Irvine, Newport Beach Settle Lawsuit Over Housing Plan

The City of Irvine has agreed to pay the neighboring City of Newport Beach $3.65 million to settle a lawsuit over Irvine’s approval of a mixed-use plan for 2,760 acres. The Irvine Business Complex plan seeks to bring as many as 15,000 housing units in mixed-use developments to an area near John Wayne Airport that is currently dominated by office buildings and industrial parks.

Newport Beach and Tustin sued Irvine because of traffic impacts of the envisioned development, and a Superior Court judge in 2008 ruled in Newport Beach’s favor. Under the settlement approved in late November, Irvine will pay $3.65 million for Newport Beach to use for improvements on and near Jamboree Road. In addition, both cities agreed not to sue one another over projects permitted by their respective general plans.

Negotiations with Tustin, as well as with property owners who have sued over the Irvine plan, are ongoing.