Underground up for talks

Balboa Island resident Bob Levin loves the idea of beautifying his neighborhood by getting rid of unsightly utility poles, but he worries about how much the project will cost him and his neighbors.

“In this economy, it’s a tough one for a lot of people,” Levin said.

Levin, who has lived on the island since 1988, could stand to pay about $16,000 for the city to create a $20-million assessment district on Balboa Island and underground utilities there.

The multiyear construction project that would tear up streets and alleyways on Balboa Island could get underway as early as July if island property owners vote for the project in April.

The assessment district would be the largest of its kind in the city’s history and would affect about 1,200 property owners, Mayor Ed Selich said.

City officials estimate Balboa Island homeowners will pay anywhere from about $5,000 to $35,500 apiece for the project, depending on the size of their lot. Property owners can elect to pay the money over the course of 15 years with their annual property taxes.

About 60% of Balboa Island property owners petitioned the city to create the assessment district and underground utilities there in 2004.

But the national economy has taken a nose dive since then, Levin said.

“Fifteen years from now I’m going to be 92, and I’ve got basically a fixed income,” Levin said. “I don’t quite think people on this island realized what they were getting into.”

The project could be a lot cheaper for property owners if work begins this year, while construction prices are low because of a depressed building market, Selich said.

“The cost issue is a double-edged sword,” Selich said. “Is it unwise to go ahead with this in these economic times because things are bad, or is this really the time to build because construction prices are low?”

Like many Balboa Island homeowners, resident Joan Gregorius said she’s still on the fence about undergrounding.

“I’d love to have it, but it’s going to be a lot of money,” Gregorius said, who has lived in her bay-front home for 37 years.

She estimates the project would cost her $1,100 over the course of 15 years added to her property tax bill.

A public informational meeting on the assessment district is slated for 6:30 p.m. March 31 in Council Chambers at Newport Beach City Hall. Balboa island residents will take a vote on the undergrounding April 28.

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