HomeMy WebLinkAbout09 USE RDA FUNDS FOR ROW ACQUISITION 12-01-09Agenda Item 9
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Reviewed:
AGENDA REPORT City Manager
Finance Director
MEETING DATE: DECEMBER 1, 2009
TO: WILLIAM HUSTON, CITY MANAGER AND RDA EXECUTIVE DIRECTOR
FROM: REDEVELOPMENT AGENCY AND PUBLIC WORKS STAFF
SUBJECT: BENEFIT RESOLUTIONS FOR USE OF MCAS TUSTIN
REDEVELOPMENT FUNDS FOR RIGHT-OF-WAY ACQUISITION, AND
DESIGN AND CONSTRUCTION OF TUSTIN RANCH ROAD
EXTENSION PROJECT IMPROVEMENTS FROM VALENCIA AVENUE
TO WALNUT AVENUE, INCLUDING RELATED RIGHT-OF-WAY
ACQUISITION AND IMPROVEMENTS IN THE VICINITY OF THE
INTERSECTION OF TUSTIN RANCH ROAD AND WALNUT AVENUE
SUMMARY
City Council and Redevelopment Agency consent is requested to allow the Tustin
Community Redevelopment Agency to expend MCAS Tustin Redevelopment Project
Area funds towards the costs of right-of-way acquisition, and design and construction of
the Tustin Ranch Road Extension Project improvements from Valencia Avenue to
Walnut Avenue, including related improvements in the vicinity of the intersection of
Tustin Ranch Road and Walnut Avenue.
RECOMMENDATION
It is recommended that the Tustin City Council adopt City Council Resolution No. 09-68.
It is recommended that the Tustin Community Redevelopment Agency adopt RDA
Resolution No. 09-03.
FISCAL IMPACT
Adoption of the attached resolutions will permit the Redevelopment Agency to utilize
MCAS Tustin Redevelopment Project Area funds towards the cost of acquisition of land,
and design and construction of certain street improvements identified as Tustin Ranch
Road Extension from Valencia Avenue to Walnut Avenue Project Improvements.
City Council Agenda December 1, 2009
Benefit Resolutions
Page 2
BACKGROUND
Section 33445 of California Community Redevelopment Law provides that a
Redevelopment Agency is authorized, with consent of a Redevelopment Agency and
legislative body, to pay all or a part of the costs of acquisition and construction of any
building, facility, structure, or other improvement which is to be publicly owned either
within or outside of a redevelopment project area provided certain findings are made by
the legislative body.
As part of the 2009-2010 Capital Improvement Budget, the Tustin Ranch Road
Extension (Project 7100) is identified to include Redevelopment Agency funding,
Measure "M" Growth Management Area 7 funds, and developer funds. The project
includes design and construction of Tustin Ranch Road between Valencia Avenue and
Walnut Avenue including construction of a bridge overpass structure over Edinger
Avenue, the Santa Ana-Santa Fe Channel, and the OCTA/SCRRA Railway in the City
of Tustin. The new six-lane major arterial will extend north to Walnut Avenue, including
related improvements in the vicinity of Walnut Avenue (east and west of Tustin Ranch
Road) and Tustin Ranch Road (between Walnut Avenue and I-5 interchange).
Findings of support are necessary for use of MCAS Tustin Redevelopment Project
funds to be utilized for any portion of the acquisition, design and/or construction of this
project. Supporting findings are attached in City Council Resolution No. 09-68 and RDA
Resolution No. 09-03.
Christine Shingleton,
Assistant City Manager
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Jo n Buchanan,
development Program Manager
s S. Stack,
Public Works Director
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RESOLUTION NO. 09-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN MAKING FINDINGS PURSUANT TO HEALTH AND
SAFETY CODE SECTION 33445 FOR RIGHT-OF-WAY
ACQUISITION, DESIGN AND CONSTRUCTION OF TUSTIN
RANCH ROAD EXTENSION PROJECT IMPROVEMENTS FROM
VALENCIA AVENUE TO WALNUT AVENUE, INCLUDING
RELATED RIGHT-OF-WAY AND IMPROVEMENTS IN THE
VICINITY OF THE INTERSECTION OF TUSTIN RANCH ROAD
AND WALNUT AVENUE
The City Council of the City of Tustin finds as follows:
A. Pursuant to the California Community Redevelopment Law (Health and
Safety Code Section 33000 et seq.), the Community Redevelopment Agency of the City
of Tustin (the "Agency") is carrying out the Redevelopment Plan (the "MCAS Tustin
Redevelopment Plan") for the MCAS Tustin Redevelopment Project (the "MCAS Tustin
Redevelopment Project"); and
B. Section 33445 of the California Community Redevelopment Law provides
that a redevelopment agency is authorized, with the consent of the legislative body, to
pay all or part of the value of the land for and the cost of the installation and
construction of any building, facility, structure, or other improvement which is publicly
owned either within or without the project area if the legislative body determines that: 1)
the buildings, facilities, structures, or other improvements are of benefit to the project
area or the immediate neighborhood in which the project is located, regardless of
whether the improvement is within another project area, or in the case of a project area
in which substantially all of the land is publicly owned that the improvement is of benefit
to an adjacent project area of the Agency; and 2) no other reasonable means of
financing the buildings, facilities, structures, or other improvements, are available to the
community; and 3) the payment of funds for the acquisition of land or the cost of
buildings, facilities, structures, or other improvements will assist in the elimination of one
or more blighting conditions inside the project area,. and is consistent with the
Implementation Plan adopted pursuant to Section 33490 of the Community
Redevelopment Law; and
C. The obligation of the Redevelopment Agency under the contract shall
constitute an indebtedness of the Agency for the purpose of carrying out the
redevelopment project for the project area, which indebtedness may be made payable
out of taxes levied in the project area and allocated to the agency under subdivision (b)
of Section 33670 or out of any other available funds; and,
D. Work has been completed on certain roadways within the MCAS Tustin
Redevelopment Project Area, including construction of Tustin Ranch Road from
Barranca Parkway to Warner Avenue; and
Resolution No. 09-68
Page 1
E. Two remaining portions of Tustin Ranch Road that will connect existing
completed portions of Tustin Ranch Road from Warner Avenue north to Walnut Avenue
remain to be completed: 1) Segment 1- a segment from Warner Avenue to Valencia
Avenue; and, 2) Segment 2-a segment from Valencia Avenue to Walnut Avenue. All
needE:d right-of-way and street improvements within Segment 1 are all completely
IocatE;d within the MCAS Tustin Redevelopment Project Area. A portion of the needed
right-of-way and street improvements within Segment 2 (the portion of Tustin Ranch
Road from Valencia Avenue to the southerly right-of-way line of Edinger Avenue as
determined as being 60 feet southwesterly of the Edinger Avenue centerline) is located
within the MCAS Tustin Redevelopment Project Area. The remaining portions of needed
right-of-way and street improvements (including portions of a bridge overcrossing of
Edinger Avenue) are contiguous to and immediately north of the MCAS Tustin Project
Area.
F. Remaining portions of the design, right-of-way acquisition, and
construction of Tustin Ranch Road from Valencia Avenue north to Walnut Avenue
inclucle a bridge overpass structure over Edinger Avenue, the Santa Ana-Santa Fe
Channel, and the OCTA/SCRRA Railway, and completion of a new six-lane major
arterial north to Walnut Avenue, including related improvements in the vicinity of Walnut
Avenue (east and west of Tustin Ranch Road) and Tustin Ranch Road (between
Walnut Avenue and I-5 interchange) (collectively, the "Street Improvements"); and
G. The Street Improvements are all located within the City of Tustin
boundaries outside of and contiguous to the MCAS Tustin Redevelopment Project Area
(the "MCAS Redevelopment Project"); and
H. The City has identified that certain additional real property is required for
completion of the Street Improvements and will need to be acquired by the City ("Right-
of-Way Property"); and
I. The Street Improvements have been identified in environmental impact
reports prepared for the MCAS Tustin Redevelopment Project and Tustin Legacy
Project as necessary to provide primary arterial access to the MCAS Tustin
Redevelopment Project and were identified as committed improvements in the Joint
Final Environmental Impact Statement/Environmental Impact Report for the Disposal
and Reuse of the Tustin Marine Corps Air Station certified by the City of Tustin on
January 16, 2001,and a Supplement to the FEIS/EIR for the Reuse and Disposal of
MCAS Tustin Environmental Impact Report for the Extension of Tustin Ranch Road
betwE:en Walnut Avenue and the Future Alignment of the Valencia North Loop was
certified on December 6, 2004 and an Addendum to the FEIS/EIR was adopted on April
3, 2006 (collectively, the "Final Program EIR"); and
J. Additional costs are now anticipated as a result of a reduced payment
from the Irvine Company for the acquisition of Right-of-Way Property and design and
construction of Street Improvements for Segment 2, increasing costs for the Project.
Resolution No. 09-68
Page :S
K. Without securing additional financing for the Right-of-Way Property and
Street Improvements, implementation of the MCAS Tustin Redevelopment Project,
including, without limitation, the Tustin Legacy Project would be significantly negatively
impacted in that the inability to construct these Street Improvements would result in
delays and preclude the full implementation of the MCAS Tustin Redevelopment Project
and the Tustin Legacy Project.
II. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. In accordance with section 33445(a)(1) of the Community
Redevelopment Law, the City Council hereby finds and determines that the costs
for acquisition of land, engineering design, permits, and the installation and
construction of the Street Improvements will benefit the MCAS Tustin
Redevelopment Project Area. The foregoing finding is based on the following
facts:
(a) The Right-of-Way Property and Street Improvements are necessary
to support the Tustin Legacy Project which is located within the MCAS Tustin
Redevelopment Project Area.
(b) The Final Program EIR assumes the Right-of-Way Property and
completion of the Street Improvements in order to provide improved traffic
circulation within the project and mitigate unacceptable levels of service at key
intersections.
(c) Currently, the Tustin Legacy Project is a dilapidated neighborhood
with blight that has been declared surplus former military property and has been
partially redeveloped yet remains largely undeveloped since the site was vacated
by the military. The Tustin Police Department reports that, in its present state,
the MCAS Tustin Project attracts constant trespassers and vandals.
(d) The Tustin Legacy Project will improve the MCAS Tustin
Redevelopment Project Area by transforming this blight into awell-maintained
master planned community which provides the following community benefits:
elimination of blighting influences in the MCAS Tustin Redevelopment Project
Area by placing vacant parcels of land into productive use; the assembly of land
into parcels suitable for modern, integrated development with improved
pedestrian and vehicular circulation in the MCAS Tustin Redevelopment Project
Area; the reuse and redevelopment of portions of the MCAS Tustin
Redevelopment Project Area which are improperly utilized, the strengthening of
the economic base of the MCAS Tustin Redevelopment Project Area by
stimulating new investment and economic growth; the creation of job
opportunities; the expansion and improvement of the community's supply of
affordable housing, and the installation of new or replacement of existing public
Resolution No. 09-68
Page 4
improvements, facilities and utilities in areas currently inadequately served with
regard to such improvements, facilities and utilities.
(e) The Right-of-Way Property and Street Improvements are required
to provide primary access routes to the Tustin Legacy Project and to connections
to regional transportation systems including the Interstate 5 via the existing
interchange at Tustin Ranch Road and the I-5.
(f) Construction of the Street Improvements will also benefit the MCAS
Tustin Redevelopment Project Area by stimulating and encouraging the build-out
of the Tustin Legacy Project and avoiding delays in full implementation of that
project.
Section 2. In accordance with section 33445(a)(1) of the Community
Redevelopment Law, the City Council hereby finds and determines that
acquisition of Right-of-Way Property and construction of the Street Improvements
will benefit the immediate neighborhood of the MCAS Tustin Redevelopment
Project Area. The foregoing finding is based upon the following facts:
(a) A portion of the Street Improvements are located within the MCAS
Tustin Redevelopment Project Area and a portion of the Street Improvements
proposed outside of the boundaries of the MCAS Tustin Redevelopment Project
Area are still located immediately adjacent and contiguous to the MCAS Tustin
Redevelopment Project Area.
(b) The Street Improvements will improve the carrying capacity of the
public streets which serve as the primary access routes for both the MCAS
Tustin Redevelopment Project Area and the areas adjacent to the project area,
including connections to regional transportation systems, thereby assisting in
transforming the MCAS Tustin Redevelopment Project Area from its current state
of dilapidation into community assets.
Section 3. In accordance with Section 33445(a)(2) of the Community
Redevelopment Law, the Agency hereby finds and determines that there are no
other reasonable means available to the community for financing the additional
Right-of-Way Property acquisition costs and for the installation or construction of
the Street Improvements to be paid for by the Agency. While common sources
of financing Street Improvements include the Gas Tax, General Fund,
Redevelopment Agency capital project fund, and State and Federal Highway
Grants, these sources have are exhausted and not reasonably available to the
community for financing the additional acquisition and construction costs.
Specifically:
(a) Gas Tax. Revenue in the gas tax fund has declined, resulting in
insufficient gas tax funding for capital projects to allocate for the additional costs
anticipated for the Right-of-Way Property and Street Improvements.
Resolution No. 09-68
Page 5
(b) General Fund. The City has been unable to appropriate funds
towards the Right-of-Way Property and Street Improvements. Increasing
operating costs and more significantly declining revenues have reduced General
Funds available for capital improvement projects. Specifically, increases in
retirement and workers compensation costs and revenue losses due to current
economic conditions and the State's confiscation of City generated revenues
have prevented the general fund from funding the increased costs of the Street
Improvements as a capital project funding source.
(c) State and Federal Highway Grants. Historically, road projects in the
City have received significant funding from State and Federal Highway Grants
which are administered and allocated through the Orange County Transportation
Agency (the "OCTA"). Economic conditions in the region and state have
depleted the availability of this revenue source for the City this fiscal year and in
subsequent fiscal years.
Section 4. In accordance with Section 33445(a)(3) of the Community
Redevelopment Law, the City Council hereby finds and determines that the
payment of funds for the cost of land or the cost of installation and construction
of the Street Improvements will assist in the elimination of one or more blighting
conditions inside the MCAS Tustin Redevelopment Project Area. The foregoing
finding is based on the following facts:
(a) As set forth in the Community Redevelopment Law, the existence
of buildings such as those that exist within the MCAS Tustin Redevelopment
Project Area, in which it is unsafe or unhealthy for persons to live or work, are
conditions that cause blight.
(b) Large portions of the Tustin Legacy Project have been vacant since
the land was vacated by the military. Dilapidated buildings located in the former
base were designed primarily for military-specific aviation operations and these
buildings do not have the appropriate capacity or utility for civilian reuse, nor
would they be compatible or consistent with the current market uses identified in
the Redevelopment Plan for the MCAS Tustin Redevelopment Project Area.
(c) Structures in the Tustin Legacy Project are both unsafe and
unhealthy as they lack many services such as basic plumbing and electricity and
do not meet basic habitability standards. Infrastructure and utilities also
represent a major constraint to the effective development of the Tustin Legacy
Project, requiring significant new installations and replacements.
(d) Both on-site and off-site transportation/circulation systems within
the MCAS Tustin Redevelopment Project Area lack the additional capacity
needed to serve uses proposed with the Tustin Legacy Project without major new
street improvements to enhance capacity.
Resolution No. 09-68
Page 6
(e) Development of the Tustin Legacy Project will replace the existing
blighted conditions within the MCAS Tustin Redevelopment Project Area with a
modern, safe and well-maintained master planned community. Acquisition of
Right-of-Way Property and construction of the Street Improvements are
necessary for the development of the Tustin Legacy Project.
Section 5. In accordance with Section 33445(a)(3) of the Community
Redevelopment Law, the City Council hereby finds and determines that payment of
funds for the cost land for and the cost of construction and installation of the Street
Improvements is consistent with the MCAS Tustin Redevelopment Plan and the
Five-Year Implementation Plan adopted by the Agency for the MCAS Tustin
Redevelopment Project Area pursuant to Section 33490 of the Community
Redevelopment Law. The foregoing finding is based upon the following facts:
(a) Attachment 3 of the MCAS Tustin Redevelopment Plan specifically
identifies as an authorized use of Agency resources off-site transportation
circulation mitigation which would add lanes, change lane movements, or
enhance intersections to increase roadway capacity to reduce any impacts of
development within the MCAS Tustin Redevelopment Project Area and to
increase operational efficiency. This includes the acquisition of additional rights-
of-way necessary for the off-site transportation/circulation improvements for the
benefit of the Project Area.
(b) The Agency's Second Five-Year Implementation Plan for MCAS
Tustin, dated June 2008, (the "Implementation Plan") anticipated the design,
construction, and acquisition of right-of-way associated with the Street
Improvements occurring during the following five year period. The improvement
and/or extension of existing roadway systems is specifically identified, including
off-site roadway EIS/EIR traffic mitigations/dedications. The installation of such
improvements is for the express purpose of aiding in the redevelopment of the
MCAS Tustin Redevelopment Project, eliminating blight and providing the
community benefits articulated above.
Section 6. The City Council hereby approves and authorizes the Executive
Director and his Assistant Executive Director to pay from Agency funds derived from
the MCAS Tustin Redevelopment Project the cost of acquisition of land, design, or
installation and construction of the Street Improvements, as defined herein (and
including engineering design and legal costs), in the amount necessary and
consistent with any appropriation amounts contained in the City's approved Capital
Improvement Program.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 1St day of December, 2009.
Resolution No. 09-68
Page 7
DOUG DAVERT
MAYOR
PAMELA STOKER
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution No. 09-68 was duly
passed and adopted at a regular meeting of the City Council of the City of Tustin, held on
the 1St day of December, 2009 by the following vote:
CITY COUNCIL MEMBER AYES:
CITY COUNCIL MEMBER NOES:
CITY COUNCIL MEMBER ABSTAINED:
CITY COUNCIL MEMBER ABSENT:
PAMELA STOKER
CITY CLERK