Irvine is sued over private sessions to reach agreement with developer

Suit asks that a deal to allow Maguire Properties to pay extra fees instead of building low-cost housing be rescinded.

An Irvine planning commissioner and a retired police officer sued the city this week, challenging a closed-door "settlement agreement" with a high-rise developer as questions have arisen about the builder's support of City Council members who approved it.

The Irvine City Council in January approved the agreement to resolve a dispute with Maguire Properties, a Los Angeles real estate developer known for the 72-story US Bank Tower downtown. Two of the five council members walked out because they were concerned that the meeting, held in private, was illegal.

Maguire, while in negotiations with the city, contributed to a political committee that funded a campaign mailer endorsing two of the council members who approved the settlement.

In the 29-page settlement, Maguire agreed to pay the city as much as $9.8 million in extra building permit and transportation fees instead of providing low-cost housing in a complex of condominium towers going up near John Wayne Airport.

The suit, filed by Greg Smith, planning commissioner and former councilman, and former police officer Pat Rodgers, alleges that the city violated state open meeting laws.

"They're cutting deals without any public input," said Phil Greer, their attorney. "If it's such a great deal, then why wasn't it discussed publicly?"

The suit also alleges that the settlement limited public review by allowing future proposals from the developer to be handled administratively instead of through public hearings.

City planning officials and Maguire disputed that, saying the settlement did not change how future projects would be approved.

The City Council met in private three times to discuss the settlement, starting in October 2007. Maguire did not sue the city, but the council met out of the public eye because Maguire's attorneys suggested they would take legal action, according to a city report.

"This actually benefited the city to the tune of $10 million, and not one iota of our planning process has been modified in the process," said Mayor Beth Krom, who defended holding the meetings in private.

Council members Steven Choi and Christina Shea walked out of the last two meetings, in November and January, calling them illegal and improper. After the city received a letter from Greer asking that the agreement be rescinded, Krom, Councilmen Sukhee Kang and Larry Agran instead publicly ratified it on April 8. Shea and Choi abstained.

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