MEMORANDUM
Date: September 24, 2025
To: Laguna Beach City Council
Via: Dave Kiff, City Manager
From: Jeremy Frimond, Assistant City Manager
Louie Lacasella, Senior Management Analyst
cc: Matt Schnider, Community Development Director
Subject: Economic Development – Council Briefing Update Report Overview
This memo provides the City Council with a briefing on the progress of the City’s Economic Development Program, in alignment with the 2025 Key Initiative on Economic Development. A more comprehensive update is included as an attachment to this memo.
Key Initiative Alignment
• Supports Council Key Initiative No. 2 – Economic Development. • Focus on reducing vacancies and creating visible results in commercial districts.
Program Momentum
• Vacancy rate reduced from 7.1% to 6.2%.
• Mix of local, regional, and national tenants secured or in progress. • Downtown and Coast Highway corridors showing visible improvement.
Accomplishments
• Open for Business: Board & Brew, Chakra Shack, Slice Pizza, Golden Spoon, Piatti. • Coming Soon: Better Buzz, Porsche, Rainbow Cone, Nalu Poke, Truly Pizza, Surf Heritage Museum, Rivian.
• Policy Implementation: Incentive Policy applied (fee waiver of $3,289), Commercial Property Maintenance Ordinance enforced (multiple properties improved). • Process Improvements: Coordination with County Health Department to allow tenant improvements while permits are under review.
• Community Engagement: Workshop completed; resident survey launching October 2025. • Retail Leakage Report & HIP District Branding completed.
Strategic Tools in Place
• Retail Coach engaged; Phase One complete, targeted recruitment now underway. • Broker roundtable held; AI business analytics tool offered to local businesses.
Attachment 2
5 Economic Development – Council Briefing Update
• Outdoor dining program paused pending Downtown Landscape Feasibility Study (AB 413 alignment).
Next Steps
• Advance targeted recruitment strategy with Retail Coach. • Expand support for businesses through streamlined permitting. • Continue zoning/property maintenance enforcement.
• Return to Council with recommendations on the long-term outdoor dining/parklet program.
ATTACHMENTS
1. Economic Development Program Update: Progress and Next Steps September 2025 6 City of Laguna Beach
Economic Development
Program Update
Progress and Next Steps
In alignment with City Council 2025
Key Initiative No. 2 – Economic Development
Prepared for:
Laguna Beach City Council
Prepared by:
City Manager’s Office
September 2025
7 2025 Economic Development Program: Nine-Month Progress Report September 24, 2025
Report Overview
This report provides a comprehensive update on the City’s Economic Development Program in alignment with City Council 2025 Key Initiative No. 2 – Economic Development. It summarizes accomplishments during the first nine months of the program, highlights ongoing projects, and outlines next steps to continue reducing vacancies and strengthening Laguna Beach’s commercial vitality.
Introduction
In alignment with the City Council’s 2025 Key Initiative No. 2 – Economic Development, this memorandum provides an overview of the accomplishments, ongoing projects, and strategic advancements made during the first nine months of the City’s Economic Development Program.
The economic development team is off to a strong start. The corner of Ocean Avenue and Coast Highway, once marked by several vacant storefronts, is now more vibrant and active. Looking ahead to the end of 2025 and 2026, several visible projects are on track to open and further energize the commercial landscape in the City:
• The Surf Heritage Museum (former drug store, Ocean/ Broadway) • Two Truly Pizza locations (N. Coast Highway & Former Ti Amo) • Rivian delivery point of sale store (former dry cleaner, Ocean Ave.) • Better Buzz (former BJ’s Pizza, S. Coast Highway)
• A new Porsche electric vehicle showroom (Former Verizon store, Broadway and Forest) • A new poke restaurant and ice cream shop (former Rocky Mountain Chocolate Factory and adjacent vacant storefront, Coast Highway)
The mission of the Economic Development Program is to create visible results in the commercial areas by reducing vacancies and working with businesses to maintain active storefronts. While we are pleased to report progress toward this goal, the team is setting up a process to approach future opportunities strategically.
To this end, the City has engaged The Retail Coach to assist in actively recruiting quality businesses that align with Laguna Beach’s stewardship goals, resident’s preferences, and market conditions. Groundwork is underway, including community meetings and a forthcoming resident survey . At the same time, staff is facilitating introductions between property owners and the consultant team to build relationships that will support long-term recruitment success. The team acknowledges that Aliso Shopping Center is important to the community and are staying connected to the property representatives.
DISCUSSION
Below is a list of projects that the economic development team has assisted with to date. Including expediting review, technical assistance with permitting, and landlord/tenant negotiations:
8 2025 Economic Development Program: Nine-Month Progress Report September 24, 2025
Open for Business
• Board & Brew (188 S. Coast Hwy – former Wild Taco)
• The Chakra Shack (207 Ocean Ave – former Aero)
• Slice Pizza (477 Forest Ave – ownership change)
• Golden Spoon (30912 Coast Hwy)
• Piatti (222 Ocean Ave)
Coming Soon:
1. Better Buzz Coffee (280 S. Coast Hwy, former BJ’s Pizza) – Fall 2025
2. Porsche / AutoNation (480 Ocean Ave, former Forest & Ocean Gallery) – Fall 2025
3. Rainbow Cone (244 S. Coast Hwy) – Fall 2025
4. Nalu Poke Bowl (248 S Coast Hwy) – Fall 2025
5. Truly (Ti Amo) – Fall 2025/ Winter 2026 (Pending Health Department)
6. Truly Pizza (320 N. Coast Hwy) – Fall 2025/ Winter 2026 (Pending Health Department)
7. Surfing Heritage & Culture Center (239 Broadway, former Laguna Drug) – Fall 2025/Winter 2026
8. Rivian Point of Sale and Delivery Office Site (224/226 Ocean Dry Cleaner) – Winter 2026
9. Hotel Joaquin CUP Amendment – TBD
10. New Business (903 S. Coast Hwy, former Billabong) – TBD Program Development & Policy Implementation
• Incentive Policy Adoption & Implementation: City Council adopted the Economic Development Incentive Policy at its meeting on February 25, 2025, which authorizes financial incentives aimed at reducing commercial vacancies. o The policy was actively applied to support the relocation of The Chakra Shack to a previously vacant storefront at 207 Ocean Avenue, with a retroactive waiver of City fees totaling $3,289.
• Economic Development Team Formation: Established a cross-departmental team comprised of the Assistant City Manager, Senior Management Analyst in the City Manager’s Office, and Community Development staff to streamline support for new and existing businesses navigating the City’s permitting process. • Commercial Property Maintenance Ordinance Enforcement: Continue to implement the Commercial Property Maintenance Ordinance to improve commercial property upkeep, several success stories thus far include (888 Glenneyre Street, 244 Forest Avenue, 294 Forest Avenue, 304 Forest Avenue, 392 Ocean Avenue, 290 Forest Avenue, 381 Forest Avenue, etc.)
9 2025 Economic Development Program: Nine-Month Progress Report September 24, 2025
Retail Recruitment Efforts
• The Retail Coach – Targeted Business Recruitment:
o Engaged The Retail Coach to execute the the City’s retail attraction and retention strategy.
Phase One of the engagement—market analysis, strategy development, and preliminary recommendations—is complete, with targeted recruitment efforts now underway.
• Community Engagement:
o Hosted a community workshop to solicit resident input on types of businesses that should be recruited in town.
o An online survey will be launched shortly to further refine retail targets based on resident input. (October 2025)
Intergovernmental Coordination
• County Health Department Process Improvement:
o In response to applicant delays, City staff coordinated with the County Supervisor’s Office to address Health Department delays. o An interim solution now allows applicants to initiate tenant improvements while their health permits are under review, expediting project timelines.
Completed Projects
• Retail Leakage Report: Developed a comprehensive analysis of retail leakage trends, identifying key opportunities to recapture resident spending currently occurring outside the city.
• HIP District Branding:
o Installed 35 new district banners following Planning Commission approval, enhancing identity and visibility within the HIP District.
Additional Initiatives
• Business Communications and Tools:
o Launched an opt-in system to streamline communications and updates for Laguna Beach businesses, improving transparency and engagement. o Offered an AI business analytics tool to help local businesses gain deeper customer Insights
o Hosted a commercial broker's roundtable on March 26, 2025,2025 with local brokers to provide updates on the City’s economic development initiative. 10 2025 Economic Development Program: Nine-Month Progress Report September 24, 2025
• Outdoor Dining & Parklet Program:
o 16 participating businesses utilizing a mix of 8 public and 55 private dining spaces.
o City Council has temporarily paused new parklet applications while a sidewalk and curb improvement feasibility study is conducted. This review, aligned with Assembly Bill 413 requirements, explores expanded curbside safety measures (e.g., bulb-outs, widened walkways, enhanced outdoor dining designs) to modernize the City’s pedestrian infrastructure.
Vacancy Rate
The most recent data indicates a downward trend in the vacancies, which has declined to 6.2%, down from a recent peak of 7.1%.
Next Steps
• Advance recruitment strategy with The Retail Coach based on finalized target list. • Continue proactive support for businesses through streamlined permitting and interdepartmental coordination.
• Monitor implementation outcomes related to zoning code amendments and property maintenance enforcement.
• Prepare for City Council review of the long-term future of the Outdoor Dining and Parklet Program as informed by the Downtown Landscape Feasibility Study. 11