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City manager warns of $2–3 million TOT shortfall, outlines options for AES site and park priorities
Summary
City Manager Mike Wazanski told the Redondo Beach Public Amenities Commission that lower hotel occupancy and a site-specific tax pledge have left the city about $2–3 million short in transient occupancy tax (TOT) revenue for FY 2026–27, and described licensing, acquisition and rezoning constraints for the decommissioned AES power plant and transmission corridor.
Redondo Beach City Manager Mike Wazanski told the Public Amenities Commission on April 8 that the city is preparing a conservative 2026–27 budget after a multiyear pullback in tourism revenue and uncertainty around a high‑profile land disposition. "We are 2 to 3,000,000 short in what we would otherwise experience in TOT," Wazanski said, describing current occupancy nearer to 75% compared with highs approaching 90% before the pandemic.
Wazanski said the shortfall amounted to roughly a 2–3% hit to general fund revenue and that a site‑specific tax pledge tied to three Marine Avenue hotels has further suppressed receipts by about $3 million. "We have a lease‑leaseback arrangement with the hotel owners... when they're at their peak are generating roughly $3,000,000 a year in TOT for us," he said, adding that those site‑specific deductions and hotel brand refreshes have left the pool of available TOT reduced this fiscal year.
The c…
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