Irvine Co. Foe Wins Court Round

An Orange County Superior Court judge Thursday refused to block demolition of the Wild Rivers water park, fueling a high-stakes battle that could put the attraction and neighboring Irvine Meadows Amphitheatre in the path of the wrecking ball.

Judge Michael Brenner’s refusal to grant an injunction sparing the park clears the way for Wild Rivers’ landlord, Los Angeles businessman Harry Shuster, to obtain demolition permits to bring down the $8-million facility as part of a long-standing feud with the Irvine Co.

Until now, Shuster has downplayed the possible destruction of the popular attractions, stressing his desire to work out a financial settlement with the Orange County land giant.

But with a Feb. 28 deadline fast approaching and no signs of an imminent payoff from the Irvine Co., Shuster’s attorneys have tempered their previous conciliatory tone.

“We want to negotiate a settlement. We always have,” said Wayne Call, Shuster’s attorney. “But if Harry Shuster is given no other alternative, I believe that when the moment of truth comes that he will do it”--demolish the water park and amphitheater.

Call said Shuster’s company, United Leisure Corp., will move quickly to obtain permits needed to dismantle the water park in the wake of Thursday’s ruling. United Leisure fought off a similar injunction request by Irvine Meadows in December, and has already secured permits to demolish a substantial portion of the 15,000-seat outdoor concert venue.

The water park and adjacent amphitheater are tenants on a 300-acre parcel of land near the El Toro Y that Shuster controls through a 29-year master lease with the Irvine Co. Utilizing an unusual clause in that agreement, Shuster has threatened to raze both facilities when his master lease expires Feb. 28 unless the Irvine Co. pays him to go away quietly and leave those two profitable tenants on the property.

Attorneys for the water park and $10-million amphitheater have decried Shuster’s steely negotiating tactic as a “shakedown” and “extortion.” Portraying their clients as pawns in a dispute beyond their control, they have attempted to convince the court that Shuster has no right to tear down projects that he didn’t invest a penny to develop.

But Brenner on Thursday said the master lease clearly states that Shuster is entitled to remove all improvements to the property when the lease expires. He said all parties were aware of the clause, and that Shuster shouldn’t be restrained from using it as a bargaining chip even if it puts two viable businesses in harm’s way.

“I don’t think there are any victims or villains here,” Brenner said. “ . . . Everybody knew exactly what they were getting into.”

The Irvine Co. has already negotiated lease extensions with the water park and the amphitheater and is prepared to step in as landlord when Shuster’s lease expires.

Attorney Call accused the Irvine Co. of stonewalling in the hope of cutting out Shuster and picking up his former tenants for nothing.

Shuster’s attorneys sent a letter to the Irvine Co.’s legal counsel last month offering to work out a deal with the help of a mediator.

Irvine Co. officials said Thursday that they might be willing to sit down and discuss a number of unresolved issues. But they flatly rejected the notion of paying Shuster a dime to call off his bulldozers, citing a 1995 Orange County Superior Court ruling that there is nothing in the lease agreement requiring the Irvine Co. to compensate Shuster for improvements left on the property.

“The bottom line is that they are trying to seek additional compensation to which they are not entitled as a matter of contract law or as a matter of fairness,” said Irvine Co. spokesman Larry Thomas.

Owners of Wild Rivers water park vowed Thursday to appeal Thursday’s ruling and said they will continue with a planned half-million-dollar expansion of the facility for the 1997 season.

“We’re confident that reason will carry the day during the appeals process,” said Wild Rivers General Manager Greg Briggs. “We plan on being around in 1997 and beyond.”

Additionally, Irvine Meadows will get another shot at obtaining an injunction against Shuster on Feb. 19, after getting its case transferred from Brenner’s court to another judge. Bad blood has existed between Shuster and the Irvine Co. for most of their 29-year relationship, and the Orange County legal establishment has done a brisk trade through the years handling a slew of suits and counter-suits between them.

Shuster, founder of the now-defunct Lion Country Safari animal park formerly located on the site, has attempted to turn a profit on his leasehold since the safari park went belly up in 1984.

The Irvine Co.’s repeated rejection of his plans compelled Shuster’s company to sue its landlord for allegedly interfering with and harming its business.

In 1993, a jury awarded United Leisure $42 million in damages, but the following year a judge ordered a new trial. United Leisure appealed the order, and a decision is still pending.