RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, APPROVING CONDITIONAL
USE PERMIT 26-0066 INVOLVING A HISTORIC
PRESERVATION INCENTIVE FOR A 75% REDUCTION IN THE
REQUIRED OFF-STREET PARKING SPACES FOR THE
SEAHORSE LOUNGE, PEARL STREET COFFEE SHOP, AND
PEARL STREET GENERAL STORE AT 1796 SOUTH COAST
HIGHWAY IN THE C-1 (LOCAL BUSINESS DISTRICT) ZONE,
AND FINDING THE PROJECT CATEGORICALLY EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
PURSUANT TO STATE CEQA GUIDELINES SECTIONS 1501
(CLASS 1) AND 15331 (CLASS 31)
WHEREAS, on April 3, 2025 an application was filed by the business owner of property located at 1796 South Coast Highway (“Applicant”), requesting Conditional Use Permit (“CUP”) 25-2265, Coastal Development Permit (“CDP”) 25-2267, and Sign Permit (“SP”) 25-2266 to establish a tavern, the Seahorse Lounge, that offers on-site sale and consumption of alcohol, and live entertainment. The CUP will also allow for outdoor seating at an existing coffee shop, Pearl Street Coffee Shop, and a joint-use parking plan for the Seahorse Lounge, Pearl Street Coffee Shop, and Pearl Street General Store. The Applicant also requested a historic preservation incentive request for a 75% reduction in the number of required off-street parking spaces. The coastal development permit is required for the intensification of use of the existing commercial space, and the sign permit is for three (3) window sings and one (1) painted wall sign (the “Project”); and
WHEREAS, on December 5, 2025, the Planning Commission held a duly-noticed public hearing on the Project and voted 3-0 to adopt Planning Commission Resolution 25-2265, approving CUP 25-2265, CDP 25-2267, and SP 25-2266, subject to the conditions attached thereto, recommending City Council approval of the requested 75-percent parking requirement reduction through the historic preservation program incentives, and finding the Project Attachment 1
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categorically exempt from the California Environmental Quality Act (CEQA) under State CEQA Guidelines Sections 15301 (Existing Facilities) and 15331 (Historical Resource Restoration/Rehabilitation); and
WHEREAS, on January 27, 2026, the City Council held a duly-noticed public hearing for CUP 26-0066 pursuant to Title 25, Zoning, of the Laguna Beach Municipal Code for a 75% (18- space) reduction in the required off-street parking spaces, as an incentive for maintaining a property on the City’s Historic Register, pursuant to Laguna Beach Municipal Code Section
25.45.008(A), and considered all evidence on the project, including all public testimony, public comments, and documents submitted, including but not limited to the staff report, attachments, and other materials; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. The recitals set forth above are true and correct and are incorporated into the Resolution by this reference.
SECTION 2. The City Council hereby makes the following findings with respect to CUP 26-0066, in accordance with LBMC Section 25.05.030 and Section 25.45.008(A)(3):
Finding No. 1: The site for the proposed use is adequate in size and topography to accommodate said use, and all yards, spaces, walls and fences, parking loading and landscaping are adequate to properly adjust such use with the land and uses in the vicinity.
Yes. The project site is developed with an existing commercial building and an eight-space surface parking lot at the rear where there is no change to the existing building 11 -3- Reso. #
footprint or modification to the existing available parking spaces. The site is adequate in size and topography, as well as all yards, spaces, walls and fences, loading, and landscaping to serve the proposed uses of a tavern, coffee shop, and retail store. Although the combined business model of a retail store, coffee shop, and tavern will require additional parking, totaling 24 spaces, the historic preservation incentive of a 75% reduction (18 spaces) reduces the required parking to six spaces. The parking requirement is met by the eight existing on-site spaces when the uses are operating within their respective hours. The parking calculation uses a conservative approach and considers the square footage of all areas of the building, including areas not accessible to the public, and the entire building is calculated at the more restrictive ratio of one space per 100 square feet of floor area.
Moreover, Condition No. 25 of Planning Commission-adopted Resolution No. 25-2265 requires that the Applicant promote alternative modes of transportation to reduce the reliance on single-occupancy passenger vehicles.
Finding No. 2: The site for the proposed use has access to streets and highways adequate in width and pavement type to carry the quantity and kind of traffic generated by the proposed use.
Yes. The site has existing access to Pearl Street and Coast Highway, both of which will remain unchanged and will continue to be adequate in width and pavement type to carry the quantity and kind of traffic generated by the proposed uses. The historic preservation incentive parking reduction will allow the property to use the existing building’s gross floor area and surface parking lot to their full capacity without adversely affecting access to adjacent streets or existing pavement conditions. The subject property 12 -4- Reso. #
is located in the C-1, Local Business District and abuts South Coast Highway, a four-lane highway. Food services, which are subject to the same parking requirements as a tavern, are similarly allowed in the C-1 zone and already exist in the project vicinity.
Finding No. 3: The proposed use will have no substantial adverse effect upon abutting property.
Yes. The proposed use in conjunction with the historic preservation incentive of reduced parking will not have a substantial adverse effect upon abutting property because the existing parking lot will continue to be available for the patrons of the businesses. The reduction will allow the property to meet its parking requirements with no remaining spaces required. Additionally, there is metered parking available along Pearl Street, Coast Highway, and Agate Street, and an Orange County Transit Authority bus stop, and a Laguna Local pick-up stop at the intersection of Glenneyre Street and Pearl Street, all of which will mitigate traffic impacts from the proposed business.
Finding No. 4: The proposed use is consistent with the objectives and policies of the City’s General Plan.
The proposed use is consistent with the goals and policies of the City’s General Plan as described below. The granting of the historic preservation incentive for reduced parking will support an individually conceived, non-formulaic tavern use that is desirable for the surrounding neighborhood, reinforcing a sense of place and belonging within the community and adding to the village character of the area. The parking reduction allows the space of the existing, historic commercial building to be adaptively reused without negatively impacting the historic resource. Lastly, by activating and maintaining a 13 -5- Reso. #
historically significant storefront, the project prevents potential vacancy and contributes to the retention of small businesses.
Goal 3: Preserve, enhance, and respect the unique, small-scale village character and individual identity of Laguna Beach’s commercial areas.
Policy 3.3: Encourage the preservation of historically significant buildings and protect the character defining components of Laguna Beach’s commercial neighborhoods.
Policy 3.7: Encourage retention and attraction of small businesses throughout the community.
Finding No. 5: The conditions stated in the decision are deemed necessary to protect the public health, safety and general welfare.
The conditions stated in the decision are deemed necessary to protect the public health, safety, and general welfare because the conditions of approval have been included to ensure continued land use compatibility, including restrictions on the hours of operation, and a requirement that the operator maintain and clean up all adjacent public areas, including the sidewalks.
SECTION 3. The City Council finds that the implementation of a historic preservation incentive for a 75% reduction in the required off-street parking spaces are part of the project which involves the establishment of a tavern, a joint-use parking plan, and the installation of three window signs and one painted wall sign for the Seahorse Lounge, Pearl Street Coffee Shop, and Pearl Street General Store (hereinafter referred to as “Project”). On December 5, 2025, the Planning Commission approved the Project, and as part of the approvals found the Project to be categorically exempt from the California Environmental Quality Act pursuant to State CEQA 14 -6- Reso. #
Guidelines, Section 15301 – Existing Facilities, and Section 15331 Historical Resource Restoration/Rehabilitation. There have been no changes to the Project, no changed circumstances, and no new information that could not previously have been known, that would trigger the need for subsequent CEQA review.
The Project is categorically exempt from environmental review under the California Environmental Quality Act pursuant to State CEQA Guidelines, Section 15301 - Existing Facilities. The Class 1 Exemption allows for repair, maintenance, or minor alteration of existing structures or topographical features, involving negligible or no expansion of former use. Here, the Project involves the establishment of a tavern within an existing commercial building, the implementation of a joint use parking plan, a historic preservation incentive for reduced parking, and the installation of three window signs and one painted wall sign.
Further, none of the exceptions outlined in CEQA Guidelines section 15300.2 apply. The project site does not contain any environmentally sensitive areas because the site is fully developed with a commercial building and a surface parking lot. There will be no cumulative impacts resulting from successive projects of the same type in the same place, over time, because the property will be used to its maximum capacity and could not expand further. There are no unusual circumstances resulting in a significant impact on the environment because no alterations to land are proposed with the project. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway because the project is limited to establishing a tavern within an existing commercial building and no alterations are proposed to the building aside from the installation of window signs and a painted wall sign. Scenic resources including highways, trees, and rock 15 -7- Reso. #
outcroppings do not exist on site. The project is not located on a hazardous waste site or any other site included on a list compiled pursuant to Government Code section 65962.5. The project will not result in significant adverse impacts to historical resources as defined by CEQA because the project does not involve alteration to the building, other than the installation of three signs that may be easily removed from the building without impacting the building. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA. In accordance with the California Environmental Quality Act (CEQA) guidelines, the project is also categorically exempt pursuant to Section 15331 Historical Resource Restoration/Rehabilitation, in that the project is limited to maintenance, repair, stabilization, rehabilitation, restoration, preservation, conservation or reconstruction of historical resources in a manner consistent with the Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for reserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings (1995).
SECTION 4. The City Council hereby approves Conditional Use Permit 26-0066, granting the requested 75% reduction of required parking in accordance with the City’s historic preservation program for properties included in the City’s Historic Register, subject to conditions of approval in Exhibit A, which is attached hereto and incorporated herein by reference.
ADOPTED this 27th day of January, 2026.
Mark Orgill, Mayor
ATTEST:
Ann Marie McKay, City Clerk
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I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on January 27, 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk, City of Laguna Beach, CA
17 EXHIBIT A
RESOLUTION NO. 26-XXXX
(CONDITIONS OF APPROVAL)
Standard Conditions – Community Development Department
1. Conditional Use Permit 26-0066 is granted for a historic preservation incentive request for a 75% reduction in the number of required off-street parking spaces at 1796 South Coast Highway.
Approval is granted based on the project plans submitted by the Applicant and cleared by and stamped by City on November 2, 2025. Said plans are approved as submitted as conditioned herein and shall not be altered unless reviewed and approved in accordance with Title 25 of the Laguna Beach Municipal Code.
2. That the conditions of approval contained herein, shall be made part of the construction drawings for the proposed development. Construction drawings shall not be accepted for Plan Check without the conditions of approval incorporated into the construction drawings.
3. In the event that exhibits and written conditions are inconsistent, the written conditions shall prevail.
If there are any disparities between these conditions and the plans or final revised plans that are approved for any subsequent phase, the conditions and/or plans as stipulated in the later approval shall prevail.
4. All plans, specifications, studies, reports, calculations, maps, notes, legal documents, and designs shall be prepared, signed, and stamped (when required) only by those individuals legally authorized to do so.
5. Approval of this application does not relieve the applicant from complying with other applicable Federal, State, County or City regulations or requirements.
6. The Applicant shall defend, indemnify, and hold harmless the City of Laguna Beach and its officers, employees, and agents from and against any claim, action, or proceeding against the City of Laguna 18 -2- Reso. #
Beach, its officers, employees, or agents to attack, set aside, void, or annul any approval or condition of approval of the City of Laguna Beach concerning this Project, including but not limited to any approval or condition of approval of the City Council, Planning Commission, Design Review Board, Community Development Director, or City Planner. The City shall promptly notify the Applicant of any claim, action, or proceeding concerning the Project and the City shall cooperate fully in the defense of the matter. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter.
7. The Applicant shall be responsible for informing all subcontractors, consultants, engineers, or other business entities providing services related to the project of their responsibilities to comply with these conditions of approval and all pertinent requirements in the Laguna Beach Municipal Code, including the requirement that a business license be obtained by all entities doing business in the City.
8. The Applicant shall pay all fees at the time fees are determined payable and comply with all requirements of the applicable federal, state, and local agencies. The duty of inquiry as to such requirements shall be upon the applicant.
9. Failure to comply with any of these conditions of approval is grounds for revocation of the entitlement(s) and is subject to any other available remedies to the City.
10. The Certificate of Occupancy and/or Certificate of Use, as applicable, shall not be issued until City staff has verified compliance with all conditions of approval.
11. The effective date of the entitlements granted herein do not commence until all appeals, including those to the California Coastal Commission, have been exhausted, statutes of limitation have expired, and any lawsuits, filed within the statutes of limitation, have concluded.
12. In the event any of the conditions of approval are infeasible, the decision-making body hereby authorizes the Community Development Director to modify those conditions in the most conservative 19 -3- Reso. #
manner possible, in accordance with the limitations of the City’s Municipal Code, to allow for the completion of the project.
Standard Conditions of Approval for CUP – Community Development Department
13. The right to a use and occupancy permit shall be contingent upon the fulfillment of all general and special conditions imposed by this Conditional Use Permit.
14. All of the special conditions shall constitute restrictions running with the land, and shall be binding upon the owner of the land and the successors or assigns.
15. The permit shall be subject to review at any time upon receipt of written complaint. 20