Newport Coast Pre-Annexation Agreement
In Fiscal Year 2001-02, the City entered into a Pre-Annexation Agreement with the Newport Coast Committee that stipulated certain terms and conditions for the annexation of property collectively known as Newport Coast. In conjunction with the annexation, the City also agreed to sell the water service rights for the annexed area to Irvine Ranch Water District for $25.0 million. Of the $25.0 million payable from the Irvine Ranch Water District, $15.0 million was received in the year 2002 and the remaining $10.0 million was paid in installments ranging from $2.0 to $5.0 million through January 1, 2008.
Among other basic provisions, the Pre-Annexation Agreement stipulates specific requirements for the use of proceeds from the sale of the water rights to Irvine Ranch Water District. The City has entered into an agreement to reimburse Newport Coast residents $18.0 million of the $25.0 million for certain public road and street improvements previously financed by property owner assessments. The assessment debt relief will be provided to Newport Coast residents in equal installments of $1.2 million over 15 years. The remaining $7.0 million was used in locating, planning, and constructing Newport Coast Community Center within the annexed area. The agreement has been paid off and there is no outstanding balance at June 30, 2017.