Signal Hill : Council Rejects 798-Unit Residential Plan for Hilltop

The Signal Hill City Council on Tuesday drew a line in the sand in its months-long feud with an Irvine developer, rejecting a plan to build 798 hilltop residences in favor of a scaled-down version the development company has already said it does not want to build.

After five hours of debate, the council turned back Southwest Diversified’s 798-unit proposal and agreed to allow only 652 single-family homes and condominiums. Furthermore, the city said it would negotiate that plan with Southwest only if the developer agrees by next Friday to drop a lawsuit pending against the city.

“It’s important to us to have a hilltop development and we really want to negotiate, but we can’t do it with a lawsuit hanging over our heads,” City Manager Doug LaBelle said.

The developer contends that the project must have at least 798 units to be profitable. When controlled-growth proponents in the city countered that such a development was too large, Southwest sued.

If agreement cannot be reached on the size of the project, Southwest has the right to abandon it and build 450 units that company officials say would have fewer amenities and do less to clean up hilltop blight.