COUNCIL DECLINES ACTION ON PARK PROPOSED DEAL REMAINS ON TABLE.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - The City Council declined Tuesday to purchase 38 acres next to the city's Sports Complex, where it wants to build practice fields and parking lots, while preserving a portion of the hilly land in its natural state.

The deal for the land adjacent to the Aquatics Center remains on the table, officials said.

To buy the Canyon Country land, the City Council would use Santa Clarita's $1.5 million open space reserve fund, along with $2.5 million now slated to be used for improvements along Soledad Canyon Road and to construct a portion of Golden Valley Road.

The council members have acknowledged they might need to borrow money from the state to complete those projects if they buy the parkland.

Seven Canyon Country residents strongly urged the City Council to buy the parkland, saying their community needed it.

``I've been here for 24 years, and we're still waiting for a decent sized park,'' said resident Martha Morgan.

In addition, William S. Hart Union High School District Board Member Gloria Mercado told the council the district would welcome the city's purchase of the land.

``It's hard on our families not to have a park nearby,'' said resident Jay Kubena.

A Daily News analysis of the budget shows that the purchase of the needed parkland could force the city into deficit spending and deplete its reserves for the first time since its incorporation.

The 38-acre parcel is among the most expensive pieces of land ever purchased by the city, records show. The four owners of the land, which had been expected to become a business park, asked for $6.5 million, as is, or for $8.5 million, with improvements.

State law allows municipalities to keep property negotiations confidential. All officials involved declined to comment.

Before the council approved the budget in June, City Manager George Caravalho repeatedly advised the council members that the purchase would put too heavy a burden on the city's budget this year and in the future.

The city's ambitious capital improvement program, focused mainly on parks and roads, has drained $4.6 million from the city's reserve accounts over the last year, threatening officials' abilities to meet unforeseen costs.

The city's cash-strapped budget picture is further complicated by projections showing development-related revenues dropping in future years as the economy continues to slow.

City budget records show that the most significant financial impact of the purchase of the 38 acres would be ongoing maintenance and staffing costs, according to Steve Stark, the city's director of administrative services.

The City Council also on Tuesday put off acquiring 150 acres of open space in Placerita Canyon, near the Beazer Homes development west of the Circle J subdivision.

City officials had set aside $700,000 for that open space purchase in the 2001-2002 budget.

There is a deficit of parkland all over Santa Clarita, especially in Canyon Country.

``The city owes the residents of this part of city active, outdoor parkland,'' said Allan Cameron, a Santa Clarita resident and developer who pushed the council members to purchase the land.

Plans to turn over 400 acres of the nearby former Bermite explosives factory into open space have stalled because of several disputes over the clean up and development of the property.

Council members have credited the city's parks and recreation programs with keeping the crime rate low, improving the quality of life and setting Santa Clarita apart from other suburbs of Los Angeles and the San Fernando valley. Santa Clarita is among the safest cities in the nation, according to FBI data released in June.