NEWPORT BEACH : City, Bay Club to Discuss Revamping

The city avoided a lawsuit this week by agreeing to begin talks on a plan to revamp the Balboa Bay Club as the aging private club moved to improve chances of winning support from the City Council and the community.

The agreement Monday came a day before the club’s deadline for filing a suit against the city. The club claimed in October that the city broke a contract because the City Council rejected a development plan in July.

“We regard this as a very good sign,” said Ronald J. De Felice, an attorney for the club. “Now, we have to get down to some real discussions.”

The city also welcomed the action. “We have far more in common that could precipitate into a business deal,” City Manager Robert L. Wynn said. “Then we can zero in on those (items that) we disagree on.”

Neither side has given a time limit on the negotiation period, but both indicated that they hoped the talks would move quickly. They estimated that it would take three to six months to come to an agreement on a new development plan acceptable to both sides.

De Felice said the club was concerned that the public would perceive the talks as “back-room deals,” and stressed that the club wants to win the community’s favor.

“I think it’s in the club’s interest to come up with a plan that is acceptable to the community,” De Felice said. “We don’t think we can pull the wool over the people of Newport Beach. That’s not our interest.”

Wynn added that any proposal will still need be put before the public and probably would go before other agencies, such as the California Coastal Commission. “Regardless of what we agree to in our meetings, it still has to go through the process,” he said.

The agreement reached Monday was the result of a claim that the club filed against the city, alleging that the city broke its contract when the council denied the $60-million development plan. That plan would have added a hotel, athletic club and other facilities to the private club, which sits on public tidelands leased from the city.