Ole Hanson, a real estate developer and one-time mayor of Seattle, visited San Clemente in the early 1920s and chose the site to create his ideal community, a "Spanish Village by the Sea".

[3] On December 6, 1925, Hanson persuaded people who had driven from Los Angeles and the surrounding areas for a free chicken dinner and a sales pitch to buy more than 300 lots in what then was a desolate landscape remote from the rest of southern California.

[8] Lindbom used an eclectic "Spanish Revival" style[8][9] with the main entrance to the house taking the form of a moon gate.

[1][8] For the next several years, its proposed use was debated, but in November 2001 the city council voted to designate it as a cultural center with a mixture of public and private funding.

[11] The vote was swayed by a $1.25 million anonymous donation through the Orange County Community Foundation earmarked for use for a cultural arts or educational center.

[18] The city and transportation agencies are considering construction of a retaining wall at the base of the hill to protect the rail line.

[15] In July 2023, the Orange County Transportation Authority and the city of San Clemente are constructing the retaining wall.

The center provides programs for all ages in arts, music, history, horticulture, and literature,[13] including more than 60 concerts, workshops, classes, recitals, lectures, and other events per year.

These include the Classical Music Festival and Academy[21] and a specially commissioned version of Shakespeare's Hamlet.