LOCAL ELECTIONS / DANA POINT CITY COUNCIL : Beach Activist Takes Lead in Voting

A political newcomer who campaigned on a promise to revitalize an aging section of Capistrano Beach took the lead Tuesday night among seven City Council candidates, preparing to unseat at least one of three incumbents.

Karen Lloreda, a 43-year-old homemaker and president of the Capistrano Beach Community Assn., appeared headed for victory in this beach city’s first council election since it was incorporated 17 months ago.

She was closely followed by Mayor Eileen Krause and Councilman Mike Eggers. Incumbent Ingrid McGuire was in fourth place, according to early returns.

Tuesday’s election marked the first time that Dana Point City Council members faced opposition at the polls since this South County city of 29,000 residents was incorporated in January, 1989. Three of the five council seats were open.

During the campaign, it became apparent that Eggers and Krause were running on a slate with Lloreda, the only candidate to hail from that section of the 6.2-square-mile city.

The candidates repeatedly denied running an official slate.

The three, however, received endorsements from the Coastal Taxpayers, the South Orange County Chamber of Commerce Political Action Committee, the San Clemente Sun-Post and the Friends of Capistrano Beach, the organization that fought to include that neighborhood in Dana Point’s cityhood effort.

The major issue in the campaign was whether Dana Point should evolve into a major Southern California tourist resort. Eggers, calling himself a “destination-point booster,” argued that an upscale tourism industry will help the city financially by providing tax revenue.

Others, including incumbent McGuire, called for a virtual freeze of tourism, saying that boosting tourism in the only South County city with a recreational harbor would kill its village-like flavor.

Lloreda and challengers Harold Kaufman, Thomas B. Moy and William L. Petersen agreed that another major issue in the campaign was bolstering small business.