Slide Disclosure Halts Laguna Fire Rebuilding : Disaster: City won’t approve permits until possible soil stability problems in Mystic Hills, elsewhere are studied.

Efforts to rebuild homes on a prominent hillside burned in the Oct. 27 firestorm hit a potentially major stumbling block Monday after geologists disclosed that an ancient landslide may lie under 50 lots.

In a newly released report, geologists said if the discovery is confirmed, it could take up to a year to stabilize the Mystic Hills area before some of the homes lost there in the fire can be rebuilt.

However, the report’s impact is being felt citywide as local officials, who previously vowed to fast-track Laguna Beach’s recovery from the fire that damaged or destroyed 441 homes throughout the community, immediately put the brakes on building permits Monday.

Officials, made aware of potential soil stability problems elsewhere, have now decided not to approve any building permits until extensive geological studies are done in all areas where the fire hit.

For a city physically and psychologically devastated by the blaze, the report dampened the spirit of the community’s recovery.

“It doesn’t surprise me there are geological problems, because we’ve had problems elsewhere in the city,” Laguna Beach Mayor Ann Christoph said. But after the tragic fire, the latest development is “disturbing and serious.”

“The one option we would love to have,” she said, “is to wave a magic wand and have it go away.”

To Mystic Hills resident Mary Peterson, eager to replace her home, the report signaled that her ordeal isn’t over yet.

“The fire was an inconvenience,” she said. “This is a disaster.”

The City Council has called a special meeting for tonight to discuss the possible old landslide and consider earmarking $35,000 for further geological studies estimated to take four to six weeks.

The city staff has advised that if additional study finds the hillside properties are stable, building permits may be issued. However, if the land needs to be stabilized, no permits could be issued for up to a year.

Further, the staff suggested that the council consider creating a special tax assessment district to raise funds for the stabilization project. It wasn’t clear how much the effort, if needed, would cost or what the special district’s boundaries would be.

Representatives of GeoFirm, the consultants that found the suspected ancient landslide, declined to comment Monday.

A summary of his report said “there is a possibility that an ancient landslide may underlay the site of roughly 50 homes / lots in Mystic Hills. About 15 of those homes were destroyed in the conflagration.”

Actually, more than 200 homes were lost in Mystic Hills, but the geologic study focused on just one area on the hillside above City Hall.

He added that homes have existed on the hillside for many years, but none has apparently experienced any damage from the suspected landslide.

Concerns about the stability of Mystic Hills comes at a critical time for the community’s displaced residents, almost 80 of whom have filed applications to rebuild their homes.

So far, the city has issued only two permits and on Monday, officials ordered that no building permits be approved until geological studies are conducted and reviewed by city staff. After the fire, officials had promised to limit such studies in most cases to hasten the post-fire recovery.

City Manager Kenneth C. Frank said Monday that the city, which has faced landslide-related lawsuits in the past, must be careful in light of the Mystic Hills report.

“We do have to be careful of liability, because everybody in the city pays if we have lawsuits,” said Frank, whose own Mystic Hills home was among those destroyed. “But the key thing is, we’re interested in protecting the health and safety of the people living there now and the people who want to rebuild.”

Throughout Laguna Beach’s history, landslides--including one in January, 1993, in Mystic Hills that claimed three homes--have continually plagued the city.

The most devastating slide in recent times happened in October, 1978, when 60 homes were damaged or destroyed in Bluebird Canyon, a hilly area about a mile south of Mystic Hills.

Robert Lawson, a Laguna Beach structural engineer, said Monday that the Mystic Hills area, like much of the South County, has a history of instability, particularly on south-facing slopes.

“It’s always been bad up there,” Lawson said. “Everything on the hill facing San Clemente has always been a hazard.”

Iraj Poormand, a soil engineer, said “all of Orange County has a lot of ancient landslides. Older cities that involve hillsides have a higher likelihood of ancient landslides not being recognized at the time of construction. Laguna Beach is an old city, San Clemente is an old city.”

Experts say a key factor in rebuilding over an ancient landslide is the depth of the underground crevice caused by the slide.

According to Lawson, 60 feet “is not too deep” for rebuilding to take place but “something on the order of 100 feet would be a problem. When you start getting down to 100 feet, you start saying: ‘Where the hell is the bottom of this?’ ”

Lawson said foundations could be stabilized by drilling and tying steel supports into stable underground material.

Frank Horne, president of the Mystic Hills Homeowners Assn., said Monday that homeowners should remain calm.

“My belief in these matters is not to cause panic,” Horne said. “Let’s wait and get the facts on the table.”