D.A. Probes Transfer of Future Parkland to Builder

The Orange County district attorney is investigating a controversial 1988 transaction that passed 99 acres dedicated for parks in Laguna Niguel to a developer for construction of nearly 200 homes, about half of which have already been built.

Members of the Laguna Niguel City Council, representatives of the developer--Taylor Woodrow Homes California Ltd.--and top county officials all confirmed in interviews Thursday that they have been questioned by investigators from the district attorney’s office.

“We’re in an active investigation with the district attorney’s office,” said John Sibley, deputy director of the county’s Environmental Management Agency. “The D.A. has been meeting with us and studying our files.”

At issue is a transfer of 99 acres of land in Laguna Niguel near the Salt Creek Corridor Regional Park. Property records show that on Feb. 12, 1988, Councilman James F. Krembas, then the vice president of Laguna Niguel’s Community Services District, signed over the public’s interest in the property to Taylor Woodrow through a process known as “quit claiming.” The land is now part of the Marina Hills development.

Krembas’ wife, Jeanette, was hired by Taylor Woodrow a few months later and still works for the company. Neither James nor Jeanette Krembas could be reached for comment Thursday.

In an interview Thursday, Gordon Tippell, president of Taylor Woodrow, acknowledged that the details of the property transaction raised some questions and said officials from his company had been contacted by the district attorney’s office. But he said Jeanette Krembas had nothing to do with the sale of any homes on the 99 acres and in fact handled only resales.

Tippell, who said his company dedicated other open-space areas in exchange for the 99 acres, blamed the questions about the transfer on administrative errors by the local officials.

“Maybe this shouldn’t have happened,” he said. “I have no idea. Maybe it was just a bureaucratic snafu.”

James S. Mocalis, who served as general manager of the community services district and who was contacted Wednesday by district attorney’s investigators, said he too believes that the County Board of Supervisors authorized the transfer of the 99 acres.

On Thursday, Times reporters sought to review records of the property’s zoning and planning history, but they could not be located. County officials said the records had been sent to Laguna Niguel upon its incorporation, but city record keepers said the file was missing.

The land in question had been dedicated to the county in 1985, when another developer offered it as open space. When the community services district was formed in 1987, its members received the right to administer the property, but the supervisors controlled its zoning until Laguna Niguel incorporated this year.

On Feb. 10, 1988, two days before the property transfer was signed, county supervisors voted 3-2 to approve a development agreement with Taylor Woodrow governing its projects in the community. (The agreement was supported by Supervisors Thomas F. Riley, Don R. Roth and Harriett M. Wieder.) According to Tippell, that agreement provided for development of the 99 acres, and in return the company dedicated other areas for use as public parks and recreational facilities.

But Eric Jessen, the county’s chief of planning and acquisition for harbors, beaches and parks, said that county officials were unaware that the agreement called for development of homes on land previously designated for parks. Jessen added that the county could not legally have approved of such a development without a special public hearing, which he said did not occur.

“The proper procedures for disposing of parkland were not followed, and it’s totally mystifying to us how the community services district could have disposed of this land,” he said.

Members of Jessen’s staff discovered the mistake several months ago, he said, and began their own investigation. “We were very surprised and mystified and, to be quite honest, horrified,” he said.

Laguna Niguel officials were informed of the issue in April and several expressed concern Thursday.

“The record is very clear and very straightforward that this was not authorized” by the services district, said Mayor Patricia C. Bates. She was president of the district in February, 1988, but said she was out of state on a ski trip and that Krembas, who served as vice president, signed the property transfer.

Before Laguna Niguel became a city, parklands were administered by the community services district, which was composed of five members including Bates and Krembas. In interviews, all but Krembas said they did not know of the transaction until questions arose about it earlier this year.

Several members said they were stunned to learn of the transaction and would not have approved it under any circumstances.

“I had absolutely no knowledge of it until I was contacted by the D.A. two weeks ago,” said Nancy Lewis, a former community services district member who now lives in Westford, Mass. “Certainly I wouldn’t have supported it. . . . I would have strongly opposed it. I would have never, never, ever voted for something like that.”

Lewis, who served as the district board’s liaison to a citizens’ advisory group on parklands, said that group had never been advised of proposed development on the 99 acres.

Other district representatives were equally shocked.

“It took an enormous effort by the county to carve out some 100 acres for the permanent public use and my way of thinking is that if you were to break off a piece, it would be like giving away a part of Yosemite,” said Councilman Paul M. Christiansen, who served on the district.

County officials, many of whom said they learned of the district attorney’s investigation only during the past few days, said they are cooperating with the inquiry.

Several declined to speculate on the matter until they had had a chance to review the relevant documents.

“Nobody’s going to shoot from the hip on this,” said County Administrative Officer Ernie Schneider. “It’s going to take us a little while to get to the bottom of it.”

Staff Writer David Willman contributed to this report.

KEY DATES IN LAGUNA NIGUEL LAND TRANSFER Jan. 7, 1985--AVCO-Bredero Niguel, then the major developer of Laguna Niguel, sets aside three parcels of open space to be used by Orange County as parkland. Aug. 11, 1987--County passes the land rights to the Laguna Niguel Community Services District, which administered park areas before the community became a city. Feb. 10, 1988--County supervisors approve a development agreement with Taylor Woodrow Homes California Ltd. The agreement, according to Taylor Woodrow’s president, gave the company the right to develop the previously designated open space in return for dedicating new parks. Feb. 12, 1988--James Krembas, vice president of the community services district, “quit claims” 99 acres of land offered as open space to Taylor Woodrow. Other members of the CSD now say they were not informed and would have opposed the move had they known. May, 1990--District attorney investigators begin questioning members of the Laguna Niguel City Council and representatives of Taylor Woodrow.