County Legal Tab to Battle the Irvine Co.: $1.9 Million

It started with $250,000 a year and a half ago, money spent by the county on an outside law firm to handle a complex property tax fight against the Irvine Co.

Then the Board of Supervisors kicked in another $575,000. Last February the board put in $435,000 more. Now the county assessor’s office is seeking another $700,000 for the law firm of Pillsbury, Madison & Sutro, putting the bill past the $1.9-million mark.

Supervisors are scheduled to consider the request for funds at their meeting next Tuesday. Last February they at first balked at authorizing the extra money, but eventually voted reluctantly for the increase.

County Assessor Bradley L. Jacobs said the Irvine Co.’s appeal of its increased property tax bill is being heard by the county Assessment Appeals Board, a process likely to last at least another four to six months.

The county’s fight with the Irvine Co. dates back to July of 1984, when Jacobs’ office said the company’s landholdings in the county were worth more than $3 billion, not the previously assessed $1.1 billion.

That increased the company’s property taxes from $19 million to $51 million a year, and the firm appealed the increase to the Assessment Appeals Board.

For two years, the company has been paying the disputed amount into an impound account. The two sides reached agreement on the value of most of the company’s developed properties, including Fashion Island in Newport Beach, but not on the remaining property.