Laguna Beach City Council
July 7, 2026

RESOLUTION NO. 2026-1135

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF LAGUNA BEACH, CALIFORNIA APPROVING
MINISTERIAL DESIGN REVIEW 2026-1135 FOR

DEMOLITION OF AN EXISTING PARSONAGE BUILDING AND

SURFACE PARKING LOT AND CONSTRUCTION OF A
MULTI-FAMILY RESIDENTIAL BUILDING (28 AFFORDABLE
HOUSING RENTAL UNITS AND 1 MANAGER’S UNIT) AND
41-STALL PARKING GARAGE, DESIGN REVIEW 2026-0863
SITE IMPROVEMENTS ASSOCIATED WITH THE MULTIFAMILY RESIDENTIAL BUILDING, INCLUDING GRADING,

RETAINING WALLS, LANDSCAPING, AND ELEVATED DECK,
AND COASTAL DEVELOPMENT PERMIT 2026-0864 FOR

SUCH NON-EXEMPT DEVELOPMENT WITHIN THE
COASTAL ZONE AT 340 ST. ANN’S DRIVE IN THE LOCAL

BUSINESS PROFESSIONAL (LBP) AND RESIDENTIAL
MEDIUM DENSITY (R-2) ZONES;, AND FINDING THAT NO

FURTHER ENVIRONMENTAL REVIEW IS REQUIRED UNDER
STATE CEQA GUIDELINES SECTION 15162 OR,

ALTERNATIVELY, THAT THE HOUSING DEVELOPMENT IS
NOT A “PROJECT” OR IS EXEMPT UNDER GOVERNMENT
CODE SECTIONS 65913.16(C), (B)(12)(b) AND
65913.16(L)(7), RESPECTIVELY.

WHEREAS, on December 9, 2025, an application was filed by The Related Companies of California, LLC for property located at 340 St. Ann’s Drive (“Applicant”), requesting approval of Ministerial Design Review 2026-1135 under SB 4 for demolition of an existing parsonage building and existing surface parking lot and construction of a three-story, 30,690 square-foot multi-family residential building (28 affordable housing rental units and 1 manager’s unit) and 41-stall parking garage (the “Housing Development Project”), Design Review 2026-0863 for more than 20 cubic yards of grading outside the building footprint, retaining walls with more than 5 feet of exposed height, landscaping, and elevated deck (the “Site Improvements”), and Coastal Development Permit 2026-0864 for non-exempt development consisting of the Housing Development Project and Site Improvements in the Coastal Zone (collectively, the “Project”); and
WHEREAS, for purposes of the California Environmental Quality Act, the “project” is defined as the Project, as defined in the first recital, as well as the Planning Commission’s concurrent review of Tentative Parcel Map 2026-0865 to merge four parcels into two parcels, one zoned Local Business Professional (“LBP”) and consisting of the NCC uses for exclusive use of the religious institution, and a second parcel for the Housing Development Project with a split LBP and Residential Medium Density (“R2”) zoning designation (the “Merger”) and Coastal Development Permit 2026-0954 for the non-exempt development, consisting of the Merger, within the coastal zone; and Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 Attachment 3
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WHEREAS, on June 3, 2026, the Planning Commission conducted a duly-noticed public hearing on the Project, including the CEQA finding for the project, pursuant to Title 25, Zoning, of the Laguna Beach Municipal Code. The Planning Commission has considered all public testimony on the proposed Project and all relevant public comments, and all documents and evidence submitted, including but not limited to the staff report, attachments, and materials submitted by the Applicant; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, the Planning Commission of the City of Laguna Beach does hereby find, determine, and resolve as follows:

SECTION 1. The recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

SECTION 2. The Planning Commission hereby finds, in accordance with the California Environmental Quality Act, that the project is within the scope of the development capacity and environmental analysis previously considered in the adopted Housing Element Initial Study/Negative Declaration. Indeed, the City identified the Property as the number 1 site on its inventory in the City’s adopted Housing Element: “The site is currently occupied by the Neighborhood Congregational Church.

The existing buildings on site includes two church buildings built in the 1960s, a small one-story garage, surface parking lots, an interior courtyard, a small exterior patio area, and landscaping. The church leadership indicated it intends to remain as a church; however, the church requested that the City include the site and the associated parking lot in the Housing Element to potentially accommodate affordable housing, with the church remaining on site. The site for the purposes of this section does not include the parking lot, because it measures 0.35 acre in size and is zoned R-2. However, the City will work with the applicant to support appropriate zoning for the adjacent R-2 parcel and would consider this parcel as part of the overall project to encourage the redevelopment of affordable housing on this site. The expressed owner interest, age of the structures, unlimited density with a conditional use permit, and underutilized nature of the parcel make this site suitable for development during the planning period. Proposed New Residential Development Affordable units would be located on a parcel that has a zoning (Local/Business Professional) that allows unlimited density for affordable housing.

With a conservative density of 45 units per acre, the site could yield at minimum 31 lower-income units.” (See Table 4-4 of the City’s adopted Housing Element.) The project proposes 29 residential units within the Housing Development Project, associated Site Improvements, and Merger, which were all contemplated by the Housing Element and analyzed in the City’s Initial Study/Negative Declaration. A Notice of Determination was subsequently filed on January 25, 2022, following City Council approval on January 11, 2022. The project would result in fewer residential units than the capacity analyzed for the site in the Housing Element, and the City has not identified substantial changes to the project, substantial changes in the circumstances under which the project would be undertaken, or new information of substantial importance that would require major revisions to the previously adopted Initial Study/Negative Declaration due to new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Accordingly, no subsequent or Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 105
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supplemental environmental review is required pursuant to Public Resources Code Section 21166 and State CEQA Guidelines Section 15162 are present. As an independent and alternative basis for the City’s CEQA determination, the Planning Commission hereby finds, in accordance with CEQA, that the Housing Development Project component of the project qualifies for streamlined, ministerial treatment under the Affordable Housing on Faith and Higher Education Lands Act of 2023, Government Code section 65913.16, because the Housing Development Project satisfies the eligibility criteria and objective development standards as allowed by that statute and the Density Bonus Law. A qualifying housing development project approved as a “use by right” under Government Code section 65913.16 is not a “project” for purposes of CEQA. (Gov. Code, §65913.16(c), (b)(12)(B).) In addition, the Merger component is statutorily exempt from CEQA pursuant to Government Code section 65913.16, subdivision (l)(7), because the Merger is consistent with the objective subdivision standards in Chapter

21.08 of the Laguna Beach Municipal Code and Density Bonus Law. Based on the above, the Planning Commission hereby directs staff to cause the appropriate CEQA notice(s) to be filed with the County Clerk Recorder’s Office and the Office of Land Use and Climate Innovation within five days of this approval.

SECTION 3. The Planning Commission hereby makes the following findings with respect to Ministerial Design Review 2026-1135:

The Housing Development Project complies with the following State and City objective standards:

Standard Analysis
Senate Bill 4
Definitions for religious institution,
applicant, qualified developer.

The application has submitted
documentation that the project meets all of
the definitions under SB 4, including the
definitions of “religious institution,”
“applicant,” and “qualified developer.”
Deed Restricted. All units, exclusive of
managers’ units, are subject to a recorded
deed restriction for at least the following time
periods: 55 years for rental units, and 45
years for owner-occupied units. (Gov. Code
Section 65913.16(c)(9).)
The application included a draft Regulatory
Agreement for the affordable housing
development for review by the City Attorney’s
Office.

Therefore, based on the information and
documents provided to date in the
Application, the City finds the Application
consistent with this standard.

Environmental Site Assessment. An
applicant must conduct a Phase I
environmental assessment to determine if a
hazardous substance has been released on
the proposed project site. (Gov. Code
The Application provided a Phase I ESA report
that concludes there were no recognized
environmental conditions on the project site
and that a Phase II ESA was not warranted.

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Section 65913.16(c)(13).) If warranted, a
Phase II environmental assessment must
also be conducted. (Id.) If a hazardous
substance is found, then the applicant must
contract with an environmental assessor to
determine if it poses any danger to future
residents. (Id.) If it does, then the hazard
must be removed or mitigated to a level
complying with state and federal
requirements. (Id.)
Therefore, based on the information and
documents provided to date in the
Application, the City finds that the
Application is consistent with this standard.

Density. Parcels located in a zone that
allows residential use. The minimum density
varies based on the type of jurisdiction: 30
units per acre in a metropolitan county.

As the proposed affordable housing
development is 100 percent affordable at the
low-income level, excluding one manager’s
unit, it is eligible for an 80 percent bonus. The
Applicant is requesting a 46 percent density
bonus, less the what is allowed under State
law, allowing for 29 housing units on the 0.66-
acre site.

Height. The permitted height is one story
above the otherwise-allowed local height
limits. If the local government allows for
greater density on the parcel, or greater
density or height is allowed on an adjoining
parcel, the greater density or building height
shall apply. A development also qualifies for
the provisions of State Density Bonus Law,
including incentives, concessions, or waivers
or reductions of development standards and
parking ratios.

The project complies with the applicable
height limits and allowances established
under the LBMC for the R2 and LBP zoning
districts, which permit a maximum building
height of 25 feet. Pursuant to the applicable
height allowance provisions, the proposed
building may exceed the base height limit by
up to 11 feet and has a proposed maximum
height of 36 feet.

Parking. One off-street parking space per
unit is required, unless a state or local law
allows less, except that no parking is required
if the project is located within 0.5-mile
walking distance of either a high-quality
transit corridor or major transit stop or within
1 block of a car share vehicle.

There are currently 69 parking spaces
provided on-site that are available to NCC.

Applicant requests a fifty percent reduction in
the number of religious-use parking spaces,
which would result in 35 religious-use parking
spaces available. The Project proposes a
parking garage with 41 parking stalls which
covers the 35 religious-use parking spaces.

Under SB 4, the Housing Development
Project must provide 29 parking spaces (for
the proposed 29 units). Therefore, the 35
religious use parking spaces are allowed to
count for the 29 parking spaces for the
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Housing Development Project.

Under State Density Bonus law, the applicant
is requesting a reduction in parking
requirements as a development concession.

Ancillary and Previous Uses. Projects
located in a single-family residential zone
may include childcare centers and
recreational, social, or educational facilities
operated by community-based
organizations. All other zones may include
commercial uses that are permitted without
a conditional use permit or planned unit
development permit. The development
project can include any previous use that
existed and was legally permitted if certain
criteria are met (e.g., the project features the
same operational conditions).

The existing Montessori school, originally
approved in 2000 through Conditional Use
Permit No. 00-49, will continue to operate on
the religious institution site.

Prevailing Wage and Labor Requirements.

The housing development project must abide
by prevailing wage requirements (Labor Code
sections 1720-1861), including noticing in
accordance with Labor Code section
1773.35.

The project applicant shall provide prevailing
wages for all labor utilized in the
construction of the project, in accordance
with applicable State labor requirements.

Compliance with this requirement is further
ensured through the inclusion of a condition
of approval in Resolution No. 2026-1135.

Standard Analysis
General Plan
SE Policy S-4.2 Require new developments
and major remodels to retain onsite storm
flows at or below existing conditions.

The project application included a Hydrology
and Hydraulics Study and Water Quality
Management Plan which were reviewed and
approved and ensure the development will
retain storm flows onsite.

OSCE Policy 4F Water Conservation and
Native Plants Ensure that development
encourage water conservation, efficient
irrigation practices and the use of native or
drought tolerant non-invasive plants
appropriate to the local habitat to minimize
the need for fertilizer, pesticides, herbicides
The landscape plans include a palette
consisting of only native and low-water usage
plants.

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and excessive irrigation. Prohibit the use of
invasive plants, and require native plants
appropriate to the local habitat where the
property is in or adjacent to Environmentally
Sensitive Areas (ESAs).

SE Policy S-3.1 Require the preparation of a
geotechnical investigation for applicable
development projects as specified in the
Municipal Code.

The application includes a Geotechnical
Report that was peer reviewed by the City’s
geotechnical consultant. The report
concludes that development of the site is
feasible, provided its recommendations are
incorporated into the final design and
construction.

Transportation, Circulation and Growth
Management Element (TCGME) Policy 2E
Require subdivisions, new commercial
developments and major commercial
renovations to include a traffic impact
analysis which identifies measures to
mitigate any identified impacts.

The application included a Traffic Report
memorandum that was peer reviewed by the
City’s traffic consultant. The analysis and
conclusions of the report support the finding
that the proposed housing development
would not result in significant traffic impacts
to the existing roadway network serving the
project site.

Standard Analysis
Municipal Code
LBMC Title 19 Water Efficient Landscape
Ordinance (WELO). For applicable
landscape installation or rehabilitation
projects subject to Section 19.01.004(a), the
estimated applied water use allowed for the
landscaped area shall not exceed the MAWA
calculated using an ET adjustment factor of

0.55 for residential areas and 0.45 for
nonresidential areas, except for special
landscaped areas where the MAWA is
calculated using an ET adjustment factor of

1.0; or the design of the landscaped area
shall otherwise be shown to be equivalently
water-efficient in a manner acceptable to the
city; as provided in the Guidelines.

The proposed project plans submitted with
the Application demonstrate that the
proposed project meets WELO
requirements, including landscaping,
irrigation, and calculations.

Therefore, based on the information shown
on Sheet L-1 of the submitted plans provided
in the Application, the City finds the
Application consistent with this standard.

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LBMC Title 7 Health and Sanitation.

Outdoor lighting must be hooded, fully
shielded, and aimed downward. (LBMC
Section 7.70.050(b).)
Fixtures not fully shielded shall be allowed
only if less than three thousand Kelvin and/or
seven hundred fifty lumens. (LBMC Section

7.70.060(a).)
The proposed project plans submitted with
the Application depict identified light sources
as shielded and directed downward, as
required by the City’s Good Neighbor
Outdoor Lighting ordinance that requires
shields for lights exceeding 750 lumens.

Therefore, based on the information shown
on Sheets L-2, ELP-1, ELP,-2, and ELP-3 of
the submitted plans provided in the
Application, the City finds the Application
consistent with this standard.

Standard Analysis
Residential Design Guidelines

9.10 Eliminate irrigation runoff by providing
on-site infiltration.

The proposed project plans submitted with
the Application demonstrate that the
proposed project eliminates irrigation runoff
by providing on-site infiltration.

Based on the report information and
documents provided to date in the
Application which was peer-reviewed by the
City’s consultant, GMU Geotechnical Inc.,
the City finds the Application consistent with
this standard.

9.14 Locate mechanical equipment inside of
the structure or at the rear or sides of a
property, observing required setbacks.

Ensure [noise from mechanical equipment]
does not exceed City maximums (see
Municipal Code §7.25)
The proposed project plans submitted with
the Application provide calculations that
demonstrate that the mechanical equipment
in the proposed plans do not exceed City
maximums.

Therefore, based on the information as
shown on Sheet A2.4 of the submitted plans
in the Application, the City finds the
Application consistent with this standard.

9.15 Use low-lumen fixtures.

Use full-cutoff baffles and hood accessories
to direct light.

The proposed project plans submitted with
the Application depict identified light sources
as shielded and directed downward.

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Therefore, based on the information shown
on Sheets L-2, ELP-1, ELP,-2, and ELP-3 of
the submitted plans provided in the
Application, the City finds the Application
consistent with this standard.

SECTION 4. The Planning Commission hereby makes the following findings with respect to Design Review 2026-0863:

Finding No. 1: Physical improvements and site developments related to the Project are designed and located in a manner in overall consistency with the design review criteria specified in Section

25.05.040(H), as set forth below:

1. Access. Conflicts between vehicles, pedestrians and other modes of transportation should be minimized by specifically providing for each applicable mode of transportation. Handicapped access shall be provided as required by applicable statutes.

No changes are proposed to the vehicular access to the site and off-street parking would continue to be provided along Glenneyre Street. The grading and retaining walls of the Site Improvements are designed to enhance overall circulation and ensure safe and efficient movement of vehicles, pedestrians, and other modes of transportation throughout the development. The design emphasizes clear wayfinding, visibility, and safe transitions between parking, residential, and common areas. The landscaping and the elevated deck of the Site Improvements does not result in any conflicts with access. In addition, all Site Improvements will be designed and constructed in compliance with the Americans with Disabilities Act (ADA), ensuring accessible routes of travel, appropriately located accessible parking spaces, and barrier-free access to building entries and key site amenities.

2. Design Articulation: Within the allowable building envelope, the appearance of building and retaining wall mass should be minimized. Articulation techniques including, but not limited to, separation, offsets, terracing and reducing the size of any one element in the structure may be used to reduce the appearance of mass.

The proposed Site improvements consisting of grading, retaining walls, landscaping, and elevated deck collectively serve to reduce the perceived massing of the project and enhance its overall visual integration with the surrounding development. By locating the parking garage underground through site grading, the perceived height and bulk of the development are significantly minimized, ensuring compatibility with the surrounding built environment. Furthermore, the incorporation of retaining walls with metal fencing along Catalina Street, as well as six-foot-high decorative block walls along interior property lines, contributes to the reduction of perceived bulk by providing visual screening.

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Additionally, the proposed landscaping along the Glenneyre Street and Catalina Street frontages, as well as along interior property lines, provides a layered visual buffer that softens views of the building from adjacent public rights-of-way and neighboring properties. This combination of planting materials and site design elements helps to break up building mass and provide a softer edge to the development. Combined, these elements work together to minimize the overall visual impact of the development.

3. Design Integrity: Consistency with the applicant’s chosen style of architecture should be achieved by the use of appropriate materials and details. Remodels should be harmonious with the remaining existing architecture.

The grading of the Site Improvements allows for the parking to be located below grade and allows the site to focus the visual interest on the overall design of the site rather than on utilitarian elements. The retaining walls of the Site Improvements are given architectural treatments through the use of compatible materials, these walls are designed to complement the architectural style of the site. The landscaping of the Site Improvements is used as an additional design element and are strategically located to screen utilitarian components, and highlight key architectural features, thereby strengthening the overall design. The elevated deck of the Site Improvements is similarly integrated into the architectural design and utilizes materials, proportions, and detailing consistent with the overall site design. This ensures that the deck is a seamless extension of the overall architectural concept.

Consequently, the Site Improvements consisting of the proposed grading, retaining walls, landscaping, and elevated deck are integral components of the project’s overall design strategy and achieves a harmonious and cohesive development that is visually compatible with the intended architectural style.

4. Environmental Context: Development should preserve and, where possible, enhance the city’s scenic natural setting. Natural features, such as existing heritage trees, rock out-cropping, ridgelines and significant watercourses should be protected. Existing terrain should be utilized in the design and grading should be minimized.

The project proposes grading and retaining walls of the Site Improvements, which allows the parking garage to be placed below grade, minimizes the need for grading or alteration of the existing terrain. The proposed parking garage utilizes the site’s existing steep downward slope along Catalina Street for the parking garage. Additionally, the proposed landscaping of the Site Improvements is consistent with the existing developed site and neighborhood. The Site Improvements do not involve removal of heritage trees, modification of ridgelines, or encroachment on watercourses. Thus, the project preserves and enhances the City’s scenic natural setting by concentrating development where infrastructure already exists.

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5. General Plan Compliance: The development shall comply with all applicable policies of the General Plan, including all of its elements, applicable specific plans, and the certified local coastal program.

The Project complies with all applicable policies in the City’s General Plan and Local Coastal Program. The project site is not located within any Specific Plan.

Housing Element Policy HE-1.11 Ensure that new housing will be aesthetically compatible with the surrounding environment and compatible with the size, scale and character of development in the neighborhood in which it is located.

The project’s proposed grading, elevated deck, landscaping, and retaining walls contribute to a cohesive site design that ensures aesthetic compatibility with the surrounding residential and commercial uses in the vicinity. These elements are carefully integrated to soften building massing, provide visual transitions, and reinforce a consistent architectural and landscape character along adjacent street frontages and property lines.

Accordingly, the project supports and is consistent with Policy HE-1.11 by ensuring that new development is visually compatible with the existing neighborhood context, maintaining a balanced relationship between the proposed improvements and the existing neighborhood context.

Housing Element Policy HE-2.7 Encourage the production of privately sponsored low- and moderate-income housing projects in residential and mixed-use developments.

The proposed Site Improvements facilitate the development of an affordable housing project that will add 28 rental units to the City’s housing inventory. The project supports and is consistent with Policy HE-2.7 by encouraging and advancing private development of low-income housing units, thereby contributing to the City’s overall housing goals and affordability objectives.

Housing Element Policy HE-2.8 Provide incentives (e.g., density bonus, fee reductions/exemptions, assistance with federal and other funding applications, liberalized development standards, fast-tracking) to developers of projects that include extremely-low-, verylow- and low-income housing units.

The requested incentives for the project facilitate the development of 28 low-income affordable rental housing units. The project is consistent with Policy HE-2.8 by encouraging the production of new housing units through regulatory flexibility that reduces unnecessary development constraints and helps avoid significant cost burdens, thereby supporting the feasibility of affordable housing development.

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HE-2.13: Encourage the expansion of rental housing opportunities in the City.

The proposed Site Improvements will facilitate the addition of 28 new low-income deed-restricted rental units on an existing developed site, thereby increasing the City’s rental housing inventory.

The project directly supports Policy HE-2.13 by expanding rental housing opportunities through the redevelopment efficient use of an infill site.

HE-2.17: Foster opportunities for small scale infill development as a means to expand housing opportunities and incrementally provide affordable housing.

The proposed Site Improvements will facilitate infill development through the addition of 28 new low-income deed-restricted rental units on an existing developed site, thereby increasing the City’s rental housing inventory. The project is consistent with Policy HE-2.17 by making efficient use of an underutilized site and introducing new housing units without the need for significant expansion of existing infrastructure or public services.

Infill development contributes to the City’s overall housing supply by supporting residential use within an urbanized area already served by transit, utilities, and municipal services. The incremental addition of 28 units enhances housing diversity within the community, expands availability, and provides increased options for a range of household types, thereby supporting broader affordability objectives.

HE-3.6: Promote the expansion of housing opportunities throughout the City.

The proposed Site Improvements will facilitate infill development of 28 low-income affordable rental housing units, resulting in a net increase in the City’s overall housing supply. By introducing residential units within an already developed neighborhood, the project expands housing availability in a manner that is compatible with surrounding land uses and the capacity of existing infrastructure and public services.

Land Use Element Goal 6 Provide a diversity of land uses that enhance the community.

The Site Improvements will allow for infill development of a multi-family affordable housing building within an established business and residential corridor. By providing affordable rental units within an urbanized area, the development expands housing availability in a manner that is compatible with surrounding land uses and existing infrastructure and enhances the community.

6. Historic Preservation: Destruction or alteration to historic resources should be avoided whenever possible. See Chapter 25.45 for more information.

There are no historic resources on the property or that would be impacted by the Site Improvements consisting of grading, retaining walls, landscaping, and an elevated deck and Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 114
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therefore this criterion does not apply. The existing structures on the site have not been placed on the National Register, California Register, or Laguna Beach Register and therefore the Project site is eligible for SB 4.

7. Landscaping: Landscaping shall be incorporated as an integrated part of the structure’s design and relate harmoniously to neighborhood and community landscaping themes. View equity shall be an important consideration in the landscape design. The relevant landscaping guidelines contained in the City’s “Landscape and Scenic Highways Resource Document” should be incorporated, as appropriate, in the design and planned maintenance of proposed landscaping.

The proposed landscaping in the Site Improvements is integrated into the overall design of the Project, serving as both a functional and aesthetic component that enhances the site and creates visual interest. Landscaping is strategically located throughout the site to frame architectural elements, define pedestrian pathways, and relate harmoniously to neighborhood. In addition, the proposed landscaping emphasizes sustainability through the use of low-water-use, droughttolerant plant species that are well adapted to the local climate.

The plant palette is diverse and incorporates six different tree species totaling 41 trees, along with 27 varieties of shrubs and groundcover. Of the proposed trees, the Arbutus Marina (Strawberry Tree) is the largest species, reaching a mature height of approximately 40 to 50 feet, and is located exclusively along the interior property lines to provide screening while minimizing view impacts across the site. In addition, two Eucalyptus ficifolia (Red Flowering Gum) and two Agonis flexuosa (Peppermint Tree), each with a mature height of up to approximately 40 feet, are proposed at the site entrance along the primary driveway leading to the parking garage, where they will help define the entry sequence and enhance visual character. Furthermore, nine Podocarpus henkelii (Long Leaf Yellowwood), also reaching heights of approximately 40 feet at maturity, are distributed along the northern, eastern, and southern property lines to provide additional buffering and landscape continuity around the site perimeter.

Collectively, these trees have been carefully sited and spaced to balance the provision of screening and aesthetic enhancement with the preservation of existing view corridors. Their placement is intended to maintain view equity by minimizing potential impacts to coastal and canyon views across and beyond the project site, while still achieving the desired landscape massing, privacy, and visual integration with the surrounding environment. Because the proposed landscaping does not raise view concerns, there is no limitation on height of mature trees or maintenance schedules.

8. Lighting and Glare: Adequate lighting for individual and public safety shall be provided in a manner which does not significantly impact neighboring properties. Reflective materials and appurtenances that cause glare or a negative visual impact (e.g., skylights, white rock roofs, highgloss ceramic tile roofs, reflective glass, etc.) should be avoided or mitigated to a level of insignificance in those locations where those surfaces are visible from neighboring properties.

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As part of the Site Improvements, six landscape lighting fixtures have been included and designed to meet applicable safety and security standards. The fixtures are fully shielded and directed downward to provide effective illumination of pedestrian pathways and key site areas while minimizing light spillover, glare, or adverse visual impacts to the surrounding neighborhood.

9. Neighborhood Compatibility: Development shall be compatible with the existing development in the neighborhood and respect neighborhood character. Neighborhood character is the sum of the qualities that distinguish areas within the City, including historical patterns of development (e.g., structural heights, mass, scale or size), village atmosphere, landscaping themes and architectural styles.

Within the context of the existing development pattern, the Site Improvements consisting of grading, retaining walls, landscaping, and an elevated deck maintains a neighborhood compatibility. The proposed grading, landscaping, and retaining walls reduce the overall massing and visibility from surrounding public vantage points and helps transition the new improvements into the surrounding neighborhood character. The perimeter landscaping and walls provide visual buffering and soften the transition between the project and adjacent residential uses. Furthermore, the Site Improvements are sited behind the existing two-story church buildings located at the higher elevation portion of the site, helping further screen and transition the Site Improvements into the surrounding neighborhood context. Collectively, these elements enhance compatibility with the surrounding context while minimizing perceived bulk and visual contrast.

10. Pedestrian Orientation: Commercial development design shall enhance and encourage pedestrian uses. Incorporation of articulated building masses, compact open spaces and courtyards, mixed use developments, use of landscaping as part of design, and orientation to pedestrian access should be maximized.

Parking and vehicular access would continue to be provided from Glenneyre Street. The Site Improvements enhance pedestrian circulation along the driveway through the incorporation of corner cutbacks on both sides of the 20-foot-wide drive aisle, improving visibility, safety, and pedestrian-vehicle separation at key conflict points. The Site Improvements create pedestrian access paths to and from the site that make it easy to access the parking garage, multifamily residential building, and the range of resident-serving amenities in the area, including retail, dining, and shopping destinations.

11. Privacy: The placement of activity areas (e.g., decks, picture windows and ceremonial or entertainment rooms) in locations that would result in a substantial invasion of privacy of neighboring properties should be minimized.

The Site Improvements, including the landscaping and perimeter retaining walls, provide effective screening and reduce impacts to existing privacy conditions between the project and adjacent residential uses located along the northern, eastern, and southeastern property lines. The Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 116
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installation of approximately 35 trees along these property edges provides further visual separation and enhances privacy between neighboring properties and the proposed development.

The project also includes a 180 sq. ft. elevated deck oriented toward Glenneyre Street, which is set back more than 55 feet from the property line. Given this substantial setback and its street-facing orientation, the deck is not anticipated to create privacy impacts to adjacent properties along the frontage. Overall, there is sufficient separation distance between the proposed development and surrounding residential uses, and combined with the proposed landscaping and retaining walls, the project effectively minimizes potential privacy impacts and maintains compatibility with the surrounding neighborhood context.

12. Public Art: Public art is encouraged and shall be displayed where feasible or required by the Art in Public Places ordinance.

The Project does not trigger the art in public places requirement pursuant to LBMC Section

1.09.040(b)(5), which exempts low-income housing construction from providing public art.

13. Sign Quality: Signs shall be incorporated into the architecture of the structure and shall be made of high quality materials, be simple in design and be visually compatible with the surrounding physical environment in terms of color, scale and size. Use of natural materials in the construction of signs is encouraged.

The Site Improvements do not include any proposed signs.

14. Sustainability: New development should consider architecture and building practices which minimize environmental impacts and enhance energy efficiency by: (a) reducing energy needs of buildings by proper site and structural design; (b) increasing the building’s ability to capture or generate energy; (c) using low-impact, sustainable and recycled building materials; (d) using the latest Best Management Practices regarding waste and water management; and (e) reducing site emissions.

The proposed grading of the Site Improvements minimizes alteration of the existing site topography by locating the residential improvements at the rear portion of the property, where the site naturally slopes downward from Catalina Street. Utilizing the site’s existing grade allows the project to accommodate the proposed residential density while reducing the extent of cut and grading necessary for construction. This approach helps integrate the development into the natural terrain, minimizes visual impacts associated with massing and height, and limits disturbance to the existing terrain. Additionally, the project must comply with the California Green Building Code (Title 24: Part 11) and include Best Management Practices (BMPs) throughout the construction phase, including but not limited to dust and sediment control, erosion control, and other measures as required and enforced through the standard Building Department condition of approval for the development.

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15. Swimming Pools, Spas, and Water Features: Swimming pools, spas and water features shall be located, designed and constructed where:
(a) geology conditions allow;
(b) noise produced by circulatory mechanical pumps and equipment is mitigated; and (c) any associated fencing or other site improvements are compatible with neighboring properties.

The Site Improvements do not include any pools, spas, or water features.

16. View Equity: The development, including its landscaping, shall be designed to protect existing views from neighboring properties without denying the subject property the reasonable opportunity to develop as described and illustrated in the City’s “Design Guidelines.” The “Design Guidelines” are intended to balance preservation of views with the right to develop property.

The Site Improvements consisting of the retaining walls and landscaping will not result in adverse view equity impacts due to their siting and overall design integration. The retaining wall along the interior property line is a maximum of six feet in height, while the retaining wall along Catalina Street ranges from approximately 42 to 72 inches in height and is topped with a tubular steel fence varying from three to five feet. These elements are designed at a scale and massing that are consistent with typical residential and institutional Site Improvements and are not anticipated to obstruct public or private view corridors.

The proposed landscape palette has been carefully sited to provide privacy and visual buffering while minimizing impacts to coastal and canyon views across the project site. The Arbutus ‘Marina’ (Strawberry Tree), the largest proposed species, reaches a mature height of approximately 40 to 50 feet and is located exclusively along interior property lines to provide screening within the site.

In addition, two Eucalyptus ficifolia (Red Flowering Gum) and two Agonis flexuosa (Peppermint Tree), each reaching up to 40 feet at maturity, are located at the site entrance along the driveway leading to the parking garage, where they help define entry and enhance site character. Further, nine Podocarpus henkelii (Long Leaf Yellowwood), also reaching approximately 40 feet in height at maturity, are distributed along the northern, eastern, and southern property lines to reinforce perimeter screening. Collectively, these trees are intentionally sited to maintain privacy between adjacent residential uses while preserving existing coastal and canyon views across and beyond the site. Because the proposed landscaping does not raise view concerns, there is no limitation on height of mature trees or maintenance schedules.

Finding No. 2. The physical improvements and site developments related to the Project are designed and located in a manner in overall consistency with all other applicable design guidelines.

No additional design guidelines are applicable to the Site Improvements.

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Finding No. 3. The physical improvements and site developments related to the Project are characterized by appropriately scaled development, diverse and unique architectural designs, pedestrian orientation, and sensitivity to the natural conditions of the site.

The Site Improvements are appropriately scaled for the size of the lot. The Site Improvements meet zoning requirements and the design review criteria as described above and is compatible with the neighborhood.

Finding No. 4. The project is consistent with any specific plan or any other specific zoning design review criteria.

There is no specific plan or other specific zoning design review criteria for the Project area.

SECTION 5. The Planning Commission hereby makes the following findings with respect to Coastal Development Permit 2026-0864:

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.

The proposed Housing Development Project and associated Site Improvements 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 site is privately owned and does not contain any public coastal access easements, trails, stairways, walkways, or other access corridors serving the public. Additionally, the proposed Housing Development Project and associated Site Improvements do not obstruct, alter, or diminish access to nearby public streets, sidewalks, or coastal access routes. No public accessways are designated across the property in the City’s certified Local Coastal Program. Accordingly, the proposed development will not interfere with existing or planned public coastal access opportunities and is consistent with applicable Coastal Act and Local Coastal Program access policies.

2. The proposed development will not adversely affect marine resources, environmentally sensitive areas, or archaeological or paleontological resources.

The proposed Housing Development Project and associated Site Improvements will not adversely affect marine resources, environmentally sensitive habitat areas, or archaeological or paleontological resources as the site has been previously developed and urbanized, contains no Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 119
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marine resources or environmentally sensitive habitat areas, and is not identified as containing archaeological or paleontological resources.

A Phase I Environmental Site Assessment dated April 10, 2026, prepared by Altec Testing and Engineering (Attachment 5) and Geotechnical Report dated December 2, 2025, prepared by LGC Geotechnical (Attachment 6) was peer reviewed by the City’s consultant, Kling Consulting Group.

According to the Geotechnical Report, the site identified no geologic, hazardous materials, or environmental conditions that would indicate the presence of archeological or paleontological resources or constraints to development. Additionally, the site was not identified as a historic or archaeological resource in the City’s historic inventory. The proposed development is limited to infill redevelopment within an existing developed site and will not disturb any known sensitive environmental areas.

In addition, according to the Geotechnical Report, standard construction practices and regulatory requirements ensure that any previously undiscovered archaeological or paleontological resources encountered during grading or excavation activities are properly evaluated and treated in accordance with applicable regulations. Accordingly, the proposed development will not result in adverse impacts to marine resources, environmentally sensitive habitat areas, or archaeological or paleontological resources.

3. The proposed development will not adversely affect recreational or visitor-serving facilities or coastal scenic resources.

The proposed Housing Development Project and associated Site Improvements will not adversely affect recreational or visitor-serving facilities or coastal scenic resources. The site is a previously developed infill property currently occupied by a religious institution and surface parking lot and is not designated or utilized as a recreational or visitor-serving facility. The project site is located within an urbanized area surrounded by existing development and will not obstruct identified public scenic vistas or degrade visual access to coastal resources. The proposed Housing Development Project includes a parking garage with 41 parking stalls that will provide areas for parking by affordable housing residents, the religious use, and the school use. The proposed building is consistent with all applicable objective development and design standards.

The Housing Development Project and Site Improvements do not result in adverse impacts to coastal scenic resources or neighborhood compatibility with respect to the other existing structures on the Project site because (i) the primary features of the existing structures, including the stain glass element on the building corner, remain unobstructed; (ii) the Housing Development Project is sufficiently setback from the street , such that public views of the Church buildings and Aubrey St. Claire addition would remain visible from all adjacent public roads, and (iii) the new church parcel would remain visible to the public so views are provided from the nearby public roads and visible by the public from the new parcel itself.

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In addition, the project site does not include development on a ridgeline, blufftop, or other visually prominent coastal landform and will not adversely impact scenic coastal views from public streets or viewing areas. Accordingly, the proposed development avoids adverse impacts to recreational or visitor-serving facilities and coastal scenic resources and is consistent with the applicable policies of the certified Local Coastal Program and the California Coastal Act.

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.

The proposed Housing Development Project and associated Site Improvements is compatible with the surrounding urban environment as it is located in an existing developed infill property located within an urbanized setting. The Project site does not contain any environmentally sensitive habitat areas, wetlands, native habitat communities, or significant scenic natural resources. Further, the proposed Housing Development Project and associated Site Improvements are confined to the existing disturbed and previously developed portions of the site and will not encroach upon any parks, open space areas, or recreational lands as none are located within the vicinity. Further, no environmentally sensitive habitat areas are identified on or adjacent to the property. The Site Improvements meet objective standards relating to hydrology and water quality management as analyzed in the Hydrology and Hydraulics and Water Quality Management Plan (Attachments 6 and 8), which reduces any indirect impacts such as erosion, runoff, or pollution onto surrounding properties. Accordingly, the proposed development avoids adverse impacts to environmentally sensitive habitats and scenic resources and is consistent with the applicable policies of the certified Local Coastal Program and the California Coastal Act.

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.

The Site Improvements involves 480 total cubic yards of grading outside of the building footprint.

The Housing Development Project and associated Site Improvements will not result in undue risks from geological, erosional, flood, or fire hazards. The Project site is an existing developed infill property with an average slope of approximately 2.1 percent and does not contain significant natural landforms, steep slopes, or undisturbed topographic features. Physical improvements to the site will occur within previously disturbed portions of the site and therefore will not substantially alter the existing terrain.

A Geotechnical Report dated December 2, 2025, prepared by LGC Geotechnical (Attachment 5) for the project site, and peer reviewed by the City’s third-party consultant, Kling Consulting Group, concluded that the site is suitable for the proposed development provided the recommendations contained in the report are incorporated into the project design and construction. The report determined that the site is not located within a designated Seismic Hazard Zone, liquefaction zone, Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 121
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earthquake fault zone, or area susceptible to earthquake-induced landslides. No active faults were identified on or adjacent to the site.

In addition, the project’s Hydrology and Hydraulics Study, dated February 2025, prepared by KES (Attachment 6) and peer reviewed by the City’s third-party consultant, GMU Geotechnical Inc. assessed the proposed drainage and water quality improvements to ensure they are designed to accommodate runoff from a 100-year storm event and to comply with applicable County of Orange Flood Control standards. The analysis concluded that the project would not create additional drainage impacts beyond the project boundaries and that finished building pads will be located above the theoretical 100-year flood elevation. The project includes stormwater treatment measures, subsurface drainage facilities, and erosion control measures that will minimize the potential for erosion or runoff-related impacts.

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.

The Project site is located within an urbanized neighborhood characterized by a mix of institutional, multi-family residential, commercial, and residential uses. The proposed Housing Development Project and associated Site Improvements would replace an aging surface parking lot and existing parsonage building with a multi-family residential structure incorporating contemporary architectural detailing, articulated building facades, landscaped setbacks, and enhanced pedestrian-oriented improvements. The proposed landscaping, right-of-way improvements, and overall site design would improve the appearance of the property and soften views from adjacent public streets and neighboring properties. Additionally, the project site is an existing developed infill property that does not contain significant scenic natural resources, ridgelines, or visually sensitive coastal landforms. The proposed structures have been sited and designed to integrate into the surrounding urban environment without obstructing identified public scenic vistas or degrading visual access to coastal resources.

The Housing Development Project and Site Improvements do not result in adverse impacts to coastal scenic resources or neighborhood compatibility with respect to the other existing structures on the Project site because (i) the primary features of the existing structures, including the stain glass element on the building corner, remain unobstructed; (ii) the Housing Development Project is sufficiently setback from the street , such that public views of the Church buildings and Aubrey St. Claire addition would remain visible from all adjacent public roads, and (iii) the new church parcel would remain visible to the public so views are provided from the nearby public roads and visible by the public from the new parcel itself.

The Housing Development Project and associated Site Improvements is substantially setback from Glenneyre Street and the massing relates to the scale of the existing church buildings on the site. While the proposed multi-family residential building is three stories in height and larger in scale than many of the surrounding properties located to the north along Cleo Street and to the south Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 122
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along St. Ann’s Drive, there are no impacts to coastal resources, such as public views of the coast or access to the coast. The contemporary architectural style, landscaping, and design details enhance the visual quality of the site.

7. The proposed development will not have any adverse impacts on any known archaeological or paleontological resource.

The proposed Housing Development Project and associated Site Improvements will not adversely affect any known archaeological or paleontological resources. The Project site is not known to have archaeological or paleontological resources. Further, the Project site has been previously developed and urbanized.

A Phase I Environmental Site Assessment dated April 10, 2026, prepared by Altec Testing and Engineering (Attachment 5) and Geotechnical Report dated December 2, 2025, prepared by LGC Geotechnical (Attachment 6) were peer reviewed by the City’s consultant, Kling Consulting Group.

According to the Geotechnical Report, the site identified no geologic, hazardous materials, or environmental conditions that would indicate the presence of archeological or paleontological resources or constraints to development. Additionally, the site was not identified as a historic or archaeological resource in the City’s historic inventory. The proposed development is limited to infill redevelopment within an existing developed site.

In addition, according to the Geotechnical Report, standard construction practices and regulatory requirements ensure that any previously undiscovered archaeological or paleontological resources encountered during grading or excavation activities are properly evaluated and treated in accordance with applicable regulations. Accordingly, the proposed development will not result in adverse impacts to known archaeological or paleontological resources.

8. The proposed development will be provided with adequate utilities, access roads, drainage and other necessary facilities.

The proposed Housing Development Project and associated Site Improvements is adequately served by existing and proposed utilities, access roads, drainage facilities, sewer connections and other necessary public infrastructure. The project site is located within an urbanized area currently served by existing public streets and utility systems, including water, sewer, storm drainage, electrical, telecommunications, and emergency services infrastructure.

Technical studies prepared for the project and reviewed by the City and third-party consultants confirm that existing infrastructure and utility facilities have sufficient capacity to serve the proposed development. These studies include:

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• Geotechnical Report (LGC Geotechnical), dated December 2, 2025 (Attachment 6) • Hydrology and Hydraulics Study (KES), dated February 2025 (Attachment 7) • Sanitary Sewer Analysis (KES), dated December 2025 (Attachment 8) • Water Quality Management Plan (KES), dated December 2025 (Attachment 9) • Traffic Memo (Urban Crossroads, Inc.), dated November 26, 2025 (Attachment 10) The sewer analysis concluded that the Housing Development Project’s estimated wastewater discharge of approximately 0.008 cubic feet per second represents a negligible increase to the existing 8-inch sewer line capacity and will not adversely impact the operation of the sanitary sewer system. Similarly, the Water Quality Management Plan and Hydrology and Hydraulics Study analysis determined that the proposed stormwater facilities and subsurface chamber system are designed in accordance with applicable County of Orange Flood Control standards and are capable of accommodating runoff from a 100-year storm event without creating additional drainage impacts beyond the project boundaries.

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.

Other public services, including solid waste collection and public roadway capacity, have been considered and are adequate to serve the proposed Housing Development Project and associated Site Improvements. The Project site is located within an urbanized area currently served by existing municipal infrastructure and public services. The Project site will continue to utilize established public roads which are designed and maintained to accommodate the additional residential density.

Based on the Traffic Memo, dated November 26, 2025, prepared by Urban Crossroads, Inc. (Attachment 10), the project will generate 140 two-way vehicle trips per day with 11 AM peak hour trips and 14 PM peak hour trips. The traffic volume generated by the development would not exceed the capacity of the surrounding roadway network which will retain a LOS of A pre- and postconstruction, and will not substantially alter existing circulation patterns.

Adequate areas for trash storage and collection have been included on the basement level of the parking garage as well on the first level of the development in compliance with applicable City requirements and service provider standards. The site will continue to be served by existing waste collection services, and the incremental increase in solid waste generation associated with the development does not exceed the capacity of existing facilities or services.

Accordingly, public services, including roadway capacity, solid waste service, and other municipal facilities, have been considered and are adequate to serve the proposed development, consistent with applicable policies of the certified Local Coastal Program and the California Coastal Act.

The Project is consistent with all applicable policies of the Certified LCP.

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LCP COASTAL VIEW POLICIES (CDP)
Land Use Element Goal 6 Provide a diversity of land uses that enhance the community.

The Site Improvements will allow for infill development of a multi-family affordable housing building within an established business and residential corridor. By incorporating residential units into a developed neighborhood, the development expands housing availability in a manner that is compatible with surrounding land uses and existing infrastructure.

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.

The proposed development is not located between the sea and the first public road paralleling the sea. The subject property is situated inland along Glenneyre Street within an established commercial and mixed multi-family and single-family residential neighborhood and is separated from the shoreline by intervening development and public streets. Accordingly, this finding does not apply. Nevertheless, the Housing Development Project and associated Site Improvements comply with the Chapter 3 Policies. As detailed in the facts supporting Finding No. 1, the proposed development 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.

The Project is within the scope of the development capacity and environmental analysis previously considered in the adopted Housing Element Initial Study/Negative Declaration. The Project would result in fewer residential units than the capacity analyzed for the site in the Housing Element, and the City has not identified substantial changes to the Project, substantial changes in the circumstances under which the Project would be undertaken, or new information of substantial importance that would require major revisions to the previously adopted Initial Study/Negative Declaration due to new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Accordingly, no subsequent or supplemental environmental review is required pursuant to Public Resources Code Section 21166 and State CEQA Guidelines Section 15162.

As an independent and alternative basis for the City’s CEQA determination, the Housing Development Project component of the Project qualifies for streamlined, ministerial treatment under the Affordable Housing on Faith and Higher Education Lands Act of 2023, Government Code section 65913.16, because the Housing Development Project satisfies the eligibility criteria and objective development standards as allowed by that statute and the Density Bonus Law. A qualifying housing development project approved as a “use by right” under Government Code section 65913.16 is not a “project” for purposes of CEQA. (Gov. Code, §65913.16(c), (b)(12)(B).) In addition, the Merger component is statutorily exempt from CEQA pursuant to Government Code Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 125
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section 65913.16, subdivision (l)(7), because the Merger is consistent with the objective subdivision standards in Chapter 21.08 of the Laguna Beach Municipal Code and Density Bonus Law.

SECTION 6. The Planning Commission hereby makes the following findings with respect to the Density Bonus Law (Gov. Code Sections 65915-65918):

1. The Housing Development Project is entitled to an increase in density, five concessions, and waivers to development standards under the state density bonus program because 100% of the units will be restricted to households earning a low income, qualifying the development for up to 80% increase in density, five concessions, and waivers to any development standard which would preclude the development from being built at the density allowed under the state density bonus laws.

2. The Housing Development Project is entitled to waivers to development standards under the state density bonus program because a site analysis with all City of Laguna Beach development standards applied demonstrates that the development would result in a loss of the ability to merge the parcels to prevent the Housing Development Project from crossing a property line.

3. The Housing Development Project applicant requests the following four concessions:
a) Reduction of the Required Immediately Accessible Open Space. Pursuant to LBMC Section

25.50.010(E) which requires that 25% of that open space shall be immediately accessible to each living unit, and shall be designed to be used primarily for the occupants of the living unit (private open space). The applicant is requesting to not provide any private open space for the Project.
b) Front Yard Setback. Pursuant to LBMC Section 25.12.008(C)(2), a front yard setback of at least 20 feet is required for the R-2 zone. The applicant requests a reduction of the front yard setback along Catalina Street from 20 feet to 10 feet.
c) Additional Building Setback. Pursuant to LBMC Section 25.50.004 (D), an additional foot of distance for every foot of height in excess of fifteen feet. The applicant is requesting relief from this requirement so that the structure can be stacked horizontally. d) Required Parking Spaces. Government Code 65913.16(k)(1) provides “the proposed development shall provide off-street parking of up to one space per unit, unless a state law or local ordinance provides for a lower standard of parking, in which case the law or ordinance shall apply.” The applicant is requesting a reduction in parking requirements as a development incentive. The requested reduction includes a parking ratio for Studio and 1-bedroom units at

0.5 spaces per unit instead of 1 space per unit. The resulting total parking space requirement for the multi-family residential structure would decrease from 29 spaces to 23 spaces.

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4. The Housing Development Project applicant requests the following waivers:
a) Lot area and dimension standards of the LBP Zone. Pursuant to LBMC Section 25.28.008(A), parcels in the LBP zone shall not be merged together for development purposes that exceed ten thousand sq. ft. The LBP portion of the site is already considered existing nonconforming due to its size at 37,640 sq. ft. The proposed affordable housing parcel is proposed to be 28,937 sq. ft. in size and will continue to be a split-zone parcel with 14,781 sq. ft. in the R2 zone, and 14,156 sq. ft. in the LBP.
b) Open Space Requirements. Pursuant to LBMC Section 25.50.010(A), a minimum area of forty percent of the total gross living area on the lot shall be open space. The applicant requests a reduction from the required 11,620 sq. ft. total open space to 4,595 sq. ft.

5. Granting four concessions and two waivers would result in a direct cost reduction to the proposed development, will not have an adverse impact on public health and safety, and will not be contrary to state or federal law.

SECTION 7. The Planning Commission hereby makes the following findings with respect to Planning and Zoning Law (Gov. Code Section 65863):

1. Remaining sites identified in the Housing Element are adequate to meet the jurisdiction’s remaining RHNA for the planning period by income category.

Here, the City’s Housing Element, which was certified by the Department of Housing and Community Development (“HCD”), anticipated a redevelopment potential for 31 low-income units at the Property. Based on the current iteration of the Project, which proposed 28 low-income units, the City has a deficit of 3 low-income units. Per Table 4-5 of the Housing Element (Summary of Sites Inventory for 2021-2029), the proposed new sites and the City’s ADU potential demonstrates that the City has adequately zoned land for 80 low-income units (35+52 = 87). Here, while this Project is producing 3 fewer low-income units than anticipated, the identified surplus in the City’s Housing Element covers the deficit and the City is still exceeding the RHNA target when considering all of the inventory sites (plus ADUs) listed in the certified Housing Element.

2. The findings should include a quantification of the remaining unmet need for the jurisdiction’s RHNA at each income level and the remaining capacity of sites identified in the Housing Element, to accommodate that need by income level.

For the 6th Cycle Housing Element (2021-2029), Southern California Association of Governments allocated 394 new housing units to the City of Laguna Beach, consisting of 118 very low-income units, 80 low-income units, 79 moderate-income units, and 117 above moderate incomes units.

Below is a quantification of the remaining unmet need and remaining capacity at each income level:

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Income
Level
RHNA
Allocation
Units Online Remaining
Unmet Need
Capacity to Fill
Unmet Need
Very Low 118 0 118 140
Low 80 28 (with this
Project)
52 (with this
Project)
75 (with this
Project)
Moderate 79 43 36 82
Above
Moderate
117 397 0 121
Based upon this substantial evidence in the record that supports the above-mentioned two findings, the City is not required to identify additional sites or rezone areas to accommodate three additional low-income units under Gov. Code Section 65863.

SECTION 8. The Planning Commission hereby approves Ministerial Design Review 2026- 1135, and Design Review 2026-0863 and Coastal Development Permit 2026-0864, subject to conditions of approval in Exhibit A, which is attached hereto and incorporated herein by reference.

SECTION 9. The documents and materials that constitute the record of proceedings on which this Resolution has been based are located at City Hall, 505 Forest Avenue Laguna Beach, CA 92651. The custodian of the record of proceedings is the Director of Community Development.

SECTION 10. If any provision of this Resolution is held invalid, the remainder of this Resolution shall not be affected by such invalidity, and the provisions of the Resolution are severable.

ADOPTED this 3rd day of June, 2026.

AYES: Commissioner(s) DUBIN, GOLDMAN, KELLENBERG, WHITIN

NOES: Commissioner(s)
ABSENT: Commissioner(s) SADLER
ATTEST:

Steven Kellenberg, Chairperson
Planning Commission
City of Laguna Beach, California
Samantha Beier, AICP
Planning Manager
City of Laguna Beach, California
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EXHIBIT A
RESOLUTION NO. 2026-1135
(CONDITIONS OF APPROVAL)
Standard Conditions –Community Development Department

1. Design Review 2026-0863 is granted for the Site Improvements and Coastal Development Permit 2026-0864 is granted for the Housing Development Project and Site Improvements based on the development and landscape plans prepared by KTGY and cleared by the City on April 28, 2026. These plans are approved as modified and agreed to by the applicant on June 3, 2026, and conditioned herein and shall not be altered except as reviewed and approved in accordance with Title 25 of the Laguna Beach Municipal Code.

2. That the conditions of approval contained herein, shall be made part of the construction drawings for the proposed development.Construction drawings shall not be accepted for Plan Check without the conditions of approval incorporated into the construction drawings.

3. In the event that exhibits and written conditions are inconsistent, the written conditions shall prevail. If there are any disparities between these conditions and the plans or final revised plans that are approved for any subsequent phase, the conditions and/or plans as stipulated in the later approval shall prevail.

4. All plans, specifications, studies, reports, calculations, maps, notes, legal documents, and designs shall be prepared, signed, and stamped (when required) only by those individuals legally authorized to do so.

5. Approval of this application does not relieve the applicant from complying with other applicable Federal, State, County or City regulations or requirements.

6. The Applicant shall defend, indemnify, and hold harmless the City of Laguna Beach and its officers, employees, and agents from and against any claim, action, or proceeding against the City of Laguna Beach, its officers, employees, or agents to attack, set aside, void, or annul any approval or condition of approval of the City of Laguna Beach concerning this Project, including any CEQA determination on the project, including but not limited to any approval or condition of approval of the City Council, Planning Commission, Design Review Board, Community Development Director, or City Planner. The City shall promptly notify the Applicant of any claim, action, or proceeding concerning the Project and the City shall cooperate fully in the defense of the matter. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter.

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7. The Applicant shall be responsible for informing all subcontractors, consultants, engineers, or other business entities providing services related to the project of their responsibilities to comply with these conditions of approval and all pertinent requirements in the Laguna Beach Municipal Code, including the requirement that a business license be obtained by all entities doing business in the City.

8. The Applicant shall pay all fees at the time fees are determined payable and comply with all requirements of the applicable federal, state, and local agencies. The duty of inquiry as to such requirements shall be upon the applicant.

9. Failure to comply with any of these conditions of approval is grounds for revocation of the entitlement(s) and is subject to any other available remedies to the City.

10. The Certificate of Occupancy and/or Certificate of Use, as applicable, shall not be issued until City staff has verified compliance with all conditions of approval.

11. The effective date of the entitlements granted herein do not commence until all appeals, including those to the California Coastal Commission, have been exhausted, statutes of limitation have expired, and any lawsuits, filed within the statutes of limitation, have concluded.

12. In the event any of the conditions of approval are infeasible, the decision-making body hereby authorizes the Community Development Director to modify those conditions in the most conservative manner possible, in accordance with the limitations of the City’s Municipal Code, to allow for the completion of the project.

Project Specific Condition of Approval –Community Development Department

13. Design Review 2026-0863, which is granted for the Site Improvements, and Coastal Development Permit 2026-0864, which is granted for the Housing Development Project and Site Improvements, shall lapse and automatically become void two years following the effective date if the privileges authorized by the approvals are not executed or utilized or, if construction work is involved, such work is not commenced within such period and diligently pursued to completion, unless an extension of time is granted pursuant to the provisions of the Laguna Beach Municipal Code. Extensions of time shall be requested in writing by the applicant or authorized agent prior to the expiration of the entitlements.

14. Approval and adoption of Resolution No. 2026-1135 is explicitly contingent upon City Council approval of Tentative Parcel Map 2026-0865 and Coastal Development Permit 2026- 0954.Recordation of the Final Map shall be completed prior to the issuance of any grading permits associated with this Project construction. If the Council does not approve Tentative Parcel Map 2026-0865 and Coastal Development Permit 2026-0954, this Resolution shall be null and void and of no force or effect. It shall be as if the Resolution had never been adopted.

Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 130
Planning Commission Resolution 2026-1135
June 3, 2026

15. Prior to the issuance of any grading permit for the project, the property owner/applicant shall prepare and record a reciprocal access and easement agreement over all applicable parcels associated with the development. The agreement shall provide for shared vehicular and pedestrian access, utilities, drainage, maintenance obligations, and any other cross-parcel rights necessary for the operation and maintenance of the project, as determined by the City.

The reciprocal access and easement agreement shall be submitted in a form and content satisfactory to, and approved by, the City Attorney prior to recordation. The recorded agreement shall run with the land and shall be binding upon the property owner, all future owners, heirs, assigns, and successors in interest. Proof of recordation shall be provided to the City prior to issuance of any grading permit.

16. Continued Montessori School Parking (CUP 00-49). The following condition of approval from Conditional Use Permit 00-49 shall continue to apply to and be complied with as part of this Project: eleven (11) on-site parking spaces shall be provided, designated with signs, and maintained for the duration of the Conditional Use Permit for the use of the Montessori school.

17. Coordinated Operating Hours. The church and school shall maintain coordinated operating hours such that no overlap occurs between the church’s formal Sunday services and the school’s approved hours of operation. The school’s hours shall remain limited to Monday through Friday, 7:30 a.m. to 6:00 p.m., unless otherwise approved through an amendment to CUP 00-49.

18. Undergrounding of Utilities. Prior to the issuance of a certificate of occupancy, all new on-site utility service connections serving the Project, including electrical, telephone, and cable/communications facilities, shall be installed underground in accordance with the applicable utility undergrounding requirements of the Laguna Beach Municipal Code Section

25.53.010 and the requirements of the serving utility providers, to the satisfaction of the City Engineer.

19. Water-Efficient Landscaping. The Project’s landscaping and irrigation shall be installed and maintained in compliance with the City’s Water Efficient Landscape Ordinance (LBMC Title 19), including the Maximum Applied Water Allowance limits, and shall conform to the approved landscape and irrigation plans (Sheet L-1). Any substantial modification to the approved landscape palette shall be reviewed and approved by the Community Development Department.

20. Light trespass that results in glare is prohibited.

Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 131
Planning Commission Resolution 2026-1135
June 3, 2026

Standard Conditions of Approval – Building Department

21. The project shall be required to comply with the City’s Construction hours, which are: 7:30 a.m. to 6:00 p.m. weekdays only; Hauling Hours: 9:00 a.m. to 3:00 p.m. Construction activity shall not be permitted on weekends or any Federal Holiday.

22. The project must comply with the California Green Building Code (Title 24: Part 11) and include Best Management Practices (BMPs) throughout the construction phase, including but not limited to dust and sediment control, erosion control, and other measures as required by the Building Official.

23. Prior to the issuance of a building permit, a construction staging plan shall be submitted to the Building Official for review and approval. The plan shall include a site plan that identifies construction material storage areas, construction parking, site access, etc. Refer to the informational guide for Construction Staging:
https://www.lagunabeachcity.net/home/showpublisheddocument/8878/637515890430300 000. Any recommendations made by the Design Review Board, Planning Commission, or City Council, as applicable, regarding staging plans or construction management will be forwarded to the Building Official for review and consideration.

Project Specific Conditions of Approval – Building Department

24. Prior to the issuance of a building permit, the contractor of record shall have a pre-construction meeting with the Building Official. The purpose of the meeting shall be to review the requirements for parking, construction hours, fencing, dust control, monitoring, any documentation from engineers, geologists, or other qualified licensed professionals.

Prior to the issuance of a building permit, the applicant may be required to present to the Building Official an asbestos abatement plan and appropriate documentation.

Project Specific Conditions of Approval – Public Works Department

25. Prior to issuance of a Final Certificate of Occupancy for the project, the applicant/property owner shall prepare and obtain approval of a Street Improvement Plan for all required public improvements along the project frontage on Catalina Street, including but not limited to roadway, curb, gutter, sidewalk, drainage, utility, and related improvements, as determined by the City Engineer.

26. The Street Improvement Plan shall be prepared by a licensed civil engineer and shall be submitted to the Public Works Department for review and approval. All required public improvements shall be constructed, inspected, and accepted by the City, or otherwise secured to the satisfaction of the City Engineer through an approved improvement agreement and Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 132
Planning Commission Resolution 2026-1135
June 3, 2026

security, prior to issuance of a Final Certificate of Occupancy. The applicant shall be responsible for all costs associated with the design, permitting, construction, inspection, and dedication of the required improvements.

27. Prior to issuance of any grading permit, the applicant/property owner shall prepare and submit a detailed Drainage Improvement Plan for review and approval by the City Engineer. The plan shall demonstrate compliance with all applicable City standards, approved hydrology and hydraulic analyses, Water Quality Management Plan (WQMP) requirements, and County and regional drainage requirements. The plan shall identify all proposed drainage facilities, stormwater conveyance systems, water quality treatment measures, drainage easements, and connections to existing public facilities. All drainage improvements shall be installed and operational prior to issuance of a Final Certificate of Occupancy, unless otherwise approved by the City Engineer.

28. Prior to issuance of any grading or building permit, the applicant/property owner shall prepare and submit a Sewer Improvement Plan for review and approval by the City Engineer. The plan shall demonstrate adequate sanitary sewer service for the proposed development and shall include all proposed sewer laterals, cleanouts, connections, manholes, easements, and any required public or private sewer improvements. The applicant shall be responsible for obtaining all necessary approvals from applicable sewer agencies and utility providers. All sewer improvements shall be installed, tested, and accepted by the City and any applicable agency prior to issuance of a Final Certificate of Occupancy, unless otherwise approved by the City Engineer.

Project Specific Conditions of Approval for Affordable Housing – Community Development Department

29. Affordable Housing Regulatory Agreement and Covenant. Prior to the issuance of any building permit for the Project, the applicant/property owner shall execute and record against the property an Affordable Housing Regulatory Agreement and Declaration of Covenants, Conditions, and Restrictions (the “Affordability Covenant”), in a form satisfactory to and approved by the City Attorney, restricting all 28 residential rental units (exclusive of the manager’s unit) for occupancy by and affordability to low-income households, consistent with the income and rent limits published annually by the California Department of Housing and Community Development, for a term of not less than fifty-five (55) years, as required by Government Code Section 65913.16(c)(9) and the State Density Bonus Law (Government Code Section 65915). The Affordability Covenant shall run with the land and be binding upon the property owner and all successors, heirs, and assigns.

30. Recordation of Covenant. The Affordability Covenant shall be recorded in the Official Records of the Orange County Recorder’s Office prior to the issuance of any building permit and, unless otherwise approved by the City Attorney, shall have priority over all monetary liens and Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 133
Planning Commission Resolution 2026-1135
June 3, 2026

encumbrances on the property. Proof of recordation shall be provided to the Community Development Department prior to the issuance of any building permit.

31. Annual Monitoring and Reporting. For the full term of the Affordability Covenant, the property owner shall submit an annual affordable housing monitoring and compliance report to the Community Development Department, in a form approved by the City, demonstrating continued compliance with the applicable income-eligibility, rent, and occupancy restrictions, and including a current rent roll, tenant income certifications, and unit mix. The City or its designee may audit the report and inspect supporting records upon reasonable notice, and the owner shall pay any annual monitoring fee adopted by the City. Failure to submit the report or to maintain compliance shall constitute grounds for enforcement and for revocation of the entitlements.

32. Continued Effect of Affordability Restrictions. The deed-restricted affordable units shall receive certificates of occupancy concurrently with, and no later than, the manager’s unit, and the affordability restrictions shall remain in full force and effect notwithstanding any change in ownership, refinancing, or conversion, except as expressly permitted by the Affordability Covenant and applicable law.

33. Prevailing Wage and Labor Standards. The applicant shall pay prevailing wages to all construction workers employed on the Project and shall comply with all applicable labor standards, including Labor Code Sections 1720 through 1861 and the noticing requirements of Labor Code Section 1773.35, and the labor standards required for ministerial approval under Government Code Section 65913.16. The applicant shall provide certified payroll records to the City or to the Labor Commissioner upon request.

34. All parking spaces provided as part of the Housing Development Project shall be reserved exclusively for the use and benefit of the residents, tenants, guests, property management personnel, and authorized service providers associated with the project. The property owner shall not enter into, execute, or maintain any private parking license agreement, lease agreement, easement, permit, or other arrangement that grants parking rights to any off-site property, business, organization, or individual not directly associated with the Housing Development Project.

35. The parking restriction, as required in conjunction with Tentative Parcel Map 2026-0865, shall run with the land and remain in effect for the life of the project unless otherwise approved by the City through a modification of the applicable entitlement. Any proposed parking arrangement benefiting properties or uses other than the Housing Development Project shall require prior review and written approval by the City and may require amendment of the project approvals.

Docusign Envelope ID: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 134
Certificate Of Completion
Envelope Id: 49ADA266-E0C3-82F8-80C6-5FAF573C3363 Status: Completed Subject: Complete with Docusign: Resolution No. 2026-1135 - 340 St. Ann's Dr.

Source Envelope:

Document Pages: 31 Signatures: 2 Envelope Originator:

Certificate Pages: 4 Initials: 0 Nancy Cardoza
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
505 Forest Ave
Laguna Beach, CA 92651
[email protected]
IP Address: 64.58.157.194
Record Tracking
Status: Original
6/17/2026 8:47:18 AM
Holder: Nancy Cardoza
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Samantha Beier
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 146.75.136.151
Signed using mobile
Sent: 6/17/2026 8:48:33 AM
Viewed: 6/17/2026 8:52:06 AM
Signed: 6/17/2026 8:53:07 AM
Electronic Record and Signature Disclosure:

Accepted: 5/11/2026 12:02:03 PM
ID: 29e3aa5a-5b5b-4b1b-9614-990d6b980efa
Steven Kellenberg
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 68.96.92.231
Sent: 6/17/2026 8:53:08 AM
Viewed: 6/17/2026 9:05:04 AM
Signed: 6/17/2026 9:05:19 AM
Electronic Record and Signature Disclosure:

Accepted: 6/17/2026 9:05:04 AM
ID: 76fb1ab5-d12f-493b-8c2a-865e2f51847e
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
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Carbon Copy Events Status Timestamp
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 6/17/2026 8:48:33 AM
Certified Delivered Security Checked 6/17/2026 9:05:04 AM 135
Envelope Summary Events Status Timestamps
Signing Complete Security Checked 6/17/2026 9:05:19 AM
Completed Security Checked 6/17/2026 9:05:19 AM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
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