NEWPORT BEACH : Hearings to Begin on Upper Bay Plan

Nearly 1,000 new homes and condominiums, a hotel and office buildings would be built in the open space around Upper Newport Bay, under a massive development scenario unveiled by the Irvine Co.

The long-awaited environmental review of the project, planned for 11 empty parcels of company-owned land, is being circulated this week. The Planning Commission, which originally planned to begin a public hearing Thursday, will start hearings June 18.

In all, the 240-plus-acre project would set aside 140 acres for open space and call for the construction of nearly 1,000 new homes and condominiums, a 68-room hotel and about 100,000 square feet of commercial office space. It may also include an affordable senior housing complex, health center and fire station.

In return, the company would give the city about $21 million to build and improve roads, of which about $12 million is a specially arranged, interest-free loan that would be erased if unpaid after 20 years. Additionally, the company would give the city 140 acres of land for open space.

The company would have five years to begin development, or the city could cancel the agreement.

“We’ve had many discussions with the community to build a consensus of the plan,” Thomas O. Redwitz, a vice president of land development for the company, said during a media briefing Tuesday. “These plans are a reflection of many, many meetings with the community groups. . . . The fundamental goal is to build a consensus.”

The company’s plans have been two years in the making and contain its final projects in Newport Beach.

Community groups are beginning to voice concerns about the plan. Residents are splintered into various factions, ranging from the Newport Conservancy, which is raising funds to buy the two biggest parcels, to those who want to prevent development on smaller parcels near specific neighborhoods. Still others oppose new roads.

The biggest community group, the Newport Conservancy, has been given 12 to 18 months by the Irvine Co. to raise the $80 million needed to buy the land it wants to preserve. The conservancy is campaigning for funds from residents and public agencies and has been endorsed by a number of local homeowners associations.

“If we can’t save the properties, we’ll be missing something that’s of great consequence to Upper Newport Bay,” said Councilwoman Jean H. Watt, who is president of the conservancy. “We’ll be missing a very important milestone in the city’s history.”

Upper Newport Bay is known as one of the state’s largest coastal wetlands, a main migratory route for birds and an area rich in archeological history. A city-commissioned survey earlier this year showed just under 50% of the respondents were interested in buying the land, which was considered inadequate support for a November ballot measure.

Company officials say they will gladly sell the two properties to the residents but argue that the company cannot keep the offer on the table indefinitely.

“We are sincere. If the city or community wants to buy it, that’s great,” said Raymond L. Watson, vice chairman of the Irvine Co. “Our concern is that they’ll take 10 years. What happens is that it holds the whole agreement up.”

Company officials say the project benefits the city, which would receive funds for public works projects in a lump sum. Plus, the company is donating more than half of its property to the city for open space, parkland and public service buildings, they said.

The plan calls for about 370 townhomes or condominiums to be built on the Upper Castaways and Newporter North--parcels the conservancy wants to buy. About 350 single-family homes would be built on two other parcels along Jamboree Road, and about 245 senior housing units are planned for a plot within Newport Center. The hotel would be built on land near an existing hotel off Jamboree Road, and the office space would go on land at the junction of Coast Highway and Newport Center Drive.