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Council approves MacArthur Court development agreement for 700‑unit plan with off‑site affordable housing plan
Summary
The council unanimously approved a development agreement for a proposed mixed‑use MacArthur Court project that would allow rights to vest for up to 700 market‑rate units and 10,000 sq ft of retail over 10 years; the voluntary affordable housing plan would require 7% off‑site affordability (about 49 units) or an in‑lieu fee, plus a $3.25 million local revitalization fee and other public benefits.
The Newport Beach City Council voted Nov. 18 to approve a development agreement and an associated Affordable Housing Implementation Plan (AHIP) for the MacArthur Court site in the airport area, after a staff presentation and public comment.
Principal Planner Liz Westmoreland told the council the conceptual project submitted by the Irvine Company would comprise five parcels on the far east side of the city near the Irvine border, and could include up to 700 apartment dwelling units plus 10,000 square feet of retail or restaurant space. The applicant has requested a voluntary 10‑year development agreement to vest rights in exchange for public benefits. Among the public benefits described in the staff report were a $17,000 per‑unit public benefit fee for any units not built (measured after July 1, 2028), a $3.25 million MacArthur Boulevard revitalization fee, and provision of a one‑acre public easement for accessible open space.
Westmoreland said the voluntary Affordable Housing Implementation Plan would require off‑site affordable units equal to 7% of the market‑rate units; if the project reaches 700 market units, that would equate to 49 affordable units. She said the project remains conceptual and would be subject to future site development review, traffic study, subdivision mapping and CEQA review by the planning commission. Because the project proposes over 500 units, it also required a water supply assessment, which the Irvine Ranch Water District approved, Westmoreland said.
Public commenters expressed concern that the 7% off‑site figure and the in‑lieu fee ($36,690 per unit in materials cited by a speaker) could allow the developer to pay rather than construct on‑site affordable housing and that higher inclusionary percentages would better meet the city's stated housing goals. Speakers urged stronger assurances that affordable units be built and criticized using an off‑site approach and low percentage compared with the city’s housing needs.
Councilmember Ballen moved, and Councilmember Weber seconded, to adopt staff recommendations as amended; the motion carried by unanimous vote.
Next steps: project proponents will continue design work and future discretionary permit processes (site development review, traffic analysis and CEQA) before any building permits are issued. The AHIP and development agreement include deadlines and in‑lieu fee options staff and council can enforce if affordable units are not delivered by required dates.
