CITIES TUSSLE OVER ANNEXATION SANTA CLARITA WANTS TO NAB INDUSTRIAL PARK.

Byline: Susan Abram Staff Writer

CASTAIC - Santa Clarita city leaders and the Castaic Town Council are preparing to discuss at an upcoming public meeting why each side deserves to obtain a 1,600-acre industrial park in unincorporated Los Angeles County.

Santa Clarita's possible annexation of the Valencia Commerce Center - one of the Southland's largest industrial parks just west of the Golden State Freeway - has angered Castaic leaders who say they have been largely kept in the dark about the city's plans.

Castaic residents claim the business park, north of Highway 126, as their own, and say it would be a key tax base if the Castaic area ever incorporated.

John Kunak of the Castaic Town Council, which advises the county Board of Supervisors on local issues, said he has been disenchanted by the way Santa Clarita leaders have pursued the annexation process.

``We will finally be getting information, but they still haven't come to us at all,'' Kunak said. ``We still don't know what all the issues are. There's the potential that Castaic may want to incorporate and that's the question we're looking into. We, the town council, are upset that this is going on without any information.''

Santa Clarita officials say they are pushing for annexation because tenants of the industrial park would benefit from lower taxes under Santa Clarita government - in particular, freedom from a 5 percent utility tax levied outside city limits in the county.

Both the Santa Clarita Valley Chamber of Commerce and the Valley Industrial Association have announced they would back city annexation.

Santa Clarita Mayor Bob Kellar and City Manager Ken Pulskamp plan to discuss the issue with the Castaic Town Council on Oct. 20.

``We think it makes sense to have this area of business in our city,'' said Santa Clarita spokeswoman Gail Ortiz. ``We have concerns of a new city forming that could bring uncomfortable competition, such as with Palmdale and Lancaster. We think it makes sense to have one city.''

Ortiz said some commerce center tenants who have attend informational meetings have been supportive.

``We also believe it's a win-win all around,'' Ortiz said. ``They will receive a higher level of police services.''

Within Santa Clarita, there are 15 patrol cars day and night at any given time, versus within unincorporated Los Angeles County, Ortiz said.

Santa Clarita leaders refute Castaic's charges that the city's tax revenue will increase. Ortiz said the city will likely lose $250,000 annually, but the loss will balance out in the long term, she said.

Beth Shott, a Valencia Commerce Center tenant and co-owner of McGregor- Shott, a graphic design and advertising agency, said what she has heard so far from Santa Clarita sounds appealing.

``I think it's a very good idea financially for business owners,'' she said. ``It's good as far as the amenities the city offers. More businesses move in here, and if they can benefit from the same thing that the city's businesses benefit from, then it's an attraction.''

Meanwhile, Los Angeles County officials said they are monitoring the discussions.

Susan Abram, [phone]

susan.abram(at)dailynews.com