LAGUNA BEACH : City, Casino Owner Agree on Hill Parcel

A complex legal battle between the city of Laguna Beach and Las Vegas casino owner Jack B. Binion was resolved Tuesday with an agreement that allows the city one year to purchase 30 pristine acres along a South Laguna hillside.

If the city does not buy the property, the landowners--Binion and a partner--will be permitted to build two 5,000-square-foot houses on two one-acre parcels. The remaining land would be dedicated to the city as open space.

Development on the property has been stalled by the city’s strict hillside zoning regulations.

For almost two years, Laguna Beach has been pummeled with lawsuits over the property. At one point, five separate suits were lodged by the landowners, City Atty. Philip Kohn said.

In essence, the suits have centered on the landowners’ contention that development should be allowed according to the less-stringent county regulations that governed the area before Laguna Beach annexed South Laguna on Dec. 31, 1987, Kohn said.

Mayor Neil G. Fitzpatrick announced the settlement after a closed session before the regular City Council meeting.

“I think we got a reasonable settlement offer,” he said. “I’m very encouraged about it.”

In all, Binion owns about 52 acres that straddle the border between Laguna Beach and Laguna Niguel. A tentative tract map for 32 homes has been submitted for the 22 acres that lie within Laguna Niguel.

Under county zoning regulations, up to 14 homes could have been built on the land located within Laguna Beach. Under city regulations, the potential for development was significantly reduced.

South Laguna residents, who fear that development uphill from their homes could cause drainage and erosion problems, have clamored for a say in the fate of the hillside.

Members of the South Laguna Civic Assn. have urged the city to buy the land and preserve it as open space, and the group has expressed fears that the city would reach a private settlement that would allow development.

Association president Randy Knapp was on hand Tuesday with a proposal that he said could allow the city to buy all of the Binion property, including the land in Laguna Niguel.

“I know we have a lot of (South Laguna residents) opposing any construction,” Knapp said after the agreement was announced. “I’m pleased at least that we get a year to work on it.”

In a related matter, the Laguna Niguel city staff recommended that the City Council give final approval Tuesday to a subdivision map that officially splits the parcel between the two cities. The controversial map was originally approved by the county in 1989.

Laguna Beach officials had unsuccessfully appealed the earlier map approval, maintaining that they should have equal say in how the hilltop property in Laguna Niguel should be developed because of the potential effect on South Laguna. Once the map is recorded, the land will become two legal building sites, Laguna Niguel senior planner Micki Harris said.

Environmental documents regarding the proposed 32-home development will be available for public review in the next couple of weeks, Harris said. Public hearings will be scheduled after the 45-day review period, she said.