STAFF REPORT
Meeting Date:
March 24, 2026
NOT APPEAL
20 SUBJECT: 2825 AND 2851 LAGUNA CANYON ROAD: PUBLIC HEARING FOR LOT LINE ADJUSTMENT 2026-0043 AND COASTAL DEVELOPMENT PERMIT 2026-0477
TO MERGE TWO LOTS, AND FINDING NO SUBSEQUENT ENVIRONMENTAL
REVIEW FOR THE PROJECT IS REQUIRED PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15162
RECOMMENDATION: It is recommended that the City Council:
1. Conduct a Public Hearing, including receiving a staff report and taking public testimony and evidence related to the consideration of Lot Line Adjustment 2026-0043 and Coastal Development Permit 2026-0477; and
2. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, APPROVING LOT LINE ADJUSTMENT 2026-0043 AND COASTAL DEVELOPMENT PERMIT 2026-0477 TO MERGE TWO LOTS LOCATED AT 2825 AND 2851 LAGUNA CANYON ROAD, AND FINDING NO SUBSEQUENT
ENVIRONMENTAL REVIEW FOR THE PROJECT IS REQUIRED PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15162”, approving Lot Line Adjustment 2026-0043 and Coastal Development Permit 2026-0477 to merge two lots located at 2825 and 2851 Laguna Canyon Road, and finding no subsequent environmental review for the Project is required due to the Initial Study/Mitigated Negative Declaration adopted by the Planning Commission on September 20, 2023, pursuant to State CEQA Guidelines Section 15162.
SUMMARY OF THE MATTER
Krista Scheib, Architect (“Applicant”)1, for 2825 and 2851 Laguna Canyon Road (the “Property”), applied for Lot Line Adjustment (“LLA”) 2026-0043 and Coastal Development Permit (“CDP”) 2026-0477 to merge two adjoining lots located at 2825 and 2851 Laguna Canyon Road (Parcel 1 and Parcel 2, respectively) by removing a common interior lot line to create one parcel consisting of 3.62 acres or 157,900 square feet in the M-1A (Light Industrial) zone (the “Project”). Refer to Figures 1 and 2, below, for the existing and proposed lot lines.
1 The Project’s owner is Laguna College of Art and Design (“LCAD”) and is represented by Lisa Dallendorfer, who is within the definition of Applicant.
LOT LINE ADJUSTMENT 2026-0043 AND COASTAL DEVELOPMENT PERMIT 2026-0477 AT 2825 AND 2851 LAGUNA CANYON ROAD
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Figure 1 Figure 2
DISCUSSION
Background
The properties at 2825 and 2851 Laguna Canyon Road are developed with existing structures that act as facilities for LCAD as well as an ancillary surface parking lot. On September 20, 2023, the Planning Commission (“Commission”) adopted Resolution No. 23-0998 to approve Conditional Use Permit (“CUP”) 23-0998, Design Review (“DR”) 23-0999, and CDP 23-1000 to demolish an existing and currently unoccupied light industrial building at the rear of the site, construct a new student center building (the “Innovation Center”) that will extend across the shared property line between the existing Parcel 1 and Parcel 2, and construct site improvements including parking lot and landscaping modifications. There are two existing buildings that are used for LCAD’s animation, game art, and graphic design curriculum of the college, two multi-purpose galleries, and student union; in accordance with the 2023 approval, these two buildings are to remain. In conjunction with the Commission’s approval of CUP 23-0998, DR 23-0999, and CDP 23-1000, the Commission adopted an Initial Study/Mitigated Negative Declaration (“IS/MND”) pursuant to the California Environmental Quality Act (“CEQA”) Guidelines.3 Condition No. 27 of Commission Resolution No. 23-0998 requires that the lot line adjustment be effectuated prior to issuance of a building or grading permit.4 (Attachment 2). On October 4, 2023, the City received an appeal of the 3 The Final IS/MND with appendices is available for review on the City’s website:
https://www.lagunabeachcity.net/government/departments/community-development/planning-zoning/public-notices 4 Resolution No. 23-0998, Condition No. 27: “The permittee shall submit an application for City approval for a Lot Line Adjustment to combine the two affected parcels at 2825 to 2851 Laguna Canyon Road. The Lot Line Adjustment shall be effectuated prior to issuance of a building or grading permit.” Existing Lot Lines Proposed Lot Lines
Parcel 1 Parcel 2
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Planning Commission’s decision. That appeal was subsequently requested to be withdrawn by the appellant on October 26, 2023, which the City Council approved on December 12, 2023.
Building and grading permits have not yet been issued for the new Innovation Center. As of the preparation of this agenda report, certain trees have been removed in accordance with the approved landscape plan and under the observation of an arborist and biologist.
Lot Line Adjustment 2026-0043
On November 19, 2025, the Applicant applied for a lot line adjustment to merge Parcel 1 and Parcel 2 for the Project. (The Application and Lot Line Adjustment Exhibits are attached as Attachments 3 and 4, respectively.) The purpose of the proposed lot line adjustment is to ensure that the demolition of the existing and currently unoccupied light industrial building at the rear of the site, construction of the new Innovation Center that will extend across the shared property line between the existing Parcel 1 and Parcel 2, and construction of the site improvements including parking lot and landscaping modifications comply with applicable Zoning and Building Codes
Pursuant to Laguna Beach Municipal Code (“LBMC”) Section 21.08.030 and in accordance with California Government Code Section 66412(d) and Government Code Section 66499.20.3, lot line adjustments and mergers are exempt from the requirements of the Subdivision Map Act and the City’s Subdivision Ordinance, provided that the adjustment is approved by the City Council and satisfies the following requirements:
(a) The project site described in the proposal consists of legal building sites as defined in Title 25 (Zoning) of this code.
The Project site consists of merging two legal building sites as defined in Title 25 (Zoning) of the Laguna Beach Municipal Code. Both building sites are developed; specifically, existing Parcel 1 is improved with three existing buildings and site improvements including a surface parking lot and existing Parcel 2 is improved with a parking lot, which extends across the existing center lot line and provides a majority of the Property’s off- parking supply. (b) The proposal does not create one or more building site(s).
The Project consisting of the lot line adjustment does not create one or more building sites in that both existing parcels are building sites and the Project consisting of the lot line adjustment would merge two adjoining lots by removing a common lot line, resulting in one total parcel. (c) Any land taken from one site will be added to an adjacent site and no additional sites will result from the lot line adjustment.
The Project consisting of the lot line adjustment will reduce the total number of building sites from two parcels to one parcel with the removal of a common lot line between the two parcels; therefore, no additional sites will be created. Existing Parcel 1 and Parcel 2 together total approximately 3.62 acres (approximately 157,900 square feet), and the proposed Parcel 1 would retain the same overall land area.
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(d) The project complies with the requirements of the California Environmental Quality Act.
The Project complies with the requirements of the California Environmental Quality Act. On September 20, 2023, the Commission adopted Resolution No. 23-0998 approving CUP 23-0998, DR 23-0999, and CDP 23-1000 to demolish an existing and currently unoccupied light industrial building at the rear of the site, to construct the Innovation Center that will extend across the shared property line between the existing Parcel 1 and Parcel 2, and to construct site improvements including parking lot and landscaping modifications. Condition No. 27 of Commission Resolution No. 23-0998 required that the lot line adjustment be effectuated prior to issuance of a building or grading permit. Therefore, the lot line adjustment was considered part of the “project” for purposes of CEQA. On September 20, 2023, the Commission also adopted an IS/MND for the project pursuant to CEQA. No subsequent environmental review for the project is required because, based on substantial evidence: (1) substantial changes are not proposed in the project; (2) substantial changes have not occurred with respect to the circumstances under which the project was undertaken; and (3) no new information of substantial importance (which was unknown and could not have been known with the exercise of reasonable diligence at the time the IS/MND was adopted, shows that additional environmental review is warranted. (See State CEQA Guidelines Section 15162(c).) Accordingly, the Project complies with the requirements of the California Environmental Quality Act. (e) The proposal is consistent with the General Plan.
The Project consisting of the lot line adjustment is consistent with the General Plan, including the certified Local Coastal Program. Policy 10.10 of the Land Use Element states: “Prohibit lot line adjustments that are inconsistent with the Municipal Code, General Plan, and Subdivision Map Act.
Existing building sites which maintain a legal nonconforming lot or lots may adjust the lot lines provided that the adjustment does adversely increase the extent of nonconformities.” The Project consisting of the lot line adjustment involves a merger of two existing legal building sites, with the resulting singular lot in compliance with the Municipal Code and General Plan, including Land Use Element Policy 10.10. The Project consisting of the lot line adjustment also complies with the Subdivision Map Act because the lot line adjustment is for “four or fewer existing adjoining parcels” and the lot line adjustment will be effectuated with a recording of the merger with the County. (Gov.
Code Sections 66412(d) and 66499.20.3.)
(f) The parcels proposed to be adjusted by the lot line adjustment comply with all applicable zoning regulations or, in the case of existing, legal nonconforming lots, do not significantly or adversely increase the extent of such nonconformity.
The parcels proposed to be merged by the lot line adjustment comply with all applicable zoning regulations or, in the case of existing, legal nonconforming lots, do not significantly or adversely increase the extent of such nonconformity. The M-1A, Light Industrial Zone requires that each building site provide a minimum lot area of 5,700 square feet, with a minimum lot width of 50 feet. The proposed resulting singular building site would have an area of 157,900 square feet, and an approximate lot width of 450 feet. The resultant lot is therefore in conformance with all lot requirements for the M-1A Zone.
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(g) The lot line adjustment, in and of itself, will not result in the need for additional improvements and/or facilities.
The lot line adjustment, in and of itself, will not result in the need for additional improvements and/or facilities because it would not affect existing or planned vehicular access to either lot and no additional building sites would be created. Rather, the effectuation of the Project consisting of the lot line adjustment will satisfy Condition No. 27 of Resolution No. 23-0998, which was imposed to ensure that the Innovation Center and related site improvements comply with applicable Zoning and Building Codes.
(h) The proposal does not include any lots or parcels created illegally.
The Project consisting of the lot line adjustment does not include any lots or parcels created illegally in that the subject lots were legally created with Parcel Map No. 82-655, in the City of Laguna Beach, County of Orange, State of California, as shown on a map filed in Book 178, Pages 46 and 47 of Parcel Maps, in the office of the County Recorder of said County. (i) The project does not impair any existing access, create a need for new access, impair any existing easements or create a need for any new easements serving any adjacent lots or parcels.
The Project consisting of the lot line adjustment will not impair any existing access nor create a need for new access, as the access to the resulting singular lot will not change. Moreover, the adjustment would not impair any existing easements nor create a need for new easements serving adjacent lots. The access and easements needed were already evaluated based on the proposed Innovation Center and related site improvements, approved by Resolution No. 23-0998. The effectuation of the Project consisting of the lot line adjustment will satisfy Condition No. 27 of Resolution No. 23-0998, which was imposed to ensure that the Innovation Center and related site improvements comply with applicable Zoning and Building Codes.
Coastal Development Permit 26-0477
The proposed lot line adjustment constitutes development for which a coastal development permit is required. The City Council’s determination is not appealable to the California Coastal Commission. To ensure compliance with the City’s certified Local Coastal Program, the Project has been reviewed for conformity with the criteria set forth in LBMC Section 25.07.012(F). A coastal development permit application may be approved only after the approval authority has reviewed the Project and made all of the following findings (LBMC Section 25.07.012(G)):
(1) The project is in conformity with all the applicable provisions of the certified local coastal program, including the following review criteria:
a. 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.
The Project consisting of the lot line adjustment will not modify any existing physical accessway utilized by the public or identified in the adopted Local Coastal Program land use plan in that the LOT LINE ADJUSTMENT 2026-0043 AND COASTAL DEVELOPMENT PERMIT 2026-0477 AT 2825 AND 2851 LAGUNA CANYON ROAD
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adjustment would merge two privately owned industrial lots with no existing physical accessways legally utilized by the public, and no such public accessways are identified as proposed in the adopted land use plan.
b. The proposed development will not adversely affect marine resources, environmentally sensitive areas, or archaeological or paleontological resources.
The proposed Project consisting of the lot line adjustment would not adversely affect marine resources, environmentally sensitive areas, or archaeological or paleontological resources because the Project consisting of the lot line adjustment is part of a broader development project that was evaluated in an IS/MND adopted by the Commission on September 20, 2023. The IS/MND was supported by technical studies, including an Archaeological and Tribal Cultural Resources Sensitivity Assessment and a Biological Technical Report, and concluded that with implementation of adopted mitigation measures, all potentially significant environmental impacts would be reduced to a level of insignificance.
Regarding archaeological (including tribal cultural) and paleontological resources, the IS/MND determined that the site has low sensitivity for historic-period (non-Native American) archaeological resources, but moderate to high sensitivity for prehistoric and historic Native American–affiliated archaeological resources. To ensure impacts remain less than significant, the IS/MND includes mitigation measures requiring monitoring of ground-disturbing activities in all intact, native (i.e., not previously disturbed) soils by a qualified archaeologist, along with appropriate procedures to be implemented if resources are encountered during construction.
With respect to environmentally sensitive areas and biological resources, the IS/MND found that the majority of the approximately 3.6-acre site is already disturbed/developed (parking areas, ornamental landscaping, and existing buildings), with planted and landscaped vegetation (including eucalyptus) occurring within the Laguna Canyon Road right-of-way. Biological resources of value occur in coast live oak woodland habitat along the southern boundary of the site and within the biological study area, primarily along the southern, southeastern, and northeastern boundaries. The IS/MND concluded that potential impacts to these resources would be less than significant with implementation of adopted mitigation measures, including biological monitoring during ground disturbance and vegetation removal activities.
With respect to marine resources, there is no potential for adverse effects because the Project site is located approximately 1.7 miles inland from the coast and the Project would not affect the marine environment.
c. The proposed development will not adversely affect recreational or visitor-serving facilities or coastal scenic resources.
The proposed Project will not adversely affect recreational or visitor-serving facilities or coastal scenic resources in that the Project is limited to a lot line adjustment to satisfy Condition No. 27 of Commission-adopted Resolution No. 23-0998, which was imposed to ensure that the Innovation LOT LINE ADJUSTMENT 2026-0043 AND COASTAL DEVELOPMENT PERMIT 2026-0477 AT 2825 AND 2851 LAGUNA CANYON ROAD
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Center complies with applicable Zoning and Building Codes. Although the site abuts a public hiking trail within the Aliso and Wood Canyons Wilderness Park that climbs the canyon wall directly behind the Project area, the Project merely satisfies a procedural requirement for the approved development project and does not change the design, configuration, or intensity of the development, and there would be no adverse impact to the trail.
d. 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.
The proposed Project will have no adverse impacts to environmentally sensitive habitats and scenic resources located in adjacent parks and recreation areas in that the Project is limited to a lot line adjustment to satisfy Condition No. 27 of Commission-adopted Resolution No. 23-0998, which was imposed to ensure that the Innovation Center complies with applicable Zoning and Building Codes.
While the Project site abuts sensitive coast live oak woodland habitat and would be visible from a nearby trail in the Aliso and Woods Canyons Wilderness Park, the adopted IS/MND for the development of the Innovation Center found that environmental impacts will be less than significant with the implementation of the mitigation measures adopted by the Commission on September 20, 2023. Finally, because the Project is limited to a lot line adjustment associated with the previously approved development project, the Project does not introduce any unstudied impacts to environmentally sensitive habitats or scenic resources. e. 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.
The proposed Project will not cause or contribute to the alteration of natural landforms or create undue risks from geological and erosional forces and/or flood and fire hazards in that the Project consisting of the lot line adjustment is limited to a lot line adjustment to satisfy Condition No. 27 of Commission-adopted Resolution No. 23-0998, which was imposed to ensure that the Innovation Center complies with applicable Zoning and Building Codes. Therefore, while the Project site is located in FEMA-designated flood zones X (moderate hazard) and AE (1% annual chance of flooding) and is also located in the Fuel Modification Zone and Very High Fire Hazard Severity Zone, the Project has no material effect on the risks of these hazards. f. 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.
The Project consisting of the lot line adjustment would have no effect on the existing site’s visual compatibility with the character of the surrounding neighborhood. The proposed Project is limited to a lot line adjustment to satisfy Condition No. 27 of Commission-adopted Resolution No. 23-0998, which was imposed to ensure that the Innovation Center complies with applicable Zoning and Building Codes.
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g. The proposed development will not have any adverse impacts on any known archaeological or paleontological resource.
The proposed Project will not have any adverse impacts on any known archaeological or paleontological resource because the Project consisting of the lot line adjustment is part of a broader development project that was evaluated in an IS/MND adopted by the Commission on September 20, 2023. The IS/MND was supported by technical studies, including an Archaeological and Tribal Cultural Resources Sensitivity Assessment, and concluded that with implementation of adopted mitigation measures, all potentially significant environmental impacts would be reduced to a level of insignificance. Specifically, the IS/MND determined that the site has low sensitivity for historicperiod (non-Native American) archaeological resources, but moderate to high sensitivity for prehistoric and historic Native American–affiliated archaeological resources. To ensure impacts remain less than significant, the IS/MND includes mitigation measures requiring monitoring of ground-disturbing activities in all intact, native (i.e., not previously disturbed) soils by a qualified archaeologist, along with appropriate procedures to be implemented if resources are encountered during construction.
h. The proposed development will be provided with adequate utilities, access roads, drainage and other necessary facilities.
The proposed Project will be provided with adequate utilities, access roads, drainage and other necessary facilities because the Project is limited to a lot line adjustment to satisfy Condition No. 27 of Commission-adopted Resolution No. 23-0998, which was imposed to ensure that the Innovation Center complies with applicable Zoning and Building Codes. The Project site is already developed and maintains existing access to and from Laguna Canyon Road. There are no new or increased needs for utilities, access, drainage or other facilities as a result of the Project. i. 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.
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 because the Project is limited to a lot line adjustment to satisfy Condition No. 27 of Commission-adopted Resolution No. 23-0998, which was imposed to ensure that the Innovation Center complies with applicable Zoning and Building Codes. The existing public services are adequate for the approved uses at the Property. (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.
The proposed Project area is not located between the sea and the first public road paralleling the sea, and, therefore, will not conflict with the public access and recreation policies of Chapter 3 of the Coastal Act.
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(3) The proposed development will not have any significant adverse impacts on the environment within the meaning of the California Environmental Quality Act.
The Project consisting of the lot line adjustment will not have any significant adverse impacts on the environment. On September 20, 2023, the Commission adopted Resolution No. 23-0998 approving CUP 23-0998, DR 23-0999, and CDP 23-1000 to demolish an existing and currently unoccupied light industrial building at the rear of the site, to construct the Innovation Center that will extend across the shared property line between the existing Parcel 1 and Parcel 2, and to construct site improvements including parking lot and landscaping modifications. Condition No. 27 of Commission Resolution No. 23-0998 required that the lot line adjustment be effectuated prior to issuance of a building or grading permit. Therefore, the lot line adjustment was considered part of the “project” for purposes of CEQA.
On September 20, 2023, the Commission also adopted an IS/MND pursuant to CEQA. No subsequent environmental review for the project is required because, based on substantial evidence: (1) substantial changes are not proposed in the project; (2) substantial changes have not occurred with respect to the circumstances under which the project was undertaken; and (3) no new information of substantial importance (which was unknown and could not have been known with the exercise of reasonable diligence at the time the IS/MND was adopted, shows that additional environmental review is warranted. (See State CEQA Guidelines Section 15162(c).) Accordingly, the Project complies with the requirements of the California Environmental Quality Act.
Public Notice
Public notice was provided in accordance with LBMC Section 25.07.014(C), which requires that notice of the public hearing be given at least ten calendar days before a hearing by first class mail to any person who has filed a written request thereto, to all property owners within three hundred feet of the proposed Project, to all residents within one hundred feet of the proposed Project, and to the Coastal Commission.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
ENVIRONMENTAL ANALYSIS
The Project complies with the requirements of the California Environmental Quality Act. On September 20, 2023, the Commission adopted Resolution No. 23-0998 approving CUP 23-0998, DR 23-0999, and CDP 23-1000 to demolish an existing and currently unoccupied light industrial building at the rear of the site, to construct the Innovation Center that will extend across the shared property line between the existing Parcel 1 and Parcel 2, and to construct site improvements including parking lot and landscaping modifications. Condition No. 27 of Commission Resolution No. 23-0998 required that the lot line adjustment be effectuated prior to issuance of a building or grading permit. Therefore, the lot line adjustment was considered part of the “project” for purposes of CEQA. On September 20, 2023, the Commission also adopted an IS/MND pursuant to CEQA. No subsequent environmental review for the project is required because, based on substantial evidence: (1) substantial changes are not proposed in the project; (2) substantial changes have not occurred with respect to the circumstances under which the project was undertaken; and (3) no new information of substantial importance (which was unknown and could not have been known with the exercise of reasonable diligence at the time the IS/MND was adopted, shows that LOT LINE ADJUSTMENT 2026-0043 AND COASTAL DEVELOPMENT PERMIT 2026-0477 AT 2825 AND 2851 LAGUNA CANYON ROAD
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additional environmental review is warranted. (See State CEQA Guidelines Section 15162(c).) The Planning Commission’s action on September 20, 2023 is a final decision. Accordingly, the Project complies with the requirements of the California Environmental Quality Act. Should the City Council approve or conditionally approve the Project, City staff will cause to be filed the Notice of Determination with the County of Orange and the State Clearinghouse.
ATTACHMENTS
1. City Council Resolution (Pgs. 11-28)
2. September 20, 2023 Commission Approval Resolution 23-0998 (Pgs. 29-46)
3. Application (Pgs. 47-49)
4. Lot Line Adjustment Exhibits (Pgs. 50-55)
Submitted By: Matthew Schneider Approved: .David A Kiff Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Sammi Montalto, AICP, Associate Planner Jane Abzug, Assistant City Attorney Anthony Viera, Deputy Director of Community
Development