City Council Study Session - March 11, 2025

The City of Laguna Beach City Council held a study session on March 11, 2025, to discuss the renewal and proposed changes to the Laguna Beach Tourism Marketing District (LBMD). Key topics included extending the LBMD for an additional 10 years starting July 1, 2025, adjusting the assessment rate from 2% up to 2.5%, and introducing a new "destination development" category to allocate funds toward tourism infrastructure, cultural activities, artist housing, and environmental impact mitigation. The council reviewed the current and proposed budget allocations among various categories, noting a shift of funds from arts organizations to destination development, which raised concerns among council members and public commenters about potential negative impacts on local arts groups. Discussions also covered the inclusion of short-term lodging units in the assessment, management of funds by Visit Laguna Beach, and the need for ongoing budget adjustments and public hearings. The session concluded with plans to return with a resolution of intent and public hearings scheduled for April and May 2025.