[A. CALL TO ORDER] [00:00:02] COMMISSION TO ORDER. CAN WE HAVE A ROLL CALL, PLEASE? YES. COMMISSIONER ABELMAN. HERE. COMMISSIONER FALK. HERE. COMMISSIONER COLLER. HERE. COMMISSIONER CHRZAN. HERE. COMMISSIONER CARLSON. HERE. CHAIR CALLAHAN. HERE. FOR THE RECORD, COMMISSIONER BAUER IS NOT HERE BUT WE DO HAVE A QUORUM, AND WE CAN CONDUCT BUSINESS. PERFECT. I WOULD LIKE TO HAVE LEE COLLER LEAD US IN THE SALUTE TO THE FLAG. OH, THERE HE IS PLACE YOUR RIGHT HAND OVER YOUR HEART. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. THANK YOU BE SEATED. ALL RIGHT. IS THERE A MOTION TO APPROVE THE ORDER OF AGENDA? [D. APPROVE ORDER OF AGENDA] I SO MOVE OPPOSED? MOTION PASSES. ARE THERE ANY BLUE FOLDER ITEMS? [E. BLUE FOLDER ITEMS - ADDITIONAL BACK UP MATERIALS] YES WE HAVE THREE ITEMS IN THE BLUE FOLDER TONIGHT. FOR THE FIRST ONE IS ITEM L.1, WHICH IS THE LEASING STRATEGY. IT'S THE PRESENTATION FROM OUR LEASING AGENT, BRIAN CAMPBELL. FOR ITEM L.2, WE HAD A PUBLIC COMMENT FROM MARK HANSEN, AND THAT'S WITH THE APPOINTMENT OF THE VARIOUS SUBCOMMITTEES TO REPLACE, UNFORTUNATELY, VICKI CALLAHAN WHEN SHE COMES TO THE END OF HER TERM. AND THEN WE ALSO HAD FOR ITEM M.1, WHICH IS THE LIAISONS REPORT. JUST A POWERPOINT PRESENTATION WITH SOME PHOTOS ON THERE. ALL THREE OF THOSE HAVE BEEN EMAILED TO YOUR REDONDO.ORG EMAILS. OKAY. AND WE ALSO RECEIVED THIS NICE HARD COPY OF THE LEASING SUBMISSION. OKAY. CONSENT CALENDAR. APPROVAL OF THE AFFIDAVIT OF POSTING AND THE APPROVAL OF THE VERY SHORT MINUTES FROM JULY [F. CONSENT CALENDAR] 14TH. IS THERE A MOTION TO APPROVE? SO MOVED. SECOND. ALL IN FAVOR? AYE. OPPOSED? MOTION CARRIES. I ABSTAIN, I WASN'T HERE. OKAY [LAUGHTER]. THERE'S NO EXCLUDED. [H. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS] PUBLIC PARTICIPATION IN NON-AGENDA ITEMS. THIS SECTION IS INTENDED TO PROVIDE MEMBERS OF THE PUBLIC WITH THE OPPORTUNITY TO COMMENT ON ANY SUBJECT THAT DOES NOT APPEAR ON THIS AGENDA FOR ACTION. THIS SECTION IS LIMITED TO 30 MINUTES. EACH SPEAKER WILL BE AFFORDED THREE MINUTES TO ADDRESS THE COMMISSION. EACH SPEAKER WILL BE PERMITTED TO SPEAK ONLY ONCE. WRITTEN REQUESTS, IF ANY, WILL BE CONSIDERED FIRST UNDER THIS SECTION. DO WE HAVE ANY MEMBERS OF THE PUBLIC WHO WOULD LIKE TO COME FORWARD AND SPEAK? LET US KNOW WHO YOU ARE. [LAUGHTER] GOOD EVENING, COMMISSIONERS. MARK HANSEN, KING HARBOR VOTER. AND ACTUALLY AND TONIGHT, ACTUALLY WITH MY KING HARBOR YACHT CLUB HAT ON FOR JUST A MOMENT. JUST KIND OF WANTED TO BRAG ABOUT THE GREAT RACES GOING ON IN JULY AT THE CLUB. WE JUST FINISHED ON JULY 25TH AND 26TH, THE ANNUAL KING HARBOR TO SANTA BARBARA RACE, WHICH ACTUALLY GOES AROUND ANACAPA ISLAND FOR A TOTAL OF 80 NAUTICAL MILES OF RACING. WE HAD 56 BOATS CLOGGING UP THE DOCKS AT THE FINISH. THE BIGGEST WAS A 77 FOOTER. THE SMALLEST WERE 24 FOOTERS. NOT SURPRISINGLY, THE 77 FOOTER WAS THE FIRST CROSS TO THE FINISH LINE. BUT OF COURSE, WE DO A HANDICAP SYSTEM TO FIGURE OUT WHO GETS TO WIN OVERALL. AND VERY COOL. ONE OF THE SMALLEST BOATS, ONE OF THE 24 FOOTERS WON THE WHOLE THING ON HANDICAP. SO THAT WAS A VERY, VERY COOL. WE HAD SOME TOP FINISHERS LOCALLY OUR GENTLEMAN WHO WAS COMMODORE LAST YEAR, ANDY BEGGS, TOOK SECOND PLACE IN HIS CLASS, AND OUR PAST COACH, PAUL ZABRISKIE TOOK THIRD PLACE IN HIS CLASS. AND FLYING DUTCHMAN SAILED BY JASON HERRING, BROKE INTO THE TOP TEN, ALSO WITH THE NINTH PLACE OVERALL. SO WE'RE PROUD OF OUR LOCAL SAILORS. ALSO, WE HAD A TEAM MADE UP COMPLETELY OF YOUTH, A BUNCH OF UNDER EIGHTEENS ON A BOAT AND THEY RACED THAT WHOLE DARN THING. THEY CAME IN QUITE LATE, BUT WE WERE VERY PROUD OF THEM FOR PARTICIPATING. I'M NOT GOING TO TRY TO HIT ALL THE DETAILS TONIGHT, BUT WE ALSO, EARLIER IN THE MONTH DID THE ANNUAL CURE CANCER CUP, AND WE RAISED $29,000 FOR CANCER RESEARCH. I THINK WE HAD 35 BOATS FOR THAT ONE. LISA FALK AND LEE COLLER WERE BOTH ON THE COMMITTEE AND LEE COLLER WAS CO AUCTIONEER WITH ME, HELPING TO RAISE THAT $29,000. WE'VE NOW RAISED OVER $850,000. [00:05:02] SO OUR NEW FLYERS ARE SAYING MARCH TO A MILLION. WE FIGURE IN THE NEXT 2 OR 3 YEARS, WE'LL BREAK A TOTAL IN $1 MILLION THAT WE WILL HAVE CONTRIBUTED TO CANCER RESEARCH SPECIFICALLY FOR A LAB AT CEDARS-SINAI THAT HAS A BIG BRONZE PLAQUE. THE LAB IS NAMED AFTER OUR EVENT. SO BUSY JULY, A LOT OF VOLUNTEERS DOING GREAT THINGS FOR THE PRESTIGE OF THE CITY, THANKS SO MUCH. THANK YOU MARK. ANYONE ELSE? DO WE HAVE ANY ECOMMENTS? THEY ARE NOT ECOMMENTS AND NO PARTICIPANTS IN ZOOM. NO EMAILS, NO NOTHING? OKAY THANK YOU. NO EX-PARTE COMMUNICATIONS BECAUSE WE HAVE NO PUBLIC HEARINGS, NO PREVIOUS ITEMS FROM OTHER AGENDAS. OKAY WE'RE TO L.1 LEASING OVERVIEW OF PIER AND HARBOR PROPERTIES OWNED AND [L. ITEMS FOR DISCUSSION PRIOR TO ACTION] MANAGED BY THE CITY. YEAH THANK YOU. I'LL INTRODUCE BRIAN CAMPBELL. GOOD. INTRODUCING BRIAN CAMPBELL TO YOU GUYS. I THINK MOST OF YOU KNOW HIM. HE'S OUR LEASING AGENT DOWN AT THE WATERFRONT. HE'S GOING TO PROVIDE KIND OF AN OVERVIEW OF THE CURRENT CLIMATE OUT THERE RIGHT NOW. THE VACANCIES, THE MIX OF BUSINESSES THAT WE HAVE OUT THERE AND A PLETHORA OF OTHER GREAT INFORMATION. I'M SURE THEY'LL SPUR A LOT OF DISCUSSION AND COMMENTS, BUT I'LL TURN IT OVER TO BRIAN. GREAT, THANKS. I APPRECIATE THE INVITE TO COME AND TALK TONIGHT. I'M BRIAN CAMPBELL WITH BC URBAN. I'VE BEEN IN THIS BUSINESS ALMOST EXCLUSIVELY LEASING FOR ABOUT 40 YEARS, ACTUALLY A LITTLE BIT MORE THAN 40 YEARS. SO I REALLY ENJOY IT. AND I'M A LONGTIME SOUTH BAY RESIDENT, USED TO LIVE HERE IN REDONDO BEACH, BUT I'VE BEEN IN THE IMMEDIATE AREA FOR OVER 30 YEARS. SO THE FIRST PLACE I EVER LIVED IN CALIFORNIA WAS RIGHT DOWN THERE AT THE VILLAGE APARTMENTS OVERLOOKING PIER PLAZA WERE WHERE I NOW OFFICE. SO IT'S KIND OF IRONIC AND IT NEVER CEASES TO AMAZE ME HOW LUCKY WE ARE, HOW LUCKY I AM JUST TO BE ABLE TO OFFICE AT SUCH A COOL PLACE. SO WHAT WE'RE GOING TO DO TONIGHT IS YOU'LL SEE UP IN YOUR SCREENS. THIS IS A VIDEO FROM TODAY. WE'VE GOT OUR OWN DRONE AND WE USE IT QUITE A BIT ACTUALLY. IT STARTED OFF WITH HELPING OUT THE PROPERTY MANAGEMENT COMPANY WITH DOING ROOF SURVEYS BECAUSE AS YOU KNOW, MANY OF THESE BUILDINGS ARE VERY OLD AND THE HVAC SYSTEMS AND ELECTRICAL CONDUITS AND WIRES AND THINGS LIKE THAT GET DAMAGED QUITE OFTEN AND WEAR OUT QUITE OFTEN JUST BECAUSE OF THEIR PROXIMITY TO THE WIND AND THE OCEAN AND THE SALT AND, AND, YOU KNOW, ALL THAT. SO WE ACTUALLY HAVE GOT THIS DRONE. IT CAN, IT CAN IN SOME CASES READ THE SERIAL NUMBER OFF THE HVAC UNIT. SO THAT REALLY REDUCES RISK OF PROPERTY MANAGEMENT, PEOPLE HAVING TO PUT UP LADDERS AND CLIMB UP ON THE ROOF AND CLIMB AROUND AND THINGS LIKE THAT, WE CAN JUST PUT THE DRONE UP. SINCE THEN, WE'VE EXPANDED IT TO BE ABLE TO DO THINGS LIKE KEEP AN EYE ON THE PROGRESS OF THE SURF CLUB CONSTRUCTION. TAKE A LOOK AT, YOU KNOW, THE LAGOON USABILITY. I MEAN, THERE'S PLENTY OF PEOPLE OUT THERE TODAY THAT ARE ENJOYING THE WATER. AND WE ALSO MAKE THESE VIDEOS AVAILABLE TO ANY OF OUR TENANTS FOR FREE IF THEY EVER WANT TO USE THEM WITH THEIR OWN MARKETING AND EMBEDDING WITH THEIR YOU KNOW, WITH THEIR OWN WEBSITES. ADDITIONALLY, WE WILL OCCASIONALLY FLY OUT TO THE BARGE AND THE BUOY AND TAKE A LOOK AT THE SEA LIONS. AND WE'VE ACTUALLY BEEN ABLE TO SPOT A COUPLE OF SEA LIONS THAT WERE ENTANGLED AND NOTIFY THE MARINE MAMMAL CARE PEOPLE SO THAT THEY COULD GO OUT THERE. THAT'S A HUGE SAVINGS FOR THEM BECAUSE IT'S VERY EXPENSIVE AND TIME CONSUMING. EVERY TIME THEY GET A REPORT, IF THERE'S A SEA LION ENTANGLED, THEY'VE GOT TO GO DOWN THERE. THEY'VE GOT TO PUT A BOAT OUT THERE, THEY'VE GOT TO GO OUT. I MEAN, THERE'S, YOU KNOW, AGAIN, THERE'S ALWAYS LIABILITY WHEN YOU'RE AROUND, THAT SORT OF THING. WE JUST PUT THE DRONE OUT THERE. 15 MINUTES NOTICE. TAKE A QUICK LOOK AND SAY, YEAH, THE SEA LION'S THERE. SO GO PUT YOUR BOAT OUT AND YOU KNOW, AND TRY TO SNARE IT. SO THAT'S WORKED OUT PRETTY WELL ALSO. SO LIKE I SAID, WE TOOK THIS VIDEO PROBABLY 10:00 A.M. THIS MORNING AND YOU'RE ALL FAMILIAR WITH THIS, OBVIOUSLY. BUT I JUST WANTED TO GIVE YOU A ALMOST REAL TIME LOOK AT WHAT IT WAS LIKE THIS MORNING. DOWN ALONG THE MARINA. SO THE PROPERTIES WE HANDLE ARE RIGHT, STARTING AT THE BOTTOM OF YOUR SCREEN, LOOKING OUT TOWARDS THE CALIFORNIA SURF CLUB ALL THE WAY DOWN TO PIER PLAZA. AND THEN THE CITY OWNED PORTION OF WHAT WE CALL FISHERMAN'S WHARF. THERE'S ROB RESNICK THAT'S GOT REDONDO LANDING, AND THEN YOU'VE GOT MR. KWAN, THAT'S GOT THE WHAT WE CALL THE OLD MONSTER PIER, WHERE MAISON RIZ USED TO BE QUITE SOME TIME AGO. SO THOSE ARE SEPARATE. WE WORK WITH THEM QUITE A BIT. YOU KNOW, AND EXCHANGE INFORMATION AND TRY TO MAINTAIN A GOOD COOPERATIVE RELATIONSHIP THERE. SO THE NEXT THING I'M GOING TO SHOW YOU IS A COUPLE OF MARKET REPORTS. AND IT'S IN THE ORDER OF THE HARD COPIES THAT I GAVE YOU. [00:10:04] THIS IS FROM COSTAR, WHICH OWNS ALL THE DATA THAT ALL THE MAJOR REAL ESTATE FIRMS USE. AND THIS IS THE SUB MARKET REPORT FOR THE BEACH CITIES AND THE PALOS VERDES PENINSULA, WRAPPING AROUND TO SAN PEDRO. SO IT GIVES US A ROUGH SNAPSHOT. IT'S I WOULD NOT DRAW TOO MANY CONCLUSIONS FROM THESE ROUGH NUMBERS BECAUSE THE MARKETS ARE SO DIFFERENT. YOU KNOW, FROM THE PENINSULA TO REDONDO BEACH, UP TO MANHATTAN BEACH, AS FAR AS VACANCIES, RENTAL RATES, THINGS LIKE THIS. BUT IT'S GOOD, LIKE ANY ECONOMIC OVERVIEW TO GET A SENSE OF THE DIRECTION OF THINGS. AND WHAT I WANTED TO POINT OUT HERE IS, I THINK WHAT A LOT OF US ALREADY INSTINCTIVELY KNOW IS THAT THE OFFICE MARKET IS SOFT. LOS ANGELES AS A WHOLE IS ONE OF THE WORST OFFICE MARKETS IN THE COUNTRY. IT'S ABSOLUTELY A DISASTER DOWNTOWN. SOME OF THE BIG HIGH RISES HAVE BEEN FORECLOSED ON. SOUTH BAY IS DOING BETTER. WHAT'S INTERESTING IS THAT THE MARKETS THAT ARE HURT WORST ARE THE NICEST BUILDINGS, THE MOST EXPENSIVE BUILDINGS, THE TWO STAR, THREE STAR PROPERTIES BASED ON A FIVE STAR TYPE RANKING. THOSE ARE ACTUALLY HOLDING UP, YOU KNOW, VACANCIES AROUND 10% OR SO. SO AT PIER PLAZA, WE FLUCTUATE BETWEEN ABOUT 88%, 90%, MAYBE 91%. IT DEPENDS. THERE'S ALWAYS SOME PEOPLE MOVING OUT. WE'VE SIGNED A BUNCH OF NEW LEASES RECENTLY. AND YOU KNOW, AND CASH FLOW IS GOING TO BE GOOD, BUT IS GOING TO BE BETTER GOING FORWARD. SO UP HERE SOME ADDITIONAL FORECASTS. AND AGAIN THESE ARE JUST FORECASTS. BUT YOU CAN SEE ON THE TOP GRAPH THAT THE NET ABSORPTION IS NEGATIVE FOR MANY YEARS GOING OUT. THE LOS ANGELES VACANCY AGAIN THAT'S THE THAT'S THE OVERALL DISMAL STATE OF THE CITY OF LA VACANCY. YOU CAN SEE IS THAT YELLOW LINE AT THE TOP IT'S TERRIBLE. WE'RE DOWN INTO THE GREEN LINE THERE. AND THAT'S THE PLACE TO BE RIGHT NOW. THE BOTTOM GRAPH IS JUST A DIFFERENT WAY AT LOOKING AT THIS. BUT YOU CAN SEE VACANCIES ARE FORECAST TO GO UP FOR MAYBE ANOTHER SIX MONTHS. SOME PEOPLE SAY A YEAR. YOU'LL ALSO SEE IN THE HARD COPY THAT YOU'VE GOT OF THIS PARTICULAR REPORT. I THINK IT'S IN THE RETAIL REPORT, WHICH IS RIGHT AFTER THIS, BUT IT SHOWS OVER THE LAST FIVE YEARS A RENTAL RATE INCREASE OF ABOUT 6%, 6.1%, I THINK IS WHAT IT IS. HOWEVER, THE VERY LAST PAGE OF THE DOCUMENTS THAT YOU'VE GOT IN FRONT OF YOU, IT'S A SINGLE PAGE. I RAN THOSE NUMBERS AND I PUT IN INFLATION ADJUSTED AND THE REAL RENTAL RATE GROWTH IS DOWN. IT'S DOWN VERY HARD WHEN YOU FACTOR IN INFLATION. AND SO ONE OF THE THINGS WE LIKE IS THAT OUR RENTAL RATE IS GOING UP. IN A COUPLE OF CASES WE'VE HAD TO KEEP IT EVEN. BUT IT HAS BEEN STEADILY GOING UP. SO THAT'S A GOOD THING. AND THAT IS STILL OFFICE. IF WE COULD SCROLL THROUGH TO THE RETAIL DAVE. OKAY HERE'S THE RETAIL SUBMARKET REPORT. AND IF WE SCROLL INTO THIS, RETAIL IS DOING BETTER. HOWEVER THOSE RED NUMBERS AT THE TOP. THAT'S A NEGATIVE ABSORPTION RATE, MEANING THERE'S MORE SPACE BECOMING VACANT THAN THAN IS BEING LEASED RIGHT NOW. AND THAT'S THE CASE THROUGHOUT SOUTHERN CALIFORNIA. THERE'S A VAST DIFFERENCE IN THE TYPES OF RETAIL PROPERTIES OUT THERE. THERE'S MALLS, THERE'S STRIP CENTERS, THERE'S STANDALONE BUILDINGS, THERE'S LITTLE NEIGHBORHOOD CENTERS. I'M NOT QUITE SURE HOW WE WOULD DESCRIBE WHAT WE HAVE BECAUSE WE KIND OF HAVE WE DON'T HAVE THEM ALL. BUT WE'VE GOT A MIX OF FREESTANDING BUILDINGS, SORT OF A STRIP CENTER VIBE DOWN THERE ON INTERNATIONAL BOARDWALK, ALTHOUGH OURS FACES THE WATER, WHICH IS A GREAT BENEFIT. BUT AGAIN, FROM A MACRO STANDPOINT, IT'S NICE TO BE ABLE TO TAKE A LOOK AT THESE BIG NUMBERS AND GET A SENSE OF WHERE THE MARKET IS GOING. IT HELPS US HOME IN BETTER WITH WHAT WE CAN TRY TO ACHIEVE AS FAR AS RENTAL RATES. IT HELPS US KEEP OUR CLIENT BETTER INFORMED AS TO WHAT WE'RE SEEING OUT THERE. AND DAVE, IF YOU COULD SCROLL THROUGH A LITTLE BIT MORE THERE. AND THIS IS ALL DATA FROM COSTAR. AND COSTAR IS WHERE WE ALL BUY OUR DATA FROM CBRE OURSELVES. IT'S BEEN A GREAT LEVELER AS FAR AS ENABLING SMALLER FIRMS LIKE OURSELVES TO BE ABLE TO COMPETE WITH THE BIG CBRES, [00:15:01] BECAUSE WE ALL HAVE THE SAME DATA. ACTUALLY, WE HAVE MORE OF AN ADVANTAGE BECAUSE WE'RE ACTUALLY THE USERS, YOU KNOW, BROKERS LIKE MYSELF, WE'RE ACTUALLY READING IT, WHEREAS THE BIGGER FIRMS GO THROUGH RESEARCH DEPARTMENTS, YOU'VE GOT TO REQUEST INFORMATION. THERE'S A LAG TIME. WE CAN RESPOND MUCH QUICKER. I USED TO WORK FOR CUSHMAN WAKEFIELD. I USED TO WORK AT COLLIERS INTERNATIONAL, YOU KNOW, SO I'VE WORKED WITH A NUMBER OF THE BIG FIRMS. AND THEN ABOUT 15, 17 YEARS AGO, I STARTED MY OWN FIRM. OKAY, SO HERE'S MARKET ASKING. IF YOU TAKE A LOOK AT THE TOP GRAPH, YOU CAN SEE THE RENT GROWTH YEAR OVER YEAR. AND IT'S DOWN THAT STARTS PRIOR TO COVID. AND AS SOON AS COVID HIT IN EARLY 2020 YOU CAN SEE IT DROPPED DOWN. THERE WAS A BIT OF A RECOVERY. AS I THINK THE MONEY FLOWED IN FROM THE FEDERAL GOVERNMENT TO KEEP SO MANY PEOPLE AFLOAT. BUT IT HAS BEEN STEADILY DOWN. THE FORECAST IS SOMETIME IN 2026. WE'RE GOING TO SEE A RECOVERY ON THAT. BUT I THINK THESE FORECASTS ARE SLIGHTLY BETTER THAN A GUESS. BUT THAT'S WHAT THE FORECAST SHOWS. BOTTOM GRAPH YOU CAN SEE THE SAME THING. YOU KNOW, ASKING RENTS ARE ARE GOING DOWN THE INTERESTINGLY THE MALL RENTS. MALLS ARE DOING SLIGHTLY BETTER. I THINK PART OF THE REASON FOR THAT IS MALLS ARE SHIFTING OVER TO A MULTI-USE TYPE USAGE WHERE YOU'VE GOT DOCTORS OFFICES, YOU'VE GOT LAWYERS OFFICES, YOU'VE GOT YOU GOT MANY MORE PEOPLE THAN JUST PURE RETAIL. AND SOME OF THE BIG MALL OPERATORS HAVE BEEN FAIRLY SUCCESSFUL IN BEING ABLE TO KEEP THEIR VACANCIES LOW. ALL RIGHT. SO LET ME SEGUE FROM THE COSTAR DATA THAT WE'VE GOT TO A COMPANY CALLED PLACER.AI ALMOST NOBODY'S GOT THIS. THIS IS VERY NEW TECHNOLOGY. IT'S VERY EXPENSIVE. I WANTED TO MAKE THE INVESTMENT IN IT BECAUSE I THOUGHT IT WOULD GIVE US A REALLY UNIQUE LOOK AT WHAT'S GOING ON, AND I JUST PICKED A BUSINESS OUT, IN THIS CASE, CALIFORNIA SURF CLUB, BECAUSE EVERYBODY'S FAMILIAR WITH THAT RIGHT NOW. BUT THERE'S AN AERIAL PHOTOGRAPH WE CAN GEOFENCE AND THIS IS ALL LIVE. WE DO THIS RIGHT AT OUR DESKTOP. WE CAN GEOFENCE EXACTLY AROUND THE PARCEL THAT WE WANT TO ANALYZE, WE CAN GET DOWN TO AS SMALL AS 5,000 FT² ON IT, AND THEN FROM THERE YOU CAN DRILL IN AND TAKE A LOOK AT. AND THIS IS MAY 1ST THROUGH AUGUST 4TH. SO THEY SORT OF OFFICIALLY OPENED WHEN BEACH LIFE FESTIVAL HIT THAT FIRST WEEKEND IN MAY. SO WE TOOK A LOOK AT MAY 1ST THROUGH AUGUST 4TH. THIS IS GOOD THROUGH LAST WEEK. AND HOW MANY VISITS THEY HAD, HOW MANY VISITORS THEY HAD THE VISIT FREQUENCY DURING THAT SIX WEEKS, 1.76. SO MOST PEOPLE CAME BACK MORE THAN ONCE. AVERAGE DWELL TIME, 140 MINUTES. SO THEY HUNG AROUND A LOT. PANEL VISITS. PANELS ARE PHONES. SO THIS IS ALL TRACKING DATA FROM PHONES. WE VOLUNTARILY CARRY THESE THINGS AROUND, AND IT ENABLES ALL KINDS OF PEOPLE TO BE ABLE TO TRACK THIS DATA. SO WITH THAT, WE CAN TAKE A LOOK AT THE EXACT WEEKS. YOU KNOW THE VISITOR NUMBERS RIGHT THERE. NEXT SLIDE DAVE. ALL RIGHT. THIS IS INTERESTING BECAUSE THIS IS WHERE THE PEOPLE LIVE THAT HAVE GONE TO THE CALIFORNIA SURF CLUB BETWEEN MAY 1ST AND AUGUST 4TH. AND THE BRIGHTER COLORS, THE RED IS WHERE MOST OF THEM LIVE. AND YOU CAN SEE IT'S VERY HIGHLY CONCENTRATED IN THE SOUTH BAY AREA, WITH A SMATTERING OF OTHER PEOPLE COMING FROM ELSEWHERE IN SOUTHERN CALIFORNIA. NEXT SLIDE. OKAY. THIS SHOWS A LITTLE BIT DIFFERENT INFO. IT SHOWS WHERE THE MAJORITY OF THE PEOPLE ARE VISITING FROM. AND AGAIN, IT MIMICS. ACTUALLY WHAT IT SHOWS IS THAT THEY'VE GOT A VERY HIGH CONCENTRATION OF THEIR CUSTOMER BASE RIGHT HERE BETWEEN MANHATTAN BEACH, HERMOSA BEACH, REDONDO BEACH. THERE'S A LITTLE SPOT UP IN EL SEGUNDO. OKAY, NEXT SLIDE IS GOOD. WITH THIS DATA HERE, WE CAN TELL YOU HOW MANY PEOPLE PER HOUSEHOLD THE VISITORS ARE. WE CAN TELL YOU WHAT PERCENTAGE OF THEM HAVE CHILDREN. WE CAN TELL YOU THEIR MEDIAN INCOME. AVERAGE INCOME. THEIR HOUSE VALUE. THEY DON'T GIVE US. AND WE DON'T WANT SPECIFIC ADDRESSES. SO THEY KEEP THIS WITHIN A FEW BLOCKS WHERE PEOPLE ACTUALLY WHERE PEOPLE ACTUALLY LIVE. AND THIS IS VERY VALUABLE DATA. AND I'LL SHOW YOU WHY IN A MINUTE. [00:20:04] OKAY. THERE'S HOURLY VISITS. THIS OVERLAYS VERY CLOSELY WITH WHAT WE'RE SEEING WITH THE REST OF THE HARBOR AREA. SO MOST PEOPLE ARE FOLLOWING THAT GRAPH RIGHT THERE WHEN THEY'RE VISITING BETWEEN 6:00 P.M. AND 7:00 P.M. FRIDAY AFTERNOON IS BIG. NEXT SLIDE. TAPERS OFF A LITTLE BIT SATURDAY AND THEN SUNDAY. BUT FRIDAY'S THE BIG DAY FOR THE SURF CLUB. OKAY, SO THIS NEXT PACKAGE IS A SIDE BY SIDE COMPARISON. AND WE COULD DO THIS OUT TO ABOUT FIVE DIFFERENT LOCATIONS DOWN THERE IN THE HARBOR DEPARTMENT. BUT I TOOK OUR AREA OF RESPONSIBILITY THAT WE HANDLED FOR LEASING WITH THE CITY AND OVERLAID THAT WITH WHAT YOU JUST SAW ON THE SURF CLUB, BECAUSE WE WANTED TO SEE THE DIFFERENCES IN THE DEMOGRAPHICS AND WHO THESE PEOPLE ARE THAT COME TO PLACES OTHER THAN THE SURF CLUB. SO THERE'S THE GEOFENCE THAT WE DREW AROUND THE AREAS OF OUR RESPONSIBILITY. NEXT GRAPH. ALL RIGHT. SO ON THE LEFT WITH THE LITTLE BLUE DASH AT THE TOP IS CALIFORNIA SURF CLUB AND THE RIGHT IS THE REDONDO WATERFRONT PROPERTY. THAT'S ALL THE REST OF IT. SO THAT'S THE NUMBER OF VISITS 53,000 VERSUS 829,000. SCROLL DOWN TO THE VISITOR FREQUENCY. I THOUGHT WAS INTERESTING. BACK UP. SO VISITOR FREQUENCY SO FAR EARLY ON, CALIFORNIA SURF CLUB IS GETTING A LITTLE BIT MORE STICKINESS AS FAR AS PEOPLE COMING BACK. THAT'S UNDERSTANDABLE. IT'S BRAND NEW. PEOPLE PAID MONEY TO BE MEMBERS OF THAT. THEY'RE PROBABLY GOING TO FREQUENT IT MORE OFTEN WHEN IT FIRST OPENS UP. THE VISITS YEAR OVER YEAR. I WOULD DISCOUNT THAT BECAUSE SURF CLUB'S BRAND NEW. SO OBVIOUSLY THEY'RE GOING TO HAVE A HUGE INCREASE IN VISITS. THE REDONDO WATERFRONT PROPERTY IS ACTUALLY DOWN 3.3%. BUT YEAR OVER YEAR, TWO YEARS, WE'RE UP 7.8%. AND THE NEXT PAGE IS THE THREE YEAR OVERLAY. SO VERSUS THREE YEARS AGO. WE'RE UP 14% BUT THAT WAS COVID. SO THERE WASN'T AS MUCH BUSINESS DOWN THERE. SO THAT REFLECTS WHAT A LOT OF US ALREADY KNOW. OKAY THIS IS THE VISITS TREND ON THE LEFT SIDE WHERE IT SAYS MAY 1ST, THOSE HIGHER LINES THERE COINCIDE WITH THE NUMBER OF VISITORS THAT WERE BROUGHT IN BY BEACHLIFE FESTIVAL. THAT MAKES A LOT OF SENSE BECAUSE IT BRINGS IN A LOT OF PEOPLE THAT WOULDN'T NORMALLY COME DOWN HERE ON A REGULAR BASIS. BUT THIS IS GREAT INFO FOR US IN A NUMBER OF DIFFERENT WAYS. NUMBER ONE, JUST WHAT WE SEE. BUT NUMBER TWO, I'M REALLY INTERESTED IN SEEING HOW THE SURF CLUB BRINGS IN OVER LONG TERM BASIS A DIFFERENT DEMOGRAPHIC. ARE WE GETTING NEW PEOPLE OR ARE THEY SIMPLY SUCKING IN PEOPLE THAT WOULD OTHERWISE BE USING OUR OTHER BUSINESSES DOWN THERE? SO IT WOULD BE NICE. IDEALLY, IF SURF CLUB IS PROVIDING A NET INCREASE IN NEW PEOPLE, DIFFERENT PEOPLE THAT AREN'T AS FAMILIAR WITH REDONDO BEACH AND THEY'RE DOWN HERE BECAUSE OF THE SURF CLUB. HOPEFULLY THEY WILL THEN ALSO FREQUENT SOME OF OUR OTHER BUSINESSES OR BRING THEIR KIDS DOWN HERE. GO FISHING. SOMETHING LIKE THAT. NEXT SLIDE. OKAY. SO DO YOU REMEMBER THAT LITTLE DIAGRAM BEFORE? OKAY THIS IS CALIFORNIA SURF CLUB YOU'VE SEEN THAT BEFORE. NEXT SLIDE DAVE. ALL RIGHT. THAT'S THE REST OF THE AREA. SO YOU CAN SEE SURF CLUB IS PULLING FROM A VERY TIGHT DEMOGRAPHIC. VERY WELL TO DO DEMOGRAPHIC AS YOU'LL SEE IN A MINUTE. WHEREAS THE REST OF THE HARBOR AREA IS BRINGING IN MANY MORE PEOPLE. WE'RE A DESTINATION. AND I'LL GIVE YOU SOME NUMBERS THAT SURPRISE ME. WE'RE ALL FAMILIAR WITH THE SANTA MONICA PIER, WITH THE BIG FERRIS WHEEL AND THINGS LIKE THAT. WE GET DOUBLE THE VISITORS ANNUALLY AS THEY DO. ASSET THIS IS AND HOW GREAT IT REALLY IS AND HOW INTERESTING IT IS FOR ALL THESE PEOPLE THAT ARE COMING FROM THE VALLEY, YOU KNOW, OUT TOWARDS PALM SPRINGS, FOR EXAMPLE, TO COME HERE AND VISIT. WE GET A LOT OF PEOPLE DOWN HERE. YOU KNOW, WHAT WE WANT IS TO YOU'LL SEE IN A MINUTE. HAVE THEM STICK AROUND A LITTLE BIT LONGER AND YOU KNOW, SPEND MORE TIME, SPEND MORE MONEY AND HELP OUR LOCAL BUSINESSES OUT. SO WE REALLY LIKE THESE TWO GRAPHS. IF YOU COULD GO BACKWARDS ONE AND TAKE A THERE YOU GO. [00:25:03] SO THAT'S SURF CLUB AND FORWARD AND THAT'S THE REST OF THE HARBOR AREA. REALLY GREAT DATA. OKAY. NEXT SLIDE. ALL RIGHT THAT'S SIMILAR. ALL RIGHT YOU'VE SEEN THAT BEFORE THAT SURF CLUB. ALL RIGHT SO YOU'VE SEEN THAT DATA BEFORE THAT'S THE SURF CLUB. NOW THERE'S THE OVERLAY OF WHEN MOST PEOPLE SHOW UP. NOW OBVIOUSLY THE BLUE COLUMN IS A LOT LESS PEOPLE COMPARED TO THE REST OF THE HARBOR, BUT IT SHOWS A VERY SIMILAR TIME. IDEALLY, WE WOULD LIKE TO SEE MORE BUSINESSES, A TENANT MIX WHERE THEY PULL PEOPLE IN FROM DIFFERENT TIMES THAN WHEN EVERYBODY ELSE IS COMING DIFFERENT DAYS EARLIER IN THE WEEK AND DIFFERENT TIMES. THAT'S SORT OF THE HOLY GRAIL THAT YOU WANT IS TO SMOOTH THAT OUT A LITTLE BIT. NEXT SLIDE. ALL RIGHT SO DAILY VISITS SAME THING. IT'S VERY SIMILAR JUST LOOKING AT IT A DIFFERENT WAY FROM THE OTHER GRAPH. AND SO THE PLACER.AI DATA THAT WE'VE GOT. I MEAN, THE CHAMBER OF COMMERCE DOESN'T HAVE THIS. CITIES DON'T HAVE THIS. I MEAN, IT'S, YOU KNOW, THE VERY LARGEST REAL ESTATE FIRMS HAVE THIS. AND SO I THOUGHT FROM A COMPETITIVE STANDPOINT, LET'S GET THIS ALSO. THIS IS SUPER DATA TO HAVE IT'S ALSO AVAILABLE. BUT WE'VE GOT THE LICENSE FOR ALL OF CALIFORNIA. SO IT'S REALLY AVAILABLE FOR ANYTHING ELSE THAT THAT OUR CLIENTS ARE INTERESTED IN EITHER IN THE CITY OR ELSEWHERE FOR COMPARISON PURPOSES. YOU COULD COMPARE ONE OF OUR RESTAURANTS TO ANOTHER RESTAURANT UP IN THE VALLEY OR SOMETHING LIKE THIS, AND COMPARE THAT DATA AND SEE HOW THEY'RE DOING, LIKE CHEESECAKE FACTORY. YOU CAN TAKE A LOOK AT, YOU KNOW, WHO ARE THE PEOPLE AT OUR CHEESECAKE FACTORY ARE PULLING VERSUS OTHER CHEESECAKE FACTORIES AND HOW DO THEY RANK? AND AGAIN, I THINK IT'S FASCINATING TO BE ABLE TO TELL. QUALITY SEAFOOD FOR EXAMPLE. WHERE DO YOU THINK MOST PEOPLE GO AFTER THEY LEAVE? QUALITY SEAFOOD IF THEY STAY IN THE HARBOR? TWO PLACES. KINCAID'S A LITTLE UPSCALE AND BARLEY VIBES. THEY WOULD SAY UPSCALE. I WOULD SAY IT'S A LITTLE ROUGHER. OKAY, BUT IT'S REALLY INTERESTING. HOW MANY PEOPLE COME FROM THE SONESTA HOTEL? YOU KNOW, VISITORS TO THE AREA. BETWEEN 2.5% AND 3% OF ALL OF OUR CUSTOMERS TO THE HARBOR AREA COME FROM THE SONESTA HOTEL. CALIFORNIA SURF CLUB IT'S BETWEEN 6 AND 7%. SO THEY'RE GETTING A LOT OF VISITORS FROM OUT OF TOWN. AND I WOULD LIKE TO BE ABLE TO DRILL INTO THAT A LITTLE BIT DEEPER AND UNDERSTAND IT. WE ALSO WILL PROVIDE THIS DATA TO ANY OF THE CITY'S TENANTS THAT ARE DOWN THERE FREE OF CHARGE. SO IF THEY WOULD LIKE TO BE ABLE TO TAKE A LOOK AT HOW THEY'RE DOING AND WHAT THEIR DEMOGRAPHICS ARE, WE WILL RUN THAT REPORT. IT'S EASY FOR US TO DO. AND WE'LL GIVE IT TO HIM FOR NO CHARGE. WHAT THESE HARD COPIES AND THE SLIDES DON'T REALLY SHOW YOU WITH THE PLACER.AI IS THAT IT'S LIVE. AND SO WHEN I'M SITTING AT MY DESKTOP, I CAN HOVER OVER A LOT OF THIS DATA AND I CAN GET WAY DEEPER IN WHAT YOU'RE SEEING IS JUST SNAPSHOTS THAT I TOOK OUT FOR PURPOSES OF TONIGHT. BUT IF WE ACTUALLY HAD A LIVE INTERNET CONNECTION, I COULD SHOW YOU HOW MUCH MORE DEEPER THIS THIS GOES. SO ENOUGH OF PLACER. THIS IS AN EXAMPLE OF A MARKETING BROCHURE THAT WE'VE GOT OUT RIGHT NOW FOR THE FORMER FUN FACTORY. AND YOU CAN DRILL INTO THIS AND GET AN AERIAL VIDEO, OR YOU CAN SCAN IT AND GO STRAIGHT TO THE AERIAL VIDEO. NEXT PAGE IS JUST SOME ADDITIONAL PHOTOGRAPHS, SOME SPACE FEATURES. NEXT PAGE. ANOTHER AERIAL VIDEO HELPS PEOPLE WHO AREN'T IMMEDIATELY FAMILIAR WITH THE WITH THE AREA NEXT PAGE. ADDITIONAL PHOTOGRAPHS. NEXT PAGE. PRETTY GOOD PICTURE OF WHERE IT FITS IN WITH THE REST OF REDONDO BEACH. NEXT PAGE. IF YOU'RE REALLY UNFAMILIAR WITH THE AREA, THAT'LL HELP. NEXT PAGE. AND THAT'S A FLOOR PLAN THAT'S IN AS BUILT THAT WE HAD DONE. WHICH WILL COME IN HANDY WHEN WE EVENTUALLY GET A TENANT OR MULTIPLE TENANTS TO GO INTO THAT SPACE. SO THAT'S JUST AN EXAMPLE OF HOW WE DO SOME OF OUR MARKETING. YOU CAN SEE OUR WEBSITE DOWN BELOW. IT'S PRETTY EASY TO REMEMBER. IT'S REDONDOBEACHLEASING.NET OR REDONDOBEACHLEASING.COM. IT BOTH GOES TO THE SAME PLACE. SO WE OWN THAT WEBSITE. IT'S CONNECTED TO LOOP NET, WHICH IS OWNED BY COSTAR. SO YOU CAN CLICK INTO OUR WEBSITE AND GET LOTS OF INFORMATION ON THE REDONDO HARBOR AREA, ALL THE VACANCIES, [00:30:03] INFORMATION ABOUT EACH PART OF THE PEER, ETC. SO NEXT PAGE, THAT'S THE LAST PAGE. OKAY. THIS IS THE LAST PAGE THAT I MENTIONED EARLIER OF THE HARD COPIES THAT YOU HAVE. THAT'S INFLATION ADJUSTED GOING BACK TO RIGHT BEFORE COVID WHERE RENTS WERE GOING UP AND THEN THEY COLLAPSED. SO THE ACTUAL DATA WILL SAY THERE WAS A 6.1% INCREASE OVER THIS SAME FIVE YEARS. THIS IS RETAIL. BUT YOU CAN SEE INFLATION ADJUSTED. IT'S REALLY BAD OUT THERE FOR LANDLORDS BECAUSE IT'S BAD FOR TENANTS RIGHT NOW. AND THAT'S IT FOR THE HARD COPY PORTION OF IT. AND I'M OPEN TO ANY AND ALL QUESTIONS THAT YOU GOT. I ALSO WOULD LIKE TO SAY ANY TIME YOU'RE INTERESTED IN GETTING MORE DATA, WE COULD CERTAINLY RUN IT FOR YOU EASILY THROUGH THE HARBOR DEPARTMENT. HAPPY TO PROVIDE THAT. ALSO HAPPY TO SHOW YOU OUR OFFICES DOWN THERE AT PIER PLAZA. IF YOU WANT TO SWING BY SOMETIME AND MEET THE PROPERTY MANAGEMENT PEOPLE AND JUST SEE HOW WE HANDLE THINGS. DOWN THERE, I'M THERE ALMOST ALL THE TIME. SO ANY QUESTIONS? HAPPY TO ANSWER. HOW'S THE LEASING COMING ON THE FUN FACTORY? WE'VE BEEN TALKING WITH A MIXED USE BOWLING ALLEY, RESTAURANT, SPORTS CLUB CONCEPT. THAT'S A BIG SPACE IN THERE YES, 29,550FT. AND SO WE'VE HAD SOME PRELIMINARY DISCUSSIONS WITH THEM. THERE'S A COUPLE OF COMPANIES THAT ARE PUTTING THOSE TOGETHER NOW, AND THEY SEEM TO BE DOING QUITE WELL. I'VE TALKED WITH A COUPLE OF OUR TENANTS DOWN THERE JUST TO SEE WHAT WOULD YOU THINK ABOUT THAT? AND THEY HAVE FALLEN OVER THEMSELVES. THEY THINK THAT WOULD BE A HUGE DRAW FOR THE KIDS, FOR THE PARENTS, FOR THE YOU KNOW, TRAFFIC YOU KNOW, PARKING REVENUE ETC. YOU KNOW, FUN FACTORY'S USAGE OVER ALL THOSE YEARS. AND SO IT'S A WAYS OF AWAY STILL, BUT IT'S AN INTERESTING SPACE WE'LL GET AT LEASE. WITH THE SKATE PARK THERE WOULD BE PERFECT, ABSOLUTELY PERFECT. YEAH. OKAY. ANYBODY ELSE HAVE QUESTIONS? GENERALLY WHAT ELSE IS OPEN AND WHAT ARE THE PROSPECTS FOR IT? OUR RETAIL IS ALL LEASED. WE'RE 100% LEASED. HOT DOG FACTORY IS STILL VACANT IT'S LEASED. BUT THEY'RE STRUGGLING A BIT WITH L.A. COUNTY HEALTH. YOU KNOW, TO BE ABLE TO GET THEIR PERMITS. IT'S A TIGHT LITTLE SPACE AND IT'S HARD TO PUT EVERYTHING IN THE WAY L.A. COUNTY HEALTH WANTS. THEY KNOW WHAT THEY'RE DOING, THOUGH. IF ANYBODY CAN MAKE THAT HAPPEN, IT'S. THIS IS THE CORPORATE HOT DOG GOING TO STICK PEOPLE PUBLICLY TRADED FIRM BASED UP IN BEVERLY HILLS. THEY OWN A BUNCH OF DIFFERENT RESTAURANT BRANDS. SO THEY'VE GOT A WHOLE TEAM OF PEOPLE THAT JUST DO THIS SORT OF THING, AND WE'LL SEE. WE'VE HAD TENANTS IN THE PAST. LOOK, IT'S OLD STRUCTURES. YOU GET DOWN THERE ON INTERNATIONAL BOARDWALK. I MEAN, IT WAS BOAT STORAGE. I MEAN, 50, 60, 70 YEARS AGO. I DON'T KNOW HOW THAT EVENTUALLY MORPHED [LAUGHTER] INTO WHAT IT IS NOW. BUT YOU TRY TO OVERLAY TODAY'S REQUIREMENTS BY BIG BUREAUCRACY LIKE L.A. COUNTY AND L.A. COUNTY HEALTH WITH BOAT STORAGE DOWN THERE WITH LEAKY ROOFS AND THINGS LIKE THAT AND IT'S AND IT'S TOUGH. IT'S TOUGH, BUT IT'S ALL LEASED, SO RETAIL IS ALL LEASED. I WOULDN'T SAY WE'VE GOT A WAITING LIST, BUT I'VE GOT A NUMBER OF PEOPLE THAT ARE INTERESTED IN TALKING TO US. IF ANY SPACE DOES BECOME AVAILABLE. OUR RENTS ARE VERY COMPARABLE WITH THE TYPE OF PROPERTY WE'VE GOT VERSUS WHAT EVERYBODY ELSE IS GETTING. NOW, WE'RE NOT GOING TO GET MANHATTAN BEACH RENTS DOWN THERE. BUT WE'RE CERTAINLY DOING BETTER THAN I HOPE ROB RESNICK ISN'T WATCHING. BUT, YOU KNOW, THE MOST RECENT LEASE THAT WAS THAT WAS DONE WITH THE OLD BRIXTON SPACE DOWN THERE. I MEAN, THAT SPACE HAS BEEN VACANT FOR TEN YEARS. AND I'M HAPPY THAT SOME OF THE SAME PEOPLE THAT BARLEY VIBES HAVE LEASED THAT SPACE, BUT THAT RENTAL RATE WAS MUCH LOWER THAN IN THE PERCENTAGE RENT IS MUCH LOWER THAN IF YOU REALLY LOOK AT THE DEAL THAN WHAT WE'RE ABLE TO ACHIEVE. ONE OF THE THINGS THAT WE'VE BEEN FOCUSING ON SINCE THE CITY ORIGINALLY HIRED US TO HANDLE THE LEASING IS KEEPING THE [00:35:04] PLACE FULL. I MEAN, THE CITY'S GOALS HERE ARE DIFFERENT THAN A PRIVATE SECTOR PROPERTY OWNER. A PRIVATE SECTOR PROPERTY OWNER CAN AFFORD TO HAVE SOME VACANCIES, WHICH WILL COME WHEN YOU'RE PUSHING THE RENTAL RATES AS HARD AS THEY POSSIBLY CAN. EITHER PEOPLE CAN'T RENEW OR IT'S JUST TOO EXPENSIVE FOR THEM TO MOVE IN. A LOT OF TIMES THEY MAY HAVE LOANS IN PLACE THAT REQUIRE THEM TO HAVE A CERTAIN RENTAL RATE THAT MIGHT BE HIGHER THAN THE MARKET RIGHT NOW. AND SO THE SPACE WILL SIT THERE VACANT BECAUSE THEY CAN'T BREACH THEIR LOAN COVENANTS ON THAT. WHAT THE CITY IS INTERESTED IN IS CASH FLOW. IT DOESN'T MATTER SO MUCH WHAT THE ACTUAL PROPERTIES ARE WORTH. IF YOUR PRIVATE SECTOR LANDLORD, YOUR RENTAL RATES VERY MUCH DETERMINE WHAT THE VALUE OF YOUR PROPERTY IS. AND SO AGAIN YOU COULD TOLERATE SOME VACANCY. WHAT WE WANT IS A FULL PROJECT. WE DON'T REALLY CARE SO MUCH WHAT YOU COULD REFINANCE IT FOR BECAUSE THE CITY IS JUST NOT IN THAT BUSINESS. SO NOT ONLY DO WE WANT CASH FLOW, BUT A FULL PROPERTY HELPS OUT OTHER TENANTS, AND THE ACTIVITY OF PEOPLE JUST WALKING AROUND CREATES A NICE VIBE. AND THERE'S ALL SORTS OF OTHER BENEFITS THAT COME WITH THAT, SUCH AS PARKING REVENUE. I MEAN, PARKING REVENUE IS A BIG DEAL DOWN THERE. SO TO ANSWER YOUR QUESTION, WE'RE FULL FOR RETAIL. PIER PLAZA WE ALTERNATE BETWEEN 88% AND 90% LEASE, YOU KNOW, WE'LL LOSE SOMEBODY, BUT THEN WE'LL, YOU KNOW, LEASE A COUPLE OF PEOPLE. WE WERE AT 99% LEASE AT THE TIME CENTER CAL YOU KNOW, WAS GOING IN AND THEN WE COULDN'T DO ANY LEASES BECAUSE OF THE LITIGATION. AND WE JUST NATURALLY LOST TENANTS DURING THAT TIME. AND THEN COVID HIT. AND WHEN WE TOOK OVER THE LEASE END OF THE PROPERTY ORIGINALLY IT WAS PROBABLY 50% LEASED. OKAY? WE GOT IT ALL THE WAY UP TO 99% LEASED, DROPPED DOWN DURING THE LITIGATION AND COVID TO PROBABLY 70%. AND SO WE'RE BACK UP PUSHING 90% AGAIN. JUST TO INTERJECT TOO BRIAN'S DONE A GREAT JOB OF, YOU KNOW, AS HE SAID, PIER PLAZA IS UP TO 90%, 10% VACANCY. IT'S ALWAYS GOING TO BE THAT KIND OF CHANGEOVER IN THOSE YEAR TO YEAR TENANTS. THERE'S ALWAYS GOING TO BE A LITTLE BIT OF VACANCY THERE. BUT INTERNATIONAL BOARDWALK, WE JUST FILLED SCHOLB BREWERY, WHERE DINGY DELI WAS JUST THE OTHER MEETING LIKE A WEEK AGO OR SO THAT SO NOW THAT'S COMPLETELY OCCUPIED. FUN FACTORY IS REALLY THE REMAINING OPPORTUNITY SITE THAT BRIAN AND THE CITY CONTROL. LIKE WHERE THE TENANTS REPORT TO US. ALL THE OTHER OPPORTUNITY SITES ARE REALLY THE MASTER LEASEHOLDERS THAT HAVE TO NEGOTIATE THOSE LEASES. THE MAISON RIZ AS AN EXAMPLE. YOU KNOW, HE ALLUDED TO ROBERT RESNICK BASEMENT LEVEL THAT WAS EMPTY FOR NINE YEARS. WE DON'T PARTICULARLY GO OUT AND SEEK TENANTS FOR THAT. YOU KNOW? YOU KNOW, THE OTHER OPPORTUNITY SITE IS THE JOE'S CRAB SHACK SITE. WE'RE IN NEGOTIATIONS WITH THE MARINE MAMMAL CARE CENTER GETTING CLOSER WITH THAT. SO WE DO HAVE SOMEBODY IN MIND NEGOTIATING RIGHT NOW. BUT FOR THE MOST PART, THE OPPORTUNITY SITES ARE OUTSIDE OF BRIAN'S REALM. IN ORDER TO GIVE THE CITY THE FLEXIBILITY THAT IT NEEDS AND WANTS FOR FUTURE RENOVATIONS OR RECONSTRUCTION, WE'VE GOT A LOT OF FLEXIBILITY BUILT INTO THESE LEASES THAT IS NOT ATTRACTIVE TO A LOT OF TENANTS. FOR EXAMPLE, EVERY SINGLE LEASE THAT WE DO, THE TENANT WILL SIGN, FOR EXAMPLE, A FIVE YEAR LEASE. BUT THE CITY HAS THE ABILITY TO TERMINATE THAT LEASE WITH 12 MONTHS NOTICE. THE TENANT CAN'T. THE CITY CAN. WE HAVE THAT IN ORDER TO KEEP THAT FLEXIBILITY. COME THE DAY THAT A PLAN COMES TOGETHER AND WE'VE GOT TO GET CONTROL BACK OF THAT PROPERTY TO FIX IT UP. IN ADDITION TO THAT, WE'VE GOT BECAUSE OF CITY OWNERSHIP AND THERE'S STATUTORY APPROVALS AND ALSO DOCUMENTATION. WE HAVE A VERY LONG LEASE. IT'S A VERY AND IT DOESN'T MATTER HOW SMALL THE TENANT IS. THE RETAIL LEASE IS BETWEEN 90 AND 100 PAGES. OFFICE LEASE IS PROBABLY 65 PAGES OR SO. BUT WE'VE IMPROVED THAT LEASE OVER TIME. BUT A LOT OF IT IS IN THERE BECAUSE IT'S MUNICIPAL OWNERSHIP AND YOU'VE GOT TO BE ABLE TO COVER A LOT OF BASES THAT A PRIVATE SECTOR LANDLORD CAN'T AND OR DOESN'T NEED TO. IN ADDITION TO THAT, THE APPROVAL PROCESS IS ALL GOING TO BE TRANSPARENT. SO WE'VE GOT TO BRING THIS STUFF TO WHAT HAPPENS IS THAT WHEN I GET TO A POINT IN TALKING TO A TENANT WHERE I THINK WE'VE GOT THE MAKINGS OF A TRANSACTION THAT MAKES SENSE FOR THE CITY, I'LL TALK TO THE HARBOR DEPARTMENT AND THEN THE HARBOR DEPARTMENT, AND I WILL TALK TO THAT TENANT WHEN WE'RE COMFORTABLE THAT THIS IS A GOOD DEAL FOR THE CITY, [00:40:02] THEN WE WILL TAKE IT TO CLOSED SESSION. WHEN THE CITY COUNCIL IS COMFORTABLE WITH THAT, THEN WE'LL GO BACK TO THE TENANT, WE'LL FINALIZE IT AND THEN WE HAVE TO GO TO LEASES. WELL, THAT TAKES TIME. AND WHEN YOU'VE GOT A TENANT THAT'S GOT TO BE MOVED IN IN FOUR WEEKS, WE'VE DONE THOSE BEFORE ON AN EMERGENCY RUSH SESSION, BUT IT COULD TAKE A COUPLE OF MONTHS. IN THE PRIVATE SECTOR, YOU CAN GO OUT AND DO A SMALL LEASE IN A COUPLE OF DAYS, YOU KNOW, SO OCCASIONALLY WE'LL LOSE A TENANT LIKE THAT. IT ALSO AFFECTS, TO A CERTAIN DEGREE OUR RENTAL RATES THAT WE CAN GET. CERTAINLY AT PIER PLAZA, IT'S PRETTY EXPENSIVE FOR AN OFFICE TENANT TO MOVE IN, PUT IN WIRING INFRASTRUCTURE, REDO ALL THEIR PRINTING. YOU KNOW, YOU WORK WITH THEIR EMPLOYEES TO MAKE SURE THAT THEY'RE ON BOARD WITH, WITH COMING DOWN HERE. AND THEN YOU'VE GOT THE ABILITY TO TERMINATE THAT LEASE IN 12 MONTHS. SO IF THEY KNOW US AND IF THEY'RE LOCAL, WE'VE HAD A LOT BETTER LUCK THAN WITH COMPANIES THAT ARE COMING IN FROM THE OUTSIDE. WE JUST HAD THAT TECHNOLOGY FIRM, BIG AEROSPACE FIRM, BUT THEY WANTED A SMALL REPRESENTATIVE OFFICE AND WOULD HAVE BEEN A GREAT TENANT. SUPERB. THEY'RE PUBLICLY TRADED YOU KNOW, SUPERB FINANCIALS ON IT. BUT THEIR LEGAL DEPARTMENT TOOK ONE LOOK AT OUR LEASE AND THEY SAID WE WANT TO REWRITE THE LEASE. AND I SAID WE CAN'T. WE'LL LISTEN TO YOU. BUT THIS IS JUST HOW IT'S GOT TO BE. AND IT WAS A SMALL LEASE, BUT WE LOST THEM. BUT THAT SOMETIMES HAPPENS. SO THAT'S SOME OF THE UNIQUE CHALLENGES THAT WE'VE GOT DOWN THERE. BUT DESPITE ALL THAT, YOU'VE GOT SOMETHING THAT NOBODY ELSE HAS GOT. YOU GOT WATERFRONT PROPERTY. RIGHT AND SO WE REALLY TRY TO EMPHASIZE THAT. WHEN WE FIRST WERE AWARDED THE CONTRACT BY THE CITY, WE WERE THE ONLY FIRM THAT BID ON IT THAT SAID, WE'LL MOVE DOWN HERE. I MEAN, WE WILL ACTUALLY OFFICE IN PLACE. THE FORMER OWNERS BEFORE THE CITY BOUGHT OUT THAT MASTER LEASE AT PIER PLAZA. THEY WERE TRYING TO DO IT FROM CENTURY CITY. AND I REMEMBER DEBRIEFING THEIR LEASING PEOPLE WHEN THE CITY TOOK OVER. AND THE LEASING AGENT WAS VERY EXPERIENCED GUY. AND HE SAID, YOU'LL BE LUCKY IF YOU DO 1 OR 2 LEASES A YEAR. AND I LOOKED AT HIM AND I THOUGHT, NO WAY. WE CAN LEASE THIS PLACE. YOU'RE ON THE WATER, FOR GOD'S SAKE. YOU'VE GOT ALL THIS GREAT WALKABLE AREA AND THE PIER AND EVERYTHING OUT THERE. BUT THAT WAS BECAUSE THEY WERE TRYING TO DO IT FROM CENTURY CITY. SO I THINK THERE'S A VIBE THAT YOU GOT WHEN YOU GOT THE PROPERTY MANAGEMENT TEAM AND EVERYBODY KNOWS EACH OTHER AND WE'RE DOWN THERE AND PEOPLE CAN JUST WALK IN. ROGER, DO YOU HAVE SOMETHING BUT DO YOU KNOW OF ANY NIBBLES ON MASON RIZ OR GOLD'S OR ON THE EMPTY PAD ON THE PIER? EMPTY PAD. I HAD SOME VERY PRELIMINARY JUST TALKS WITH PEOPLE. MOST SERIOUS ONE I TALKED TO BIG RESTAURANT CHAIN. THEY WERE LOOKING FOR AN INVESTMENT BY THE CITY OF ABOUT $2 MILLION. TO BUILD ALL THE INFRASTRUCTURE OUT THERE FOR, LIKE, A 30 YEAR LEASE FOR THE RESTAURANT. AND I EXPLAINED TO THEM, WE'RE NOT REAL ESTATE DEVELOPERS. WE DON'T HAVE THOSE SORTS OF BUDGETS TO GO IN WHEN WE LEASE OFFICE SPACE. HEY, PAINT AND CARPET? MAYBE IS WHAT YOU'RE GOING TO GET. WE DON'T HAVE THE MONEY TO BE ABLE TO RIP OUT ALL THE WALLS AND, YOU KNOW, AND REDO A SPACE AND HAVE THE ABILITY TO TERMINATE THAT LEASE IN 12 MONTHS. IT JUST MAKES NO SENSE. SO WE'RE VERY MUCH ALWAYS FOCUSED ON LEASING SPACES CLOSE TO AS IS AS POSSIBLE. I'LL GIVE YOU AN EXAMPLE. YOU GO UP TO EL SEGUNDO, SOME OF THE HIGH RISES UP THERE WHERE I'VE REPRESENTED CLIENTS BEFORE. YOU'RE REPRESENTING THE TENANT NEGOTIATED WITH THE LANDLORD. AND IT'S NOT UNCOMMON FOR A LANDLORD TO GO TWO YEARS ON A FIVE YEAR LEASE BEFORE THEY SEE ANY NET POSITIVE CASH FLOW, BECAUSE BY THE TIME THEY PUT $70, $80, $100 A SQUARE FOOT INTO THE SPACE, AND THEY'RE GETTING $3 A SQUARE FOOT FOR IT IN RENT. PLUS THEY'VE GOT TO PAY ALL THEIR LEASING PEOPLE AND, YOU KNOW, AND STUFF LIKE THIS. WE AIM TO HAVE POSITIVE CASH FLOW WITHIN A COUPLE OF MONTHS ON OUR LEASES. SO REALLY UNIQUE CIRCUMSTANCES THAT MOST REAL ESTATE FIRMS HAVE REALLY NEVER BEEN EXPOSED TO. AND SO IT'S A REAL INTERESTING CHALLENGE. I ALWAYS CALL IT, YOU KNOW, REAL ESTATE, RUBIK'S CUBE, YOU KNOW, MAKE IT ALL FIT AND WORK TOGETHER. AND WHAT WE'RE HEARING ABOUT PAD 2 AS WELL IS BECAUSE IT'S COMPLETELY UNDEVELOPED. AND YOU'VE GOT TO BRING ALL THE INFRASTRUCTURE OUT THERE, UTILITIES, EVERYTHING. IT'S QUITE AN EXPENSIVE BUILD. AND WHEN YOU LOOK AT IT, IT'S NOT THAT BIG OF A SPACE. IF YOU'RE BUILDING A BUILDING ON THERE THAT IT MIGHT MAKE SENSE TO ATTACH THAT AREA TO THE KINCAID'S LEASE. [00:45:05] WHETHER KINCAID'S TAKES THAT ON OR WHOEVER ENDS UP THERE. AND KINCAID'S AND USES UTILIZES THE PAD TO SITE UNDEVELOPED AS MAYBE A BUILDING, MAYBE IT'S OUTDOOR SEATING, MAYBE IT'S, YOU KNOW, SOME OTHER KIND OF TEMPORARY, LOW COST KITCHEN. THAT'S AN EXPRESS KITCHEN OF THEIR RESTAURANT, SOMETHING ALONG THOSE LINES. AND MAISON RIZ, THEY'VE HAD A NUMBER OF DIFFERENT PEOPLE TALK TO THEM. THEY HAVEN'T BEEN ABLE TO COME TO A DEAL. ONE OF THEIR CHALLENGES IS THAT THEY'VE JUST GOT JUST OVER EIGHT YEARS LEFT ON THEIR ON THEIR MASTER LEASE. AND THAT'S GOING TO REQUIRE MAISON RIZ IS GOING TO REQUIRE A MAJOR INVESTMENT BY WHOEVER GOES IN THERE, PROBABLY A RESTAURANT. AND THEY'RE GOING TO WANT A MUCH LONGER LEASE IF THEY'RE GOING TO INVEST THAT TYPE OF MONEY AND ALL THE MARKETING THAT GOES INTO IT. SO THE MINDSET PEER PEOPLE MR. KWAN, HE'S INTERESTED IN REDEVELOPING THAT OUT THERE, AND THEY'RE IN THE PRELIMINARY STAGES OF WORKING ON A CONCEPT THAT MIGHT BE ATTRACTED TO THE CITY IN ORDER TO, IN ORDER TO EXTEND THAT LEASE. SO WE'VE GOT A GOOD WORKING RELATIONSHIP WITH THEM. MR. KWAN AND I COINCIDENTALLY BOTH SERVED IN OUR RESPECTIVE MILITARIES IN KOREA IN 1978. IF I COULD GIVE AWAY MY AGE A LITTLE BIT ON THERE. SO WE'VE GOT A FEW THINGS IN COMMON, BUT. ONE OTHER QUESTION. YOU'RE SHIFTING GEARS BACK TO THE PLACER.AI STUFF. WHEN YOU LOOK AT THAT, CAN YOU TELL WHAT'S WORKING ON THE PIER? YOU KNOW WHAT'S ATTRACTING NEW VISITORS? REPEAT VISITORS? WHAT, YOU KNOW? WHERE ARE PEOPLE GOING ON THE PIER? WHAT BRINGS THEM DOWN HERE? WE CAN GET INTO THAT 5000FT² A LOT OF MOST OF OUR TENANTS OUT THERE ARE SMALLER THAN THAT. SO WE'VE HAD TO WORK AROUND, YOU KNOW, THE SATELLITE ABILITY TO BE ABLE TO GET DOWN. BUT WHAT WE'VE DONE IS THAT WE CAN GEOFENCE THE ACTUAL UNIT AND THEN DRAG THE GEOFENCE, IF THEY'RE FACING THE WATER OUT OVER THE WATER, IN ORDER TO CREATE THAT 5000FT² SPACE AND THEN BE ABLE TO CATCH THAT ALSO, WE CAN WE DON'T LOOK FOR JUST EVERYBODY THAT WALKS BY. SO WE'RE LOOKING FOR TEN MINUTES OR LONGER USUALLY, WHICH USUALLY MEANS SOMEBODY ACTUALLY WENT INTO A STORE AND SPENT SOME TIME. SO WE IGNORE PEOPLE WALKING YOU KNOW, WALKING THEIR BIKES OR, OR WHATEVER. I WAS GOING TO SAY WALKING THEIR DOGS, BUT THAT'S NOT ALLOWED [LAUGHTER]. SO WE DO HAVE THAT CAPABILITY. BUT AGAIN, THIS IS PRETTY NEW TECHNOLOGY AND NEW TO US, AND WE'RE JUST REALLY GETTING INTO IT NOW AND STARTING TO DEPLOY IT. SO THERE'S GOING TO BE THINGS WE THINK OF AND THAT YOU'LL THINK OF THAT IT WILL BE REALLY VALUABLE TO, AND WE CAN EXPLORE THAT TOGETHER. I THINK THIS EARLY IN THE PROCESS, THE OBVIOUS HITS ARE HITS IT'S QUALITY SEAFOOD, IT'S TONY'S, CALIFORNIA SURF CLUB. THOSE ARE THE MAJOR DRIVERS WHERE PEOPLE ARE ACTUALLY DRIVING FROM FAR AWAY TO EVEN FREQUENT. AND THEN YOU'LL SEE A LITTLE SPILLOVER INTO, LIKE THE ICE CREAM STORE OR SOMETHING AFTERWARDS. YOU KNOW. YOU HAVE BEEN TRACKING ME [LAUGHTER]. THANKS, THANKS A LOT. YEAH, THIS STUFF IS ALMOST FRIGHTENING. I MEAN, WHEN YOU JUST THINK HOW MUCH DATA THEY'VE GOT, THIS IS JUST THE STUFF THAT'S AVAILABLE ON THE COMMERCIAL MARKET. THE REAL STUFF, LIKE EXACTLY WHERE YOU LIVE AND HOW OFTEN YOU WERE OUT IN YOUR BACKYARD WITH YOUR KIDS AND THINGS LIKE THIS. THEY'VE GOT ALL THAT. WE JUST DON'T HAVE ACCESS TO IT. SO GOVERNMENTS GOT THAT OR GOVERNMENT AGENCIES. OKAY THANK YOU, TOM. YEAH. DO THEY, ON THE PLACER.AI STUFF. DO THEY CATEGORIZE TYPES OF BUSINESSES? I MEAN, AND YOU SAID YOU HAD A LICENSE FOR THE ENTIRE STATE OF CALIFORNIA. TO ME, IT WOULD BE KIND OF INTERESTING TO TAKE A LOOK AT, LIKE, TYPES OF BUSINESSES AND WHAT HAS A MASSIVE DRAW AND THEN HAS A TARGET FOR THAT TO PULLING THOSE INTO THE PIER. GOT THAT. IT DOES? CAN AIM FOR A CERTAIN TYPE OF DEMOGRAPHIC AND SEE WHAT SORT OF BUSINESSES TEND TO GRAB THAT, AND THEN WE CAN GO OUT AND APPROACH THOSE BUSINESSES OR RESTAURANTS. THERE'S TREMENDOUS CAPABILITIES IN THIS THING. AND THE REASON NOBODY HAS IT IS THAT IF YOU'RE A COMPANY OF ANY SIZE, IT COSTS A FORTUNE. OKAY? TO BUY THIS. SO WE WENT IN, YOU KNOW, WITH THE SMALL BUSINESS AND YOU KNOW, ARGUMENT ABOUT YOU KNOW, MAKING AN EXCEPTION ON SOME OF THEIR PRICING SO THAT WE COULD ACTUALLY HELP THEM DEPLOY IT OUT THERE IN THE MARKETPLACE AND SHOW PEOPLE WHAT IT'S GOT. SO WE NEGOTIATE A PRETTY GOOD DEAL. RIGHT WELL, I THINK THAT'S AMAZING, TO BE HONEST WITH YOU. I THINK REALLY VALUABLE, IF WE COULD FIGURE. I MEAN, AS FAR AS TRYING TO FIGURE OUT WHAT WE DO WANT, RIGHT? TARGETING [00:50:06] YOU KNOW, SEPARATE FROM LEASING, FOR EXAMPLE, I MEAN, YOU COULD FLOW THAT THROUGH THE HARBOR DEPARTMENT. WE'D BE HAPPY TO PROVIDE THOSE NUMBERS. SO AND PLAYING AROUND WITH SOME DIFFERENT WAYS TO, YOU KNOW, TO BE ABLE TO USE IT. OH, THAT'D BE FANTASTIC. THE ONLY OTHER QUESTION I HAVE IS, ARE THEY ACTUALLY BREWING BEER IN THE WHAT THE DINGHY DELIUS WAS? NO. NO, IT'S JUST THE BREWERIES IN TORRANCE. BUT IT'S A MIGHTY CIDER [LAUGHTER] I WAS THINKING, WOW, HOW ARE THEY DOING THAT? [LAUGHTER] ALL RIGHT, THANK YOU. SO, I MEAN, IF YOU REMEMBER 10 OR 12 YEARS AGO DOWN INTERNATIONAL BOARDWALK, IT WAS QUITE A DIFFERENT TENANT MIX DOWN THERE. I MEAN, WE ARE WAY BETTER NOW THAN WE WERE WHEN WE FIRST STARTED OUR JOKE WAS IN THE MANAGEMENT, ESPECIALLY ME. YOU KNOW? PAT, THE PROPERTY MANAGER, SHE WENT OUT AND GOT SOME OF THOSE TEMPORARY STICK ON TATTOOS AND SHE SAYS, HEY, WHEN YOU GO DOWN TO THE INTERNATIONAL BOARDWALK, YOU NEED TO STICK SOME OF THOSE ON SO YOU WON'T SCARE PEOPLE. I MEAN, I PROBABLY LOOK LIKE I WORK FOR THE FBI OR SOMETHING LIKE THAT SO. YOU KNOW, PEOPLE ARE LIKE, SHUT THEIR, THEIR WINDOWS WHEN I WOULD WALK BY. SO SHE WANTED ME TO FIT IN A LITTLE BIT BETTER [LAUGHTER]. ANYWAY, IT'S DIFFERENT NOW. YEAH, DEFINITELY. JUST TO PIGGYBACK ON WHAT TOM SAID, IT WOULD BE INTERESTING TO LOOK AT OTHER AREAS, RIGHT? TO TRY TO PULL THOSE BUSINESSES THAT HAVE A LIKE THE AM DRAW OR THE MONDAY THROUGH THURSDAY COMPONENT AS POTENTIALS. THAT WOULD BE IT SOUNDS LIKE THERE'S DATA MAYBE THAT COULD BE INTERESTING THERE. YEAH AND IT'LL WORK UP ON ARTESIA. IT'LL WORK OVER THERE AT YOU KNOW, AT THE FORMER NORDSTROM'S, YOU KNOW? I MEAN, IT'LL WORK ANYWHERE. THANK YOU. YEAH. LEE? I HAVE NOTHING. LISA? NO I'M GOOD. GOOD WELL, THANK YOU VERY MUCH FOR THE ENLIGHTENING PRESENTATION. OKAY, WELL, THANK YOU VERY MUCH FOR THE INVITE. HAPPY TO COME BACK AND BRIEF YOU WHEN ANYTHING NEW AND INTERESTING IS HAPPENING THAT YOU WANT TO KNOW ABOUT. WELL, KEEP US POSTED ON THE FUN FACTORY, BECAUSE THAT'S 30,000FT². I'M EXCITED ABOUT THAT. I MEAN, I KNOW WE WILL LEASE THAT. I KNOW SOME PEOPLE AREN'T SO SURE OUT THERE IN THE PRIVATE SECTOR, BUT WE WILL GET THAT SPACE LEASED, THE RIGHT PEOPLE WILL COME ALONG, AND IT'S GOING TO BE A HOME RUN FOR, YOU KNOW, INTERNATIONAL BOARDWALK. QUALITY SEAFOOD AND I'LL JUST LEAVE YOU WITH THIS. FOR EXAMPLE, DURING COVID, WHEN THERE WAS SO MUCH LOCKDOWN GOING ON, QUALITY SEAFOOD, BECAUSE OF THE WAY THEIR LAYOUT IS, IS MORE OUTDOORSY. AND SO PEOPLE COULD GO THERE DURING THE LOCKDOWN AND BE ABLE TO EAT. AND THE SHEER NUMBERS OF PEOPLE, THEIR GROSS SALES ARE MORE THAN ALL OF OUR OTHER TENANTS COME BY DOWN THERE. SO THEY WERE INSTRUMENTAL IN BEING ABLE TO KEEP GET PEOPLE DOWN THERE AND KEEP PEOPLE DOWN THERE. AND THAT'S THE SORT OF TENANTS THAT WE LIKE TO, YOU KNOW, TO BE ABLE TO PULL IN IS ONES THAT WILL COMPLEMENT EACH OTHER AND NOT CANNIBALIZE EACH OTHER FROM THE PERSPECTIVE OF WHAT ARE THEY SELLING OR IS EVERYBODY THERE IN THE SAME TWO HOUR TIME SPAN ON A FRIDAY, YOU KNOW, AS OPPOSED TO, YOU KNOW, 6 OR 8 HOURS. GREAT. SO. THANKS AGAIN. THAT'S ALL I GOT DO WE NEED TO RECEIVE AND FILE THIS? YEAH, I WOULD DO THAT. DO I HAVE A MOTION TO RECEIVE AND FILE? I'LL MAKE A MOTION TO RECEIVE AND FILE. SECOND. ALL IN FAVOR? AYE. OPPOSED? MOTION CARRIES. OKAY. PUBLIC COMMENT YOU SHOULD ALL RIGHT. IS THERE ANY ZOOM ECOMMENTS? NO ECOMMENTS IN ZOOM ALL RIGHT. ALL RIGHT MOVING ON TO L.2 DISCUSSION AND POSSIBLE ACTION TO FILL BY APPOINTMENT THE VARIOUS HARBOR COMMISSION SUBCOMMITTEES TO BE VACATED BY CHAIR VICKI CALLAHAN UPON THE END OF HER TERM. IT'S ALL ABOUT ME [LAUGHTER]. AND THEN THE SAD MUSIC COMES IN [LAUGHTER]. NOT YET I HAVE ONE MORE MONTH PLEASE? YEAH I HATE TO BE TALKING ABOUT THIS, BUT AND SHE'S ON A FEW OF OUR SUBCOMMITTEES THAT ARE ONGOING. AND WE NEED TO TAKE A VOTE TO REPLACE HER ON THOSE. ONCE SHE LIGHTS ME UP, THERE WE GO. THERE WE GO IF YOU DON'T WANT TO OVERCOMMIT YOURSELF, HERE'S A LIST OF OUR CURRENT SUBCOMMITTEES AND WHO'S ON THEM. [00:55:03] YOU'LL SEE THAT WE NEED TO REPLACE VICKI CALLAHAN ON THE WATERFRONT EDUCATION. THAT'S THE JOE'S CRAB SHACK SITE. THAT IS A LITTLE WAYS OFF. WE'RE NEGOTIATING WITH MARINE MAMMAL CARE CENTER, AN OPPORTUNITY FOR THEM TO TAKE UP TO 18 MONTHS TO RAISE CAPITAL FOR THAT PROJECT. SO THERE'S A CHANCE WE'RE NOT EVEN REALLY TALKING ABOUT DEVELOPMENT OPPORTUNITY OUT THERE FOR AT LEAST 18 MONTHS. YEAH. THE SEA BASS WHAT WE DO NEED TO REPLACE THAT ONE. THE SEA BASS PROGRAM THAT WAS ENDING, THAT WAS UNDER CONSTRUCTION. I WOULD JUST ADVISE WE SHOULD JUST LET THAT ONE JUST BUT THEN THE BOAT LAUNCH, WHICH IS REALLY RAMPING UP, WE MET TODAY AS A SUBCOMMITTEE. WE PLAN TO MEET THE END OF AUGUST FOR A SECOND ONE, WHICH VICKY WILL BE AROUND FOR THAT ONE AS WELL. THE BIG DECISION IS WHO DO YOU REPLACE HER WITH? RIGHT NOW YOU MADE THE DECISION THAT COMMISSIONER BAUER WOULD BE KIND OF AN ALTERNATE, JUST IN CASE SOMEBODY WAS SICK OR OUT OF TOWN, OR ONE OF THOSE ISSUES. HE COULD SLIDE BACK OVER, BUT IT'S ENTIRELY UP TO THIS GROUP. OKAY, SO LET'S ASK MR. BAUER OR COMMISSIONER BAUER, ARE YOU INTERESTED? BECAUSE IT'S GOING TO BE TIME CONSUMING. SO JUST KNOW THAT. OKAY I'D BE WILLING TO DO IT. OKAY. IS THERE A MOTION? I SHOULDN'T BE INVOLVED IN THIS. I MOVE THAT I SLIDE MYSELF OVER. ARE WE GOING TO NEED AN ALTERNATE, THOUGH ANOTHER ALTERNATE? WELL, LET'S JUST GET YOU PUSHED IN FIRST. BECAUSE WE KNEW SHE WAS OKAY. ALL RIGHT, SO I MOVE THAT I AM NOW AN OFFICIAL MEMBER RATHER THAN THE ALTERNATE. I'LL SECOND. WOW THANK YOU. IS THERE ANY DISCUSSION? ALL IN FAVOR? AYE. OPPOSED? PERFECT. NOW WE NEED AN ALTERNATE JUST IN CASE. THAT'S FINE OH, I'LL VOLUNTEER OKAY. IS THERE A SECOND? I'LL SECOND DO WE NEED A MOTION? OR WAS OKAY OH I'M SORRY, I THOUGHT. I MOTION TO NOMINATE LEE OKAY, WE HAVE A MOTION. SECOND. SECOND. ALL IN FAVOR? AYE. OPPOSED? PERFECT. NOW WE'VE FILLED ME, AND WE'VE REPLACED THE ALTERNATE. THE ONLY ONE LEFT WOULD BE THE WATERFRONT EDUCATION. AND WE HAVE COMMISSIONER ABELMAN, COMMISSIONER BAUER, WE NEED TO REPLACE ME. WHO IS INTERESTED IN THE WATERFRONT EDUCATION? LISA, ARE YOU INTERESTED? WELL, I'M YEAH YEAH. OKAY. I HAVE HALF OF ONE ACTUALLY. HALF OF ONE [LAUGHTER]. IS THAT A MOTION? I'LL MAKE A MOTION TO APPOINT MYSELF TO THE WATERFRONT EDUCATION [LAUGHTER] IS THERE A SECOND? I'LL SECOND OKAY ALL IN FAVOR? AYE. ALL RIGHT, SO WE HAVE FILLED MY POSITIONS. WE DID IT. NOW I HAVE A QUESTION ON THE BOAT LAUNCH. I UNDERSTAND THERE'S GOING TO BE ANOTHER MEETING THIS MONTH. WILL I BE DOING THAT ONE, OR WILL TOM STEP IN? WELL, WE DID JUST OFFICIALLY CHANGE IT. SO JUST BECAUSE YOU'RE STILL AROUND DOESN'T MEAN THAT COMMISSIONER BAUER IS NOW THE REPRESENTATIVE. OKAY. SO I WOULD SAY TOM IS NOW YOUR REPLACEMENT. OKAY. SO YOU WILL BE THE PERSON STEPPING IN AT THE NEXT MEETING. AND DO WE HAVE A DATE FOR THAT? SPEAKERS] THAT'S A GOOD POINT. THAT'S A GOOD POINT I THINK THAT THE INTENT WAS OF THE MOTION WAS WHEN SHE LEAVES. RIGHT. NOT AT THIS MOMENT. I AGREE EFFECTIVE NOW OR? WELL, MY CONCERN IS THAT I'M GOING TO ABSORB ALL OF THIS INFORMATION AT THESE MEETINGS, AND I'M GOING TO TAKE IT WITH ME WHEN I LEAVE. AND TOM WILL HAVE TO COME UP TO SPEED, WHERE SINCE THERE'S ONLY BEEN ONE WHICH WAS VERY PRODUCTIVE, BUT WE'RE GOING TO HAVE A SECOND ONE THAT'S GOING TO BE EVEN MORE INTENSE WITH THE DIRECTORS I MOVE THAT TOM REPLACE VICKI, IMMEDIATELY YEAH. I WILL SECOND THAT. OKAY. OKAY. ANY DISCUSSION? ALL IN FAVOR? AYE. OPPOSED? OKAY, SO TOM IS NOW OFFICIALLY. IT'S VERY CLEAR [LAUGHTER]. OKAY. WELL THAT'S GOOD. WELL, YEAH. SORRY CAN I ASK A FOLLOW UP QUESTION? IS SO I AGREE WITH THIS. AND I THOUGHT IT MADE SENSE TO BRING YOU INTO THIS, BUT I THOUGHT THE BOAT RAMP DISCUSSION WAS GOING TO START SOONER. RIGHT ME TOO. YOU KNOW, THERE WAS I THOUGHT STUFF [01:00:02] IS THERE ANY WAY WE CAN TELL TOM ABOUT WHAT HAPPENED TODAY AND GIVE HIM SOME OF THIS BACKGROUND STUFF WITHOUT VIOLATING THE BROWN ACT? WELL, I WOULD RELY ON STAFF TO DO THAT FOR YOU. YEAH. THAT WAY HE HAS TIME TO READ IT AND GET UP TO SPEED BEFORE THE NEXT. SO WHAT WE'LL DO IS WE'LL. YOU KNOW, WE'RE SCHEDULING THAT SECOND MEETING AS WE SPEAK. SO WE'LL SCHEDULE THAT ONE AND THEN WE'LL GET YOU BAUER OKAY. YEAH. THAT SOUNDS GOOD? THAT WAY I'M NOT. YEAH IN FACT, MAYBE WE, YOU AND I CAN MEET IF YOU HAVE TIME. YEAH. OKAY. YEAH THAT WAY I'M NOT HOGGING ALL THE INFORMATION AND TAKING IT AWAY WITH ME. YEAH. OKAY. ALL THAT GOOD INFORMATION. ALL RIGHT, SO I THINK WE'VE DONE THAT ONE. ANY QUESTIONS? ANYBODY HAVE ANY COMMENTS ON L.2? OKAY. PUBLIC COMMENT. PUBLIC COMMENT? YEAH. ANYBODY HAVE ANY COMMENTS? OKAY [M. ITEMS FROM STAFF] I HAVE A LIAISONS REPORT, A COUPLE UPDATES FOR YOU. WE KIND OF JUST GOT INTO THIS, BUT THE BOAT LAUNCH SUBCOMMITTEE MET TODAY. WE DO PLAN ON MEETING AGAIN IN LATE AUGUST. IF EVERYTHING STAYS ON TRACK, WE PLAN TO GO PUBLIC AND DO OUR FIRST COMMUNITY MEETING IN SEPTEMBER. AT SOME POINT, PROBABLY LATE SEPTEMBER. AND WE'LL SEE HOW THAT GOES. THE BREAK WALL REPAIRS. NO NEW UPDATES FROM THE LAST UPDATE I HAD WITH YOU GUYS. AS FAR AS WE KNOW, THEY STILL PLAN TO HAVE SELECTED A VENDOR BY THE END OF AUGUST. HAVEN'T GOT AN UPDATE ON WHETHER OR NOT THEY'RE ON TRACK WITH THAT. BUT MAYBE NO NEWS IS GOOD NEWS. I'M NOT SURE WE'LL REACH OUT AND MAYBE GET YOU GUYS AN UPDATE ON THAT ONE. WE TALKED ABOUT THIS A LITTLE BIT ALREADY, BUT THE SEA BASS GROW-OUT PENS. WE ALREADY GOT COASTAL COMMISSION APPROVAL. WE'VE GOT ALL OUR CITY PERMITS. IT'S UNDER CONSTRUCTION. THE PEN ITSELF IS FABRICATED OFF SITE. WE'RE REALLY WAITING ON A COUPLE OF DELIVERIES OF MATERIALS WHICH WILL AFFIX THE PEN TO THE DOCKS. WE'RE AT THIS POINT PROBABLY A MONTH AND A HALF OUT FROM FROM IT BEING INSTALLED. IT COULD GO A LITTLE QUICKER. IT'S REALLY JUST THIS DELIVERY OF MATERIALS THAT WE'RE WAITING FOR. IT'S FROM WHAT I UNDERSTAND. LET'S SEE. NEW LEASES. WE DID FOUR NEW LEASES AT THE LAST CITY COUNCIL MEETING. THE DINGY DELI VACANT SPACE WAS OCCUPIED NOW BY SCHOLB BREWERY FROM TORRANCE. DEEP AND LIVE IT'S A MUSIC VENUE. IT'S GOING INTO THE OLD BRIXTON SPACE IN THE LANDING, THE BASEMENT LEVEL OF THE ROBERT RESNICK LANDING. AND WE GOT TWO NEW LEASES GOING IN PIER PLAZA AS WELL. I HAVE. CAN YOU LIGHT ME UP? I HAVE A COUPLE PICTURES OF SOME RECENT ON GOINGS IN THE HARBOR. THIS IS OVER BY THE HAND LAUNCH. THIS WAS A PROJECT BY ONE OF OUR GIRL SCOUT TROOPS. I THINK IT WAS LIKE A MERIT BADGE OR AN ADVANCEMENT LEVEL PROJECT. BUT IT'S ESSENTIALLY AN AREA TO KEEP THE HARBOR CLEAN, LIKE A TRASH PICKUP AREA THAT THEY INSTALLED FOR US. WHICH IS PRETTY COOL. NOT TO INTERRUPT, BUT THAT ALSO GOT ROBBED OR SOMETHING? THE THEY TOOK THE BUCKETS. I MEAN, THERE WAS AN ARTICLE IN THE PAPER ON THAT. THAT SOMEBODY HAD TAKEN ALL THE BUCKETS. THE BUCKETS, ALL THE BUCKET AND THE GRABBERS I BELIEVE IT [LAUGHTER]. SO NOW IT'S JUST EMPTY BUT I DON'T KNOW HOW OFTEN THEY PLAN TO KEEP IT UP. IT WAS KIND OF A FEAR OF MINE THAT ONCE THEY INSTALLED IT, IT WOULD KIND OF GET VANDALIZED OVER TIME. BUT IT WAS A COOL, HERE IS OUR NEW DIRECTORY SIGN INSTALLED. ACTIVATED RIGHT NOW IT'S GOT THE ABILITY TO BE A TOUCH FACE INTERFACE. WE HAVEN'T TURNED THAT ON YET. IT'S REALLY JUST INFORMATIONAL RIGHT NOW AT THIS POINT. BUT WE'VE GOT ALL OF OUR BUSINESSES DOWN. THEY'RE ALL ACTIVE. WE'VE EVEN GOT SCHOLB ON THERE ALREADY, SO EVEN THE NEWEST ONES ARE ON THERE. JUST SHOWS YOU HOW QUICK WE CAN ADJUST THE DIRECTORY SIGNS NOW AS NEW LEASES COME IN, WHICH IS THE WHOLE POINT OF THIS WHOLE THING. HERE'S ANOTHER PICTURE TOO. I REALLY LIKE THE WRAP THAT THEY INSTALLED. YEAH. THE GRAPHIC IS REALLY COOL AND IT'S BRIGHT. AND THEN, YOU KNOW, WE'VE BEEN TALKING ABOUT BIKE RACKS FOR QUITE SOME TIME. WE'VE THIS DEPARTMENT HAS PURCHASED QUITE A FEW BIKE RACKS ON MOLE D RECENTLY. WE PURCHASED THESE ONES ON THE CANTINA. WE INSTALLED 6 OR 7 OVER BY THE CALIFORNIA SURF CLUB RECENTLY. HERE'S A COUPLE OTHERS THAT HAVE HAD BEEN INSTALLED, BUT WE PURCHASED THESE. AND THEN I JUST WANTED TO CAPTURE A PICTURE OF OUR NEW ENTRANCE, WHICH I THINK LOOKS GREAT. BACK TO BIKE RACKS, THOUGH WE DO PLAN TO PUT A COUPLE MORE IN FRONT OF THE R10 AREA. WE'RE THINKING ABOUT A FEW UP ABOVE PADDLE HOUSE, AND I KNOW THERE'S THE ISSUE OF PEOPLE DON'T WANT TO LEAVE THEIR BIKES WHERE THEY CAN'T [01:05:06] SEE THEM, BUT TECHNICALLY THE BIKES AREN'T ALLOWED DOWN BELOW. IT MAKES SENSE TO ME, BUT NEAR THE BIKE RACK TO PUT THEM RIGHT THERE AND THEN. I'M ACTUALLY WORKING WITH COMMUNITY SERVICES RIGHT NOW, AND I HAVE A BUDGET FOR IT TO LOCATE SOME BIKE RACKS ON MOONSTONE PARK. IT'S A LITTLE COMPLICATED BECAUSE IT'S A LOT OF SOFTSCAPE AND THE HARDSCAPE AREA WHERE IT WOULD MAKE SENSE TO PUT IT IS ACTUALLY DRIVE AISLES. SO WE GOT TO GET A LITTLE CREATIVE WITH HOW WE DO THIS. WE MIGHT HAVE TO POUR SOME CONCRETE TO MAKE IT HAPPEN. BUT WE'LL FIGURE IT OUT. I'VE GOT THE BUDGET FOR IT. NEXT MEETING IS SCHEDULED FOR SEPTEMBER 8TH. IT WILL BE VICKI'S GOING OUT PARTY. WE'VE GOT. WE'VE RESCHEDULED THE POLICE DEPARTMENT AND FIRE DEPARTMENT TO DO A REPORT FOR YOU GUYS. I KNOW YOU GUYS ARE WAITING ON THAT ONE. AND THAT CONCLUDES MY LIAISON REPORT FOR YOU TONIGHT. I'M HERE FOR ANY QUESTIONS OR ANY TOPICS THAT MAYBE I DIDN'T HIT. WE'RE STILL HAVING THE AGENDA SETTING MEETING THE THIRD MONDAY? THAT'S ON RIGHT THERE? MONDAY? FOR SEPTEMBER? SORRY BEAR WITH ME I'M CHECKING MY CALENDAR. YEAH SEPTEMBER 15TH AT 2:30. OKAY. I'M SORRY I MISSED THE FIRST PART OF THAT. IT'S THE AGENDA SETTING MEETING, AND IT'S COMMISSIONER ABELMAN AND MYSELF AND DAVE AND GREG. SOMETIMES ME. SOMETIMES GREG [LAUGHTER] USUALLY DAVE. YEAH. DAVE AND I HAVE A DATE [LAUGHTER]. SO, YEAH, WE SET THE ANYTHING THAT COMES AND WE DISCUSS WHAT'S GOING TO BE ON THE NEXT AGENDA. BEAUTIFUL. YEAH SO, ALL RIGHT, THAT WAS MY ONLY QUESTION. ANY ITEMS TO STAFF FROM? I HAVE. I HAVE A QUESTION. ANY UPDATE ON THE STALL PROJECT IN YACHT CLUB WAY? NO, IT'S STILL IN LITIGATION. I CAN GET AN OFFICIAL UPDATE FROM OUR ATTORNEY'S OFFICE AND SEND THAT OUT TO YOU GUYS. BUT LITIGATION JUST TAKES TIME. LIKE I SAID, IT'S BEEN LIKE THAT SEEMS LIKE FOREVER NOW. YEAH. ANYBODY ELSE? ANY OTHERS? IS LUKE STILL HEADING UP EV CHARGERS INSTALLATION KIND OF STUFF ARE WE STILL FOCUSED ON? IT'S STILL AN ONGOING PROJECT. WHAT WE'VE LEARNED, AS YOU KNOW, IS THAT EDISON HAD THAT PROGRAM TO INSTALL A LOT OF CHARGERS. THEY DID A LOT OF FOOTWORK TO DETERMINE THE LOW HANGING FRUIT LOCATIONS WITHIN THE WATERFRONT TO INSTALL THESE CHARGERS. WE LOCATED MAYBE 3 OR 4 SPOTS THAT WE THOUGHT WERE IDEAL THAT EDISON ALSO THOUGHT WERE IDEAL. BUT THEIR EXISTING INFRASTRUCTURE NETWORK CAN'T SUPPORT THE PAY STATIONS OR THE CHARGERS RIGHT NOW, SO IT'S THEIR OWN INFRASTRUCTURE THAT IS PROHIBITING US RIGHT NOW, EVEN THOUGH THEY'RE GOOD LOCATIONS. SO IT'S THAT GRANT OPPORTUNITY IS ESSENTIALLY HIT A LITTLE BIT OF A DELAY JUST BECAUSE THERE'S NOTHING TO DO AT THIS POINT. YEAH. UNTIL THEIR INFRASTRUCTURE IMPROVES. ESSENTIALLY THERE'S NOT ENOUGH POWER TO SUPPORT THE CHARGERS. OKAY. ROGER, DO YOU HAVE ANYTHING FOR STAFF? YEAH, A COUPLE OF THINGS. A COUPLE OF QUESTIONS. SEASIDE LAGOON WAS CLOSED FOR A WHILE, I GUESS A BAD PUMP. YEAH. IS THERE A BAND-AID ON IT OR ARE WE? IT TOOK ABOUT A WEEK, BUT THEY GOT IT BACK UP AND RUNNING. COOL OKAY. ANY UPDATE ON THE REDESIGN OF SEASIDE LAGOON? THE LONG TERM PROGRESS? STILL IN ENTITLEMENT PHASE. SO THEY'RE PREPARING THEIR OFFICIAL SUBMITTAL PACKAGE TO THE PLANNING COMMISSION TO START THE ENTITLEMENT PROCESS, WHICH WILL INCLUDE A STOP HERE. THIS MIGHT BE A QUESTION FOR HARBOR PATROL NEXT MONTH, BUT DID THE TSUNAMI DO ANYTHING TO US? ANY LESSONS LEARNED FROM IT? NO WE WERE CAUTIOUS. WE DID THE BOATER ALERT HARBOR PATROL ACTUALLY KIND OF WENT OUT AND TALKED TO A LOT OF PEOPLE. THEY HELPED FASTEN DOWN SOME BOATS WHERE THEY COULD. BUT ULTIMATELY, WE ONLY SAW 1 TO 2 FOOT KIND OF SURGES. AT ABOUT 1:00 IN THE MORNING THAT NIGHT. NOTHING THAT REALLY CAUSED ANY ISSUES AT ALL. SO WE WERE PROBABLY OVERLY CAUTIOUS, BUT THAT'S A GOOD THING. YEAH, I WAS ACTUALLY OUT THE NEXT MORNING, AND CURRENTS WERE REAL WEIRD. AND I HEARD THAT, LIKE, YOU KNOW, STAND UP PADDLE BOARDERS AND STUFF WERE HAVING TROUBLE, YOU KNOW, KEEPING POSITION IN THE HARBOR. THERE WAS ONE GUY AT THE MOUTH OF THE HARBOR THAT WAS, LIKE, IN A FIXED POSITION AND GOING LIKE HELL [LAUGHTER]. THE DIFFERENT BASINS WERE KIND OF, YOU KNOW, DRAINING OUT FUNNY. I GUESS SOME YOU KNOW, PARTS OF THE BAIT DOCK FLOATED UP. SO THERE WAS SOME, YOU KNOW, LARGE DEBRIS AROUND. BUT YEAH, LUCKILY. I THINK WE GOT LUCKY. NOTHING MAJOR. YEAH. LET'S SEE. WE MENTIONED THE PUMPS ON YACHT CLUB WAY. [01:10:02] ANY OTHER CONSTRUCTION OR PUBLIC WORKS PROJECTS GOING ON IN THE AREA? BOY, I MEAN, IN THE INTERNATIONAL BOARDWALK KIND OF PIER PLAZA AREA. THERE'S ALWAYS SOMETHING GOING ON. RIGHT NOW, THEY'RE ACTUALLY MAKING ADA IMPROVEMENTS TO SOME OF THE RESTROOMS ON INTERNATIONAL BOARDWALK. A LOT OF THEM GOT A FACELIFT A YEAR AGO, AND NOW THEY'RE ACTUALLY MAKING ADA IMPROVEMENTS TO IT. SO YOU MIGHT SEE THE NUMBER OF STALLS SHRINK FROM LIKE 6 TO 5 JUST TO ACCOMMODATE THAT LARGER STALL. YOU MIGHT SEE ONE SINK LOWER IN HEIGHT, THINGS LIKE THAT. AND THAT'S HAPPENING AS WE SPEAK, ACTUALLY. COOL YEAH, I REMEMBER THAT BEING DISCUSSED AND SOME OF THE SMALLER ONES, WE WEREN'T SURE WE COULD DO IT SO THAT'S GOOD NEWS. ANY UPDATE ON THE DINGHY DOCK? IT'S. ARE YOU TALKING ABOUT THE COURTESY DOCK OR THE DINGHY DOCK? THE DINGHY DOCK IS THERE. IT ALWAYS HAS BEEN. IT'S KIND OF WHERE THE GONDOLA AREA IS WE'RE GOING TO PUT UP A SIGN THAT ADVERTISES THE FACT THAT IT'S A DINGHY DOCK. FOR ANYBODY THAT'S USUALLY A MOORING. IT'S KIND OF RESERVED WE'RE WAITING FOR ANOTHER LITIGATION CASE WHERE WE HAD TO MOVE A BOAT. WE HAD TO MOVE SOME THINGS AROUND WITHIN BASIN THREE, AND ONE OF THEM IS CAUGHT UP IN LITIGATION IN TERMS OF AN EVICTION NOTICE THAT WE DID. SO UNTIL WE CAN FINISH THOSE MOVEMENTS, THE COURTESY DOCK WON'T BE AVAILABLE YET. I THINK WE'RE GETTING CLOSE SO. THEN THERE'S ANOTHER LONG TERM PROJECT. I'M SORRY TO HIT YOU WITH ALL THIS STUFF. I ALWAYS TRY TO ASK THIS EARLY, AND I FORGOT TO THIS MONTH. REDONDO BEACH MARINA DOCKS IN GENERAL GETTING REPAIRED SOMEDAY. THE BASIN, THREE ONES? YEAH. WE DO HAVE A GRANT THAT'S BEEN OFFICIALLY. WELL, IT'S BEEN VERBALLY AWARDED TO US. WE'RE IN THE PROCESS OF OFFICIALLY SECURING $1.4 MILLION. THE IDEA WHEN WE APPLIED FOR IT WAS THAT WE WOULD COMPLETELY REPLACE NOT ALL 58 SLIPS FOR $1.4 MILLION, BUT AS MANY AS WE COULD. NOW THAT WE'VE GOT THE MONEY IN PLACE, WE DON'T NECESSARILY HAVE TO JUST REPLACE SIX DOCS OR HOWEVER MANY DOCS THAT MONEY STRETCHES FOR. WE CAN ACTUALLY REBUILD SECTIONS AND REPLACE UTILITIES, AND WE CAN SPREAD IT OUT AND JUST DO GENERAL REPAIR WORK FOR $1.400.000, WHICH WILL STRETCH IT A LITTLE FURTHER. BUT WE'RE GETTING CLOSER AND CLOSER TO ACTUALLY SECURING THE MONEY. THERE'S A LOT OF STEPS, AS DAVE IS CAN ATTEST TO. YEAH AND YOU GUYS GAVE ME A LETTER TO TALK TO FISH AND GAME ABOUT USING ANY POSSIBLE DEBRIS WE HAVE TO AUGMENT THE REDONDO ARTIFICIAL REEF. RIGHT. I'VE TALKED TO FISH AND GAME, AND THEY SAY, YEAH, WE HAVE AN ACTIVE LEASE WITH THE COASTAL COMMISSION ON THAT SITE, SO I'M TALKING TO HIM MORE. IT WAS NOT A HELL NO WE'LL SEE WHAT IT TURNS INTO. MAYBE IT'S SOMETHING WE CAN OFFER THE COASTAL COMMISSION AS MITIGATION FOR, YOU KNOW, DOING A LITTLE IMPACT TO THE HARBOR WHEN WE ARE PUT IN A BOAT RAMP OR SOMETHING. IT'S A GREAT IDEA. LAST THING, GENERAL ANNOUNCEMENT. A FRIEND OF MINE WAS AT WEST MARINE TODAY. THEY ARE CLOSING SEPTEMBER 1ST. SO IF ANYONE KNOWS A LEASING AGENT [LAUGHTER]. WE SHOULD FIND A NEW HOME FOR WEST MARINE OR SOME OTHER. YEAH. TO COMMISSIONER CARLSON'S CREDIT, HE AND I HAVE BEEN TAG TEAM IN THEIR REAL ESTATE DEPARTMENT TO SEE IF THEY WOULD BE INTERESTED IN THE GOLD'S GYM SITE. AND THAT WOULD BE FABULOUS YEAH. IT'S A PERFECT SPOT. WE HAVEN'T OFFICIALLY HAD REAL DISCUSSIONS YET OTHER THAN OH, LET US GET YOU IN TOUCH WITH THIS PERSON. THEY'RE ACTUALLY IN THIS. YOU KNOW, WE'RE GETTING KIND OF KICKED AROUND RIGHT NOW, BUT. YEAH AND I HAD HEARD THAT THE WEST MARINE WAS LOSING THEIR LEASE, BUT I THOUGHT IT WAS SOMETIME NEXT YEAR. AND TO HEAR LIKE IT'S TWO WEEKS FROM NOW, THAT WAS KIND OF A KICK IN THE STOMACH. SO THAT'S ALL I'VE GOT THANKS. YES GOOD NEWS ON ALL THOSE BIKE RACKS THANK YOU. YES. AND YEAH, I FIGURED THE MOONSHINE MIGHT EVEN NEED A OLD SCHOOL NOT THE NICE INSTALLATIONS, BUT GOOD TO HEAR THAT YOU'RE. YEAH. GOING NORTH. AND THEN YEAH, I'M GLAD TO HEAR POLICE AND HARBOR PATROL FIRE DEPARTMENT HERE NEXT MONTH, BECAUSE I WAS LOOKING. I KNOW IT HAD BEEN A WHILE. I LOOKED THROUGH ALL OF OUR RECORDS. IT WAS LAST AUGUST. IT WAS THE LAST TIME WE GOT DATA. WOW A YEAR FROM NOW. YEAH SO. WOW. I DON'T KNOW WHAT ALL THE INCONSISTENCY, BUT. YEAH. HOPEFULLY THAT CADENCE IS ON THE QUARTERLY UPDATE IS BACK. WE'LL GET MORE OF A SCHEDULE GOING YEAH. YEAH THANKS. AND IF EVERYBODY DIDN'T GET IT. THERE'S A RIPTIDE WARNING THROUGH WEDNESDAY FOR THIS AREA, SO DON'T LET ANYBODY GO IN THE WATER. AND WITH THAT, IF NO ONE HAS ANY OTHER REFERRALS? [N. COMMISSION MEMBER ITEMS AND FUTURE COMMISSION AGENDA TOPICS] I HAVE ONE ANNOUNCEMENT. THERE ARE A BUNCH OF OUTRIGGER CANOES THAT ARE PARTICIPATING IN THE INTERNATIONAL DISTANCE CHAMPIONSHIPS, [01:15:05] AND WE HAVE A COUPLE REDONDO UNION HIGH SCHOOLERS ON UP THROUGH FOLKS IN THEIR 70S THAT ARE COMPETING FROM REDONDO. SO I THINK THEY GO IN LIKE A WEEK IN A WEEK, I THINK IS WHEN THE COMPETITION IS SO DOWN IN BRAZIL. COOL. YEAH. WOW I'LL GIVE YOU THAT MOTION TO ENTERTAIN [LAUGHTER]. I'LL SECOND IT OPPOSED? SEE YOU NEXT MONTH. WHAT ABOUT A MOTION THAT VICKY STAYS? * This transcript was compiled from uncorrected Closed Captioning.