No New Developments in Either of Resort Plans

After hearing comments from about two dozen residents, the Dana Point City Council struggled late Tuesday with how best to develop the Headlands, a resort and residential project on a pristine bluff overlooking the Pacific Ocean.

“It’s been a long, arduous process,” Mayor Bill Ossenmacher said, “and I don’t anticipate it ending soon.”

Meanwhile, in Laguna Beach, the City Council postponed action on a proposal for a $100-million luxury resort to be built on a former seaside trailer park.

The 122-acre Headlands development would dwarf the Laguna Beach project, but many of the same issues have been raised.

In both cases, officials must figure out how land should be allocated for development. In Dana Point, however, the environmental issues are more complicated. Unlike Treasure Island, the Headlands is still in its natural state.

The property is owned by M.H. Sherman Co. and Chandis Securities, a subsidiary of Times Mirror Co., which publishes the Los Angeles Times.

A group of environmentalists and residents is calling for far fewer houses than the 261 being proposed by the landowner. Instead, the local group wants more open space, trails and protection for indigenous species that live on Headlands, such as the endangered pocket mouse.

Council members directed the city staff Tuesday to present a more detailed plan for the Headlands, specifically how to to provide more public, rather than private, open space; and where to locate a hotel.

Earlier this month, the Dana Point Planning Commission recommended a compromise plan that calls for 185 homes and 70 acres of open space.

In Laguna Beach, where residents also spoke for more than two hours for and against the project proposed there, Councilman Wayne J. Baglin asked the city staff to flesh out the environmental impact report for development of the former Treasure Island mobile home park.

Wrangling has continued for eight years over how best to use that 30-acre site.

Merrill Lynch Hubbard Inc., a subsidiary of the Wall Street giant, owns the property and wants to build a 200- to 275-room hotel, 37 homes and luxury villas. The project would include 6.3 acres of beach and a 1.2-acre bluff-top park, both open to the public.

Community groups had lobbied for a number of alternatives, including development on a much smaller scale.

Some officials agreed Tuesday. “There is not enough open space and park area in this plan,” Councilman Paul Freeman said.