IRVINE : City, UCI Agree on Development Pact

The city and UC Irvine have agreed to terms of a contract that would allow the university to develop its North Campus property with office buildings and apartments in exchange for paying the city almost $15 million for traffic improvements.

City and university officials agreed to the contract Tuesday, subject to approval by the University of California Board of Regents, to avoid having to answer the sticky question of whether a state entity, such as the university, is exempt from city regulations when it seeks for-profit development. Normally, state entities are exempt from city land-use laws.

UCI hopes to lease 49 acres of its North Campus to developers in order to bring in more money for the university, said Joseph DiMento, UCI’s assistant executive vice chancellor of land management. Once the proposed offices, retail stores and 300 apartments are built, the university should gain about $2 million a year, DiMento said.

The university would not sell the land but would lease it for terms of 65 years or more, he said. Building on the land isn’t expected to be completed for at least 10 years.

The development agreement that the City Council unanimously approved Tuesday gives the university at least 15 years to attract developers to build on the North Campus site. In return, the university will pay $14.85 million over time for traffic improvements required for both the North Campus development and overall university growth, DiMento said.

Not only will the university gain income and be able to lease space for research and development and more housing close to the university, DiMento said, the city will benefit with more jobs and additional revenue.

The agreement “demonstrated at its best the way the city and university can work together to bring local and regional benefits,” he said.

The university and city have been working on the development agreement for about two years as part of UCI’s plans to open more of its campus to profitable ventures. The university’s long-range plans also include allowing developers to build health- and biotechnology-related businesses on the western edge of the campus.