Council approves 10‑year renewal of Laguna Beach tourism‑marketing district with added stewardship oversight

The Laguna Beach City Council voted to approve a 10‑year renewal of the Laguna Beach Tourism Marketing District (TMD) on June 10, following hours of public comment from residents, cultural institutions and hoteliers.

What the council approved: The council approved the management plan for a renewed TMD effective July 1, 2025 through June 30, 2035. The plan carries a base assessment rate of 2 percent of gross taxable transient‑occupancy receipts (with an owner‑association mechanism described in the plan to increase the assessment up to 2.5 percent with council approval). The renewed plan creates a new “Cultural and Environmental Stewardship” category (replacing the prior “destination development” label) and adds governance, reporting and a standing stewardship committee to provide oversight and recommendations.

Funding and amendments: As part of the renewal the council approved an amendment to the city’s financial agreement tied to a stewardship contribution. Under the amendment the city will receive a stewardship contribution (initially described in the staff packet as $500,000, staged in part across fiscal years) that will be used for cultural and environmental stewardship programs—an allocation the council adjusted to fund museum, arts and cultural organizations while preserving the stewardship pool. Councilmembers required clearer reporting and added language that the plan and the owners association could adjust allocations up to 15 percent year‑to‑year; the council also directed staff to ensure an audit/financial‑expert role for the audit committee.

Accountability and oversight changes: The plan adds a stewardship standing committee to provide recommendations to the Visit Laguna Beach board and calls for biannual performance reviews and annual reporting. Council requested that the city maintain meaningful representation on the Visit Laguna Beach board and clarified that city‑appointed representatives should hold voting positions; council asked staff and Visit Laguna to ensure city appointees (including council designees or residents the council chooses) will have substantive, voting representation on the board. Council also directed that the stewardship committee be empowered to review spending across TMD categories, not only the stewardship line item, and asked staff to develop measurable performance indicators and to make financial audits and the performance reviews available to the council.

Public reaction and next steps: Public testimony was split: arts and cultural leaders, museum and theater directors and hotels supported the renewal and the stewardship funding; many residents objected to the length of the renewal (10 years), the marketing approach and past Visit Laguna social‑media posts promoting day‑use of beaches. After debate the council approved the TMD plan and the amended agreement by roll call (5‑0), with edits reflecting greater city oversight and reporting. Staff will finalize the agreement documents incorporating council edits and complete the administrative steps required to implement the renewed TMD.