LVH Logo Color-White

Frequently Asked Questions

What happened to the prior plan that was approved in 2022?

In 2022 we worked with the City to agree upon an overall development plan for the site that could take 10+ years to build out.  A core premise of that agreement was the understanding that as market conditions change, we could refine the plan to accelerate delivery of the project.  This new plan reflects the realities of the current real estate market (less demand for office and theater uses with increased demand for diversified housing options, hotel rooms and experiential retail).

To build upon the foundation established in 2022 by creating an exciting neighborhood and community gathering space that meets and exceeds the growing needs of Laguna Hills. With a lively mix of restaurants, parks, entertainment, shopping, and living spaces, the goal is to create a tight-knit, welcoming community for all to enjoy.

We are proposing several modifications to the original plan for the Village at Laguna Hills in order to adapt to current market conditions. The main changes include adjusting the housing mix, adding a second hotel, removing the planned office space and associated parking structures, reorganizing the retail area, bringing in a specialty grocer, removing the theater and modifying how affordable housing will be delivered. Other changes to the Village at Laguna Hills:

  • Traffic – The revised project results in 25% fewer daily traffic trips than the 2022 plan
  • Second Hotel – A single hotel with 100-150 rooms was originally proposed. A second hotel has been proposed, totaling a combined number of 225 rooms resulting in a significant tax revenue increase over the 2022 approved plan.
  • Office – Removal of the office component in response to market demand in exchange for alternative housing types and a second hotel.
  • Affordable Housing – The proposed modification is for the below market-rate units to be built simultaneously in one dedicated phase of the project allowing for all of the units to be made available much sooner and for targeted demographics such as seniors and veterans to be focused on as requested in the 2022 Development Agreement.
  • Retail – The revised retail development plan includes approximately 150,000 square feet of retail use, eliminating the second-story cinema due to challenges in the theater business while adding a specialty grocer to the retail mix.
  • Parking Structures – The parking structures originally intended for the office and theater have been eliminated, allowing for a more advantageous use of the site, including alternative housing types and the second hotel.
  • Village Park – With the removal of the cinema which was driving the energy around the community gathering space, the newly re-imagined “Village Park” has been relocated to be visible from El Toro and adjacent to the medical center.  The mix of experiential dining and retail along with a diverse number of exciting community programming options ensures that the Village Park will be a place like no other in Laguna Hills and one that locals will be proud to have at the heart of the broader Laguna Hills community.

While the total number of units will slightly decrease from 1,500 to 1,456, the new plan offers more diverse housing options. Instead of just multi-family rental apartments, the development will now include a mix of apartments, for sale townhomes, and for sale single-family detached homes to better serve the needs of Laguna Hills residents.

The retail space will be reduced to approximately 150,000 square feet and will no longer include the previously planned second-story cinema (due to challenges in the theater business). Instead, the focus will be on creating an experiential retail environment, with restaurants and shops arranged around a relocated Village Park that will be visible from El Toro Road and adjacent to the nearby medical facilities.

Rather than spreading 200 below-market-rate (BMR) units across various buildings over time, we propose to transfer a development-ready pad to either the City or an affordable housing developer. This would allow all 200 affordable units to be built at once in a standalone building, with the goal of creating better opportunities for senior and veteran housing.

The changes proposed to the original plan have been made in response to a growing understanding regarding the needs of our community as well as a reflection of the current economic and market conditions, including:

  • Changes in office demand and space requirements including work from home trends
  • Increased strains on the movie theater business due to online streaming delivery channels
  • Changes in consumer shopping preferences toward online retail

Merlone Geier will submit the project modifications to the City for review and approval.

Merlone Geier will submit entitlement applications to the City for approval. The process will include:

  • Negotiations between the developer and City officials.
  • Staff review of entitlement applications.
  • Required California Environmental Quality Act analysis to quantify the reduced impacts.
  • Final consideration by the City Council.

The development will implement best management practices (BMPs) to collect, treat, and control stormwater runoff before it enters the drainage system. These include modular wetland systems, hydromodification management structures, and biofiltration basins.

The project follows Orange County’s water quality management requirements, ensuring runoff is treated to remove pollutants before discharge.

  • National Pollutant Discharge Elimination System (NPDES) Permit: Ensures stormwater runoff is managed according to federal clean water laws.
  • Orange County Drainage Area Management Plan (DAMP): Governs stormwater quality for new developments.
  • South Orange County Hydromodification Management Plan (HMP): Requires developments to mitigate changes in stormwater flow that could cause erosion.
  • California Environmental Quality Act (CEQA): Ensures the project does not create significant adverse environmental effects.
  • Village Park: A central green space for community gatherings and recreation including holiday events and tree lightings, a performance stage, child play area, walking paths, abundant seating and enhanced paving, lighting and landscaping throughout.
  • Dog Park: A designated area for pets.
  • Walking Paths and Pocket Parks: The community will feature various walking paths connecting the project to adjacent uses (medical center, City Hall, Trader Joe’s anchored center to the south) with small pocket parks to enhance the pedestrian experience.
  • Festival Street: An opportunity for art/music/food truck festivals adjacent to the Village Park with festoon lighting and major identity signage will create a unique experience for the project and the broader Laguna Hills community.
  • The site is designed with EV charging stations, water-efficient landscaping, photo-voltaic power and modern stormwater management systems.
  • The revised plan will reduce traffic trips by approximately 25% from what was approved in 2022.
  • There will be improvements to Carlota, Louisa, and Caballeros.

The original plan included one hotel with 100-150 rooms. The new proposal adds a second hotel, bringing the total to 225 rooms across two unique brands. This addition is expected to generate more tax revenue for the City.