To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, COMMUNITY SERVICES DIRECTOR
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DISCUSSION AND POSSIBLE ACTION REGARDING A CONCESSIONAIRE AGREEMENT WITH MBM HOSPITALITY, INC. FOR USE OF THE VETERANS PARK HISTORIC LIBRARY FACILITY
APPROVE THE PROPOSED CONCESSIONAIRE AGREEMENT WITH MBM HOSPITALITY, INC.
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EXECUTIVE SUMMARY
The Veterans Park Historic Library & Community Center (Facility), a historic landmark in Redondo Beach, has been opened only for select special events since the COVID-19 pandemic. Following robust community outreach and a competitive request for proposals (RFP) process, MBM Hospitality, Inc. (MBM), was selected by the City Council to provide facility management and operation services for the Veterans Park Library through a concessionaire agreement.
Proposed is a ten (10) year agreement that would require MBM to operate a public caf?, host cultural and historical programming, and manage the facility for both private events and the community. MBM is also obligated to make investments to the interior of the facility totaling $866,000. The City would be required to complete exterior ADA upgrades to the property, estimated to cost a comparable amount, using Measure A Park Grant funding. If approved, the facility would be scheduled to reopen to the public by June 30, 2026, barring any construction delays.
Once operational, MBM would pay an escalating minimum rent to the city of $125,000 annually, increasing to a minimum of $320,000 by the end of the term, and an additional portion of gross receipts for select categories, which would include credits for eligible facility maintenance and City use.
BACKGROUND
The Veterans Park Community Center is an 11,400 square foot landmark building listed on the National Register of Historic Places. It served as the city's Main Library from 1930 through 1991. In January 1991, the building incurred substantial seismic damage as a result of the Sierra Madre earthquake, forcing its c...
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