Laguna City Council Greenlights 2 of the Year’s Most Controversial Initiatives
Two Big Back-to-Back Nights at City Hall
This week, the Laguna Beach City Council made two decisive moves among the most hotly debated issues in town.
Tuesday, June 10th
City Council Unanimously Approves Controversial 10-Year Contract Renewal for Visit Laguna Beach
On April 8th, the proposed resolution was put forth on whether to renew The Laguna Beach Tourism Marketing District (LBTMD)’s long term contract, which includes funding to the visitor’s bureau, Visit Laguna Beach and arts programs. Following two packed public hearings on May 6th and June 10th, the City Council voted unanimously on Tuesday (5–0) to approve a 10-year renewal.
The Laguna Beach Tourism Marketing District (LBTMD), established in 2001, was created “to support lodging businesses by funding tourism promotion, cultural programming, and economic development.” It’s funded by a 2% assessment on short-term lodging stays.
While Visit Laguna Beach receives the largest portion of that revenue, LBTMD funds also support numerous arts organizations, including the Arts Commission, Laguna College of Art & Design, Laguna Playhouse, Laguna Art Museum, and cultural arts grant programs.
With this week’s vote, the Council is expected to allocate approximately $3–$3.3 million in the first year of the renewed contract, with Visit Laguna Beach receiving 60% of that total — roughly $1.8 million annually.
Not everyone was in favor of the move. Dozens of residents voiced strong objections during the public comment periods, raising three primary concerns:
👉 1. Marketing Misses the Mark
Opponents criticized Visit Laguna Beach for focusing its marketing efforts on attracting high volumes of day-trippers rather than overnight visitors – a shift they argued works against the city’s core economic goals. While day visitors have long been part of the Laguna Beach story, many residents noted a sharp increase in volume in recent years, with some describing this new wave of visitors showing less regard for our beaches, community standards or civic pride, some describing their behavior as outright “contemptuous.”
👉 2. Cuts to Arts Funding
With 60% of funds directed to Visit Laguna Beach, 40% remain for the city’s arts and cultural programming. The proposed contract included a 2% overall reduction in available funds in that 40%, which translated to as much as a 20% budget cut across all supported arts organizations. During both hearings, artists, board members, and community leaders warned that such cuts could significantly impact operations and long-term cultural plans.
👉 3. Concerns Over the 10-Year Term
After Visit Laguna Beach’s previous 5-year contract that many critics described as underwhelming, residents questioned the logic behind extending the new contract for a full decade. Importantly: Once approved, the 10-year agreement gives the City limited flexibility to cancel or amend the contract except under extraordinary circumstances or breach.
Several speakers urged the Council to consider a shorter term, allowing for mid-course corrections or reevaluation based on performance.
Although concern for continued support for the arts community was widespread, some residents and Council members added that the renewal subsidizes long-term goals, including the need for affordable artist housing and expanded cultural funding.
There was also discussion about whether separating the arts funding decision from the Visit Laguna Beach contract might have yielded a clearer, more flexible solution, but such a path was not formally proposed.
By Tuesday evenings final public meeting on this – and seeing momentum moving toward approval – opponents turned their attention to urging stronger accountability measures and shorter contract terms, primarily because of Visit Laguna Beach’s inclusion in that contract.
In response to mounting public criticism, Visit Laguna Beach representatives acknowledged community concerns and presented enhanced commitments including improved oversight, clearer performance metrics, and promises to diversify marketing efforts. Opponents argued in return, claiming the bureau’s recent pivot away from beach-centric campaigns only appeared in recent weeks leading up to Tuesday’s vote. They questioned whether the shift was a genuine strategic redirection or a last-minute effort to salvage the contract.
With the public hearing portion closed, Council members took up the discussion. Council members Bob Whalen and Halle Jones voiced early support for limiting the contract term to five years but ultimately voted with the full Council in favor of the 10-year contract.
Final edits are expected this week, with the official agreement expected to be awarded shortly thereafter.
Wednesday, June 11th
City Council Approves “Next Step” for Permanent “Slow Street” Pedestrian Mall on Lower Forest Avenue
In a decision that drew hundreds of impassioned residents and more than 500 emails, the Laguna Beach City Council voted unanimously the very next night – Wednesday night – to move forward with a plan to permanently close the lower half-block of Forest Avenue and transform it into a pedestrian-only promenade.
The proposal, which evolved from the temporary “Forest Avenue Promenade” created during the pandemic, would replace existing asphalt, parking meters and vehicle access with an updated pedestrian mall that also refurbishes the look of the storefronts. The permanent installation is estimated at about $4 million, though costs remain open-ended.
Mayor Alex Rounaghi, facing a packed house and crowds lining the hallway outside Council chambers, asked for a show of hands from those wishing to speak. More than 100 hands shot up … and the debate began.
Concerns from Opponents:
Loss of 48 parking spaces, generating an estimated $1 million annually in revenue
Increased traffic congestion due to the permanent street closure
Prolonged disruption to businesses during an estimated 8-month construction timeline
Erosion of Forest Avenue’s historic branding, charm and tree canopy
The site’s location in a known floodplain, with no public geotechnical reports presented
Design critiques, with many residents calling the current renderings uninspired or ill-fitting to the unique Laguna Beach look
A sense that only 4 downtown restaurants truly benefit, while most retailers do not (and all outlying restaurants and retailers also do not benefit)
Lack of exploration of hybrid options, such as partial closures or seasonal pedestrianization
No opportunity for residents to vote directly on a permanent change to the city’s core business district
Support from Proponents:
Improved pedestrian safety and freedom of movement, especially for families
A healthier, more vibrant downtown experience, free from vehicle exhaust and traffic
Removal of asphalt and parking infrastructure to allow for beautification and design cohesion
A stronger sense of year-round community, especially during events and holidays
A long-awaited push for downtown revitalization and pedestrian-first planning
With public comment concluded, City Council members turned to questions and discussion. The architectural team emphasized that the project will proceed in phased stages in an effort to minimize disruption to businesses and pedestrian flow.
Councilmember Bob Whalen clarified that while the street’s permanent closure was now officially endorsed, final design plans are not yet locked in. He noted that minor elements may still evolve in the coming months and reminded attendees that the idea of converting Forest Avenue into a permanent pedestrian zone has had support from both the current and previous City Councils.
Referencing past landmark projects like Main Beach Park, the Montage Resort, and the Susi Q Senior Center, Mayor Alex Rounaghi framed the project as part of Laguna Beach’s continued evolution.
“What we have before us is a plan that moves us forward. It’s time to move forward and I’m excited about it. And to the speakers who say there’s more to do in downtown Laguna Beach in terms of making the city achieve its true potential, I couldn’t agree more with you. But this is a step in the right direction and I believe that a rising tide lifts all boats.”
In the end, the City Council voted to sustain the Planning Commission’s approval of the design review and coastal development permit. The next step: adopting the formal resolution to designate the lower portion of Forest Avenue as a Slow Street.
This move authorizes the architectural firm to begin finalizing construction drawings and producing a more detailed, budget-specific estimate – all funded as part of the next phase.
And, at just under the three hour mark, the City Council moved on to the next business item.
This week’s unanimous approvals on both the Laguna Beach Tourism Marketing District contract and the Forest Avenue Promenade mark two of the most impactful civic decisions Laguna Beach has seen in recent years. While both moves signal long-term investment in the city’s future, the public’s sharply divided opinions suggest the conversation is far from over.
Stay tuned for more “Best of Laguna” news from this week!