Water Agency Rejected in Bid for L.A. Land
The city of Los Angeles will reject a bid by the Castaic Lake Water Agency to buy 520 acres of city land in Saugus for $15.8 million because the offer is too low, a Los Angeles official said Monday.
But Bill Mercer, an analyst in the city administrative office, said Los Angeles would be willing to negotiate with the water agency over 60 to 80 acres the agency wants for a water treatment plant on the property, which is the site of the defunct Saugus Rehabilitation Center.
The Santa Clarita City Council wants the rest of the former alcoholic rehabilitation center for a city hall and park. The City Council and water agency recently agreed to pursue purchase of the Saugus property together, with the agency taking the lead in the negotiations.
Mercer said Los Angeles would not consider selling the entire parcel to the water agency because it previously expressed interest only in buying enough acreage for a treatment plant. He would not disclose how much Los Angeles officials believe the Saugus property is worth, saying they want to preserve their bargaining power.
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