Laguna Beach agrees to $8.65-million purchase of canyon properties for artist live-work housing
- Share via
Laguna Beach has agreed to terms to acquire two properties located within the canyon for a total of $8.65 million, a move driven by an interest to preserve them as affordable housing for artists to live and work in.
The City Council unanimously approved the purchase and sale agreements with George R. Burkhardt Trusts for the properties, located at 2307 and 2535 Laguna Canyon Road, at its Jan. 14 meeting.
Laguna Beach now has the next month to complete its due diligence and close the deal. City staff have until Feb. 21 to investigate the sites. The escrow period ends Feb. 28 but can be extended. The city has to make an initial deposit of $100,000, which increases to $125,000 if a one-month extension is requested for the closing period.
Local artist Jorg Dubin said the properties are unique to the community in that they allow for industrial uses, enabling artists and craftspeople to “do what they do without restriction.”
“That’s what makes them unique ... artists who need industrial spaces are able to function without restriction, without worrying about what the neighbors are going to say,” Dubin added.
The property at 2535 Laguna Canyon Road comes at a cost of $4.95 million. It has 14 units built on the 40,780-square-foot lot.
Additionally, the property at 2307 Laguna Canyon Road was listed at $3.7 million and comprises 87,000 square feet of land with 11 units on the property.
The acquisition cost to the city decreased from the Dec. 10 meeting when the properties were expected to cost a combined $9.45 million, but the item was pulled from the City Council agenda.
The purchase could be made by reallocating resources, city officials said. A staff report suggested the city could take $3.4 million from its vehicle replacement fund, $2.2 million from its insurance fund, $2 million from its parking fund, and $1.05 million from the open space fund to cover the cost.
Councilman Bob Whalen said the city could explore alternative options financially. He voiced a reluctance to take funds out of the vehicle replacement fund, citing a city commitment to a fleet electrification program.
While the vast majority of public comment made ahead of the meeting supported the purchase as a means to protect the “art colony” of Laguna Beach, one submission from resident Mary Locatelli raised concerns about competing monetary demands, referencing potential consequences from the recent fires in the Los Angeles area.
“I think we need to stay the course,” Whalen said. “... But remember the plan is that the city’s [purchase] is a bridge [until another entity takes title]. This was never the plan in the beginning. It’s just how the timing played out, right, and the city had to step in and make sure we could preserve these properties before they were sold on the open market for other uses. It was apparent through the real estate process that there were other purchasers out there who were going to use them for other endeavors.”
Once the Laguna Beach Community Land Trust is formed, the city plans to have the properties placed under the care of that entity. In the meantime, the city is exploring options to have a third party take the title of the properties. The Irvine Community Land Trust is under consideration.
“There is cash flow on the properties currently,” said Councilman Mark Orgill, referring to the rent coming in from artists currently stationed on the properties. “Between that cash flow and a couple of other ideas that you all will hear about in the not-too-distant future, some other funding mechanisms, I’m very confident that the [Laguna Beach Community] Land Trust and the board members are going to be able to close this gap and make the city whole on this in a short period of time, meaning two or three years.”
All the latest on Orange County from Orange County.
Get our free TimesOC newsletter.
You may occasionally receive promotional content from the Daily Pilot.
