By Jackie Connor, Special to the Independent
In a significant and unanimous decision, the Laguna Beach City Council voted to enter into an economic incentive agreement with Rivian, an electric vehicle manufacturer. The agreement will permit the company to sell vehicles directly from its downtown location at the South Coast Theater.
The decision is contingent on the city planning commission approving a Conditional Use Permit (CUP) to sell Rivian vehicles. This would allow for financing, price discussions and test drives as part of the company’s expanded operations.
“Rivian has been very matter-of-fact. They have no intention of eliminating their public programs or nonprofit events as part of this request,” said Assistant City Manager Jeremy Frimond at this week’s council meeting. “The public benefits are downtown improvements, which I have suggested storefront improvements to 224-226 Ocean (Avenue), which has been in disrepair for many years.”
The Planning Commission will review the CUP amendment, which could approve the full scope of Rivian’s plans by the end of the year. City Council emphasized the partnership with Rivian has the potential to be a new revenue resource that aligns with the city’s continued environmental and community development goals.
The agreement includes a 10-year tax-sharing arrangement and is expected to generate $1.1 to $2.3 million in revenue over a decade.
In the first three years, 65% of the generated sales tax will go to Rivian, with the city receiving the remaining 35%, which will be allocated to the Energy Efficiency Revolving Loan Fund. After three years, sales tax would be split in half, with 50% allocated for Rivian and 50% for the city, to incentivize the company. These monies will be earmarked for projects promoting clean energy initiatives via tax credits, such as installing microgrid systems, charging infrastructure and transitioning vehicle fleets to electric vehicle technology.
“I’m glad you guys came to town. I’m glad you bought the theater,” Mayor Sue Kempf said to Rivian representatives at Tuesday’s meeting. “It’s been a game changer for our town and…I think it’s kind of awakened the town to what other things we could have going on here.”
As part of the expansion, Rivian plans to renovate the Laguna Beach Dry Cleaner building at 224-226 Ocean Ave. The company said the proposed renovations will mirror the successful refurbishment of the Rivian Theater, which the automaker purchased the historic South Coast Theater in 2020. Since its grand opening in December 2023, the revamped space has featured 142 community events and movie screenings, drawing in over 11,000 attendees and serving as a welcome center for interested car buyers.
In addition to the Rivian South Coast Theater being its flagship Southern California location, the automaker opened a Venice Beach location in 2021 featuring its vehicles alongside community events using the same business strategy. These unique spaces are part of the company’s larger move away from the conventional car dealership feel toward providing experiences that exemplify the brand’s desire to be associated with adventure-centric, forward-thinking communities across the nation that value environmental stewardship, such as Laguna Beach. Other Rivian storefront locations include five in California, one in Colorado, Georgia, Illinois, Massachusetts, New York, Tennessee, Texas and Washington, and one in British Columbia.
“It’s become a commonplace in our community, and I’m really proud of what we’ve done,” said Nicola Freeman, the general manager of Rivian Theater. “The intent with any of these suggested changes is not to have any interruptions to those programmings—that will continue…it’s a big thing I’m committed to bringing to the city of Laguna [Beach].”
With the agreement in place, Rivian will meet with the Planning Commission and seek to finalize its expansion plans and begin vehicle sales by the end of the year.
