NORTH TUSTIN : Cityhood Request Is Turned Down

The Local Agency Formation Commission on Wednesday formally rejected plans for a new city of North Tustin, a nine-square-mile area between Tustin and Orange.

With no discussion and a 4-0 vote, with Commissioner Gaddi H. Vasquez absent, the commission denied the incorporation request and a competing request for three annexations to the city of Tustin. LAFCO had indicated its plans to deny the incorporation request last month after a lengthy public hearing.

Cityhood proponents have 30 days to request the commission to reconsider the issue. Stephen Johnson, an attorney and a cityhood supporter, said he and others plan to file a lawsuit challenging the decision.

Commissioners said at their January meeting that they did not think the area would be financially viable as a city because it would depend on a new utility tax of up to 11%. The tax would have been necessary for economic survival because the upscale area, which includes Cowan Heights and Lemon Heights, has only one business that produces sales tax revenue.

The commission’s vote means the proposal will not be placed on a ballot for voters in the incorporation area. If the commission had voted in favor, it would have been the first time in the state that voters were asked to approve a city contingent on a new tax, according to LAFCO Director James Colangelo.