Council trims some commercial encroachment fees and directs creation of retail category

Hermosa Beach council members voted to reduce the per‑square‑foot encroachment fee for businesses conducting retail and retail food sales without table service (including some off‑Pier‑Plaza storefronts) and directed staff to return with a defined retail on/off‑Pier‑Plaza category with design and size guidelines and a proposed nominal fee. The reductions were made retroactive to the date of the prior fee increase.

Background: Temporary public dining and storefront encroachments proliferated during COVID. The city established a fee schedule in 2022 and updated it in 2023 and 2025; several small, family‑run businesses and the Chamber urged fee relief, citing slim margins, seasonal traffic and the importance of the outdoor space to foot‑traffic visibility.

Council action: After staff presented six options and financial projections showing revenue impacts for each, the council adopted a focused reduction (staff’s option to lower qualifying off‑Pier‑Plaza retail/food‑without‑table‑service to $1 per sq ft retroactive to the earlier increase) and asked staff to return with a retail‑specific category for on‑ and off‑Pier‑Plaza uses with strict size and aesthetic standards and a recommended nominal fee to protect public property and ensure uniform standards. Council also instructed staff to pursue delinquent accounts discovered during the review.

Implications: The change reduces annual fee revenue relative to the prior schedule but aims to preserve long‑standing local businesses and street‑level retail visibility. Staff will prepare a resolution implementing the fee change and will return with draft guidance for the new retail encroachment classification.