City to Trade Offices for Developer’s Rec Centers

A surprise offer from the Mission Viejo Co. was enthusiastically accepted by the City Council on Monday night, giving the city four recreation centers worth about $11 million--in exchange for a $3-million office building.

“It’s a steal. It’s the deal of a century,” Councilman Robert D. Breton said.

The four recreation centers include the aquatic complex of the internationally famous Mission Viejo Nadadores swim club. But the council Monday showed no interest in subsidizing the Nadadores when the Mission Viejo Co.’s sponsorship ends.

Mayor Robert A. Curtis said that under the terms of the swap, the aquatic complex would transfer to the city in 1993. At that time, the city could liquidate the property if the Nadadores aren’t able to become financially self-sufficient, he said.

The council also pledged that the city will make all of the recreation facilities more affordable, no longer requiring people to pay for memberships. The mayor suggested a pay-as-you-go system.

The council instructed the city staff Monday to make arrangements for the city to gradually take over the operation and the deeds of the four properties in stages by 1993.

In exchange, the city will deed to the Mission Viejo Co. a two-acre property on Chrisanta Drive that includes a two-story building. The property, which the city bought a year and a half ago for $3.1 million, actually is the former headquarters of the Mission Viejo Co.

City Manager Fred Sorsabal said he expects that the Mission Viejo Co., which is getting out of the home-building business, will sell the building along with another 10 acres that is now its headquarters, as the company winds up its development in Orange County.

The council’s enthusiasm about the deal was shared by all but one of the council members, William S. Craycraft. He voted against the offer because he said the city should have explored whether it had a less valuable property to offer than the $3-million building.

Although Mission Viejo Co. representatives were present in the audience Monday night, they did not address the council.

A public hearing earlier Monday was attended by the Nadadores and their parents, wearing the team’s yellow and blue T-shirts. Rod Rojas, president of the Nadadores Booster Club, acknowledged that he was “a bit frightened” by the prospect of the team having to go it alone.

The Mission Viejo Co., the team’s sponsor since 1968, has said it will not support the team after the 1992 Olympics in Barcelona, Spain.

Rojas, however, said he believes the team will survive if it has an opportunity to solicit expanded support from corporate sponsors.

“Give us the chance to show our stuff,” he said to applause.

The Nadadores have won 13 Olympic gold medals and set about 40 U.S. and world records.

While city officials acknowledged the fame that team members such as Greg Louganis and Shirley Babashoff have brought to Mission Viejo, some questioned whether city funds should be used to support only a small fraction of the city’s residents.

Curtis, like his colleagues, praised the Nadadores for enhancing the city’s image.

“I believe the Nadadores should be given a reasonable opportunity to become self-supporting,” he said.

City officials said the team could use the aquatic center “as long as they can pay for the operation and maintenance.” A consultant’s study shows that city operation of the center would create a $477,000 annual deficit for taxpayers, while the remaining recreation facilities could be operated by the city at far less expense.

Last spring, Mission Viejo hired Economic Research Associates of Los Angeles to research the city’s options, which were presented at Monday’s meeting. One would have the city buy and operate all of the recreation centers, including the swimming pool complexes as well as a tennis and fitness facility. Another alternative, the consultant said, would be for the city to buy the facilities and then sublease them to commercial and nonprofit operators.