LAGUNA Hills – Mayor Barbara Kogerman steered the claw of the bulldozer to grab the Laguna Hills Mall sign and give it a good tug.

The faded blue metal sign marking South County’s first shopping mall toppled and then crumbled to the ground, officially marking the end of an era as city officials and community stakeholders clapped and cheered.

“That was fun,” Kogerman said, climbing down from the bulldozer. “I’m happy to see the symbol of the old mall transition to the new mall. This is the highlight of my year as mayor.”

The destruction Friday, followed by a groundbreaking, was the first step in creating Five Lagunas – a 926,000-square-foot urban village that city officials say will be a community gathering spot and countywide destination.

Plans include a pedestrian-friendly promenade, outdoor dining, new department store facades, redesigned mall interior and ample parking. There will also be a 14-screen luxury cinema, fitness center and park with a 1-acre lake.

The first stores are expected to open in summer 2018. During the project’s second phase, developers will build nearly 1,000 luxury apartments.

The mall’s name gives a nod to Laguna Hills and surrounding communities: Laguna Beach, Laguna Niguel, Laguna Canyon and Laguna Woods.

“I believe Five Lagunas will benefit not only Laguna Hills but the entire area,” Councilman Dore Gilbert said Friday. “It will enhance the image of the city in many ways. It will provide jobs, walk-to-work environment, needed housing, desirable restaurants and a new, vibrant community gathering space.”

Laguna Hills Mall was built in 1973 as part of the build-out of the inland South County cities but in recent years has grown tired. There have been only minor upgrades, which have left the mall with high vacancy rates. There are just 40 retailers inside the aging buildings.

“This will be nothing like the Irvine Spectrum or the Shops at Mission Viejo,” Kogerman said. “Not that this is a competition, but this will be a unique and wonderful place to be.”

The mall was purchased by Merlone Geier Partners, a real estate investment company, from Simon Properties in May 2013. The Five Lagunas project was approved by the City Council on March 22 after three years of discussion.

“I didn’t think it would take 15 years,” City Manager Bruce Channing said, recalling how plans to reinvent the city’s core began in the late 1990s.

“We knew then already that the old-style malls were out of vogue and that we were losing out to newer developments in the surrounding area,” Channing said. “We also didn’t realize the internet would have such an impact on shopping. This design really catches up with time and the expectations of the consumer.”

Current anchors J.C. Penney, Macy’s and Nordstrom Rack will remain in the new development. BJ’s Restaurant, California Pizza Kitchen, King’s Fish House and Ruby’s Diner have signed on as continuing tenants.

The construction phase is expected to create more than 2,400 full-time jobs. Once the project is built out, there will be 186 businesses with 2,000 permanent jobs, Channing said. The project is expected to generate $2.5 million in tax revenue for the city and contribute $4 million to the Saddleback Valley Unified School District.

More than $1 million will be spent on art, and the nearly 1,000 apartments are expected to generate $12 million in city improvements, Channing said.

For officials at the nearby Saddleback Memorial Medical Center, the plan for the new urban village was exciting news.

“This will make the community an even more attractive place to live, work, shop and be entertained,” said Steve Geidt, Saddleback Memorial CEO. “It’s a giant step in moving forward the city’s vision of an urban village to improve the quality of life.”

Contact the writer: 714-796-2254 or eritchie@ocregister.com or on Twitter:@lagunaini