LAGUNA HILLS : Mission Viejo Co. Sues City Over Land

The Mission Viejo Co. on Tuesday filed a lawsuit in Orange County Superior Court against Laguna Hills in an effort to gain control over 49 acres of choice commercial real estate.

The lawsuit states that Laguna Hills’ “continuing interference” with the company’s efforts to develop the land is in violation of a development agreement with the county, made before Laguna Hills officially became a city last December.

Company officials are seeking an injunction in order to proceed with developing the property, which is primarily in Mission Viejo. The property is locked between railroad tracks and the freeway and can be reached only from Cabot Road, which is about 150 feet inside Laguna Hills’ city limits.

“The basic issue is that we believe Laguna Hills is required by law to honor the contracts agreed to with the county,” said Mission Viejo Co. spokeswoman Wendy Wetzel.

Laguna Hills officials could not be reached for comment.

Last month, the developer issued an ultimatum to city officials threatening legal action unless the city withdrew its protest filed with the Public Utilities Commission. The city is protesting a bridge that the company wants to build connecting its land with Cabot Road.

The Laguna Hills City Council responded by saying it would “not be intimidated” and vowed to maintain its protest against the bridge, which it says is being planned without proper traffic and environmental studies.

Last week, the Mission Viejo City Council also voted to sue Laguna Hills over the matter. The city favors building an auto mall on the property, which could bring in more than $1 million in tax revenue each year.

“We have a longstanding problem of communicating with Laguna Hills,” said Mission Viejo Mayor Sharon Cody. “They are using delay tactics because they’re not happy with that land being developed.”