Leaders Meet to Address Annexation Controversy

Lake Forest city officials met with leaders from two nearby unincorporated communities on Thursday to discuss the city’s controversial plans to annex a shopping center, effectively killing efforts to form a new city in Foothill Ranch and Portola Hills.

Many residents of the two communities oppose Lake Forest’s annexation of the Foothill Ranch Towne Centre, saying they need the tax revenue generated by the shopping center to pay for services in their proposed city.

The meeting came after the Lake Forest City Council submitted its application to the Local Agency Formation Commission on Wednesday to annex 1,502 acres of commercial/retail property north of city limits.

“It was a start,” said Foothill Ranch Civic Council Vice President Sharon Hankins of the meeting, “but there’s not much in between to negotiate.”

Lake Forest officials defend their annexation drive, arguing that a large percentage of the Towne Centre’s customers are from Lake Forest and that the city should receive some of the tax revenue.

The city’s annexation proposal is now under consideration by LAFCO staff. A public hearing will take place once the commission is ready with its recommendation.

Hankins said annexation foes are now seeking support from businesses in the Towne Centre, which produces about $2 million per year in property tax revenue.