Jan. 17--What had been a popular playground for polo players in the 1920s and a Christmas-themed amusement park in the 1970s could soon become a new residential neighborhood near Carbonero Creek on the north end of Scotts Valley.

Lennar Communities, one of the nation's largest home developers, is looking to build 40 single-family homes on 13 acres of the 113-acre parcel known as the Polo Ranch -- one of the last large open spaces left in the city.

The rest of the land would be preserved as open space, including some walking trails and picnic tables.

Lennar bought the Polo Ranch property from software company Borland in 1998 and tossed around various housing development proposals over the years, though the site has been dormant for the past decade and Lennar didn't seek permits from the city until now.

Around 1990, another developer had suggested building 157 homes at the old Polo Ranch, but was met with stiff opposition from the community over a rare pink wildflower found on the site.

The Scotts Valley Planning Commission recommended approval of the 40-unit Lennar project in November, and the City Council is expected to hold a public hearing and consider whether to grant permits within the next couple of months, city officials said Friday.

"I'm still agnostic, if you will, that the project will come before us," Mayor Randy Johnson said. "I'll believe it when I see it. It is interesting to be moving forward when everything is retracting."

Despite his skepticism, due mostly to an overall unstable housing market and weak economy, Johnson said the housing project would be more environmentally friendly now, including a range of green building standards, than what was proposed 10 or 20 years ago.

Making room for the houses means moving the historic Polo Ranch barn, which was built by famed architect William Wurster for golfer Marion Hollins. The barn is falling apart and surrounded by a chain-link fence and barbed wire.

Lennar has proposed dedicating the barn to the city and relocating it about 250 feet from where it sits now, city planner Michelle Fodge said.

City officials have not said how the barn would be put to public use, as it's been estimated to cost several million dollars to give it a modern look, install utilities and bring the historic landmark up to ADA standards.

Johnson said the city could not afford to spend public money on renovating the barn.

The housing project requires Lennar to build six below-market priced homes, which the developer has proposed putting on Scotts Valley Drive near Erba Lane with help from Habitat for Humanity, Johnson said.

The Polo Ranch property, located at the end of Santa's Village Road and marked with "no trespassing" signs, is considered a popular spot for residents to walk on the untraveled dirt road and enjoy the scenery.

"There are so few areas that are untouched where you can walk a dog," Scotts Valley resident Janice Lages said while walking her dog Cynder on Friday morning. "My hope is the economy is so bad that nobody's going to want to build anything."

Lennar representative Marshall Ames declined Friday to provide an update or comment on the Polo Ranch development proposal.

Contact Shanna McCord at 429-2401 or smccord@santacruzsentinel.com.

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