City Council
Report
City Council Meeting: June 23, 2026
Agenda Item: 4.H
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To: Mayor and City Council
From: Aileen Reynolds, Director, Housing and Human Services Department Subject: Award Agreement to Golden State Certified Development Corporation for Operation of the Virginia Avenue Park Community Kitchen Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Award and authorize the City Manager to execute an agreement with Golden State Certified Development Corporation for operation of the Virginia Avenue Park Community Kitchen for the Housing and Human Services Department. This recommended award is made as an exception to the competitive bidding process, pursuant to SMMC Section 2.24.250(b) and is for a total amount not to exceed $825,000, with future year funding contingent on Council budget approval.
Executive Summary
The City of Santa Monica (City) Virginia Avenue Park (VAP) Community Kitchen was first recommended by local groups and residents with deep ties to the park in 2019 as part of the Pico Wellbeing Project, with the City Council identifying small business incubation as a key economic development priority. This commercial kitchen aims to address multiple community needs, including supporting local entrepreneurs in the food service industry, and creating pathways to economic independence.
With the VAP Community Kitchen set to open in late summer 2026, staff is seeking to execute an agreement with an experienced vendor to provide unique, comprehensive administration and oversight of kitchen operations, including kitchen rentals, business 2 of 5
incubator services, and entrepreneurship education, ultimately serving as an economic driver for the Pico Neighborhood. The vendor will oversee two primary functions of the kitchen: 1) engage cohorts of residents in a 12-week program that will train enrollees in cooking skills, food safety and preparation, front and back-of-house service, business and entrepreneurial fundamentals, resume building and job placement support, provide access to microloans, permits and certificates, and individualized business plans, and 2) manage a schedule of renting the kitchen at a tiered rate for residents and nonresidents.
Staff recommends that City Council authorize the City Manager to execute an agreement with Golden State Certified Development Corporation (CDC) to operate the VAP Community Kitchen. This recommended award is made as an exception to the competitive bidding process via Procurement Manager approved ECB #467. The proposed agreement is for an initial term of one year at a cost of $275,000 with two oneyear options to renew, for a total amount not to exceed $825,000 over three years.
Discussion
Virginia Avenue Park (VAP) is one of the City’s most valued community assets, serving as a neighborhood hub where community members engage in programming, access social services, celebrate cultures, and maintain the vibrant spirit of the Pico Neighborhood. It will also be the location of the highly anticipated Community Kitchen, which will support residents facing economic barriers to starting and sustaining a small food-related business. Such barriers often include lack of key resources, personal networks/mentors, financial business literacy, and access to capital.
The idea of the Community Kitchen emerged in 2019 as part of the City’s Pico Wellbeing Project. In 2020, to address impacts of the COVID-19 pandemic and the resulting economic crisis, the City created the Santa Monica Economic Recovery Task Force (ERTF) to focus on supporting local economic recovery efforts. The ERTF identified the VAP Community Kitchen as a priority and awarded $100,000 in seed funding for the project design. The construction costs of the kitchen and necessary repairs to the Thelma Terry building were funded through allocation of a portion of the 3 of 5
City’s Community Development Block Grant (CDBG) award. Construction of the kitchen is set to be completed by July 2026.
In 2021, Request for Proposal (RFP) #283 was issued for a VAP kitchen operator, and despite being advertised and formally solicited, the RFP did not produce any responsive applicants. Following the unsuccessful RFP, City staff conducted extensive research on potential partners, which led to the discovery of Golden State Certified Development Corporation. Golden State’s mission is to promote the general welfare, wealth and prosperity of the people residing or operating businesses within the state of California, focusing primarily on promoting job and entrepreneur creation in underserved and credit-challenged communities. With support from its bank partners, Golden State has helped fund over 306 loans totaling $63.7 million with credit enhancement guarantees, resulting in the creation and retention of over 1,500 jobs throughout California. As a Certified Development Corporation under the authority of the U.S. Small Business Administration’s 504 loan program, Golden State CDC has leveraged over $102 million in private investment into commercial real estate purchases for small business owners.
Additionally, Golden State CDC operates an existing direct small business loan portfolio. VAP Kitchen graduates will be guaranteed a microloan via Golden State to help secure essential business items such as permits and licenses. Unlike financial institutions, Golden State does not profit from these loans.
Vendor/Consultant Selection
Exception to Competitive Bidding
Staff recommends Golden State Certified Development Corporation to operate the VAP Community Kitchen as an exception to competitive bidding per the Procurement Manager approved ECB# 467 pursuant to Muni Code 2.24.250 (b). b. Competition does not reasonably exist because only one vendor possesses the unique ability or capability to meet the particular requirements of the solicitation, such as when a good or service is copyrighted, patented, or otherwise only available from one license holder, including, for example, proprietary goods of original equipment manufacturers and/or their authorized exclusive distributors.
Environmental Review
The professional services agreement is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, which states that “CEQA does not apply, 4 of 5
where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment”. The agreement will provide operational and programmatic services at VAP. Therefore, it can be seen with certainty that the agreement would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to award an agreement with Golden State Certified Development Corporation to operate the VAP Community Kitchen. First year funding is available in the FY 2025-26 HHS General Fund budget.
Staff has also submitted a Congressionally Directed Spending request for $500,000 to fund kitchen operations in years 2 and 3. Staff will return to Council with any necessary budget appropriations in the future, which may include a grant award, revenue adjustments, and/or potential General Fund funding gaps.
All future year funding is contingent on Council budget approval.
Agreement Request
Funding
Source
FY 2025-26
Request
Amount
Future Year
Modified Request
Amount
Department
Account #
Total Revised
Agreement
Amount
General Fund $188,733 $136,267 01420006.556000 $325,000 Miscellaneous
Grants Fund $0 $500,000 204200XX.XXXXXX $500,000
Total $188,733 $636,267 $825,000
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Prepared By: Natasha Kingscote, Human Services Manager
Approved Forwarded to Council
Attachments:
A. Levine Act - Golden State CDC
B. Oaks - Golden State CDC
C. PowerPoint Presentation