Rancho Palos Verdes turns to its best known attraction to help pay for landslide damages

Rancho Palos Verdes’ landslide woes have hit the city’s coffers hard. By the end of June 2027, the city will have spent around $75 million just on landslide-related damages over the last three and a half years.

So now, they are looking at one of the city’s best-known attractions for help: the Terranea Resort. Voters in the city are being asked to vote in November on Measure RS, which would increase the tax overnight hotel guests pay from 10% to 13%.

A two-star inn in the city would also be affected if the tax measure passes.

How would the tax help?

If Measure RS passes, it could bring in around $2.2 million annually.

“We reached out to Terranea as we were exploring different revenue streams and talked to them about the possibility of increasing the [transient occupancy tax] from 10% to 13%,” said Ara Mihranian, the city manager. “We looked at comparables of similar resort hotels in the greater Los Angeles area and Orange County that are generally their competitors or similar establishments to see where they ranked. And Terranea was below the market rate in terms of the transient occupancy tax.”

The 102-acre resort sits on bluffs along the coast overlooking the Pacific Ocean and offers guests casitas, villas and rooms that start at $350 and can exceed $1,500 during peak seasons.

A spokesperson for Terranea Resort declined to comment for this story.

How we got here

The Portuguese Bend area in Rancho Palos Verdes was once green rolling hills offering spectacular views of the Pacific Ocean and Catalina Island. Now, much of that land is riddled with 20-foot chasms, some spanning 12 feet.

For decades, land movement was minimal. But with above-average rainfall in 2022 and 2023, that movement rapidly accelerated — up to 1 foot per week in some places. Land movement has since slowed to about an inch a week, thanks in part to wells the city installed that suck water out of the ground. But damage to the area remains and will likely never be abated.

RPV has spent a significant amount of money to lessen the erosion.

Mihranian said the city has filled fissures in the landslide area, installed protective lining in the canyons and has checked all the deep dewatering wells to make sure they can pump water out of the ground so it cannot collect and cause land movement — especially important ahead of El Niño.

“We're also making sure that the wells and the generators that support and energize the wells are encased and housed so that in the event of extreme weather, they are protected from any elements,” he said.

The city has also installed pipes along the main road through the landslide complex so that, instead of flooding the road, water will be diverted to the ocean.

Still, even if the measure passes, the $2.2 million annually will still not cover all landslide-related costs. A spokesperson told LAist the city is still “aggressively” pursuing grants to cover mounting costs.