MISSION VIEJO : Laguna Hills to Be Sued Over Parcel

The legal struggle for control over 49 acres of choice commercial real estate escalated this week as the Mission Viejo City Council voted in closed session to sue Laguna Hills.

The lawsuit would be aimed at clearing up confusion over which city has approval rights for development of the commercial parcel, all but about 150 feet of it in Mission Viejo, alongside Interstate 5 at Pacific Park Drive. Mission Viejo officials said the suit will be filed today.

Mission Viejo favors building an auto mall on the property, which would yield more than $1 million per year in sales tax revenue. Laguna Hills officials are concerned about the project’s impact on neighboring homes in their city and say they are looking for a voice in development of the site.

“I’m disappointed that two communities can’t agree on a solution,” said Laguna Hills Mayor Melody Carruth. But, she added, “we won’t be intimidated. That’s not going to work in Laguna Hills.”

Carruth also questioned the validity of the closed-session vote. No announcement of the decision to litigate was made by the council after members returned from behind closed doors.

“That decision should have been made in open session,” Carruth said.

It’s the second time in two weeks that legal action has been threatened against Laguna Hills. Last week, the landowner, the Mission Viejo Co., said it intended to sue Laguna Hills for attempting to block development of the property.

The controversy focuses on a small portion of the parcel that is in Laguna Hills. That area is an easement of about 150 feet that is the sole access point to the proposed development site, which is hemmed in on all sides by railroad tracks and the freeway. To gain access to any commercial development on the property, a bridge would have to be built on the easement, over the railroad tracks.

Laguna Hills officials say they haven’t been consulted on any commercial project that would be built on the property. But Mission Viejo leaders have pointed out that nothing has officially been proposed to be built on the site.

Last fall, Mission Viejo poured concrete in the disputed area. And now Mission Viejo officials say Laguna Hills has threatened to tear out any improvements.

Laguna Hills City Manager Bruce Channing said the curbing was laid improperly and presented a danger to traffic on Cabot Road. Mission Viejo has since put in large cement barriers over the curbs, which Channing said is an improvement but still not sufficient.

It is those threats that pushed Mission Viejo into taking legal steps against Laguna Hills, said Mission Viejo Councilwoman Susan Withrow.

“The city of Laguna Hills has backed us against the wall,” she said. “I don’t think it’s Mission Viejo that is dying to litigate here. We’re just trying to protect the interests of the city.”

But one member of the Mission Viejo council thinks the city should continue a dialogue with Laguna Hills before taking the disagreement into court.

“I made a strong plea for negotiations and avoiding at all costs any litigation,” said Councilman William S. Craycraft. “Unfortunately, it appears when (the) city of Mission Viejo . . . can’t get its way with its neighbors, (it) immediately sends out threats of lawsuits. We’re rapidly getting the reputation of a city that won’t negotiate.”