In a significant decision, Irvine city leaders approved a land swap with property developer FivePoint on November 11, 2023, facilitating the development of 1,300 market-rate housing units. The vote, which passed 4-3, allows FivePoint to build these units without adhering to affordable housing requirements. The city will transfer 26.4 acres within the Great Park to FivePoint in exchange for 35 acres known as the Crescent site, adjacent to the Irvine Spectrum.
This development is projected to generate over $200 million in special taxes, which residents of Great Park pay to support school expansions and public infrastructure projects. Stephanie Frady, the city’s director of community development, emphasized the economic benefits, noting that the new housing units will enhance the local economy.
Pete Carmichael, assistant city manager, highlighted the potential of the Crescent site for transit-oriented development. “This creates an exciting opportunity for an important linkage between the Great Park and the greater Spectrum area,” he stated. With the Irvine Spectrum attracting around 17 million visitors annually and Great Park about six million, the anticipated synergy between the two locations is expected to boost both areas.
Despite the advantages, the deal has drawn criticism due to the waiver of state affordable housing mandates. City officials justified this decision by pointing to the unequal acreage in the land swap, with Carmichael estimating the 8.6 incremental acres at around $66 million in value, resulting in a net benefit to the city of approximately $37 million.
Elizabeth Hansburg, co-founder of People for Housing OC, characterized the land swap as an opportunity for the city to exert greater control over developments near transit hubs. She noted that ownership of land adjacent to transit centers enables cities to enforce a higher percentage of affordable housing compared to private developers. “Proximity to transit enhances mobility for low-income households and those without multiple vehicles,” she explained.
As part of the agreement, FivePoint will also contribute $15 million to the city. During the meeting, Mayor Larry Agran suggested allocating these funds towards a final resting place for veterans. However, public opposition emerged, with residents advocating for the money to support a new library instead. Ultimately, Councilmember Melinda Liu introduced a motion to approve the land swap while prohibiting any use of the $15 million for the design or development of a columbarium. This motion also passed 4-3.
The city’s decision to approve the land swap and waive affordable housing requirements has sparked a broader conversation about housing and development in the region. As Irvine continues to grow, balancing the need for market-rate housing with affordable options remains a critical challenge for city leaders. As the area evolves, the implications of this land swap will be closely monitored by residents and stakeholders alike.
