“Our Town, Our Paper”
lagunabeachindy.com
AUGUST 16, 2024 | Volume XXI, Issue 33
Rivian Eying Future Vehicle Sales in Laguna
Laguna Beach Businessman Pleads Guilty to Embezzling Almost $6 Million
Rivian hopes to sell its vehicles out of the South Coast Theater location by 2025. Photo/Mitch Ridder
By Jackie Connor 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 taxsharing 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
With you every step of the way. 949.485.9898 | ChrisTebbuttGroup.com | DRE 01993864
RIVIAN, PAGE 3
By Clara Beard | LB Indy A Laguna Beach businessman pleaded guilty Monday, Aug. 12, to embezzling almost $6 million from his clients over several years, authorities said. David Robert McDonnell, 74, an executor of wealthy people’s estates, also pleaded guilty to one count of wire fraud. According to his plea agreement, from 2018 to January 2024, McDonnell ran McDonnell Business Services, a Laguna Beach-based company located on 3rd Street. Through his company, high-networth individuals hired McDonnell to be the executor of their trusts. As an executor, McDonnell managed the trusts’ assets and, when the individuals died, sold them to distribute the proceeds to the trusts’ beneficiaries. Instead, McDonnell pleaded guilty to liquidating the assets and diverting the money to his personal bank accounts. The Laguna Beach Police Department launched an investigation when a beneficiary from one of the trusts contacted the EMBEZZLEMENT, PAGE 14
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