Irvine city leaders have approved a significant land swap with property developer FivePoint, allowing for the construction of 1,300 market-rate housing units. This decision, made in a 4-3 vote on October 10, 2023, has garnered attention due to the absence of affordable housing requirements for the new units.
In this agreement, the city will transfer 26.4 acres of land within Great Park to FivePoint in exchange for 35 acres adjacent to the Irvine Spectrum, known as the Crescent site. This site is earmarked for transit-oriented development, aiming to enhance connectivity between Great Park and the bustling Irvine Spectrum area.
The new development is projected to generate over $200 million in special taxes. These funds will primarily support school expansions and the development of public infrastructure for Great Park residents. Stephanie Frady, the city’s director of community development, emphasized that this initiative represents a vital opportunity for economic growth and improved connectivity in the region.
The Irvine Spectrum draws approximately 17 million visitors annually, while Great Park attracts around 6 million. With ongoing developments, these numbers are expected to rise, further justifying the city’s investment in infrastructure and housing.
Elizabeth Hansburg, co-founder of People for Housing OC, described the land swap as a chance for the city to exert more control over the type of development occurring near a transit center. She highlighted the importance of proximity to transit for low-income households, stating, “Having access to transit increases your mobility in terms of areas where you’re able to go to work.”
Despite the perceived benefits, the council’s decision to waive affordable housing requirements for FivePoint raised concerns among residents. The initial staff report for the meeting lacked a financial analysis regarding the land swap and the implications of the exemption from affordable housing regulations. The Los Angeles Times has since requested further documentation.
City officials acknowledged the land swap’s unequal acreage, with Pete Carmichael, assistant city manager, noting that the 8.6 acres received by the city is valued at about $66 million. He stated that the deal benefits the city by approximately $37 million.
During the public comment portion of the meeting, residents voiced their opinions regarding the allocation of the $15 million that FivePoint will provide as part of the agreement. While Mayor Larry Agran suggested using the funds for a veterans’ memorial, the community expressed preference for funding a library instead. Ultimately, Councilmember Melinda Liu introduced a motion that prohibited spending any of the funds on a columbarium for cremated remains, which passed in a tight vote.
As Irvine moves forward with this land swap, the community remains engaged in discussions about development priorities and the balance between market-rate and affordable housing. The outcome of this deal may set a precedent for future developments in the city, as leaders navigate the complex landscape of urban growth and housing needs.
