Irvine Co. cancellation a bad sign for city?

Noaki Schwartz

NEWPORT BEACH -- Proponents of the so-called Greenlight initiative may

see the cancellation of Newport Center’s expansion plans as a major

victory, but business leaders say it’s a foreboding omen.

“I think it’s terrible,” Newport Chamber of Commerce president Richard

Luehrs said of the Irvine Co.’s decision to scuttle its plans. “We

suspected that in the face of this initiative.”

City business leaders see this action as a gateway to possible economic

problems in the future. They are concerned that the measure will diminish

the city’s selection of potential developments and say it could have an

effect on its future competitive edge. And, with the recently released

five-year financial forecast, the city will need more money in the

future.

Still, the Greenlight group is basking in the glow of what it considers a

point in its favor.

“We see this as a Greenlight victory,” said spokesman Phil Arst. “It’s

the first step in achieving planned, balanced growth in the city.”

The county’s largest developer on Thursday canceled its plans to expand

Newport Center. The plan included two six-story buildings, remodeling

parts of Fashion Island and constructing a 150-unit apartment complex, as

well as a child-care and adult center on Avocado Avenue. The entire

project was lumped together and counted as one general plan amendment.

In a letter to Newport Beach Mayor John Noyes, Irvine Co. Executive Vice

President Gary H. Hunt wrote that the measure would add too much

uncertainty to an expensive and time-consuming planning process.

Arst has a different take on Hunt’s letter.

“We think the Irvine Co. decision is a positive one for the city,” Arst

said. “I think the Irvine Co. has wisely removed themselves from being

the focal point for Greenlight.”

The lessening of the city’s development options is what supporters of the

Protect From Traffic and Density Initiative hope for.

The measure, which will appear on the November ballot, proposes to let

residents vote on developments that would require a major general plan

amendment.

However, the initiative is written in such a way that community members

could have to go to the polls more often than originally anticipated.

Many opponents fear the measure will scare off a number of potential

developers because it will tack on the extra expense of a public vote

even after it has been approved by the City Council and the Planning

Commission.

“It adds such a level of uncertainty,” Kranhold said. “We’re not willing

to proceed in that environment -- to spend all that money and at the end,

it will come down to a political campaign [if the measure passes].”

Lisa Reedy, who represents building owners and businesses with the

Newport Center Association, also added that the city needs the buildings

lost through the Irvine Co.’s withdrawal.

Citing lack of space and size, she said the center had lost “excellent

tenants,” such as Price Waterhouse.

“I think this is a huge detriment to the city,” she said, adding that

nearly 20% of the $4.4 million in sales tax revenue from Fashion Island

comes from Newport Center office workers.