TOPANGA CANYON : Plan to Turn Development Site Into Park Advances

Plans to turn the proposed site of a controversial housing project in Topanga Canyon into public parkland moved forward Tuesday as Los Angeles County officials gave $11 million to a state parks agency.

The unanimous decision by the County Board of Supervisors to release the money--part of voter-approved Proposition A funds--was the last major hurdle to resolution of the longest-running land-use dispute in the county.

In a surprise deal announced r this month, the Santa Monica Mountains Conservancy agreed to buy 662 acres in the Summit Valley area from the Canyon Oaks Estates Limited Partnership, which had proposed building a links-style golf course and 97 luxury homes on 257 acres.

The price, $19.9 million, was the highest paid by the conservancy since it was created in 1979. As part of the deal, the development partnership--which is part of a Disney family trust--agreed to drop its plans if the conservancy could close escrow before April 5. The money released Tuesday allows the conservancy to finalize an initial purchase of 432 acres for $14.1 million.

The remaining 230 acres must be purchased before August, 1995. Money for that acquisition would come either from Proposition 180, an initiative on the statewide ballot June 7, or from money owed the conservancy by the National Park Service.