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Russ and Kathy Cotton were drawn to the community of Coto de Caza in 1992 because of its equestrian appeal and tennis center.

Before the move, the couple would travel with their daughter, Jennifer, from their Irvine home to Coto de Caza so Russ could play tennis and Jennifer could ride the horses at the Coto Valley Equestrian Center.

Jennifer Cotton fell in love with the horses, and during their time in the community the family has had, at most, three horses housed in the center’s stables.

Now, the Cottons and other Coto de Caza residents fear that way of life might be in jeopardy. Oak Grove LLC of Newport Beach recently posted a notice that it planned to demolish the center’s lower barn – one of the last remaining pole-barn structures in California – and a 3,000-square-foot barn that houses feed storage and a workshop between Monday and Nov. 8.

The demolition would be the developer’s first step toward changing the area’s zoning to allow for development of 13 luxury homes. For two years, Oak Grove has pushed to build the $2million homes adjacent to the equestrian center. The original plan was for 71, but that was reduced to 29 after an outcry by residents. The number has since shrunk to 13.

The development plan also includes the site of the vacant Merryhill School, which housed students from 1997 to 2008 before closing.

“We moved here because it was an equestrian community,” said Kathy Cotton, 70. “The barn keeps the character of Coto and once you build homes, it’s gone.”

Orange County Supervisor Lisa Bartlett has reached out to Oak Grove, requesting to meet before the demolition takes place. Oak Grove has agreed to put off the demolition to discuss alternatives with Bartlett on Monday, said Victor Cao, senior policy adviser for Bartlett’s office.

Oak Grove officials have said they will spend $1.6million to improve the remaining facilities. That includes building a new barn with 34 box stalls, constructing four tack rooms, adding a trail in and out of the center and building a lounge.

“The many supporters of our ‘vision’ believe Oak Grove is a very worthwhile project that will increase home values in the area,” Oak Grove President Robert OHill said in an Oct. 18 email.

Residents disagree, saying the loss of an important part of the community’s biggest amenity would decrease home values. Oak Grove’s plan would take out 90 of the center’s 245 horse stalls, costing the center $600,000 in rent revenue, said Ken Agid, founding member of the Silver Bronze Corp., a nonprofit formed to benefit the community.

The center is known for hosting the 1984 Olympic pentathlon and for its use as an evacuation center for horses during wildfires and other disasters.

“I’ve raised my son here and we’ve always enjoyed the barn,” said Mary Sadler, president of the homeowner’s association for Coto Village and a 40-year resident. “It’s the heart of Coto. It has intrinsic value.”

A MAJOR PLAYER

Oak Grove came into Coto de Caza in 2013 with a vision to develop homes. The company succeeded in buying out shareholders after two attempts – by the Orange County Equestrian Center and then by two community residents – had failed from 2007 to 2008.

The Coto Valley Equestrian Center and Country Club was built and run by early community developers until they were given to residents during a court settlement, triggering formation of the Silver Bronze Corp., or SBC, in 1989.

Village property owners plus some early stakeholders in the equestrian center and country club were given equal shares in the nonprofit mutual benefit corporation tasked with preserving the facilities.

Roughly half of those early investors have moved away, Agid said.

In the meantime, OHill offered $30,000 in cash or $40,000 in equity to buy out shareholders in the hopes of gaining majority ownership of SBC.

In August 2013, the company bought out 95 of the 188 members, Agid said.

Since OHill gained majority ownership, Silver Bronze Corp. has been converted to for-profit.

Residents have complained that Oak Grove has only done landscape renovations so far – not the $1.6million in improvements.

OHill said the renovations cannot go through until the corporation receives its share of the Oak Grove sale, which OHill anticipates would occur about 90 days after the Board of Supervisors approves its rezoning request.

LAST DITCH EFFORT

Since the notice of demolition was posted, residents have reached out to Bartlett.

“The developer has been under the impression they need to demolish the barn to complete their planning application,” Cao said.

He said county staff has recommended an alternative that would prevent the developer from demolishing the two buildings prematurely.

“This would prevent the worst-case scenario where the landowner takes down the barn and does not get a project approved,” Cao said. “In that scenario, the equestrian center is in a diminished capacity and the landowner is unable to develop their property.”

OHill said the longer the delay for the public hearing, the more costly it becomes for tenants at the equestrian center and the managing company, Cinnabar Equestrian Operations. He said the delay has cost Cinnabar $28,000 per month in leasing fees.

“The sooner the public hearing, the better for all,” OHill said.

Horses have already been moved from the lower barn to the nearby Maxwell Stables, and utilities to the barn have been shut off. Residents said they fear this is only the first step in a process that will ultimately undermine the financial viability of the entire center.

“It’s in the middle of this community and there are activities held here all the time,” Agid said. “If we don’t have it here, it will result in the elimination of horses in the community. Riding trails will be abandoned and turned into trails for walking dogs.”

Contact the writer: npercy@scng.com