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Laguna Beach Seeks Solutions to Boost Business Climate

by Ivy

City officials in Laguna Beach are exploring ways to improve the local business environment, following the results of a summer survey that identified several challenges and opportunities. The Laguna Beach Chamber of Commerce collaborated with the consulting firm Kosmont Cos. to gain insights into the business climate by gathering 389 responses from business owners, employees, residents, and visitors.

Among the top issues discussed during a City Council study session on January 28 were retail vacancies and parking requirements, which many see as barriers to attracting new businesses. The city’s retail space, totaling 1.3 million square feet, has remained unchanged in the past six years. However, vacancy rates have climbed from 3.7% in 2022 to 8.3%, with a notable increase attributed to the closure of Gelson’s grocery store in South Laguna.

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While Laguna Beach performs well compared to nearby coastal communities in terms of sales per capita for food and drink establishments, as well as clothing stores, the retail landscape has shifted as more consumers turn to online shopping. City Manager Dave Kiff expressed concern about the downtown area’s vacant storefronts, which he said “need a lot of help.”

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Mayor Pro Tem Mark Orgill suggested a vacancy ordinance to hold landlords accountable for long-term vacant buildings, aiming to inspire action from property owners. Business owners also expressed frustration with regulatory restrictions and rising rents, with some citing lengthy approval processes. Zac Cornwell, owner of Wigz Sandwich Shop, shared his experience of waiting 27 months for approvals and another six months for construction, calling it a stressful process that affected his future and family’s livelihood.

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In addition to these challenges, business owners are calling for more public restrooms in South Laguna, as some areas of the city face inadequate amenities for visitors and business patrons. Laguna Beach averages approximately 136,800 weekly visitors downtown, totaling about 7.1 million visitors annually, according to data from anonymized mobile app tracking.

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Parking is another major concern, with 68% of survey respondents identifying it as a problem. Councilman Bob Whalen emphasized the need for reform in the city’s parking code, stating that current standards often create unnecessary challenges for businesses and landlords. He advocated for proactive changes that would assist businesses in overcoming parking limitations and improve their opportunities for growth.

These findings and ongoing discussions reflect Laguna Beach’s commitment to addressing its business climate challenges and creating a more supportive environment for local businesses.

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