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A plan to construct a 500,000-square-foot warehouse in the Irvine Business Complex has already been approved by the planning commission — but negotiations between Irvine city staff and the property owners could replace that plan with housing at the 11th hour.
As city leaders discuss cracking down on large warehouse developments, this specific project was approved by planning commissioners in a 3-2 vote on Nov. 21.
The move prompted concern from residents regarding noise, air pollution and traffic congestion, especially from trucks.
During the Feb. 11 city council meeting, City Manager Oliver Chi said city staff has had many discussions with the property owner, who has expressed interest in developing housing on the site instead of a warehouse.
“We’ve had multiple discussions with them as it relates to the residential development process that they’re looking to engage,” Chi said during Tuesday’s meeting.
“All of the feedback we’ve gotten has indicated IRA Capital is an exceedingly sophisticated development team and investment team that we think can absolutely pull this project off and build a project that everyone will be proud of,” he said.
Chi said he’s confident the city and the property owners will be able to work together to create a residential project to avoid the large-scale warehouse development that nearby residents protested.
Currently, there are few details or specifics about what that residential development could look like. Chi said the details will be discussed in upcoming months as city leaders continue to discuss with the property owners — Von Alton I and IRA Capital.
“I’m confident — absolutely — that IRA Capital and the team that owns the property is operating in good faith and will work with us to engage the residential entitlement process,” Chi said.
Samir Patel, a representative from IRA Capital, spoke briefly about the company’s commitment to work in tandem with the city.
“Our goal is to have a long-term, good-standing relationship with the council, with the residents, and to see the city grow and continue to be one of the top cities in the country,” Patel said at the Feb 11 meeting.
“We think this helps address a lot of the concerns the citizens had, the council members had, and we’re working our best effort to try and get something across the finish line to make everybody happy,” he said.
Some residents praised the last-minute move at Tuesday night’s meeting.
“Something was approved by the planning commission that should have never been approved, and hopefully, there’ll be some kind of resolution to make sure something like this is never approved again,” an Irvine resident said during the meeting. “I think this is an amazing thing to have turned a negative into a positive. When they give you lemons, make lemonade, right?”
[Read: Irvine Rethinking How Large Warehouses and Residences Mix]
Will Irvine Buy the Property?
During a special city council meeting Tuesday afternoon, the council approved a pathway that gives the city an option to purchase the 25-acre property and take over the project if the applicant decides not to pursue the residential element.
The council voted 5-0 to enter an agreement that allows the city to purchase the property at $12 million per acre — only if the owner abandons the housing portion of the project and instead decides to move forward with an industrial development, like a warehouse.
Councilmember Mike Carroll was absent from the meeting.
Chi said the goal is to avoid purchasing the property and the agreement is intended to create a safety net just in case the property owner decides to switch gears.
“It’s really our sincere hope that we’re not going to have to [purchase the property],” Chi said. “Everything that I’ve seen — all my conversations — have indicated we’re dealing with really upstanding individuals who are looking right now for an option to get to a goal on a project that the entire community will embrace. I am confident we can get there.”
If the city moves forward to purchase the property, it would cost approximately $300 million — about three times more than the $100 million IRA Capital paid to purchase the property two years ago.
City council members said they were happy to hear about the possibility of new housing instead of a warehouse.
Councilmember Melinda Liu thanked Chi for helping the city “avoid a giant warehouse and get more housing possibilities.”
Councilmember Kathleen Treseder said she was “pleased” to hear about the negotiations between staff and the property owner.
Chi said there will be conversations about project specifics in the coming months. He said all permit applications, a development agreement, a tentative map and a master plan are all expected to be approved by Sept. 24.
“Where we sit today, I’m confident that we’ll have the opportunity to engage with terrifically talented people to pursue the residential project in the next couple months,” Chi said. “I think everyone will be really impressed with what we come up with.”
Angelina Hicks is a Voice of OC Tracy Wood Reporting Fellow. Contact her at ahicks@voiceofoc.org or on Twitter @angelinahicks13.
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