Laguna Beach council studies 10-year renewal of tourism marketing district, adds 'destination development' fund

Laguna Beach officials on Thursday discussed a proposal to renew the Laguna Beach Tourism Marketing District (LBTMD) for 10 years, keep the base assessment at 2% of lodging receipts with a City- and Visit Laguna Beach–approved ability to adjust the rate up to 2.5%, and add a new “destination development” spending category that would shift how assessment revenues are allocated.

Assistant City Manager Gavin Curran told the City Council in a study session that the LBTMD (formerly the BID), established in February 2001, is currently on a five‑year cycle that expires this June and that the proposed renewal would begin July 1, 2025. "The big 3 changes are those 3. It's currently ending its 5 year term renewal. The change is going to a 10 year. It continues the 2, but is looking to get that ability to increase it or decrease it from 2 to 2 and a half, and it's adding that...destination development," Curran said.

Why it matters: the proposal would reallocate existing assessment revenue into a new destination development category intended to fund infrastructure and programs that management says will support overnight stays and manage visitor impacts. Staff said the change could move roughly $500,000 that the city and Visit Laguna Beach previously agreed to toward destination development and would add additional dollars based on the percentage allocation in the draft…