Work halted at Crystal Cove

The crisis in the California economy and state budget has dealt a double blow to long-awaited facilities at Crystal Cove State Park.

Construction has been halted at a campground and RV park at the former El Morro Village trailer park, where a $10.5-million project has been under way.

At the Historic Cottage District — set to begin the second phase of restoration, a $6.5-million project — two sources of funding have dried up, and approved bond financing is on hold, said Crystal Cove Alliance founder Laura Davick. The alliance is the concessionaire for the historic cottages that hug the Crystal Cove coastline.

“Now we don’t have enough money to move forward [with restoration],” Davick said. “We were set to do the next step in March.”

The campground project, funded from Proposition 12, is one of hundreds of park projects and other construction jobs funded by state bonds that have been put on a list of projects to be shut down or suspended by the state’s Pooled Money Investment Board.

The Historic District project had a $1.45-million grant from the California Cultural Endowment Fund, obtained from Proposition 40, plus a matching grant from the California Conservancy, Davick said.

On Dec. 17, the Crystal Cove Alliance was informed both grants had been pulled, Davick said.

“We’ve already spent $700,000 on drawings and plans,” she said.

At the historic district, a museum, restoration of several more of the “vernacular” cottages dating from the 1930s, and an outdoor educational commons were slated to begin construction.

Ken Kramer, Orange Coast District superintendent for the state Department of Parks and Recreation, said the construction halt at the RV park is temporary, but he does not know when workers will be back on the job.

The campground project is 40% complete. The contractor decided to shut down the project Jan. 21 until the firm could be assured it will be paid for the work, Kramer said.

“The governor has issued a directive to temporarily suspend projects with bond funding,” Kramer said. “We are disappointed and frustrated, and hopeful for a resolution so the project can get started again.”

Kramer said that grading, utilities, sewer and water system, foundations for restrooms, and other infrastructure has been completed at the site, but there is still much more work to be done, and the shut-down will only add to the final cost.

“This pushes back our opening, which was to have been 2010,” Kramer said. “The suspension will cost money to demobilize and remobilize.”

The 35-acre RV park and campground is considered one of the last ocean campgrounds to be built in the state — and promises to be a huge economic boon to the area when it opens.

Davick said the cottages continue to be extremely popular and business is brisk at the Alliance store and gallery, adjacent to the rental cottages. The website that takes reservations for the cottages saw an all-time high in web hits last month, she said.

“The cottages are doing as well as they ever have,” Davick said. “We are concerned the economy will affect our [Alliance] cash flow. We will have to work twice as hard to raise the same amount of money.”

Visit www.crystalcovealliance.org for more information.

CINDY FRAZIER is city editor of the Coastline Pilot. She can be contacted at (949) 494-2087 or [email protected].