Developments to Transform Coastline of Orange County

From Seal Beach to San Clemente, plans to develop Orange County’s most coveted, unspoiled coastal parcels are being finalized.

Several major projects--mostly pricey homes with stunning Pacific views--have spawned decades of controversy, including death threats against elected officials, a spate of lawsuits and costly voter referendums.

But developers are now hitting their stride--two contentious projects received final approval this summer and at least four more could clear major regulatory hurdles by year’s end. The amount of construction slated in coming years is remarkable--about 6,200 homes along the county’s 42-mile coastline, with several hotels, a convention center and other commercial development.

The impending building boom is reigniting an age-old debate that is particularly poignant in urbanizing Orange County: dwindling nature vs. landowners’ rights. Fueling the debate is a huge housing demand pitted against concerns about gentrification of the coast, eroding water quality and land conservation.

“We’ve gone way overboard,” said Mark Massara, director of coastal programs for the Sierra Club. “The traditional California coastal experience is giving way to ubiquitous suburban sprawl.”

But landowners insist that they are being good neighbors, creating sane development along with preserved open space and enhanced beach access.

Large tracts are being saved. At Treasure Island in South Laguna and at the Dana Point Headlands, half the property will be open space. At Newport Coast, 79% of the original site has been preserved. Lucy Dunn, executive vice president of Hearthside Homes, said, “The standard of development is so much better than those builders building in the ‘50s, ‘60s and ‘70s, who saved nothing.”

California Resources Secretary Mary Nichols says the Coastal Commission’s enforcement of the landmark Coastal Act, which sets parameters on seaside land use, is helping.

“The Coastal Act doesn’t allow us to say, ‘enough development,’ ” she said. But “we’ve clearly protected areas that [otherwise] would have never been protected.”

Whatever side one takes, in a few years, a drive up Pacific Coast Highway will be a vastly different experience.

Many Projects Get Green Light

In San Clemente, the majestic 250-acre Marblehead property--once the proposed site of the Nixon presidential library--could have 438 homes and commercial development. An application was submitted to the Coastal Commission Sept. 5.

A short drive north reveals the historic Dana Point Headlands, off which California gray whales frolic on their migration to Alaska. Plans for the 121-acre site include a 65-room lodge, 125 ocean-view lots and open space. The proposal, which should be ready in 45 days, needs the approval of the city and the Coastal Commission.

In sleepy South Laguna, hidden beaches, rocky coves and eagle-eye views of the promontory of Goff Island sprouting out of sapphire waves will be accessible to the public for the first time in decades, part of the plans to turn a former mobile home park into a luxury resort. The Coastal Commission approved the project in June and the Athens Group has already begun grading for the 275-room, five-star resort and some housing.

Farther north, as the highway winds out of Laguna Beach, bulldozers are hard at work above the bluffs of Crystal Cove State Park. Irvine Co. received approval in August for the last contested piece of its exclusive Newport Coast development. About half of the 2,600 homes have been built; the Coastal Commission approval allows construction of Crystal Cove, a gated seaside colony. There is still debate over construction discharges into a fragile offshore marine ecosystem. About 7,340 acres of the original 9,290-acre site will remain open space.

In ritzy Newport Beach, Taylor Woodrow Homes is expected to release plans within three months for a 1,750-home development on Banning Ranch near the Santa Ana River off Pacific Coast Highway. Plans for a separate 470-room hotel and convention center on Newport Dunes go before the City Council in December.

Ten minutes north, the long-opposed Bolsa Chica development could put as many as 1,235 homes on 183 acres of mesa overlooking pristine state beach sands and coastal marshes that are a key stopover for migratory birds. About 1,400 acres of Hearthside Homes’ original 1,600-acre site will remain open space. A Coastal Commission vote is set for November.

Finally, in Seal Beach, Hellman Properties LLC plans to build an upscale 70-home gated community north of downtown. The developer is negotiating the possible sale of open space once slated to be a golf course, but working oil rigs will remain. The Coastal Commission is expected to give the green light within weeks.

Completion of many of these projects will conclude decades of controversy and public outcry. Bolsa Chica alone led to at least six lawsuits. Officials overseeing Bolsa Chica and Hellman Ranch received bullets in the mail. Three of the current projects involved costly voter referendums: Treasure Island was supported by 55% of Laguna Beach voters last year; Dana Point voters blocked a larger Headlands development in 1994; and Seal Beach voters rejected larger plans for Hellman Ranch in 1991, although a developer-backed group outspent the opposition 20 to 1.

Although there has been much ado about individual projects, critics are concerned that there has been no overall look at the effects of development on the county’s coastline.

Environmentalists worry that the projects will cause increased urban runoff, habitat destruction and, less tangible, a loss of the very essence of Orange County.

Indeed, Huntington Beach has already suffered because of a 1999 four-month closing linked to urban runoff--motor oil, pet waste and pesticides washed off streets into area waterways and eventually the ocean. Critics warn that the beach closing was a harbinger of what will happen to the rest of the coast if new development does not include stringent water quality measures.

Coastal Commission Chairwoman Sara Wan said her agency is now requiring a laundry list of conditions for new projects, including storm drain filters, diversion of runoff to sewage treatment plants and strict pollution monitoring.

Even some environmentalists have praised recent developments. Garry Brown of Orange County CoastKeeper, once a Treasure Island critic, testified in support of the resort at a Coastal Commission meeting after the developer agreed to major water-quality concessions.

Landowners say their projects contain other public benefits. The Headlands will have three miles of trails and four visitor centers. Treasure Island will provide four access points to an idyllic beach that was previously off limits.

Dunn of Hearthside Homes said housing in Orange County is desperately needed. The state Department of Finances estimates a statewide need of 225,000 to 250,000 units in the near future.

Coastal Living Not Affordable for All

“Everybody wants to live and play near the coast,” Dunn said, adding that at Bolsa Chica, prices will range from high-end to affordable.

But state officials and activists say that’s the exception, not the rule. From $3.3-million homes in Crystal Cove to $1-million-plus custom lots on the Headlands, critics worry that the coast is being gentrified.

“Dealing the beach away to the highest bidder is a tragedy,” said Massara of the Sierra Club.

Developers are unapologetic, saying it’s a simple case of supply and demand.

“The only way around it is to have the government buy the land at market value,” said Laer Pearce, executive director of the Coalition for Habitat Conservation, which includes Irvine Co. “I don’t see any government entity stepping up to do that.”

That may change. The Coastal Conservancy received nearly $250 million in land acquisition funds from Propositions 12 and 13. The Legislature also approved a $100-million tax-credit fund for people who donate land to the state.

“This is the time” to buy undeveloped coastal land, “the real treasures of this state,” said Wan. “What we don’t buy is going to be gone.”

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Going Coastal

* Hellman Ranch

Proposal for 196-acre site includes a gated community of 70 homes, 12-acre park, 100 acres of lowlands that may be restored and about 66 acres of existing oil operations.

* Bolsa Chica

Proposal for 1,600-acre site includes 1,235 homes on the mesa, an elementary school and 1,400 acres of open space (1,200 of which are already in public ownership).

* Banning Ranch

Proposal for 412-acre site includes 1,750 homes, 75 hotel rooms, commercial development, an elementary school and 216 acres of open space.

* Newport Dunes

Proposal for 30-acre site proposal 470-room hotel, time-share complex and convention center.

* Newport Coast

9,290-acre site will include 2,600 homes, 2,150 tourist-use rooms and 7,339 acres of open space.

* Crystal Cove State Park beach

State Department of Parks and Recreation evaluating plans to turn historic cottages into a luxury resort.

* Treasure Island

30-acre site will include 275-room luxury resort, 17 homes, 14 condominiums and 15 acres of open space.

* Dana Point Headlands

Proposal for 121-acre site includes 65-room lodge, 125 ocean-view lots, commercial use and 62 acres of open space.

* Marblehead

Proposal for 250-acre site proposal includes 438 homes and commercial development.

Source: Times reports