Annexation plans could be divided

Mathis Winkler

NEWPORT BEACH -- A possible delay in the annexation of Newport Coast

until 2002 has some City Council members wondering if the city should

press for annexation of two smaller areas in July.

Councilwoman Norma Glover brought up the issue at last week’s council

meeting, saying that getting control over Santa Ana Heights would help

the city in its fight against an expansion of John Wayne Airport.

“We need to go as close to John Wayne [Airport] as possible within our

city limits,” Glover said, adding that Bay Knolls, a third annexation

area, should come to the city at the same time as Santa Ana Heights.

“We’re putting things in place now to have a little better control

over that environment than we have had in the past. I believe that that’s

an intelligent thing to do.”

City officials have described the annexation of Santa Ana Heights --

an unincorporated area near the northern end of the Back Bay and almost

completely surrounded by Newport Beach -- as protection against a

possible expansion of John Wayne Airport, which lies close to the

neighborhood.

But while Santa Ana Heights might be seen by some as a trump card

against a bigger airport, the cost of annexation may be too high without

bringing in Newport Coast at the same time.

But the annexation of Newport Coast, an upscale neighborhood south of

the city, will have to wait until the construction of an additional 825

homes is guaranteed.

The development could be challenged by opponents because Newport Beach

-- unlike Orange County -- does not have a local coastal program, which

allows local government agencies to issue permits for developments in

California’s coastal zone.

City officials are introducing legislation in Sacramento that would

keep existing local coastal programs in place when a city annexes a

territory.

While Newport Beach eventually expects to benefit from Newport Coast’s

high property taxes, Santa Ana Heights will not deliver the same.

As a redevelopment area, Santa Ana Heights’ property taxes are used to

pay off bonds that finance street improvements and similar projects in

the area. The system will continue at least until 2035, said Deputy City

Manager Dave Kiff.

Because the city will have to pay for municipal services while

receiving no property taxes from the area, annexing Santa Ana Heights and

Bay Knolls without Newport Coast wouldn’t make much sense, said

Councilman Tod Ridgeway.

“It costs us more money to provide services to those two areas than

any benefits we receive,” he said.

And because no immediate expansion plans exist for John Wayne Airport,

Ridgeway said, there is no need to rush things.

“Patience is a virtue,” he said. “And with this one, I think we should

be patient. We have every reason to want to try and maintain the

annexation as one large annexation.”

If the Newport Coast annexation is pushed back much further than

January 2002, council members may have to rethink the issue of annexing

Santa Ana Heights and Bay Knolls at an earlier date, Ridgeway said.