Laguna Beach Arts Fest May Take Its Act South

Laguna Beach’s popular Festival of the Arts, locked in a bitter dispute with the city over how much rent it should pay, is making overtures to San Clemente about relocating there, a festival official confirmed Thursday.

The festival’s directors sent a letter to San Clemente this week saying they want to negotiate exclusively with that city in seeking a new home for the event, a summer fixture in Laguna Beach for 68 years. A hilltop site near the new Talega development on the east side of San Clemente is a possibility, according to the letter.

“What we’re looking for now is a lease that will last 20 to 30 years,” said Sherri Butterfield, festival president. “We want a long-term commitment that will work for us in good economic times and slow economic times.”

The festival, which now leases 5.6 acres in Laguna Beach, is seeking a 30-acre lot in San Clemente where the festival can expand to include larger offices, an amphitheater, a museum, educational facilities and a restaurant, according to the letter.

The festival, a nonprofit organization, filed a federal lawsuit against Laguna Beach last month alleging that its rent is discriminatory compared to what other groups pay and a violation of the organization’s 1st Amendment rights. Under the current lease agreement, the festival pays the city 13.75% of its gross annual income, about $600,000 a year.

Laguna Beach Mayor Kathleen Blackburn proposed dropping the festival’s rent to 13.5% of income and allocating $300,000 a year for capital improvements to the festival’s grounds, but festival officials rejected the offer.

City Manager Kenneth C. Frank said Laguna Beach is serious about finding a compromise. “We’re willing to work with them just as we always have if they’re open to it,” he said of festival officials.

Meanwhile, San Clemente Mayor Susan Ritschel said her city would be delighted to host the festival.

“The opportunity for San Clemente to house such a culturally rich venture would be a tremendous and great benefit to the city,” she said. “Obviously there are a lot of issues to address and review, but I’m pleased to have the opportunity to begin that process.”

Ritschel said the city did not seriously consider the prospect until festival officials proposed to negotiate exclusively with San Clemente.

“Now we have the commitment from them,” she said.

San Clemente City Manager Michael W. Parness said the City Council will discuss the festival’s inquiry at its meeting Tuesday. Agreeing on terms would take at least 90 days, he said.