San Juan Capistrano City Block May Be Sold

The sale of an entire city block in the heart of downtown San Juan Capistrano for $1.1 million to a development partnership will be considered next Tuesday by the City Council.

The property, across the street from Mission San Juan Capistrano, includes three decades-old buildings that make up El Peon Plaza. The buyer is San Juan Partners, which consists of Richard J. O’Neill, a local rancher and one of the county’s wealthiest men, and Steve Nordeck, who owns the Swallows Inn.

O’Neill and Nordeck plan to renovate the buildings and bring in upscale retail shops to lure tourists who visit the mission, which is the county’s third-most-visited attraction.

The agreement calls for the developers to spend about $687,000 to bring the buildings up to earthquake standards and to rehabilitate the entire complex within 12 months of the close of escrow.

The city is selling the property for almost $200,000 less than what it paid for it in 1987. But officials say once renovated, the plaza should generate more property and sales tax revenue for city coffers.

San Juan Partners have told the city that they plan to attract a variety of upscale boutiques and bistros to the complex, which is part of the redevelopment agency’s Historic Town Center project.

The City Council on Tuesday decided it wanted more time to approve the draft agreement.