City Council
Report
City Council Meeting: September 8, 2026
Agenda Item: 4.L
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To: Mayor and City Council
From: Aileen Reynolds, Director, Housing and Human Services Department Subject: Authorization to Modify Agreement with 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;
2. Authorize the City Manager to execute a modified agreement in the amount of $385,000 with Golden State Certified Development Corporation for operation of the Virginia Avenue Park Community Kitchen for the Housing and Human Services Department, resulting in a new total amount not to exceed $1,155,000, with future year funding contingent on Council budget approval;
3. Authorize budget amendment as outlined in the Financial Impacts & Budget Actions section of this report. (requires 5 votes)
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. Council approved the award and execution of an agreement with Golden State Certified Development Corporation (CDC) on June 23, 2026 (Attachment A). This follow-up request modifies the budget and establishes that Golden State CDC is responsible for generating 2 of 5
$110,000 in annual kitchen rental revenue, in partial satisfaction of their annual $385,000 budget for operation and management of the facility.
Staff recommends that City Council authorize the City Manager to execute a modified agreement with Golden State CDC to operate the VAP Community Kitchen. This modified recommended award is made as an exception to the competitive bidding process via Acting Procurement Manager approved ECB #509. The modified agreement is for an initial term of one year at a cost of $385,000 with two one-year options to renew, for a total amount not to exceed $1,155,000 over three years.
Discussion
Virginia Avenue Park 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 is also the location of the highly anticipated and recently completed 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.
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 CDC. Golden State CDC’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 CDC 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 3 of 5
CDC operates an existing direct small business loan portfolio. VAP Kitchen graduates will be guaranteed a microloan via Golden State CDC to help secure essential business items such as permits and licenses. Unlike financial institutions, Golden State CDC does not profit from these loans, and no City funds will be used to finance said loans.
This request to execute a modified agreement revises the annual budget to $385,000 and the three-year not-to-exceed amount to $1,155,000. Golden State CDC will be responsible for generating $110,000 in annual revenue through rental of the kitchen as a partial offset of their annual budget. Should Golden State CDC fail to meet this revenue target, the City will not be responsible for any resulting gap (i.e., the City will provide $275,000 in annual funding and the remaining $110,000 will be provided if Golden State CDC generates that amount in rental revenue or will be adjusted accordingly).
Past Council Actions
Meeting Date Description
6/23/26
(Attachment A)
Council authorized initial agreement for Golden State CDC to operate the VAP Community Kitchen
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, 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 increase the amount of the agreement with Golden State CDC to operate the VAP Community 4 of 5
Kitchen. First year funding is available in the FY 2026-27 HHS General Fund budget and from projected kitchen rental revenue.
Golden State CDC will be responsible for generating $110,000 in annual revenue through rental of the kitchen as a partial offset of their annual budget. This will be paid directly to the City. Revenues collected up to $110,000 annually will be remitted to Golden State CDC and anything above that will be retained by the City.
Approval of the recommended action requires the following budget amendment:
FY 2026-27 Budget Amendment
Establish Revenue Budget Appropriate Funds
Department Account # Amount Department Account # Amount 01420002.414410 $110,000 01420005.550260 $110,000
Total $110,000 Total $110,000
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.
Modified Agreement Request
Funding
Source
Current
Authorized
Amount
FY 2026-27
Request
Amount
Future Year
Modified
Request
Amount Department Account #
Total
Revised
Agreement
Amount
General
Fund
$152,099 - - 01420006.556000 $152,099
$172,901 - - 01420006.556000.91928 $172,901
- $110,000 $220,000 01420005.550260 $330,000
Misc.
Grants
Fund
$500,000 - - 204200XX.XXXXXX $500,000
Total $825,000 $110,000 $220,000 $1,155,000
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Prepared By: Natasha Kingscote, Human Services Manager
Approved Forwarded to Council
Attachments:
A. Attachment A. Authorize Initial Agreement for Golden State CDC to Operate VAP Community Kitchen - Web Link
B. Oaks Initiative Form (Golden State CDC)
C. Levine Act Disclosure Form (Golden State CDC)