STAFF REPORT
Meeting Date:
July 21, 2026
NON APPEAL
17 SUBJECT: 647 SOUTH COAST HIGHWAY: LOT LINE ADJUSTMENT 2026-0960 AND COASTAL DEVELOPMENT PERMIT 2026-0961 TO MERGE FIVE PARCELS INTO ONE PARCEL IN THE LOCAL BUSINESS DISTRICT (C1) ZONE; AND
FINDING THAT NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED UNDER STATE CEQA GUIDELINES SECTION 15162
RECOMMENDATION: It is recommended that the City Council:
1. Table the public hearing.
SUMMARY OF THE MATTER
Dune Drifter LLC ("Applicant"), for property located at 647 South Coast Highway and 610, 620, 636, and 667 Sleepy Hollow Lane (APNs 644-021-01, -02, -03, -04, and -05) (the "Property"), applied for Lot Line Adjustment ("LLA") 2026-0960 and Coastal Development Permit ("CDP") 2026-0961 to merge certain adjoining legal parcels by removing the common interior lot lines to create one parcel consisting of approximately 40,046 square feet in the C-1 (Local Business District) zone (the "Project").
The proposed lot line adjustment is required pursuant to Condition No. 76 of Planning Commission Resolution No. 25-1463, which approved modifications to the Pacific Edge Hotel remodel and expansion project. The merger of these parcels will facilitate construction of the previously approved automated parking garage and associated site improvements while maintaining the existing exterior boundaries of the Property. No new development is proposed as part of the Project beyond the parcel merger.
In an effort to comply with Condition of Approval No. 76 of Planning Commission Resolution No. 25- 1463, the Pacific Edge Hotel submitted an application for a lot line adjustment, identified as LLA-2026- 0960. However, subsequent review of this application found issues that need to be resolved before the Applicant can take the appropriate action to satisfy the substantive requirement of Condition No. 76. Any future hearing on the matter will be subject to the applicable public noticing requirements.
The required merger will be subject to a tentative parcel map and corresponding final map. Staff is requesting that the City Council table LLA 2026-0960 and CDP 2026-0961. The tentative parcel map will be noticed prior to public review.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
ENVIRONMENTAL ANALYSIS
In accordance with the California Environmental Quality Act (“CEQA”), the recommended action is exempt from CEQA per Section 15061(b)(3), which is the commonsense exemption that the CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect LOT LINE ADJUSTMENT 2026-0960 AND COASTAL DEVELOPMENT PERMIT 2026-0961 AT 647 SOUTH COAST HIGHWAY AND 610, 620, 636, AND 667 SLEEPY HOLLOW LANE July 21, 2026
on the environment, the activity is not subject to CEQA. The action on the determination of the appeal at the continued public hearing will include compliance with CEQA.
ATTACHMENTS
None
Submitted By: Matthew Schneider Approved: .David A Kiff Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Anthony Viera, Deputy Director of Community
Development
Jane Abzug, Assistant City Attorney