To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, WATERFRONT AND COMMUNITY SERVICES DIRECTOR
TITLE
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APPROVE AN EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE CITY OF REDONDO BEACH AND MULTIVERSE PLATFORMS INC FOR 123 INTERNATIONAL BOARDWALK, THE FORMER FUN FACTORY SPACE
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EXECUTIVE SUMMARY
Approval of the proposed Exclusive Negotiating Agreement (ENA) with Multiverse Platforms Inc (Multiverse), doing business as Level Up, will authorize the City to enter into an exclusive negotiation period for the potential lease of the former Fun Factory space located on the International Boardwalk. The ENA provides an initial 60-day due diligence period, with one optional 30-day extension, followed by a lease negotiation period of up to 60 days, with one optional 30-day extension. Execution of the ENA does not obligate the City to enter into a lease agreement, but establishes a framework for the parties to evaluate the project and negotiate mutually acceptable lease terms.
BACKGROUND
The former Fun Factory Space, located on the International Boardwalk, has remained vacant since 2019. In December 2025, the City's leasing team issued a Memorandum of Offering (MOO) for the approximately 29,550-square-foot space, with expressions of interest due in January 2026. That solicitation process resulted in two qualified respondents for the property.
Concurrent with the solicitation process, the City initiated review of the property under the California Surplus Land Act. The Act requires local agencies to provide certain notices and offer qualifying surplus properties for affordable housing development prior to pursuing other dispositions, unless an exemption applies. In May 2026, the California Department of Housing and Community Development (HCD) determined that the property qualified for an exemption, allowing the City to proceed with lease negotiations for the site.
Following evaluation of the proposals received, staff identified Multiverse, operator of Lev...
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