That's the one I remember too, CI. It went out of business while I was still in my teens I believe.
My best memories of it were the teacup rides and feeling like my head was going to be ripped from my shoulders by the centrifical force from spinning around in that cup for so long and so fast!
Looks like there is indeed a Santa's Village near Lake Arrowhead. Here's a website with lots of pictures of it.
http://www.kenlarson.net/code/photsv.htm
And I just found a website with the history of the Scotts Valley Santa's Village. Ahhhh, the memories. I miss places like that and the old Frontier Village. Remember that one too, CI?
http://www.santasvillage.net/history.htm