BREAKING NEWS

Confirming speculation that the economic downturn has affected the planned redevelopment of the Aliso Creek Inn and Golf Course, Athens Group announced today that the Aliso project and plans for adjacent properites has been put on hold “indefinitely.�

John Mansour, vice president of the Athens Group, made the announcement Tuesday on behalf of Aliso Creek Properties, LLC, owners of Aliso Creek Inn and Golf Course and Driftwood Properties, LLC, owners of 250 acres north of the Aliso Creek Inn and Golf Course.

The historic Aliso Creek Inn and Golf Course will remain in operation, Mansour said.

“After much deliberation, project investors have decided to indefinitely suspend the Aliso Creek Area Redevelopment Plan process,� Mansour said. “The economic downturn and challenges associated with advancing new development in today’s market have led the owners to this decision.�

The 325-acre Aliso Creek Area Redevelopment Plan encompasses the Aliso Creek Inn and Golf Course; Aliso Highlands, north of Aliso Creek Inn and Golf Course; and Aliso Lots. Aliso Creek Properties and Driftwood Properties retained The Athens Group, developers of Montage Laguna Beach, to prepare a comprehensive redevelopment plan for the properties.

“We are grateful to the many members of the Laguna Beach community who have demonstrated support of the plan and its environmental and public benefits to date,� said Mansour. “I would like to take this opportunity to thank the city council, planning commissioners, city staff and everyone who participated in Town Hall meetings, tours and briefings over the years. This input was instrumental in shaping the plan for the property.�

This decision to suspend redevelopment efforts does not affect operations of the Aliso Creek Inn and Golf Course. Noted Ned Snavely, general manager of the Aliso Creek Inn and Golf Course, “We plan to continue full operations of the golf course, inn, banquet facilities and restaurant for the enjoyment of local residents and guests.�

The Athens Group will maintain a presence in Laguna Beach, and Mansour will continue to reside here, according to spokeswoman Joan Gladstone.

Recently, Laguna Beach City Manager Ken Frank stated that Athens had not replenished a fund needed to further environmental review of the site, leading to speculation that the developer had run out of money. The redevelopment plan had drawn stiff opposition from some community members.