City manager warns of $2–3 million TOT shortfall, outlines options for AES site and park priorities

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 city manager urged the commission to submit prioritized project lists and possible funding sources to help staff align the city’s limited capital and program resources. "If you can identify a possible funding source, you’ve obviously…open space funds, Quimby funds can be used for park projects," Wazanski said, citing the Aviation Park pickleball courts as an example of a forthcoming CIP design item already funded through Quimby credits.

Commissioners pressed for data to support budget choices, including reservation and usage analytics for courts at Alta Vista Park. Wazanski said the data exist in the reservation system and staff will work to provide more formal reporting to help evaluate programming and revenue opportunities.

On the 190th Corridor and the decommissioned AES power plant site, Wazanski described ownership disputes, bankruptcy litigation and complex easements that limit immediate municipal action. "There's dispute over who currently owns and controls the property... that has not yet resolved," he said, noting a purchase‑and‑sale default and related bankruptcy filings. He added that Edison retains infrastructure (a grid switch and transmission easement) that complicates repurposing the corridor.

Wazanski laid out near‑term, lower‑risk options the city can pursue without property control, including five‑year licenses for interim open‑space uses. "We have licensed space that we renew… that's under a 5 year license," he said, pointing to the open space project east of Pacific Coast Highway as an example. He cautioned that fuller redevelopment or zoning intensification could require Coastal Commission review and potentially a citywide vote under the citizens’ initiative rules that govern certain zoning changes.

Asked about potential funding for large‑scale corridor remediation and removal of transmission infrastructure, Wazanski said the cost estimates run into the tens of millions and would likely require significant public funding or voter‑approved measures. "You'd have to tax themselves to support funding…tens of millions. It would be," he said.

Wazanski also described the city’s grant pursuits—some state support has been secured recently for Seaside Lagoon repairs and open‑space acquisition while federal grant success has been limited. He encouraged the commission to forward any known NOFAs and funding ideas to staff so the city can pursue opportunities.

The commission did not take formal action on the AES site at the meeting; members asked staff to continue monitoring litigation and explore analytics and funding connections in advance of the budget cycle. The city manager asked commission subcommittees to send prioritized lists and suggested the commission deliver suggested items directly to staff within the next couple of weeks to inform CIP development.