Planner Reverses Self on Public’s Lost 96 Acres : Government: A county commissioner now defends the deeding of Laguna Niguel open space to a developer.

In a dramatic reversal, Orange County Planning Commissioner Thomas Moody on Tuesday defended a decision in 1985 that paved the way for construction of homes on portions of 96 acres in Laguna Niguel previously set aside for public open space.

Moody’s comments, made in an interview, are the latest twist in the controversy surrounding the disputed 96 acres, now part of the Marina Hills subdivision and the object of a criminal investigation. The Orange County district attorney’s office is investigating the actions of Laguna Niguel Councilman James F. Krembas, who relinquished the public’s right to the land in a 1988 deed to Taylor Woodrow Homes California Ltd. Both Krembas and the company have denied any impropriety.

Since the investigation became public 3 1/2 weeks ago, Moody has repeatedly criticized county planners for failing to point out that the Taylor Woodrow plan called for construction of homes on land formally dedicated by a previous developer as open space.

Moody said he changed his opinion after reviewing both plans over the weekend. The Taylor Woodrow plan provides parks and other open space in exchange for the 96-acre swath bordering the Salt Creek Corridor Regional Park, Moody said.

“Everybody in Laguna Niguel comes out better,” he said. “The benefits were clearly on the side of the county in Laguna Niguel.”

But environmental activists and angry Laguna Niguel residents who packed the City Council chambers Tuesday night remained adamant in their criticism of the development. Carrying signs that read “Krembas resign” and “Make Taylor Woodrow pay,” about two dozen protesters taunted Taylor Woodrow Homes executives as they entered the chambers.

“Taylor Woodrow, give our land back,” they chanted.

However, homeowner George Souleles defended the company and chastised Councilman Paul M. Christiansen for going door to door in Marina Hills to tell residents that their ownership might be in question. Christiansen has said he took the step to quell concerns among the residents.

“I don’t think it’s appropriate that a council member go around telling the neighborhood that their builder is lying,” Souleles said.

In a closed-door session late Tuesday, council members reviewed a request from Taylor Woodrow Homes that they reconsider their decision to impose a building moratorium on undeveloped portions of the disputed land and launch a legal battle to void the deed. In an interview before the meeting, Laguna Niguel Mayor Patricia C. Bates said she did not expect the council to rescind its moratorium until after the criminal inquiry is complete.

In a sharply worded letter 10 days ago, an attorney for Taylor Woodrow had requested a rehearing, warning that the city would be liable for losses to the company because of the delay.

Taylor Woodrow representatives have insisted that they followed all appropriate steps--and had received all necessary county approvals--before breaking ground for the Marina Hills community.

Company officials also have maintained that Krembas was simply carrying out the wishes of county planners as well as local officials when he signed the deed to Taylor Woodrow in February, 1988, giving up the public’s stake in the 96 acres. Krembas signed the deed while serving as vice president of the local Community Services District, which administered public land before Laguna Niguel became a city in December, 1989. Before Krembas’ action, the county had deeded its rights to the land to the district board.

Taylor Woodrow has denied any relation between the councilman’s action and its employment of Krembas’ wife three month’s later and insists that all involved will be vindicated by the district attorney’s investigation into the land transfer.

Krembas, who was absent Tuesday because of a death in the family, has also denied impropriety. He has said he signed the deed under the mistaken belief it involved another, smaller land transfer and that he was unaware he was relinquishing the public’s right to the 96 acres of open space.

All four of the other members of the district board, two of whom are now council members, have said that they did not authorize the transfer and, in fact, knew nothing about it.

At the council meeting Tuesday, environmental activists raised new questions about the county’s approval process for the Marina Hills subdivision.

The construction of homes on the disputed 96 acres violated a detailed and comprehensive development plan for the area, approved by the Board of Supervisors in November, 1980, environmental activists charged. The Salt Creek Corridor Specific Plan shows that the area in dispute was part of an open-space corridor.