Homeowners Rebel Against Balboa Club Buildup Plan : Development: They say $50-million renovation would cost them their views and elevate noise levels. Council delays vote.

An overflow crowd of homeowners from the bluffs above the Balboa Bay Club turned up at City Hall on Monday night to protest a $50-million plan to rebuild the swank bay-front landmark that was once the roost of actor John Wayne.

The ambitious expansion plans call for a 300-room hotel--more than double its current size--a parking structure and 77% more square-footage than the 14-acre site on Coast Highway now has.

After nearly 3 1/2 hours of debate, Mayor Council sets fee for homeowners whose patios intrude into beach. Phil Sansone led a unanimous vote to postpone a decision on the project for two weeks.

“I’ve never heard so much disinformation about this project,” he said. “I don’t think the public really understands this.”

Balboa Bay officials say they need the expansion to accommodate the growing number of club activities. In addition, they say, the project will provide better use of their site and improve ocean views from the club.

The club’s renovation plan met with stinging opposition from about 200 area residents upset that the project will block their views and cause noise. Opponents say the new hotel, for example, will be 35 feet tall and 40 feet from their property lines.

“We the people expect our elected representatives on this council to represent us and not the selfish personal interests of the private Balboa Bay Club,” said Nicholas Yaru, who lives in the 1200 block of Kings Road, an area where residents are concerned their views would be blocked. “The deleterious effects of more traffic, noise and pollution are obviously negative.”

William Ray, chairman of the board of the Balboa Bay Club, said club representatives met with neighborhood organizations over the Fourth of July weekend in an effort to resolve their differences.

“We recognize that we have strong community support and we think the plan is an exceptionally good one,” Ray said before Monday’s public hearing.

Ray also explained that the Bay Club had proposed a recent change in its plan for a 300-room hotel for the development that would reduce the project’s impact on the Bayshores community. He said the club would be willing to reduce the number of hotel units by seven and provide a larger buffer zone between the development and the 250-unit Bayshores gated community.

Ray’s offer did not seem to impress most residents, who said the suggested changes would not affect the noise the project would generate.

“Are we going to have dancing under the stars? Are we going to have live rock bands? I ask that you withhold your vote on this project and take action for approval only when this is endorsed by the residents,” said Mary Peikert, a Kings Road resident.

However, some residents, including former Newport Beach Mayor Jackie Heather, declared that the Balboa Bay Club is an asset to the community.

“You are only hearing from part of Newport Beach tonight,” Heather said. “It is in our best interest to make this project viable and attractive. The Balboa Bay Club is our flagship; it’s our heritage.”

Some who came in support of the project wore their Balboa Bay Club jackets.

Most of the opposition was brought by the membership of two community groups: the Cliff Haven Community Assn. and the Bayshores Community Assn. Each group has about 250 members.

Al Beaudette, president of the Cliff Haven group, told the council that the project is too big. “This is not a quaint little bed-and-breakfast we’re talking about,” Beaudette said, drawing laughter from the audience. “This is a major resort hotel. We have no alternative but to oppose this plan in its entirety.”

Kevin Green, president of the Bayshores Community Assn., said the council must address other issues such as security, excessive lighting and the possibility of encroachment on the Bayshores community. “We feel this plan is grossly overintensified,” Green said.

The City Council was prepared for the large crowd and the possibility of heated discussion. In a prayer before the meeting, Councilwoman Evelyn R. Hart urged audience members to control their emotions. “We don’t want to pit one neighbor against the other,” Hart said in her prayer.

A major controversy over the club’s future surfaced in late 1989 when some residents and a couple of council members began questioning whether the city could legally renew its lease with the club without vote of the public.

The Balboa Bay Club entered its first 50-year agreement with the city in 1948, when the Coast Highway site was little more than a stretch of debris filled mud flats with docks and a few frame structures. The rent was $25,000 a year.

Since then, the grounds have been improved dramatically and include a huge swimming pool, clubhouse facilities, hotel accommodations, and a 145-unit apartment complex. Its membership roster includes many of the county’s most prominent celebrities, professionals and business people.

In 1986, the club negotiated a 12-year-lease extension after failing to get public support for another 50-year agreement. The current lease expires in 2011.

While leaving open the possibility of a citywide vote, city and club officials are planning to begin negotiations on a new 50-year lease this summer. Club managers have said they cannot get financing without a 50-year-lease.

Key Dates in Life of Balboa Bay Club

1928--James Irvine donates property to the city.

1948--City issues club 50-year lease on property.

1970--Public defeats a proposal to extend club lease from 50 years to 55 years.

1986--City Council votes to extend lease by 12 years.

1989--Before a packed City Council chamber, council members vote to begin talks on a new 50-year lease with the club. Club officials seeking the new lease to secure loans for proposed $50-million expansion.

1991--Planning Commission approves club’s plan for $50-million expansion to include a 300-room hotel and parking structure.

2011--Club lease with city expires.