The Laguna Beach City Council voted to approve a 10‑year renewal of the city’s Tourism Marketing District (TMD), commonly called Visit Laguna, and the management plan that governs assessment revenues and program allocations. The board‑sponsored renewal passed after the council negotiated edits aimed at increasing transparency and local oversight.
Key changes the council adopted: Council members and staff negotiated specific changes before approval: (1) clarified that any increase in the transient‑occupancy assessment (the TMD rate) beyond 2 percent requires city‑council approval; (2) added a new governance commitment that a portion of Visit Laguna’s board seats will be designated by the city (council asked staff to return with precise bylaw language to guarantee city representation); (3) created a cultural and environmental stewardship funding category and added language allowing a designated reserve to be held for stewardship projects; and (4) required biannual performance reviews and an annual report that the stewardship committee would help prepare.
Why it matters: The TMD provides multi‑million dollar support for Visit Laguna’s marketing and for arts, cultural and environmental stewardship programs in the city. During the meeting, hotels and Visit Laguna leaders stressed stable long‑term funding is needed for multi‑year projects such as artist housing and cultural infrastructure. Opponents urged much shorter terms, argued the organization’s prior marketing emphasized beaches and day‑trippers, and recommended stronger teeth to enforce environmental messaging.
Council debate and changes: Public comments included multiple arts institutions thanking the city for TMD funds used for museum, college and theater programming; other public comments demanded shorter contract terms and stronger commitments on environmental communications. The council added a requirement for expanded city representation on Visit Laguna’s board and directed staff to refine allocation, oversight and reserve language in the final agreement. Councilmembers also required staff to return with clarifying contract language on reporting and performance metrics.
Formal action and vote: The council adopted the management plan and approved an amendment to the city’s agreement with Visit Laguna specifying the stewardship category and a baseline city contribution (initial $500,000 payment, with a $260,000 contribution in the first full year described in the ordinance), and a process for annual adjustments tied to revenue growth. The measure passed 5–0.
What’s next: Staff will finalize the written agreement and bylaws changes required to guarantee city representation on the Visit Laguna board, produce the annual/biannual reporting templates, and implement an outreach plan on the stewardship program. Council members asked for additional specificity about audit and oversight language to be included in the final contract returned to council for the ministerial approval steps.