Treasure Island Proposal on City Council Agenda

The City Council could vote Tuesday on some elements of a plan to redevelop a trailer park in south Laguna Beach into a $100-million resort.

It will be the second meeting in two weeks to discuss the Treasure Island project, which is considered the largest development proposal in Laguna in 15 years. The council cannot give the project final approval because the city’s Planning Commission still must sign off on it, City Manager Kenneth C. Frank said.

Plans to convert the mobile home park into a 100-room hotel, along with 25 villas and 37 homes, have angered some residents, who say it is too dense and too commercial for the spectacular beachfront setting. But a hotel resort would generate an estimated $1.8 million in tax revenue a year, including nearly $1.5 million from hotel tax, officials have said.

Merrill Lynch, the property owner, is expected to announce the project developer at the meeting, scheduled for 6 p.m. in the council chambers, 505 Forest Ave.