Council approves agreement to act as applicant for Pacific Edge permit, seeks stronger long-term protections

Laguna Beach approved a developer‑assignment agreement June 23 to enable a private Pacific Edge (Dune Drifter) project to obtain Caltrans permits that Caltrans will only sign with a public agency, city staff said. The action allows the city to act as the applicant for state right‑of‑way improvements (temporary shoring/tiebacks under Coast Highway) and then transfer the Caltrans-imposed obligations back to the private property owner.

City engineers told council the temporary tiebacks required during excavation for an underground parking garage will likely remain in place in a passive state after construction, creating a long‑term city responsibility if protections are inadequate. City staff recommended a package of security measures including indemnity, insurance, performance and maintenance bonds, and an automatic assignment clause so obligations run with the hotel property if ownership changes.

Councilmembers pressed staff on long-term liability and asked the city engineer and city attorney to pursue stronger bonding, longer maintenance-bond durations and contractual language binding successor owners. Staff said a subsequent airspace agreement with Caltrans is expected and that staff will return with a more detailed recorded agreement tying obligations back to the private owner and specifying insurance and bond terms.

The council approved the agreement unanimously with direction to refine security protections and ensure the obligations are transferrable to future owners. City staff characterized the measure as a procedural step to move permitting forward while preserving the city’s ability to insist on protections before construction begins.