Council, Newport named in suit

A Newport Beach environmental group on Friday sued Newport Beach and the City Council to challenge a multimillion dollar development agreement with the Irvine Co., court records show.

Newport Beach City Atty. Robin Clauson said she received a phone call Friday from the founder of the nonprofit group Defend the Bay Bob Caustin about the lawsuit, but she had received no more information on the legal action.

“I haven’t seen the lawsuit. I don’t know what they’re alleging is wrong,” Clauson said. “I haven’t received a notice letter, haven’t been served with a lawsuit.”

The environmental group filed a petition in Orange County Superior Court Friday to challenge the legality of the agreement. Caustin could not be immediately reached Friday evening.

The environmental activist has been an outspoken critic of the city’s $43-million development agreement with the Irvine Co. that would allow the company to build 430 apartments in Newport Center.

Newport Beach City Council approved the agreement in December to create a new planned community in Newport Center. Runoff from Newport Center drains into Newport Bay. Caustin told the Daily Pilot in November he believed environmental impact studies should be done in the area, before the agreement could be approved.

As part of the deal, zoning for the area would create a new planned community that merges two blocks of Newport Center, Fashion Island and San Joaquin Plaza to form North Newport Center Planned Community.

The deal includes about $43 million in development fees, road and park improvements, and other benefits from the Irvine Co. The development agreement also includes an option for Newport Beach to purchase property in the Newport Center block between Santa Rosa and San Nicholas drives for a new city hall at the city’s appraised price of about $7.7 million.

“It’s really difficult to comment on a filing that we haven’t yet seen,” said John Christensen, a spokesman for the Irvine Co. “However, if it’s true it clearly raises questions about the future of city hall.”

BRIANNA BAILEY may be reached at (714) 966-4625 or at brianna.bailey@latimes.com.