SUPPLEMENTAL STAFF REPORT ADDENDUM
Item No. 15
January 27, 2026, Regular City Council Meeting
ARTIST LIVE WORK UNITS; AUTHORIZATION TO EXECUTE ASSIGNMENT OF
PURCHASE AND SALE AGREEMENTS AND LOAN AGREEMENT WITH THE LAGUNA BEACH COMMUNITY LAND TRUST FOR 2307 AND 2535 LAGUNA
CANYON ROAD
Purpose of Addendum
This supplemental staff report is provided as an addendum to Agenda Item No. 15 to attach and include the Assignment Agreements that staff is recommending the City Council approve as part of the proposed action.
Background and Clarification
As described in the primary staff report, the City entered into Purchase and Sale Agreements for the properties located at 2307 and 2535 Laguna Canyon Road to prevent the loss of artist oriented live work and light industrial units and to facilitate long term preservation through transfer to the Laguna Beach Community Land Trust.
The Assignment Agreements included with this addendum effectuate the formal transfer of the City’s rights and obligations under the existing Purchase and Sale Agreements to the Community Land Trust so that the Community Land Trust may complete the transactions as the acquiring entity.
More than one Assignment Agreement is required because each property has multiple ownership interests held through separate trusts. Each Assignment Agreement corresponds to a specific ownership interest and collectively accomplishes the full assignment of the Purchase and Sale Agreements for both properties.
Environmental Analysis
Staff recommend that the City Council find that the additional actions contemplated by this supplemental staff report do not constitute a project under the California Environmental Quality Act for the same reasons and analysis included in the original staff report.
Attachments
The following documents are attached to this addendum and incorporated into the administrative record for Agenda Item No. 15:
1. Assignment Agreements for 2307 Laguna Canyon Road
2. Assignment Agreements for 2535 Laguna Canyon Road
Additional Staff Recommendation
Staff reaffirms its recommendation that the City Council:
Authorize the City Manager to execute the Assignment Agreements, in a form approved by the City Attorney, assigning the City’s Purchase and Sale Agreements for 2307 and 2535 Laguna Canyon Road to the Laguna Beach Community Land Trust. Further, the City Manager is authorized to execute all necessary escrow and title documents, in a form approved by the City Attorney, and to make minor modifications as necessary, to close escrow on the transaction.
ASSIGNMENT AND ASSUMPTION OF
PURCHASE AND SALE AGREEMENT
This ASSIGNMENT AND ASSUMPTION OF PURCHASE AND SALE AGREEMENT (this “Assignment”) is made as of January ___, 2026 (the “Effective Date”), by and among THE CITY OF LAGUNA BEACH, a California municipal corporation (“Assignor”), THE LAGUNA BEACH COMMUNITY LAND TRUST, a California nonprofit corporation (“Assignee”), and PHILIP E. BURKHARDT, Trustee of Trust B under the Burkhardt Family Trust established December 6, 1988 (“Seller”).
RECITALS
A. Seller and Assignor entered into that certain Purchase and Sale Agreement dated as of January 16, 2025 (as amended, the “Purchase Agreement”), pursuant to which Assignor agreed to purchase, and Seller agreed to sell, certain real property located at 2307 Laguna Canyon Road, City of Laguna Beach, County of Orange, State of California (the “Property”).
B. Assignor desires to assign to Assignee all of Assignor’s right, title, and interest in, to, and under the Purchase Agreement, and Assignee desires to accept such assignment and assume all obligations of the “Purchaser” under the Purchase Agreement, upon the terms and conditions set forth herein.
C. Seller has consented to such assignment and assumption and has agreed to release Assignor from any and all obligations and liabilities arising under the Purchase Agreement from and after the Effective Date, subject to the terms of this Assignment.
NOW, THEREFORE, in consideration of the foregoing Recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Assignment. Effective as of the Effective Date, Assignor hereby assigns, transfers, and conveys to Assignee all of Assignor’s right, title, and interest in, to, and under the Purchase Agreement, including all rights, benefits, and privileges thereunder.
2. Assumption. Assignee hereby accepts the assignment of the Purchase Agreement and assumes and agrees to perform and discharge all duties, obligations, liabilities, and responsibilities of the “Purchaser” under the Purchase Agreement arising from and after the Effective Date.
3. Consent. Seller hereby consents to the assignment of the Purchase Agreement to Assignee and acknowledges Assignee as the substituted purchaser thereunder. Effective as of the Effective Date, Seller hereby irrevocably releases and discharges Assignor from any and all obligations, liabilities, claims, and demands arising under or in connection with the Purchase Agreement, whether accruing before or after the Effective Date; provided, however, that Assignor shall remain liable for any obligations expressly stated in the Purchase Agreement to survive termination or assignment, if any.
4. Representations.
(a) Assignor represents that it is the current “Purchaser” under the Purchase Agreement and has not previously assigned the Purchase Agreement. (b) Assignee represents that it has full power and authority to enter into this Assignment and to perform the obligations assumed hereby.
5. No Modification. Except as expressly provided herein, the Purchase Agreement remains unmodified and in full force and effect.
6. Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of California.
7. Counterparts. This Assignment may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.
Electronic and facsimile signatures shall be deemed originals.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the Effective Date first written above.
ASSIGNOR:
CITY OF LAGUNA BEACH, a California
municipal corporation
____________________________________
Name: ______________________________
Title: ______________________________
ASSIGNEE:
THE LAGUNA BEACH COMMUNITY
LAND TRUST, a California nonprofit
corporation
________________________________
Name: ______________________________
Title: ______________________________
SELLER:
TRUST B UNDER THE BURKHARDT
FAMILY TRUST established December 6,
1988
____________________________________
Name: ______________________________
Title: ______________________________
ASSIGNMENT AND ASSUMPTION OF
PURCHASE AND SALE AGREEMENT
This ASSIGNMENT AND ASSUMPTION OF PURCHASE AND SALE AGREEMENT (this “Assignment”) is made as of January ___, 2026 (the “Effective Date”), by and among THE CITY OF LAGUNA BEACH, a California municipal corporation (“Assignor”), THE LAGUNA BEACH COMMUNITY LAND TRUST, a California nonprofit corporation (“Assignee”), and PHILIP E. BURKHARDT, Trustee of Trust A under the Burkhardt Family Trust established December 6, 1988 (“Seller”).
RECITALS
A. Seller and Assignor entered into that certain Purchase and Sale Agreement dated as of January 16, 2025 (as amended, the “Purchase Agreement”), pursuant to which Assignor agreed to purchase, and Seller agreed to sell, certain real property located at 2535 Laguna Canyon Road, City of Laguna Beach, County of Orange, State of California (the “Property”).
B. Assignor desires to assign to Assignee all of Assignor’s right, title, and interest in, to, and under the Purchase Agreement, and Assignee desires to accept such assignment and assume all obligations of the “Purchaser” under the Purchase Agreement, upon the terms and conditions set forth herein.
C. Seller has consented to such assignment and assumption and has agreed to release Assignor from any and all obligations and liabilities arising under the Purchase Agreement from and after the Effective Date, subject to the terms of this Assignment.
NOW, THEREFORE, in consideration of the foregoing Recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Assignment. Effective as of the Effective Date, Assignor hereby assigns, transfers, and conveys to Assignee all of Assignor’s right, title, and interest in, to, and under the Purchase Agreement, including all rights, benefits, and privileges thereunder.
2. Assumption. Assignee hereby accepts the assignment of the Purchase Agreement and assumes and agrees to perform and discharge all duties, obligations, liabilities, and responsibilities of the “Purchaser” under the Purchase Agreement arising from and after the Effective Date.
3. Consent. Seller hereby consents to the assignment of the Purchase Agreement to Assignee and acknowledges Assignee as the substituted purchaser thereunder. Effective as of the Effective Date, Seller hereby irrevocably releases and discharges Assignor from any and all obligations, liabilities, claims, and demands arising under or in connection with the Purchase Agreement, whether accruing before or after the Effective Date; provided, however, that Assignor shall remain liable for any obligations expressly stated in the Purchase Agreement to survive termination or assignment, if any.
4. Representations.
(a) Assignor represents that it is the current “Purchaser” under the Purchase Agreement and has not previously assigned the Purchase Agreement. (b) Assignee represents that it has full power and authority to enter into this Assignment and to perform the obligations assumed hereby.
5. No Modification. Except as expressly provided herein, the Purchase Agreement remains unmodified and in full force and effect.
6. Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of California.
7. Counterparts. This Assignment may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.
Electronic and facsimile signatures shall be deemed originals.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the Effective Date first written above.
ASSIGNOR:
CITY OF LAGUNA BEACH, a California
municipal corporation
____________________________________
Name: ______________________________
Title: ______________________________
ASSIGNEE:
THE LAGUNA BEACH COMMUNITY
LAND TRUST, a California nonprofit
corporation
________________________________
Name: ______________________________
Title: ______________________________
SELLER:
TRUST A UNDER THE BURKHARDT
FAMILY TRUST established December 6,
1988
____________________________________
Name: ______________________________
Title: ______________________________
ASSIGNMENT AND ASSUMPTION OF
PURCHASE AND SALE AGREEMENT
This ASSIGNMENT AND ASSUMPTION OF PURCHASE AND SALE AGREEMENT (this “Assignment”) is made as of January ___, 2026 (the “Effective Date”), by and among THE CITY OF LAGUNA BEACH, a California municipal corporation (“Assignor”), THE LAGUNA BEACH COMMUNITY LAND TRUST, a California nonprofit corporation (“Assignee”), and PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988 (“Seller”).
RECITALS
A. Seller and Assignor entered into that certain Purchase and Sale Agreement dated as of January 16, 2025 (as amended, the “Purchase Agreement”), pursuant to which Assignor agreed to purchase, and Seller agreed to sell, certain real property located at 2307 Laguna Canyon Road, City of Laguna Beach, County of Orange, State of California (the “Property”).
B. Assignor desires to assign to Assignee all of Assignor’s right, title, and interest in, to, and under the Purchase Agreement, and Assignee desires to accept such assignment and assume all obligations of the “Purchaser” under the Purchase Agreement, upon the terms and conditions set forth herein.
C. Seller has consented to such assignment and assumption and has agreed to release Assignor from any and all obligations and liabilities arising under the Purchase Agreement from and after the Effective Date, subject to the terms of this Assignment.
NOW, THEREFORE, in consideration of the foregoing Recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Assignment. Effective as of the Effective Date, Assignor hereby assigns, transfers, and conveys to Assignee all of Assignor’s right, title, and interest in, to, and under the Purchase Agreement, including all rights, benefits, and privileges thereunder.
2. Assumption. Assignee hereby accepts the assignment of the Purchase Agreement and assumes and agrees to perform and discharge all duties, obligations, liabilities, and responsibilities of the “Purchaser” under the Purchase Agreement arising from and after the Effective Date.
3. Consent. Seller hereby consents to the assignment of the Purchase Agreement to Assignee and acknowledges Assignee as the substituted purchaser thereunder. Effective as of the Effective Date, Seller hereby irrevocably releases and discharges Assignor from any and all obligations, liabilities, claims, and demands arising under or in connection with the Purchase Agreement, whether accruing before or after the Effective Date; provided, however, that Assignor shall remain liable for any obligations expressly stated in the Purchase Agreement to survive termination or assignment, if any.
4. Representations.
(a) Assignor represents that it is the current “Purchaser” under the Purchase Agreement and has not previously assigned the Purchase Agreement. (b) Assignee represents that it has full power and authority to enter into this Assignment and to perform the obligations assumed hereby.
5. No Modification. Except as expressly provided herein, the Purchase Agreement remains unmodified and in full force and effect.
6. Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of California.
7. Counterparts. This Assignment may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.
Electronic and facsimile signatures shall be deemed originals.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the Effective Date first written above.
ASSIGNOR:
CITY OF LAGUNA BEACH, a California
municipal corporation
____________________________________
Name: ______________________________
Title: ______________________________
ASSIGNEE:
THE LAGUNA BEACH COMMUNITY
LAND TRUST, a California nonprofit
corporation
________________________________
Name: ______________________________
Title: ______________________________
SELLER:
TRUST C UNDER THE BURKHARDT
FAMILY TRUST established December 6,
1988
____________________________________
Name: ______________________________
Title: ______________________________
ASSIGNMENT AND ASSUMPTION OF
PURCHASE AND SALE AGREEMENT
This ASSIGNMENT AND ASSUMPTION OF PURCHASE AND SALE AGREEMENT (this “Assignment”) is made as of January ___, 2026 (the “Effective Date”), by and among THE CITY OF LAGUNA BEACH, a California municipal corporation (“Assignor”), THE LAGUNA BEACH COMMUNITY LAND TRUST, a California nonprofit corporation (“Assignee”), and PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988 (“Seller”).
RECITALS
A. Seller and Assignor entered into that certain Purchase and Sale Agreement dated as of January 16, 2025 (as amended, the “Purchase Agreement”), pursuant to which Assignor agreed to purchase, and Seller agreed to sell, certain real property located at 2535 Laguna Canyon Road, City of Laguna Beach, County of Orange, State of California (the “Property”).
B. Assignor desires to assign to Assignee all of Assignor’s right, title, and interest in, to, and under the Purchase Agreement, and Assignee desires to accept such assignment and assume all obligations of the “Purchaser” under the Purchase Agreement, upon the terms and conditions set forth herein.
C. Seller has consented to such assignment and assumption and has agreed to release Assignor from any and all obligations and liabilities arising under the Purchase Agreement from and after the Effective Date, subject to the terms of this Assignment.
NOW, THEREFORE, in consideration of the foregoing Recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Assignment. Effective as of the Effective Date, Assignor hereby assigns, transfers, and conveys to Assignee all of Assignor’s right, title, and interest in, to, and under the Purchase Agreement, including all rights, benefits, and privileges thereunder.
2. Assumption. Assignee hereby accepts the assignment of the Purchase Agreement and assumes and agrees to perform and discharge all duties, obligations, liabilities, and responsibilities of the “Purchaser” under the Purchase Agreement arising from and after the Effective Date.
3. Consent. Seller hereby consents to the assignment of the Purchase Agreement to Assignee and acknowledges Assignee as the substituted purchaser thereunder. Effective as of the Effective Date, Seller hereby irrevocably releases and discharges Assignor from any and all obligations, liabilities, claims, and demands arising under or in connection with the Purchase Agreement, whether accruing before or after the Effective Date; provided, however, that Assignor shall remain liable for any obligations expressly stated in the Purchase Agreement to survive termination or assignment, if any.
4. Representations.
(a) Assignor represents that it is the current “Purchaser” under the Purchase Agreement and has not previously assigned the Purchase Agreement. (b) Assignee represents that it has full power and authority to enter into this Assignment and to perform the obligations assumed hereby.
5. No Modification. Except as expressly provided herein, the Purchase Agreement remains unmodified and in full force and effect.
6. Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of California.
7. Counterparts. This Assignment may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.
Electronic and facsimile signatures shall be deemed originals.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the Effective Date first written above.
ASSIGNOR:
CITY OF LAGUNA BEACH, a California
municipal corporation
____________________________________
Name: ______________________________
Title: ______________________________
ASSIGNEE:
THE LAGUNA BEACH COMMUNITY
LAND TRUST, a California nonprofit
corporation
________________________________
Name: ______________________________
Title: ______________________________
SELLER:
TRUST C UNDER THE BURKHARDT
FAMILY TRUST established December 6,
1988
____________________________________
Name: ______________________________
Title: ______________________________