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Newport council to decide whether to put Museum House project on ballot

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The Newport Beach City Council will decide Tuesday whether voters can weigh in on the contested Museum House condominium tower.

The council will decide whether to place the proposed, 100-unit, 25-story project on a ballot either late this year, or in 2018, or rescind its earlier approval altogether.

The vote comes after the county registrar certified an activist group’s referendum petition last month that challenged Related California’s development.

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In December, Line in the Sand gathered nearly 14,000 signatures to bring the project to a potential vote.

Line in the Sand, the political arm of Still Protecting Our Newport (SPON), has called the project a bad precedent for more high-rises in Newport Center and a potential generator of additional traffic.

Related California has contested those claims, calling the traffic argument unfounded and the tower a “world class” addition to Newport Center that will generate more than $20 million in various fees for the city and schools, all of which Related would pay.

Museum House is slated to replace the Orange County Museum of Art in the shadow of Fashion Island at 850 San Clemente Drive.

City officials estimate that should the council call an election for Museum House, at $95,000, the November 2018 general election would be the lowest-cost option for taxpayers. The June 2018 primary would cost $120,000, and a special election about three months from now, $300,000.

However, if the city were required print all of the various documents related to Museum House in the sample ballots, such as its environmental documents, the taxpayer costs would significantly escalate to more than $4 million to have the matter placed on any election ballot.

Line in the Sand’s signature effort was marked by tension. Both sides hired campaign consultants.

Related California’s was accused of aggressively dissuading people from signing Line in the Sand’s forms, and a project supporter said some opponents acted inappropriately as well.

It got heated enough that the Irvine Co. filed a lawsuit against Related, contending that its team was creating a “hostile environment” at Irvine Co. commercial properties.

The lawsuit was dropped. Related called it meritless to begin with.

Related spent more than $435,000 fighting the referendum drive, according to recent campaign filings. Comparatively, Line in the Sand allocated about $91,000 for its effort.

About half of that amount came from an in-kind donation from Citizens Against High Rise Urban Towers, a Santa Ana-based nonprofit whose backers have never been made public. Irvine-based Related has repeatedly called Citizens a “dark money” group, given its mysterious origins.

Looming over the council’s decision is a lawsuit filed by OCMA, which is looking to sell its property to Related and construct a new museum at the arts complex in Costa Mesa.

OCMA’s case, filed Jan. 6 in Orange County Superior Court, alleges that Line in the Sand’s referendum didn’t comply with state elections code.

Earlier this month, Newport officials urged the council to delay its vote on Museum House in light of the lawsuit, which is progressing, though a briefing schedule has not been set.

Tuesday’s meeting begins at 7 p.m. in the council chambers, 100 Civic Center Drive.

[email protected]

Twitter: @BradleyZint

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