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Newport and Irvine Co. part ways

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The Newport Beach City Council on Tuesday opted not to extend a development agreement with the Irvine Co., giving the city the option to change the way the upscale Newport Coast and Newport Ridge are continuing to develop.

The city struck a tough bargain that the major land developer declined to accept: a one-time, $5-million renewal fee to continue the arrangement. The Irvine Co. said no, and the council said no to an extension.

The agreement, first reached in 2001 with a proposed extension through 2032, maintains the Irvine Co.’s right to develop the areas under plans dating to the 1980s. The agreement included a provision requiring that the city’s general plan and zoning remain identical to the county’s designation at the time of the annexation of the Newport Coast area by the city in 2001, according to city staff.

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When the agreement expires in January, the city could amend its general plan and zoning documents related to land use and building in Newport Ridge and Newport Coast, since it will no longer be bound by the development agreement with the Irvine Co.

This means the City Council could take steps in the future to increase or decrease the amount of development and alter the types of projects allowed in the areas, although city staff said there are currently no plans to make any changes.

Under the previously approved plans, Newport Ridge is permitted for up to 363 more homes and an additional 37,684 square feet of commercial space.

Newport Coast could have up to 422 more homes, 1,046 more hotel or resort rooms and about 1.2 million square feet of new commercial space, most of which would come with the construction of another hotel or resort.

The Irvine Co. did not agree during Tuesday’s meeting on a staff recommendation that the real estate development company pay the $5-million renewal fee and asked the council to strike it from the agreement. A portion of the funds would have gone toward city cultural facilities and the rest into the general fund.

A letter to the city by a planning firm hired by the Irvine Co. noted that the company has kept up many of its public benefit obligations, including giving $422,500 for a library and $250,000 for the Newport Coast fire station and dedicating nearly 2,700 acres as wilderness open space.

However, council members were not amenable to removing the proposed one-time fee and instead decided not to vote on extending the agreement, allowing it to expire instead.

hannah.fry@latimes.com

Twitter: @HannahFryTCN

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