Festival of Arts Cleared to Talk With San Clemente

Negotiations to move Laguna Beach’s popular Festival of Arts to San Clemente do not violate the festival’s incorporation rules, a judge ruled Friday, clearing the way for the talks to continue.

Six festival exhibitors had sought a preliminary injunction to halt negotiations between officials of the festival and San Clemente. They cited the festival’s articles of incorporation, which state that the annual event has to be “in or about the city of Laguna Beach.”

Superior Court Judge Robert D. Monarch ruled that “community” has a much broader meaning now than when the festival was founded in the 1930s.

“The community concept has evolved substantially into the new millennium,” Monarch said. “San Clemente is part of that community. . . . The bottom line is the articles of incorporation didn’t appear to be crystal clear.”

The operators of the 68-year-old organization are feuding with Laguna Beach over how much rent the festival must pay and who will control money set aside for improving the aging festival grounds. The organization’s lease on the 5.6-acre site that includes the Irvine Bowl expires in September 2001. The festival paid Laguna Beach nearly $600,000 in rent last year.

Dissent over the negotiations with San Clemente triggered a petition drive to recall the festival’s board.

The festival’s directors have agreed to negotiate exclusively with San Clemente officials until May 1 on leasing a 20-acre site in the Talega development. Some exhibitors, however, say the board should restart negotiations with Laguna Beach.

Monarch said Friday that the overall mission of the festival does not depend on whether it is in Laguna Beach or San Clemente.

“The purpose of the festival is to maintain its artistic concept, and the move doesn’t seem to affect that purpose,” he said.

Bruce Rasner and Diane Reardon, two of the exhibitors who had sought the restraining order, said they may appeal the judge’s ruling.