Hermosa Beach Restaurants to pay for dining decks, but rent’s modest, at least for now [Updated]
by Dan Blackburn
Hermosa Beach restaurants will pay $1.50 per square foot for dining decks the City Council allowed to be built in parking spaces during the pandemic ban on indoor dining. The council voted unanimously at its Jan. 24 meeting to begin imposing the fee Mar. 1.
The dining decks occupy 60 parking spaces along Hermosa and Pier Avenues.
Environmental Programs Manager Doug Krauss told the council that the 60 spaces generated approximately $220,000 for the city in 2019.
Krauss told the council that the city has foregone another $500,000 from pre pandemic encroachment fees on Pier Plaza, and elsewhere in the city, The council will discuss resumption of those encroachment fees in February. Prior to the pandemic, they ranged from $1/sq. ft. for businesses not on Pier Plaza, to $5/sq. ft. for bars on Pier Avenue
The dining deck fee mirrors a recommendation by the Hermosa Beach Chamber of Commerce, whose members feared city officials might initiate a much higher fee, such as the $3 per square foot fee being charged in Manhattan Beach.
Chamber board chairman Dave Davis, in a letter to the council, cited benefits the city has enjoyed resulting from outdoor dining.
“The city staff report shows that while there has been parking revenue loss from on-street decks, there has also been an overall increase in visitors and the resulting parking revenue has offset a portion of the losses,” he wrote. “Having the dining decks remain is vital for Hermosa’s existence as a desirable place to live, work, and play for the next century. And it speak directly to Hermosa’s general plan and model of ‘Living Streets.’”
Davis added, “We are not out of the woods yet,” referring to the pandemic.
Kristal Palomo, owner of El Tarasco on Pier Ave., told the council in an email that she supports a “reasonable monthly deck fee” if that would help “keep the dining decks open permanently.”
Resident Raymond Dussault also lauded the dining decks and said he supports a staggered fee approach.
“The outdoor dining decks have not only helped our local restaurants and retailers continue their recovery from the pandemic. They also have added a new, vital, social dynamic to our beautiful community,” Dussault wrote.
During council discussion about the fees, Council Member Mary Campbell said she was “comfortable” with a fee ranging from $1.50 to $2.”
Council member Justin Massey disagreed. “We need something that values that property in a way that optimizes its use. I would think $3 is the starting point.” He would later join the majority in approving the lower fee.
Raymond Jackson, said a “more permanent fee can be established” during later discussions of the fate of outdoor dining.
In December, the council agreed to allow the dining decks to remain until at leat May.
City Manager Suja Lowenthal told the council, “There are tremendous tradeoffs that the city intentionally makes when it grants the use of public right of way, whether it’s a commercial purpose or purely public benefit. It’s hard to place a price on that.”
Resident Trent Larson said he was concerned that the “new charges might cause some businesses to quit.” Council members acknowledged that some eateries may close because of the added cost.
In other business, the council approved a long-term agreement with the Jewish Community Center to continue two events, a “Community Chanukah Celebration” on Dec. 14, and “Great Autos of Yesteryear for its Endless Summer Classic Car Show” on May 7. The events have been held for the past three years. ER