Irvine Co. drops lawsuit against Museum House developer
The Irvine Co. has dropped its lawsuit that alleged that supporters of the Museum House condominium project in Newport Beach were creating a “hostile environment” at Irvine Co. commercial properties.
The Newport Beach-based real estate giant dropped its case against Museum House developer Related California on Friday, according to Orange County Superior Court records. The suit was filed Dec. 9.
The complaint had contended that supporters of Related California were effectively trespassing on Irvine Co. properties in November and December because they did not have permission from the Irvine Co. to conduct “free-speech” activities there.
The Irvine Co. requires advance registration for petitioners, a practice it says is consistent with state and federal law.
The issue arose as petitioners for Line in the Sand, a Newport activist group, were gathering signatures calling for a public vote on Museum House, a proposed 25-story, 100-unit luxury condo tower in Newport Center that the City Council approved in November.
State political expenditure filings showed that Goco Consulting, a Sacramento-based campaign consultant that Related paid $200,000, stationed people throughout Newport Beach who urged residents not to sign the referendum petition.
Goco’s hired helpers reportedly were aggressive with passersby. During the Dec. 13 council meeting, then-Councilman Keith Curry called the tactics “absolutely disgusting.”
In a statement Wednesday, Irvine Co. spokesman Bill Lobdell said: “We always want to ensure our guests have an enjoyable experience at our retail centers while also allowing for free-speech activities under our content-neutral rules. With the signature-gathering process over, we have dropped the lawsuit but reserved the right to refile if our free-speech rules are ignored in the future.”
The referendum effort gathered nearly 14,000 signatures in about two weeks, and the Orange County registrar of voters office certified last month that the petition had enough valid signatures to qualify the matter for a ballot.
The City Council may decide at its meeting Tuesday to put Museum House up for a public vote this year or in 2018. The council also could rescind its approval of the project, which is proposed to replace the Orange County Museum of Art at 850 San Clemente Drive.
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For the Record: The original version of this story incorrectly stated the art museum’s address as 580 San Clemente Drive.
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After the Irvine Co. filed its lawsuit, Related California attorney Sean Matsler told the Daily Pilot that the company hired to “educate the public” about the project had submitted the Irvine Co.’s requisite paperwork. At the time, that company was not identified.
Matsler said the company didn’t know that one form didn’t apply to all Irvine Co. commercial centers but would work toward complying “with this technicality.”
Related California also promised to pay for retired or active peace officers “to sit at the shopping centers and help guarantee that all sides participate fairly in the public process. We hope this removes any concerns or issues going forward.”
Matsler said through a spokesman Wednesday that “nobody followed up on that offer.”
Related California Executive Vice President and Newport Beach resident Gino Canori said in a statement Wednesday that his company “undertook a very public process and complied with all requirements and approvals in an open and transparent manner. Transparency always serves the public interest, and we would expect all interested parties to conduct themselves in the same manner.”
“While we are certainly pleased that the lawsuit has been dismissed, we find recent disclosures to be very troubling,” Canori said.
Canori pointed to a disclosure, first reported in the Daily Pilot last week, that Line in the Sand was aided by Citizens Against High Rise Urban Towers, a Santa Ana-based nonprofit that also opposed Museum House.
In December, Citizens gave $47,500 to Newport 1st, a political action committee, which in turn used the funds to give Line in the Sand an in-kind donation worth $46,506. That donation paid for Line in the Sand’s petition, according to Susan Skinner, Newport 1st’s treasurer.
Related California officials have repeatedly called Citizens a “dark money” group because its benefactors haven’t been made public. Citizens’ attorney, Mark Rosen, has said the nonprofit is funded primarily by Newport residents who oppose Museum House but that he was unaware of its other backers.
Rosen did not respond to requests for comment last week about the “dark money” allegation.
Twitter: @BradleyZint
