Bluff Proposal Gets Warm Response From Officials : Project: San Clemente council may begin talks with developers on plans for shops, restaurants and condominiums above pier.

A $15.6-million plan to build restaurants, stores and condominiums on the oceanfront bluffs overlooking the pier received an enthusiastic reception Wednesday from the City Council.

Council members debated whether to open negotiations with two developers, Continental Commercial Corp. and Riverside Commercial Investors Inc., who presented the plan.

“I think they’ve done a darn good job,” Mayor Scott Diehl said. “At this point . . . we’re in a position where it’s time to move forward.”

The most important element of the plan, according to the staff, is the proposal to renovate the historic Casa Romantica, a home built by the city’s founder, Ole Hanson, and convert it to a restaurant. A portion of the 8,000-square-foot estate would become a museum recalling the history of San Clemente. About $130,000 would be spent on the conversion.

“Tonight we reach a milestone in the long-term goal to restore the Casa Romantica,” said Jim Holloway, community development director.

Plans also call for 53 time-share condominiums, two restaurants and retail shops and a funicular--a cabled tram that would shuttle visitors to the beach.

City planners say the proposal by two developers is far smaller than the one made in 1990 by the Ratkovich Co. A storm of protest from residents caused those plans to be withdrawn.

“We’ve learned our lessons,” said Jim Pechous, assistant city planner. “We’ve learned to sharply define the project before the developer is brought in.”

Since the Ratkovich plan failed, several public meetings have been held to help create the latest plan. Pechous said the proposal before the City Council on Wednesday conforms to those guidelines.

The council had not voted by late Wednesday night on whether to begin negotiations.

But city officials acknowledged that there will be opposition to the plan.

“There are some who won’t like this project no matter what is proposed,” City Manager Michael W. Parness said. “It’s an emotional issue for many people.”

Opponents of the current plan believe it is inappropriate to turn a historic city landmark into a restaurant. And they fear the museum might be muscled out to create more profit-making dining areas.

“They should just leave the Casa Romantica alone,” said activist Karolyn Koester, the former mayor. “It’s a people’s project--not a developer’s project, not the city’s project.”