NEWPORT BEACH : Expansion of Fashion Island OKd

An expansion plan that officials hope will make Fashion Island more competitive with South Coast Plaza and other Orange County malls passed the City Council this week with the blessings of business leaders.

Mayor Clarence J. Turner said the added revenue would be welcome, noting that the state last year reduced the city’s cut of property taxes from 20 cents on the dollar to 15 cents.

“I see this as an opportunity to fight back to restore at least some of the loss,” he said before joining a unanimous vote Monday.

New stores in the planned 309,000-square-foot addition are expected to do $75 million a year in sales, increasing the city’s sales tax revenue by $750,000.

City officials have been trying to lure Bloomingdale’s into the expanded mall to add a unique drawing card. But South Coast Plaza in Costa Mesa also is bidding for the department store.

The expanded mall is expected to draw 90% of its new business from other malls--primarily South Coast Plaza and neighboring Crystal Court, the Brea Mall and MainPlace/Santa Ana. City officials estimated that about 10%--an estimated $3 million--would be shifted from other areas of Newport Beach.

Advance Planner Patricia Temple said expansion of the outdoor mall is expected to put little pressure on the eight smaller commercial centers in the city which cater to small, specific local populations. Together, those areas generated $190 million in sales last year.

Increased traffic is anticipated for peak periods such as the Christmas season, but the city plans to use shuttle buses and other alternatives to alleviate potential holiday parking problems.