El Toro Base Land Swap Considered : Conversion: Irvine Co. and U.S. are discussing an exchange of base property for acreage near Cleveland National Forest. Plan would give development giant control of all or part of air station property.

The Irvine Co. and the U.S. Department of Interior are discussing a possible land swap in which the development giant could gain control of all or part of El Toro Marine Corps Air Station in exchange for property bordering the Cleveland National Forest, officials said Thursday.

Federal officials were in Orange County last week meeting with Irvine Co. executives about the proposal for future control of the 4,700-acre military base, scheduled to close in 1999, officials said.

The likelihood of such an enormous swap is unclear, officials said, and no one was sure whether it would boost or hinder prospects for a commercial airport at El Toro. But it seems certain to put the county’s largest landowner in the center of the debate.

Orange County Supervisor William G. Steiner said Thursday he was notified of the talks this week and he seemed open to a further review of an exchange that could give the Irvine Co. ownership of base property.

“I’m sure there are some people who would be pleased that whole scenario could be placed back in the hands of the business community,” Steiner said. “They may be able to cut their own deal. Certainly, we have had a good relationship with the Irvine Co., so this would not be uncomfortable.”

At the same time, Steiner said he is not ready to abandon the work of the El Toro Reuse Planning Authority, the intergovernmental agency created earlier this year to develop a plan for conversion of the base to civilian use.

The future of El Toro has been the most hotly debated and politically charged issue that Orange County officials have grappled with in years. Local business leaders are pushing a ballot initiative seeking public approval for an airport. The measure faces significant opposition from cities in the southern portion of the county.

Supervisor Harriett M. Wieder also said she had been informed of the Irvine Co. discussions and characterized the talks as “ongoing and conceptual.” She agreed with Steiner that the work of the planning authority should continue.

An Irvine Co. official acknowledged Thursday that a possible land exchange between the company and the federal government has been “floating around for some time,” but she described it as an idea, not yet tied to any specific proposal.

“We have had conversations with the Interior Department on a lot of things,” said Monica Florian, a senior vice president of the company. “The topic of a potential exchange has been discussed. There’s nothing formal. The only understanding that I have of the whole subject of the exchange is very preliminary and very general.”

Florian said that although no specific acreage has been formally proposed, general discussions have centered on the concept of the federal government “exchanging some base land for some of our northern (Orange County) property” near the Cleveland National Forest.

A spokesman for Rep. Christopher Cox (R-Newport Beach) whose district includes the base, said the congressman had not heard of the possibility of a land swap.

Cox has long favored putting the 4,700-acre base up for public bid without any preconditions on its use, allowing interested developers to propose conversion plans.

If the base is sold to a private development group, then under Cox’s plan, the money could be used to offset the cost of moving the Marines from El Toro to the Miramar Naval Air Station in San Diego. The moving costs are expected to top more than $1 billion.

Some government officials involved in the development of a base conversion plan for El Toro, however, question whether the Defense Department would be willing to give up the Marine base so the Interior Department can obtain some environmentally sensitive land with a potentially lower market value.

The same officials also wonder if this type of deal could meet the Defense Department’s stated goal of generating revenue from base closures to offset the costs of moving personnel to other bases.

Until now, the Irvine Co. has been a big but quiet player in the divisive countywide debate over what to do with the base, although the company is the largest landowner in the county with significant holdings ringing the entire air station.

Already there is speculation swirling about how such an exchange, if carried out, could affect a push for a commercial airport on the site.

While local business executives supporting an airport are locked in a campaign to win passage of a countywide referendum in November, southern county officials have been adamantly opposed to such a plan, warning that an airport would bring added traffic and noise to their communities.

Depending on the timing, officials said the land swap could make moot the issue in the November election since a ballot initiative cannot govern private property.

Privately, however, some officials believe that placing the Irvine Co. in control of El Toro could boost the fortunes of airport proponents.