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 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
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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:
recommendation
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).
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.”
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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 $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