City Approves Pact to Buy Laguna Canyon Land

LAGUNA BEACH —  Environmentalists and city officials patted themselves on the back Tuesday as the City Council unanimously approved a historic agreement to buy 2,150 acres of scenic Laguna Canyon land from the Irvine Co.

But approval of the $78-million five-year purchase agreement, which preserves one of the last undeveloped coastal canyons in Southern California, did not come without some criticism.

Although the city is effectively blocking the company’s proposed 3,200-unit development there, a few residents complained that in the bargain, the city has also agreed to set aside land for the proposed San Joaquin Transportation Corridor, a project the city officially opposes.

With the final sales agreement, the council also approved the sale of a $20-million bond issue for the city’s $33-million down payment for the land, due June 30. The bond issue was approved last November by almost 80% of the city’s voters.

“I really want to thank the people of the city for being willing to put their money where their values are,” Councilman Lida Lenney said before the vote was taken.

Councilman Robert F. Gentry, noting that an open-space purchase of this magnitude is rare among U.S. cities, said: “We are ready to go forward and provide for the people of Orange County the kind of open space we deserve.”

Praise also came from environmentalists, including Laguna Greenbelt Inc. President Elisabeth Brown, who recounted previous successes and failures in the city’s attempts to acquire open space.

“Tonight is one of the good times because we are putting that to rest once and for all,” she said of the development proposal.

But environmental activist Beth Leeds said: “If we leave this open for (land) dedication for the (tollway) corridor, how can we say we are against the corridor?”

City Manager Kenneth C. Frank, who negotiated on behalf of the city for the purchase, said that although the final pact was not precisely what had been agreed to last October when an “agreement in principle” was reached, “as a practical matter, the amount of open space that would be available to the city does not change.”

Among the changes:

* The city will receive 400 acres less than previously anticipated. The land will be set aside in case the alignment for the toll road changes to meet environmental concerns. Parcels not used for the toll road would be returned to the city as open space.

* In return, the Irvine Co. agreed to cut $4.6 million from fees that could have totaled as much as $8 million in later years of the contract. The company also added 10 acres of property next to Laurel Canyon that was not part of the original land package.

* In a separate agreement to be finalized later, Orange County will contribute $10 million over a four-year period and have part ownership of the land. The county will manage what effectively will become a 15,000-acre regional park that will include the site known as Laguna Laurel as well as the county’s Aliso and Wood Canyons Regional Park, the Sycamore Hills property owned by the city, Bommer and Shady canyon parks in the city of Irvine, Crystal Cove State Park and Irvine Coast open space owned by the company.

In response to a concern that a future city council could change the plan, environmental groups were promised a representative on an advisory committee that will oversee policy issues relating to the new park. Other members will include representatives from the state, county, and the cities of Laguna Beach and Irvine.

* The council also agreed to transfer ownership of 84 acres to the state Department of Fish and Game in exchange for $4 million that would be applied to the purchase price.

In a related matter, the city in a closed-door session discussed but took no action on whether to proceed with the sale of 137 acres of Sycamore Hills land to the county.

As part of an agreement with the county dating to 1978, the city already has accepted $1 million for the land that would be used for the toll road. The parcels are situated northeast of the junction of Laguna Canyon and El Toro roads.

If the city goes ahead with the Sycamore Hills land sale, the balance due--about $7 million--could be used to buy the canyon land.