Lot-sale approval boosts Village Entry

Festival of Arts drops opposition to sale of lots above Irvine Bowl; city set to pursue relocation of Girl Scout House.City-owned lots will be sold to help plug the shortfall in the budget for the relocation of the city’s maintenance yard to the Act V parking area in Laguna Canyon.

It is the first step in a long-awaited revamp of the inland entry to downtown Laguna Beach, and creation of a Village Entrance.

The City Council approved at the Feb. 7 meeting the sale of six lots on Olive, Linden and Poplar streets, including the city’s “nursery” above the Festival of Arts Grounds. The lots are expected to sell for an average of $925,000 each, which will help offset the estimated $3.8- million increase in the costs of the relocation project.

“We would have loved it if the city was in a position not to sell the lots, but we understand the need,” said Festival President Anita Mangels, speaking on behalf of the board.

The Festival of Arts board is concerned that, if new homes are built above the Irvine Bowl, conflicts could hamper operations at the Pageant of the Masters or other performances in the theater.

Under a compromise plan, the sales are subject to a declaration and establishment of protective covenants and restrictions designed to protect the festival from intrusive development of the residential lots, including artificial light and noise spills. The festival board supported the declaration approved by the council, Mangels said, with some reservations.

“Jane [Councilwoman Egly] and I, our geologist, Anita and Fred [festival board member Sattler] have been meeting and mostly smiling,” Councilwoman Cheryl Kinsman said. “This is the compromise we have worked out and I recommend approval.”

The lots to be sold do not include the two parcels on which the Girl Scout House stands, a proposal which had drawn fire from Scouts and Scouting officials. Egly and Kinsman will continue to pursue with Scout officials the possible relocation of the house, which would allow the lots to be sold.

A Laguna Beach real estate broker, Audrey Prosser, offered to broker the lot sales for the city without the usual fees.

“That will save the city about $150,000 for the seller’s representative,” Assistant City Manger John Pietig said.

Prosser also recommended that a 2% fee be offered to the representatives of successful buyers, for which she would be eligible. The usual fees range from 5-6% of the sales price, about $277,500 -- almost double the fees under Prosser’s 2% recommendation.

Escalating costs of the maintenance yard project raised doubts among some community members about selling the lots to finance the project.

“It is disturbing to hear that the [relocation] project is over-budget because that does not bode well for the other part of the project -- the Village Entrance,” former Mayor Ann Christoph said. “If the Village Entrance [financing] includes bonding, I would prefer including this cost in the bond. Development of the lots is just asking for trouble.”

Costs for the relocation escalated while the community sought to find a compromise solution to parking and development in the canyon abutting the Laguna Coast Wilderness Park, as well as a project near City Hall.

City Manager Ken Frank warned the council recently of cost increases in material and labor that will affect all city -- and other communities’ -- capital improvement projects.

“I am very committed to the Village Entrance,” Mayor Elizabeth Pearson said. “And I will support a bond to do it.”