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Council to decide Tuesday whether to pick up tens of thousands in costs the Chamber of Commerce says it can no longer afford

Hermosa Beach's St. Patrick's Day Parade may not happen this year unless the city agrees to take over core costs the Chamber of Commerce says it can no longer sustain.

"Without meaningful cost-sharing from the City, the Foundation will be unable to continue serving as the producing entity for the Parade," Chamber President and CEO Michelle Crispin wrote in a January 12 letter to the Mayor and City Council.

The Chamber and its associated Foundation, which has produced the parade since 2010, is now asking the city to assume financial responsibility for security, barricades, insurance, and LA County Fire services. Without that support, the Foundation says it cannot justify producing an event that loses money year after year.

In January 2025, Crispin asked for a $15,000 city handout which was blocked by city council. In lieu, the Council offered the money in the form of an interest-free loan which was subsequently declined by the Chamber.

Hermosa Beach Chamber of Commerce CEO appearing before City Council last year to discuss the St. Patrick's Day Parade

For the parade to move forward in 2026, the Foundation is asking the city to pay for:

Private security and public safety staffing: $8,000
Street closure barriers: TBD (estimates range from $22,550 to $40,825 depending on route)
Insurance: $1,400
Fire Department: $900
All city-related permit and administrative fees

Total city contribution requested: approximately $33,000 to $51,000

Possible Strand Route proposed in order to reduce costs

Staff has presented several alternative routes that could significantly reduce barricade expenses:

The historic route (utilizing most of Pier Avenue and substantial surrounding street closures) would cost an estimated $35,075 to $40,825 for barricades and labor.

A Strand-based route—staff's recommendation—would cost $22,550 to $28,050. The parade would proceed down Pier Plaza and south along the Strand to 2nd Street. Staff favors this option because the Strand wall provides physical separation between spectators and participants, and fewer street closures mean fewer barricades.

Hermosa Avenue routes fall in between, ranging from $28,050 to $39,050 depending on staging area and endpoint.

Each alternative would require reducing the number of parade participants.

The Bigger Picture

The parade funding request comes amid broader financial challenges for the Chamber. The organization's 2024 tax return showed total a net loss of $125,250. It's understood that the 2025 loss was in excess of $100,000, and that Chamber cash reserves have become substantially depleted as they battle to recover their financial footing. Critics point to what they believe to be financial mismanagement, with large amounts of money having been spent on failed projects and excessive staff and administrative costs. There has been substantial turnover of board directors, and both the Chamber and its Foundation are understood to have experienced difficulty in filling key positions.

The city already subsidizes Chamber events substantially, with staff estimating the annual value of indirect cost waivers at approximately $350,000 across all events. The Chamber has already shed the New Year's Eve event on Pier Plaza, citing cost concerns.

The Chamber of Commerce has also asked the City to allow the return of the Labor Day Fiesta, which they decided to replace with a smaller 'Oktoberfest' event in recent years. In a letter to the City this month, Crispin stated :

"Oktoberfest has not performed: 37% of businesses reported no noticeable impact, and 21% said it had a negative one. Financially, the event declined from a near break-even model to a net loss of over $13,000 by 2025, confirming it is no longer sustainable for the Chamber."

Whether or not the City Council are prepared to bridge the financial gap with taxpayer funds remains to be seen. The St. Patrick's Day Parade is a well-loved local event, and it seems that few people would like to see it disappear. But questions are most certainly being asked about how the Chamber of Commerce has ended up in such a precarious position.