TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: Martha Coleman, Management Analyst - Economic Development
SUBJECT:
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Approval of the First Amendment of the Memorandum of Understanding with Murrieta Market Nights, Inc., a 150-Foot Event Expansion, and Purchase of Necessary Equipment
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ABSTRACT
Murrieta Market Nights, Inc. (MMNI) has become a highly successful and well-attended community event in Downtown Murrieta, attracting approximately 7,000 attendees per event and an estimated 154,000 annually. Due to its success and increasing vendor participation, the current event footprint has reached capacity. This event takes place on City property pursuant to an agreement between the City and MMNI, the “Amended and Restated 2024 Memorandum of Understanding with Murrieta Market Nights, Inc. Regarding the Implementation of Murrieta Market Nights” (MOU).
To accommodate growing demand, MMNI is requesting a 150-foot expansion of the existing event area. Outreach in support of this expansion has been completed, including direct engagement with downtown stakeholders and an Open House held on March 23, 2026. Surveys collected from organizers and promoters of Market Nights indicate strong support for expansion to allow additional vendors, improved circulation, and to enhance visitor experience.
The proposed First Amendment to the MOU maintains operational requirements while revising the financial structure to support long-term sustainability and growth of the event and extends the term of the MOU.
RECOMMENDATION
recommendation
Approve the First Amendment to the amended and restated 2024 Memorandum of Understanding with Murrieta Market Nights, Inc., regarding the implementation of Murrieta Market Nights;
Authorize the City Manager to execute the First Amendment to the MOU and subsequent extensions as set forth in the First Amendment to the MOU;
Amend the FY 2025/26 Operating Budget using General Fund Unassigned Fund Balance to establish an appropriation of $133,917.25; and
Approve the purchase of eight (8) new barriers and one new trailer from Meridian Rapid Defense Group Sales, LLC., in the amount of $133,917.25.
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PRIOR ACTION/VOTE
In 2020, the City entered into an agreement with MMNI and agreed to multiple extensions through 2022.
On December 7, 2022, the City entered into an Amended and Restated Memorandum of Understanding between the City of Murrieta and Murrieta Market Nights, Inc., Regarding the Implementation of Murrieta Market Nights under the authority of the City Manager.
On March 19, 2024, the City entered into the current MOU with MMNI.
CITY COUNCIL GOAL
Aggressively pursue economic development.
DISCUSSION
History
In 2022, the City of Murrieta entered into an MOU with Murrieta Market Nights, Inc. to establish an ongoing community street fair event in Downtown Murrieta. Murrieta Market Nights, held on the first and third Thursdays of each month, may be canceled due to holidays or adverse weather.
The event takes place primarily within the public right-of-way on Washington Avenue between B Street and C Street, including portions of Juniper Street. Since being established, Market Nights has grown significantly in popularity, vendor participation, and regional draw.
Due to its continued success and consistent vendor waitlists, the current footprint has reached operational capacity, prompting the request for a 150-foot expansion south on Washington Avenue, generally to the quarter-block between C Street and Ivy Street. (Attachment 1, Exhibit A1).
Analysis
Community & Economic Benefits
Community street fairs like Murrieta Market Nights serve as both economic development tools and community-building events. These events create a lively, walkable atmosphere featuring food vendors, artisans, local businesses, and live entertainment. Murrieta Market Nights supports:
• Increased foot traffic to Downtown businesses;
• Greater exposure for brick-and-mortar retailers and restaurants;
• Opportunities for small businesses and emerging entrepreneurs; and
• Enhanced community engagement and civic pride.
There is clear synergy between Market Nights, and the vision outlined in the Downtown Murrieta Specific Plan, which envisions Downtown as a vibrant cultural center and regional destination. The event directly supports goals of activating Washington Avenue as a “Main Street,” attracting families and visitors of all ages, and connecting civic, cultural, and commercial amenities.
Attendance & Economic Impact
Cell phone location data from 2022 indicated average attendance of approximately 7,000 people per event, totaling an estimated 154,000 visitors annually (based on 22 events). Attendance fluctuates based on weather conditions.
Downtown restaurant owners have reported noticeable increases in sales during Market Night events. Business outreach conducted by Economic Development staff reflects overall favorable feedback from downtown stakeholders.
If the City’s estimated annual support cost of approximately $219,567.04 is viewed as a customer acquisition cost for attracting 154,000 people Downtown, the cost per person is approximately $1.43. By comparison, retail industry standards often range from $10 to $50 per new customer acquisition. While not a direct comparison, this analysis supports the conclusion that Market Nights provides strong community and economic value.
Expansion Request (150 Feet)
Due to event success and consistent vendor demand, MMNI has requested a 150-foot expansion of the event footprint in the Washington Avenue public right-of-way, which would require the closure of C Street and expand a quarter-block south of C Street. Current space limitations restrict vendor participation and pedestrian circulation. Expansion would allow:
• Additional vendor capacity;
• Improved pedestrian flow;
• Enhanced public safety spacing; and
• Greater activation of Downtown.
Outreach in support of the expansion has been completed. An Open House was held on March 23, 2026, to gather community input. Surveys from event organizers and promoters indicated strong support for expansion to meet current demand and enhance long-term sustainability. Of the 46 completed surveys, 40 supported the expansion.
Additionally, to accommodate and demonstrate support for existing Downtown businesses within the Market Night closure area, the First Amendment will also provide brick-and-mortar businesses within the event area a right of first refusal for the MMNI vendor space immediately adjacent to its business frontage. The process to exercise the option is described in the First Amendment.
The proposed expansion will require coordinated logistical planning to ensure public safety and efficient operations throughout the event area. This includes the deployment of staff resources for event setup, monitoring, and breakdown, as well as coordination across relevant City departments. Temporary traffic control measures will also be implemented, including the placement of barricades, signage, and designated access points to manage vehicle and pedestrian flow. Staff will work closely with public safety to ensure emergency access is maintained at all times, and that all closures and detours are communicated effectively to the public in advance. These logistical components are essential to supporting a safe, well-organized, and successful expansion of the event footprint.
Term
Unless extended, the current MOU expires on November 11, 2026. The First Amendment to the MOU (Attachment 1 extends the term for a period of 24 months, ending November 10, 2028, and authorizes a further extension of the term for up to two (2) one-year extensions, each at the City’s option.
Key Considerations
Key considerations related to the recommended action include:
• Market Nights generates significant community engagement and regional draw.
• The event has reached spatial capacity due to high demand.
• The proposed expansion aligns with Downtown activation goals.
• The required street closures do impact traffic circulation and access.
• Temporary vendors may compete with brick-and-mortar businesses.
• Noise and parking impacts must continue to be managed.
• The City currently incurs approximately $9,980.32 in direct costs per event, primarily for staffing to set-up/break down the event and security. This cost has been a recurring cost and has increased over time due to a more in-depth cost analysis completed and as required per the City’s labor agreements.
• Purchase of eight (8) new barriers and one new trailer by the Municipal Services Department for a total of $133,917.25, which can be utilized for this and other events, such as the Murrieta Birthday Bash and the Father’s Day Car Show. This is a cost that would need to be incurred regardless of the proposed expansion. This includes six (6) new barriers for the expansion of Market Nights and two (2) new barriers for proposed uniform traffic control standards.
Pros/Cons
Pros
• Strengthens Downtown economic activity.
• Encourages entrepreneurship.
• Builds community identity and civic pride.
• Aligns with Downtown planning goals.
• Demonstrates strong attendance and regional appeal.
• Expansion addresses demonstrated demand.
Cons
• Traffic closures and detours.
• Potential noise impacts on nearby properties.
• Temporary competition with established businesses.
• Annual City support staff cost of approximately $219,567.04, which includes the full cost of personnel as required per labor agreements.
Alternatives
1. Approve the First Amendment to the MOU without the expanded event area.
2. Decline to approve the First Amendment to the MOU.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
FISCAL IMPACT
The City previously incurred approximately $120,800 in direct staff support costs for Market Nights annually. However, that estimate was not based on an in-depth cost analysis. Staff completed an in-depth cost analysis, which includes direct, indirect, and ancillary costs. The total annual cost is approximately $219,567.04, reflecting the program's full cost, cost of living adjustments per the City’s labor agreements, and inflation.
Estimated ongoing costs include:
City Support Staff:
- Municipal Services, and two (2) Police officers' staff time
- Cost: $9,980.32 per event
One-Time Cost for Equipment Purchase:
- One-time purchase of eight (8) new barriers and one trailer
- Cost: $133,917.25
The total estimated cost per event is approximately $9,980.32, or $219,567.04 annually, based on 22 events per year. Staff’s analysis concludes that the community and economic benefits outweigh the annual direct support costs.
If approved, staff recommends an amendment to the Fiscal Year (FY) 2025/26 Operating Budget using General Fund Unassigned Fund Balance to establish an appropriation of $133,917.25 for the purchase of eight (8) new barriers and one (1) new trailer from Meridian Rapid Defense Group Sales, LLC, and approval of the purchase through a cooperative purchasing agreement in accordance with MCC 3.08.295.
ATTACHMENTS
ATT 1 - Market Nights MOU - Proposed First Amendment
ATT 2 - Meridian Rapid Defense Group Sales, LLC Quote
ATT 3 - Cooperative Purchasing Agreement