Irvine will pay $285 million to purchase the All American Asphalt plant in the northern part of the city — if city leaders greenlight a purchasing agreement next week.
In February, Irvine leaders announced plans to purchase the asphalt plant on Jeffrey Road — the focus of increased complaints from residents about odors — and create the Gateway Preserve, an approximately 700-acre open space preserve with hiking and biking trails.
Councilmembers will consider a $285 million price tag for the plant on Tuesday, April 11. That price is “well in excess” of how much plots of land typically go for in Irvine, according to city documents, but the amount is what All American Asphalt was comfortable selling for, City Manager Oliver Chi said.
“All American Asphalt plant was not interested in selling, and they are only selling right now because we’ve been able to reach a price that they feel is commensurate with the long-term profits that the asphalt plant would have generated,” said Chi.
A spokesperson for All American Asphalt did not respond to a request for comment.
The funding for the purchase of the plant is set to come from a “concurrent deal” the city made with Irvine Company. In the deal, the Irvine Company will give the city approximately 475 acres of land, with about 80 acres (worth around $330 million, according to city documents) allocated for housing development.
The sale of the properties is expected to cover the cost of purchasing the asphalt plant.
If councilmembers move ahead with the arrangement next week, the asphalt plant must cease all production activity by Nov. 15.
And residents who live in surrounding areas are rejoicing that the plant that “completely disrupted our lives” could potentially shut down, said Kevin Lien, who lives two miles from the plant in Eastwood Village.
Odors from the plant are particularly strong in the nights and early mornings, Lien said. Every night, he checks his hood ventilation and laundry…
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