STAFF REPORT
Meeting Date:
January 13, 2026
CONSENT
9 SUBJECT: ARTIST LIVE-WORK UNITS; AMENDMENT TO THE PURCHASE AND SALE AGREEMENT FOR 2307 AND 2535 LAGUNA CANYON ROAD
RECOMMENDATION: It is recommended that the City Council:
1. Approve the Third Amendment to the Purchase and Sale Agreements for 2307 and 2535 Laguna Canyon Road; and
2. Find that the recommended action is not a project under the California Environmental Quality Act pursuant to Section 15378, because the actions will not result in a direct or reasonably foreseeable indirect physical change in the environment.
SUMMARY OF THE MATTER
On December 9, 2025, the City Council approved the Second Amendment to the Purchase and Sale Agreements for 2307 and 2535 Laguna Canyon Road. Among a number of conditions, the Second Amendment established a expiration date to the due diligence period of January 20, 2026, and a closing date of January 30, 2026.
The schedule assumed preparation and Council consideration of assignment and loan documents in early January. The timeline proved compressed due to the year-end holiday season, staff availability, and the number of transaction documents requiring review and coordination.
The Third Amendment (Attachment 1) extends the due diligence period to five p.m. on January 28, 2026, and revises the closing date to February 6, 2026. All other terms and conditions of the Purchase and Sale Agreements remain unchanged.
Staff will return to the City Council at the January 27, 2026 meeting with the proposed assignment and loan documents for Council consideration.
FINANCIAL ANALYSIS
The amendment does not include any modification to purchase price or deposit. The recommended action has no financial impact.
ENVIRONMENTAL ANALYSIS
Staff recommends that the City Council find that the action before the Council does not constitute a project under the California Environmental Quality Act pursuant to Section 15378. The amendment to the Purchase and Sale Agreements involve administrative, financial, and organizational steps that do not authorize, approve, or commit the City to any physical development or activity that may cause a direct or reasonably foreseeable indirect physical change in the environment The action does not grant development rights, does not modify land use entitlements, and does not approve construction, alteration, or redevelopment of the properties. Any future actions that may result in a physical ARTIST LIVE-WORK UNITS; AMENDMENT TO THE PURCHASE AND SALE AGREEMENT FOR 2307 AND 2535 LAGUNA CANYON ROAD
January 13, 2026
environmental effect will require separate review and compliance with CEQA before consideration by the City Council.
Based on this analysis, the recommended action is not a project under CEQA and no further environmental review is required at this time.
ATTACHMENTS
1. Third Amendment to the Purchase and Sale Agreement (Pgs. 3-14) Submitted By:
.
Approved: .Dave Kiff
Jeremy Frimond, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Jeremy Frimond, Assistant City Manager Patrick Donegan, Assistant City Attorney