Cityhood Foes Back Incorporation : Government: Leaders of opposition have become convinced that a Laguna Niguel municipality would not have to raise taxes.

Leaders of the only organized group opposed to cityhood for Laguna Niguel announced Tuesday that they are disbanding and instead will support incorporation in Tuesday’s election.

Debi Larsen, a leader of Stop Cityhood, said a newly issued budget analysis had convinced most members of the opposition group that Laguna Niguel can afford to be a city after all and that incorporation will not result in higher taxes.

That analysis, made by an Oceanside consulting firm and released Oct. 9, said Laguna Niguel could operate comfortably in the black--with a $3.5-million surplus its first year--if it became a city.

“Our main concern of Stop Cityhood was taxes--that taxes would go up,” Larsen said.

She said the new budget analysis had allayed the fears of most of the group’s 30 members but added that about a fourth of Stop Cityhood’s rank and file still opposes incorporation.

“I think clearly the new budget (analysis) shows that cityhood is feasible,” Larsen said. “Therefore, we decided that Stop Cityhood should no longer exist.”

Dennis Head, treasurer of Stop Cityhood, added: “We’re now giving our endorsement to cityhood for Laguna Niguel.”

The announcement by Larsen and Head was welcomed warmly by supporters of Laguna Niguel cityhood. “This puts all of us in this community as being united together,” said Denny Harris, executive committee member of Citizens for Cityhood.

Harris noted that the demise of Stop Cityhood leaves no organized effort against cityhood in the crucial final days before the election.

Stop Cityhood formed in late August. While small in number, it attracted substantial attention because the organization was a counterpoint to pro-cityhood forces at public forums. Stop Cityhood also had some members working with local neighborhood and community groups, questioning the need for incorporation.

The remaining members who oppose incorporation include some Laguna Niguel residents who favor the community’s annexation to San Juan Capistrano, Dana Point or some other neighboring community. Both Head and Larsen said those opponents have indicated that they will not take an active role between now and Tuesday in trying to derail cityhood.

During a press conference Tuesday morning, Head said many outside groups had offered to help Stop Cityhood fight incorporation. Those groups, he said, ranged from developers--who feared that a new city would halt development in the area--to representatives of neighboring cities eager to annex chunks of the area.

Head predicted that neighboring cities would move to annex Laguna Niguel districts if cityhood is voted down.

Head also said he believes that if it becomes a city, Laguna Niguel will be in a better position to continue its legal fight to win back Monarch Beach. The 1.5-mile coastal strip, which originally was part of the Laguna Niguel planned community, was placed instead in the proposed new city of Dana Point in 1988 by the Orange County Local Agency Formation Commission. The panel acted after Monarch Beach residents favored being tied to Dana Point in a straw poll. When Dana Point residents approved cityhood last fall, Monarch Beach then became part of that new city.

But Laguna Niguel residents, who see Monarch Beach as an essential part of their community’s identity, have a legal challenge to win back the coastline pending before the 4th District Court of Appeal.

“Getting back that coastal strip is very important to residents of this community,” Head said.