Laguna Land Deal Has ‘Long Way to Go’

Faced with trying to buy scenic Laguna Canyon land they cannot afford, city officials and environmentalists are looking into the state treasury and other sources.

But state officials are dubious that enough money is available to buy the Laguna Laurel property, given stiff statewide competition for park and wildlife dollars.

The battle to save the 2,150 acres earmarked for development by the Irvine Co. has been waged in recent days behind closed doors at company headquarters, where negotiators are trying to work out a purchase accord.

An independent appraiser has said that, if developed, the tract would be worth $105 million. But the Irvine Co. has added to that another $30.2 million that would be needed to fulfill a development agreement with the county, including flood control and Laguna Canyon Road improvements.

Environmentalists--who just last year were not on speaking terms with the developer--hope to negotiate a price lower than its fair-market development value, because the land would be designated open space.

“I think all along we have pretty much said that (fair-market value) is probably not in the ballpark,” Councilman Dan Kenney said Tuesday before a council session to review the company offer.

The company has not disclosed its most recent sales price, but it had previously offered to sell the land to the city over 10 years and donate the final $10 million. A company spokesman would not say whether negotiators are still considering 10 years of payments.

After a private session Tuesday night, council members refused to disclose how they will respond to the proposal when both sides return tonight for talks. “We have a long way to go,” Mayor Lida Lenney said.

The County Board of Supervisors has tentatively agreed to contribute $10 million, and Laguna Beach residents will vote Nov. 6 whether to approve the sale of $20 million in bonds. The city is also planning to tap about $5 million in state money for park acquisition.

While the city has identified sources to meet the first few years of payment installments, negotiators may ask for new state legislation to set aside park money for Laguna Laurel and to impose a real-estate transfer tax, charged when property changes hands.

Paul Freeman, hired by both sides to help forge a compromise, said earlier this week that proposed real estate tax legislation could become law within four years.

But Assemblyman Gil Ferguson (R-Newport Beach), whose district includes Laguna Beach, said that the idea has a “one in 10 chance” of becoming a reality and that the best option for park money may be a statewide initiative.