Covina Given Edge in Annexation Efforts : Land dispute: Most of the area is left free from the clutches of the three cities that covet part of the land for its tax potential.

A Los Angeles County agency has resolved a long-running land dispute among three east San Gabriel Valley cities by giving one of them a slight advantage in attempts to annex unincorporated territory that promises to be a huge tax bonanza.

At a public hearing Wednesday, the Local Agency Formation Commission voted to place 52 acres of the 1,140-acre parcel in Covina’s so-called “sphere of influence.”

The action gives the city an edge in eventual annexation of the property, owned by Diamond Bar developer Gary G. Miller, who wants to build a gated community of 40 luxury homes there.

But as a compromise, the agency left most of the territory free, at least temporarily, from the clutches of Covina, Walnut and West Covina. All three cities covet at least part of the land, which stretches from Forest Lawn Memorial-Park at Covina Hills to Covina Highlands, a residential area.

If the property joins Covina, it would benefit both the city and developer Miller. For Covina, the new homes would mean an estimated $1 million in property taxes. For Miller, joining the city would mean he could build more homes. If the property remains in an unincorporated area, Miller said, the county’s stricter zoning laws would allow him to build only four homes.

Miller has close ties to Covina Mayor Chris Lancaster, and his project already has verbal support from a majority of the City Council.

But in a setback to Miller and Covina officials, LAFCO decided to leave the rest of the county territory out of any city’s sphere of influence, mainly because property owners and residents said they are happy with the status quo.

The land includes a 127-home development that lies between Miller’s property and the city of Covina.

Developer George Meeker, who is building the 127 homes, initially told Miller that he wanted his project to be in Covina, but changed his mind because “in these uncertain economic times, we don’t want to upset any potential buyer” who might prefer a Walnut or West Covina address, a Meeker representative said.

If the Meeker development remains unincorporated, the only way Covina could annex Miller’s land would be through a narrow strip, one street wide, extending from Covina south to the property. Miller tried that approach earlier this year but failed because area residents opposed it.

Support from residents and/or property owners is essential for annexation. A majority of registered voters can kill an annexation request, as can property owners who hold more than 50% of the assessed value of the land in question.

At the hearing, West Covina officials argued that it would be logical for their city to annex all of the land, which lies south of the San Bernardino Freeway.

Meanwhile, Walnut officials said they are interested in Forest Lawn, which would provide an estimated $15,000 in annual taxes from coffin sales.