Civic center may cost city $50 million

A new civic center, including a city hall, a fire station and a

parking garage, could cost the city of Newport Beach nearly $50

million, the City Council heard Tuesday.

An earlier estimate for the project was $41.5 million.

Tuesday’s session was the second of three meetings that has the

civic center project on the agenda; the third is scheduled for Sept.

13, and a final vote is set for Oct. 11.

At press time, the council had not voted on changes to the plan

that would increase the project’s cost to $49.7 million. Those

changes -- which were recommended by a council subcommittee --

include designing the new city hall and parking structure so they

could be expanded in the future, as well as alterations to improve

the hall’s appearance.

A 2003 study of the existing City Hall said it was overcrowded and

inefficient; the study pointed out that the buildings don’t meet

earthquake standards or requirements to accommodate people with

disabilities.

In May the council agreed to move ahead with a $19.7-million city

hall that replaces about 90% of the current facilities, including the

council chambers. If approved, the project will replace the fire

station adjacent to City Hall and will add a parking garage.

Potentially complicating the council’s decision is a residents

group’s ballot proposal that would require a public vote on any

projects that the city funds with borrowed money.

Dolores Otting, a member of the residents group, Newporters for

Responsible Government, said she believes the project will end up

costing $100 million. Expenses -- such as financial advising,

interest on borrowed money and moving services -- aren’t part of the

estimated building costs, she said.

“When other people go buy a house, they look at a budget,” Otting

said.

City officials have suggested paying for the new civic center with

certificates of participation, which are similar to bonds but don’t

cause residents’ city tax bills to go up. The city charter requires

approval from two-thirds of city voters to sell bonds because paying

back bonds boosts homeowners’ taxes.

The ballot initiative proposed by Newporters for Responsible

Government is pending. If it qualifies, it could appear on the

November 2006 ballot or in a special election.

* ALICIA ROBINSON may be reached at (714) 966-4626 or

o7alicia.robinson@latimes.comf7.