LAGUNA NIGUEL SAN JUAN CAPISTRANO : Cities Debate Plan for Vacant Parcel

An annexation dispute is brewing between two cities over an undeveloped 22-acre parcel near Interstate 5.

The land, once the site of horse stables, is wedged between San Juan Capistrano and Laguna Niguel in county territory.

Although the property is in San Juan Capistrano’s sphere of influence, landowner Alex Michaels has applied for annexation to Laguna Niguel, saying the only access to his land is from that city.

Michaels plans to transform the vacant parcel into a 199,500-square-foot commercial complex, including a Home Depot. This would have obvious tax benefits for Laguna Niguel, which has welcomed the application despite San Juan Capistrano’s objections.

San Juan Capistrano officials say the land is important partly because it represents a “visual entry” to their city. In the past they have rejected similarly intense development plans for the parcel and will oppose the annexation bid.

“Our position is it’s within our sphere of influence and we anticipate any annexation to be to the city of San Juan Capistrano, not to the city of Laguna Niguel,” Planning Director Tom Tomlinson said.

Laguna Niguel officials, however, are taking steps that will eventually lead to a hearing before the Local Agency Formation Commission, which governs annexations. Environmental reports required by the commission before annexation are expected to be released by Laguna Niguel next week.

Laguna Niguel officials say they don’t know how much tax money would be generated by the development. However, if Laguna Niguel is allowed to claim the land, it could recover some of the tax dollars lost when the exclusive Monarch Beach community was allowed to incorporate with Dana Point instead of Laguna Niguel.

Dan Possnack, a co-owner of the property, said the landowners took this into consideration and finally decided that Laguna Niguel is “probably in a little more need for additional revenue producing property” than San Juan Capistrano.

“In terms of need, Laguna Niguel is a young community, it’s a growing city,” he said. “We considered economics, and we had to make a moral judgment as to which city would benefit the most.’

Current zoning calls for the land to be maintained as open space or for recreation purposes. If that designation is changed, San Juan Capistrano’s Tomlinson said, it should still only allow “low intensity land-use,” compatible with the residential community which is on one side of the property and a religious retreat which is on the other.

The retreat owner, Crystal Cathedral Ministries, and Friends of Historic San Juan Capistrano have also joined the controversy. Mark Clancey, president of the historic organization, said San Juan Capistrano should oppose the annexation and should make sure the property maintains its rural ambience.

Crystal Cathedral Ministries, which last month won county approval to develop a 300-unit retirement community and a skilled nursing facility on the retreat property, said the commercial center would be unsuitable at that location.

But Possnack said the landowners believe that the two developments can exist harmoniously.

“If you scale it down, it starts to become marginal as to whether it’s worthwhile (economically),” he said. “We’re doing everything we can to buffer their use from our use and to be a good neighbor.”