To: MAYOR AND CITY COUNCIL
From: STEPHANIE MEYER, FINANCE DIRECTOR
TITLE
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APPROVE THE BUSINESS LICENSE TAX WAIVER APPLICATION SUBMITTED BY THE RIVIERA VILLAGE ASSOCIATION REQUESTING AN EXEMPTION FROM COMPLIANCE WITH THE BUSINESS LICENSE TAX RATES ESTABLISHED IN REDONDO BEACH MUNICIPAL CODE SECTION 6-1.22, AS PER SECTION 6-1.08 OF THE REDONDO BEACH MUNICIPAL CODE, FOR THE RIVIERA VILLAGE SUMMER FESTIVAL EVENT OCCURRING JUNE 27-29, 2025
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EXECUTIVE SUMMARY
Mike Ward/VR Promotions and Events, on behalf of the Riviera Village Association, submitted a request to waive the business license tax for the annual Riviera Village Summer Festival event, which took place on June 27-29, 2025. Due to the timing of the waiver application, the request is being presented to the City Council after the event has already taken place. The City Council approved a similar waiver for the 2024 Festival.
BACKGROUND
All entities conducting business within the City of Redondo Beach are required to comply with Section 6-1 of the Redondo Beach Municipal Code (RBMC), which establishes the process and fees associated with obtaining a Business License in the City of Redondo Beach. Section 6-1.08(c) of the RBMC includes a means for entities to appeal to the City Council for a waiver exempting parties from payment of the appropriate tax associated with the business type. In the case of the Riviera Village Summer Festival, participating vendors would be subject to a projected tax of $103 for those located within the City, and $133 for vendors located outside the City.
Section 6-1.08(c) states, “Upon a written application to the Council, a person or organization may request an exemption from the business license requirements imposed by this chapter, and the Council may waive the provisions of this chapter if the Council finds and determines that the community benefit will be promoted by granting such an exemption.”
Although the applicant submitted the waiver application before the event (on June 11th), due to the limited time available to review the application, gather required documentation, and prepare it for the City Council’s June 17th meeting agenda (the last meeting in June), the application is being presented after the event. To note, the applicant is still responsible for payment of all applicable City fees. The invoice is currently being finalized.
The waiver application requests exemption for both the event organizer and 186 participating vendors, which includes 166 individual craft vendors and 20 food vendors. According to the application, the event generates revenue to help fund other Riviera Village Association events, including the annual Halloween and Holiday Stroll events. It also contributes to year-round efforts to maintain dining decks and promote Riviera Village businesses.
The Riviera Village Summer Festival and the annual Halloween and Holiday Strolls are designated City Signature Events. In the FY 2024-25 Adopted Budget, these events received a total subsidy amount of $17,500 ($12,500 for the Summer Festival and $2,500 for each of the Strolls). It should be noted that the City Council approved a similar business license waiver for the Summer Festival in July 2024.
Should the City Council not approve the waiver, staff will proceed with collecting business license tax payments from the event organizer and participating vendors.
COORDINATION
The Financial Services Department prepared this item.
FISCAL IMPACT
The fiscal impact depends on the total number of vendors participating in the event. In this instance it would be equivalent to $103 or $133 per waived entity, for an estimated total revenue waiver of approximately $20,000 and $25,000.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Application - Waiver of Business License Tax - Mike Ward/VR Promotions and Events Riviera Village Summer Festival 2025, June 27-29, 2025