Where will the land required to help Orange County meet its housing needs come from?
Irvine Co. suggests one of its golf courses may be part of the solution.
The real estate giant is seeking permission from the city of Irvine to build 1,500 single-family homes on what is today the Irvine Co.’s Oak Creek Golf Course.
The plan would create the company’s 23rd residential “village” and include another 1,600 apartment units on neighboring land previously slated for office buildings. The plan would also include a new school – with the developer paying the construction tab – that would replace a small office complex nearby.
Irvine Co. is beginning the government approval process for its 235-acre Irvine Spectrum District Village concept. The land is between Jeffrey Road and Sand Canyon Avenue, just south of the 5 freeway, not far from the Spectrum’s office and shopping hub. The first public discussion of the plan is slated for May 13, when the backbone of the planning – a “memorandum of understanding” between the developer and city – will be debated.
State homebuilding mandates have increased the pressure on all cities to build, especially high-density rentals. Irvine Co. officials estimate it could theoretically build roughly 3,500 apartments around the site that’s part of the city’s inventory of housing possibilities. Instead, the developer is pursuing its village concept, incorporating 3,100 housing units with various lifestyle amenities such as parks, pools, paths and traffic improvements.
The city will get more than extra housing. Irvine Co. proposes to pay the city up to $96 million in various fees. The developer would also give Irvine up to 2,000 vouchers for two years of heavily discounted rents at Irvine Co. apartments. The city estimates it’s a $72 million boost to the city’s affordable-housing efforts for its financially stressed residents.
Mike Carroll, the Irvine council member for this part of town, is encouraged by the proposal.
“Planning the Irvine way is about parks, schools and transportation,” Carroll said. “This proposal appears to strike a good balance. It will be carefully reviewed to ensure consistency with those master planning principles that make Irvine one of America’s great cities. I’m excited to have this project moving forward in my district.”
Irvine Co. expects it may take up to 18 months to go through the planning process. If approved, this would be Irvine’s first new village since Eastwood began in 2016.
“It will be one of Irvine’s most conveniently located communities,” Jeff Davis, Irvine Co. senior vice president, said. “Within biking, or even walking, distance to employment and support services within the greater Irvine Spectrum area.”
Less than traditional
The city has expanded rapidly. Irvine’s population grew 34% in the 10 years ending in 2023, the fastest among the nation’s big cities, according to StorageCafe.
But that popularity comes at a cost. The city’s housing affordability ranked 19th worst among 300 large U.S. cities, according to WalletHub.
Yet, creating cheaper housing options is challenging. Places to easily develop new residences in Orange County are rapidly disappearing. So, construction is pushed to less-than-traditional spots, like shopping centers or office complexes.
Ponder what Irvine Co. is currently developing.
There are 1,261 apartments on former retail spaces at Irvine Marketplace. Leasing should begin by year’s end. Another 896 rental units are being built on land previously designated for offices off Barranca Parkway near the Spectrum.
Also, 585 apartments and 83 for-sale houses are coming to the Los Olivos neighborhood, once the site of various entertainment venues.
Plus, the last part of Orchard Hills – a new high-end neighborhood with 520 homes – will begin selling soon.
The final putt
Why was the 193-acre Oak Creek golf course facility, which opened in 1996, deemed expendable?
Well, the private course is a pricey place to play, with green fees that can run above $200 a round. And it’s more likely to be used by out-of-towners than Irvine residents. By the way, Irvine Co. intends to run the golf course until any building plans are finalized.
Additionally, converting golf courses to other uses is a national trend.
Oak Creek was part of golf’s U.S. building boom from the 1990s through the mid-2000s that added roughly 3,400 golf facilities across the nation, according to National Golf Foundation. The Great Recession ended that expansion, with 2,000 golf facilities since cut nationwide to just under 14,000 as of last year.
To help negate Irvine’s loss of open space from redeveloping the golf course, Irvine Co. also proposes donating to the city its avocado groves and nearby land in northern Irvine. The avocado business will generate cash for the city. The additional land would increase the size of a planned nature preserve in that neighborhood.
The course’s signature tree-lined border will remain, becoming a landscaping frame for the new village. And when the final putt is made, the developer plans to leave the clubhouse to serve as a community center for the new village.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com