‘Jungleland’ Project’s Cost Still Unclear : Thousand Oaks: A suit over the value of the former theme park site has been delayed, and a critic of the city’s plan predicts ‘financial disaster.’

Although Thousand Oaks officials are forging ahead with plans for a $75-million civic and commercial complex, a lingering dispute over the price of the land is slated to bring the city into court next spring and threatens to increase the cost of the project.

At issue is how much the city should pay for a condemned, 20-acre site off the Ventura Freeway, former location of the defunct Jungleland theme park. The trial of a suit brought by the land’s former owner had been scheduled to begin this week in Ventura Superior Court, but a backlog of cases postponed the matter until April 9, 1990, lawyers said Thursday.

The proposed joint venture between the city and Lowe Development Corp. of Los Angeles would include a government center with a new City Hall, a civic auditorium and a hotel-office complex at the vacant site at Thousand Oaks Boulevard and Conejo School Road.

The project has been mired in controversy since it was first discussed 10 years ago, and critics say the real estate dispute is symptomatic of the city’s lack of realistic planning.

“That project is going to be a financial disaster,” said Heinrich (Corky) Charles, a former Thousand Oaks planning commissioner and outspoken opponent of the “Jungleland” proposal. “If you were a business person, would you build something and then get an endowment to pay for it?” asked Charles, who led a failed effort to place the issue on a local ballot.

Elois Zeanah, president of the League of Conejo Homeowners Assns. who has questioned the project’s effect on traffic, agreed.

“It’s wrong for the city to spend so much money ramrodding it through and to make it a fait accompli without knowing how much it would finally cost,” said Zeanah, an unsuccessful candidate in the special City Council election Tuesday.

But Thousand Oaks City Atty. Mark G. Sellers and City Manager Grant Brimhall insisted this week that the disagreement is nothing more than a loose thread in an ambitious undertaking well on its way to finally being built.

“It’s not at all unusual,” Brimhall said. “It happens in almost every public project where there is a necessity to acquire property. Sometimes these proceedings take years and years to conclude, and public interest and necessity demands that you proceed with the project and ultimately pay the value determined by the courts.”

The city has already paid $12.75 million to take possession of the property, which it condemned in 1987. But former owner Assadollah Morovati claims he is entitled to $26 million, representing both the land and its potential value had he been allowed to develop it, said his attorney, Richard L. Franck of Los Angeles.

Morovati’s legal claim against the city charges that Thousand Oaks officials stonewalled his attempts to build a shopping center and offices on the site, Franck said. He said Morovati spent about $2 million and six years on engineering, architectural and environmental studies in an effort to comply with city demands--only to have his proposal turned down and his property condemned.

“As far as we’re concerned, the city procrastinated and wouldn’t approve anything to speak of and kept calling for additional studies and this, that and the other thing. Then they finally decided they wanted it themselves so they condemned it,” said Franck. “So we’re contending the city engaged in unreasonable pre-condemnation conduct causing us a substantial amount of damages.”

Negotiations between Morovati and the city broke down in August after the city offered $14 million for the land and Morovati demanded no less than $19 million, Franck and Sellers said.

Since then, the City Council has approved a required environmental impact report and hired architects for the government center and civic auditorium. Sellers said the city is in the process of negotiating a contract with the architects and a joint-venture agreement with Lowe Development.

The agreement between Thousand Oaks and Lowe would include terms of the city’s lease of the site to the private developer and divide the cost of a parking deck and landscaping, Sellers and Brimhall said.

The city plans to pay for the civic auditorium and government center, estimated to cost $14 million and $12 million, respectively, with bonds issued by its redevelopment agency and revenue from the sale of two former city halls, the officials said.

Asked how the city will cover any additional cost for the land, Brimhall replied: “a determination would have to be made as to what funding sources are appropriate.”

Sellers said the redevelopment agency has a cash reserve from the sale of bonds. He declined to disclose the amount, arguing it might affect the litigation with Morovati.

Charles, who is a vice president of the Federal National Mortgage Assn. office in Pasadena, predicted that the unresolved dispute will help send the project into debt because of unanticipated land and interest costs.

Although the city does not levy property taxes, residents will suffer, Charles said, because municipal revenue will be used to offset the project’s debt instead of maintaining services.