City approves loan for Resource site

Laguna Beach Relief and Resource Center supporters breathed a sigh of relief Tuesday when the City Council agreed to loan the group money for a down payment on a permanent site.

The council voted 4-0 on Tuesday to lend the center $100,000, pending approval of a conditional use permit. The loan will be interest free, due and payable if the property is sold or the use changes.

“We hope we can repay you, not just in money, but in saved lives,” said center board member Arnold Hano.

The new facility is in escrow, subject to a Planning Commission review of a CUP application, on which the loan from the city also depends. The city loan will be used for a down payment.

If the CUP is approved by the Planning Commission, the relocated center will meet goals recommended by the Homeless Task Force.

Services will include emergency shelter; lockers; access to county services such as detoxification, mental health care and transitional housing; outreach and case management; relationship building and mentoring. Mayor Pro Tem Cheryl Kinsman asked for assurances that the new facility would be for the benefit of Laguna Beach residents, unlike other shelters in Laguna, which provide countywide services.

Resource Center chairman Ed Sauls said the center would provide assistance to Laguna Beach residents who are victims of a local disaster.

In fact, the center was originally organized to assist the victims of the 1993 mega-disaster.

“I moved here later, and I was greeted by a horrific landslide,” Jason Paranski said. “I became acquainted with the resource center, and I have grown to love it.”

Kinsman also wanted the loan secured by the property, but was informed there was a concern that would hinder the center’s ability to get the bulk of the financing. However, her request to have the city subordinated was accepted by Sauls.

Subordination means that the city would be in line to be paid back if the center closed for any reason, but not at the head of the line.

The loan was appropriated from the Housing-in-Lieu Fund, which recently received $100,000 in fees for a project at 121 Wave St. where a single-family home is replacing a duplex.

The loan leaves a balance of $40,000 in the fund.

There was no public opposition to the loan expressed at the meeting, which was attended by about 40 supporters.

“You must be good neighbors,” Mayor Pro Tem Cheryl Kinsman said.

Since its inception the center has operated out of different sites, most recently in a building near the old Kubisak’s antique store.

The new site is 2633 Laguna Canyon Road.

For more information, call (949) 497-7121.

Councilwoman Elizabeth Pearson was absent from the meeting due to illness.

BARBARA DIAMOND can be reached at (949) 494-4321 or coastlinepilot@latimes.com.