Leaking Oil Tank Stalls Laguna Playhouse Plans

The Laguna Playhouse has hit a major snag in its bid to expand to a second theater in Laguna Beach, stalling efforts to launch the company’s first professional season in its 68-year history.

Officials at the playhouse, which will open its regular community theater season at the 418-seat Moulton Theatre on Thursday with “How to Succeed in Business Without Really Trying,” had expected to take possession of the former General Telephone building (480 Mermaid St.) on Sept. 1 for conversion into a 225-seat venue at a cost of about $500,000. The theater was looking forward to a professional season beginning in February.

But soil and water contamination from an oil-tank leak under the building’s slab has prevented the signing of a lease, according to Tom Leweck, public affairs director of GTE California.

“They have to take care of this before we can take possession,” Laguna Playhouse general manager Jody Davidson confirmed Tuesday. “We’re disappointed. What this does is push back the opening of the second theater until the fall (of 1989).”

The site must be pumped out, the soil tested and the water quality approved before the telephone company will lease the building. “Right now, we’re trying to determine the extent of contamination and how to resolve it,” Leweck said. “It will probably be spring before it can be resolved.”

The playhouse has long sought to expand operations. A year ago, it announced that negotiations for the telephone building were in the final stage and that the troupe hoped to move in by mid-1988. Last February, the Laguna Beach City Council approved a conditional-use permit to convert the building to a theater. The California Coastal Commission gave its assent in July.

This is the second time that contamination problems have caused a delay, Davidson said. Nine months ago, asbestos contamination was discovered in the building. Leweck said the asbestos cleanup was successful.