Laguna Beach council signals intent to renew tourism marketing district; debate centers on arts funding and governance

The Laguna Beach City Council voted to advance the process to renew the Laguna Beach Tourism Marketing District (TMD), a local assessment that funds Visit Laguna Beach and a range of cultural programs. The renewal would extend the district another 10 years beginning July 1 and would leave the assessment at 2% while authorizing a potential adjustment up to 2.5% subject to further public process.

The council’s action tonight was procedural: staff recommended adopting a resolution of intention to renew and place the matter on the public calendar for a formal hearing. Gavin Curran, the assistant city manager, summarized the proposed reallocation of funds under the new management plan, which creates a new “destination development” category intended to fund stewardship, signage, artist housing and cultural programs. Under the proposed allocation, destination development would receive about 25% of the budget; marketing and sales would be reduced from 35% to 25%; and arts entities including Laguna Playhouse and the Arts Commission would receive adjusted shares.

Public commenters urged differing priorities. Donna Ballard, chair of the Arts Commission, thanked hoteliers and urged continued grant support for artists; she provided a breakdown of how the Arts Commission’s funds were distributed in 2024 and emphasized that 86% of the commission’s special program budget went directly to artists. Several arts organizations attending the meeting — Laguna Dance, the Coast Film & Music Festival and others — asked council to preserve or increase cultural arts grants rather than reduce them to create the destination development pool. Arts leaders said grants underwrite performances that attract visitors and help local nonprofits survive.

Other speakers, including longtime residents and planning critics, urged caution about a 10‑year renewal and the governance structure. Several speakers argued the district had grown too large, that Visit Laguna’s board should include more resident and business representation, or that a shorter renewal term would permit more frequent accountability checks. Speakers asked for clearer measurement and accountability on stewardship goals, and for an advisory role for city representatives.

Council action and direction

The council voted to proceed with the resolution of intention and instructed staff to return with a red‑line version of the management plan that incorporates public feedback. The council asked staff and Visit Laguna Beach to consider governance adjustments — including resident representation on boards or advisory committees — and to prepare revised language for the May public meeting and the June final hearing. Council members also flagged the need for clearer performance metrics and annual or biennial check‑ins to evaluate whether tourism funds support stewardship objectives and the arts.

Why this matters

The TMD collects an assessment paid by lodging establishments (in addition to city transient occupancy tax collections) and directs those funds toward marketing, cultural programming and tourism infrastructure. Changes to distribution percentages and governance determine the near‑term funding available for the city’s arts organizations, the Playhouse, museum and new stewardship initiatives aimed at reducing tourism impacts.

Next steps

Staff will prepare a red‑lined management plan for council review informed by town‑hall and public comments. The city will hold a public meeting on May 6 and a formal hearing in June where affected businesses can file objections. Council members also directed staff to bring back options for board composition and performance measures before final adoption.