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Developer seeks major changes to Village at Laguna Hills plan; council forms ad hoc committee to negotiate
Summary
Merlon Garrett Partners asked Laguna Hills to consider amendments to the Village at Laguna Hills development agreement that shift land uses (remove some office/theater space, add two hotels, and consolidate 200 affordable units on a single site). After public comment raising affordability, integration and traffic concerns, the council directed staff to begin negotiations and formed a two‑member ad hoc committee (Mayor Pro Tem Kaske and Councilmember Mathis).
Merlon Garrett Partners presented proposed major modifications to the Village at Laguna Hills development agreement at the Laguna Hills City Council meeting on April 22, saying the changes respond to post‑COVID market shifts and financing realities.
James Squilliam, managing director for the applicant, described a reconfigured site plan that removes a previously entitled block of office and theater space, adds two hotels, relocates anchors and the village park to increase visibility, and proposes a standalone building containing 200 affordable units targeted to seniors and veterans. Squilliam said the applicant remains in compliance with the existing development agreement and has paid "over $6,000,000 in fees to date." He asked the council to authorize the submission of modification materials and to allow staff to begin negotiations.
Residents and advocacy groups urged caution. Ann Winn warned that moving and clustering 200 affordable units into a single building "is not building a mixed income community, but instead, creating an economic segregation," and asked the council to continue the item. Andy Seymour of Higher Wages Lower Rent Alliance and other speakers raised similar points about reduced total unit counts (from 1,500 to 1,456 as presented), the rise in lower‑density for‑sale products, and the reduction in retail square footage from prior approvals — all of which they said merited further study and public engagement.
Squilliam responded that the request before the council was to initiate studies, not to approve a final plan: "We're not asking for approval [of] project. We're asking to submit so that those things can be studied," he said, and added the developer intends to donate the land for the affordable component to an affordable housing developer and to include community outreach during study.
Council debate centered on process and timing. One substitute motion to continue deliberations to a September meeting failed. The council then adopted an amended motion directing city staff to begin negotiations with the applicant and to form an ad hoc committee of two council members (Mayor Pro Tem Kaske and Councilmember Mathis) to work with staff and the applicant; the motion passed on roll call.
Why it matters: The 68‑acre redevelopment of the former mall site will shape Laguna Hills’s long‑term land use, housing mix and tax base. Residents and some council members expressed concerns about integration of affordable units, loss of retail, traffic and environmental impacts; the ad hoc committee and staff reviews will focus on CEQA, traffic and fiscal studies before any final DA amendments are approved.
Next steps: The council authorized staff to engage in negotiations, directed preparation of a reimbursement agreement (to pay for staff review), and required periodic council updates; the ad hoc committee will meet with staff and the applicant and return recommendations to the full council for vote.
