Council agrees to waive $19,500 indirect cost for Hermosa Beach Open; rejects immediate city ownership this year

The City Council on April 8 told the Hermosa Beach Open promoter the city will not transition the event to a city-owned model for 2025 but unanimously agreed to waive the event’s outstanding indirect-cost fee of about $19,500.

A staff presentation summarized two possible approaches: (1) a long‑term agreement in which an outside promoter (Day at the Beach Events) retains production responsibilities while the city issues permits and enforces safety and operational compliance; and (2) a city‑owned event model in which the city controls marketing, sponsorships and event format and retains title over the event name and revenues.

Why it matters: The promoter and a number of council members said consistent local ownership of the Hermosa Beach Open would protect the event name and help sustain the tournament as a recurring, internationally recognized competition. Staff told council converting to a city‑owned model would require a new, negotiated agreement and substantial staff time; because the event is scheduled for September 2025, staff recommended postponing any ownership change until a later year to allow time for negotiation and review by the Parks Commission and council.

Public input: Mark Holloway, the promoter who produced the 2024 event, told council he supports the city owning the name of the Hermosa Beach Open so the city can help safeguard the event’s continuity and branding. Several council members and residents praised Holloway’s work in 2024 and said stability for the event is desirable.

Council action: Council members voted unanimously to approve staff’s recommendation to maintain the long‑term agreement approach for 2025 and to waive the outstanding indirect-cost charge (~$19,500) for the event. Staff also acknowledged ongoing questions about Schumacher Plaza sponsorship access during the event weekend; staff will continue to coordinate among Movies on the Beach, Concerts on the Beach and Day at the Beach Events on sponsor placement to avoid conflicts.

Additional details from staff and promoter - Trademark: Staff reported the city has obtained a California service mark for the event name and applied for a federal service mark; pending federal registration could support future city ownership of the event name. - Sponsorships and Schumacher Plaza: Promoter said the lack of a firm commitment for Schumacher Plaza until roughly 30 days before the event complicates sponsorship negotiations. Staff said Movies on the Beach and Concerts on the Beach typically rely heavily on sponsor revenue and they do not want available sponsor locations curtailed. Staff and the promoter agreed to pursue shared or co‑sponsorship arrangements. - Prize pool and scale: The promoter reported a prize pool of about $50,000 last year and said organizers hope to grow support and attendance in future years.

Next steps: City staff will finalize the long‑term agreement for 2025 with the indirect-cost waiver included and continue conversations with the promoter about sponsor placement (Schumacher/Pier Plaza), trademark rights and longer‑term options for city ownership in future years.

Provenance: Discussion began with the item introduction and staff report at s=17172.17 and concluded with council’s unanimous vote to waive the indirect cost at s=19478.43.