City of Irvine to pay $285M for controversial asphalt plant

In complex deal, Irvine Company to give 475 acres to city, with 80 acres for new homes

All American Asphalt Plant at 10671 Jeffrey Road and Mayor Farrah Khan (Google Maps, Getty)

TRD Staff

Apr 12, 2023, 5:15 PM

The City of Irvine will soon buy a local asphalt plant whose stink has irked nearby neighbors. The developer will pay $285 million in a deal that could pave the way for up to 450 homes.

The City Council has agreed to buy the All American Asphalt Plant at 10671 Jeffrey Road in the hills above North Irvine, the Orange County Register reported. The seller is All American Asphalt, based in Corona.

Money for the purchase would come from a concurrent deal with the Irvine Company to give the city 475 acres to build homes, with the proceeds paying for the asphalt plant deal.

The first payment for the plant of $28.5 million is expected to be made by the city on June 15. The asphalt plant must cease production by Nov. 15 to receive the second payment of $228 million.

Escrow is expected to close on Feb. 1. with Irvine making the final payment of $28.5 million the previous day.

Along with the purchase, Irvine will create a 700-acre Gateway Preserve, which will include the 11-acre asphalt site, with hiking and biking trails through green spaces, native gardens and outdoor classrooms.

In February, city leaders announced that funding for the purchase of the plant was to come from a “concurrent deal” the city made with Irvine Company.

According to that deal, Irvine Company will give the city 475 acres of land, with about 80 acres worth $330 million allocated for housing development, according to a city report. The sale of the properties is expected to cover the cost of buying the plant.

The development would include between 400 and 450 single-family homes and possibly condominiums, Councilmember Larry Agran, a member of Irvine’s All American Asphalt subcommittee, told the Register.

The newspaper didn’t say what developer would build the homes, or why the Irvine Company has agreed to give the city nearly 500 acres of land, or where the land is located.

The city’s report says the Irvine Company will give the city a parcel known as Gateway Land at the northeast corner of Jeffrey Road and Portola Parkway, next to the proposed Gateway Preserve. The land will be set aside for the future residential housing village, which would be built after environmental studies are concluded and approvals secured.

The asphalt plant has been open since the early 1990s and predates development in Irvine’s northern area. In recent years, residents have complained about odors emanating from the site. Irvine filed a public nuisance lawsuit in 2020 exploring options for relocating or even condemning the plant.

— Dana Bartholomew