LAKE FOREST : City Studies Annex of Foothill Ranch

Slowly, cautiously, the city is looking into annexing the massive, potentially lucrative Foothill Ranch housing development.

With the planned 3,900-unit development incomplete and an economic recession still gripping the state, city officials say they are easing their way into the complicated annexation process.

While Lake Forest hasn’t filed official annexation papers yet, the city recently completed a preliminary study and made initial contact with the county, which runs the unincorporated community.

“We have agreed (among the council) to move very slowly with the annexation because of recessionary times,” said Councilwoman Ann Van Haun. “There is a lot of work that has to be in place before we can start” filing annexation papers.

Foothill Ranch is on the north city border. Currently about 1,611 houses have been completed and build-out is anticipated in 1997.

The 2,743-acre development could provide a significant sales tax windfall for the city. The project’s centerpiece is a 113-acre retail “power center” that will showcase 1.2 million acres of building space.

Tenants already signed for the Foothill Ranch Towne Centre include Walmart, which will move into a 125,000-square-foot structure, and Homebase, a discount store that plans to occupy a 130,000-square-foot building. The center will also have a 24-screen movie complex.

The shopping and entertainment complex would be the second largest in the county after South Coast Plaza.

The revenue potential of Foothill Ranch will probably be matched by the task of persuading the county to allow the annexation.

County officials reiterated on Monday that their annexation policies are unchanged.