Grappling With the Segerstroms, Costa Mesa and Land of the Fee

Is this how land-use deals get done?

More to the point, is this how they should get done?

Will waving a couple million dollars at the Costa Mesa schools be the “vote” that finally convinces residents to quit fighting the Segerstrom family in its desire to develop some prime real estate in town?

Since the 1980s, the Segerstroms--the family that brought Costa Mesa both South Coast Plaza and the Orange County Performing Arts Center--have wanted to develop their bean fields north of the San Diego Freeway near Harbor Boulevard.

Each time the City Council said yes (including one plan for a 32-story office tower), Costa Mesa residents rose up and said no, effectively thwarting the plans--either in court or at the ballot box.

Where Segerstrom & Sons once envisioned buildings, they still see only dirt.

The company is back again, asking the city to permit it to bring in a giant IKEA store, as well as apartments, townhouses and other commercial development.

Again, a citizens group is poised to stop it.

This time, however, there’s a wrinkle not seen before.

The company has put $2 million squarely in the middle of the table and promised it to two local high schools and a middle school if the Home Ranch project is approved.

Sounds like a bribe, doesn’t it?

An outrage, you say? Oh, indeed.

I was sputtering all the way to the keyboard--until I discovered the Segerstrom offer resulted from talks with the city, which wanted to strike a deal that would, um, offset potential downsides to approving such a large project.

Sounds like extortion, doesn’t it?

An outrage, you say? Oh, indeed.

Can one side bribe the other side that is extorting it?

I’m confused.

Someone who’s not is Robin Leffler, one of the leaders of a Costa Mesa residents group that still opposes the project.

She and her like-minded neighbors smell a rat. Funny, they say, the Segerstroms have never been known to be big donors to Costa Mesa schools before.

“I know there is a deep, wide mentality in this city that doesn’t want to see a lot of growth,” Leffler says. “We have the same sentiment Newport Beach had when it passed Greenlight (an initiative that lets voters decide on large development projects).”

On the other hand, Leffler knows the schools can use the money. “I’d love to see a foundation established like this for the schools,” she says. “But making it contingent on approval for this project is self-serving.”

That may not be the right word because the city is cutting a deal here too.

It got Segerstrom & Sons to pony up the $2 million in exchange for the city agreeing not to subject the project, if approved, to less favorable land-use restrictions that might be passed by future councils.

In other words, the company wanted the terms and the city wanted something in exchange. And since the schools needed the money (for as-yet unspecified purposes), an agreement was hatched.

It’s that simple, says council member Libby Cowan. She’s heard the talk about bribes and extortions. To her, the agreement is neither. Nor does it guarantee the council will approve the project, she says.

“The council still has to look at whether [this project] is the best use of the land.”

Part of deciding that, she continues, is whether the accompanying pledge of $2 million is enough to allay any community concern over the project.

Here’s what bugs me: Can a city council make a decision on a giant project and forget there’s a $2-million “reward” sitting on the table? How can members not factor the money into their thinking?

“[The money] absolutely has to be a factor, but it is one on a list of factors,” Cowan says. “Some may put it higher on the list than others, but it absolutely will weigh [on the decision].”

The Home Ranch project hasn’t come before the council yet. Common sense tells me its opponents won’t drum up as much opposition from residents because some will be swayed by the much-needed infusion of money for the schools if the project is approved.

In that sense, it’s a brilliant deal for the Segerstroms, who can probably scrape up $2 million without much trouble.

We’ve all read about the nefarious businessman who would buy off a couple of city officials to get the support it needed.

This time around, a company may buy off a whole city. In broad daylight, with council approval, and with the public applauding.

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Dana Parsons’ column appears Wednesdays, Fridays and Sundays. Readers may reach Parsons by calling (714) 966-7821 or by writing to him at The Times’ Orange County edition, 1375 Sunflower Ave., Costa Mesa, CA 92626, or by e-mail to dana.parsons@latimes.com.