MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LAGUNA BEACH AND
LAGUNA CANYON FOUNDATION FOR THE ADMINISTRATION OF MITIGATION FUNDS
FOR CONSERVATION SERVICES
This Memorandum of Understanding ("MOU") is made and entered into by and between the City of Laguna Beach, a California municipal corporation ("City") and the Laguna Canyon Foundation, a nonprofit 501(c)(3) organization (“LCF”) effective ___________ ___, 2025. The City and LCF may hereinafter be referred to individually as a "Party" or collectively as the "Parties."
I. Purpose
The purpose of this MOU is to establish the terms and understanding between the City and LCF regarding the donation of funds from the City to LCF. Specifically, the in-lieu fee of $250,000, plus interest, that was deposited with the City pursuant to the conditions of Coastal Development Permit number A-5- LGB-14-0034 ("Permit") for low-cost visitor serving amenities in the Southern California coastal zone jurisdiction.
II. Background
a. LCF is dedicated to the conservation and ongoing protection of the 22,000- acre South Coast Wilderness, which includes coastal wilderness and open space areas in the City of Laguna Beach, Aliso and Wood Canyons Wilderness Park (OC Parks), Laguna Coast Wilderness Park (OC Parks), City of Irvine Open Space, and Crystal Cove State Park.
b. On January 8, 2015, the California Coastal Commission (“CCC”) approved Coastal Development Permit Number A-5- LGB-14-0034 ("Permit"), subject to conditions, pursuant to the California Coastal Act. The Permit authorized the expansion and remodel of the former 64-room Aliso Creek Inn hotel, restaurant, banquet and golf course facility at 31106 South Coast Highway in the City of Laguna Beach, Orange County, California ("Ranch at Laguna Beach"). On April 15, 2015, the CCC adopted revised findings in support of the CCC's January 8, 2015, approval. One of the conditions the CCC imposed on the Permit required the applicant to, in lieu of providing affordable accommodation on the site, deposit $250,000 ("In-Lieu Fee") into an interest-bearing account established and managed by either the City, Orange County Parks, the California Coastal Conservancy, the California Department of Parks and Recreation, or a similar entity. This amount was deposited with the City.
c. The stated purpose of the In-Lieu Fee was to plan and permit a public pedestrian and bicycle trail that would connect Aliso and Woods Canyons Wilderness Park to Aliso Beach ("Trail to the Sea Segment"), including identification of a trail alignment. However, the Permit did account for Attachment 1
4 alternative mitigation measures subject to approval of the Executive Director of the CCC. Further, the Permit states that if any of the In-Lieu Fee remains ten years after deposited, the funds shall be donated to, among other options, a non-profit like LCF for a project that makes a substantial contribution to the availability of lower cost visitor recreational facilities in Lagune Beach.
d. On September 22, 2015, the City accepted deposit of the In-Lieu Fee into a City account, which as of August 8, 2025, contains a balance of $ [TO INSERT].
e. To date, no viable Trail to the Sea Segment has been identified or constructed. As noted above, the remaining balance of the In-Lieu Fee, if any portion of the fee remains ten years after it is deposited, shall be donated to one or more of the State Park units or non-profit entities providing lower cost visitor amenities in a Southern California coastal zone jurisdiction or other organization acceptable to the Executive Director of the CCC. f. The City and LCF desire to enter into this MOU for the purpose of directing the remaining In-Lieu Fee following the ten-year period to LCF, a non-profit entity providing free visitor amenities to the general public. LCF intends to use the In-Lieu Fee for the purposes consistent with CDP No. A-5-LGB-14- 0034. Potential uses include, but are not limit to, providing free guided interpretive hikes and interpretive programs for the general public; completing wilderness trail projects to improve trail user safety and experiences; implementing habitat enhancement and restoration projects to improve conservation values; and/or providing free outdoor educational experiences for school children and the general public. This is nonexhaustive list and the Parties acknowledge that any other use of the funds as agreed to with the CCC shall be acceptable.
III. TERMS OF UNDERSTANDING
a. Donation of In-Lieu Fee. The City desires to donate all funds remaining in the In-Lieu Fee to LCF. The City agrees to act in good faith and refrain from engaging with other non-profits or other entities that are eligible for the InLieu Fee and to work in conjunction with LCF to effectuate the donation. b. LCF Responsibilities. LCF desires to be the recipient of all the funds remaining in the In-Lieu Fee account. LCF agrees to act reasonably and expediently in to execute all required documents and get any required approvals to accept the donation.
c. Parties’ Responsibilities. The City and LCF shall work collaboratively 5 d. Challenge to Donation. In the event any third-party challenges this donation, the Parties shall work collaboratively to respond to any challenge.
LCF acknowledges that none of the donated In-Lieu Fee shall be spent in the event of a challenge except by written approval by the City.
IV. Duration and Termination
a. This MOU shall remain in effect until the In-Lieu Fee is transferred to LCF or until either Party provides 30 days’ written notice of termination, which can be provided by either Party at its sole discretion.
V. General Provision
a. Non-Binding Agreement. This MOU is a statement of mutual understanding and does not create legally binding obligations.
b. Modification. This MOU may be modified by written agreement of both parties.
VI. Signatures and Effective Date
The Parties hereto have entered into this MOU as evidenced by their signatures below. This MOU is effective upon the date of the second agency signature.
CITY OF LAGUNA BEACH
By: __________________________
[City Manager]
Date: _________________________
LAGUNA CANYON FOUNDATION
By: __________________________
[Executive Director]
Date: _________________________
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