Cities Index.
Att #2 HB Brand and Systems Audit and Report

City Council/Public Financing Authority
April 21, 2026

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Att #2 HB Brand and Systems Audit and Report
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April 21, 2026
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HUNTINGTON BEACH BRAND & SYSTEMS
AUDIT & REPORT Draft V4. | Presented for: Travis Hopkins, City Manager, Huntington Beach, CA

An Introduction to Wolffhaus.

Wolffhaus is not a traditional agency, and this report was not built through a conventional

compliance-only

lens.

Our

work

comes

from

operating

daily

at

the

intersection

of

brand

strategy,

creative

direction,

media,

business

development,

public

perception,

product

development,

and

systems

building

for

major

brands,

public-facing

organizations,

celebrities

and

public

figures.

Our approach is not conventional, and the economics of a place like Huntington Beach are

not

conventional.

In

a

tourism

city

and

identity-driven

world,

value

is

not

created

only

through

contracts

and

line

items.

It

is

also

created

through

perception,

visibility,

cultural

relevance,

desirability,

and

third-party

amplification.

Those

factors

influence

tourism

demand,

visitor

spending,

sponsorship

pricing,

media

value,

business

attraction,

and

overall

brand

strength.

When

they

are

ignored

simply

because

they

are

harder

to

quantify,

cities

can

miss

major

economic

opportunities

hiding

in

plain

sight.

While traditional audits often focus on what is formally documented, financially reported, or

procedurally

required,

our

work

is

built

around

identifying

the

gaps

between

what

an

organization

has,

what

it

communicates,

what

it

controls,

and

what

it

fails

to

capture.

We

are

brought

into

complex

environments

to

diagnose

overlooked

problems,

connect

disconnected

issues,

and

find

opportunities

that

others

miss.

We look for structural weaknesses, hidden inefficiencies, underused assets, outdated systems,

fragmented

ownership,

missed

revenue,

and

reputational

blind

spots

—

then

work

backward

to

identify

what

should

and

can

be

corrected,

built,

modernized,

or

brought

under

stronger

control.

Wolffhaus is a hybrid agency with capabilities that extend beyond any single traditional discipline.

We

do

not

operate

like

a

narrow

agency

confined

to

one

category.

We

work

across

creative

direction,

branding,

communications,

media,

manufacturing,

experiential,

strategy,

and

operational

problem-solving.

That

cross-functional

experience

allows

us

to

evaluate

situations

more

holistically

and

identify

patterns

that

may

be

invisible

when

viewed

through

a

single

departmental

or

technical

lens.

This report reflects that perspective. It is not simply a review of isolated line items or contracts.

It

is

a

broader

examination

of

how

value

is

created,

protected,

lost,

and

left

uncaptured

across

the

City’s

brand,

assets,

partnerships,

systems,

and

public-facing

infrastructure.

2 Huntington Beach Is Operating Without Systems to Protect or Capture the

Value

of

One

of

the

Most

Recognizable

Coastal

Brands

in

the

World

Huntington Beach is not suffering from a revenue problem. It is suffering from a systems problem.

Over the past several weeks, this detailed audit was conducted examining the City’s:
● Licensing agreements ● Branding and IP controls ● Outsourced marketing structures ● Revenue-sharing models ● Contract oversight ● Reporting and audit enforcement processes ● City owned assets & IP tied to brand value This report reveals a consistent pattern:

The City has repeatedly undervalued its most powerful assets —its brand, its intellectual property,

its

physical

locations,

and

its

leverage.

Across multiple departments and agreements, the City:
• Accepts below-market royalty rates
•

Locks

into

long-term

concession

structures

with

weak

performance

triggers

•

Relies

on

self-reported

revenue

without

mandatory

deep

auditing

cycles

•

Failed

to

modernize

expired

intellectual

property

protections

•

Outsources

high-margin

revenue

channels

This report identifies:
• Immediate revenue recovery opportunities
•

Mid-term

contract

restructuring

pathways

•

Long-term

institutional

infrastructure

improvements

If properly implemented, these corrections could conservatively recover and generate:
$2M–$5M+ annually across corrected systems
The gap between asset value and revenue capture is substantial. This report exists to highlight that

gap.

3 Huntington Beach possesses an asset most cities will never have: a globally recognized coastal brand.

Rooted

in

decades

of

surf

heritage,

beach

culture,

recreation,

and

the

classic

Southern

California

lifestyle,

this

identity

has

shaped

perceptions

in

media,

tourism,

and

popular

culture

for

generations.

The

California

Dream.

This identity carries real economic power.

Many residents may not fully recognize the true economic value of this identity . A strong city brand

is

a

form

of

intellectual

property:

it

influences

how

people

view

the

destination,

drives

visitor

decisions,

supports

local

commerce,

generates

tax

revenue,

creates

employment,

and

contributes

to

overall

community

prosperity—all

without

requiring

new

taxes

or

major

infrastructure

projects.

Cities with strong global identities routinely convert that recognition into tourism revenue, media exposure,

cultural

influence,

and

long-term

economic

development.

When

managed

strategically,

a

city’s

brand

functions

much

like

intellectual

property

—

an

asset

capable

of

generating

sustained

public

value.

Yet despite possessing one of the most recognizable coastal identities in the world, Huntington Beach

currently

operates

without

a

coordinated

system

designed

to

manage,

protect,

or

monetize

that

asset.

Instead, the economic value associated with the Huntington Beach identity is dispersed across fragmented

initiatives,

outside

organizations,

private

operators,

and

media

platforms

that

capture

portions

of

the

value

without

a

unified

strategy

that

benefits

the

city

itself.

Since Covid, Huntington Beach has received growing national and regional media attention centered

on

political

debates

and

divisions,

rather

than

the

surf

culture,

suburban

beach

lifestyle,

and

community

traditions/values

that

have

long

defined

its

worldwide

appeal

as

Surf

City

USA.

While no city can dictate every story written about it, when external narratives become the dominant

lens

through

which

a

place

is

viewed,

the

deeper

qualities

that

residents

and

visitors

cherish

can

become

less

visible.

Over time, this kind of shift in public perception can carry real implications for the community's image,

tourism,

local

pride,

and

overall

sense

of

unity.

Reputation affects tourism behavior, media partnerships, event attraction, investment decisions, and

civic

pride.

When

a

city’s

narrative

drifts

away

from

the

qualities

that

created

its

global

appeal,

the

resulting

damage

is

not

merely

reputational

—

it

becomes

economic.

The purpose of this audit is to examine the structural systems behind Huntington Beach’s brand, its

IP

and

assets,

and

identify

where

value

is

currently

being

lost.

4 The findings that follow document a series of gaps in how the city manages media, events, cultural

programming,

communications

infrastructure,

and

brand

stewardship.

Taken together, these gaps represent a fundamental issue: Huntington Beach possesses extraordinary

brand

power,

but

it

does

not

currently

operate

with

the

systems

required

to

protect

that

power

or

convert

it

into

sustained

economic

value

for

the

community.

TABLE OF CONTENTS

1. Core Audit Concerns

2. Immediate Corrective Opportunities

3. Core Diagnosis

4. Core Recommendations

5. Audit Methodology

6. Core Issue: Brand & Brand Voice

7. Core Issue: Merchandising & Revenue Loss

8. Missed Opportunities & Revenue: Film Commission

9. Mismanaged & Underutilized Asset: Art Center

10. Undervalued: Fourth of July Celebration

11. Overburdened & Reactive

12. Missed Opportunities – Civic Pathways

5 1. CORE CONCERNS
Huntington Beach is currently operating under increasing fiscal pressure while simultaneously managing

several

public-facing

assets

that

generate

economic

activity

tied

directly

to

the

city’s

global

identity.

This audit evaluates whether the City is effectively capturing the value generated by those assets

and

whether

existing

systems

are

structured

to

protect

the

City’s

long-term

economic

interests.

The review was driven by five core concerns:

Loss of Intellectual Property (IP) Control and use as a revenue generator.

Huntington

Beach

possesses

one

of

the

most

recognizable

coastal

identities

in

the

world,

yet

the

City

lacks

systems

designed

to

manage

and

monetize

that

identity

as

a

strategic

asset.

Budget Deficit Pressure
The

City

faces

increasing

pressure

to

identify

sustainable

revenue

sources

and

reduce

structural

inefficiencies.

Vendor Dependency Risk
The

Huntington

Beach

brand

relies

heavily

on

outside

vendors,

consultants,

or

organizations,

creating

long-term

dependency,

reduced

internal

control

and

inflated

expenses.

Revenue Leakage
Multiple

revenue-generating

activities

tied

to

tourism,

events,

media,

and

licensing

operate

without

systems

or

oversight

that

ensure

the

City

captures

a

proportional

financial

return.

Fragmented Ownership
Responsibility

for

brand-adjacent

economic

activity

is

dispersed

across

departments,

partnerships,

and

outside

operators

without

centralized

coordination.

2. IMMEDIATE CORRECTIVE OPPORTUNITIES
Huntington Beach already possesses the core asset many cities spend decades trying to build:
a

globally

recognized

identity

with

proven

tourism,

cultural,

and

commercial

value.

The

issue

is

not

whether

value

exists.

The

issue

is

whether

the

City

has

the

systems

required

to

capture,

protect,

and

grow

that

value.

6 This audit identified several opportunities where stronger oversight, modernized agreements, clearer

ownership,

and

better

internal

coordination

could

begin

producing

measurable

returns.

These

opportunities

do

not

depend

on

creating

a

new

identity.

They

depend

on

managing

existing

assets

with

greater

structure,

accountability,

and

intent.

The most immediate opportunities appear in merchandising and licensing, film and media activity,

event

and

sponsorship

monetization,

and

the

reduction

of

inefficiencies

tied

to

fragmented

communications

and

outdated

operating

structures.

Together,

these

areas

represent

the

clearest

starting

points

for

revenue

recovery,

cost

savings,

and

long-term

institutional

improvement.

FINANCIAL SNAPSHOT
Preliminary

analysis

indicates

that

several

areas

tied

to

the

Huntington

Beach

brand

are

severely

underperforming

due

to

outdated

agreements,

fragmented

ownership,

limited

internal

systems,

and

weak

revenue

capture.

Based

on

currently

available

records,

benchmark

comparisons,

and

observed

structural

gaps,

the

following

ranges

reflect

conservative

estimates

of

annual

lost

value,

cost

savings

opportunity,

and

longer-term

recoverable

impact

if

corrected

through

modernized

systems

and

agreements.

Category Estimated Annual Opportunity
Estimated 5-Year Opportunity
Merchandising & Licensing $500,000–$1,000,000+ $3,000,000–$5,000,000+ Film & Media Production $100,000–$300,000+ direct revenue potential $10,000,000+ in related economic activity
Events & Sponsorships $500,000+ $3,000,000+
Media & Communications $250,000–$500,000 Multi-year operational savings capacity gains, earned media Total 5-Year Direct + Indirect Impact Projection:
$18,000,000+

in

combined

direct

revenue

opportunity,

cost

savings,

and

related

economic

7 activity through improved asset management, stronger revenue capture, and system modernization.

These figures are estimates based on the information currently available and are intended to illustrate

the

scale

of

the

opportunity,

not

a

guaranteed

financial

outcome.

More

precise

values

would

require

deeper

financial

review,

contract

analysis,

vendor

reporting

validation,

and

implementation-stage

analysis.

3. CORE DIAGNOSIS
The central issue identified in this audit is not a lack of opportunity.

Huntington Beach possesses valuable economic assets. What it lacks are the systems required

to

manage

them

effectively.

The current structure produces five recurring conditions:

Fragmented Ownership
Economic

drivers

connected

to

the

Huntington

Beach

brand

operate

across

multiple

departments

and

external

partnerships

without

a

unified

management

framework.

Under-Captured Revenue
Tourism

activity,

media

exposure,

events,

sponsorships,

and

licensing

opportunities

generate

economic

value

that

is

not

consistently

converted

into

direct

revenue

for

the

City.

Limited Internal Control Over Public-Facing Brand Representation External

organizations

and

media

outlets

frequently

shape

the

public

perception

surrounding

Huntington

Beach.

The

City

does

not

currently

appear

to

operate

with

the

level

of

media

infrastructure,

production

consistency,

or

distribution

reach

needed

to

regularly

showcase

the

full

breadth

of

community

activity,

assets,

and

positive

developments

taking

place

across

Huntington

Beach.

No Integrated Systems
Huntington

Beach

currently

lacks

an

integrated

framework

that

connects

tourism,

media,

film

production,

events,

licensing,

and

cultural

programming

into

a

coordinated

economic

system.

Overburdened & Short Handed Staff
Huntington

Beach

currently

operates

with

a

severely

limited

number

of

staff

in

the

creative

department.

In

many

organizations,

the

strategic

value

of

creative

leadership,

media

8 infrastructure, and relationship-driven brand development is often underestimated, particularly when

those

functions

are

not

viewed

as

direct

contributors

to

revenue

generation.

This report also makes clear that many City staff are operating under real strain. Too much is being

carried

by

too

few

people,

often

without

the

systems,

staffing

structure,

internal

coordination,

or

specialized

support

required

to

manage

a

city

with

assets

of

this

scale

and

public

visibility.

In

several

areas,

the

City

does

not

simply

appear

overextended.

It

appears

structurally

underbuilt.

Certain

roles

commonly

found

in

modern

cities

—

including

centralized

creative

leadership,

media

support,

content

development,

and

coordinated

brand

and

communications

personnel

—

appear

limited,

fragmented,

or

absent

altogether.

As

a

result,

existing

staff

are

left

carrying

responsibilities

that

extend

well

beyond

what

current

structures

are

designed

to

support.

Any recommendations in this report are intended not to add to that burden, but to reduce it. By improving

revenue

capture,

modernizing

workflows,

and

building

durable

internal

systems,

the

City

can

create

new

capacity

rather

than

continuing

to

overextend

the

teams

already

in

place.

Over

time,

the

funding

generated

through

these

corrections

could

help

support

expanded

staffing,

internship

and

workforce

pipelines,

stronger

creative

and

media

infrastructure,

and

the

tools

needed

to

make

City

operations

more

effective

and

sustainable.

4. CORE RECOMMENDATIONS

The City does not need to create new identity assets. It already possesses them.

What is required is the implementation of systems that allow Huntington Beach to own, manage,

and

benefit

from

the

economic

value

these

assets

produce.

The recommended framework focuses on five priorities:

1. Build Internal Ownership
Establish

internal

systems

responsible

for

managing

the

Huntington

Beach

brand

ecosystem

rather

than

relying

on

fragmented

external

control.

2. Standardize Systems
Create

coordinated

operational

structures

connecting

tourism,

media,

events,

film

production,

sponsorships,

and

licensing.

3. Capture Intellectual Property
Treat

the

Huntington

Beach

identity

as

a

strategic

municipal

asset

with

defined

licensing,

merchandising,

and

partnership

frameworks.

9 4. Train and Transfer Institutional Knowledge
Develop

internal

city

capabilities

related

to

brand

IP

that

reduce

reliance

on

outside

consultants

and

vendors.

5. Eliminate Long-Term Dependency
Design

systems

that

allow

Huntington

Beach

to

operate

more

independently

rather

than

relying

on

external

organizations

to

manage

core

economic

drivers.

If implemented, these structural changes would allow Huntington Beach to transition from a city that

just

hosts

economic

activity

tied

to

its

identity

to

a

city

that

actively

manages

and

captures

the

value

that

identity

produces.

As

these

programs

grow,

they

can

generate

enough

revenue

to

expand

internal

capacity

and

reduce

pressure

on

the

teams

currently

carrying

these

responsibilities.

5. AUDIT METHODOLOGY
The findings in this report were developed through a multi-step review process designed to evaluate

both

the

operational

structure

and

financial

implications

of

programs

tied

to

the

Huntington

Beach

brand

ecosystem.

Methods

used

during

this

audit

include:

Public Records Review
Examination

of

publicly

available

agreements,

reports,

contracts,

and

program

documentation

related

to

tourism,

events,

media,

and

other

city-affiliated

activities.

Department Interviews
Discussions

with

relevant

city

personnel

and

stakeholders

involved

in

programs

connected

to

tourism,

communications,

cultural

programming,

and

economic

activity

tied

to

Huntington

Beach’s

public

identity.

Revenue Analysis
Review

of

available

financial

information

to

identify

potential

gaps

between

economic

activity

occurring

within

the

Huntington

Beach

ecosystem

and

the

direct

revenue

captured

by

the

City.

Benchmark City Comparison
Reference

to

structural

models

used

by

comparable

municipalities

to

manage

tourism,

media,

film

production,

events,

and

brand-related

economic

assets.

Comparative Fee Structures
Evaluation

of

how

Huntington

Beach’s

fees,

agreements,

and

revenue

structures

compare

to

similar

cities

and

programs.

Workflow Observation
Assessment

of

operational

workflows

and

departmental

coordination

to

identify

fragmentation,

redundancy,

or

system

gaps.

Limitations of Available Public Data
10 This report relies in part on publicly available records, reported figures, interviews, and benchmark comparisons. Because complete financial,

contractual,

and

operational

data

was

not

available

in

all

areas

at

the

time

of

review,

certain

findings

and

projections

are

best

understood

as

conservative

estimates

based

on

the

information

currently

accessible,

and

may

require

further

validation

through

deeper

internal

review.

THE HUNTINGTON BEACH BRAND ECOSYSTEM
The Huntington Beach brand ecosystem functions best when film, tourism, events, licensing, merchandising,

media,

sponsorship,

cultural

programming,

and

city-owned

venues

are

treated

as

connected

parts

of

one

larger

system

rather

than

separate

activities

operating

in

silos.

Each

area

feeds

the

others.

Film

and

media

drive

attention.

Tourism

converts

attention

into

visits,

spending,

and

broader

recognition.

Events

create

moments

that

generate

attendance,

press,

sponsorship

value,

and

merchandising

opportunities.

Licensing

and

merchandising

capture

revenue

from

the

City’s

identity

and

extend

its

presence

into

everyday

life.

Cultural

programming

strengthens

authenticity,

community

pride,

and

local

participation.

City-owned

venues

and

public

assets

serve

as

the

stages

where

these

experiences

are

activated.

When

aligned

under

a

unified

strategy,

these

categories

build

momentum

for

one

another,

increasing

public

value,

strengthening

the

City’s

identity,

and

creating

more

sustainable

long-term

economic

return.

Includes:
● Film ● Tourism ● Events ● Licensing ● Merchandising ● Media ● Sponsorship ● Cultural programming ● City owned venues & Assets

____________________________________________________________________________

6. CORE ISSUE: BRAND & BRAND VOICE
11 1. Discovery Huntington Beach possesses one of the strongest municipal identities in California.

The

pier,

surf

culture,

major

events,

coastline,

and

“Surf

City”

association

generate

significant

national

and

international

recognition.

Third-party voices — including national media, influencers, event promoters, and independent organizations

—

play

an

outsized

role

in

shaping

public

perception

of

the

brand.

However,

brand

management

remains

fragmented

across

tourism

promotion,

city

communications,

department-level

outreach,

event

marketing,

and

media

production.

There

is

no

centralized

authority

responsible

for

integrating

these

efforts

into

a

unified,

strategic

system

or

effectively

managing

third-party

portrayals.

Upon interviews with department heads, current creative and public information staff is severely overburdened,

limiting

capacity

for

proactive,

high-quality

content

production

and

brand

stewardship.

Additionally,

media

storage

does

not

currently

meet

modern

archive

standards

and

lacks

a

digital

asset

management

(DAM)

system,

hindering

ease

of

access

for

press,

internal

teams,

partners,

and

content

repurposing.

The City also lacks a robust network of strong, positive third-party voices in the influencer and creator

economy.

There

are

few

sustained,

authentic

relationships

with

lifestyle,

surf,

family-travel,

or

coastal

influencers

who

could

consistently

amplify

the

welcoming,

fun

Surf

City

culture

to

wider

audiences.

What exists: ● Miles of beaches, 350+ acres of parks, hundreds of events annually ● Major events drawing hundreds of thousands of visitors ● A thriving business community and restaurant scene ● Cultural institutions and historic landmarks ● Daily moments of community pride, achievement, and beauty What doesn't exist: ● A unified creative and communication vision across departments ● A professional media archive and asset management system ● Modern video production that competes with what residents see elsewhere ● A content strategy that proactively tells the city's story ● Systems to capture, organize, and distribute high-quality media ● Coordination between tourism, parks, business services, and city communications ● A YouTube channel or social media presence with large meaningful impact

2. Current Structure Tourism marketing is primarily executed through an external nonprofit entity

focused

on

hotel

performance,

while

City

communications

operate

separately

with

limited

scope,

infrastructure,

and

distribution

reach.

Across

departments,

content

is

produced

independently

without

a

shared

brand

framework,

unified

messaging

architecture,

or

centralized

asset

system.

The

result

is

a

fragmented

public-facing

identity

where

major

parts

of

the

Huntington

Beach

story

are

being

told

in

silos

rather

than

through

a

coordinated

citywide

strategy.

12 In recent years, there appears to be limited collaboration and few high-impact joint initiatives between

the

current

DMO

(Destination

Marketing

Organization

-

Visit

Huntington

Beach)

and

the

City

that

meaningfully

advance

broader

brand

objectives

beyond

core

hotel

and

tourism

metrics.

This

structural

separation

reduces

the

City’s

ability

to

align

campaigns,

amplify

key

moments,

and

fully

leverage

the

Surf

City

identity

across

tourism,

culture,

community,

and

civic

pride.

Without

greater

unification,

Huntington

Beach

risks

continuing

to

operate

with

disconnected

voices,

duplicated

effort,

and

underleveraged

brand

assets.

For

that

reason,

the

City

must

take

a

more

active

role

in

building

alignment

across

stakeholders

and

owning

the

systems

that

shape

its

authentic

voice,

so

the

welcoming,

fun,

family-friendly

coastal

culture

of

Huntington

Beach

is

consistently

represented,

reinforced,

and

protected.

3. Financial Data (Indirect Impact) While brand infrastructure does not generate direct revenue

line-items,

it

materially

impacts

tourism

spend,

event

participation,

business

attraction,

sponsorship

pricing

power,

merchandising

performance,

and

film

location

desirability.

Modern destination marketing studies consistently show that perception and digital visibility heavily

influence

visitor

spending

patterns,

length

of

stay,

and

willingness

to

purchase

branded

products.

The

power

of

third-party

voices

amplifies

both

positive

and

negative

messaging,

directly

affecting

economic

outcomes.

4. Benchmark Comparison Comparable cities with strong tourism economies maintain centralized

brand

governance,

in-house

creative

direction

or

integrated

oversight,

unified

digital

strategies,

proactive

media

outreach,

and

coordinated

tourism

+

city

messaging.

These

systems

allow

them

to

better

harness

third-party

voices

while

protecting

core

brand

value

and

aligning

public

perception

with

economic

goals.

Huntington Beach currently operates without this level of integration, leaving its brand identity vulnerable

to

external

forces.

5. Structural Risk The lack of centralized brand oversight creates several critical vulnerabilities:
● Loss of control over brand identity during periods of negative attention, particularly as national

media

sometimes

frames

Huntington

Beach

in

ways

that

overshadow

its

actual

culture
● Negative or controversy-focused third-party coverage can amplify narrow or incomplete

portrayals

of

the

City,

reducing

visibility

for

the

broader

coastal

identity,

family

appeal,

and

community

strengths

that

support

tourism,

events,

and

civic

pride.
● Limited positive amplification from influencers and creators due to few established, mutually

beneficial

relationships
● Missed amplification of positive community developments ● Reduced tourism yield per visitor 13 ● Weak sponsorship leverage ● Inefficient cross-department communication ● Underperformance in digital engagement ● Severe overburdening of creative staff, constraining proactive storytelling and response

capabilities
● Inadequate modern media archiving and access, slowing content reuse, press support,

and

overall

efficiency
● Businesses and investors deterred by persistent negative brand narrative , perceiving

higher

risk

or

reputational

concerns

when

deciding

where

to

open,

expand,

or

host

events

—

despite

the

City’s

world-class

location

and

infrastructure
● Potential long-term economic chilling effect , as negative or polarized media coverage

discourages

corporate

partnerships,

film

productions,

retail

development,

and

tourism-related

investment

that

would

otherwise

flow

to

a

strong,

positive

brand

like

Huntington

Beach.

For a city with Huntington Beach’s level of public visibility, fragmented communications and brand

systems

create

avoidable

risk.

In

a

fast-moving

media

environment,

perception

can

shift

quickly,

and

without

coordinated

infrastructure

the

City

is

less

equipped

to

reinforce

the

identity

that

supports

tourism,

investment,

partnerships,

and

long-term

economic

value.

6. Revenue Gap Brand fragmentation, weak control over brand identity, and heavy reliance on third-party

voices

contribute

to

measurable

economic

losses.

Without

a

more

professional

and

coordinated

media,

content,

and

storytelling

strategy,

the

City

is

unlikely

to

convert

the

full

strength

of

its

identity

into

its

highest

potential

economic

return

across

tourism,

sponsorships,

film

activity,

merchandising,

and

related

categories.

This results in lower per-visitor spending, under-monetized opportunities in merchandising and licensing,

reduced

film

and

event

sponsorship

pricing

power,

and

missed

ancillary

revenue

from

cultural

assets

and

branded

experiences

and

fewer

new

businesses

opening

in

the

city.

Conservative annual lost opportunity due to ineffective brand and media execution: $1.1 million –

$2.25

million

in

direct,

quantifiable

revenue

(merchandising,

film,

parade

sponsorships,

Art

Center

commissions,

etc.)

—

with

the

true

economic

and

community

impact

far

larger

and

largely

immeasurable,

as

it

compounds

through

reduced

tourism

yield,

deterred

business

investment,

diminished

national

perception,

and

lost

cultural

relevance

that

erodes

the

Surf

City

brand’s

long-term

value

every

year

we

fail

to

act.

Brand infrastructure and content quality directly influence revenue conversion rates across multiple

categories.

When

third

parties

dominate

the

voice

and

the

City

lacks

professional,

engaging

media

capabilities,

it

captures

significantly

less

value

than

the

underlying

asset

justifies.

7. Corrective Path
14 Immediate:
● Establish centralized brand oversight authority with clear responsibility for brand identity

strategy

and

third-party

engagement
● Conduct full communication infrastructure audit ● Define unified messaging architecture that protects core Surf City identity Mid-Term:
● Implement modern media archive and digital asset management (DAM) system for secure,

searchable

storage

and

easy

access
● Create collaborative cross-department creative content calendar & execution ● Align tourism and city messaging through structured coordination, including proactive media

response

protocols
● Launch staff training program focused on effective, engaging content creation, digital storytelling,

video

production,

and

brand-aligned

messaging
● Develop internship structure to support overburdened creative teams, provide fresh capacity,

and

build

talent

pipeline
● Initiate targeted influencer and creator outreach program to build authentic, positive third-party

relationships

and

opportunities

for

collaboration

Long-Term:
● Develop in-house creative direction capacity with professional media planning and execution
● Build proactive press engagement framework and third-party amplification strategy ● Establish performance metrics tied to economic impact, brand sentiment, content engagement

rates,

and

revenue

capture
● Leverage current brand assets (e.g., merchandising, licensing, film, events) to generate

additional

revenue

streams,

directly

bolstering

staffing

and

resources

in

communications

and

creative

departments

Additional Context: DMO Reliance & Scope
Over the past decade, Visit Huntington Beach (VHB) has gradually positioned itself as the default

point

of

contact

for

much

of

the

City’s

broader

destination

brand,

marketing

narrative,

visitor

experience

strategy,

and

creative

initiatives

—

responsibilities

that

extend

well

beyond

its

core

mandate

of

lodging-focused

promotion.

VHB’s

mission

statements,

annual

reports,

and

public

materials

consistently

claim

ownership

over

“inspirational

destination

marketing,”

“brand

management,”

and

“economic

vitality”

and

even

public

relations

and

crisis

communication.

Based

on

our

research

and

interviews,

the

City

appears

to

have

relied

heavily

on

VHB

for

event

amplification,

media

coordination,

content

creation,

and

broader

brand-related

functions,

areas

outside

the

scope

of

the

city’s

arrangement

and

whose

board

composition

appears

to

remain

heavily

weighted

toward

hotel

industry

interests.

15 This drift has created an unintended over-reliance. People and partners now automatically turn to

VHB

when

they

want

to

do

anything

creative

or

marketing-related

with

the

City.

While

this

may

have

seemed

convenient,

or

even

standard

based

on

how

some

DMO’s

operate,

VHB’s

performance

in

visitor

marketing

and

broader

destination

promotion

has

been

largely

standard

rather

than

standout,

with

recent

campaigns

for

hotels

and

events

often

feeling

outdated

and

out

of

touch

with

current

industry

trends.

More

importantly,

the

City

has

no

proactive

relationships

with

key

promoters,

event

producers,

film

commissioners,

and

other

partners

of

its

own,

because

those

connections

have

quietly

shifted

to

VHB

over

the

past

several

years

—

an

organization

not

technically

responsible

or

structured

to

manage

them

for

the

city.

The result is fragmented strategy, weaker accountability, and missed opportunities across the board.

The

Surf

City

brand

deserves

clearer

governance,

stronger

city-led

direction,

and

balanced

stakeholder

input

rather

than

defaulting

to

a

model

that

has

expanded

beyond

its

original

scope.

Suggested Solutions
If the City chooses to continue outsourcing some of these functions, several structural improvements

could

restore

alignment

and

accountability:

● Stronger, clearly defined ownership roles and lines of responsibility in the management agreement.
● A more collaborative board structure with meaningful council oversight and regular reporting

requirements.
● Inclusion of internal city stakeholders on the board to ensure broader community and departmental

representation.
● Adoption of an operational model closer to Visit Newport Beach’s, where the DMO is responsible

for

the

larger

marketing

of

the

entire

city

—

not

just

lodging

—

through

a

formal

city

contract

with

integrated

public-private

governance,

shared

priorities,

direct

accountability

to

the

full

city

organization,

and

built-in

collaboration

across

stakeholders.

This

structure

could

also

ease

burdens

and

responsibility

on

internal

city

staff

but

comes

with

its

own

set

of

risks

as

well.

Structure of the Visit Newport Beach Model and Potential Benefits Visit Newport Beach operates as a city-contracted DMO within the broader Newport Beach & Company

framework,

funded

primarily

through

TOT

but

governed

under

a

formal

agreement

with

the

City

of

Newport

Beach.

This

structure

gives

the

DMO

clear

responsibility

for

overall

city-wide

destination

marketing,

brand

management,

visitor

experience

development,

event

promotion,

and

economic

vitality

initiatives

—

not

just

hotel

performance.

Governance

includes

a

TBID

board,

an

executive

committee,

and

direct

city

oversight

through

ordinances

and

shared

priorities,

ensuring

collaboration

with

the

full

range

of

stakeholders

(residents,

businesses,

cultural

organizations,

and

city

departments)

rather

than

a

narrow

lodging

focus.

16 For Huntington Beach, adopting a similar model would allow the DMO to focus on comprehensive

brand

marketing

and

city-wide

destination

promotion

with

strong

built-in

accountability

and

stakeholder

collaboration.

This

structure

would

clearly

define

roles,

maintain

proactive

city

relationships

with

promoters

and

partners,

and

align

marketing

efforts

more

closely

with

the

entire

community’s

needs

—

delivering

better

results

for

the

Surf

City

brand

while

keeping

governance

transparent

and

balanced.

Additional Context: Recent Press and Media Patterns In recent years, Huntington Beach has received a growing volume of national and regional media

attention

centered

on

political

conflict

and

controversy

rather

than

the

broader

coastal

lifestyle,

surf

heritage,

community

traditions,

and

quality

of

life

that

have

long

shaped

its

public

identity.

While

no

city

can

control

every

headline,

sustained

imbalance

in

external

coverage

can

distort

public

perception

over

time

and

reduce

visibility

for

the

attributes

that

have

historically

driven

tourism,

civic

pride,

and

broader

brand

appeal.

In a media environment where controversy often receives disproportionate attention, cities with strong

public

identities

must

work

more

intentionally

to

ensure

their

broader

strengths

remain

visible.

For

Huntington

Beach,

that

means

a

more

proactive

and

coordinated

approach

to

communications,

third-party

engagement,

and

brand

storytelling

so

that

public

perception

is

not

shaped

disproportionately

by

isolated

controversies.

As part of this audit, a representative sample of more than 100 relevant news articles and reports

from

Google

News,

major

California

outlets,

and

local

sources

was

reviewed

to

better

understand

the

dominant

themes

shaping

public

perception

of

Huntington

Beach.

No

independent

third-party

media

monitoring

study

specific

to

Huntington

Beach

was

identified

during

this

review.

Based

on

this

sample,

the

majority

of

higher-visibility

coverage

appeared

to

be

political

or

controversy-oriented,

while

positive

or

lifestyle-driven

coverage

was

present

but

materially

less

prominent

in

overall

volume

and

reach.

● Political coverage : Approximately 75–85% of all press mentions are political or controversy-focused.
● Negative or critical tone : Approximately 60–70% of stories carry a negative or critical tone.

Even

neutral

local

stories

are

often

overshadowed

by

controversy.

Positive

or

neutral

coverage

makes

up

only

20–30%

and

rarely

goes

national.

Positive coverage relating to Huntington Beach’s businesses, beach culture, community events, and

everyday

quality

of

life

exists,

but

appears

materially

less

prominent

than

controversy-driven

coverage

in

overall

visibility

and

distribution.

How This Affects the City Brand
17 This heavy political tilt has shifted national and regional perception of Huntington Beach away from

“Surf

City

USA”

—

the

fun,

welcoming,

family-friendly

coastal

icon

—

and

toward

a

polarized

political

flashpoint.

When

controversy

becomes

the

dominant

frame

through

which

a

city

is

seen,

it

can

overshadow

the

qualities

that

historically

attracted

visitors,

businesses,

families,

event

partners,

and

broader

cultural

interest.

The

constant

focus

on

controversy

creates

a

feedback

loop:

it

drives

more

political

coverage

while

crowding

out

stories

about

life

here

in

HB

and

community

strengths

that

actually

reflect

the

vast

majority

of

residents’

experience.

The

result

is

diminished

tourism

appeal,

weaker

third-party

advocacy,

and

missed

opportunities

to

showcase

the

full

value

of

the

Huntington

Beach

identity.

What We Need Moving Forward

The City would benefit from a more intentional and coordinated communications strategy that increases

the

visibility

of

authentic,

positive,

and

community-centered

stories.

The

goal

is

not

to

manufacture

perception,

but

to

better

represent

the

full

reality

of

Huntington

Beach

by

amplifying

the

people,

places,

traditions,

and

everyday

experiences

that

continue

to

define

its

long-term

appeal.

Stronger

coordination,

better

media

infrastructure,

and

more

proactive

third-party

engagement

would

help

restore

balance

and

improve

the

City’s

ability

to

shape

how

its

identity

is

understood.

7. CORE ISSUE: MERCHANDISING & REVENUE LOSS

1. Discovery
Huntington Beach possesses one of the most powerful and valuable municipal brands in the world

through

its

pier,

surf

culture,

major

events,

coastline,

and

decades

of

national

and

international

recognition.

The

global

surfing

apparel

and

accessories

market

is

currently

valued

at

$10.37

billion

and

is

projected

to

exceed

$15

billion

by

2033.

Individual

major

surf

brands

generate

hundreds

of

millions

in

annual

revenue.

Quiksilver,

Hurley,

Billabong,

Volcom,

Roxy,

Ripcurl,

RVCA,

and

Reef

are

the

major

players

in

the

market

and

Huntington

Beach

should

rightfully

have

a

seat

at

that

table.

Huntington Beach captures virtually none of the economic value its name and reputation should generate

through

retail

sales,

licensing

and

partnerships.

We have the visibility, authenticity, heritage, and audience to claim a meaningful share, yet the category

remains

almost

entirely

untapped.

By

way

of

scale

only,

even

a

very

small

share

of

a

multi-billion-dollar

surf

and

coastal

lifestyle

market

would

translate

into

substantial

retail

volume.

For

example,

0.25%

of

that

broader

market

would

equate

to

approximately

$27.5

million

in

gross

annual

retail

sales.

That

figure

is

not

presented

as

a

short-term

municipal

revenue

18 forecast, but as an illustration of how large the surrounding market is relative to the City’s current

level

of

participation.

2. Current Structure
Merchandising

and

licensing

are

currently

locked

into

a

single

outdated

third-party

agreement

tied

to

the

Surf

City

Store

on

the

Pier,

featuring

a

severely

undervalued

5%

royalty

rate

on

branded

merchandise,

well

below

common

industry

standards,

extremely

low

pier

lease

rent

of

$950

per

month

for

a

high-traffic

prime

location,

no

minimum

royalty

guarantees,

and

limited

audit

and

verification

protections.

The referenced servicemark (“Surf City, Huntington Beach”) is dead/cancelled (USPTO Reg.

No.

74/350/258,

lapsed

2005),

weakening

enforceability.

The

website

for

direct

consumer

orders

is

hard

to

find,

has

a

very

limited

selection,

little

to

no

active

marketing

or

promotion,

and

product

designs

that

have

remained

largely

stagnant

for

years.

Seasonal

collections

are

not

regularly

introduced,

and

the

overall

program

appears

commercially

underdeveloped

and

largely

invisible

relative

to

the

millions

of

visitors

who

come

to

Huntington

Beach

each

year.

Beyond the pier store, our research indicates widespread sales of Huntington Beach-branded apparel

and

products

across

the

city,

from

liquor

stores

and

small

shops

to

major

retail

outlets,

some

openly

selling

HB-branded

apparel

with

no

licensing

agreement

and

zero

revenue

return

to

the

City.

All

of

this

unauthorized

activity

likely

accounts

for

millions

of

dollars

in

annual

sales

that

are

completely

lost

to

the

city.

3. Financial Data (Indirect Impact)
The

current

program

generates

very

limited

direct

revenue

for

the

City

relative

to

the

strength

of

the

Huntington

Beach

brand.

Financial

evidence

from

2024–2025

Surf

City

Store

reports

shows

total

reported

sales

of

$1,515,215.94,

with

the

City

receiving

only

$75,760.81

in

royalties

under

the

current

5%

structure.

Average

monthly

sales

were

approximately

$63,134,

while

the

average

monthly

return

to

the

City

was

approximately

$3,157.

This gap is significant because the value behind Huntington Beach-branded merchandise was built

over

decades

through

the

identity,

reputation,

and

cultural

contributions

of

the

community

itself.

Yet

under

the

current

structure,

much

of

that

value

does

not

appear

to

be

returning

to

the

City

in

a

meaningful

way.

From July through December 2025, more than $400,000 in reported sales appears to have generated

only

approximately

$18,000

in

revenue

to

the

City.

4. Benchmark Comparison
Other major coastal cities manage their brands far more aggressively. The iconic “I ❤ NY” is reported

to

generate

$30

million

annually

in

revenue.

Comparable

coastal

destinations

with

active,

professionally

managed

licensing

programs

(including

Santa

Monica,

San

Diego,

Los

Angeles,

and

Miami

Beach)

generate

$1

million

to

over

$5

million

per

year

in

direct

licensing

and

merchandise

revenue

through

modern

e-commerce

platforms,

regularly

updated

product

lines,

aggressive

digital

marketing,

and

reasonable

royalty

structures.

19 These cities capture a meaningful share through official branded merchandise. Huntington Beach,

with

stronger

global

surf

and

coastal

recognition

than

most

peers,

receives

virtually

nothing

in

comparison.

5. Structural Risk
The current third-party deal — combined with rampant unlicensed sales — is a raw, one-sided arrangement

that

is

actively

costing

taxpayers

hundreds

of

thousands

(likely

millions)

of

dollars

every

single

year:

● A 5% royalty rate that hands the vast majority of profits to outside operators while the City

gets

almost

nothing

● Revenue that belongs to the generations of Huntington Beach residents who built this brand

is

instead

being

pocketed

by

third

parties
● Complete absence of any marketing or promotion — consumers who want official Huntington

Beach

merchandise

literally

cannot

find

it
● The absence of an official website, online store, or meaningful direct-to-consumer pathway

is

a

major

structural

gap

for

a

destination

brand

of

this

caliber.
● Weak audit rights, weak oversight, limited minimum protections, and reliance on outside reporting

create

avoidable

exposure

and

potential

for

underreporting

where

the

City

should

be

demanding

greater

transparency

and

accountability.
● Severely undermarket pier space lease - A prime high traffic retail location appears to be operating

under

terms

that

do

not

reflect

the

value

of

the

site

or

the

traffic

associated

with

it.
● Product execution appears stagnant, with limited evidence of the kind of ongoing design development,

seasonal

refreshes,

and

quality

control

expected

in

the

$10+

billion

surf

market
● Widespread unlicensed sales at 50+ locations across the city, including major retailers here

in

the

city,

generating

large

amounts

in

unauthorized

(and

in

some

cases

un-taxed)

revenue

with

zero

return

to

residents
● Missed retail partnerships, sponsorships, and brand extensions that other major destination

cities

are

actively

cashing

in

on

That combination of weak economics, weak oversight, weak enforcement, and weak modern retail

infrastructure

does

not

reflect

the

standard

that

should

apply

to

an

asset

of

this

magnitude.

6. Revenue Gap
With $580 million (per VHB) in annual direct visitor spending, shopping and souvenirs typically account

for

12-18%

—

representing

a

massive

revenue

opportunity.

A

professionally

managed

merchandising

program

should

capture

a

meaningful

share

through

official

branded

products.

Instead, due to the outdated third-party agreement, complete lack of marketing, absence of any substantial

online

sales

platform,

stagnant

product

designs,

rock-bottom

terms,

and

the

20 explosion of unlicensed sales across multiple locations , the City is failing to capture even a fraction

of

this

opportunity.

Conservative annual lost opportunity due to ineffective merchandising and licensing:
$500,000

–

$1

million

(with

potential

for

$750,000

–

$2

million

net

annually

under

internalized

operations

on

$1M+

sales,

plus

millions

more

once

unlicensed

sales

are

brought

under

control

and

the

program

is

built

and

structured.

When outsiders control licensing under terrible terms and the City allows widespread unauthorized

sales,

it

captures

a

tiny

fraction

of

the

value

its

brand

actually

justifies

—

value

built

by

local

generations

and

now

being

handed

away

for

almost

nothing.

7. Corrective Path
Existing unlicensed sales should not be treated as a reason to avoid correction. They should be treated

as

proof

that

real

demand

exists

and

that

the

City

has

waited

too

long

to

bring

this

category

under

proper

control.

Rather

than

leading

with

immediate

enforcement,

the

City

should

offer

a

short

structured

transition

period

for

businesses

that

currently

sell

unlicensed

HB

merchandise

and

want

to

begin

selling

authentic

merchandise

through

legitimate

channels,

including

wholesale

pricing,

collaboration

opportunities,

and

access

to

stronger

official

product

collections.

This

approach

allows

the

City

to

reestablish

control,

capture

appropriate

value,

and

bring

willing

retailers

into

a

better

system

moving

forward.

Immediate
● Establish clear centralized authority for merchandising and licensing strategy ● Conduct a full audit of the existing third-party structure, including royalty terms, lease economics,

sales

history,

audit

rights.
● Finalize current trademark and IP protection work and define stronger product and licensing

standards
● Identify the full scope of unauthorized, unlicensed, or weakly controlled retail activity tied to

Huntington

Beach

branding

Mid-Term
● Renegotiate, restructure, or replace the current underperforming arrangement where legally

and

operationally

appropriate
● Launch an official City-controlled or City-governed e-commerce platform and direct-to-consumer

sales

system
● Develop stronger product lines aligned with current surf, coastal, and lifestyle demand ● Implement active marketing, authentication, and retail partnership strategies ● Establish a practical enforcement pathway for unauthorized or uncompensated commercial

use

of

City

brand

assets

Long-Term
21 ● Build internal licensing, merchandising, and creative capability sufficient to manage the category

professionally
● Implement royalty and partnership structures with meaningful accountability, audit rights, and

performance

standards
● Create measurable performance benchmarks tied to direct revenue, sales growth, distribution

reach,

and

brand

protection
● Reinvest a portion of new merchandising revenue into the communications, creative, and operational

infrastructure

required

to

sustain

and

protect

the

broader

Huntington

Beach

brand

Key U.S. Tourism Expenditure Data (Shopping/Souvenirs): ● Overseas Tourists (2024): 18% of total spending, amounting to about $325 per trip. ● North American Tourists (2024): 12.8% of total spending, about $152 per trip. ● General Travelers: 25% of travelers list purchasing souvenirs as a financial priority. ● Spending Amount: Vacationers often spend between $50 and $200+ on merchandise and

gifts

per

trip.

Context on Spending Habits: ● Top Categories: Shopping is consistently ranked behind accommodation (30-35%) and food/beverage

(20-21%).
● Buyer Behavior: Roughly 65% of Americans bring back souvenirs, with 44% gifting to family

and

39%

for

themselves.

Progress Already Underway: Strengthening Trademark and IP Protections At the forefront of Huntington Beach's globally recognized coastal identity are its logos and core visual

marks—the

instantly

recognizable

symbols

that

represent

the

city

in

merchandise,

events,

partnerships,

and

media

worldwide.

For

years,

our

main

city

logo

has

remained

unprotected

or

inadequately

registered,

leaving

it

vulnerable

to

unauthorized

use,

dilution,

and

lost

licensing

opportunities.

This

long

standing

gap

has

allowed

value

to

slip

away

quietly,

even

as

the

city's

brand

continues

to

carry

significant

cultural

and

economic

weight.

During the audit, we conducted a deep review of all of the city's trademarks and intellectual property.

We

found

that

the

city's

original

iconic

HB

logo

mark

was

not

properly

registered

or

protected.

Staff explained that past attempts years ago were abandoned after being told registration might not

be

possible

due

to

widespread

use

by

others.

The

matter

was

left

unresolved.

We took a fresh approach: identified the specific lapses (expired filings, incomplete applications, missed

opportunities),

the

original

curation

process,

and

worked

directly

with

the

city's

legal

and

22 IP team. We gathered documentation, addressed the issues, and successfully restarted the protection

process.

Steps are now actively in progress to secure stronger registrations for these core brand elements—helping

prevent

unauthorized

use,

reduce

dilution,

and

enable

better

enforcement

and

monetization.

This is a clear example of what focused effort can accomplish: uncovering long-standing gaps and

closing

them

through

internal

collaboration—no

major

obstacles,

just

persistence.

This early progress shows that many audit findings are fixable with similar diligence. Securing foundational

IP

like

logos

is

a

critical

first

step

toward

reclaiming

control

over

the

city's

brand

value

and

stopping

leakage

in

licensing

and

merchandising.

Building on this momentum will help shift from a reactive to a proactive approach, delivering lasting

benefits

for

the

community.

Additional opportunities:

Beyond just apparel: The City is overlooking an easy, low-overhead revenue channel inside facilities

it

already

owns

and

operates.

The

Art

Center,

libraries,

and

other

public-facing

spaces

should

function

not

just

as

civic

amenities,

but

as

retail

touchpoints

for

Huntington

Beach’s

brand

and

creative

identity.

A

kiosk-based

merchandising

system

would

allow

visitors

to

purchase

City-branded

goods,

art

prints,

photography,

and

other

curated

products

onsite

and

have

them

shipped

directly

to

their

homes.

That

approach

dramatically

reduces

risk,storage,

staffing,

and

operational

friction

while

expanding

what

the

City

can

monetize.

Huntington Beach has no shortage of talented local artists and world-class surf and lifestyle photographers

whose

work

could

be

featured

through

this

system.

Under

a

revenue-share

model,

the

City

would

participate

in

each

sale

while

artists

retain

the

balance,

creating

a

program

that

supports

both

municipal

revenue

and

the

local

creative

economy.

With

minimal

setup

and

management

costs,

these

kiosks

could

become

a

meaningful

tourism

revenue

tool

while

reinforcing

the

culture

and

visual

identity

that

make

Huntington

Beach

valuable

in

the

first

place.

8. MISSED OPPORTUNITIES & REVENUE: FILM COMMISSION

1. Discovery
23 Huntington Beach stands out as one of Southern California’s most versatile and underutilized filming

destinations.

Its

iconic

pier,

expansive

beaches,

modern

Civic

Center,

Equestrian

Center,

and

Sports

Complex,

Pacific

City,

and

variety

of

community

housing

styles

give

production

companies

a

rare

mix

of

coastal

beauty

and

diverse

inland

locations

that

few

competitors

can

match.

Beyond direct revenue, successful film and television production delivers powerful cultural relevance,

high-value

earned

media,

authentic

third-party

voice

amplification,

and

increased

off-season

tourism

that

can

extend

visitor

stays

and

spending

throughout

the

year.

2. Current Structure
Film permitting is currently managed through a basic, decentralized process with modest fees and

limited

dedicated

support

that

producers

are

used

to.

The

program

lacks

proactive

marketing,

a

streamlined

one-stop

shop

experience,

and

a

professional

location

library.

While

basic

beach

and

pier

permitting

exists,

the

City

currently

does

not

actively

promote

its

full

range

of

unique

assets

or

position

itself

as

a

competitive

filming

destination

near

Los

Angeles.

3. Financial Data (Indirect Impact)
Direct permit and location fees represent the most tangible and reliable form of revenue from film

activity.

Currently,

these

direct

returns

remain

modest.

At the same time, the broader economic impact of film production is enormous and can reach hundreds

of

millions

of

dollars

for

cities

that

actively

pursue

it.

Industry

data

shows

the

average

location

shoot

day

generates

$50,000
-
$670,000

in

local

spending

and

supports

hundreds

of

jobs,

while

major

productions

can

exceed

$1.3

million

per

day

in

direct

local

economic

activity.

These

dollars

flow

into

hotels,

restaurants,

transportation,

retail,

and

local

suppliers

—

especially

valuable

during

off-season

months

—

while

also

creating

lasting

cultural

relevance,

earned

media

exposure,

and

positive

third-party

amplification

that

drives

future

tourism

and

visitation.

4. Benchmark Comparison
Several peer cities have built professional film commissions that generate both meaningful direct

revenue

and

massive

economic

impact.

San

Francisco’s

Film

SF

collected

$127,000

in

direct

permit

fees

(This

does

not

include

staffing,

or

location

use

or

any

other

fees)

in

FY

2024-25

while

driving

$17.5

million

in

estimated

direct

production

spending.

Fort Worth’s Film Commission has generated over $800 million in cumulative economic impact since

2016

through

focused

outreach.

Nashville’s

broader

arts,

culture,

and

creativity

economy

has

been

reported

by

Metro

planning

materials

at

approximately

$13

billion

annually,

and

a

single

major

production

—

‘9-1-1:

Nashville’

—

is

expected

to

generate

more

than

$50

million

in

local

economic

impact.

Comparable

coastal

destinations

like

Long

Beach,

Los

Angeles,

and

Miami

Beach

maintain

dedicated

offices

with

competitive

fees,

active

marketing,

and

24 streamlined processes that attract productions and deliver both direct fees and hundreds of millions

in

broader

economic

benefits.

5. Structural Gaps
The current structure presents several opportunities for improvement that would help the City fully

realize

its

potential:

● Absence of a dedicated Film Commission or centralized one-stop permitting office ● Limited relationships, marketing and outreach to productions and location scouts ● Under-promotion of the City’s diverse non-beach assets (Civic Center, Equestrian Center,

Pacific

City,

Sports

Complex,

etc)
● Multi-department coordination that can slow response times (including the current requirement

that

applicants

obtain

a

separate

business

license

before

even

submitting

a

film

permit

application

—

a

step

that

is

not

typical

in

peer

cities

and

production

process)
● No proactive strategy to highlight speed, efficiency, and location diversity that could undercut

larger

jurisdictions

These gaps mean Huntington Beach is not yet fully capitalizing on productions that could deliver direct

revenue,

economic

value

and

valuable

earned

media

exposure.

6. Revenue Gap
Huntington Beach has the locations and proximity to Los Angeles to compete effectively — particularly

by

offering

faster

permitting

turnaround

and

greater

location

diversity

than

many

parts

of

LA.

Professional

programs

in

comparable

destinations

routinely

generate

$125,000

to

several

million

in

annual

direct

revenue,

while

driving

tens

to

hundreds

of

millions

in

broader

economic

impact

(e.g.,

Fort

Worth’s

~$800M

cumulative

since

2016,

San

Francisco’s

$17.5M

direct

spending

in

one

year).

Currently, due to the absence of a dedicated Film Commission, limited marketing, outdated processes,

and

lack

of

streamlined

permitting,

the

City

is

not

capturing

its

full

potential

in

either

direct

revenue

or

indirect

benefits,

or

economic

impact.

Conservative annual lost opportunity due to under-developed film permitting: $100,000 – $1

million

+

in

direct

revenue

(plus

multi-million-dollar

economic

impact,

earned

media

value,

and

off-season

tourism

lift

once

the

program

scales).

7. Corrective Path
Immediate:
● Establish a centralized Film Commission with clear responsibility for permitting, marketing,

and

revenue

strategy
● Conduct a full review of current fees, processes, and past production inquiries ● Develop streamlined one-stop permitting guidelines 25 Mid-Term:
● Launch a dedicated Film Commission with fast-track permitting designed to undercut Los Angeles

on

speed

and

ease

(target

48-72

hour

turnaround)
● Create a professional location library and comprehensive production resource book for

producers,

including

local

workforce

talent,

hotels,

parking,

and

other

production

resources
● Update fees to competitive levels with improved tracking ● Initiate active outreach to location managers and production companies (leveraging current

staff

to

grow

the

program

with

minimal

additional

stress

until

revenue

supports

dedicated

staffing)

Long-Term:
● Build professional in-house location management and creative partnership capabilities ● Establish a high-performance permitting framework focused on both direct revenue and earned

media

outcomes
● Set measurable goals tied to permit revenue, production days, and off-season tourism impact
● Direct new film revenue into communications, creative departments, and public asset maintenance

Source Data
● City of Huntington Beach Film, Video and Still Photography Permit Fees (2024) ● Film SF Annual Impact Report FY 2024-25 ($127,000 permit fees, $17.5M direct spending) ● California Production Coalition: average location shoot adds $670,000/day and 1,500 jobs ● Fort Worth Film Commission economic impact reports (2016–2025 data showing nearly $800 million cumulative impact, recent annual ~$1B) ● Tennessee Entertainment Commission 2025 Economic Impact Report ($8.2 billion in entertainment production clusters for 2024, including film/TV) ● FilmLA & peer city reports (2024–2025) ● Film Santa Monica, Long Beach, Miami Beach, Fort Worth, and Nashville Film Commission data (public documents, 2025–2026) ● UNWTO and industry analyses on direct film revenue vs. earned media, tourism, and economic multipliers ● Internal City tracking of production activity (2023–2025)

9. MISMANAGED & UNDERUTILIZED ASSET: ART CENTER

1. Discovery
Huntington Beach owns and operates a dedicated Art Center in a high-visibility location, supported

by

decades

of

community

investment,

public

support,

and

taxpayer

funding.

On

paper,

it

offers

classes,

camps,

events,

exhibitions,

and

artist

programs

that

should

contribute

to

the

City’s

creative

life

and

welcoming

coastal

identity.

In practice, however, the Center appears to remain relatively unknown not only regionally and nationally,

but

within

Huntington

Beach

itself.

Public

awareness,

foot

traffic,

participation,

and

overall

utilization

appear

limited.

Much

of

the

programming

feels

more

insular

than

open

and

inviting,

and

does

not

clearly

reinforce

Huntington

Beach’s

identity

as

a

fun,

welcoming,

family-friendly

coastal

destination.

26 The issue is not that the Art Center lacks value opportunity. The issue is that much of that value is

not

fully

reaching

the

community.

There

appears

to

be

limited

general

awareness

among

residents

about

what

is

happening

there,

who

it

serves,

and

why

it

matters.

Its

programs,

exhibitions,

and

activities

do

not

appear

to

generate

the

level

of

participation,

excitement,

cultural

relevance,

or

civic

benefit

that

comparable

city-run

arts

facilities

often

provide.

As a result, an asset that should be helping elevate local artists, expand community engagement,

and

strengthen

Huntington

Beach’s

creative

identity

is

operating

below

its

potential.

The

opportunity

is

not

simply

financial,

but

civic

and

cultural:

to

make

the

Art

Center

more

visible,

more

welcoming,

more

connected

to

residents,

and

more

valuable

to

the

artists

and

audiences

it

should

be

serving.

Many exhibitions also appear to receive little meaningful press attention or lasting public documentation.

In

many

cases,

once

a

show

closes,

there

is

little

to

no

accessible

visual

archive,

photo

gallery,

or

digital

record

that

allows

residents,

visitors,

collectors,

or

supporters

to

see

what

was

exhibited.

That

limits

the

public

reach

of

the

work,

reduces

long-tail

exposure

for

participating

artists,

and

reflects

a

broader

weakness

in

the

City’s

PR,

content

capture,

and

cultural

documentation

efforts.

A

city-run

gallery

should

not

only

host

exhibitions

well

in

the

moment,

but

also

preserve

and

extend

their

value

through

visibility,

promotion,

and

accessible

online

archives

for

those

who

could

not

attend

in

person

or

wish

to

revisit

the

work

after

the

exhibition

has

ended.

In

addition,

many

exhibitions

appear

to

lack

supporting

print,

merchandise,

or

take-home

purchase

opportunities

tied

to

the

show

itself.

That

creates

a

missed

opportunity

both

for

participating

artists,

who

lose

additional

exposure

and

sales

potential,

and

for

the

City,

which

loses

a

practical

and

low-friction

revenue

capture

channel

connected

directly

to

its

own

cultural

programming.

2. Current Structure
The Art Center seems to operate with little to no integrated revenue strategy beyond the offered community

art

classes.

Programming

focuses

almost

exclusively

on

small

shows

and

regional

artists.

There

is

no

gallery

sales

commission

program,

no

on-site

or

online

retail/merchandise

operation,

no

market-rate

facility

rentals,

and

no

formal

sponsorship

or

branded

partnership

framework.

Oversight

is

split

between

City

departments

and

external

nonprofit/Foundation

support,

with

limited

coordination

or

performance

accountability

tied

to

financial

return

or

community

impact

and

engagement.

3. Financial Data (Indirect Impact)
The City fully subsidizes operations.

FY 25-26 Revised Expenditures
● Admin (Personnel + Operating): $437,399 ● Classes (Personnel + Operating): $97,856 ● Total City Cost: $535,255 27 Revenues (Full-Year Projection Based on YTD)
● Class/Camp fees: ~$83,451–$107,708 (explicitly covers only instructor/program costs) ● Memberships: ~$2,725 ● Artist Council fees: ~$6,407 ● Rentals & Special Events: ~$5,240 ● Total Revenue: ~$97,823–$114,178 Net Annual Subsidy to the Art Center: $421,000 – $437,000 in taxpayer dollars.

The revenue generated by activities at this City-owned facility rightfully belongs, at least in part, to

the

residents

who

built

and

maintain

the

brand

and

infrastructure

—

yet

virtually

none

returns

to

the

General

Fund.

4. Benchmark Comparison
Comparable coastal-city cultural facilities treat their centers as revenue-generating assets that actively

elevate

both

the

institution

and

local

artists.

Laguna

Art

Museum

generated

$3.27

million

in

total

revenue

in

2024

through

gallery/exhibition

sales

and

commissions.

Long

Beach

Museum

of

Art

Foundation

reported

$2.17

million

in

revenue

in

2024.

These

and

other

peer

institutions

routinely

feature

nationally

and

internationally

renowned

artists

alongside

local

talent,

capturing

20–50%

commissions

while

dramatically

increasing

the

market

value

of

regional

artists

through

association

and

exposure.

Huntington Beach does not participate in or compete with major regional events such as Newport

Beach’s

art

festivals

or

Laguna

Beach’s

Festival

of

the

Arts,

missing

out

on

shared

tourism

and

cross-promotion

that

other

cities

actively

leverage.

5. Structural Gaps
The current model creates clear vulnerabilities:
● Heavy General Fund subsidy with no requirement for break-even or revenue-sharing ● Programming that feels exclusionary and insular, focusing almost exclusively on small shows

and

regional

artists,

rendering

the

Center

incapable

of

curating

exhibitions

with

nationally

or

internationally

renowned

artists
● Complete absence of gallery sales commissions, on-site city branded retail, or branded art

merchandise
● Minimal facility rental income and no corporate/private event strategy ● No collaboration with hotels or other local partners to build community experiences around

major

festivals,

and

no

participation

in

or

alongside

Newport

or

Laguna

events
● Missed opportunities to elevate local artists’ value by placing their work beside major names

—

an

approach

proven

to

deliver

immeasurable

uplift

in

artist

prestige,

sales,

and

tourism

draw

28 These gaps mean the City is subsidizing cultural programming while capturing almost none of the

economic

upside

created

by

its

own

brand

and

location

and

the

majority

of

the

community

never

participates

in

the

value

it

generates.

6. Revenue Gap
With hundreds of thousands of annual visitors and a globally recognized coastal identity, the Art Center

should

at

minimum

break

even

and

ideally

generate

net

revenue.

Comparable

facilities

routinely

produce

$200,000

–

$600,000+

in

direct

annual

revenue

(and

in

stronger

cases

millions)

through

commissions,

rentals,

events,

and

retail.

Instead, Huntington Beach is subsidizing the operation to the tune of $421,000 – $437,000 (this number

not

including

maintenance

or

utilities

cost)

per

year

with

virtually

no

return.

This

represents

a

clear

structural

failure

to

monetize

a

public

asset

tied

to

the

City’s

brand

and

to

compete

for

the

tourism

and

cultural

value

flowing

to

neighboring

cities’

festivals.

Conservative annual lost opportunity / subsidy reduction potential: $400,000 – $750,000 (through

commissions,

rentals,

retail/merch,

major-artist

exhibitions,

festival

collaboration,

and

broader

community

outreach

—

turning

the

current

subsidy

into

breakeven

or

positive

contribution

within

2–3

years).

7. Corrective Path
The Art Center is a meaningful civic asset. The challenge is making sure its value is more visible,

more

accessible,

and

more

fully

delivered

to

the

artists,

residents

and

visitors

it

should

be

serving.

That

begins

with

increasing

public

awareness,

improving

the

accessibility

and

visibility

of

programming,

and

more

intentionally

positioning

the

Center

as

a

community-serving

and

regionally

/

nationally

recognized

cultural

hub

rather

than

a

facility

known

only

to

a

narrow

audience.

The

goal

should

be

to

create

a

stronger

bridge

between

the

Art

Center,

local

artists,

residents,

and

tourists.

With the right structure and attention, the Art Center can at least break even on its operating costs

as

well

as

become

a

more

visible

source

of

community

pride,

a

stronger

platform

for

Huntington

Beach

artists,

and

a

more

valuable

cultural

asset

for

the

residents.

Immediate:
● Establish centralized oversight with clear revenue targets, performance metrics, and community-engagement

goals
● Conduct a full audit of operations, agreements, revenue opportunities, and current public awareness/perception
● Define brand standards for any future partnerships, programs or shows.

Mid-Term:
29 ● Implement a professional gallery/exhibition commission program and actively curate shows

featuring

nationally/internationally

renowned

artists

alongside

local

talent
● implement a consistent system for professionally photographing, cataloging, and archiving

every

exhibition,

ensuring

that

each

show

remains

accessible

online

as

a

lasting

public

resource

and

an

ongoing

source

of

visibility

for

participating

artists.
● Launch on-site and online retail/merchandise tied to the Huntington Beach brand ● Introduce and promote market-rate facility rentals and corporate/private event packages ● Develop sponsorship and Artist Council revenue-sharing framework ● Audit & Performance overhaul of how the HBAC oversight currently functions ● Begin collaboration with hotels and participation alongside Newport and Laguna festivals to

build

joint

community

experiences
● Mentorship programs and classes between renowned artists and local artists.

Long-Term:
● Build integrated creative and merchandising capacity (leveraging existing staff and internships)
● Establish performance metrics tied to direct revenue, subsidy reduction, artist elevation, tourism

impact,

and

community

utilization/awareness
● Direct all new Art Center revenue back into cultural programming and General Fund support

so

residents

finally

benefit

from

the

asset

they

fund

Sources
- City of Huntington Beach – General Fund Art Center Accounts (FY 24/25 Actuals & FY 25-26 Revised/YTD, provided March 2026)
- Laguna Art Museum – ProPublica Nonprofit Explorer (FY 2024 revenue $3.27M) - Long Beach Museum of Art Foundation – ProPublica / CauseIQ (FY 2024 revenue $2.17M) - Santa Monica FY 2025-27 Adopted Biennial Budget (Recreation & Arts Department context) - Industry benchmarks: Licensing International (LIMA) and American Alliance of Museums reports on gallery commission rates (20–50%)

and

cultural

facility

earned

revenue

models
- Laguna Beach Pageant of the Masters and Newport Beach arts festival public attendance/economic reports (2024–2025)

10. UNDERVALUED: FOURTH OF JULY CELEBRATION

1. Discovery
Huntington Beach has built one of the largest Independence Day celebrations in the country, consistently

drawing

300,000–500,000

attendees

and

earning

a

regional

television

partner

and

coverage

during

the

parade

event.

We’ve

done

an

excellent

job

attracting

that

scale

of

crowd

and

showcasing

our

patriotic,

family-friendly

Surf

City

identity.

What we haven’t done as well is capitalize on the opportunity this creates. The focus of this section

is

not

to

be

a

profit

generator

for

the

city,

but

to

secure

more

funding

that

elevates

the

parade’s

production

quality

and

delivers

a

richer,

more

memorable

experience

for

residents,

families,

and

visitors,

this

in

turn,

will

grow

our

earned

media,

and

event

prestige.

30 Right now the event lacks many of the high-impact elements that would make it truly special:
elaborate

floats,

celebrity

appearances,

large

helium

balloons,

live

drone

streaming

of

our

fireworks

show

for

those

who

can’t

attend

and

larger

community

activation

zones

and

other

events

that

could

bridge

the

morning

parade

and

evening

fireworks

into

a

full-day

celebration.

While

we

draw

the

crowds,

we

currently

lack

a

strong

third-party

voice,

sustained

social

media

presence,

and

meaningful

post-event

media

coverage

—

clear

evidence

that

we

are

missing

the

kind

of

engaging,

memorable

moments

that

people

naturally

want

to

share

and

talk

about

long

after

the

day

ends.

National brands with patriotic, family-oriented values cannot replicate access to our unique audience

size

and

demographic.

With

a

professional

sponsorship

approach,

we

could

partner

with

them

to

fund

those

missing

pieces

and

turn

the

parade

into

something

even

more

extraordinary

for

the

entire

community.

2. Current Structure
The parade is organized primarily through a contract event production with limited City oversight.

Sponsorship

packages

exist

(tiers

from

$1,000

to

$6,000+

for

banners,

bleachers,

announcing,

etc.),

but

there

is

no

evidence

of

a

dedicated

sponsorship

sales

team,

no

professional

outreach

to

large

national

brands,

and

no

strategy

for

premium

corporate

partnerships

or

branded

integrations.

The City provides the prime route, public safety, infrastructure, and brand prestige, while the contractor

manages

production.

There

is

no

centralized

city-led

effort

or

sales

team

to

maximize

sponsorship

revenue

for

better

floats,

helium

balloons,

staging,

or

other

elements

that

enhance

family

appeal

and

overall

quality.

3. Financial Data (Indirect Impact)
Direct City revenue from the parade remains minimal, with the event relying almost entirely on private

fundraising

rather

than

taxpayer

dollars.

Revenue

streams

include

sponsorships,

parade

entry

fees

(e.g.,

$1,200+

for

business/group

entries),

VIP/bleacher

tickets,

general

donations,

and

ancillary

on-site

sales—all

managed

through

the

professional

contractor,

PSQ

Productions

(hired

under

a

multi-year

Professional

Services

Contract

approved

by

the

City

Council

in

2024).

The contractor reports an annual production budget need of approximately $500,000+ , covering high-cost

items

like

the

fireworks

display

over

the

ocean

(a

major

expense),

parade

logistics

(barricades,

sound

systems,

staging,

insurance,

permits),

the

Surf

City

5K,

marketing

and

earned

media

(including

TV

coverage

on

KABC),

entertainment,

safety,

cleanup,

and

more.

The

City

contributes

in-kind

support

(police/fire/public

works

overtime,

permits),

but

the

bulk

is

privately

raised.

While PSQ Productions provides professional management to handle the event's massive scale the

dollars—or

lack

thereof—highlight

a

clear

shortfall

in

sales

and

sponsorship

pursuit
.

31 Despite all of the high-value promotional opportunities and a dedicated sponsorship contact/channel,

insufficient

or

inconsistent

sponsorship

and

donation

revenue

persists
—suggesting

a

lack

of

proactive,

high-effort

sales

outreach

(e.g.,

targeted

corporate

pitches,

leveraging

attendee

demographics

for

premium

activations,

or

expanding

beyond

basic

tiers).

This

leaves

the

city

forcing

compromises

on

production

quality—such

as

smaller-scale

fireworks,

fewer

high-impact

entries,

reduced

media,

or

limited

"wow

factor"

elements—which

diminishes

long-term

event

prestige,

community

excitement,

and

growth

potential.

The true return is indirect: earned media amplification, boosted family tourism, and reinforced brand

value

for

Huntington

Beach.

However,

with

stronger,

more

aggressive

sponsorship

sales

aligned

to

the

event's

unmatched

assets,

revenue

could

more

reliably

meet

or

exceed

needs—unlocking

higher

production

standards,

greater

sustainability

under

professional

management,

and

even

expanded

programming

without

relying

so

heavily

on

donations

or

cutting

corners.

4. Benchmark Comparison
Comparable large-scale parades and events treat sponsorship as a professional revenue engine

to

fund

premium

production

and

visibility.

● Rose Parade (Pasadena) generates $1M–$5M+ in direct sponsorships to support elaborate

floats

and

broadcast

quality.
● Regional events like the Surf City Marathon (Huntington Beach, ~18,000–22,000 participants)

secure

a

title

sponsor

that

brings

in

over

$200,000

alone,

funding

a

beautiful,

high-quality

event

despite

much

smaller

attendance.
● Brands like Carnival Cruiseline regularly commit $100,000+ just to sponsor the fireworks portion

of

San

Diego's

Big

Bay

Boom

4th

of

July

celebration.

These examples show that even smaller-scale events monetize sponsorships effectively through

professional

sales.

Huntington

Beach’s

parade

—

with

15–25x

the

crowd

and

televised

exposure

—

severely

under-prices

and

under-sells

its

opportunity.

5. Structural Gaps
The current model creates clear vulnerabilities:
● No dedicated sponsorship sales team or professional outreach to large national brands, resulting

in

low

pricing

and

limited

premium

partnerships
● Sponsorship tiers capped at $6,000 despite massive attendance and TV coverage — far below

market

rates

for

comparable

visibility
● Insufficient revenue to fund high-quality production (e.g., elaborate floats, helium balloons,

professional

staging),

lowering

appeal

and

reducing

overall

impact
● Missed opportunities for premium branding, corporate integrations, or merchandise tie-ins

that

could

amplify

earned

media

and

third-party

voice

32 ● No formal collaboration with hotels, tourism partners, or national brands to package experiences

around

the

event
● Limited City oversight or strategy to maximize sponsorship revenue while keeping the parade

free

and

community-focused

These gaps mean the parade under-delivers on production quality and brand amplification despite

its

massive

scale.

Missed Merchandising Opportunity – Americas 250
Huntington Beach’s three-day Fourth of July celebration creates a massive short-term captive audience

—

especially

with

America’s

250th

birthday

in

2026

driving

huge

demand

for

patriotic

souvenirs

and

commemorative

items.

A third-party deal with a local surf shop currently gives them 70% of official parade merchandise sales,

leaving

only

30%

for

parade

organizers.

There

is

no

valid

reason

to

hand

the

majority

of

this

one-weekend

windfall

to

an

outside

entity

when

the

crowd,

the

event,

and

the

historic

milestone

belong

to

Huntington

Beach

residents

and

taxpayers.

A city-controlled merchandising program — on-site booths, pre-sale, limited-edition 250th anniversary

t-shirts,

hats,

flags,

beach

towels,

and

collectibles

—

could

realistically

generate

$250,000

or

more

in

revenue

over

the

three-day

weekend

(conservative

estimate

based

on

high-attendance

holiday

event

benchmarks

and

the

expected

semiquincentennial

surge).

Missed Opportunity: America 250 Exhibition at the Huntington Beach Art Center With America’s 250th birthday this year, Huntington Beach has a prime chance to host a highly curated

“Americana”

gallery

exhibition

at

the

Art

Center

—

featuring

patriotic

themes,

historical

reinterpretations,

Veteran

artists

and

works

from

both

established

and

emerging

artists

that

celebrate

our

nation’s

journey.

This

show

timed

to

coincide

with

the

Fourth

of

July

weekend

could

draw

significant

regional

and

national

tourism

and

media.

This would create a major cultural draw, generate earned media, boost third-party voice, and position

the

HBAC

as

a

meaningful

tourism

destination

in

the

city.

It

could

also

produce

direct

revenue

through

commissions

on

featured

works,

and

limited-edition

prints/merchandise

—

all

while

elevating

the

facility’s

national

recognition

and

giving

local

artists

exposure

alongside

bigger

names.

Instead, the opportunity remains untapped, leaving the HBAC disconnected from one of the most

significant

cultural

moments

of

the

century

and

missing

both

tourism

and

prestige

gains

that

neighboring

cities

would

aggressively

pursue.

6. Revenue Gap
33 Our Independence day celebration attracts 300,000–500,000 attendees and significant TV coverage,

yet

sponsorship

revenue

remains

low

due

to

under-pricing

and

lack

of

professional

sales.

Comparable

events

(e.g.,

Surf

City

Marathon

with

~22,000

participants

securing

>$200K

from

a

single

title

sponsor)

demonstrate

that

a

dedicated

sales

approach

can

generate

substantial

funding

for

quality.

Huntington Beach struggles to cover enhanced production costs, limiting floats, helium, and other

family-friendly

elements.

Conservative annual lost sponsorship opportunity: $200,000 – $1,000,000 (through higher-tier

pricing,

national

brand

partnerships,

and

premium

integrations

—

enough

to

dramatically

improve

parade

quality,

increase

earned

media

value,

and

strengthen

community

pride

without

charging

admission).

7. Corrective Path
Immediate:
● Establish more integrated City oversight for creative,event functions and sponsorship strategy

with

clear

revenue

and

production-quality

targets
● Conduct a full review of current sponsorship agreements, pricing, and production costs ● Define unified premium sponsorship guidelines tied to the Huntington Beach brand Mid-Term:
● Launch a professional sponsorship sales effort (dedicated team or contractor) targeting national

brands

for

higher-tier

packages

(leveraging

televised

exposure

and

crowd

size)
● Introduce premium branding opportunities (e.g., title sponsorships, branded floats, helium

integrations)

to

fund

production

upgrades
● Strengthen coordination with hotels and tourism partners for packaged family experiences
● Develop proactive media outreach to boost national coverage and third-party amplification

Long-Term:
● Expend Event & Celebrity Activations ● Build professional sponsorship capacity (leveraging existing staff and internships) ● Establish performance metrics tied to sponsorship revenue, production quality, earned media

value,

and

tourism

lift
● Direct all new sponsorship revenue back into parade production, public safety, and community

programs

so

residents

benefit

from

a

higher-quality

event

Sources
● City-provided parade sponsorship and cost estimates (internal documents, 2024–2025) ● Public attendance estimates and economic impact reports for Huntington Beach 4th of July Parade (local media and tourism authority data, 2023–2025) ● Surf City Marathon attendance and sponsorship reports (Running USA, local news, 2025–2026: ~18,000–22,000 participants; title sponsor >$200K) ● Macy’s Thanksgiving Day Parade sponsorship revenue benchmarks (Licensing International and event industry reports) 34 ● Rose Parade and regional 4th of July event financial summaries (Pasadena Tournament of Roses, coastal city festival reports) ● Laguna Beach, Newport Beach, Long Beach 4th of July event public budgets and sponsorship data (2024–2025)

11. Overburdened & Reactive
In many areas, Huntington Beach operates in a reactive mode rather than a proactive one, in part,

because

our

creative

staff

is

severely

overburdened.

Creative

teams

across

departments

are

stretched

thin

or

don’t

exist,

responding

to

immediate

demands

instead

of

actively

identifying

and

pursuing

high-value

opportunities.

Without

dedicated

creative

leadership,

brand

infrastructure,

and

modern

systems

to

coordinate

efforts,

the

City

lacks

the

capacity

to

bridge

departments,

meaningfully

collaborate

with

key

stakeholders

across

the

city,

or

drive

strategic

initiatives

that

turn

our

Surf

City

identity

into

real

economic

and

community

value.

All the issues we’ve examined — merchandising, film permitting, the Art Center, the Fourth of July

parade,

and

others

—

may

seem

separate,

but

they

are

deeply

symbiotic.

Together

they

form

a

powerful

ecosystem:

better

brand

management

fuels

stronger

tourism,

stronger

events

drive

higher

merchandising

and

sponsorship

revenue,

improved

cultural

assets

elevate

third-party

voice

and

earned

media,

and

proactive

collaboration

across

these

areas

creates

richer

community

experiences

while

generating

sustainable

returns.

Growth

doesn’t

happen

through

reactive

fixes

—

it

comes

from

intentional

communication,

coordination,

and

creative

direction

focused

on

harnessing

these

interconnected

opportunities.

We’ve barely scratched the surface of identifying opportunities with just a few short weeks of research.

The

potential

we’ve

uncovered

so

far

is

only

the

beginning

—

there

are

likely

dozens

more

levers

waiting

to

be

pulled.

These

opportunities

aren’t

just

about

revenue;

they

can

generate

funding

to

help

ease

the

burden

on

our

overburdened

staff,

allowing

them

to

shift

from

constant

firefighting

to

strategic,

proactive

work

that

benefits

the

entire

community.

Our brand is one of the City’s most valuable and overlooked assets: globally recognized, built over

generations

by

residents,

and

capable

of

delivering

millions

in

revenue

and

enhanced

quality

of

life

if

managed

proactively.

Until we address staff overburdening, invest in creative leadership, and build the infrastructure and

systems

needed

to

operate

strategically,

we

will

continue

missing

significant

revenue,

tourism

lift,

and

community

value.

Our brand deserves proactive care — not just reactive maintenance.

12. MISSED OPPORTUNITIES - CIVIC PATHWAYS
35 During our research we noticed a lack of internship programs throughout many areas of the city.

A

developed

program

can

ease

burden

on

city

staff

and

provide

youth

with

meaningful

opportunities

to

help

shape

their

futures.

From Volunteering to Viable Futures — Building Local Talent That Stays Huntington Beach is rich in talent, pride, and civic culture — but we are losing our youth to other cities.

Not

because

they

don’t

love

this

place,

but

because

we

haven’t

given

them

a

clear,

visible

path

to

build

a

future

here.

We already run some of the best youth programs in the country: the world-class Junior Lifeguard

program

builds

discipline,

leadership,

and

physical

excellence;

the

Police

Explorers

program

delivers

real

exposure

to

public

safety

and

civic

responsibility.

These

prove

Huntington

Beach

knows

how

to

create

elite,

structured

opportunities

for

young

people.

The problem is scope: these programs are exceptional but narrow — focused on specific careers

and

not

available

to

every

student.

Broader

volunteer

opportunities

across

departments

are

valuable,

but

they

are

mostly

adult-oriented,

short-term,

service-based,

and

not

tied

to

skill-building,

certifications,

or

employment

pipelines.

They

answer

“How

can

I

help?”

—

not

“What

can

I

become

here?”

The Gap
Huntington Beach currently lacks:
● A city-wide youth career pipeline ● Internships embedded in departments ● Clear pathways from high school → training → local employment or industry careers As a result:
● Our most capable students leave for cities with better opportunities ● Trades, creative fields, and technical roles struggle to recruit locally ● Civic careers remain invisible to the next generation The Solution: Civic Pathways Initiative
A structured, city-wide internship and apprenticeship system for high-school students — paid and

non-paid

—

spanning

every

department

and

industry:

libraries,

parks,

media,

design,

public

works,

skilled

trades,

administration,

and

more.

This

complements

(does

not

replace)

existing

volunteer,

Junior

Lifeguard,

and

Police

Explorers

programs

—

it’s

the

natural

evolution.

Program Structure
● Tier 1: Civic Exploration (Ages 15–16) — Short rotations (6–8 weeks) for discovery and

exposure

36 ● Tier 2: Civic Internships (Ages 16–18) — Non-paid, semester/summer programs/roles with

real

deliverables

and

skill-building
● Tier 3: Civic Apprenticeships (18+) — Direct workforce tracks with unions, contractors, and

priority

city

hiring

Department-Specific Pathways (Examples)
● Library & Cultural Services → Digital archiving, event programming, community storytelling
● Parks, Recreation & Beaches → Environmental stewardship, facilities operations ● Media, Film & Communications → Video production, social media, event documentation

(major

strategic

advantage

for

in-house

capacity)
● Design & Creative Services → Graphic design, branding support ● Public Works & Skilled Trades → Electrical/plumbing/HVAC shadowing, safety certifications,

union

pipelines
● City Administration → Policy research, budgeting, operations Integration
● Partner with HB Union High School District for Career Technical Education alignment, work-study

credit,

and

merit-based

applications
● Each participant gets a mentor, clear goals, evaluations, work samples, certifications, and

recommendation

letters

Funding & Sustainability
Low-risk model:
● Workforce development grants ● Business/union partnerships ● Long-term savings from reduced outsourcing, faster recruitment, and local talent retention

Why This Matters
This initiative:
● Keeps talent local and builds generational ownership ● Strengthens the workforce across departments ● Creates debt-free career paths in high-demand fields ● Turns youth engagement into long-term civic and economic value The city already knows how to run elite youth programs — They’ve proven it on our beaches and

in

public

safety.

Now

it’s

time

to

bring

that

same

excellence

to

libraries,

trades,

media,

design,

and

civic

leadership.

When

young

people

can

see

a

real

future

here,

they’ll

stop

looking

elsewhere.

37 Other cities recruit talent. Huntington Beach can grow it — and keep it.

MOVING FORWARD
What comes next is an opportunity to fix broken systems and rebuild the city’s revenue engines.

The opportunities outlined in this report represent only the initial layer of what may be possible.

After

only

a

few

weeks

of

research,

this

research

has

already

identified

several

areas

where

improved

coordination,

modernized

agreements,

and

stronger

infrastructure

could

generate

millions

in

additional

value

while

improving

the

experience

of

residents,

visitors,

and

businesses

alike.

There are likely many more opportunities still waiting to be uncovered.

With the right systems in place — and with the collaboration of City leadership, staff, community stakeholders,

and

industry

partners

—

Huntington

Beach

has

the

potential

not

only

to

protect

its

identity,

but

to

turn

that

identity

into

a

powerful

engine

for

sustainable

economic

growth,

cultural

relevance,

and

community

pride.

The goal moving forward is not simply to identify problems, but to help build the infrastructure, partnerships,

and

institutional

knowledge

that

allow

the

city

to

operate

independently,

confidently,

and

strategically

in

managing

the

Surf

City

brand.

Report Basis and Limitations This report reflects the good-faith analysis, observations, and opinions of Wolffhaus based on the information available

at

the

time

of

review,

including

public

records,

materials

provided,

interviews,

and

direct

observations.

Any

evaluative

statements,

findings,

or

conclusions

are

presented

as

professional

opinions

based

on

that

information

and

are

not

intended

as

allegations

of

unlawful

conduct.

This

report

is

intended

to

support

operational,

policy,

and

strategic

review,

and

its

conclusions

may

change

if

additional

information

becomes

available.

38

← All documents from this meeting