CITY OF LAGUNA BEACH COMMUNITY DEVELOPMENT DEPARTMENT STAFF REPORT

AGENDA ITEM: No. 6 DATE: 10122108

TO: PLANNING COMMISSION

CASE: Conditional Use Permit 08-30

APPLICANT: Melrose Place

LOCATION: 361 Forest Avenue, Suite 101 (Landmark Plaza) APN (641-266-17)

ENVIRONMENTAL STATUS: Categorically Exempt, Class 1

PREPARED BY: Martina Speare, Planning Technician (949) 464-6629

REQUESTED ACTION: The applicant requests approval to operate a retail store specializing in women's and girls' clothing and accessories at 361 Forest Avenue, Suite 101.

BACKGROUND: On September 10, 2008, the Planning Commission reviewed the application for Conditional Use Permit 08-30 and continued the item to the October 8, 2008, Planning Commission meeting. The Planning Commission was concerned with the lack of uniqueness of the product line and requested that the applicant revise her application to show how the proposed merchandise would be distinct. The Planning Commission also requested that the applicant provide a detailed description and photos of the proposed merchandise and requested that the applicant collaborate with other stores in the downtown to verify that the proposed merchandise will not duplicate what is already existing. The September 10, 2008, Planning Commission minutes are attached in Exhibit B for reference.

On October 8, 2008, the Planning Commission continued the application to October 22, 2008, at the applicant's request, because the applicant was unable to attend the October 8,2008 meeting.

STAFF ANALYSIS: The applicant has revised the application and has described the proposed use as a women's and girls' (ages 7-14) clothing store specializing in clean, tailored, European and upscale clothing. The boutique will cater to the "mature, career-minded and sophisticated resident and visitor." The proposed distribution of merchandise remains at 80% clothing and 20% accessories. At the September 10, 2008, Planning Commission meeting, the applicant indicated that she could agree to a condition that 25% of the merchandise be private label clothing. The Planning Commission also suggested that the applicant increase the amount of girls' (ages 7-14) clothing to 30%. The applicant did not object to this but did not modify the Conditional Use Permit 08-30 October 22,2008 Page 2 application to reflect these suggestions. Therefore, staff has included conditions as agreed to by the applicant at the September 10,2008, meeting.

The applicant did not indicate that she worked with the other stores in the downtown to compare the proposed merchandise; however, the applicant states that she has done extensive research and is proposing to carry merchandise that is not currently represented in the downtown. The revised application materials are attached in Exhibit A.

The applicant is proposing a mix of merchandise that appears not to be currently available in the downtown. Currently, "tween" clothing is not readily available and the applicant is proposing to fill that void by offering girls' (ages 7-14) clothing. The other proposed merchandise is unique in that it will cater to the career-minded woman and will be sophisticated, tailored and classic and at least 25% will be private label clothing. Staff has concerns about enforcing these conditions because defining sophisticated, tailored and classic clothing is subjective. However, the photographs of the merchandise will assist in providing guidance to what is intended by the Commission. However, staff is not clear on whether casual clothing such as jeans, shorts and t- shirts are permitted, and if so, how much. Staff would suggest including a condition that a percentage of displayed women's clothing be specified for both categories. However, unless these types of clothing are segregated it will be difficult to enforce.

The Downtown Specific Plan encourages independently-owned and operated businesses that offer unique merchandise because they enhance the village character of the downtown. The proposed use is consistent with the goals and policies of the Downtown Specific Plan, in that the use will offer a unique mix of merchandise, will not create a cumulative effect of similar uses and will maintain the balance of resident- and visitor-serving uses.

RECOMMENDATION: Staff recommends that the Planning Commission approve Conditional Use Permit 08-30 subject to the conditions in the attached resolution.

ATTACHMENTS: Exhibit A: Revised Application Exhibit B: 911 0108 Minutes Exhibit C: 911 0108 PC Staff Report Resolution Melrose Place, Women (& girls) will offer downtown Laguna Beach a unique lifestyle boutique, consisting of recognized brands, for mother and daughter. The proposed space will cater to the mature, career-minded and sophisticated resident and visitor. Melrose Place, Women will offer its clientele a tailored, clean, and price conscience product, with a small department store feel. The proposed use will continue to cater to the business-woman, who regularly shops at this location, seeking comfortable, practical and affordable outfits. See attached photos for exact descriptions, concept and brands.

The girls department will consist of similar brands and cater to the 7-14 age range. Also, see attached

Melrose Place would like to propose the use of a woman's and girls clothing, in replace of an existing women's CUP (04-45). This women's & girls store will consist of 80% clothing and 20% accessories.

The proposed use WILL NOT be increasing the number of existing women stores in downtown Laguna Beach, only modifying an existing women's store. The proposed use will continue to maintain a balanced mix of uses that serves the needs of both local and non-local populations.

We have found through extensive research, what we believe to be the best new products available in Laguna Beach, and NOT currently represented in any other store. We would like to continue the uniqueness that our men's stores have become well known for. We would like to cater to the spouses and daughters of our existing clientele, and create a lifestyle shopping experience for the entire family. RECEIVED

Brands may change.. ..concepts and lifestyles don't. OCT 0 9 2008 City of Laguna Beach Zoning Division June 15,2008

To Melrose Place, Laguna

Ted Baker, would like to congratulate you for being a consistent buyer for the past 3 years, in Laguna Beach. You have demonstrated that you are high quality retailer and the Orange County local is very lucky to have you as a specialty store. We would like to offer you the exclusivity of our women's division. which has never been represented before, in Laguna Beach.

Our women's division is of high- quality- fabrics and unique prints fiom Europe. We cater to the sophisticated and mature woman, who is looking for fashion. comfort and quality Our look can be transposed fiom office to dinner party, with the addition of our hand made accessories.

We welcome you to visit our showroom, and view the new fall line. I can be reached at (21 3) 452-2990

Respectfully,

Michael Cesena SM2

BCBG Max Azria and The Vault! - 'AT&T Yahoo! Mail' Page 1 of 1

BCBG Max Azria and The Vault! Wednesday, September 24, ZOOS 3:23 PM "rorn: "Tracy Engel~en"[email protected]> To: [email protected]

Hi Gila,

Thank you so much for thinking of BCBG Max Azria for your upcoming new store for women in Laguna Beach! I am thrilled at the prospect of doing business together and very much look forward to seeing you in a couple weeks to present you with the line. Congratulations again on opening yet another store. It is so exciting.

Feel free to contact me anytime at my be1

Cheers, Tracy

Tracy Engelien GGGGMAXAZRIAGROUF Account Executive - Specialty Mart - Suite B571 p 323.476.4981 f 213.244.9140 [email protected]~rn

Approved Women's Brandsb

DKNY Ted Baker 3CBG 3uess? 'urr fuicy Couture IBS Iiesel teport Collection tebel Spirit WLCAGE

The girls department wal consist of similar b211& and cater to 9 Pi4 ClIESEl I.A. SHOWROOM

Dear Gila and Johnny,

Congratulations on your newest location at the Beverly Center. We are very excited about out new partnership expanding into the kids division. As mentioned, our Diesel Adult store in the Beverly Center receives requests for Diesel Kids apparel daily, now you are so convenient for them to direct their business to,

The store looks amazing, and is very ii~vitingfor kids of all ages, as well as those young at heart. The Beverly Ca-lterneeded a kids concept store for quit some time. We are very exdted to be apart of you success in both Beverly Center as well as the Mens locatiom. we hopeto expand our partnership with into your new Laguna Beach location, Diesel Kids is not present in any specialty childrens boutiques in LamaBeak zBFiiEl~

Diesel Kid adopted a free spirited attitude, enexgy and character. It is a unique European brand recogmized worldwide, We are confident that. this will be carried out h your potential new location in Laguna Beach, as your concept carries a uniqueness all its own.

We wish you continue(

Irene Terrones DIESEL Kids West Coast Sales 310-652-2322ext 200 irene terronesOdiese1.c

4. Conditional Use Permit 08-30 to allow a retail store specializing in women's and girls' clothing and accessories at 361 Forest Avenue, Suite 101.

Commissioner Johnson stated that she asked that this item be pulled from the Consent Calendar because women's clothing stores were at a saturation point when the former Black and White store was approved. This store was allowed because it was viewed as unique. She did not believe this application was unique and thought the Commission should hear from the applicant regarding the proposed merchandise.

After ascertaining that the applicant would be arriving at the meeting in a few minutes, the Commission temporarily continued the matter to wait for the applicant's anival.

Public Testimony Regarding the Project: Gila Leibovitch, the applicant, stated that they have the opportunity to take over the previous White HouseBlack Market and they want to continue to cater to that customer base. They would need to have more than just black and white merchandise to be successful. They want to have color and designers that are not currently in Laguna Beach. They would add a girls' section. She believed the proposed use would be a nice change and they would have what already works for her in other locations.

In response to Commissioner Johnson, Ms. Leibovitch confirmed that the girls' clothing would be for girls ages 7-14 and they would not carry clothing for children younger than that.

In response to Commissioner Grossman, Ms. Leibovitch stated that the merchandise could be defined as European upscale designer brands for the mother and daughter.

Heidi Miller stated that she owns the Tight Assets clothing store in Laguna Beach. She believed that the downtown is oversaturated with upscale women's clothing. She thought the proposal would be a fine store but there are already too many of the same type of stores in the downtown. She noted that the prior children's store on Glenneyre Street now sells women's clothing. She believed the market could not withstand another women's clothing store and she could not afford the competition in today's economy.

Commissioner Zur Schmiede noted that the applicant has six stores with two of them in Laguna Beach.

Phyllis Wood, owner of the Envy store in town, stated that the White HouseBlack Market was a private label store; whereas the proposed store would be similar to the other stores in Laguna and would cany some of the same items. She noted that even the Hobie's store now has more upscale clothing. She believed the proposed store sells the same manufacturers' clothing that other stores in Laguna sell. She noted that other proposed stores have not been allowed to come into the downtown because they are similar to the other downtown stores. She thought there should be more diverse stores in the community.

Keith Wisbaum stated that his law office is located on the second floor of the Landmark Plaza and that he sends clients downstairs to shop while they are waiting to meet with him. The

PC Minutes 3 September 10,2008 comments have been good about the applicants' stores and, as a customer, he likes being able to go to their stores at Melrose Place or The Vault to purchase clothing. He would like to be able to take his daughter shopping in town. He did not believe the additional women's clothing store would mean less shopping in town for him and that the additional store would provide additional choices for shopping in Laguna.

Alan Hall, owner of the Randy and Muse boutique stores, nokd that the former Wte HouseiBlack Market store was a private label store. He believed the applicant's proposal would not be unique because they would be selling name brands that are sold everywhere. He is not opposed to another clothing store, but it should be unique. The applicant's proposal is not unique and there should not be another boutique in town.

Rebuttal: Ms. Leibovitch clarified that they do not have as many stores as reported. They have worked hard to remain unique with respect to what the other clothing store owners sell. They are requesting to have 40% children's clothing, with brands that are not available in Laguna. Many of their items are made just for their stores and are unique. They are just taking over a previous women's store and trying to keep the same customers. They are not trying to be trendy. She is aware of the saturation of some brands, but their store will remain unique.

In response to Commissioner Whalen regarding uniqueness, Ms. Leibovitch stated that the price points would not be much higher than what the previous store had. She stated that they have been the previous store's neighbor for 3 '/z years and they are trying to keep that same look.

In response to Commissioner Dietrich, Ms. Leibovitch stated that the Ted Baker of London brand that she carries is not carried in any other stores in town.

Ms. Leibovitch confirmed for Commissioner Grossman that she did not have an objection to a condition that 25% of the clothing would be a private label.

In response to Commissioner Dietrich, Ms. Leibovitch stated that a majority of the clothing would have a tailored look and that she wants a mature, clean looking, style. She stated that she does not want to take business from other stores in town.

Commissioners' Comments: Commissioner Dietrich noted that there are a lot of women's clothing stores, but there are not many for girls ages 7-14. She did not think it would be a problem if the applicant has sophisticated, tailored classic women's clothing along with private label clothing. She has not seen the proposed items in other stores in Laguna

Commissioner Zur Schmiede believed that, if additional conditions were crafted regarding the merchandise lines, it would not have an incremental effect that would be detrimental to the city and he could make the findings and support the project.

Commissioner Whalen agreed with Commissioner Dietrich, stating that the use would focus on the age 7-14 customer that is not currently serviced.

PC Minutes September 10,2008 Commissioner Johnson agreed that clothing for "tweens" and teens are not available in town. She noted that when White House/Black Market was approved by the Commission there were already many women's clothing stores and the White House/Black Market needed to be unique. She believed the proposed use was a familiar mix of items, so she could not approve the use at this time. She wants the applicant to work with other stores to be sure her clothes are distinct from the other stores.

Commissioner Grossman thought that a definition could be accomplished without adding conditions. He thought a definition would be that it is a retail store specializing in sophisticated, tailored, classic women's clothing. He thought that the key issue is that 30% of the merchandise would be for ages 7-1 4.

Commissioner Johnson was concerned about defining what the upscale, sophisticated tailored clothing would be. She thought that providing more pictures examples of what the applicant would be selling would assist in making a decision.

After further discussion regarding the difficulty of enforcing the percentage of merchandise and the issue of how to identify the merchandise, Commissioner'Johnson wanted the applicant to return with more detail of what type of merchandise would be sold. She also wanted the applicant to talk with the other store owners to be sure that she is not offering the same thing.

Commissioner Zur Schmiede noted that the applicant has two successll stores in the downtown and he did not want to discourage her, but there are a couple of issues that need to be straightened out and he agreed that the applicant might want to provide more information with the application.

Commissioner Dietrich stated that she was persuaded by the other Commissioners to have the applicant provide more detail of what will be sold, including pictures of what the age 7-14 clothing will be.

Commissioner Grossman wanted the applicant to provide a good description of what is being proposed, stating that the description needs to come from the applicant because she knows what merchandise she has. He also requested that she work with the other stores in town be sure the proposed items are unique.

Motion BW Second Action Continue Conditional Use Permit 08-30 at 361 Forest Avenue, Suite 101 to October 8.2008. Motion carried 5-0.

Vote: Grossman 1Dietrich Y Johnson Y Whalen Y Zur Schmiede 1

5. Conditional Use Permit 08-29 to allow alcohol service to registered hotel guests from 12:OO p.m. to 12:OO a.m. on the lawntpatio and in the front lobby area. Additionally the applicant is requesting to serve alcohol in the guest rooms from 8:00 a.m. to 12:OO a.m. at 825 South Coast Highway waguna Riviera).

This item was heard prior to Item #4.

PC Minutes September 10,2008 CITY OF LAGUNA BEACH COMMUNITY DEVELOPMENT DEPARTMENT STAFF REPORT

AGENDA ITEM: No. 4 - CONSENT DATE: 9110108

TO: PLANNJNG COMNIIS SION

CASE: Conditional Use Permit 08-30

APPLICANT: Melrose Place

LOCATION: 36 1 Forest Avenue, Suite 10 1 (Landmark Plaza) APN 64 1-266- 17

ENVIRONMENTAL STATUS: Categorically Exempt, Class 1

PREPARED BY: Martina Speare, Planning Technician (949) 464-6629

REQUESTED ACTION: The applicant requests approval to establish and operate a retail store specializing in women's and girls' clothing and accessories.

BACKGROUND: The proposed site is located within the CBD-2, Downtown Commercial Zoning District. The site is developed with an 18,000 square-foot shopping center, Landmark Plaza. The proposed suite was previously occupied by White House/Black Market, a retail clothing and accessory store specializing in shades of black and white women's clothing and accessories. Please see Exhibit C for Conditional Use Permit 04-45 Resolution. Parking is legal non-conforming with no intensification of use proposed.

The applicant currently operates two men's clothing stores within the same commercial center (the Vault and Melrose Place) and four stores in Los Angeles that specialize in men's and children's clothing and accessories.

STAFF ANALYSIS: The purpose of the CBD-2, Downtown Commercial Zoning District is to maintain a proper mix of resident- and visitor-serving businesses to ensure an economically viable downtown that is attractive to year-round residents as well as summertime visitors. Retail uses that contribute to the diversity and character of the downtown are permitted with approval of a Conditional Use Permit.

The proposed retail store will carry a mix of women's and girl's clothing. The proportion of merchandise proposed is as follows: 60% women's clothing, 20% girls clothing (ages 7-14) and 20% accessories such as costume jewelry and shoes. The applicant states that the "proposed space will focus on the mature and sophisticated resident and visitor" and "will have the types of Conditional Use Permit 08-30 September 10,2008 Page 2 clothing that one would find in a high-end department store such as 's or Bloomingdale's." Residents will be able to shop locally for merchandise that is available in larger department stores outside of the City and visitors will find merchandise that is not already offered in the downtown. Please see Exhibit A for examples of merchandise. The proposed hours are 10:OO a.m. to 8:00 p.m. daily.

The Downtown Specific Plan encourages independently-owned and operated businesses that offer unique merchandise because they enhance the village character of the downtown. The proposed use is consistent with the goals and policies of the Downtown Specific Plan, in that the use will replace a women's clothing store, which will not create a cumulative effect of similar uses and it will maintain the balance of resident- and visitor-serving uses.

RECOMMENDATION: Staff recommends that the Planning Commission approve Conditional Use Permit 08-30 subject to the conditions in the attached resolution.

ATTACHMENTS: Exhibit A: Application Exhibit B: Location MapISite Plan Exhibit C: Conditional Use Permit 04-45 Resolution CITY OF LAGUNA BEACH

See reverse side for filing instructions CUP Number ~~ -. ! # I. PROPERTY OWNEWAPPLICANT MFORMATION: 1, PATE: f-/ c-*[;\T i>. F' L Legal Owner H (1 0 \ \(\ E e i; P i' 1 L, el,, [,i Tele hone( 1 I I) C] (1 -- .d 2..,,a.A .1 Address 8-1~(i pJ . (,jt,q. tt -7, ~LI.. - tj (1 iqj-;, yi.1 ~in WI,-I( P4 , c- 2 ,Y-- C Applicant \\'~)qf !)\,? [.(<> Telephone (93) b 9 2 / ..J L!:) c[-; .f \\(5\\,yI2 fl-~t Address 5b , ... . n. PROPERTY INFORMATION: ~ocation 3~#\ FC)f S 4 /\ u'C* Suite Assessor Parcel Number b11 LI I f&b I-/') Current/Previous Use \ N 0\7?~i I'% '\ BuildingISuite Square Footage ) , > '.-A.J Parking Spaces Provided 3 111. PROPOSED USE: Briefly describe the specific use(s) proposed. Include information about- proposed merchandise and services, menu items, proposed business houfi, etc. 5 . k,,Ct ll j 6 ,,. x I -f. cl~i.~j~0 1;~lffJ~

t Similar Businesses Owned or Operated by the Applicant: JV<~'I~Sfijr t' L~~PK~r(mY N. JUSTIFICATION: 1. Is th' site appropriate for the proposed use in tmsof size, parking, storage, TP,C,,- ti .-I[ 15 -p, 1s (7ur f,pn~lu I - i;,$jiqyr.-141 k-f)~l-h~-~-!{p, J .-.- L?

generat+ by the proposed use? ~fy+t"C. nrc. f> 5.c rfild anljjle -. ~\ffitIdhI~~ I I

t v .. .- \I ,I I$-[ e no]&- . . . . I V. AFFIDAVIT: -I-he do n+!l.TG 0 57 e ~i-l'ic FJ lm? I &reby certify thakall of the above information contained in this application is, to the'best of my knowledge and belief, true and Chapter 25.05.030 oft

- '-APPLICANT'SSIGNATURE Melrose Place would like to propose the use of a women's and girl's clothing store, in replace of an existing women's CUP (04-45). This women's1 girls store would consist of 80% clothing and 20% accessories.

The 80 % clothing to consist of 60% women and 20% girls, ages 7- 14 years of age 20% accessories to consist of 10% women, and 10% girls, ages 7- 14

The 10% women will be 5% shoe and 5% costume jewelry to compliment the clothing The 10% girl's accessories will be 5% shoes, and 5% costume jewelry to compliment the clothing

The proposed use WILL NOT be increasing the number of existing women stores in Laguna Beach, only modifying an existing women's store The proposed use will maintain a balanced mix of uses that serves the needs of both local and non-local populations The proposed space will focus on the mature and sophisticated resident and visitor The proposed space will continue to cater to the business-woman, who regularly shops at this location, and will continue to offer great customer service The proposed space will have the types of clothing that one would find in a high end department store, such as Nordstrom or Bloomingdales The proposed space will look completely different that any other boutique in the downtown district, in that it will have departments for the woman and girl, with matching brands and designs to cater to both. Such as: Ted Baker, Roar, Guess, Juicy, Diesel, 7 for all mankind, etc.. .

We have found through our research what we believe to be the best new products available in Laguna Beach, and NOT currently represented in any store. The designs and its corresponding manufacturers have never been available before in Laguna Beach, and are doing extremely well in our men's stores. Our men's stores cater to the mature, sophisticated and business oriented man. We have had many requests from the wife's of our customers, and local residents to carry this same uniqueness. We have found that the products, in our existing 2 men's stores are very different than anything else in Laguna Beach. We are pleased to be able to finally have the opportunity to expand and offer these unique designs to women.

?I...*L.{3{ !Z, ;!:, :<, ..- f'", k.t . $ <,.!I;; ,.i CII:./ 9- . . . , i.. , , , , I...? .! .'7 :' , , , ; , ?. . ; \ ;+ ; <--,!.! . , ;:: j.3 ..:,. : ,, ?. .

A ! 1 f; 1,' The idea behind naming Vault - the new, atypical, upscale men's boutique in Downtown Laguna Beach - was inspired by its previous occupant, a bank. The retired building has kept most of its vault-like structures, only now the preserved jagged walls have collided with music-inspired fashion. Old wires that haphazardly protrude from the inside walls in a dozen directions have been spray painted to a copper hue and hold up denims and fedoras. An electric guitar hangs as centerpiece from the ceiling, cradled by more wires. According to co-owner Johnny Alper, all this drives the idea of putting an edge to the store.

In 1993. Alper and Gila Leibovitch opened the first of their clothing boutiques in Nason and Just Cavalli. Los Angeles. and kept the attention of Angelenos by offering an edgy assortment They have patchwork pageboy hats. leather jackets embellished with of couture and international designer labels. Their growing popularity has led rhinestone fleur de Lis, cashmere and argyle sweaters by A&G, and Donald them to launch their latest - and fifth - boutique. Opened in October 2006 J. Pliner boots - the tag reading -made in the mountains of Italy.' Just as and occupying a mere 700 square feet. this modern boutique for menswear is magnificent is a leather belt by Ivy, its buckle shaped as a crown, jewels altracting an array of Orange County locals. And with some of the most ultra- embedded and set in pony hair. Pendants, rings, cufflinks. even jeweled beanies hip, chic clothing and accessories available only for the masculine. The Vault is from Leather & Treasures and Chrome Hearts are displayed in glass using the a nice addition among the array of women's stores in Laguna Beach's downtown actual vault doorframe. shopping scene. Both Leibovitch and Alper are passionate about their business of -makine Leibovitch and Alper fly out twice a year to fashion hubs such as , Italy fashion dreams come true.' People return to the store iusuttllthew and Turkey to attend fashion shows and work with European manufacturers to the compliments they get from wearing items from The Vault. -People are so find the hottest trends to fill their boutiques. -We want to take the sophisticated happy about what they find here to the point that we've probably saved a few and successful businessman from the boardroom and [dress him] for the club. marriages.' Alper says. party or social event.- Leibovitch says. 'We want to get those men out of their Tommy Bahama.5.- Indeed. Some labels at The Vault include Antik Denim, 575, Italian brand Mondo di Marco. ABS. JO =host. ~~ives.Lion Head, denim legend Parasuco and fashion lockdown .., Vannucci Couture la favorite of Sting]. These and other hard-to-find desiqners WHAT The Vault are just one way this boutique by the beach is inspiring men's fashion to avant WHERE 381 Forest Avenue. Laguna Beach garde levels. -Our pieces tend to make people feel younger and hip.- Leibovitch INFO Call 969.376.PO00 orvisit www.premierrnen.com says, adding that her favorite designers are Robert Graham. Ted Baker. Mark WHEN 11 a.m. to 8 p.m.

7.. . !6 94Qm MAGAZINE / FEBRUARY 2007 Blowout Mens Page 1 of 1

Menswear Lands Retailer Coveted Real Estate

The often-heard complaint that Orange County, Calif., is wer-retailed takes a special meaning in the high-profile tourist town of Laguna Beach. Last year, the City Coundl denled a condiionai-use permlt to Sophea Pam. The Pasadena, Cali.&sed mlni-emporium of contemporary womenswear applied for a permlt to open a -re on Forest Avenue, one of Laguna's most heavily trafficked retail sbeeS. One reason the mtallefs request was rejected was that the town had an abundance of boutiques selling women's apparel.

One year later, The Vault menswear boutlqw will open Aug. 15 at 381 Forest Ave., the same address once reserved for Sophea Pam. Eugene Grab, the lawyer who handled the condiional-use permlt requests for both retailers, sa~dThe Vault sailed through the city's rigorous review pmess. One reason it did, Gratz said, was that The Vault planned to sell men's clothes in a city with a dearth of menswear boutiques. 'It's a running pke in Laguna Beah," he said. "A man cant buy sods or a pair of undetwear in this town."

NEW TOWN: Johnny Alper, let, and Gila Leibovitch will open The Vault in Laguna Beach, Calif. They own another shop in town and three more stores in Los Angeles.

Although the town's planning department can be demanding, Grah contended that most retailen could find a place in the Laguna Beach market They just have to learn how to persevere and deal with a city government, busineses and residents who are protective of their town's unique character.

They are not anljaxnpetitive,' Grab said. The Vault's debut will represent a new chapter in the more than 3-year-old business partnership of Los Angeles-based retailers Glla Leibovitch and Johnny Alper. At the retailers' four other stores, price poink range trom $69 to $199 for brands such as Fender, Mine and tugs. The Vault will firhigher price points of $199-$5W for labels such as Rodc & Republic, Ted Baker, Just tavalli and Mark Nam.

LeibaviWI began her business in 1993 with a now-defunct boutique called Mjl w on Melrose Avenue in Los Angeles. She and Alper currently run Blowout Mens and Mabix, both on Melm. They also own Premier Men in Los Angeles' Beverly Center shopping mall and MelmPlace, a 500-square-foot store that is two storefrmts from The Vault in Laguna Beach.

Another reason for The Vault's successful bld for a conditional-use permlt from the town is that the owners are a known entity; Melrose Pbce has been doing business in Laguna Sea& since 2004.

Lelbovitch and Alper named thdr new venture The Vault because the boutique space once housed a bank vault After Sophea Pamdropped its bid for the space, bulkling owner Landmark Plaza Inc divided the 5,MX)squarr-foot building. The Vault Qkes up 1,MX) square feet, and a home furnishings store has the rest of the space.

The boutique's bank vault concrete floors and walls were restMed to thelr original state. Much of the shop's Mure demographic Is foreest to be the likes of banking executives, LelbovW sald. 'We're not catering t~ the young dub-gcer. We're catering to a successful man whose average age k 40. They want to feel young, and they're sick of dresslng in Tommy Bahama.'

She expects The Vault to do as well as, If not better than, Melrose Place, whii had $1.2 mlllimn in sales in 2005. Leibovkch and Alpefs piIs to own more than 10 menswear boutiaues, Blowout Mens Page 1 of 1

We have 5 main locations to serve you: 3 in Los Angeles & 2 in Laguna Beach

We are easlly accessible from the 405 and 101 Freeways.

Plemkr Men on Melrase MATRIX USA Melmse Pbce, Laguna 7368 Melmse Ave, 7600 Melrose 361 Forest Avenue, hAngeles. Los Angeles. Laguna hch (390046 GI90046 GI 92651 (323) 653-7530 (323) 653-8252 (949) 497-5533

< LOUTOR MAP < LOCATOR MAP < LOCATOR MAP

hemkr Hen @ Beverfy Center The Vault, Laguna Premier Kkls Beverly Center 8500 Beverly Wd. Ste 724 381 Forest Ave Lm Angela, Laguna Beach, CA90098 CA 92651 (310) 854-0600 (949) 3764000

< LOCATOR MAP < LOCATOR MAP June 15,2008

To Melrose Place, Laguna

Ted Baker, London would like to congratulate you for being a consistent buyer for the past 3 years, in Laguna Beach. You have demonstrated that you are high quality retailer and the Orange County local is very lucky to have you as a specialty store. We would like to offer you the exclusivity of our women's division, which has never been represented before, in Laguna Beach.

Our women's division is of high quality fabrics and unique prints from Europe. We cater to the sophisticated and mature woman, who is looking for fashion, comfort and quality. Our look can be transposed from office to dinner party, with the addition of our hand made accessories.

We welcome you to visit our Los Angeles showroom, and view the new fall line. I can be reached at (2 13) 452-2990

Respectfully,

Michael Cesena SM2 cnol, 212-6~5.9202.TIG~TS. $11, WE. LEATHER "CHAINED" LEATHER "NULA" SELECT BLOOUINGOALE'S. 800-232-1854. rr - h.. 1-n;fm rm~t:I,- % r\ n .ah Pattullo ssos

-Reynaldo' wool windowpane-panem Equestrian waist bdt in bmwn ¶8: Coach vest. $149: polo.com: and Tyrelr satin 800-309-2500: anthropologie.com -Legacy" leather dim-flapbag. $378: gewgette ~ffle-frontblouse. 1119: Lord 866-262-2440:coach.com &Taylor.21!"0'-77u -. . . I ''70 BVUIh DECEMBER 2006

STRETCH WOOL JACKET Pi((.!/h',v:rr. TWEED JACKET Ft~n*n.r-?l STRETCH COTTON TWILL -PIA" TWEED -LOLITA' $530 212-807-0505 $28 FOREVER21.COM JACKET Till?] h.llr~I15253 JACKET l~~~/ljtrkt~~~~.~~~~~/~~~~:.;:> COTTON-BLEND TOP !>.Ic~.I111~ COTTON KNIT THERMALTOP H

Pl~ilippe.bIm s175 SELECT ANTHROPOLOGIE. HALLS, KANSAS CITY, WO. 212-391-8070 800-309.2500 FOR LOCATIONS 800-6244034

PONY-SKIN "TULA" SZZE LEATHER AND SUEDE Y~~~~~,5SIAKESKIN PRINT EiIec11 Sl~telrl~ LEATHER 'GAYLE- HII~Sin1 JCREW.CDM French Cont~ection512% iisj EILEENSHIELDS.COM SHOPKLUBNICO.COM FRENCHCONNECTlON.COM rm- . --.-.-..- r 4 ..,a

These trendy trousers really do flatter. Find the right pair for your shape.

Horizontal details like buttons, tabs and pockets give slim hips curves.

1 Rebecca Beeson,

SteveMadden.com

c '--. ;" If. -'- :A &i

NO, e979 P. 1

Dear Gila and Johnny,

Congratulations on your newest location at the Beverly Center. We are very excited about out new partnership expanding into the kids division. As mentioned, our Diesel Adult store in the Beverly Center receives requests for Diesel Kids apparel daily, now you are so convenient for them to direct th& business to,

The store looks amazing, and is very inviting for kids of all ages, as well as those young at heart. The Beverly Center needed a kids concept store for quit some time. We are very excited to be apart of you success in both Beverly Center as well as the Mens locations. We hope to expand OUT partnership with you into your new Laguna Beach localjon Diesel Kids is not preL .z3zEFhA

Diesel Kid adopted a free spirited attitude, energy and character. It is a unique European- brand recognized worldwide, We are confident that this will be carried out in your potential new location in Laguna Beach, as your concept carries a uniqueness all its own.

We wish you continued success.

Irene Terrones DIESEL Kids West Coast Sales 310452-2322ext 200 irene [email protected]

Junior Girl - IStDelivery Ships 111 5108 - 2128108 6(XS) - 8(S) -1 O(M) -12(L) - 14(XL) - 1G(XXL)

JA93-Y DA-TITTISRE K301 FUCHSIA $18/39

JZU-YAR-TEMBLUA Kl00 WHITE $1 1/25 Junior Girl - IStDelivery Ships 1/15/08 - 2/28/08 6(XS) - 8(S) -1O(M) -1 2(L) - 14(XL) -

JA71 -XNK-GLETTA K900 BLACK $36179

JA9Y-YFIVI-TEDERICA JBAL-Y2U-CETTY Kl00 WHITE KlOO, WHITE $22149 $30165 Junior Girl - Ist Delivery Ships 111 5/08 - 2/28/08 6(XS) - 8(S) -1 O(M) -12(L) - 14(XL) - 16(XXL)

JA7N-YDK-TROLL1 K618 CREAMIBLUEIPURPLE Kg00 BLACWFUCHSIA $25155

JA9S-YXI-SUSSON K618 BLUEIPURPLEICREAM $40189

JA7M-YDK-DISERENE K618 CREAMIBLUEIPURPLE Kg00 FUCHSIAIBLACK

Roar 2121 S. LOS BNGEJXS ST.,LOS BNGELES, CA 90011,CL13.744.liG5, ~.ROARUSACO3I

Hey Gila,

I hope that this find you well.

I understand that you are opening another store in Laguna Beach that is selling women's clothes.

That is terrific. We are expanding our line this month and creating a women's line that is called PURR. It will also be hand made goods imported fiom Italy. With the Success we had in your doors in Los Angeles with our men's line, we feel we would be a great match with this line as well.

Let me know what I have to do to get that moving with you all.

I wish you luck and look forward to working with you with PURR.

Joshua Coleman Roar Clothing 2121 Los Angeles St. Los Angeles, Ca 9001 1 T. 2 13-744-1766 ex 205 F. 213-744-1490 C. 917-353-0005

t;'ULCAGE, LLC 54U South Spring Street, Suite 604 Los Angeles, CA 901113 (213)622-4402 work (213)622-4042 kin

'I'o whom it may concern,

Tllc owllcrs Gila and Johnny have heen arnazingstol.e owner's to work with. This upconlirlg, amazing boutique is not only going to he funky,and trendy but edgy. Our company, Vulcage has heen doing business with tlrese store owners for the past 2 years, and we were vcry cxcitcd whcrl we found out that they rnigllt he operli~~ga women's division. We havc visitcd many boutiques in Laguna Beach for store phccmcnt, and wc havc not bccn able to find a houtique that best suits out- typc of clothing. As a successful boutiquc it is vcry important tr, offer customers a variety of apparel. 1 truly believe that Gila and J~~IIIIIYhave extensive experience in the fashiorl worlcl, and the - ol~eningof the boutique will be a very smart decisior~for the community. Thanlc you for your tirnc.

Best Kegards,

lJeggy Khoucasiarl

Procl~~ctionManager Colors: black. Ivory, lt3les: Earth, Olive Green, 'ree of Life Dark Chocolate, ,udclha 5 Buttedies Curry, Brilliant ing 'fang Koi Orange, Peacock 'ildflower Peace Sign +-t5 7 Hj6 #+5 2 WjO

. ~..< .e:.,,oc3.I::..- .s+. -<.-, ;+-. &r*- b: ..:: .. ..,%,>:.&. -..

+:; +:; ..,_-i . . .a>- , .T&+ . .. .; :. . .-.* . . . &..?:- ,. :.. < - .:,,: . :. :. -..-..-. - .-. .*r

Cobrs: BlacL, !*.:03,;,Ink, C)=a? P~.rp!:~Silver . . ., ...... < . . .:...... ! . Dear... ~ila.&ibovftch,.,,;...... :., .:...... , .9 .: .' ...... _,...... :I: ...... GIVATCANADA 13 JERUSALEM 93890 ISRAEL TEL 972 2 6766615 [email protected]~-t.il

TO whom it may concern, ~ugust2 2008

We design, manufidure an4 market our own original iewelry. We have a very fishion forward, upscale line that has attraded the notice ofpeople at the top of the fishion industry.

We were invited to do a show at the headquarten of~ondeNast, publishers of Vogue and Vanity Fair magazines.

Our line is featured in Bloomingdales New York, among other select stores, and we are NOT represented in hguna Beach.

We're very interested in having representation in hguna each and feel our edgy, bold. and colorful line is well suited to the vision that we know the owners of Premier Men, ~ilaand lohnny, will bring to their first Women's fsshion location.

We know that the women of hguna Beach win be very glad to have a new shopping location with the fsshion and accessories they couldn't find so close to home before.

Bells Baran owner and Sales Manager 200 W 38'M. SI.IITE1 010 NYC 1 'j0 16

To Worn It May Concern:

We have been doing buskess with Gila Leibo~-itchfor three years - during rhis he,she has evolved in to ow single L~gestaccoilt on the westcoast We value her support and most qortantly, the oppcatuoi~to hme our label exposed t~ her dkcmkg customer base.

Yd-ah, is s leather outerwear lsbd thnt is ?c,sitioced in the better market, at the hest specialty s:o:orcs in hc G.S., Japan and Canada. ?lie line features ~tagetzeatments md ir~aovatireshs. Our hc, dcsiprd +I -Zdilan, Ttdg, pr&s a Europeiln sensibili~wit?s denim friendly styiing.

Ghk an esceDmt customer and 1 h~coo hesitador! in reconmcndirlg hcr.

Email: ~~v~.k~@bil-us~.corn Phone: 2 1239E-71 11 SMASH 480 1 Staunton Ave. Los Angles, CA 90058

To Whom It May Concern,

It is a pleasure to share yet another exciting year with you. As it is demonstrated from our continued success, we have come a long way to keep our line catering to the modem trendy contemporary man and are now introducing a new line for women, all custos made.

Check us out www.Smashtrends.com

Our collection conveys the time spent extensively researching the latest trends in fashion, technology to washing, printing, embroidery techniques and also the latest in fabric qualities. As a result, Melrose Place one of our largest retailers, whom have brought us much success from the beginning. Furthermore, it would be an awesome opport&ty for us to collaborate to expand our business to Laguna Beach, CA as well.

, please do not hesitate to contact us at 213 995- 5555

President REBEL SPIRIT CLOTHING

1226 JOHN REED CT CITY OF INDUSTRY. CA 91 745 TEL. 626.369.3700. FAX. 626.369.3708. WW.REBELSPlRlTCLOTHING.COM

Aug. 08, 2008

Dear Gila and Johnny,

We are so excited to hear that you have the opportunity to open a woman's boutique in downtown Laguna Beach! We have been doing great business with you in our men's division for the past 3 years, and would love to have representation in Laguna Beach for women. We haven't been able to find any other boutiques in Laguna that also have the unique look we do. We will continue to hand embroider our wovens and tees for women.

Our line is growing well, and our unique embroidered look will continue to be the latest in cutting edge fashion. Our women's division is doing very well, and we cannot wait to have it in Orange County.

We have enclosed an updated brochure, please contact our main office to schedule an appointment for Magic Las Vegas.

Jason He

CEO Rebel Spirit Clothing

YC GUESS MAY 2008 (511 DELIVERY)

;we YBmm )esc SlS TINA CARD1 abric SWTR DIANE *s WHT BM WO~- TROPICAL VIOLET MUL~

Style Y8273300 Desc StCHLOE DRESS :abfic UGHT GAUZE Fabric PATCHWORK PRINT SILK HABOTAI MS WHT CdUS YF17 - TEALMULTI

Asrp S59.00 fC GUESS MAY 2008 (511 DELIVER3

YB2m9m SW ~ - STR DESlF Desc -SA GIG1 TOP xic STR COVETTWIU MAYA JERSEY us BLK I wm

Cost S 21.00

Ye2344w sw : Sn WATERFALL QUESS TANK Desc S(L GIRAFFE FLORAL TANK c REDONDARIB F.kic OASIS JERSEY + BU- BLUE LAGOON Cokrs YBP1800 BBLM (BLUQ HTHP - HOTHOUSE PINK YBU1801 HTHP (HOT HOUSE PINK) BLK YC GUESS MAY 2008 (511 DELIVER3

Style Y8234700 Desc Sll JANE HALTER Fm JAMIE JERSEY

Cost $ 38.50 Msrp

WllM SrYk SA HUMMING BIRD TANK kc S/L MARlPOSA TANK REDONDA RIB Fabnc REDONDA RIB rnP Cdon PMQ - PALM GREEN

-Msrp $ 34.00 Cust $ 16.00 Msrp $ 34.W Cost S 16.00 YC GUES

Styla Y8274600 Desc SL AMBER DRESS Disc SR JESSIE DRESS Fabric DAYTIME VOILE Fabrk SILKCHIFFON Cdas W HT Was MILK

lSrp 5 79.00

stvle Desc -Sn MEGAN DEEP V TOP Fabric TAWR SOUD Fabric CHARISMA JERSEY Cdom EM Cdas BKSL ROW

(MSV $ 69.00 Cost $ 33.50 23.50

RECORDING REQUESTED BY CITY OF LAGUNA BEACH AND WHEN RECORDED MAIL TO:

CITY CLERK CITY OF LAGUNA BEACH 505 FOREST AVENUE LAGUNA BEACH, CA 9265 1

I (Fee Exempt per Govt. Code 6103) THIS SPACE RESERVED FOR RECORDING

RESOLUTION NO. 08-30

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LAGLINA BEACH APPROVING CONDITIONAL USE PERMIT 08-30 AT 361 FOREST AVENUE, SUITE 101

WHEREAS, an application has been filed by the prospective tenant of property located at

361 Forest Avenue, Suite 101 requesting a Conditional Use Pennit in accordance with the

provisions of Municipal Code Section 25.05.030 to establish a women's and girls' (ages 7-14)

clothing store specializing in clean, tailored, European and upscale clothing; and

WHEREAS, the owner of the subject property has authorized in writing the submittal of the

application for a Conditional Use Permit; and

WHEREAS, the Planning Commission of the City of Laguna Beach, acting in accordance

with the provisions of Municipal Code Section 25.05.030, conducted a legally noticed public

hearing regarding this proposal on October 22,2008; and

WHEREAS, the Planning Commission carellly considered the oral and documentary

evidence and arguments presented at the hearing; and

WHEREAS, the proposed project is exempt fiom the provisions of the California

Environmental Quality Act in accordance with Class 1, Existing Facilities; and

WHEREAS, the Planning Commission has made the following findings: Conditional Use Permit 08-30 October 22,2008 Page 2

1. The site is adequate to accommodate the use without adverse impact on abutting property or on parking or traffic circulation in the downtown area in that the parking is legal, non-conforming with no intensification of use proposed; and no additional traffic will be generated and existing conditions are adequate.

2. The proposed use will maintain a balanced mix of uses that serves the needs of both local and non-local populations in that use offers merchandise to both residents and visitors.

3. The granting of the Conditional Use Permit will not produce an incremental effect of similar uses that would be detrimental to the City in that the use will not increase the number of women's clothing stores in the downtown.

4. The proposed use is consistent with the intent and purpose of the CBD-2, Downtown

Commercial Zoning District, in which it is located, and the goals and policies of the Downtown

Specific Plan and the City's General Plan in that the use is not a cumulative effect of similar uses and maintains the balance of resident- and visitor-serving businesses.

5. The Conditions stated in the decision are necessary to protect the public health, safety and general welfare to assure continued land-use compatibility.

6. The business will not primarily engage in the retail sale of bathing suits or T-shirts.

NOW, THEREFORE, BE IT RESOLVED that Conditional Use Permit 08-30

is hereby granted to the following extent:

Approval to establish a women's and girls' (ages 7-14) clothing store specializing in clean, tailored, European and upscale clothing; and

BE IT FLlRTHER RESOLVED, that the following condition(s) are set forth to protect the Conditional Use Permit 08-30 October 22,2008 Page 3 health, safety and welfare of the community and to assure the intent and purpose of the regulations:

1. The Conditional Use Permit shall be subject to review if written complaints are received, and shall be subject to administrative review one (1) year after issuance of the certificate of use to determine if the approved conditions of approval are in compliance. These reviews may result in a formal noticed public hearing before the Planning Commission. After the public hearing on the matter, the Planning Commission may require immediate condition compliance, amend the conditions of approval or proceed with revocation of the Conditional Use Permit as specified in

Municipal Code Section 25.05.075.

2. It is understood that the conditions of approval apply herein to any future owners or lessees operating under this Conditional Use Permit. This means in legal terms that the conditions of approval for the Conditional Use Permit shall be and hereby are obligations of and binding upon the applicant and hislher heirs, successors, assigns, agents and representatives. The conditions shall constitute a covenant running with and binding the land in accordance with the provisions of

California Civil Code Section 1468. Failure to comply with such conditions, and each of them, and any other related federal, state and local regulations may be grounds for revocation of the

Conditional Use Permit, in addition to other remedies that may be available to the City.

3. Applicable Certificate of Use andlor Certificate of Occupancy shall not be issued until City staff has verified compliance with all conditions of approval.

4. This Conditional Use Permit shall not become effective until any required Design Review approval has been obtained.

5. This Conditional Use Permit shall not become effective until the owner of the subject property Conditional Use Permit 08-30 October 22,2008 Page 4 has signed an afidavit in the form attached to this Resolution, whereby the property owner acknowledges and consents to the imposition of the conditions set forth in this Resolution, and agrees that such conditions shall constitute restrictions running with the land and shall be binding upon the property owner and their heirs, successors and assigns. If the applicant is different than the owner of the subject property, then this Conditional Use Permit shall also not become effective until the applicant has signed an afidavit in the form attached to this Resolution, whereby the applicant acknowledges and consents to the imposition of the conditions set forth in this Resolution, and agrees that such conditions shall be binding upon the applicant and their heirs, successors and assigns.

6. This Conditional Use Permit shall lapse and automatically become void two years following the effective date unless: a) the privileges authorized are established; or b) a building permit is issued and construction is begun and diligently pursued to completion; or c) an extension of time is granted pursuant to Municipal Code Section 25.05.030 (I).

7. If the use authorized under this Resolution and Conditional Use Permit is abandoned or terminated for any reason for a period of at least one year, the Conditional Use Permit shall automatically expire and become void.

8. In the absence of specific provisions or conditions herein to the contrary, the application and all plans or exhibits attached to the application are relied upon, incorporated and made a part of this resolution. It is required that such plans or exhibits be complied with and implemented in a consistent manner with the approved use and other conditions of approval. Such plans and exhibits for which this Conditional Use Permit has been granted shall not be changed or amended except Conditional Use Permit 08-30 October 22,2008 Page 5 pursuant to a subsequent Conditional Use Permit or Variance as might otherwise be required or granted pursuant to the terms of Title 25 of the City of Laguna Beach Municipal Code.

9. No additions or enlargements of structures upon property for which this Conditional Use Permit has been granted shall be allowed except pursuant to a subsequent Conditional Use Permit or

Variance as might otherwise be required or granted pursuant to the terms of Title 25 of the City of

Laguna Beach Municipal Code.

10. The sale of tee-shirts, bathing suits and ivory shall be prohibited.

11. Outdoor display or outside seating of any kind shall be prohibited, unless approved as an amendment to this Conditional Use Permit. Application for such an amendment may only be accepted for processing, if outdoor display andor outside seating are permitted use(s) in the applicable zoning district.

12. A City business license shall be obtained prior to the operation of any business use permitted by this Conditional Use Permit.

13. No proposed change or modification to the specifically permitted use to establish a retail store specializing in women's and girls' clothing and accessories; and shall be allowed except pursuant to a subsequent or amended Conditional Use Permit granted pursuant to the terms of Title 25 of the

City of Laguna Beach Municipal Code.

14. The applicant shall not allow, act, cause or permit any lessee, agent, employee, exhibitor or concessionaire any "prohibited discharge" (as defined in Municipal Code Section 16.01.020) into the City's storm water drainage system.

15. The applicant (and the applicant's successors or assigns) shall defend, indemnify and hold Conditional Use Permit 08-30 October 22,2008 Page 6 harmless the City and its officers, employees and agents from any claim, action, proceeding, demand, damage, loss or liability arising out of or resulting from (a) the approval of this

Conditional Use Permit and (b) the use and occupancy of the subject property in accordance with the project approval.

16. The required parking shall be available free of charge to the tenants and customers of the proposed business during the approved hours of operation.

17. The hours of operation shall be limited to 10:OO a.m. to 8:00 p.m. daily.

18. Only costume jewelry sales (jewelry containing non-precious stones) shall be permitted and shall be limited in display area of up to two display cases, each no larger than two feet by two feet by two feet (8 cubic feet) and no window display shall be allowed.

19. A maximum of 70% of displayed merchandise shall be limited to women's clothing.

Decorative household items, including but not limited to candles and picture frames, shall not be offered for sale.

20. At least 30% of the display area shall be designated for girls' (ages 7-14) clothing and accessories.

21. A minimum of 25% of all merchandise shall be the store's private label clothing.

NOW THEREFORE BE IT RESOLVED that the above decision was rendered on October

22,2008.

ADOPTED this 22nd day of October, 2008. Conditional Use Permit 08-30 October 22,2008 Page 7

AYES: Commissioner(s)

NOES: Cornmissioner(s)

ABSENT: Commissioner(s)

ATTEST:

Norm Grossman, Chairperson Planning Commission City of Laguna Beach, Califomia

John Montgomery, Director Community Development City of Laguna Beach, Califomia