Coastal Agency Refuses to Halt Laguna Resort

The California Coastal Commission on Tuesday unanimously rejected requests by community activists to revoke a developer’s permit for a controversial $150-million resort at Laguna Beach’s Treasure Island.

The 10-0 decision by commissioners meeting in San Luis Obispo came after 30 minutes of debate by half a dozen speakers, including activists who had alleged that the developer, Phoenix-based Athens Group, misled the commission with an inaccurate map that cut a bluff-top park by half an acre less than originally promised.

Both the developer and a commission staff report denied there had been any deception.

“We’re very disappointed with the ruling, because this sends a message to developers that they can engage in deceptive practices with impunity,” said Ginger Osborne, president of South Laguna Civic Assn.

But city officials and the developer were pleased that construction can continue. A 275-room hotel, 17 homes and 14 condominiums on about 30 acres were approved by the Laguna Beach City Council last February.

“There clearly were no grounds to revoke the permit,” said Laguna Beach City Manager Kenneth C. Frank, who argued before the commission on behalf of the resort.

A coastal commission staff report concluded that commissioners had copies of both outdated and current maps and that the developer had not intentionally misled them.

Grading already has begun on the resort, which was supported by 55% of Laguna Beach voters two years ago.

Public Access Was a Key Selling Point

What impressed city officials and coastal commissioners who approved the project last June was the amount of public access to beaches, coves and parks, Frank said. Plans call for a seven-acre public park along the entire length of a coastal bluff, access for the handicapped, a public restaurant, public restrooms and 70 public parking spaces.

“The views from the coast highway would be better than they are now,” Frank added.

Osborne wasn’t sure what step the civic association would take next. She said filing a lawsuit to stop the resort’s construction “is an option” but had not yet been fully discussed.

The association was joined by Village Laguna, an environmental group, in seeking revocation of the permit.

Activist groups have complained the project is too big and too ritzy for Laguna’s “seaside village” setting.