The Banning Ranch Purchase

Newport Beach City Council members are expected to establish a committee tonight to oversee the appraisal process for Banning Ranch. If the city purchases the land, it would be the largest piece of undeveloped property in the city’s coffer, but such a sale could be years away.

Environmentalists want to preserve it. Developers want to build more than 1,300 units of housing and a hotel on the land.

Naming the price of the more than 400-acre area is the first step for the city to purchase the land, which is owned today by the gas and oil company Aera Energy.

“By end of year we’re going to know how much it’s going to cost and what kind of funding availability there is,” Mayor Ed Selich said.

The city must eventually determine whether to buy the land and preserve it, or allow parts of it to be developed for housing, shopping and hotels.

About 53 acres of Banning Ranch lies within the city limits. Although the rest of the land is in the county’s jurisdiction, Newport Beach maintains a sphere of influence over the area, which stretches along the Santa Ana River and West Coast Highway.

Money to purchase the land and preserve it would likely come from several different sources, including private foundations and bonds, Selich said.

At the same time, the private management team that oversees Banning Ranch, Newport Banning Ranch LLC, is already hammering out plans to develop housing, a hotel and shopping in the area. Tentative plans would still preserve much of the area’s open space. The management group hopes to unveil plans to the city late this spring.

“They spend a lot of time and its been very considerate of all the parties,” said John Moorlach, chairman of the Orange County Board of Supervisors. “It’s team ball and I’m very pleased with their approach.”

It will be difficult for Newport Beach to raise the millions the land is likely worth to purchase it and preserve it before development plans take shape, but the city will win in either scenario, because some of the land will be preserved either way, Selich said.

“I think it would be nice if we could preserve it all as open space. We’re committed to make our best effort to go out and find the money,” Selich said.

“Under either scenario we’re preserving most of it as open space.”

A representative from Newport Banning Ranch LLC said the group is committed to working together with the city.

“Our intent at this point is to work with the city on a collaborative scenario that is good for everyone,” said George Basye, who represents the owners of the land.

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