Newport leaders consider further expansion

June Casagrande

How can the city gain control of $30 million in redevelopment

funds set aside for Santa Ana Heights?

Will annexing the Santa Ana Country Club and surrounding areas

give Newport Beach further power to rein in John Wayne Airport

expansion? Will residents in unincorporated areas pay for the entire

cost of a fire station to serve them and other neighborhoods already

in Newport Beach? How much sales tax revenue is generated in West

Santa Ana Heights?

No one knows, but city officials plan to find out.

City Council members Tuesday took their first and biggest step

toward annexing county areas that were previously slated to become

part of Costa Mesa and that are collectively called Area 7.

In a council study session, members asked staff to put the matter

on a regular council agenda, to vote whether to study the financial

pros and cons of annexing the area, particularly the leverage it

could provide in the battle against airport expansion.

“I’m here to tell you tonight why annexation of all and only all

of Area 7 is a win-win,” said Paul Watkins, representing residents

and the country club. “The answer is simple and it’s spelled: John

Wayne Airport. We would form an alliance and buffer against further

John Wayne Airport expansion.”

West Santa Ana Heights, the country club and a residential area

south of Mesa Drive have all been pushing for years to don a Newport

Beach address.

They’ve pushed so hard that the county has all but given up on its

original plan to annex West Santa Ana Heights to Costa Mesa. The

residents in the area south of Mesa Drive effected the same result on

their own: A widespread protest campaign against annexation to Costa

Mesa killed an annexation application in September.

Santa Ana Heights is in a redevelopment area -- increases in

property taxes there will be used to pay back the redevelopment

agency for years to come. The area, the eastern half of which has

already been approved for annexation to Newport Beach, has $30

million of redevelopment money in the bank.

“It’s certainly financially interesting,” Assistant City Manager

Dave Kiff said.

At the suggestion of Councilman Don Webb, the city will consider

creating its own redevelopment agency to take over the matter and to

take control of the bank account. If council members vote yes, a

fiscal analysis will show the bottom line of annexation.

“I think you’ve taken a giant step forward,” Mayor Steve Bromberg

told Watkins.

* JUNE CASAGRANDE covers Newport Beach and John Wayne Airport.

She may be reached at (949) 574-4232 or by e-mail at

june.casagrande@latimes.com.