Dana Point Council Takes the Offensive Against Urban Blight

The City Council voted unanimously Tuesday to establish a local redevelopment agency, giving the city sweeping powers to turn blighted areas in this affluent community into urban renewal projects.

“This is a first step on a long road,” said John W. Donlevy Jr., the assistant city manager. “There will be a number of public hearings and discussions going out to the residents of Dana Point.”

The City Council itself will act as the redevelopment agency. Such agencies are established by cities to stimulate new commercial and industrial growth in blighted urban areas and provide a source of revenue to municipal budgets. Typical projects range from hotels and shopping centers to road-widening and construction of public buildings.

But agencies often encourage commercial growth in cities by buying property from landowners and reselling it to large developers. The added sales tax dollars derived from commercial growth are collected by the city.

Critics of redevelopment contend that cities sometimes abuse the power of eminent domain.

Under state law, a redevelopment agency can force property owners under its jurisdiction to sell their land for a fair market value if the owner is unwilling to sell.

Dana Point council members acknowledge that a public relations campaign to ease the fears of the community is necessary.

“I know that eminent domain can be a real bogey man,” said Councilwoman Ingrid McGuire. “So we are going to do this at a slow and methodical pace.”

The council sees redevelopment as a financial boon to city coffers and an opportunity to create new growth.

Although a portion of the council favors designating the entire city as a redevelopment area as a contingency measure, “you can make the area smaller, but you can’t make it larger,” Mayor Eileen Krause said.

A 300-acre section of town known as “Capistrano Bowl” has been mentioned as a prime candidate for redevelopment. Located along Doheny Park Road, the area is currently a mixed bag of liquor stores, coin-operated laundries and heavy-equipment storage yards.

Reaction from shop owners along the street has been mixed, with some expressing apprehension over being forced to move and others agreeing that the commercial district could use renovation.

Among the improvements being considered by the council is a major shopping mall. None exists in Dana Point.