Appeals court upholds approval on 4400 Von Karman project

The state’s 4th District Court of Appeals has upheld a 2021 decision by the Newport Beach City Council to approve a development project that would add 312 housing units to a city on the hook for 4,834 housing units within the next decade.

The approved project is the 4400 Von Karman development proposed by developer Picerne Group. That firm also operates One Uptown Newport, which opened in 2019. The Von Karman development is bordered by Von Karman Avenue and Birch Street. Thirteen of its units would be allotted for low-income or affordable housing. The five-story development would also include a free-standing parking garage with 284 spaces and a 1-acre public park.

In a lawsuit filed in February 2021 opposing the City Council’s approval of the development, Olen Properties, which owns property at 4910 Birch Street, claimed the city failed “to conduct proper environmental review” for the project, according to court documents.

The project is to be built in the Koll Center, zoned for mixed use, on an existing surface-level parking lot that currently is used by the Koll Center’s commercial tenants. To comply with state environmental law, the city obtained an addendum to an existing environmental impact report completed in 2006 as part of its general plan update.

Olen Properties argues the city was negligent and that the project is being built “despite numerous significant environmental impacts and despite the complete incompatibility of the project with the surrounding uses and surrounding community.”

Attorneys for Olen contended that developers sought and received approvals to build the project on what Olen argues is existing common area of the Koll Center, which is owned in part by Olen, and did not seek its expressed permission to do so.

“This is the story of a developer swiftly and improperly pushing through the approval process a significant, environmentally impactful project to avoid public scrutiny and comment,” the complaint reads. “Attempting to plop a huge residential structure into the middle of an existing and vibrant business park, [TPG (KCN) Acquisition, which is affiliated with the Picerne Group] avoided the legal requirement to prepare an environmental impact report under CEQA.”

In April 2022, the suit was denied by Orange County Superior Court Judge William Claster. Attorneys contended that the court erred in its judgment and in May of that year announced they would file an appeal.

In his opinion published on July 7, 4th District Court of Appeals Justice Maurice Sanchez denied and addressed Olen’s allegations of traffic conditions and hazardous materials in addition to other causes for concern its attorneys listed.

In a request for comment on Thursday, city officials said that they were “pleased with the court’s decision.”