LAGUNA BEACH : Value of Land Parcel Set at $105 Million

The pristine, 2,150-acre parcel of land in Laguna Canyon earmarked for development by the Irvine Co. has been valued at $105 million, a spokesman for officials involved in purchase negotiations revealed Monday evening.

But negotiators declined to release the terms of the Irvine Co.’s latest sales offer or say whether it is significantly below the fair market value.

“There has been significant movement on both sides,” said spokesman Paul Freeman, who was hired by those involved in the negotiations to help forge a compromise.

In addition to agreeing on a purchase price, Freeman said negotiators are also looking for sources of funds that could be applied toward the land acquisition.

Options include seeking state funds set aside for acquiring open space and getting legislative approval for a new state tax on real estate transactions, Freeman said.

The appraisal figure is based on what the land would be worth if it were to be developed, Freeman said after Monday evening’s negotiating session.

“The company has said all along that their intention was to sell the property at fair market value. Our concern, as is the concern of anybody who is trying to buy something, whether it’s a piece of property or a car or a house, is ‘What can I afford?’ ” Freeman said.

In addition to the $105-million appraisal figure, Freeman said, the Irvine Co. has added another $30.2-million value to the property--money it would be required to spend on such things as flood control and improvements to Laguna Canyon Road in fulfilling its development agreement with Orange County.

“We are not negotiating to assume any of those development agreement obligations,” he said of the position taken by Laguna Beach city officials and environmentalists who are trying to block development of the scenic canyon.

The Laguna Laurel Advisory Group, comprising negotiators for all sides, is attempting to reach agreement soon in order to present a plan to voters before the Nov. 6 election. Laguna Beach voters are being asked to approve a $20-million bond issue that would go toward purchase of the land.

The City Council has scheduled a closed-door session this evening to discuss the latest offer.

The county has agreed in principle to contribute $10 million, and the city is planning to tap $5 million from an already existing state park land fund.

The developer had previously offered to let the city purchase the property over a 10-year period and also donate the final $10 million installment. The company spokesman would not say whether that offer was still on the negotiating table