Consultants: CRC site could yield $20–$40 million for city; council asks staff to pursue overlay and preserve key recreation uses

Laguna Beach consultants told the City Council that the Community Recreation Center (CRC) site — a 6.3-acre campus the city purchased three years ago — has substantial market value and could be leveraged to generate funding for broader civic priorities while still supporting recreation needs.

Ed Del Bacarro of Tri Commercial summarized housing-market context and valuations, saying the half-site “as-is” market estimate ranged about $27–$28 million, and after estimated discounts for prevailing wage and affordable-housing requirements the net value could be roughly $21 million. An entitlement-focused strategy could materially increase value; the consultant estimated the site could generate an estimated $20 million to $40 million in community benefit depending on option chosen and market conditions.

Two land-use concepts presented: a larger concept of about 270 residential units across the full site (conceptual, not a design) and a smaller concept of about 126 units on roughly half the site while preserving the existing gym and relocating some programs (for example, recreation classrooms or early-childhood programs) to a potential redeveloped Lang Park community center. Both concepts illustrated subterranean parking beneath park or facilities.

Why it matters: Councilmembers noted the city paid about $23 million for the property and that CRC already provides recreation space. At the same time, council members and the city attorney’s office flagged Laguna Beach’s outstanding RHNA (regional housing needs allocation) shortfall and the risk of compounding deficits in the next RHNA cycle; some councilmembers said rezoning now could create options to meet statutory obligations later without immediate demolition.

Council directions: By general consensus the council asked staff to pursue an overlay/rezoning process for the CRC site to preserve flexibility and to return with options that would aim to retain the gymnasium or otherwise preserve core recreation functions while identifying how a portion of the site could be used to produce revenue and help address RHNA needs. Council asked for additional analysis of tax-roll consequences, entitlement costs, and the feasibility of ground-lease structures as a way to retain ownership while generating long-term revenue.

No formal action taken: This was a study-session discussion; no motion or vote was taken. The council requested follow-up information and instructed staff to fold this analysis into the final facilities master plan report.