Monorail at Airport Again Put ‘on Hold’ : Builder and County Reach Agreement, but Environmental Disputes Threaten Delays

Although the builder of a proposed airport monorail and the county have reached an operating agreement, environmental disputes still threaten to delay the project, officials said Monday.

Bob Young, president of McDonnell Douglas Realty Co., which has offered to build and operate the $3.5-million monorail at its own expense, said Monday that his company would pay the county 10% of ticket revenues under an operating agreement reached recently.

However, Young said new objections from Newport Beach and an environmental group have once again threatened to delay the project, so he considers it to be “on hold.”

The operating agreement anticipates a ticket price of 50 cents on the half-mile loop linking John Wayne Airport with twin, 23-story office and residential towers planned by McDonnell Douglas across the street, Young said.

The monorail is viewed as a prototype for others proposed in Long Beach and other cities.

Earlier this year, McDonnell Douglas Realty refused to pay for the footings for the elevated track next to the new passenger terminal being built at the airport because details of an operating agreement--including a percentage of fare-box income for the county--had not been worked out.

A study had shown that any restaurants or vendor services similar to those offered at the airport could hurt airport revenues needed to repay airport construction bonds.

The county Airport Commission is scheduled to consider the proposed monorail agreement Wednesday night. If approved, the County Board of Supervisors would vote on the agreement the next week.

“All our ducks are in line. . . . We’re all set to go,” said Tom Mathews, executive assistant to Board of Supervisors Chairman Thomas F. Riley. “I have to give credit to everyone who worked on this because it has been a thorny issue.”

However, Young of McDonnell Douglas was not so sure Monday that all is well with the project. He cited Newport Beach’s objections to a plan by Irvine officials to give so-called increased density bonuses to developers in the Irvine Business Center who decide to tie their new projects into a monorail system.

“The project is on hold,” said Young, as a result of letters filed by Newport Beach and Stop Polluting Our Newport, an environmental group. The letters generally say Irvine has failed to comply with certain planning provisions of state law because adoption of the bonus policy must be reflected in changes to the city’s general plan and its traffic circulation element and because environmental documentation is needed to accomplish such changes.

Newport Beach City Manager Robert L. Wynn said Monday that his city has not formally appealed the Irvine City Council’s adoption of the density bonus policy and remains in favor of the monorail.

“We just wrote a letter to Irvine asking them to do an environmental impact report on the (density bonus) ordinance,” Wynn said. “We think they ought to know what effect a monorail has on street traffic, that’s all. If they decide not to do (the impact report), then that’s their decision. Our (Newport Beach) City Council hasn’t decided to go any further with it.”

Irvine Mayor Larry Agran said the ordinance granting density bonuses for ties to a monorail system was passed last week but was not specific to any project.

He added that the density bonuses would be subject to formulas “that have not been worked out” and to the city’s regular development application process.

Although the density bonus policy would benefit developers who successfully apply and is not aimed at a particular site, Young said: “It was done to help me get my office project the densities it needs. So you can’t blame me if I’m a little cynical about Newport Beach’s intentions.”

Under a previous agreement among the county, Irvine and Newport Beach, the McDonnell Douglas Plaza office complex may not offer airport terminal-type services--such as car rental, baggage handling or ticketing--to monorail patrons.