Spa May Bubble Again : Company Plans Resort at San Juan Hot Springs

Historic San Juan Hot Springs, the century-old Ortega Highway spa that has been boarded up since 1992, may see new life thanks to an Asian resort operator.

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Korea-based Hangshin Ltd. has proposed a new resort for the 17-acre oasis that has been a Southern California institution since the 1880s.

The proposal calls for Hangshin Ltd., working with Amtech Sports Inc. of Downey, to first clean up the now fire-damaged and weed-infested spa nestled among the ancient sycamores and oaks at the northeast corner of Ronald W. Caspers Wilderness Park and next to Cleveland National Forest. Orange County owns the property.

They want to also install more hot tubs, a restaurant, exercise rooms, individual log cabins, even Indian tepees, and hot and cold pools to take advantage of the pristine setting and the natural hot springs that gush 120-degree mineral water from the ground at 50 gallons a minute.

“I think this is going to be a very exciting place,” said Paul I. Kim, a Newport Beach architect who is working on the resort plan. “We will cater to European and Asian customers but also market this all around the world.”

For the rights to the spa, Hangshin Ltd. has offered the county 6% of the gross revenue, or a minimum of $30,000 a year over a 35-year lease, said Robert G. Fisher, director of the county’s harbors, beaches and parks.

“It was nice to get this offer and we are certainly receptive to a proposal like this, from what we know of it,” Fisher said. “We have to look at it more closely.”

The popularity of the San Juan Hot Springs dates as far back as 1888 when the spa was listed on a tourist guide and customers would arrive by horseback or by a stage that ran from the old Capistrano Depot. The dance hall and bathhouses from the old hot springs have been preserved and moved to various locations in San Juan Capistrano.

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Local historical records show that the resort was closed in 1936 because it did not meet county health standards. For several decades afterward, the old resort along state Highway 74 fell into disrepair and, by the 1960s and 1970s, gained notoriety as a offbeat destination for hippies and bikers.

The county cracked down on the informal use of the area in 1974 when it acquired the hot springs as part of Caspers park. One notorious raid after the county takeover netted 50 arrests for a variety of charges, including trespassing and drug use.

The hot springs remained officially off-limits until 1981 when San Juan Capistrano resident Russ Kiessig, who also owned another resort in Avila Beach, transformed the area into a resort with 35 hot tubs, a 100-foot swimming pool, two public restroom facilities, a caretaker’s building and a gatehouse.

Kiessig’s plans for a world-class conference center failed to materialize, however, and 10 years later he gave up on the resort project. In a lawsuit against the county and Caltrans, Kiessig claimed that the widening of Ortega Highway destroyed the atmosphere of the hot springs area.

Kiessig has since settled with Caltrans but the suit against the county is still pending, Fisher said.

The county spent three years hoping to find a new operator for the resort to no avail and the 1992 Ortega fire destroyed nearly every building still standing, Fisher said.

The Hangshin proposal arrived unsolicited, he said.

“Somewhat out of the blue we got this proposal,” Fisher said. The project is due to be considered by the county Harbors, Beaches and Parks Commission tonight and the supervisors are expected to grant the staff the ability to negotiate a contract Tuesday, Fisher said.

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If ultimately approved, Hangshin hopes to successfully employ its expertise in resort marketing for the San Juan Hot Springs, Kim said. Hangshin also makes golf equipment in factories in Seoul and China and will attempt to lure golfers from around the world to the spa with local golfing package tours, Kim said.

“Hot springs are very popular among Asians and Europeans and Canadians,” Kim said. “Many come to the Palm Springs area every year. This will be a good alternative for them.’

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In Hot Water The 120- degree mineral water at the San Juan Hot Springs gushes at 50 gallons per minute and is the product of a natural process. A look at how hot springs work: 1. Water from rain and snow seeps into ground. 2. Water trickles down, circulates around hot, molten rock called magma. 3. Magama dissolves, mineralizing the water. 4. Heated water rises to surface through channels in rock, forms pool. Sources: World Book Encyclopedia, Academic American Encyclopedia; Researched by CAROLINE LEMKE / Los Angeles Times