STAFF REPORT
Meeting Date:
May 26, 2026
CONSENT
14 SUBJECT: 238 CHIQUITA STREET: RATIFICATION OF RESOLUTIONS REGARDING
THE PUBLIC HEARING FOR APPEAL OF DESIGN REVIEW BOARD DENIAL OF COASTAL DEVELOPMENT PERMIT 2026-0148 FOR A DETACHED
ACCESSORY DWELLING UNIT IN THE R-2, RESIDENTIAL MEDIUM DENSITY ZONE AT 238 CHIQUITA STREET, AND FINDING THAT THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT DOES NOT APPLY TO PROJECTS THAT
ARE DISAPPROVED
RECOMMENDATION: It is recommended that the City Council:
1. Review and adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LAGUNA BEACH, CALIFORNIA, DENYING THE APPEAL AND SUSTAINING THE DESIGN REVIEW BOARD’S DENIAL OF COASTAL DEVELOPMENT PERMIT 2026- 0148 FOR A DETACHED ACCESSORY DWELLING UNIT IN THE R-2, RESIDENTIAL
MEDIUM DENSITY ZONE, AND DETERMINING THAT THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT DOES NOT APPLY TO PROJECTS THAT ARE DISAPPROVED”, upholding the Design Review Board’s denial of Coastal Development Permit 2026-0148, and finding the denial of the Project exempt from CEQA.
SUMMARY OF THE MATTER/DISCUSSION
On May 13, 2026, the City Council conducted a public hearing regarding the appeal of the Design Review Board’s denial of Coastal Development Permit 2026-0148 for the property located at 238 Chiquita Street.
The purpose of this item is to provide the City Council with an updated resolution of denial consistent with the additional analysis, deliberations and findings by the City Council during the May 13, 2026 appeal hearing. While explained in more detail in the attached amended Resolutions 2026-0148, the added analysis, deliberations, and findings include further discussion on the Mills Act contract, the property tax subsidy the Appellant receives per the Mills Act contract, and the City’s attempt at harmonizing its obligations under the Coastal Act and State ADU Law.
The previous staff report and attachments can be found at:
https://lagunabeachcity.primegov.com/Portal/Meeting?meetingTemplateId=768 .
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
ENVIRONMENTAL ANALYSIS
238 CHIQUITA STREET: RATIFICATION OF RESOLUTIONS REGARDING THE PUBLIC
HEARING FOR APPEAL OF DESIGN REVIEW BOARD DENIAL OF COASTAL DEVELOPMENT PERMIT 2026-0148 FOR A DETACHED ACCESSORY DWELLING UNIT IN THE R-2, RESIDENTIAL MEDIUM DENSITY ZONE AT 238 CHIQUITA STREET, AND
FINDING THAT THE CALIFORNIA ENVIRONMENTAL QUALITY ACT DOES NOT APPLY
TO PROJECTS THAT ARE DISAPPROVED
May 26, 2026
Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the proposed project is not subject to environmental review. CEQA Guidelines Section 15270 provides that CEQA does not apply to projects which a public agency rejects or disapproves. Specifically, Section 15270(a) states that CEQA “does not apply to projects which a public agency rejects or disapproves.” In addition, Public Resources Code Section 21080(b)(5) similarly provides that CEQA does not apply where a project is denied. Here, the Design Review Board adopted Resolution No. 2026-0148 denying Coastal Development Permit 2026-0148 for the proposed accessory dwelling unit at 238 Chiquita Street. Because the project has been denied, no development will occur, and there is no potential for resulting physical environmental impacts. Accordingly, the action is not subject to CEQA.
ATTACHMENTS
1. Amended Resolution 2026-0148 (Clean) (Pgs. 3-74)
2. Amended Resolution 2026-0148 (Redline) (Pgs. 75-146) Submitted By: Patrick Donegan Approved: .David A Kiff
Patrick Donegan, Assistant City
Attorney
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Patrick Donegan, Assistant City Attorney