Residents Weigh Worth of Laguna Canyon : Debate: As campaign begins for city bond issue to help buy Irvine Co. land, some wonder if the money could be better spent in town.

Whether Laguna Beach should save scenic Laguna Canyon from development or spend its money on basic city services was debated Saturday as the campaign began for the city’s $20-million bond issue to help purchase a portion of canyon land.

Residents on both sides of the issue during the first formal debate of the campaign were at a disadvantage, however, since it is still unclear how much it is going to cost the city to buy the 2,150-acre site from the Irvine Co., which has proposed building 3,200 homes on the virgin countryside.

But even though bond proponents are not sure they can persuade the company to sell the property at below market value, they are proceeding with the campaign to get the required two-thirds majority vote in favor of the bonds in the Nov. 6 election.

The “Campaign to Save the Canyon” officially opened its headquarters Saturday, and tickets are being sold for a major fund-raiser scheduled for Oct. 8.

Campaign contributions totaling between $10,000 and $15,000 have been made by the Irvine Co., making it one of the top two biggest single donors. The Hotel Laguna, which is underwriting the Oct. 8 event, is the other major contributor.

During the 90-minute debate sponsored by the Laguna Beach Republicans, former Mayor Jon Brand tugged at the heartstrings of citizens who have indicated in previous public opinion polls that they favor stopping the development.

“We now have the chance to create something greater than ourselves,” Brand argued. “Just think of the aesthetics of that lake, of those hills, something for us, something for the people of Orange (County).”

He also told the gathering of about 40 people that the development would not only worsen traffic congestion, but might also take business away from the small “mom and pop” downtown shops as customers are lured to a new commercial district in the canyon area.

But Jack Hefti, a member of the Laguna Beach Taxpayers Assn., pointed to decaying streets, particularly in South Laguna, expensive repairs needed to shore up the seawall at Heisler Park, and the need for traffic signals and sewer improvements.

He said the canyon land is six miles from downtown Laguna Beach, where there is a greater need for the money.

Hefti, joined by the taxpayer association’s executive vice president, Art Casebeer, also questioned the city’s need to buy the land because the Irvine Co.’s development plan includes a golf course and open space totaling 1,500 acres.

Casebeer also doubted the city’s ability to meet the proposed purchase prices that have been disclosed, and called the plan to buy the land “blue-sky dreaming.”

In the latest proposals exchanged by both sides, the developer offered to sell the land--independently appraised at $105 million--for $82 million over a five-year period, and the city countered with an informal sales price of $75 million.

City officials rejected the company’s proposal because it includes interest costs not mentioned in previous offers, making the real cost much higher than the base price. And the developer rejected the city’s $75-million plan because city officials asked for land overlooking the coast and north of the Laguna Beach that is owned by the Irvine Co. but not part of the proposed Laguna Laurel development.

Campaign manager Paul Freeman, who has been by both sides as the go-between in the negotiations, told the audience he was frustrated that an agreement has not yet been reached.

Freeman said that if the bonds are approved, the tax increase for a home with an assessed value of $300,000 would average $88.62 a year over a 20-year period.