Renewal for Downtown Brea Is Debated Anew : Controversy: Rebuilding the historic area would be a loss, historian says, but it might be worth it.

Outdoor cafes, upscale townhouses and European-style eateries may soon replace some of Brea’s oldest buildings under a controversial plan debated by the City Council Tuesday night.

The plan to rebuild the historic downtown area would cost more than $30 million in redevelopment funds. But proponents hope that it would bring life to an aging area which has lost its commercial prowess to outlying strip centers and the Brea Mall.

Brian Saul, a member of the city’s historical committee, told the council: “As someone interested in the history of Brea, it’s hard to see the old buildings coming down. But I know how important it is for it (redevelopment) to succeed.” Still, he said, “the last thing we want is another La Habra Fashion Square.”

But Bill Murray, president of the Chamber of Commerce, said his group “believes the agreement before you is in the best interest of the chamber and the community.”

The project, the subject of battles for several years between the council and displaced business owners, involves 50 acres at the intersection of two of Brea’s major arteries, Imperial Highway and Brea Boulevard.

Some of the key points agreed upon include:

* A 22-acre neighborhood shopping center bounded by Imperial Highway, Brea Boulevard, Birch Street and the Brea Canyon flood control channel. It would include more than 200,000 square feet of retail and office space, several restaurants, a food court and speciality stores.

* A 146-unit townhouse project bounded by Walnut Avenue, the Southern Pacific Railroad tracks, the flood control channel and a realigned Birch Street.

* An entertainment-oriented Town Square to be built on Birch Street that would have fountains, public art displays, a theater, cafes and town homes. To enhance the city’s Art-in-Public-Places project, residential units for artists to live and work are included in this portion of the project.

City officials estimate that the development will eventually generate $24.5 million in revenue for the city.

A final decision would mark the end of a long road for the controversial project. Despite some protest, the city has already purchased the land, along with about 40 businesses and 150 homes, which have been boarded up or demolished.

Frank Cotta, owner of a model train shop in Brea for the last 14 years, told the council Tuesday: “I probably couldn’t afford being in those new shops. I need to stay in the older part of town.”

The plan also sparked an unsuccessful attempt by business owners to recall three members of the current council. And in December, redevelopment was at issue again when the Orange County district attorney’s office opened an investigation into whether Councilman Ron Isles violated conflict-of-interest laws when he voted to help his business partner gain property in the city’s redevelopment area. Isles adamantly denies any wrongdoing.

More recently, the fate of Watt Commercial Development Co., which won the building contract, and its ability to finance the project have come under scrutiny. Since securing the Brea deal, the company has bowed out of at least one other large-scale project, raising some concern.