IRVINE : Council Suspends Developer’s Permit

Years of discord between the owners of the Metropolitan condominium complex and the city climaxed this week when the City Council took the unusual step of suspending the development’s conditional-use permit.

The move prevents the condominium’s development company, Douglas Plaza Ltd., from selling or marketing unsold condos or doing any construction work in the complex until the company makes good on its 4-year-old promise to set aside several units for affordable housing.

Council members approved the measure unanimously Tuesday night after taking a company representative to task for what they described as his “delaying tactics” and unbusinesslike conduct in dealing with the city.

“If you ever do business with the city of Irvine again, I suggest you clean up your act,” Councilwoman Christina L. Shea told Earnest Cohen, a principal in the Metropolitan.

Cohen’s dispute with the city stems from a conditional-use permit issued to Douglas Plaza Ltd. in 1989.

In exchange for the permit, Cohen agreed to give 10 units to the city for use as affordable housing for low- and moderate-income families and individuals, said City Manager Paul O. Brady Jr.

But four years later, the city has yet to receive the keys and deeds to the condos, despite numerous attempts to get Cohen to comply with the agreement, city officials said.

“Whenever we thought we had an agreement, there would be a delay,” said Robert C. Johnson, director of community development.

In 1990, Cohen asked the City Council to exempt him from turning over the units. When the council refused, he filed a lawsuit against the city in 1992, challenging Irvine’s right to demand the units.

The lawsuit was dismissed in January, and city officials said they have had trouble communicating with Cohen for the last four months.

“We decided it was time to take some action,” Johnson said.

Cohen on Tuesday night defended his action, saying the delays were caused in part by questions he had about who would live in the affordable-housing units.

Some residents of the upscale condos near John Wayne Airport were concerned that the units would reduce the value of their homes, and Cohen said he felt a duty to persuade residents that the complex would not turn into a “house for the homeless . . . with shopping carts.”

“As a representative of the developer, I have a responsibility not (just) to the city of Irvine but to the residents,” Cohen said. “For the residents, it was a surprise that some of the units were dedicated (for affordable housing). It was a shock to them.”

But some city officials expressed skepticism over Cohen’s explanation, noting that he was informed early in the process that the units would be used for affordable housing and not as any sort of homeless shelter.

“Your credibility with me is strained,” said Councilwoman Paula Werner.

Cohen said he is now ready to hand the units over, and City Atty. Joel D. Kuperberg acknowledged that the city has seen “some prompt attention from the developer” over the last few days.

But Kuperberg added that the conditional-use permit suspension will only be lifted after the city takes possession of the condos.