Garry Ledesma
Seahorse LB, LLC
1796 South Coast Hwy
Laguna Beach, CA 92651
Email: [email protected]
Phone: 949-306-4242
October 15, 2025
Laguna Beach Planning Department
505 Forest Avenue
Laguna Beach, CA 92651
Subject: Letter of Intent to Expand Use of Historic Building for Seahorse Tavern, Pearl St Coffee, and Pearl St General Store
Dear Planning Department,
I am writing to formally express our intent to expand the approved use of the historic property currently housing Pearl St General Store, located in Laguna Beach. This expansion will restore and revitalize previously unapproved sections of the building to their original historic functions, adding tremendous cultural and community value to the area.
This property is now under completely new ownership, and for the first time in its 99-year history, we are committed to securing all necessary permits and operating the establishment fully in compliance with city regulations.
Business Model
The proposed operation will be conducted under one unified business entity, Seahorse LB, LLC, with a single business license and management team overseeing all operations. While there are three distinct uses within the space—Seahorse Tavern, Pearl St Coffee, and Pearl St General Store—they are all part of the same business. We anticipate utilizing two employee shifts: a morning shift to operate the coffee shop and retail store, and an evening shift for tavern operations.
Although operated under one business, there will be three separate points of sale to facilitate efficient transactions: one for coffee sales, one for retail, and one for tavern service.
Existing Conditions and Proposed Improvements
Currently, the only space in active use is the previously approved retail area, which operates as Pearl St General Store. All other sections of the property are currently unused. However, both the coffee shop area and the tavern area are already fully furnished and equipped for operation.
Staffing During Peak Hours
Attachment 5
58 During peak hours, we expect to have:
• 1 to 2 employees on staff for Pearl St Coffee and Pearl St General Store operations. • 2 to 4 employees for Seahorse Tavern, with increased staffing on Fridays and Saturdays to accommodate higher customer volume.
Alcohol Service and Beverage Menu
Alcohol sales will not be available during coffee shop and retail hours.
Alcohol will be served under a California ABC Type 42 license, for which an application was submitted on March 19, 2025, only during the tavern operating hours (after 5pm). This license permits the sale of beer and wine for consumption on-site but does not allow the sale of distilled spirits.
Our sample beverage menu will include:
• Bottled red, white and rose wine, including wine by the glass • Champagne and sparkling wine
• Locally brewed craft beers
• Bottled domestic and imported beer
• Hard kombucha
• Wine-based cocktails such as mimosas, sangria, and similar beverages No hard liquor or distilled spirits will be served under this license or in any portion of the establishment.
Delivery Plan
All food and beverage deliveries will be made via the rear access/loading area of the property.
Deliveries will occur during non-peak business hours, ensuring minimal impact to customer activity and traffic flow. Only small delivery trucks and personal vehicles will be used, as the bulk of our inventory is sourced from local suppliers within Orange County. Deliveries will be scheduled during non-rush hours, typically in the mid-morning or early afternoon, to avoid conflicts with nearby businesses, school traffic, or commuter congestion. This approach will help mitigate any traffic or logistical disruption to the surrounding neighborhood.
Trash Collection Plan
Trash collection for the business will follow the same process as approved for the prior retail use.
We will maintain three standard-sized trash bins, which will be stored in the rear area of the 59 property. These bins will be serviced once per week by the city-approved waste collection provider, CC&R, in line with common practice among nearby businesses.
To minimize noise and disruption, staff will only access and move trash to the bins during operational business hours—never before opening or after closing. Trash will be securely bagged and transported by staff to the bins using standard containers or carts, and care will be taken to prevent spills or mess. We do not anticipate any increased frequency or volume of trash that would necessitate additional bin size or service, as operations will remain modest and wellcontained.
Proposed Use of the Property
We propose to operate:
* Seahorse Tavern – A historically significant bar space with a 99-year legacy in Laguna Beach, which evolved into a beloved local speakeasy-style tavern. We seek to restore this iconic space to its rightful purpose as a neighborhood gathering spot by offering beer, wine, and winebased cocktails under a California ABC Type 42 license. We also plan to offer a limited selection of prepackaged food snacks during the tavern operations, including items such as beef jerky, nuts, and pre-made cheese plates.
◦ Operating Hours:
▪ Sunday to Thursday: 5:00 PM – 10:00 PM
▪ Friday and Saturday: 5:00 PM – 11:00 PM
◦ Live entertainment is proposed in the form of ambient acoustic music, which may include both live and prerecorded performances, up to 7 days per week during the tavern’s hours of operation, ending 30 minutes prior to closing. Live music may feature instruments such as piano, guitar, and light percussion (e.g., drums), with limited amplification not to exceed 75 decibels outside of the building in compliance with city noise ordinances. No permanent speakers will be installed, only non-fixed floor speakers will be utilized as needed to play music.
◦ Noise mitigation. We are deeply aware of past concerns from neighboring residents regarding noise when this space was previously operated without proper permits. As such, we are committed to implementing enhanced noise mitigation measures and sound control strategies. During Seahorse Tavern operating hours (5:00 PM 10:00 PM Sunday through Thursday, and 5:00 PM 11:00 PM Friday and Saturday), we plan to keep the rear door closed (but not locked) most of the time and covered with theater-grade noise-reducing curtain panels. ◦ Sound curtains. We have purchased and tested the *Sun Zero Nordic 2-Pack Theater Grade Noise Reducing Extreme 100% Blackout Grommet Curtain Panel Pair* (108" x 52", Coal Gray), installed in double layers on curtain rods. Our in60 60 house testing showed a noise reduction of approximately 5-10 decibels when the door was briefly opened. While we do not believe this measure is strictly required, we are implementing it voluntarily as an extra step to minimize any potential sound impact on the surrounding neighborhood.
◦ Pearl St Coffee – A morning coffee shop that will operate from a previously unapproved section of the building, offering specialty coffees, pre-made pastries, and grab-and-go snacks. No alcohol will be served during the coffee shop hours. All items will be prepared off-site as there will be no kitchen on premises. ◦ Operating Hours: 7:00 AM – 2:00 PM
◦ Service Style: On-site consumption and takeout, with indoor and outdoor seating, consistent with the floor plan showing 17 seats. The outdoor seating will remain strictly within the confines of the property boundary, with no encroachment into public spaces (as shown in the site plan along with furniture specifications).
◦ The coffee shop area will include retail display only—there will be no separate "product display" section. Retail offerings will include items such as beach gear, home decoration items, knick knacks, kitchenware, art, and clothing, available for purchase during café operating hours.
◦ Pearl St General Store – Our previously approved retail component will continue to operate between 7:00 AM and 5:00 PM, offering a curated selection of high-quality goods, including beach gear, home decor, knick knacks, kitchenware, art, and clothing.
Kitchen Equipment
Since no on-site food preparation is planned for this operation (only reheating of pre-prepared food), we will not maintain a full-service kitchen. All “from scratch” food-prep equipment from previous operations will be removed. The Pearl St Coffee portion will continue to use the existing sink, ice maker, microwave, air fryer, and coffee-making equipment, and will add two newly proposed under-counter dishwashers. The Tavern portion will use the newly proposed under-counter dishwasher, microwave, ice maker, and sink.
Given this operational structure and the absence of a kitchen, we do not believe a grease interceptor will be required. Should there be any such requirement identified during plan check, we will comply accordingly.
Mechanical Equipment and Vents
There is no new mechanical equipment or exterior venting proposed as part of this project.
Accordingly, no roof or site plan callouts are included in the submitted materials. Existing infrastructure will remain unchanged, as the use does not require additional rooftop or exterior mechanical installations.
61 Occupant Load
The proposed maximum occupancy for the building is 49 people, in accordance with applicable California Building Code requirements. This maximum of 49 occupants will be permitted within the building at any one time, including both seated and standing patrons during Tavern, retail and coffee shop operations.
Conditional Use Permit Justification
1. Adjoining Land Uses and Area Compatibility: The proposed use will not adversely affect adjoining land uses or impede the area’s development. The Seahorse Tavern has a long-standing presence in the community, and its restoration is consistent with the historic character of the neighborhood. The use will be carried out in a legal, respectful manner that prioritizes community engagement and sensitivity to past concerns.
2. Suitability of Site and Operation: The building and suite are ideally suited for the intended mixed use. Minimal interior renovation is needed, and the building is already functionally outfitted for coffee, retail, and tavern operations. Its footprint and location have historically supported such uses.
3. Traffic and Circulation: Traffic generated by the proposed use is expected to be moderate and will not exceed what is typical for this part of South Coast Highway. With clearly designated delivery times and service access via the rear, along with staggered use periods (morning for coffee/retail, evening for tavern), the impact on circulation is minimal and well managed.
4. General Plan Consistency: The proposed use aligns with the City’s General Plan by restoring a culturally significant commercial site to lawful and vibrant operation. It promotes small business, supports walkable community commerce, and preserves a valuable historical landmark.
5. Public Health, Safety, and Welfare: Conditions outlined in this application—limited hours, ambient music only, modest alcohol service, and strong community engagement— are specifically designed to protect public health, safety, and neighborhood character.
We welcome the opportunity to work closely with the Planning Department to move this vision forward in a way that benefits the entire community.
Sincerely,
Garry Ledesma
Manager
Seahorse LB, LLC
On behalf of Seahorse Tavern, Pearl St Coffee, and Pearl St General Store 62