PLANNING COMMISSION STAFF REPORT
Wednesday, December 3, 2025
Agenda Item No. 5.3
Case No: Conditional Use Permit 25-2265
Coastal Development Permit 25-2267
Sign Permit 25-2266
Request A conditional use permit (“CUP”) to establish a tavern (Seahorse Lounge) that allows on-site sale and consumption of alcohol, live entertainment, outdoor seating for an existing coffee shop, and a joint-use parking plan that involves a historic preservation incentive for a 75% reduction in the required off-street parking spaces for the Seahorse Lounge, Pearl Coffee Shop, and Pearl Street General Store in the C-1 (Local Business District) zone. A coastal development permit (“CDP”) is required for the intensification of use of the existing commercial space. A sign permit (“SP”) is requested for three (3) window signs and one (1) painted wall sign.
Project Location: 1796 S Coast Highway | APN: 644-271-07 Applicant: Garry Ledesma, Manager | Seahorse LB, LLC
(949) 306-4242 | [email protected]
Property Owner: Kelly Ware
Prepared By: Community Development Department
Sarah Olsen, Assistant Planner
(949) 715-1149 | [email protected]
CEQA: The project qualifies for a categorical exemption pursuant to Section 15301 (Existing Facilities) and Section 15331 (Historic Resource Restoration/ Rehabilitation.
Coastal Development
Permit: The Project is located within a non-appealable area of the Coastal Zone.
Planning Commissioners
within a 500’ Radius: None
Attachment 3
22 Recommendation:
By motion, adopt Resolution No. 25-2265 (Attachment 1) approving Conditional Use Permit 25- 2265, Coastal Development Permit 25-2267, and Sign Permit 25-2266 and finding said action exempt from CEQA.
EXECUTIVE SUMMARY:
The Applicant, Garry Ledesma, is requesting approval of Conditional Use Permit 25-2265, Coastal Development Permit 25-2267, and Sign Permit 25-2266. The proposed Conditional Use Permit would establish a tavern, the Seahorse Lounge, offering on-site sale and consumption of alcohol and live entertainment. The CUP would also authorize outdoor seating at the existing Pearl Street Coffee Shop and a joint-use parking plan that incorporates a historic preservation incentive, allowing a 75% reduction in the required off-street parking spaces for the Seahorse Lounge, Pearl Street Coffee Shop, and Pearl Street General Store. The Coastal Development Permit is required for the intensification of use of the existing commercial space, and the Sign Permit covers three window signs and one painted wall sign (collectively, the “Project”).
Staff has reviewed the Applicant’s request and determined that all required findings of fact can be made to support approval of the entitlements. Accordingly, staff recommends conditional approval of the Project.
BACKGROUND:
General Location: 1796 S Coast Highway
Assessor’s Parcel Number: 644-271-07
Environmental Determination: The proposed Project is categorically exempt under the California Environmental Quality Act (CEQA) Guidelines
pursuant to Section 15301, Class 1 (Existing Facilities), and Section 15331, Class 31 (Historical Resource
Restoration/Rehabilitation).
Related Cases: On January 18, 2017, the Planning Commission approved CUP 15-2458 and CDP 16-2736 to permit onsite
consumption of beer, wine, and prepackaged specialty foods within a 280-square-foot area of an existing retail store. On September 20, 2023, the Planning Commission revoked CUP 15-2458 due to violations of the previously imposed
conditions of approval.
Existing General Plan Land
Use Designation: CTC – Commercial Tourist Corridor
23 Zoning Designation:
Use of Property:
C1 – Local Business District
Coffee Shop and Retail Store
Surrounding General Plan Land Uses Designations, Zoning Districts, and Use of Properties:
Direction General Plan Land
Use
Zoning Use
North CTC C1 Multi-tenant Commercial
South CTC C1 Retail & Restaurant
East VMD R2 Residential
West CTC C1 Automotive Service
Existing Project Street Frontage Location Map
DISCUSSION/ANALYSIS:
Background
The subject property is located at the corner of Pearl Street and South Coast Highway within the HIP (Historic and Interesting Places) District of the C-1 (Local Business District) zone. The site is developed with an approximately 3,000-square-foot Mission Revival–style commercial building and a rear surface parking lot providing seven standard spaces, including one (1) ADA Van Accessible space and two (2) compact spaces, and two motorcycle spaces, for a total of eight onsite spaces. Constructed in 1926, the building is representative of Laguna Beach’s early 24 commercial development. The property is listed on the City’s local historic register and is eligible for historic preservation incentives. Surrounding uses include a multitenant commercial building with a restaurant (Saigon Beach) to the north, a retail liquor store and sandwich shop to the south, residential uses to the east, and an automotive service shop to the west.
The property currently operates under a single business entity and license, consisting of two uses:
Pearl Street Coffee and Pearl Street General Store. Both uses occupy the front portion of the building, while the rear half is barricaded and not accessible to customers. Pearl Street Coffee offers specialty coffees prepared onsite, along with premade pastries and grab-and-go snacks.
Pearl Street General Store provides a curated selection of high-quality goods, including beach gear, home décor, knick-knacks, kitchenware, art, and clothing. Current hours of operation are 7:00 a.m. to 2:00 p.m. for the coffee shop and 7:00 a.m. to 5:00 p.m. for the general store. Both uses are permitted by right within the C-1 zone and do not require a Conditional Use Permit.
On January 18, 2017, the Planning Commission approved CUP 15-2458 and CDP 16-2736 to allow onsite consumption of beer and wine under a Type 42 alcohol license, along with consumption of prepackaged specialty foods within a roped-off, 280-square-foot area of the Pearl Street General Store. Following numerous violations of CUP conditions of approval, Building Code requirements, and Department of Alcoholic Beverage Control regulations, the Planning Commission revoked CUP 15-2458 on September 20, 2023. Since that revocation, the business has transitioned to new ownership, which has expressed full commitment to complying with City requirements and conditions of approval.
Existing Café area Existing Bar
25 Proposed Project
The proposed Project includes a Conditional Use Permit, a Coastal Development Permit, and a Sign Permit. The Project involves the establishment of a tavern within an existing commercial building, the implementation of a joint-use parking plan, the application of a historic preservation incentive for reduced parking, and the installation of three window signs and one painted wall sign.
Each entitlement is described in detail throughout this report. No alterations to the existing building’s exterior are proposed, other than the installation of the signs as further detailed herein.
Interior tenant improvements are limited to repair and maintenance of finishes, such as paint, wallpaper, and installation of accessory equipment to support bar operations. Previously unpermitted kitchen equipment will be removed, and the area will be converted to employee-only storage.
Conditional Use Permit:
The Seahorse Lounge
The proposed Project includes a Conditional Use Permit with three components. First, the establishment of a tavern, the Seahorse Lounge, which will permit on-site sale and consumption of alcoholic beverages and provide live entertainment for patrons. The Seahorse Lounge will operate under a Type 42 alcohol license, limiting service to beer, wine, and wine-based cocktails.
A limited selection of prepackaged foods will also be offered, as outlined in the Applicant’s letter of intent (Attachment 2).
The tavern’s operating hours will be 5:00 p.m. to 10:00 p.m., Sunday through Thursday, and 5:00 p.m. to 11:00 p.m., Friday and Saturday, following the closure of the retail store and coffee shop.
Tavern operations will be confined to the rear portion of the building and the front portion currently occupied by the retail store, which operates from 7:00 a.m. to 5:00 p.m. (see Figure 1 and project plans, Attachment 3). After the retail store closes at 5:00 p.m., items on display will be relocated to either the coffee shop area or employee-only storage areas. 26 Figure 1. Proposed area of operations for Seahorse Lounge Live entertainment will consist of ambient acoustic music, offered up to seven days per week during tavern hours and concluding 30 minutes prior to closing. Performances may include both live and prerecorded sets featuring instruments such as piano, guitar, and light percussion, with limited amplification not to exceed 60 decibels when measured from the nearest residential property, consistent with Laguna Beach Municipal Code Section 7.25.040. In recognition of the business’s history and past concerns from neighboring residents, the applicant proposes enhanced noise-mitigation measures, including keeping the rear door closed during tavern hours and covering it with theater-grade, noise-reducing curtains. Entertainment will be centralized within the front portion of the building adjacent to South Coast Highway, away from abutting residential properties. The Laguna Beach Police Department has reviewed the proposed CUP and, aside from past concerns and calls for service, has indicated no objections to issuance of the permit, provided the new business owners adhere to all guidelines and conditions of approval.
Deliveries for all three uses will occur at the rear of the property, utilizing the parking lot during non-peak business hours. Deliveries will be made primarily by small trucks and personal vehicles, as most inventory is sourced from local suppliers. Staffing for the tavern will consist of two to four 27 employees, with additional staff scheduled on Fridays and Saturdays. Trash collection will be managed through the use of one compost bin, one recycle bin and one dumpster stored at the rear of the property, concealed from public view. To further address past noise concerns, the applicant proposes that trash be accessed and moved to the bins only during operational business hours.
Department of Alcohol and Beverage Control
Pursuant to Section 23958.4 of the State Building and Professional Code, approval of Public Convenience and Necessity by the City Manager is required when the number of liquor licenses in a census tract exceeds five. Historically, when alcohol service has been proposed in areas already saturated with licenses, the City Manager has granted such approval following the Planning Commission’s approval of a Conditional Use Permit. In this case, if the Conditional Use Permit is approved, the Department of Alcohol and Beverage Control will prompt the City to provide approval of a Public Convenience and Necessity determination by the City Manager.
Outdoor Seating
Second, Pearl Street Coffee proposes to provide outdoor seating for its customers. The seating area will consist of two tables with four chairs in total, arranged with two chairs per table. All seating will be located entirely within the property boundaries and will not encroach into the public right-of-way. Examples of the proposed tables and chairs are included in the plans (Attachment 3). The outdoor seating will be available exclusively to Pearl Street Coffee customers and will be removed daily upon the coffee shop’s closure at 2:00 p.m.
Joint Use Parking:
Third, a joint-use parking plan is proposed to accommodate the three business operations.
Pursuant to LBMC Section 25.52.006(B), two or more uses with different hours of operation may share the same parking spaces to satisfy their respective requirements, subject to approval of a Conditional Use Permit, provided there is no conflict or overlap in operating hours. The applicant’s proposed joint-use parking plan is provided in Attachment 4 and, upon approval, will be retained on file with the Department of Community Development pursuant to LBMC 25.52.006(B)(2).
Under LBMC Section 25.52, parking for retail uses is required at a rate of one space per 250 square feet of gross floor area. Food service uses, including cafés and bars, must provide parking at a rate of one space per 100 square feet of gross floor area or one space per three seats, whichever is greater. Because the coffee shop and retail store have overlapping hours of operation (7:00 a.m. to 5:00 p.m.) and share the same space, the more restrictive standard of one space per 100 square feet applies. The areas of the building dedicated to the retail and coffee shop uses are located in the front portion of the building nearest South Coast Highway, with access maintained from the rear of the building. The proposed floor plan for these operations is shown in Figure 2 and provided in Attachment 3. The total square footage dedicated to the retail and coffee shop uses is 2,367.36 square feet.
28 Figure 2. Proposed areas of operation for Pearl Street Coffee & General Store.
As shown in Figure 1, the Seahorse Lounge will also be subject to a parking requirement of one space per 100 square feet, with a total floor area of 2,361.73 square feet. It should be noted that the coffee shop, retail, and tavern operations share common areas that remain open at all times and have been included in the gross floor area calculations for each use. These shared spaces consist of employee storage, restrooms, utility rooms, and janitorial closets.
Historic Preservation Incentive – Reduction of parking requirements Given that the property provides only eight onsite parking spaces, a Conditional Use Permit may authorize a reduction in parking requirements of up to 75% if the Project complies with the Secretary of the Interior’s Standards (SOIS) (LBMC Section 25.45.008(A)(3)). The applicant is requesting the full 75% reduction to accommodate the three business operations in conjunction with the proposed joint‑use parking plan. Consistent with LBMC Section 25.45.008, the Planning Commission is the discretionary review authority for preservation incentives, including approval of a Conditional Use Permit. When a Conditional Use Permit is required, the City Council serves as the final approval authority, acting on the recommendation of the Planning Commission. Parking calculations demonstrating the total spaces required for each use, together with the historic preservation reduction, are provided in Figure 3 and Figure 4. With approval of the Conditional Use 29 Permit for the joint‑use parking plan and the requested 75% reduction, the Project’s parking requirements will be satisfied.
Table 1. Pearl Street Coffee Shop and General Store Parking Calculation with 75% reduction.
Table 2. Seahorse Tavern Parking Calculation with 75% reduction.
Per LBMC Section 25.45.008(A)(3), if a requested incentive involves a reduction of 15 or more parking spaces, the City may require a parking demand study to evaluate the existing or proposed use, potential neighborhood impacts, and the availability of off-site and on-street parking. Because 30 the requested reduction is nominally greater than 15 spaces, staff reviewed the requirement for a study in light of existing site conditions that influence parking demand. Staff has determined that a study is not necessary, as the site will continuously maintain eight onsite parking spaces for all business operations. In addition, metered parking is available along Pearl Street and South Coast Highway, and both an Orange County Transit Authority bus stop and a Laguna Beach Trolley stop are located directly in front of the coffee shop and retail store. The nearest Laguna Beach Local pick-up and drop-off stop is one block away at the intersection of Pearl Street and Glenneyre Street (see Figure 5). To further mitigate parking demand, a condition of approval has been added requiring the applicant to promote alternative transportation options, including carpooling, walking, and bicycling. These measures may include:
1. New-hire orientation to inform employees of local transit options, bicycle routes, and facility information.
2. Posting of local transit information bulletins, updated at least quarterly.
3. Commuter-matching services (e.g., carpooling) offered annually to all employees and upon hiring for new employees.
Figure 3. Existing off site parking conditions and transportation services OCTA Bus/LB Trolley
31 Coastal Development Permit
A coastal development permit is required because the project includes an intensification of use from its prior use of retail, and a 280 square-foot floor area that was approved under CUP 15-2458 and CDP 16-2736 to allow beer and wine consumption and food service within the dedicated area.
The establishment of the tavern and coffee shop will increase the required parking ratio for select areas of the building that were previously retail areas and had a parking requirement of one space for every 250 square feet.
Sign Permit
The proposed sign permit application consists of three (3) window signs and one (1) painted wall sign. One window sign will be located on the existing bay window fronting Coast Highway and will consist of a pink seahorse decal approximately 2.77 square feet in size. The second window sign will be located on the entrance door at the rear of the property facing the parking lot. This sign will consist of a gold seahorse decal approximately 1.63 square feet in size. The third window sign will be located on the side of the building facing Pearl Street and will consist of two painted seahorses in the colors pink and blue and is approximately 2.74 square feet in size. The proposed painted wall sign will be located at the rear of the property adjacent to the entrance door and will display the business name, “The Seahorse”, painted in black in a handwritten cursive font. The wall sign will be approximately 5.32 square feet in size with the tallest letter height “S” at 23 inches in height.
It is noted that these signs have already been installed on the building without planning approval and building permits. Photographic examples are shown in the figures below, and the signs with area dimensions are shown within the plans as Attachment 3. The proposed signs meet the municipal code requirements as demonstrated in the table below and within the sign permit findings as described herein.
Table 3. Sign Compliance
Sign Type Proposed Sign
Area
Maximum Sign Area Complies with
Municipal
Code
Window, Rear Door 1.63 sq. ft. 10% window area =
1.82 sq. ft. Yes
Window, Pearl Street 2.74 sq. ft. 10% window area =
4.63 sq. ft. Yes
Window, Coast Hwy 2.77 sq. ft. 10% window area =
2.85 sq. ft. Yes
Wall, Rear 5.32 sq. ft. 75 sq. ft. Yes
32 Figure 4. Coast Highway Window Sign
Figure 5. Pearl Street Window Sign
33 Figure 6. Rear Door Window Sign and Wall Sign
ENTITLEMENT REVIEW PROCESS:
Conditional Use Permit
The proposed establishment of a tavern offering onsite sale and consumption of alcoholic beverages and live entertainment to customers, outdoor seating for a café, and a joint-use parking plan in conjunction with a historic preservation incentive of a 75% reduction in required on-site parking requires the approval of a Conditional Use Permit. (See LBMC Section 25.05.030; LBMC Section 25.20.006(F) & (H); LBMC Section 25.52.006(B); LBMC Section 25.45.008(A)(3)) Conditional Use Permits are governed by Laguna Beach Municipal Code Section 25.05.030. A Conditional Use Permit is considered by the Planning Commission at a duly noticed public hearing where the following findings are considered in relation to the proposed development:
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 site for the proposed use is adequate in size and topography to accommodate said use because the existing building can support the occupancy of a tavern at separate hours from the existing retail and coffee shop uses. The site contains a surface parking lot with eight spaces dedicated to patrons and the joint-use parking plan will accommodate the proposed uses by establishing fixed hours of operation that prevent conflicts with available parking. Additionally, required parking standards are satisfied through the granting of the historic preservation incentive.
The property fronts Coast Highway, an area characterized by high ambient noise, pedestrian activity, and commercial uses, where loading and parking demands are typical and compatible 34 with the proposed tavern use. The tavern will integrate appropriately with surrounding land uses in the vicinity. Furthermore, all existing site improvements, including fences, walls, and designated spaces are sufficient to support the proposed businesses, with a maximum occupancy of 49 persons within any room at one time, and a maximum of eight parking spaces within the existing parking lot.
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 use of a tavern. The joint-use parking plan in addition to 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.
Finding No. 3: The proposed use will have no substantial adverse effect upon abutting property.
Yes. The proposed tavern use will not have a substantial adverse effect upon abutting property because the use is limited strictly to the building’s interior, the hours of operation for the tavern are limited to 5:00 pm - 11:00 pm on Fridays and Saturdays, and 5:00 pm - 10:00 pm Sunday – Thursday, with the proposed live entertainment ending no later than 30 minutes before closing each day. The business will not move trash to the exterior receptacles before or after business hours to avoid any additional noise near the abutting residential properties. Additionally, there will be noise mitigation installed at the rear door facing the abutting residential property that will consist of theater-grade curtains that will facilitate reduced noise levels that may emit from the amplified music.
Finding No. 4: The proposed use is consistent with the objectives and policies of the City's General Plan.
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.
Policy 5.4 Preserve and maintain the residential character and livability of neighborhoods adjacent to commercial districts and/or individual businesses by regulating and minimizing impacts from commercial activities, including but not necessarily limited to deliveries, amplified music, light 35 trespass, alcohol-related impacts, and employee or valet parking. Establishment of any new preferential parking districts in the coastal zone shall be prohibited.
Goal 6: Provide a diversity of land uses that enhance the community.
Yes. The proposed uses are consistent with the goals and policies of the City’s General Plan as described above. The Seahorse Lounge is intentionally small in scale and oriented toward local patrons, thereby reinforcing a sense of place and belonging within the community, and adds to the village character of the area. Introducing a speakeasy-style tavern contributes to the diversity of commercial offerings along Coast Highway, particularly in the Woods Cove neighborhood. The Seahorse Lounge supports the local economy by allowing an existing small business to expand its services. The tavern preserves the building’s historic features including its established use, interior character, and exterior appearance with minimal alterations, thereby supporting the City’s preservation objectives. The joint-use parking plan, together with the historic preservation parking incentive, makes the combined uses within the building feasible and allows the space to be fully utilized without creating additional impacts. By activating and maintaining a historically significant storefront, the project prevents potential vacancy and contributes to the retention of small businesses. Furthermore, the tavern’s low occupancy, controlled hours of operation, and incorporation of noise-mitigation measures for live entertainment, deliveries, and general business activities will ensure that any potential impacts to adjacent residential properties are minimized.
Finding No. 5: The conditions stated in the decision are deemed necessary to protect the public health, safety and general welfare.
Yes. The conditions stated in the decision are deemed necessary to protect the public health, safety and general welfare. Additional conditions have been added to mitigate prior concerns regarding noise and functionality of the businesses, including, but not limited to, hours of operations and occupancy restrictions.
Coastal Development Permit
The proposed intensification of use requires the approval of a coastal development permit. (See LBMC Section 25.07.004.) Coastal Development Permits are governed by Laguna Beach Municipal Code Chapter 25.07. A Coastal Development Permit is considered by the Planning Commission at a duly noticed public hearing where the following findings are considered in relation to the proposed development:
Finding No. 1: The project is in conformity with all the applicable provisions of the certified local coastal program, including the following review criteria:
1. The proposed development will not encroach upon any existing physical accessway legally utilized by the public or any proposed public accessway identified in the adopted local coastal program land use plan.
36 Yes. The proposed development will not encroach upon any existing public accessway or any proposed public accessway identified in the adopted Local Coastal Program Land Use Plan. The Project is contained entirely within an existing commercial building, with no expansion of the structure or surface parking lot. Neither the building nor the parking lot constitutes a public accessway under the adopted plan, as the subject site is privately owned.
2. The proposed development will not adversely affect marine resources, environmentally sensitive areas, or archaeological or paleontological resources.
Yes. The proposed development will not adversely impact marine resources, environmentally sensitive areas, or archaeological or paleontological resources. The property is fully developed with a commercial building and a surface parking lot, and no such resources exist onsite. The Project does not involve grading or land alteration. Furthermore, no sensitive resources are located in the immediate vicinity, as the property is a corner lot fronting Coast Highway and adjacent to Pearl Street, with surrounding parcels fully developed with residential and commercial uses.
3. The proposed development will not adversely affect recreational or visitor-serving facilities or coastal scenic resources.
Yes. The proposed development will not adversely affect recreational or visitor-serving facilities or coastal scenic resources because such facilities and resources are not located on the project site.
The project is limited to an intensification of use of an existing commercial space and will not generate an unusual amount of traffic that would negatively affect nearby coastal scenic resources, such as Pearl Street Beach.
4. The proposed development will be sited and designed to prevent adverse impacts to environmentally sensitive habitats and scenic resources located in adjacent parks and recreation areas, and will provide adequate buffer areas to protect such resources.
Yes. The proposed development will be sited and designed to avoid adverse impacts to environmentally sensitive habitats and scenic resources in adjacent parks and recreation areas.
The Project is located entirely within the existing building’s interior and does not involve any expansion of floor area. As such resources are not present on the project site or within the immediate vicinity, buffer areas are not required.
5. The proposed development will minimize the alterations of natural landforms and will not result in undue risks from geological and erosional forces and/or flood and fire hazards.
Yes. The proposed development will minimize alterations to natural landforms and will not create undue risks from geological or erosional forces, flooding, or fire hazards. The Project is limited to an intensification of use within an existing commercial space, with no alterations to the land proposed. Therefore, no undue risks are anticipated.
37 6. The proposed development will be visually compatible with the character of surrounding areas, and where feasible, will restore and enhance visual quality in visually degraded areas.
Yes. The proposed development will be visually compatible with the character of surrounding areas because the commercial uses between Pearl Street and Agate Street along Coast Highway vary in type, where restaurants offering alcohol sales and onsite consumption are not uncommon.
The proposed business will restore and enhance the existing space while preserving a significant historical commercial building.
7. The proposed development will not have any adverse impacts on any known archaeological or paleontological resource.
Yes. The proposed development will not adversely impact any known archaeological or paleontological resources. The Project does not involve alterations to the existing land, and no such resources are present on the site.
8. The proposed development will be provided with adequate utilities, access roads, drainage and other necessary facilities.
Yes. The proposed development will be served by adequate utilities, access roads, drainage, and other necessary facilities to support the operations of the tavern, coffee shop, and retail store. The site is already equipped with appropriate trash receptacles, electrical and plumbing infrastructure, and direct access to adjacent streets; therefore, no additional utility installations are required.
9. Other public services, including, but not limited to, solid waste and public roadway capacity have been considered and are adequate to serve the proposed development.
Yes. Other public services, including solid waste management and roadway capacity, have been evaluated and determined to be adequate to serve the proposed development. The business will utilize one compost bin, one recycle bin and one dumpster, stored in the rear of the property, with weekly service provided by the City-approved waste collection provider, CR&R.
Finding No. 2. Any development located between the sea and the first public road paralleling the sea is in conformity with the certified local coastal program and with the public access and public recreation policies of Chapter 3 of the Coastal Act.
Yes. The proposed development is not located between the sea and the first public road paralleling the shoreline. As detailed in the facts supporting Finding Number 1, the Project is in conformity with the certified Local Coastal Program.
Finding No. 3. The proposed development will not have any significant adverse impacts on the environment within the meaning of the California Environmental Quality Act. 38 Yes. The proposed development will not have any significant adverse impacts on the environment within the meaning of the California Environmental Quality Act subject to Guidelines, Section 15301, Class 1 (Existing Facilities) and Section 15331, Class 31 (Historical Resource Restoration/Rehabilitation). The proposed project is limited to the establishment of a tavern within an existing commercial space, a joint-use parking plan and a historic preservation incentive for a 75% parking reduction, all of which will support the operations of the coffee shop, retail store, and tavern during their respective hours of operation. The project will preserve and enhance the existing historic commercial building by maintaining its character and not altering the exterior, nor the layout of the interior. The tenant improvements are limited to painting, wallpaper, installation of bar equipment to support tavern operations, and the removal of unpermitted kitchen equipment.
Sign Permit
The applicant is requesting approval to install three (3) window signs and one (1) painted wall sign on the subject property. The sign plans have been provided as Attachment 3. Planning Commission approval is required pursuant to LBMC Section 25.54.018 for signage with letter heights exceeding eight (8) inches.
The proposed signs meet the criteria for window signage and a wall sign, as the signs are attached upon a window and is visible from the exterior of the window, and the wall sign is painted on an exterior wall of a building. Individual wall signs are allowed to be no more than 75 square feet, and window signs are allowed to be no more than 10% of the window area or 10 square feet, whichever is more restrictive. The applicant is proposing the window signs to be less than 10% of each window area, and the wall sign is limited in size with an area of 7.6 square feet. A site’s combined allowable sign area of all permanent signs shall not exceed one square foot per linear foot of building or suite frontage, up to a maximum of one hundred fifty square feet. The allowable total computable sign area for the project site is approximately 50 square feet. The applicant is proposing a total of 14.89 square feet for the three window signs and the one wall signs. Reference Table 3 for Sign Compliance.
Signage Design Criteria:
The proposed sign improvements are required to be designed in a manner which best satisfy the signage design criteria specified within Laguna Beach Municipal Code Section 25.54.018(D). The following design criteria shall be considered in the review of proposed signage:
As evaluated in the proceeding pages, staff finds the proposal consistent with the applicable design criteria.
Finding 1. Signs, including logos, should be compatible with the architecture of the structure and should be made of high quality materials, clearly identify the name and character of the business, and be visually compatible with the surrounding physical environment in terms of color, scale and size. In order to emphasize the village character of Laguna Beach, blade or projecting and suspended signs are strongly encouraged. Representational signs, such as an easel or a palette and brushes for an art supply store, books for a bookstore, or a corkscrew or wine bottle for wine 39 shop, are encouraged. Three-dimensional signs are strongly encouraged.
The proposed signage is compatible with the building’s architecture and constructed of high-quality materials. The pink, blue, and gold window decals provide contrast against the white stucco façade and brick veneer, complementing the vintage aesthetic of the business. While only the rear wall sign displays the full business name, the window signs featuring seahorses serve as symbolic logos. This subtle signage aligns with the speakeasy style of the Seahorse Lounge, while the existing permitted blade sign continues to identify the Pearl Street General Store.
Finding 2. The use of natural materials in the construction of signs is encouraged.
The sign decals are composed of vinyl and hand-painted elements, while the wall sign is also hand-painted. Although vinyl and paint are not natural materials, window signage is generally limited to vinyl, paint, or acrylic. The subtle design and modest scale of the proposed signs are compatible with the building’s architecture, complementing the façade pattern through effective use of color and placement. Because the signs can be easily removed, they will have little to no impact on the historic structure.
Finding 3. Canopies and awnings must be constructed of opaque materials.
Not applicable. The proposed sign permit application does not include canopies or awnings.
Finding 4. The height (font size) of letters must be proportional to the allowed sign size and its location. Font size should primarily be related to location. Signs in the downtown area should feature smaller font sizes to attract pedestrians and slow moving, nearby traffic. Signs outside the downtown area should allow larger font sizes to be legible to faster moving traffic.
The proposed font sizes will range from 23 inches for the tallest letter “S” to approximately 8 inches for the smallest letters in the word “Seahorse.” These dimensions are appropriate given the type and speed of traffic along Pearl Street and Coast Highway, where both pedestrian and vehicular circulation occurs within the HIP District. The seahorse decal facing Coast Highway is sufficient in scale, and its pink color provides visibility while remaining compatible with the building’s architectural style.
Finding 5. The downtown specific plan's urban design guidelines shall be considered by the approval authority in reviewing proposed signs in the downtown specific plan area. Primary signs for this area should meet high standards of design that enhance the charm and character of the area.
The subject property is not located within the downtown specific plan area; therefore, this criterion does not apply.
Finding 6. Luminous tube signs shall be an integral part of the business sign program's design, shall not be mass-produced, and shall be one-of-a-kind signs with artistic value. The context of the 40 proposed luminous tube sign location and outside visibility shall be taken into consideration in the design and the balance of the site's signage. There shall be a relationship between the colors of the building, the luminous tube sign colors and the rest of the site's signs. The purpose of the sign needs to be clearly answered in the context of a creative and artful expansion of communicating information about the business product or service.
Not applicable. The proposed sign permit application does not include luminous tube signs.
ENVIRONMENTAL IMPACT:
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 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 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 Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings (1995).
41 RECOMMENDATION:
By motion, adopt a resolution (Attachment 1) approving Conditional Use Permit 25-2265, Coastal Development Permit 25-2267, and Sign Permit 25-2266 and finding said action exempt from CEQA.
NOTIFICATION:
Pursuant to Title 25 (Zoning) Public Notice requirements, a public hearing notice was mailed on November 23, 2025, at least ten days prior to the hearing date, in accordance with LBMC Section
25.05.065(D) and LBMC Section 25.07.014 for CDPs. A public hearing notice was also posted on the project site on November 23, 2025, at least ten days before the hearing date, in compliance with LBMC Section 25.05.065(E). Additionally, a public hearing notice was published in a newspaper of general circulation on November 21, 2025, consistent with LBMC Section
25.05.065(F).
PUBLIC CORRESPONDENCE:
City staff has received several comments, including a 1,032-signature petition in support of the project, since the noticing of the project. These comments are available as Attachment 6.
ATTACHMENTS:
Attachment 1 – Resolution No. 25-2265
Attachment 2 – Letter of Intent
Attachment 3 – Plans
Attachment 4 – Joint Use Parking Plan
Attachment 5 – Planning Application
Attachment 6 – Public Correspondence
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