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Resort Developer May Withdraw Boat Proposal

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The developer of the Treasure Island resort is reconsidering a controversial plan to moor a 50-foot boat 550 feet offshore of south Laguna Beach.

The Athens Group of Phoenix has approval from the U.S. Coast Guard, the U.S. Army Corps of Engineers, the California Department of Fish and Game, the State Lands Commission and the State Water Resources Control Board. But Laguna Beach officials, who say they only recently learned of the plan, say it violates a city ordinance banning motorized watercraft within 200 yards of shore. The boat was to be used for sunset cruises and fishing expeditions.

The proposal was to go to the California Coastal Commission--its last hurdle--at a November meeting in Los Angeles. Athens Group officials said this week they have not yet decided whether to withdraw the application to build a concrete-and-buoy mooring system for the boat.

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The $150-million project, which will include a 275-room resort, 17 homes and 14 condominiums, is to open in 2003.

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