally, and internationally. Since 2004, VHB has operated a Visitor Information Kiosk under successive license agreements. Located in Pier Plaza adjacent to the iconic Huntington Beach Pier, the kiosk serves as a high-visibility, visitor-serving amenity, providing maps, event calendars, dining and activity guides, and visitor assistance. It also promotes local businesses and activities, enhancing the visitor experience and supporting the City’s tourism economy.
The proposed license agreement will retroactively take effect January 1, 2025, following the expiration of the current agreement which expired on December 31, 2024. It includes a five-year term with one optional five-year extension, which, if exercised, would extend the agreement through December 31, 2034. Key terms include:
• Monthly Rent: $275, with 3% annual increases.
• Use Restrictions: Limited to visitor information services and small-scale ancillary retail stored indoors, with no outdoor displays.
The kiosk’s rent equates to $2.03 per square foot, reflecting its smaller size and premier location within Pier Plaza. This per-square-foot rate is higher than that of nearby pier concessions, such as Kite Connection and Surf City Store, which pay $1.77 per square foot in base rent. Unlike these for-profit retail businesses, the kiosk serves as a non-profit, visitor-serving amenity. Its rent structure balances fiscal responsibility with its unique role in promoting tourism and supporting local businesses.
Tourism plays a critical role in Huntington Beach’s economy, generating substantial Transient Occupancy Tax (TOT) revenue and supporting local businesses. The Visitor Information Kiosk is a key component in ensuring visitors have a positive experience and access to information about the City’s offerings. The proposed license agreement allows VHB to continue its essential work in providing these services.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
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. License Agreement between the City and VHB
2. PowerPoint Presentation