LAGUNA BEACH : Crystal Cove May Be Celebrating Its Last

Residents of the historic beachfront cottages nestled in Crystal Cove cannot imagine that this may be their last Christmas here.

Some of the residents have strung up lights across their cottages. Others have put up Christmas trees. The front gate, where a clock is hung, is obscured by a giant red wreath. But what is on most people’s minds is next summer.

The property, containing 45 cottages that hark back to the 1920s, is inside Crystal Cove State Park. State officials want to evict the residents in July to make way for a museum, concession stands, youth hostels and perhaps a marine research center--all with greater public access.

In protest, some of the Crystal Cove residents have decorated the area with thousands of lights, including a message spelled out on the beach: “We Won’t Leave.”

“This is the most special place in the world,” said Laura Davick, 33, whose parents have lived in the tiny beach hamlet since 1945. “I have lived here all my life, and if I have to, I will spend six months doing whatever I can to save Crystal Cove.”

The problem for the Crustal Cove residents is that in 1979 the state bought the land from the Irvine Co. for more than $32 million. Four years later, after a lengthy court battle, the residents signed 10-year leases with the state.

Since then, the state has received about $500,000 a month in lease payments. Some leases on the property are only $370 per month, but most are about $1,000 a month.

Next July, the leases will expire and the cottages where some families have lived for almost half a century may have to be abandoned.

“We have a real tough time,” said Doug Falzetti, a resident of Crystal Cove for 15 years. His wife’s family has lived here 30 years. “I am afraid everything will go into disrepair” when the state takes over.

The state, on the other hand, has designated the cove a historical district--one of the few located on a California beach. Bob Hudson, assistant director of public affairs, said that the state can generate more money from the cove through other means than simply collecting monthly lease payments on the beachfront property.

“The real fiscal tragedy is that people of California have spent millions of dollars for this private use of a few people,” Hudson said. “They basically have had a 10-year notice to move. Everybody wants a sweetheart deal.”

Many of the cottages are drafty and falling down but have a character about them that lends the feel of the pre-World War II era.

“We do have enough money set aside to come in and do some initial work and determine what needs to be done,” Hudson said. He said the state intends to preserve the historical atmosphere of the area while providing access to public.

“From an historical standpoint, the state Department of Parks and Recreation is the biggest preserver of historical structures in the state,” he said.