ANNEXATION PLAN WENDS WAY FORWARD; PANEL'S VOTE LIKELY TO OCCUR THIS MONTH.

Byline: Teresa Jimenez Daily News Staff Writer

The proposal to expand city boundaries and annex 858 acres of Newhall Land and Farming Company property will begin making its way through the review process this month with an expected vote from the Planning Commission.

The city planning staff will brief the City Council on the North Valencia Annexation Plan on Tuesday, the same night the Planning Commission will receive a draft ordinance and resolutions on the proposal.

The plan is noted mostly for a housing development called Lago de Valencia, which would include a man-made lake surrounded by upscale homes.

But the annexation area also includes several existing businesses in the Valencia Industrial Center and proposed retail centers and a dense cluster of condominiums, town homes and apartments off McBean Parkway near the River Oaks Center. The housing developments would ultimately add about 5,600 residents to the city.

The area is roughly bounded by Newhall Ranch Road and Magic Mountain Parkway, and the Golden State Freeway and Bouquet Canyon Road.

Council members have already been anticipating the annexation for several reasons. The proposal would extend city boundaries, considered a priority among the council. And it is the first development project being negotiated between the city and Newhall Land, which has traditionally worked with the county before annexing into the city.

Councilman Carl Boyer said he only sees advantages to working directly with Newhall Land, since the city has higher standards for roads, sidewalks and other amenities.

``I've always felt better if there was one standard for the area - one development standard,'' Boyer said. ``We have negotiated a little more open space and a little less development than would have existed.''

Still, Councilwoman Jill Klajic said she would like to see even more compromises made by the developer. Klajic said she is concerned about how the man-made lake will be filled and maintained over the years.

But more than that, she disagrees with the city's plan to buy the bottom of the Santa Clara River for $1.5 million so that Newhall Land can improve the city trail system.

``They should be doing that anyway. We shouldn't be paying them,'' Klajic said.

``Newhall Land is holding a huge club over our head, saying if you don't accept this, we'll go to the county. I don't want to be threatened into accepting a deal that's a bad deal.''

While Boyer said he would like to see less development in the valley, he added that property owners should be given certain rights.

``Developers have a right to develop their property,'' Boyer said. ``I'm happy that a portion of the lake front with be open to the public.''