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LAGUNA HILLS

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Two proposals by a state agency that would allow Aliso Viejo to incorporate and still give west side land to neighboring Laguna Hills were met this week with enthusiasm by Laguna Hills officials.

“Our main goal was to correct illogical boundaries that currently exist,” said Don White, assistant city manager of Laguna Hills. “In any case, the alternatives are improvements to what we have today.”

A report by the state’s Local Agency Formation Commission for Orange County, which oversees the formation of cities and annexation of unincorporated areas, states that Laguna Hills’ annexation proposal would kill Aliso Viejo’s plans to incorporate next year as Orange County’s 34th city by siphoning off too much tax revenue.

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The two alternate proposals were offered by the commission’s staff, both keeping Aliso Viejo Plaza--and its revenue-producing Target and Stater Bros. grocery store--within Aliso Viejo while allowing Laguna Hills to annex a park and homes.

The commission will vote on the incorporation and annexation proposals Aug. 18.

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