HomeMy WebLinkAboutRDA 3 STATUS ON RDA PROJECTS 07-21-09Agenda Item RDA ~
_~'~ k Reviewed:
~~: _ ~ AGENDA REPORT City Manager 1
Finance Director NIA
MEETING DATE: JULY 21, 2009
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: REDEVELOPMENT AGENCY
SUBJECT: STATUS REPORT ON REDEVELOPMENT AGENCY PROJECTS
SUMMARY
Redevelopment Agency staff will provide to the Agency on a regular basis an update of
redevelopment related projects.
RECOMMENDATION
Receive and File.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
BACKGROUND/DISCUSSION
On June 16, 2009, the Tustin Community Redevelopment Agency adopted its Fiscal
Year 2009/2010 Budget. In response to the Budget's adoption, Agency staff members
felt it would be helpful to compile a regular status report on Agency related projects and
activities for the Board's information. The attached status report focuses on the status
of projects that Agency staff and Board members are working on and other Agency
items of interest.
Christine A. Shingleton
Assistant City Manage
J n Buchanan
edevelopment~ogram Manager
Jerry Cra' L
Redeve pm t P gram Manager
Attachments:
I. July 2009 Status Report on Redevelo ent Agency Projects
Status Report
Tustin Community Redevelopment Agency
July 7, 2009
TUST[N
BUILDING OUR FUTURE
HONORING OUR PAST
Tustin Community Redevelopment Agency
July 2009 Status Report
Town Center and South Central Redevelopment Propect Areas
Prospect Village Project
• Four (4) of the six (6) Live/Work Units have been sold on Prospect Avenue and three (3) of
the six (6) Live/Work Units have been sold on Prospect Lane.
• Two (2) of the three (3) Office Suites on the Second Floor of the Main Street Commercial
Building have been leased.
• Prospect Village has received interest from a restaurateur to lease half of the space on the
Ground Floor of the Main Street Commercial Building.; the restauranteur has not yet been
approved by the Agency as required by the DDA.
Tustin Town Center New Beginning Study-Continue to coordinate with Consultant, Field Paoli, on
preparation of Draft Concept Plan Alternatives and a workshop format. The draft Concept Plans will
be available shortly on the City website and be presented to the community for comment in
workshops for each Neighborhood likely in August.
Commercial Rehabilitation Program-Updates are in preparation to the Agency's Commercial
Rehabilitation program to include expanded Target Areas as a result of FY 2009/2010 CDBG funding
and possible recommendations that would made as part of the "Tustin Town Center New Beginning"
Study.
Design Reviews-Coordinated with Community Development on Design Reviews of the Red Hill
commercial center, doctor's office at 740 El Camino Real, El Pollo Loco at 1341 Newport Avenue,
Synergy at 300 El Camino Real, Feinstein Building at 200 El Camino Real and Kentucky Fried
Chicken at 1022 E. First Street.
Pacific Center East
• Worked on negotiation of City boundary adjustment (Reorganization) and LAFCO required
tax share agreement with the City of Santa Ana and Santa Ana Redevelopment Agency for
former Caltrans right-of--way ramps on the west side of the SR-55 Freeway in vicinity of
Edinger Ave. Status is pending given recent Santa Ana position and request for guarantee of
future tax revenue.
• Completed work on preliminary draft Disposition and Development Agreement for
Exclusive Agreement to Negotiate (ENA) with prospective developer. Fielded numerous
broker and developer calls and inquiries regarding the former AAE properties in the area and
potential interest in development including related to interests from potential hotel users,
Nexus Development, LNR, and CB Richard Ellis.
• Continued document assemblage, review and trial preparation on AAE property acquisition
including meetings with attorneys.
Newport Avenue Extension-Continued coordination with Public Works Department on completion
of Phase I Newport Avenue/SR-55 Ramp Reconfiguration Project and continued design work on
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Tustin Community Redevelopment Agency
Phase 2 including property acquisition strategy. The Agency continues to maintain and manage two
(2) occupied Newport Avenue fourplexes purchased for required right-of--way in Phase 2.
Tustin Library-Project managed continuing construction of the new Tustin Library and coordinated
completion of punch list items on Phases 1-2 of the project.
Neighborhood Improvement Task Force & Tustin Against Graj~ti-Agency staff continued their
participation in both committees with the other city departments to provide a coordinated response to
neighborhood issues and graffiti. Reviewed billing procedures with Community Development to
ensure Redevelopment funds budgeted for graffiti abatement in Redevelopment Project Areas were
fully utilized where legally permissible prior to any expenses being charged to the General Fund.
MCAS Tustin Redevelopment Proiect Area
The District at Tustin Legacy
• Monitor and verify Vestar/Kimco tenant percentage rents to determine City's share of
percentage rent due under the DDA.
• Reviewed status of license between Vestar and Army Reserve and interest of Agency in
acquiring the Army Reserve site adjacent to The District. Discussed and consulted with
special Washington legal counsel and Congressman Campbell's office, drafted proposed
correspondence to Department of the Army and conducted a number of follow-up calls with
the Congressman's office.
• Reviewed entitlement applications for uses and special events at The District and provided
comments to Community Development for conformance with the DDA and the
Redevelopment Plan for MCAS-Tustin.
• Coordinated with Public Works on status of public improvement obligations and required
reimbursements to Vestar under the Infrastructure Construction and Reimbursement
Agreement.
South Orange County Community College District (SOCCCD)
• Reviewed draft Concept Plan submittals for ATEP by SOCCCD and provided responses and
monitored SOCCCD compliance with their Conveyance Agreement with City and Sublease
in coordination with Public Works, Community Development, the City Attorney and Special
Counsel with Kutak Rock.
• Initiated response to SOCCCD complaint letter on maintenance of common areas under the
Sublease between SOCCCD and City. Began assembling historical information on
maintenance revenues received since April 2004 from SOCCCD and actual direct and
indirect operational and maintenance expenses incurred by City.
County of Orange
• Monitored and provided licensing for construction parking to the County on their
construction of the Tustin Family Center-4 acre site.
• Continued discussion with the County regarding the status of the IRG proposal for the 84 acre
regional park site and responded to inquiries from IRG and requests for meetings with
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Tustin Community Redevelopment Agency
County, City and IRG.
• Coordinated with County and Navy on Sheriff Law Enforcement Training facility and
Animal Control public benefit conveyance from Navy and recommended adjustment to the
public benefit request also coordinating on legal issues with Washington special legal
counsel.
Lennar/Marble Mountain Partners
• Met and followed up to inquires from Lennar/William Lyon Homes as partners in Marble
Mountain Partners regarding a proposal for restructuring of the Coventry Court Senior
ownership project At Columbus Square and coordinated with City Attorney and City
Manager.
Tustin Unified School District
• Coordinated with Community Development on responding to submittals from TUSD on the
first elementary school at Tustin Legacy.
• Awaiting direction from Agency Board on quitclaim deeds and conveyance agreements
previously transmitted to TUSD. No response to date from TUSD.
Tustin Legacy Community Partners ("TLCP "), LLC
• Monitored TLCP compliance with contractual obligations under the Forbearance Agreement,
including but not limited to infrastructure plan submittals.
• Continued negotiations with TLCP on the schedule of performance, location and phasing of
development, required housing tenure, including timing and phasing of infrastructure and
modification of the land conveyance schedule.
• Continued review and provided comments on infrastructure plan submittals in coordination
with Public Works and Community Development.
• Initiated discussion on the structuring of a future CFD district formation for construction of
backbone infrastructure and provision of funds for municipal services for remaining portions
of Tustin Legacy not already included in a CFD district in consultation with the City's
Finance Director and our CFD consultant, David Taussig & Associates.
• Coordinated review of the Department of Toxic Substances Control ("DTSC") &TLCP
Voluntary Clean-up Agreement/Site Management Plan with the City's environmental
attorney with Kutak Rock including the implication of the agreement/plan as it affects the
remaining City-owned property at Tustin Legacy. The VCA/SMP is an agreement between
DTSC and TLCP that establishes procedures for expedited cleanup of new discoveries of
previously unknown soil contaminants within the Master Developer 805-acre footprint.
Recent resolution of the City's outstanding concerns on City-owned properly enabled DTSC
to begin the required 30-day public review period for the SMP. TLCP has previously
identified completion of the SMP and associated public review process is their insurance
carrier's prerequisite to TLCP obtaining a rough grading permit for the Master Developer
footprint.
• Coordinated Department of Navy (DoN) review of a Project Environmental Review Form
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Tustin Community Redevelopment Agency
(PEKE) submittal by TLCP for mass grading, utility and building demolition, and erosion
control on Navy-owned property within the Master Developer Footprint, and coordinated
TLCP's response to the Base Cleanup Team (BCT), including: the DoN, the Environmental
Protection Agency (EPA), the Department of Toxic Substances Control (DTSC), and the
Regional Water Quality Control Board (RWQCB). Outstanding comments were received
from DTSC on June 4, 2009 and TLCP anticipates submitting the 9"' and hopefully final
revision by mid-July. Authorization from the BCT is one of the few outstanding
requirements prior to issuance of a rough grading permit for the 805-acre Master Developer
footprint.
Fire Station
• Agency staff drafted a scope of work for fire station design and construction services,
coordinated with Public Works on procedures and process for proceeding with design,
solicited and negotiated a program management proposal response and consultant services
agreement with Griffin Structures. Request for City Council approval of the Consultant
Services Agreement is expected July 7, 2009.
• Initiated preparation of a Homeland Security Department grant for a portion of the costs for
the Fire Station construction under the federal Stimulus Package. Grant was submitted on
July 10, 2009; feedback from Homeland Security Department is anticipated in December
2009.
Local Agency Military Base Recovery Area (LAMBRA)
• Provided monthly status reports to the California Department of Housing and Community
Development (HCD) and continue to respond to periodic inquiries from tax consultants.
There has been no other LAMBRA activity from private businesses at Tustin Legacy to date.
Policies and Procedures and a database are being developed to market LAMBRA benefits to
"The District", other future Tustin Legacy industries and to track hiring credit vouchers.
Legislation
• Monitored proposed Defense Authorization act budget submittals in coordination with the
City's Washington special counsel, Kutak Rock
Navy
• Completed and transmitted final exhibits and draft DVDNideo to the Department of the
Navy and awaiting feedback as it relates to the City's and County's obligations for mitigating
the impacts of no mandatory preservation covenant on the blimp hangars under a
Memorandum of Understanding between the Navy and State Office of Historic Preservation
and Federal Advisory Council .
• Assembled and provided copies to the Navy based on their request to receive additional
copies of all previously transmitted audits completed as required under the Economic
Development Conveyance Agreement between the Navy and City.
• Agency staff to be trained on Hangar mitigation with regard to the DVDNideo and Exhibits.
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Tustin Community Redevelopment Agency
Housing
Monitor Foreclosure Activity-assembled, prepared and submitted monthly foreclosure reports to the
City Council. As of May 31, 2009, there were 104 properties in foreclosure: 37 Single Family
homes, 62 Condominiums, 2Multi-Family units, 2 Commercial buildings, and 1 Industrial building.
As of May 31, 2009, there were 338 properties where pre-foreclosure activity was present.
Affordable For Sale Housing
• New Homes at The Villages of Columbus
0 Completed escrow and affordability documentation for the sale of 1 moderate-
income home at Camden and llow-income home at Cambridge within the last three
months (April-June).
• Re-Sales
0 Completed escrow and affordability documentation for the re-sale of I moderate-
income home at Tustin Field I within the last three months (April-June).
0 8 re-sale homes are on the market: 6moderate-income homes at Tustin Field I, I
moderate-income home at Arbor Walk, and lmoderate-income home at Camden.
Affordable Homeowners Refrnancing-At this time, the Agency has four (4) refinance transactions
that have requested subordination agreements from the City. Many homebuyers have contacted the
City and are currently working with lenders to refinance their mortgage. There are an estimated ten
(10) homeowners seeking to refinance. The Agency has met with MetLife Home Loans and Bank of
America to discuss the new Federal "Making Home Affordable" program, which can assist many of
the affordable homeowners with their refinancing.
Housing Element-Coordinated with Community Development and provided financial and pro forma
information related to HCD requests and as necessary for modifications to the Housing Element to
respond to California Department of Housing and Community Development comments. The Housing
Element was approved by the Council on June 16, 2009.
Residential Rehabilitation Program- There are currently one (1) single family home and one (1)
multi-family unit undergoing rehabilitation work under the current Program. Continued work on a
comprehensive update to the City's Housing Rehabilitation Program. Staff are also evaluating the
potential for a Mobile Home Subsidy Program for very-low and low-income Seniors. Staff estimate
that they could bring proposed modifications to the Program to the Agency in the next 60 days.
Reimbursement Agreement between the City and Community Redevelopment Agency-Updated debt
service schedule for the Finance Department related to Reimbursement Agreement between City and
Agency on provision of affordable housing at Tustin Legacy. Continuing to identify the existing
Second Trust Deeds under the Tustin Legacy Affordability program that are being applied to transfers
to date of tax increment that have been made from the Agency to the City.
Mortgage Credit Certification (MCC) Program-Coordinated with County on submitting an
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Tustin Community Redevelopment Agency
application to the California Debt Limit Allocation Committee (CDLAC) for $20,507,852 in credit
certificates. The application is on the July 22, 2009 CDLAC Agenda and, if approved, the
implementation in Tustin project areas of the program as authorized by the City Council could begin
in the middle of August.
Neighborhood Stabilization Program (NSP) - Reviewed the NSP program and provided
recommendations to the Executive Director on whether City should participate. A decision was
made for the City not to be a direct applicant given the significant match requirements. City will
retain the right to participate in the County-wide program once additional information is made
available from the County.
Preservation of At-Risk Affordable Housing Units-Initiated discussions with Tustin Gardens
regarding the extension of affordability restrictions as part of Housing Element implementation
activities.
Monitoring Tustin's Affordable Homeownership Inventory-Mailed 242 monitoring letters to
homeowners on their affordability covenants and contracts to ensure continuing compliance.
Orange County Homeownership Preservation Collaborative (OCHOPC) and Orange County
Business Council Workforce Housing Committee-Participated in both of these regional committees,
addressing housing issues that affect Tustin residents and businesses.
Workforce Housing Reward Program-Submitted final documentation to close out the 2005 $124,000
award from HCD and recently received a check in the amount of $94,596 for the 2006 award. Staff is
in the process of completing the final documentation to close out the 2006 award. The funds will be
applied to costs associated with the new Library.
Economic Development/ and Other Miscellaneous Administration Topics
Legislation-Monitored and reviewed pending state legislation that impacts tax increment and
coordinated with the California Redevelopment Association (CRA) in providing information to fight
such additional state take-aways.
Support Marketing and Promotion of Old Town Tustin-Promoted Tustin Dining Guide and Farmers'
Market at the Chili Cook-off and Street Fair, Chamber of Commerce Business Expo, and the
materials are currently displayed at the City's "Concerts in the Park".
Audit-Coordinated with the Finance Department and Community Development to provide responses
to the City's Auditors.
Economic Development Material-Revised Marketing Brochure, Business Resource Guide, and
website materials are currently being reviewed. These materials will be used to support the Agency's
outreach efforts for business retention and expansion. In addition, the Agency is finalizing selection
of a firm to provide a Commercial Property Search feature on the City's website.
Industrial Development Bonds (IDB) -Coordinating with the California Statewide Communities
Development Authority (CSCDA) in expanded authorities granted for the issuance of Industrial
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Tustin Community Redevelopment Agency
Development Bonds ("IDBs") as a result of the passage of the American Recovery and Reinvestment
Act. CSCDA will mail revised marketing materials to targeted companies throughout the state and
provide the Agency with a list of the Tustin companies for our follow-up efforts.
Tustin Chamber of Commerce-Continued participation in the Chamber's Business and Economic
Development Council and provided input for the Council's "Totally Tustin" marketing program.
Jim's Music Center-Provided site location assistance and expedited permit and plan review
processing in Jim's Music's move from Irvine to Tustin. While they have been open for a few
months, they celebrated their Grand Opening on July 9, 2009.
Sales Tax Analysis-Coordinated with Community Development and Finance to insure the City
captured the sales tax generated from Temporary Use Permits issued for Enterprise Cars Sales One
Day Events held at Schools First Federal Credit Union. Updated Finance Department on retail lease
activity at "The Marketplace".
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