SAN JUAN CAPISTRANO : Council OKs Sale of Land Near Mission

Officially sealing the deal, the City Council voted Tuesday to sell an entire city block for $1.1 million to a partnership that hopes to turn the historic property into a flagship development for the heart of downtown.

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 comprises Richard J. O’Neill, a local rancher and one of the county’s wealthiest men, and Steve Nordeck, who owns the Swallows Inn in downtown San Juan Capistrano.

O’Neill and Nordeck plan to renovate the buildings and bring in upscale retail shops to lure tourists. About 500,000 people visited the mission last year, making it the county’s third-most-popular attraction.

Sitting as the redevelopment agency board, the council voted 5 to 0 to enter into a development agreement with the partnership. Escrow is expected to close in 60 days.

“There is not one of us (council members) here that isn’t excited to see you come into town,” Mayor Collene Campbell told Nordeck after the council took its vote during a special meeting Tuesday morning.

The agreement calls for the developers to pay cash for the 17,500-square-foot parcel and spend about $687,000 to bring the buildings up to earthquake standards and to rehabilitate the entire complex within a year after escrow closes. The partnership will still need city approval for much of the renovation work.

“We want to maintain the charm of the buildings but make them look spiffier, if you will,” Nordeck told the council.

Nordeck said architects are already working on ways to renovate the buildings while preserving the character of the facades. The back of the buildings will be made into second entryways to many of the shops, he said.

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

The developers have told the city 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 plaza now includes a variety of retail shops and eateries, including Cafe Capistrano, a Western art gallery and jewelers and some office space. All but one of the shop owners lease from the city on a month-to-month basis.

Nordeck said the partnership has not decided which leases will be renewed. None of the El Peon Plaza merchants spoke at Tuesday’s public hearing on the development agreement.