LAGUNA BEACH : Planners Endorse Rural Development

Setting the stage for an emotional City Council hearing later this month, the Planning Commission has recommended approval of a court-ordered development plan for the rural Diamond-Crestview neighborhood.

The unanimous decision came after a five-hour hearing Wednesday night, which was attended by landowners for and against the development.

The future of the hillside community has sparked passions here, where dozens of hearings have already been held on the subject. Neighborhood residents say their backcountry lifestyle would be ruined by the proposed specific plan, which would triple the number of homes in the neighborhood.

Court rulings, however, have sided with the owners of the vacant parcels. Ruling on a lawsuit filed by the owners--who wish to develop the land--an appellate judge said about three years ago that the city had to either assume responsibility for bringing the area’s mostly unpaved roads up to standard or purchase the undeveloped lots.

The new roads would pave the way for further development in the neighborhood, where there are now only about 56 homes. The new specific plan would allow about 100 more to be built.

However, after studying the environmental documents, which the commission also endorsed Wednesday night, planning commissioners decided the city should not allow the area to be built out according to the detailed plan.

In essence, the commission endorsed the plan as mandated by the courts while appealing to the council to find ways to preserve at least part of the land as open space.

“We made a decision that the cumulative effects were significant and beyond mitigation,” Commissioner Jeff Powers said. “We need to think about buying these parcels--that’s the only way out.”

Powers said the city could come up with creative ways to finance such a project without tapping into the general fund or raising taxes. Allowing some development on the land while buying other parcels is one option the council will grapple with during a special meeting scheduled for July 14. A staff report should be available by Tuesday.

In creating the specific plan, City Manager Kenneth C. Frank said the goal has been to maintain the rural ambience of the area.

For example, the plan allows for some roads to only be 12 feet wide and does not include curbs or gutters for the neighborhood.

“I think we’re doing a good job on the plan, trying to address the issues in a rational manner,” Frank said. “And I think the courts will be pleased with that.”

However, Frank said, there is little chance that any of the property owners will be pleased with the outcome.

“The vacant lot owners won’t be happy and the people who live there won’t be happy,” he said. “That’s the only thing I can guarantee: that nobody’s going to be happy.”