Deadline extension expected

Deirdre Newman

The City Council is set to automatically approve extending the

deadline for the developer of the 1901 Newport Blvd. condominium

project to drop its lawsuit against the city.

Rutter Development sued the city in August, mainly claiming a

rehearing on its project was granted illegally without the required

presentation of new evidence.

That rehearing finally took place in January and a slightly

scaled-down version of the project was approved. One of the

conditions called for the approval to be voided if Rutter didn’t

dismiss its lawsuit within 105 days after the approval went into

effect.

That deadline expires Monday. So Acting City Atty. Tom Wood has

placed a request for a two-month extension on the council’s Monday

consent calendar -- its list of routine items that typically pass

with little or no discussion -- to give the parties more time to

reach an affordable housing agreement, which is required by the

project.

That request isn’t sitting well with some residents, who say they

don’t see the need for the city to accommodate Rutter with an

extension.

“I don’t feel the city is under any obligation to extend the

deadline, unless there’s some compelling interest or benefit to the

city to extend it,” said Terry Shaw, who lives across the street from

the potential project. “I would like the city to act in the best

interests of the citizens at large.”

David Eadie, Rutter’s CEO, did not return a call for comment.

As part of the project, Rutter is required to provide 12

affordable housing units -- seven for moderate-income and five for

very low-income. The Redevelopment Agency -- the council working

under a different name -- offered to provide the five low-income

units, since it is difficult to do that in an ownership situation

like a condo, said Planning and Development Manager Mike Robinson.

These units will probably be provided by rehabilitating existing

rental units, Robinson added.

The agreement will set the legal requirements for both types of

affordable housing units.

“We’re just down to negotiating the legal points regarding

insurance agreements from the developer, parking requirements, how

they’ll be divided between the condos and the office building --

we’re just down to the nitty-gritty details,” Robinson said.

The project originally called for four four-story buildings in the

parking lot of the Spanish mission-style property. The revised

version that was approved calls for decreasing the building height of

the project along Bernard Street to three stories. As part of the

approval, the council will pay Rutter a subsidy of $1.5 million that can only be used for the affordable housing part of the project. This

was an enticement for Rutter to lower the density.

Wood said he suggested a two-month extension since the

Redevelopment Agency will consider the agreement in June.

* DEIRDRE NEWMAN covers Costa Mesa. She may be reached at (949)

574-4221 or by e-mail at deirdre.newman@latimes.com.