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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.
  • For Sale Housing – The modified project will result in a more diverse mix of housing types in furtherance of community and City Council requests while keeping the overall unit count below the approved level from the 2022 approval (1,500 units). 
  • Building Design / Architecture  –  The modified project architecture and design complies with the current Urban Village Specific Plan standards.  This includes the Spanish Colonial Revival style of architecture that will be the common theme throughout the project and will relate to the design of City Hall located across the street at the El Toro intersection.

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.

The Development Agreement requires 200 units at moderate and low income spread throughout the project with an emphasis on seniors and veterans. Rather than spreading 200 affordable units across various buildings over time, the modified plan proposes to transfer a development-ready pad to an affordable housing developer who will develop a dedicated Seniors Affordable building with at least 200 units. This building will be financed with low-income housing tax credits, tax-exempt bonds and other forms of financing. No additional subsidy financing will be required from the City. The affordable developer will have onsite operations staff and will partner with a non-profit operator to deliver services for the residents catered to their needs as seniors. It will also result in targeting deeper levels of affordability at the low and very low-income levels. More details about timing, rents and waitlists will be shared with our email list once the modified plan is approved by the City Council and we are able to move forward with the Seniors Affordable building.

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 has submitted the project modifications which are being reviewed by City staff. Meetings are also being held with the City Council designated Ad Hoc Committee and other City consultants and attorneys to review the requested modifications to the 2022 approvals. The goal is for this approval process to be complete in Q4 2025 or early Q1 2026. The project would need another 6-12 months for building permits to be approved after which the first phases of construction could commence.

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.

The modified project will meet the City’s requirements for open space while at the same time providing even more open space than the 2022 approved plan.

  • 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 as a means to offset lost sales tax revenue from the mall with highly beneficial Transient Oriented Tax (TOT). The new proposal adds a second hotel bringing the total to 225 rooms across two unique brands. The two hotel flags that have already committed to these locations are with a household, international hospitality brand that will include two unique but complimentary offerings with the goal of being open for business by 2028 ahead of the Olympics.

To the extent golf carts are street legal and able to navigate the existing streets outside of the project to safely arrive onsite, the internal project streets are designed for low speeds and with parking stalls that will accommodate golf carts and regular vehicles alike.

The modified project will meet the city parking requirements for each use on the site while also satisfying the stringent parking requirements of the anchor retailers, restaurants, hotels and various residential uses. The apartment buildings will have dedicated parking structures. For sale residential units will have garages. Hotels will have dediated parking lots. There will be street parking added along both sides of Calle de La Louisa along with the internal streets. A large surface parking lot will remain fronting El Toro as required by existing restaurant leases that are to remain and as now required by the new specialty grocer lease. Parking will have certain posted restrictions to ensure adequate parking for onsite businesses and to ensure that medical center visitors and employees use the appropriate parking facilities on their property.