Another development pulls out of Newport Center

Noaki Schwartz

NEWPORT BEACH -- Apparently following the lead of the Irvine Co., one of

the three remaining property owners with a development proposal for

Newport Center has pulled out.

In a surprising move last Thursday, Executive Vice President Gary H. Hunt

withdrew the Irvine Co.’s plans to expand Newport Center. Hunt wrote in a

letter to the mayor that the so-called Greenlight initiative added too

much uncertainty to an already time-consuming and expensive city planning

process.

After a meeting with city officials the next day, the State Teachers

Retirement System announced plans to do the same. The group had planned

an office building for the site, but withdrew after the Irvine Co.’s

move. Planning Director Patty Temple said the city expects to receive a

formal letter this week.

The Protect From Traffic and Density initiative seeks to give residents

the power to vote on developments that would require a “major” general

plan amendment. “Major” is defined as creating more than 100 peak-hour

car trips, more than 100 homes or more than 40,000 square feet of floor

area over what the city’s general plan allows. Residents will decide on

the matter in November, when they vote in the general election.

Mark Billeci, spokesman for the teachers group, could not be reached for

comment.

The original plan linked all four businesses into one application. The

development called for remodeling portions of Fashion Island and building

two six-story buildings, a 150-unit apartment complex and a center for

the care of children and adults on Avocado Avenue. The various applicants

were lumped together and the proposal would have required one general

plan amendment.

Local business leaders said they weren’t surprised by the latest

development. Chamber of Commerce President Richard Luehrs repeated his

earlier comments about the Irvine Co.’s withdrawal, saying he was

disappointed by the effect the slow-growth initiative was already having

on the city’s choice of development proposals.

“We need investment to continue the economic prosperity we’ve enjoyed,”

he said. “In the short term, it won’t have too much impact. It’s the long

term I’m concerned about.”

But organizers of Greenlight -- the group of community activists who

drafted the measure -- see these events as their first taste of victory.

The developments proposed for the Newport Center site were primarily

office buildings, which Greenlight said are only good for more traffic --

the main target of its measure.

Others argue that the people who work in these buildings are responsible

for nearly 20% of the $4.4 million in annual sales tax revenue from

Fashion Island.

The measure also would cause too much “uncertainty” late in the planning

process, Hunt said in his letter. After spending a good deal of time and

money at each stage of approvals, to then deal with a political campaign,

is simply too risky, said Irvine Co. spokesman Paul Kranhold.

Given the uncertain atmosphere, Pacific Life Insurance, another of the

original applicants, is undecided on its position. Tom Mays, vice

president of government relations, said the company will continue to work

with city officials and make a decision by next week.