Part 2: To B or Not to Measure B—That Is the Question

Updated at 3:45 p.m. to further clarify what a no vote means.

This is the second part of an interview with Advanced Real Estate Services, the landowner and developer of a 153.8-acre plot along La Novia Avenue.

ARES is a Lake Forest-based developer fighting to uphold zoning changes the City Council approved in November on its land. In the , posted Monday morning, ARES answered questions about the number of horses that may be permitted on the land, public access to trails, some scenarios about what may happen if the measure fails and more. 

A  vote on Measure B will uphold the zoning changes approved by the council in 2010. 

The changes amend San Juan Capistrano's long-term planning document, its general plan, to allow the Distrito La Novia-San Juan Meadows project: a 500-horse commercial equestrian center, 94 single-family homes, 75,100 square feet of commercial space (supermarket, restaurants and retail), 16,500 square feet of office/retail/hotel space, 50 apartments and up to 130 condos.

A  vote means you want the changes dismantled, reverting to a development blueprint approved in the 1980s: a 300-room, 160,000-square-foot hotel and conference center, 9.6 acres for undetermined public-institutional uses, 275 single-family homes and 165 multi-family senior affordable apartments.

If Measure B fails, ARES may develop pursuant to the plans approved in the 1980s, or the city may immediately consider a different development. However, the city will be prevented from approving a substantially similar development for one year.

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Q&A PART 2

San Juan Capistrano Patch: How much tax revenue do you expect the city to collect as a result of development under the new entitlements? How much under the older entitlements?

ARES: The new plan has approximately $11 million in development fees up front, and after construction it is estimated to generate approximately $600,000 in property/sales taxes revenue annually thereafter.

San Juan Capistrano Patch: What sort of commercial and retail business does ARES envision filling Distrito with if Measure B passes?

ARES: We plan on having a small market, restaurants, boutique shops and a few offices that could serve small businesses. The shopping center would be very similar to Marbella Plaza in both size and feel.

San Juan Capistrano Patch: The Pacifica San Juan housing development went bankrupt in 2008, and Orange County home values fell for the eighth consecutive month this March. … Is it realistic to believe that under the old entitlements, ARES would actually build 275 single-family houses?

ARES: Yes, we feel it is realistic that we could build 275 single-family houses, 165 senior apartments, the hotel and a public institution building the old plan. Housing construction wouldn’t start for at least another two years, and we will be in a different economy than now and 2008 when Pacifica San Juan went bankrupt.  Before we build, we still need to get permits from various governing agencies to begin the grading and the construction as well as finalize the designs of the homes, hotel and the public institution building.

 San Juan Capistrano Patch: In a on Patch, City Councilman Derek Reeve writes: “An ARES representative said that despite making more money with the former plan, the new plan is just a better plan. I was stunned. They either were willing to violate their fiduciary duty to their investors or he was lying in hopes of selling me. They overplayed their hand. Why spend over $100,000 of investor money on a campaign to earn less money for their investors? I know I’m only a local politician, but even I’m not that stupid.” … what is ARES' response?

ARES: While Councilman Reeve feels he’s been mislead or lied to, it’s far from the truth, and he is very wrong. The fact is both plans are profitable for us. The Yes on B plan is profitable but is also easier to build and is attractive to our investors. To suggest we are violating our fiduciary duty is disingenuous, especially not knowing anything about our partners or partnership. The Yes on B plan only has seven months of grading and preparation for construction however; the No on B plan calls for a longer period of grading that could go as long as two years, which costs considerable amounts of money and a longer time for our investors to realize a return on their investment.

 We are also concerned that Councilman Reeve would quote inaccurate facts such as 10 three-story buildings, alluding to a four-story parking structure on a hillside and generating over 2,200 more daily traffic trips. These statements are inaccurate. The City Council ensured less traffic with their unanimous approval. The city’s traffic engineer has calculated the daily traffic to be less than the previously approved plan with 440 residences, hotel and private school.

We feel this campaign has been filled with lies and half-truths and that we won’t be building anything if Yes on B is defeated, that is simply not the case. There will be development at this site regardless of how the election goes however, we and our investors are members of the San Juan community and we want to build a great project that helps the local community, retains open-space and also brings great opportunities for local business, that’s why we continue to invest in our project, protecting our property rights and fighting for the Yes on B plan.