Decade of Bitterness Led Up to March : Development: Laguna Beach residents and local officials have waged an indefatigable battle to protect the village-like atmosphere of the city.

A march that drew thousands from across Southern California on Saturday to protest development in Laguna Canyon is the culmination of a bitter, decade-long dispute between environmentalists and developers.

Over the years, Laguna Beach residents and local officials have waged an indefatigable battle to protect the village-like atmosphere of the city from the rapid development that has swept much of Orange County. Crucial to this effort is the maintenance of a large expanse of undeveloped land that surrounds the city, environmentalists have maintained.

To that end, Laguna Beach has opposed any development in Laguna Canyon, a collection of rolling hills and rugged canyons that shield the city from the rest of the county. The two major development projects planned for that area are the San Joaquin Hills Transportation Corridor and Laguna Laurel, a planned residential community.

On Saturday, protesters focused their attention on Laguna Laurel, which would be in an unincorporated area of Orange County. The project would be east of Leisure World and north of Laguna Beach.

These are the significant dates in the fight to preserve Laguna Canyon:

* 1979--The Irvine Co. submits plans for Laguna Laurel, a 3,200-home project to be developed on 2,150 acres at the mouth of Laguna Canyon. The project includes a shopping center, a school, an 18-hole golf course and recreational and park areas. Plans also call for widening Laguna Canyon Road and donating a three-lake system to the county for a regional park. Opponents criticize the project, saying it would create flooding and 36,000 more car trips per day.

* 1980--In an effort to block development in the canyon, environmentalists lobby for a bill that will convert the Laguna Canyon area into a national park. Democratic U.S. Sen. Alan Cranston introduces the legislation, but the measure is defeated by Congress.

* 1984--The County Board of Supervisors gives preliminary approval to the plans for Laguna Laurel. However, final approval is contingent upon a series of public hearings and the completion of an environmental impact report.

* 1986--The Board of Supervisors grants the Irvine Co. permission to move the housing units farther north toward the San Diego Freeway, in response to community concerns that the project is too close to Laguna Beach. The project now includes 1,100 acres dedicated to open space.

* 1986--Laguna Greenbelt Inc., a conservation group dedicated to preserving the canyon, sues the county over the board’s tentative approval of Laguna Laurel. Greenbelt organizers charge that county supervisors acted improperly when they ignored residents’ pleas to reject the plan. The lawsuit is still pending.

* September, 1989--Dozens of protesters picket Irvine Co. Chairman Donald Bren’s Newport Beach home to voice their objections to the project. They charge that despite a series of meetings and hearings on the issue, the company has not taken public opposition seriously.

* October, 1989--Bren offers to sell about 270 acres to the city of Laguna Beach for $38 million. The land in question is the site of the proposed golf course, which residents had complained would create drainage problems and pollution from pesticide use. As part of the offer, the city must accept the rest of the project and support the San Joaquin Hills Transportation Corridor.

* November, 1989--Laguna Beach city officials reject Bren’s offer and agree to proceed with the Saturday protest. City officials have presented a counterproposal, which they have declined to discuss.