Irvine Co. deal has much potential, city says

Newport Beach city officials say the acquisition of a 4-acre piece of land on East Coast Highway with access to Upper Newport Bay as part of a multimillion-dollar development agreement with the Irvine Co. is a boon for the city.

“I think we’ll look back on it, and this will be one of the major benefits of this deal,” said Councilman Steve Rosansky, who helped broker the Irvine Co. deal, along with Mayor Ed Selich. “It’s one of the last pieces of undeveloped land on the waterfront.”

The land was tossed in at the last minute and made the deal, Rosansky said.

“It’s a beautiful piece of property,” Councilman Steve Rosansky said. “We got it because I asked for it.”

As part of the development agreement, the Irvine Co. swapped prior approval to build 195 hotel rooms for more office space in Newport Center. Hotel rooms are a valuable source of revenue for Newport Beach, and Rosansky said he felt the city needed more compensation for giving them up.

“I said that I think this is something we need to have for the city in exchange for what we’re giving up,” Rosansky said. “I wouldn’t vote for the deal unless we received extra compensation for that.”

Known as the Lower Castaways, the land near Castaways Park is officially valued at $6.3 million, but could be worth as much as $10 million, compared to what the city might pay for similar waterfront park land, Selich said.

The land is especially desirable to the city because of its access to Upper Newport Bay and its endless potential for marine and or recreational uses, Selich said.

“We’re losing more and more of our waterfront marine uses to residential development,” Selich said.

The land could be used as a staging area for building docks, or to assist the local boating community in other ways, Selich said. The land also could be used to expand Castaways Park or other recreational or environmental uses.

“At numerous times the city has talked amongst ourselves and mentioned to the Irvine Co. we would like to have that land,” Selich said.

Newport Beach City Council voted unanimously to approve the Irvine Co. deal Tuesday. The development agreement will go before the council again Tuesday for a second vote.

BRIANNA BAILEY may be reached at (714) 966-4625 or at brianna.bailey@latimes.com.