HomeMy WebLinkAbout01 SALE OF AGENCY OWNED PROPERTIES AR 14741 ABD 14751 NEWPORT AVENURE AND THEIR PURCHASE BY THE CITY OF TUSTIN 01-19-10Agenda Item • Reviewed: AGENDA REPORT Ciry Manager Finance Director MEETING DATE: JANUARY 19, 2010 TO: WILLIAM A. HUSTON, CITY MANAGER 8~ AGENCY EXECUTIVE DIRECTOR FROM: REDEVELOPMENT AGENCY STAFF SUBJECT: SALE OF AGENCY OWNED PROPERTIES AT 14741 AND 14751 NEWPORT AVENUE AND THEIR PURCHASE BY THE CITY OF TUSTIN SUMMARY: The action requests approval of the Tustin Community Redevelopment Agency's sale of properties located at 14741 and 14751 Newport Avenue ('subject properties") and the purchase of the subject properties by the City of Tustin. RECOMMENDATION: It is recommended that the Tustin City Council: 1. Adopt Resolution No. 10-12;finding that the Project is within the scope of a previously approved Environmental Impact Report (EIR) 90-01 and Supplement No. #1 to the Final EIR 90-01 and that no additional environmental analysis, action or document is required by CEQA. 2. Adopt Resolution No. 10-04 Making Findings Pursuant to Health and Code Section 33433 for the Sale of Properties Purchased by the Tustin Community Redevelopment Agency of the City of Tustin Using Housing Set Aside Tax Increment Moneys Located at 14741 and 14751 Newport Avenue within the South Central Project Area authorizing the Agency's sale of the subject properties to the City and authorizing the City Manager or Assistant City Manager to execute all necessary documents and take all actions necessary to implement the Agency's sale and the City's purchase of the subject properties. 3. Appropriate $533,000 from the current unappropriated fund balance in the CIP fund for the City's acquisition of the subject properties and upon closing of the subject transaction, and subtraction of any transaction costs from the purchase price, authorize the City to deposit such funds into the South Central Redevelopment Project Area Low and Moderate Income Housing Set Aside Fund, minus any transaction costs. City Council Agenda January 19, 2010 14741 and 14751 Newport Avenue Page 2 It is recommended that the Tustin Community Redevelopment Agency: 1. Adopt RDA Resolution No. 10-03 finding that the Project is within the scope of a previously approved Environmental Impact Report (EIR) 90-01 and Supplement No. #1 to the Final EIR 90-01 and that no additional environmental analysis, action or document is required by CEQA. 2. Adopt Resolution No. 10-01 Making Findings Pursuant to Health and Code Section 33433 for the Sale of Properties Purchased by the Tustin Community Redevelopment Agency of the City of Tustin Using Housing Set Aside Tax Increment Moneys Located at 14741 and 14751 Newport Avenue Within the South Central Project Area authorizing the Agency's sale of the Subject Properties to the City and authorizing the Executive Director or Assistant Executive Director to execute all necessary documents and take all actions necessary to implement the Agency's sale and the City's purchase of the subject properties. FISCAL IMPACT: The City would pay a total of $533,000 for acquisition of the subject properties, less any transactional expenses. A fiscal analysis of the proposed sale of the subject properties to the City is provided in the report prepared pursuant to Health and Safety Code Section 33433 and attached as Exhibit B to City Council Resolution No. 10-04. BACKGROUND: The Agency authorized and Agency staff closed escrow on January 7, 2000 on eight units along Newport Avenue on two properties at 14741 and 14751 Newport Avenue within the South Central Project Area using Low and Moderate Income Housing Set Aside Funds. California Health and Safety Code Section 3334.16 requires that for each interest in property acquired using moneys from the Low and Moderate Income Housing Set Aside Fund, the Agency shall within five (5) years from the date that it acquires the property, initiate activities consistent with the development of the property for low and moderate income purposes. If these activities have not been initiated within this initial period, the City Council had the authority to extend the period during which the Agency may retain the property for one additional period not to exceed five (5) years. The Agency took an City Council Agenda January 19, 2010 14741 and 14751 Newport Avenue Page 3 action to authorize the five (5) year extension on January 3, 2005 with the adoption of Resolution No. 05-06. Although planning efforts as part of the Town Center New Beginnings Project were initiated within the last extension period, physical development of the Subject Properties for low and moderate income housing was unable to proceed until the right-of-way needs associated with the Newport Avenue Extension Phase II Project (the "Newport Avenue Improvements", CIP 7131) were more clearly defined as well as a definitive funding source for construction of the Newport Avenue Improvements. Provisions of Section 33334.16 of the Health and Safety Code state that if development of the property for affordable housing has not begun by the end of the extended period (which expired January 7, 2010), the property must be sold and moneys from the sale, less reimbursement to the Agency for the cost of the sale, shall be deposited into the Agency's Low and Moderate Income Housing Fund. Further, Section 33433 of the Health and Safety Code requires that the City Council, after a public hearing, approve an Agency sale of property that was acquired in whole or part with tax increment moneys. Since a large portion of the subject properties is still needed for right-of=way needs associated with future Newport Avenue Improvements, it is appropriate for the Agency to sell the subject properties to the City. Any remaining portions of the subject properties not needed for right-of-way purposes after construction of the Newport Avenue Improvements would then be marketed for uses consistent with the South Central Redevelopment Plan and the Tustin General Plan and City Code. A summary of terms of conditions for the proposed Agency sale to the City are included in the attached Summary Report pertaining to the Sale of Real Property at 14751 and 14741 Newport Avenue (California Community Redevelopment Law Section 33433) prepared by Keyser Marston Associates ("KMA"). The proposed agreement between the Agency and City for the sale of the subject properties provides for the payment by the City to the Agency of a purchase price of $533,000, less any transaction expenses for the sale. This purchase price to be paid by the City to the Agency is not less than and equal to the reuse value of the land as determined by KMA. The proposed sale of the Agency property conforms with objectives defined in the Third Five Year Implementation Plan for the South Central Project Area adopted by the Agency in December 2004 for Fiscal Year 2005/06 to Fiscal Year 2009-10. Newport Avenue Improvements have been identified in the Redevelopment Plan and City Council Agenda January 19, 2010 14741 and 14751 Newport Avenue Page 4 Implementation Plan as critical and necessary public improvements in the elimination of blight and in relieving traffic congestion, providing better emergency services, and increasing traffic capacity. Any remaining portions of the subject properties not needed for right-of-way will be utilized for redevelopment purposes which will also eliminate blight and which is also consistent with the Implementation Plan. The Planning Commission at their regular meeting on January 12, 2010 determined that the City's purchase of the subject properties is consistent with the General Plan pursuant to the requirements of Government Code Section 65402(c). Under the California Environmental Environmental Quality Act, the Agency and City must consider the potential environmental impacts of any discretionary actions. Staff have determined based on an initial study that project is within the scope of a previously approved Final Environmental Impact Report (EIR) 90-01 for the Pacific Center East Specific Plan, including a Supplement 1 to EIR 90-01 certified by the Tustin City Council on May 5, 2003 and that no additional environmental analysis, action or document is required by CEQA. Christine A. Shingle Assistant City Man er Attachments 1. City Council Resolution No. 10-12 2. City Council Resolution No. 10-04 3. Agency Resolution 10-03 4. Agency Resolution 10-01 5. Summary Report Pertaining to the Sale of Real Property at 14741 and 14751 Newport Avenue RESOLUTION NO. 10-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, FINDING THAT PURSUANT TO PUBLIC RESOURCES CODE SECTION 2116 AND SECTION 15168(c) OF STATE CEQA GUIDELINES THE PROJECT IS WITHIN THE SCOPE OF THE FINAL ENVIRONMENTAL IMPACT REPORT (EIR) 90-1 AND FINAL SUPPLEMENT #1 TO EIR 90-1 AND NO NEW ENVIRONMENTAL DOCUMENT IS REQUIRED; APPLICABLE MITIGATION MEASURES HAVE BEEN INCORPORATED INTO THE PROJECT The City Council of the City of Tustin does hereby resolve as follows: The City Council finds and determines as follows: A. That the sale of the properties at 14741 and 14751 Newport Boulevard from the Tustin Community Redevelopment Agency to the City pursuant to which the City would utilize the properties for required right-of-way at the northwest corner of Newport Avenue and Sycamore Avenue for the proposed future improvements to Newport Avenue and then dispose of the remaining property not needed for right-of-way purposes for future redevelopment is considered a "Project" pursuant to the terms of the California Environmental Quality Act; B. Final Environmental Impact Report (EIR) 90-1 for the Pacific Center East Specific Plan, including the proposed extension of Newport Avenue, certified by the Tustin City Council on December 17, 1990, and Supplement #1 to Final EIR 90-1 for the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" project certified by the Tustin City Council on May 5, 2003. Conveyance of the subject property was envisioned originally as necessary to support construction of the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" project as previously considered in Supplement #1 to EIR 90-1; and, C. That an initial study checklist, attached as Exhibit A hereto, was prepared to evaluate the potential impacts associated with the Project. The initial study checklist demonstrates that all potential impacts of the Project were addressed by the certified Final EIR 90-1 and Supplement #1, no additional impacts have been identified or substantial increase in the severity of any previously identified significant impacts in the Final EIR 90- 1 and Supplement #1 have been identified, and all applicable mitigation Resolution No. 10-12 Page 2 measures will be implemented through the Mitigation Monitoring Program for the Project (Attachment 2 of Exhibit A). II. The City Council hereby finds the Project is within the scope of the previously approved Final Environmental Impact Report (EIR) 90-1 for the Pacific Center East Specific Plan, including the proposed extension of Newport Avenue, certified by the Tustin City Council on December 17, 1990, and Supplement #1 to Final EIR 90-1 for the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" Project certified by the Tustin City Council on May 5, 2003; that no substantial changes are proposed in the Project or have occurred with respect to circumstances under which the Project is being undertaken since certification of the EIR and Supplement #1; no new information has become available since the certification of the EIR and Supplement #1, and pursuant to Public Resources Code Section 2116 and the requirements of CEQA regulations promulgated with respect thereto including Title 14 California Code of Regulations Sections 15162 and 15168(c), no additional environmental analysis, action or document is required by the CEQA. PASSED AND ADOPTED at a regular meeting of the Tustin City Council held on the 19th day of January 2010. JERRY AMANTE, Mayor PAMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) 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 Resolution No. 10-12 Page 3 No. 10-12 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day of January 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER CITY CLERK EXHIBIT A RESOLUTION 10-12 Exhibit A of Resolution No. 10-12 Environmental Analysis Checklist For Projects With Previously Certified/Approved Environmental Documents: Final Environmental Impact Report (EIR) 90-1 and Supplement #1 to Final EIR 90-1 For the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" Project EXHIBIT A OF RESOLUTION NO. 10-12 COMMUNITY DEVELOPMENT DEPARTMENT 300 Centennial Way, Tustin, CA 92780 (714) 573-3100 ENVIRONMENTAL ANALYSIS CHECKLIST For Projects With Previously Certified/Approved Environmental Documents: Final Environmental Impact Report (EIR) 90-1 and Supplement #1 to Final EIR 90-1 For the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" Project This checklist and the attached evaluation of environmental impacts (Attachment 1 of Exhibit A of Resolution No. 10-12) takes into consideration the prepazation of an environmental document prepazed at an eazlier stage of the proposed project. The checklist and evaluation evaluate the adequacy of the earlier document pursuant to Section 15162 and 15168 of the California Environmental Quality Act (CEQA) Guidelines. A. BACKGROUND Project Title(s): Newport Avenue Extension Property Conveyances Pursuant to Health and Safety Code Section 33433 Lead Agency: City of Tustin, 300 Centennial Way, Tustin, California 92780 Lead Agency Contact Person: Ms. Christine A. Shingleton Phone: (714) 573-3107 Project Location: 14741 and 14751 Newport Boulevard Project Sponsor's Name and Address: City of Tustin 300 Centennial Way Tustin, California 92780 General Plan Designation: High-Density Residential Zoning Designation: R-3 (Multiple-Family Residential) Project Description: The Tustin Community Redevelopment Agency proposes to sell the properties at 14741 and 14751 Newport Boulevazd to the City pursuant to which the City would utilize the properties for required right-of--way at the northwest corner of Newport Avenue and Sycamore Avenue for the proposed future improvements to Newport Avenue and then dispose of the remaining property not needed for right- of-way purposes for future redevelopment consistent with the South Central Project Area Redevelopment Plan, the Tustin General Plan and Tustin City Code. Conveyance of the subject property was envisioned originally as necessary to support construction of the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" Project as previously considered in Supplement #1 to EIR 90-1. Surrounding Uses: North and West: Residential South: Residential (across Sycamore Avenue and Newport Avenue) East: Office/Commercial (across Newport Avenue) Previous Environmental Documentation: Final Environmental Impact Report (Program EIR) 90-1 for the Pacific Center East Specific Plan, including the proposed extension of Newport Avenue, certified by the Tustin City Council on December 17, 1990, and Supplement #1 to Final EIR 90-1 for the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" Project certified by the Tustin City Council on May 5, 2003. B. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist in Section D below. ^Land Use and Planning ^Population and Housing ^Geology and Soils ^Hydrology and Water Quality ^Air Quality ^Transportation & Circulation ^Biological Resources ^Mineral Resources ^Agricultural Resources ^Hazards and Hazardous Materials ^Noise ^Public Services ^Utilities and Service Systems ^Aesthetics ^Cultwal Resowces ^Recreation ^Mandatory Findings of Significance C. DETERMINATION: On the basis of this initial evaluation: ^ I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. ^ I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measwes described on an attached sheet have been added to the project. A NEGATIVE DECLARATION will be prepared. ^ I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. ^ I find that the proposed project MAY have a significant effect(s) on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pwsuant to applicable legal standards, and 2) has been addressed by mitigation measwes based on the earlier analysis as described on attached sheets, if the effect is a "Potentially Significant Impact" or "Potentially Significant Unless Mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. ® I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects 1) have been analyzed adequately in an eazlier EIR pursuant to applicable standazds, and 2) have been avoided or mitigated pursuant to that eazlier EIR, including revisions or mitigation measures that aze imposed upon the proposed project. ^ I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects 1) have been analyzed adequately in an earlier NEGATIVE DECLARATION pursuant to applicable standazds, and 2) have been avoided or mitigated pursuant to that eazlier NEGATIVE DECLARATION, including revisions or mitigation measures that aze imposed upon the proposed project. Prepazer: V'/ ~ Date: ~ 2 ~ 3 d Ma West, Redevelopment Project Manager Christine A. Shingleton, Assist City Manager D. EVALUATION OF ENVIRONMENTAL IMPACTS Date ~ L3 See Attached EVALUATION OF ENVIRONMENTAL IMPACTS I. AESTHETICS -Would the project: a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway'? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? II. AGRICULTURE RESOURCES: In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non- agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? c) Involve other changes in the existing environment which, due to their location or natwe, could result in conversion of Farmland, to non-agricultural use? III. AIR QUALITY: Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non- attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis ^ ^ ^ ^ ^ ^ a o o a ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ IV. BIOLOGICAL RESOURCES: -Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, venial pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? V. CULTURAL RESOURCES• -Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in § 15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to ~ 15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside of formal cemeteries? VI. GEOLOGY AND SOILS: -Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis ^ ^ D D D D ^ ^ ^ ^ D D ^ ^ D ^ D ^ ^ ^ No Substantial New More Change From Sign cant Severe Previous Impact Impacts Analysis i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? iv) Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of waste water? VII.HAZARDS AND HAZARDOUS MATERIALS: Would the project: a) Create a significant hazazd to the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazazd to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazazdous emissions or handle hazazdous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazazd to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project azea? ^ ^ o a ^ a ^ ^ o a ^ ^ ^ ^ O ^ ^ a ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or'death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? VIII. HYDROLOGY AND WATER QUALITY: -Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre- existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or ofd site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? e) Create or contribute runoff' water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? ~ Otherwise substantially degrade water quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard azea structures which would impede or redirect flood flows? i) Expose people or structures to a significant risk of loss, injury or death involving flooding as a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? IX. LAND USE AND PLANNING- Would the project: a) Physically divide an established community? No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis ^ a o a o a ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ D ^ o a b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community conservation plan? X. MINERAL RESOURCES -Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of alocally-important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? XI. NOISE - Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excess noise levels? XII.POPULATION AND HOUSING -Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? No Substantial New More Change From Signiftcant Severe Previous Impact Impacts Analysis ^ ^ D ^ ^ ^ ^ ^ D D D D ^ ^ ^ ^ ^ ^ ^ ^ D ^ n n ~ No Substantial New More Change From Signiftcant Severe Previous Impact Impacts Analysis c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? ^ ^ XIII. PUBLIC SERVICES a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? ^ ^ Police protection? ^ ^ Schools? ^ ^ Parks? ^ ^ Other public facilities? ~ ^ ^ XIV. RECREATION - a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? ^ ^ b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? ^ ^ XV. TRANSPORTATION/TRAFFIC -Would the project: a) Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e. result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? ^ ^ b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? ^ ^ c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? ^ ^ d) Substantially increase hazards due to a design feature (e.g. sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? ^ ^ e) Result in inadequate emergency access? ^ ^ f) Result in inadequate parking capacity? I-1 i-I 141 g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? XVI. UTILITIES AND SERVICE SYSTEMS - Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Boazd? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or aze new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? XVII. MANDATORY FINDINGS OF SIGNIFICANCE a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a raze or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory'I b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project aze considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis ^ ^ D D D D ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ D D Exhibit A of Resolution No. 10-12 Attachment 1 of 2 Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Pursuant to Health and SafetyCode Section 33433 EVALUATION OF ENVIRONMENTAL IMPACTS NEWPORT AVENUE EXTENSION PROPERTY CONVEYANCES PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433 PREVIOUS ENVIRONMENTAL DOCUMENTATION On December 17, 1990, the Tustin City Council certified Final Environmental Impact Report (E1R) 90-1 (the "FEIR 90-1") for the Pacific Center East Specific Plan in accordance with the California Environmental Quality Act (CEQA). The Specific Plan project proposed the development of an 8.9 acre commercial center, 33.2 acre regional center, 36.7 acre office center, and 44.2 acre technology center. The project approved in 1990 included the proposed extension of Newport Avenue and the reconfiguration of the SR 55 interchange at Edinger Avenue as part of-the circulation system improvements within the Specific Plan area. Subsequent to certification of FEIR 90-1, refinements occurred to the circulation system improvements, including widening of Valencia Avenue and Edinger Avenue. Additional environmental analysis was performed per Section 15163 of the CEQA Guidelines for project refinements referred to as the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" (the "Newport Avenue Extension Project"); the Tustin City Council certified Final Supplement #1 to EIR 90-1 ("Supplement #1") on May 5, 2003. The FEIR 90-1 and Supplement #1 analyzed amulti-phase development period for the planned Pacific Center East Specific Plan and Newport Avenue Extension Project. When individual activities in Pacific Center East Specific Plan and Newport Avenue Extension Project are proposed, the City is required to examine the individual activities to determine if their effects were fully analyzed in the FEIR 90-1 and Supplement #1. The City can approve the activities as being within the scope of the project covered by the FEIR 90-1 and Supplement #1. If the City finds that pursuant to Sections 15162, 15164, and 15183 of the CEQA Guidelines no new effects would occur, nor would a substantial increase in the severity of previously identified significant effects occur, then no supplemental or subsequent environmental document is required. Conveyance of the subject properties was envisioned originally as necessary to support completion of the Newport Avenue Extension Project. The proposed sale of the properties at 14741 and 14751 Newport Avenue from the Tustin Community Redevelopment Agency to the City of Tustin (the "Project") pursuant to which the City would utilize the properties for required right-of--way at the northwest corner of Newport Avenue and Sycamore Avenue for the proposed future improvements to Newport Avenue and then dispose of the remaining property not needed for right-of--way purposes for future redevelopment, the City prepared a comprehensive Environmental Checklist and the analysis provided below to determine if the Project is within the scope of the FEIR 90-1 and Supplement #1 and if new effects would occur as a result of the project. PROJECT LOCATION The Project sites are located in the southwest portion of the City of Tustin, which is in central Orange County. The properties subject to the conveyance are located 14741 and 14751 Newport Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 2 Avenue at the northwest corner of Newport Avenue and Sycamore Avenue. The properties are located in the northern portion (Phase II) of the Newport Avenue Extension Project and would be utilized for required right-of--way for improvements to the intersection of Newport Avenue and Sycamore Avenue. PRESENT CONDITIONS OF THE PROPERTY The Project consists of two 0.2-acre pazcels, both of which aze currently owned by the Tustin Community Redevelopment Agency and aze each developed with atwo-story, four-unit apartment building (4,216 squaze feet) constructed in 1967. The sale of the properties at fair market value from the Tustin Community Redevelopment Agency to the City of Tustin will result in transfer of property ownership to the City of Tustin with the Agency retaining under contract to the City property management responsibilities until any remaining portion of the property not needed for right-of--way is transferred by the City to a private entity for development. EVALUATION OF ENVIRONMENTAL IMPACTS The following information provides background support for the conclusions identified in the Environmental Analysis Checklist. I. AESTHETICS -Would the project: a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but not Umited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare, which would adversely affect day or nighttime views in the area? No Substantial Change from Previous Analysis. Acquisition and development activities related to the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. There are no designated scenic vistas or scenic state highway in the vicinity; therefore, the proposed conveyance would not result in a substantial adverse effect on a scenic vista or scenic state highway. The proposed conveyance would not change the conclusions of the analysis from the FEIR 90-1 and Supplement #1 relative to these visual changes. . The proposed conveyances are necessary to continue supporting development of Newport Avenue improvements as envisioned with the Extension Project and would not modify the Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 3 land use plan adopted by the City Zoning Code. No change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1 Mitigation/Monitoring Required: The mitigation measures applicable to the Project have been implemented with adoption of Newport Avenue Extension Project. No refinements need to be made to the FE1R 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan II. AGRICULTURE RESOURCES - In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (199'n prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? b) Conflict with existing zoning for agricultural use or a Williamson Act contract? c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland to non-agricultural use? No Substantial Change from Previous Analysis The proposed Project will not directly cause any impacts to agricultural resources since the subject properties are fully developed. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. The Project is within the scope of the Newport Avenue Extension Project as that identified in the FEIR 90-1 and Supplement #1. Implementation of the proposed Project would not impact areas mapped as Prime Farmland. Additionally, the properties have been developed as apartment buildings since 1967 and there are no areas subject to a Williamson Act contract. Implementation of the proposed Project would not change the impact conclusions presented in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required.• The mitigation measures applicable to the Project have been implemented with adoption of Newport Avenue Extension Project. No refinements Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 4 need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FE1R 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan III. AIR QUALITY -Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions that exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? No Substantial Change from Previous Analysis The proposed Project will not directly cause any air quality impacts. Development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. FEIR 90-1 and Supplement #1 determined that regional ambient air quality conditions, combined with regional cumulative traffic, contribute to the exceedance of daily State and Federal standazds for several air pollutants. Consequently, mitigation measures were identified in FEIR 90-1 and Supplement #1 to minimize these impacts. However, a Statement of Overriding Considerations was adopted for cumulative air quality impacts that could not be mitigated. A Statement of Ovemding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003, to address significant unavoidable short-term, long-term, and cumulative air quality impacts. Mitigation/Monitoring Required: Specific mitigation measures have been adopted by the Tustin City Council in certifying the FEIR 90-1 and Supplement #1 for operational and construction activities. However, the Supplement #1 also concluded that the related operational air quality impacts were significant and could not be fully mitigated. A Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 5 Statement of Overriding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003 (Resolution No. 03-72). No new mitigation measure is required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan IV. BIOLOGICAL RESOURCES -Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional or state habitat conservation plan? 1Vo Substantial Change from Previous Analysis The proposed Project will not directly cause impacts to any biological resources. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. The FEIIt 90-1 and Supplement #1 found that implementation of the Newport Avenue Extension Project would not result in any potential impacts related to the change of diversity Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 6 of species, reduction of the number of unique or endangered species of plant life, or the introduction of new plant life into the area. No new impacts have been identified. Mitigation/Monitoring Required: No mitigation is required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan V. CULTURAL RESOURCES -Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in §15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to § 15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside formal cemeteries? No Substantial Change from Previous Analysis The proposed will not directly cause impacts to any cultural resources. Development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. MitigationJMonitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures aze included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures aze required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan VI. GEOLOGY AND SOILS -Would the project: Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 7 a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: • Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning map, issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. • Strong seismic ground shaking? • Seismic-related ground failure, including liquefaction? • Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (2001), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? No Substantial Change from Previous Analysis Acquisition and Development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. The physical impacts resulting from Newport Avenue Extension Project will involve grading, soil erosion and loss of topsoil but will not appreciably alter topography in the area, particularly on the subject properties. The Newport Avenue Extension Project would not expose people or structures to adverse effects involving earthquake faults, seismic ground shaking, liquefaction, landslides or expansive soils. Development activities have been previously considered within the FEIR 90-1-and Supplement #1 and have been found to have no demonstrable negative geology or soil effect on the site. No substantial change is expected for development of the project from the analysis previously completed in the FEIS/E1R for MCAS Tustin and Addendum. Mitigation measures are included to reduce the roadway extension freeway ramp improvements and roadway widening impacts on geology and soils to a level of insignificance. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 8 Mitigation/Morritoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement # 1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FE1R 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan VII. HAZARDS AND HAZARDOUS MATERIALS -Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonable foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles or a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? No Substantial Change from Previous Analysis Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FE1R 90-1 and Supplement #1 and have been found to have no new effects, nor would a Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 9 substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. Mitigation measures have been incorporated in the FE1R 90-1 and Supplement 90-1 and no substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FE1R 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Airport Environs Land Use Plan (AELUP) Tustin General Plan VIII. HYDROLOGY AND WATER QUALITY -Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge, such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in flooding on- or off-site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner, which would result in flooding on- or off-site? e) Create or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood hazard Boundary of Flood Insurance Rate Map or ~ other flood hazard delineation map? h) Place within a 100-year flood hazard area structures, which would impede or redirect flood flows? Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 10 i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? No Substantial Change from Previous Analysis Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Compliance with existing rules and regulations would reduce any potential impacts related to water quality and groundwater to a level of insignificance and no additional mitigation is required for the Project. Mitigation Measures related to hydrology and drainage were certified by the Tustin City Council in FEIR 90-1 and Supplement #1; these measures aze included in the Mitigation Monitoring Program for the project or as conditions of approval for the project. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan IX. LAND USE AND PLANNING -Would the project: a) Physically divide an established community? b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited, to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community conservation plan? No Substantial Change from Previous Analysis The proposed Project will not directly cause impacts to land use and planning, or conflict with any habitat conservation plan. or natural community conservation plan. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 11 The proposed Project will comply with the Mitigation Measures related to Land Use as identified in FEIR 90-1 and Supplement #1, including conveyance of the properties to the City at reuse value as identified in the "Summary Report Pertaining to the Sale of Real Property at 14751 and 14741 Newport Avenue" prepazed by Keyser Marston Associates ("KMA"). Mitigation measures have been incorporated in the FEIR 90-1 and Supplement #1 and no substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FE1R 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures aze required. Sources.• Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan "Summary Report Pertaining to the Sale of Real Property at 14741 and 14751 Newport Avenue" prepazed by KMA X. MINERAL RESOURCES -Would the project: a) Result in the loss of availability of a known mineral resource that would be a value to the region and the residents of the state? b) Result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? No Substantial Change from Previous Analysis The proposed Project will not directly cause impacts to any known or unknown mineral resources; however, the FEIR 90-1 and Supplement #1 indicated that Newport Avenue Extension Project will not result in the loss of any mineral resources. Consequently, no substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: No mitigation is required. Sources: Field Observations FEIR 90-1 and Supplement # 1 Pacific Center East Specific Plan Tustin General Plan XI. NOISE -Would the project: Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 12 a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive ground borne vibration or ground borne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? No Substantial Change from Previous Analysis Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to result in short-term roadway and freeway ramp construction noise impacts, and contribute to significant noise level increases along McFadden Avenue east of SR-55. Consequently, mitigation measures were identified in FE1R 90-1 to minimize these impacts. However, a Statement of Overriding Considerations was adopted for cumulative noise impacts that could not be mitigated to a less-than- significant level. A Statement of Overriding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003, to address significant unavoidable noise impacts. MitigationlMonitoring Required: Specific mitigation measures have been adopted by the Tustin City Council in certifying the FEIR 90-1 and Supplement #1. However, the Supplement #1 also concluded that the cumulative noise impacts along McFadden Avenue east of SR-55 were significant and could not be fully mitigated (this does not impact the subject properties or project). A Statement of Overriding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003 (Resolution No. 03-72). No new mitigation measure is required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 13 XII. POPULATION & HOUSING -Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? No Substantial Change from Previous Analysis Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan XIII. PUBLIC SERVICES a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times, or other performance objectives for any of the public services: No Substantial Change from Previous Analysis. The proposed Project is not expected to directly cause impacts to public services. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 14 No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measwes are required. Sources: Field Observations FE1R 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan XIV. RECREATION a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities, such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities, which might have an adverse physical effect on the environment? No Substantial Change from Previous Analysis The proposed Project will not directly cause impacts to existing neighborhood and regional parks and recreational facilities, nor require the construction or expansions of additional recreational facilities. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #l; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 15 XV. TRANSPORTATIONlI'RAFFIC -Would the project: a) Cause an increase in traffic, which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? f) Result in inadequate parking capacity? g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? No Substantial Change from Previous Analysis The proposed Project not directly cause transportation or traffic related impacts, including resulting in inadequate emergency access or pazking capacity. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to result in short-term roadway and freeway ramp construction noise impacts. FEIR 90-1 determined that the Newport Avenue Extension Project will contribute to significant traffic level increases along McFadden Avenue east of SR-55. Consequently, mitigation measures were identified in FEIR 90-1 to minimize these impacts. However, a Statement of Overriding Considerations was adopted for a traffic impacts that could not be mitigated to aless-than-significant level at the intersection of the SR-55 Southbound Ramps and Edinger Avenue due to existing condition of the SR-55 Freeway bridge conditions at Edinger Avenue. A Statement of Overriding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003, to address significant unavoidable noise impacts. Mitigation/Monitoring Required: Specific mitigation measures have been adopted by the Tustin City Council in certifying the FEIR 90-1 and Supplement #1. However, the Supplement #1 also concluded that the traffic impact is significant and could not be fully mitigated. A Statement of Overriding Considerations for the Supplement #1 was adopted by Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 16 the Tustin City Council on May 5, 2003 (Resolution No. 03-72). No new mitigation measure is required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan XVI. UTILITIES AND SERVICE SYSTEMS -Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider, which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? No Substantial Change from Previous Analysis. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIIt 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures aze included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 17 Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan XVII. MANDATORY FINDINGS OF SIGNIFICANCE a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects.) c) Does the project have environmental effects, which will cause substantial adverse effects on human beings, either directly or indirectly? No Substantial Change from Previous Analysis The FEIR 90-1 and Supplement #1 previously considered all environmental impacts associated with Newport Avenue Extension Project, including any future acquisitions of the properties at 14741 and 14751 Newport Avenue. With the enforcement of the FEIR 90-1 and Supplement #1 mitigation and implementation measures approved by the Tustin City Council in the Mitigation Monitoring Program for the project, the proposed project would not cause unmitigated environmental effects that will cause substantial effects on human beings either directly or indirectly nor degrade the quality of the environment, substantially reduce the habitats or wildlife populations to decrease or threaten, eliminate, or reduce animal ranges, etc. To address cumulative impacts, a Statement of Overriding Consideration for the FEIR 90-1 and Supplement #1 was adopted by the Tustin City Council on May 5, 2x03 (Resolution No. 03-72) for issues relating to air quality, noise, and transportation/traffic. The project does not create any impacts that have not been previously addressed by the FEIlt 90-1 and Supplement #1. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan CONCLUSION Evaluation of Envvonmental Impacts Newport Avenue Extension Property Conveyances Page 18 The proposed project's effects were previously examined in the FEIR 90-1 and Supplement #1. No new effects will occur, no substantial increase in the severity of previously identified significant effects will occur, no new mitigation measures will be required, no applicable mitigation measures previously not found to be feasible would in fact be feasible, and no new mitigation measures or alternatives applicable to the project that have not been considered aze needed to substantially reduce effects of the project. Implementation of activities and development at the project site could be subject to subsequent environmental review under CEQA as may be required by law. No substantial change is expected from the analysis previously completed in FEIR 90-01 and Supplement #1 Attachment 2 of 2 (Exhibit A of Resolution No. 10-12) Mitigation Monitoring and Reporting Program Final Environmental Impact Report (FEIR) 90-1 and Supplement #1 to FEIR 90-1 (Mitigation and implementation measures applicable to the Project are noted in bold.) 'b o `~ ~ an bC°io ~~ .. o c ~ ow ~ ~ d o q Q°" o ..y Y/ ~U° AG O i.i a ~ o U ~ b °c, ~, 8 ¢ a ~ a ~, ~ ~ ~ ~ ~ ~ .~ ~ o O ao • A O C~ .bD D ~a~ °' a ~8~ 8 "~~ ~ ~ , ~ ~ , ~ a o ~ as o ~ Q o ~ ~ ~ ~ ~ as UAA a i UAA o UAA i o a UAA . •~ ' •~ ~ ~ ~ LL C'' ~1.~1 o C}y ° W o rjy c U U U U ~ o ~ o ~ ~ ~ y ~ "'" ' y sue. ~+ ~ ~ ab0 ~ y , "~~ ~ ~ O CL ~ bA o O ~ ~ v~ ~ y ~ o d ~, ~ 'b ~o ~ ~ vi 'a ~ it " r i c ~~ F. Cdr 'b .., 'y p y, 77 ss ~ °~ ~ ~ u as v ~ D .. a~ .~ .d ~~yy, ~ ~ y ~ ~ .~ q ~ ¢ ~ a O `~ u .~ CL v 4 u at y •Q C ~ ~ ~ .O a ~ O ~ .-. Cd '~' ~ ~ 3a o ° ~ ~a.r • ~ •>'~~~ ~ i ~ 'a 'fl .~ ~ ~ ~ ~ ~ C3, ~ . 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The City of Tustin does hereby resolve as follows: I. The City of Tustin ("City")finds and determines as follows: A. The Tustin Community Redevelopment Agency ("Agency") currently owns residential property at 14741 and 14751 Newport Boulevard ("Subject Properties") which was originally purchased on January 7, 2000 using moneys from the Low and Moderate Income Housing Fund. In accord with California Community Redevelopment Law and more specifically Section 33334.16 of the Health and Safety Code, properties not developed for persons and families of low and moderate income within ten (10) years from the date of acquisition shall be sold with the moneys from the sale, less reimbursement to the Agency for the cost of the sale, deposited in the Agency's Low and Moderate Income Housing Fund. B. Pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Agency is engaged in implementation of the Redevelopment Plan (the "Redevelopment Plan") for the South Central Project Area Redevelopment Project (the "South Central Redevelopment Project"); and, C. In order to comply with provisions of Section 33334.16 of the Health and Safety Code and to implement the Redevelopment Plan, the Agency proposes to sell the Subject Properties (the "Project") to the City for a public purpose pursuant to which the City would utilize the Subject Properties for required right-of-way at the northwest corner of Newport Avenue and Sycamore Avenue for the proposed future improvements to Newport Avenue ("Newport Avenue Improvements") and then dispose of the remaining property not needed for right-o#-way purposes for future redevelopment consistent with the Redevelopment Plan; and D. In its current condition, the Subject Properties are a blighting influence on the Redevelopment Project Area; and Resolution No. 10-04 Page 2 E. Ultimately the Project will remove the blighting influence described above and provide required right-of-way for the construction of Newport Avenue Improvements and any remaining property not needed for right-of-way will be utilized for redevelopment purposes; and F. Pursuant to Section 33433 of the Health and Safety Code, the Agency is authorized to sell or lease property acquired in whole or part from tax increment moneys for development pursuant to the Redevelopment Plan, provided the sale or lease is first approved by the legislative body by resolution after a public hearing; and G. Pursuant to Section 33433(a)(1) of the Health and Safety Code, a Notice of the time and place of the public hearing was published in a newspaper of general circulation in the community at least once per week for at least two successive weeks, as specified in Section 6066 of the Government Code, prior to the hearing; and, H. Pursuant to Section 33433(a)(2)(A) of the Health and Safety Code the Agency has prepared and made available for public inspection a report no later than the first notice of the public hearing and, pursuant to Section 33433(a)(2)(B) of the Health and Safety Code, the City Council has reviewed and approved a report which contains the following: i. A copy of the proposed Agency resolution authorizing the sale of the Subject Properties and a copy of the proposed City Council resolution agreeing to purchase the Subject Properties. ii. A summary which describes the following: (a) The cost of the agreement to the agency, including land acquisition costs, clearance costs, relocation costs, the costs of any improvements to be provided by the agency, plus the expected interest on any loans or bonds to finance the agreements; and, (b) The estimated value of the interest to be conveyed, determined at the highest and best uses permitted under the plan; and, (c) The estimated value of the interest to be conveyed, determined at the use and with the conditions, covenants, and development costs required by the sale. An explanation of the sale price, if determined to be less than the fair market value of the interest to be conveyed, at the highest and best use consistent with the redevelopment plan, including an explanation of the reasons for the difference; and, Resolution No. 10-04 Page 3 (d) An explanation of why the sale of the property will assist in the elimination of blight, with reference to all supporting facts and materials relied upon in making this explanation; and, I. Pursuant to Section 33334.16 of the California Community Redevelopment Law the subject properties were unable to be developed as Low and Moderate Income Housing during the ten year period from the date of acquisition because of the size and configuration of the Subject Properties which were impacted by right-of-way necessary for Newport Avenue Improvements and the inability of the Agency to feasibly combine the Subject Properties with adjacent properties to facilitate new Low and Moderate Income Housing; and, J. The Agency has identified that a portion of the Subject Properties to be sold to the City are required for necessary right-of-way for Newport Avenue Improvements, and the Newport Avenue Improvements are identified in the South Central Redevelopment Plan, in the "Third Five-Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas" ("Implementation Plan"), and in the City of Tustin's Seven Year Capital Improvement Program adopted in Fiscal Year 2009-2010; and, K. The Agency's sale of the Subject Properties to the City will assist in the elimination of blight and is consistent with the Implementation Plan. Newport Avenue Improvements have been identified in the Implementation Plan as a critical and necessary public improvement in the elimination of blight and in relieving traffic congestion, providing better access for emergency services, and increasing traffic capacity. After accommodation of any necessary right-of-way, any remaining portions of the Subject Property not needed for right-of-way will be utilized for redevelopment purposes which will also eliminate blight in the Redevelopment Project Area and which is also consistent with the Implementation Plan; and, L. The Subject Properties are currently owned by the Tustin Community Redevelopment Agency and are located within the City's boundaries and within the South Central Redevelopment Project Area; and, M. Without the Agency selling the Subject Properties to the City to be utilized for the Newport Avenue Improvements, implementation of the South Central Redevelopment Project will be negatively impacted in that the inability to construct full right-of-way improvements and ultimately develop any remaining portions of the Subject Properties not needed for right-of-way purposes will preclude the full implementation of the South Central Redevelopment Plan. Resolution No. 10-04 Page 4 N. The resolution and conditions of sale for the Subject Properties to the City contain all of the terms, covenants, conditions, and restrictions, obligations and provisions required by state and local law; and O. The Agency has duly considered all of the terms and conditions of the proposed sale of the Subject Properties to the City and believes that the Newport Avenue Project is in the best interests of the City and the health, safety, morals and welfare of its residents, and is in accord with the public purposes and provisions of applicable state and local law and requirements; and P. Pursuant to Section 33433 of the Health and Safety Code, the Agency and Tustin City Council have held a noticed public hearing on the proposed sale of the Subject Properties to the City of Tustin, at which public hearing all oral and written testimony to the proposed sale in connection therewith and to any other matters pertaining to the transaction were received and heard. Q. In accordance with Section 33433 of the Community Redevelopment Law, the sale of the Subject Properties to the City will benefit the South Central Redevelopment Project Area and the consideration for the Subject Properties by the City is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the sale in the Agency and City Council resolutions authorizing such sale. II. The City hereby authorizes the Agency's sale of the Subject Properties to the City and authorizes the City Manager and/or Assistant City Manager to execute any necessary documents and to take all actions necessary or desirable to implement the Agency's sale and City's purchase of the Subject Properties including the execution of all related documents and instruments, and upon satisfaction of all conditions and obligations of the City thereto and pursuant to this Resolution, authorizes the Agency to transfer the Subject Properties to the City, subject to the terms, conditions, and covenants contained in Exhibit A. Resolution No. 10-04 Page 5 PASSED AND ADOPTED at a regular meeting of the Tustin City Council held on the 19th day of January, 2010. JERRY AMANTE MAYOR PAMELA STOKER CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Pamela Stoker, City Clerk of the City of Tustin, California, do hereby certify that the whole number of the members of the Tustin City Council of the City of Tustin is five; that the above and foregoing Resolution No. 10-04 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day of January, 2010 by the following vote: CITY COUNCIL MEMBER AYES: CITY COUNCIL MEMBER NOES: CITY COUNCIL ABSTAINED: CITY COUNCIL MEMBER ABSENT: PAMELA STOKER CITY CLERK EXHIBIT A RESOLUTION NO. 10-04 Agreement Between The Tustin Community Redevelopment Agency ("Agency") And City of Tustin ("City") Including Terms, Conditions, And Covenants of the Agency's Sale of Property Located at 14741 and 14751 Newport Avenue, Tustin to the City This Agreement is entered into this day of January 19, 2010, by and among the Tustin Community Redevelopment Agency (the "Agency") and the City of Tustin (the "City") ,also collectively referred to as the "Parties". 1. Property To Be Conveyed. The Agency agrees to sell the properties located at 14741 AND 14751 NEWPORT AVENUE ("Subject Properties") to the City and the City agrees to purchase the Subject Properties from Seller. 2. Purchase Price. As consideration for the sale of the .Subject Properties by the Agency to the City, the City shall pay to the City the sum of $533,000 less Agency costs of the sale including but not limited to transaction expenses as identified in Section 5.1. (the "Purchase Price"), subject to the deposit of said Purchase Price into the Agency's Low and Moderate Income Housing Fund. 3. Property Sold "As-Is". The Subject Properties shall be sold to City without investigation. City shall recognize that the Agency would not sell the Subject Properties except on an "AS-IS, WHERE IS, WITH ALL FAULTS" basis, and the City acknowledges that the Agency has made no representation or warranties of any kind whatsoever, either express or implied in connection with any matters with respect to the Subject Properties, or any portion thereof. The City acknowledges that it is buying the property in an "AS-IS, WHERE IS, WITH ALL FAULT" condition, in its present state and condition and with all faults, if any. 4. Closing of Transaction. 4.1. Time Frame for Completion of Sale. Three business days after satisfaction of Agency and City Conditions to Closing of the proposed transaction, the Parties shall conclude the sale and purchase transaction for the Subject Properties. The date may be extended by mutual consent of the Parties. 4.2. Conditions precedent to Closing of Transaction. Each of the following conditions shall be precedent conditions prior to completion of the sale of the Subject Properties. a. The Agency shall have prepared and delivered a Quitclaim Deed, executed by the Agency, acknowledged and agreed to by the City and in recordable form; 1 b. A federal "FIRPTA" Affidavit executed by the Agency, certifying that the Agency is not a "foreign person" under the "Foreign Investment in Real Property Tax Act". c. California's Real Estate Withholding Exemption Certificate Form 597-W be completed and filed; d. City's delivery of Purchase Price: Other Costs. No later than two days prior to the Closing Date, the City shall deliver to the Agency the Purchase Price less all Agency costs associated with the transaction; e. City shall have submitted to Agency evidence of insurance policies required by the City for fire and casualty for the Subject Properties pursuant to Exhibit A. City shall procure and maintain, at its cost and expense, and furnish or cause to be furnished to the Agency, evidence of commercial general liability insurance, workers compensation insurance, and property insurance in the amounts as determined necessary by the City's Risk Manager. Said policy shall also name the Tustin Community Redevelopment Agency as additional insured given its responsibilities for continuing Property Management of the Subject Properties. 5. Procedures for Conveyance of Subject Properties. 5.1 City shall pay for all costs and expenses of the transaction to be subtracted from the Purchase Price for the Subject Properties including but not limited to a) the cost and premium for the City's ALTA Title Policy, showing the title in the Subject Properties vested in the City after recordation of the Quitclaim Deed; b) all document recording fees and costs; and, c) the costs of all City consultants and employees (including lawyers and economic consultants engaged in concluding the transaction). 5.2 Possession. The Agency shall cause the Quitclaim Deed and other documents required to be recorded by the terms of this transaction to be recorded with the County Recorder's Office in the Official Records, obtain conformed copies thereto and distribute same to the City and Agency. 5.3 Deliveries to City Upon Closing. The Agency agrees to deliver to City, on or before Closing, the existing Rental Agreements on the Subject Properties which shall be assigned to the City. 6. Scope of Development and Continuing Agency Involvement in Development and Subsequent Disposition of the Subject Properties 6.1 Requirement to Develop the Subject Properties. The sale of the Subject Properties to the City is intended to provide necessary right-of--way area for Newport Avenue Improvements with any remaining portions of the Subject Properties not necessary for the Newport Avenue Improvements to be utilized for redevelopment 2 purposes. City shall agree to thereafter diligently prosecute to completion those tasks necessary to accommodate the Newport Avenue Improvements, pursuant to all governmental requirements, State and Federal Law. These tasks and actions shall generally consist of the following: a. Finalization of construction plans and related documents for Newport Avenue Improvements including certification of actual right-of--way limits of the Newport Avenue Improvements as they impact the Subject Properties and identification of any remaining portions of the Subject Properties not necessary for the Newport Avenue Improvements, including identification of any interim construction easements that may be necessary across remaining portions of the Subject Properties until completion of construction of Newport Avenue Improvements. b. Completion of an HCD Relocation Plan for relocation of the 8 households currently residing in the Subject Properties and provision of any necessary relocation benefits, where applicable. c. Demolition and clearance of existing site improvements on the Subject Properties including structures and remaining concrete and asphalt paved surfaces. d. Grading of necessary right-of--way and remaining portions of the property as necessary for the Newport Avenue Improvements and other redevelopment purposes for the remaining portions of the Subject Properties not needed for the Newport Avenue Improvements. e. Construct and complete construction of Newport Avenue Improvements. f. Marketing and sale of the balance of the Subject Properties not necessary for Newport Avenue Improvements for redevelopment purposes consistent with the City's Zoning, General Plan, and the South Central Redevelopment Plan. The City shall agree to cooperate and work closely with the Agency in the selection of any potential development opportunity on the remaining portions of the Subject Properties not needed for the Newport Avenue Improvements to ensure consistency with Agency objectives, the South Central Redevelopment Plan and South Central Project Area Implementation Plan. 6.2. Design Approval. a. It shall be understood and agreed to by the City that the quality, character of Newport Avenue Improvements and any development of remaining portions of the Subject Properties not needed for Newport Avenue Improvements is of particular importance to the Agency. City shall agree as the future owner of the Subject Properties to grant the Agency as a right the reasonable review of preliminary and entitlement plans and submissions. Upon submission to the Agency, the Agency will endorse its approval and return to the City and such approval shall be conclusively deemed to have been given unless within twenty 3 (20) days after Agency's receipt of plans, the Agency gives notice of its disapproval to the City specifying in reasonable detail each item that the Agency disapproves of and the reasons for such disapproval. In the event of a disapproval, City shall make changes in response to the Agency's review and approval. b. The City shall pay, or assign costs to an Agency approved transferee any fees and or costs normally charged by the Agency in connection with and for any application being reviewed by the Agency. 6.3 Ownership Transfer. The City represents and agrees that its undertaking pursuant to its purchase of the Subject Properties is for the purposes of redevelopment and is not for speculation in land holding. For such reason, City acknowledges and agrees that no voluntary or involuntary successor in interest of the City shall effect any total or partial ownership transfer of the Subject Properties, or any interest therein, whether voluntary or involuntary, from the City to another party other than to the City as part of any separate right-of--way Grant Deed, unless approved by the Tustin Community Redevelopment Agency or for which the Agency expressly releases the City of any transfer restrictions contained herein by written instrument. 6.4. Agency Property Management and Agency Rights of Access. a. Upon sale of the Subject Properties to the City, City agrees to continue to engage the Agency as the property manager for the Subject Properties which includes the cost of staffing for such support and the Agency's hiring of outside property management consultants, until such time as the Agency notifies the City in writing that such property management role is no longer required. The Agency will collect rents and any other miscellaneous revenue from the Subject Properties (i.e. wash machine revenues, etc.) and pay for all Agency costs associated with Agency's property management responsibilities including staff time, consultant time, repairs and other expenses for managing the property including maintaining necessary reserves and any collection losses. Within ninety days of the close of each new fiscal yeaz, any net operating income, less reserves not necessary for expected and projected expenses by Agency in its property management for the next fiscal year, as determined necessary by the Agency in its sole discretion, will be disbursed by the Agency to the City. b. Representatives from the Agency and its consultants shall have reasonable right to access to all portions of the Subject Properties, without changes or fees, at normal hours for purposes of the Agency's responsibilities identified herein. 6.5 Status Reports. City agrees to make oral and written reports at times requested by the Agency advising Agency and/or its staff of all matters and studies being made regarding the Subject Properties. 4 7. Non-Discrimination and Equal Onaortunity. 7.1 Obligation to Refrain from Discrimination. The City covenants and agrees for itself, its successors, its assigns and every successor in interest to the Subject Properties or any part thereof, that there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Subject Properties nor shall the City itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Subject Properties. 7.2 Form of Nondiscrimination Clauses. All deeds, leases or contracts, including the Quitclaim between the Agency and City shall contain or be subject to substantially the following non-discrimination clauses: a. In deeds: "The grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall. the grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." b. In leases: "The lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the leasing, subleasing, renting, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall lessee itself, or any person claiming under or through it, establish or permit such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the land herein leased." c. In contracts: "There shall be no discrimination against, or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee 5 itself or any person claiming under or through it, establish or pennit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." 8. Deed Restrictions/Covenants Runnins with the Land. The obligations of the City set forth in this Agreement are covenants running with the land and equitable servitudes and shall be binding upon the City and all subsequent Assignees and Ownership Transferees owning all or any portion of the Subject Properties, as applicable, for the benefit of the Agency and the successors and assigns of the Agency. The Quitclaim Deed shall provide that any future transfer or conveyance of the Subject Properties or any portion thereof shall, unless and until released by the Agency in writing, include notice of the covenants, conditions and restrictions contained herein. The Quitclaim Deed shall convey the Subject Properties subject to terms, conditions, covenants and restrictions as set forth in this Agreement specifically agreed to by the City in writing. Executed on the date first above written. ATTEST: City Clerk Pam Stoker Approved as to Form: Doug Holland City Attorney <signatures follow on next page> 6 Tustin Community Redevelopment Agency ("Agency" and "Seller") By: William A. Huston Executive Director City of Tustin ("City" and "Buyer") By: City Manager RESOLUTION NO. 10-03 A RESOLUTION OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF TUSTIN, CALIFORNIA, FINDING THAT PURSUANT TO PUBLIC RESOURCES CODE SECTION 2116- AND SECTION 15168(c) OF STATE CEQA GUIDELINES THE PROJECT IS WITHIN THE SCOPE OF THE FINAL ENVIRONMENTAL IMPACT REPORT (EIR) 90-1 AND FINAL SUPPLEMENT #1 TO EIR 90-1 AND NO NEW ENVIRONMENTAL DOCUMENT IS REQUIRED; APPLICABLE MITIGATION MEASURES HAVE BEEN INCORPORATED INTO THE PROJECT The Tustin Community Redevelopment Agency ("Agency") of the City of Tustin does hereby resolve as follows: The Agency finds and determines as follows: A. That the sale of the properties at 14741 and 14751 Newport Boulevard from the Tustin Community Redevelopment Agency to the City pursuant to which the City would utilize the properties for required right-of-way at the northwest corner of Newport Avenue and Sycamore Avenue for the proposed future improvements to Newport Avenue and then dispose of .the remaining property not needed for right-of-way purposes for future redevelopment is considered a "Project" pursuant to the terms of the California Environmental Quality Act; B. Final Environmental Impact Report (EIR) 90-1 for the Pacific Center East Specific Plan, including the proposed extension of Newport Avenue, certified by the Tustin City Council on December 17, 1990, and Supplement #1 to Final EIR 90-1 for the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" project certified by the Tustin City Council on May 5, 2003. Conveyance of the subject property was envisioned originally as necessary to support construction of the "Newport Avenue Extension, .State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" project as previously considered in Supplement #1 to EIR 90-1; and, C. That an initial study checklist, attached as Exhibit A hereto, was prepared to evaluate the potential impacts associated with the Project. The initial study checklist demonstrates that all potential impacts of the Project were addressed by the certified Final EIR 90-1 and Supplement #1, no additional impacts have been identified or substantial increase in the Resolution No. 10-03 Page 2 severity of any previously identified significant impacts in the Final EIR 90- 1 and Supplement #1 have been identified, and all applicable mitigation measures will be implemented through the Mitigation Monitoring Program for the Project (Attachment 2 of Exhibit A). The Agency hereby finds the Project is within the scope of the previously approved Final Environmental Impact Report (EIR) 90-1 for the Pacific Center East Specific Plan, including the proposed extension of Newport Avenue, certified by the Tustin City Council on December 17, 1990, and Supplement #1 to Final EIR 90-1 for the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" Project certified by the Tustin City Council on May 5, 2003; that no substantial changes are proposed in the Project or have occurred with respect to circumstances under which the Project is being undertaken since certification of the EIR and Supplement #1; no new information has become available since the certification of the EIR and Supplement #1, and pursuant to Public Resources Code Section 2116 and the requirements of CEQA regulations promulgated with respect thereto including Title 14 California Code of Regulations Sections 15162 and 15168(c), no additional environmental analysis, action or document is required by the CEQA. PASSED AND ADOPTED at a regular meeting of the Tustin Community Redevelopment Agency held on the 19th day of January 2010. JERRY AMANTE, Chairman PAMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Secretary of the Tustin Community Redevelopment Agency of the City of Tustin, California, do hereby certify that Resolution No. 10-03 Page 3 the whole number of the members of the Tustin Community Redevelopment Agency of the City of Tustin is five; that the above and foregoing Resolution No. 10-3 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day of January 2010, by the following vote: AGENCY BOARD MEMBER AYES: AGENCY BOARD MEMBER NOES: AGENCY BOARD MEMBER ABSTAINED: AGENCY BOARD MEMBER ABSENT: PAMELA STOKER CITY CLERK EXHIBIT A RESOLUTION 10-03 EXHIBIT A RESOLUTION NO.10-03 ENVIRONMENTAL ANALYSIS CHECKLIST For Projects with Previously Certified/Approved Environmental Documents: Final Environmental Impact Report (EIR) 90-01 and Supplement #1 to Final EIR 90-01 For the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Widening" Project EXHIBIT A OF RESOLUTION NO. 10-12 COMMUNITY DEVELOPMENT DEPARTMENT 300 Centennial Way, Tustin, CA 92780 (714) 573-3100 ENVIRONMENTAL ANALYSIS CHECKLIST For Projects With Previously Certified/Approved Environmental Documents: Final Environmental Impact Report (EIR) 90-1 and Supplement #1 to Final EIR 90-1 For the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" Project This checklist and the attached evaluation of environmental impacts (Attachment 1 of Exhibit A of Resolution No. 10-12) takes into consideration the preparation of an environmental document prepared at an earlier stage of the proposed project. The checklist and evaluation evaluate the adequacy of the earlier document pursuant to Section 15162 and 15168 of the California Environmental Quality Act (CEQA) Guidelines. A. BACKGROUND Project Title(s): Newport Avenue Extension Property Conveyances Pursuant to Health and Safety Code Section 33433 Lead Agency: City of Tustin, 300 Centennial Way, Tustin, California 92780 Lead Agency Contact Person: Ms. Christine A. Shingleton Phone: (714) 573-3107 Project Location: 14741 and 14751 Newport Boulevard Project Sponsor's Name and Address: City of Tustin 300 Centennial Way Tustin, California 92780 General Plan Designation: High-Density Residential Zoning Designation: R-3 (Multiple-Family Residential) Project Description: The Tustin Community Redevelopment Agency proposes to sell the properties at 14741 and 14751 Newport Boulevard to the City pursuant to which the City would utilize the properties for required right-of--way at the northwest corner of Newport Avenue and Sycamore Avenue for the proposed future improvements to Newport Avenue and then dispose of the remaining property not needed for right- of-way purposes for future redevelopment consistent with the South Central Project Area Redevelopment Plan, the Tustin General Plan and Tustin City Code. Conveyance of the subject property was envisioned originally as necessary to support construction of the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" Project as previously considered in Supplement #1 to EIR 90-1. Surrounding Uses: North and West: Residential South: Residential (across Sycamore Avenue and Newport Avenue) East: Office/Commercial (across Newport Avenue) Previous Environmental Documentation: Final Environmental Impact Report (Program EIR) 90-1 for the Pacific Center East Specific Plan, including the proposed extension of Newport Avenue, certified by the Tustin City Council on December 17, 1990, and Supplement #1 to Final EIR 90-1 for the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" Project certified by the Tustin City Council on May 5, 2003. B. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist in Section D below. ^Land Use and Planning ^Population and Housing ^Geology and Soils ^Hydrology and Water Quality ^Air Quality ^Transportation & Circulation ^Biological Resources ^Mineral Resources ^Agricultural Resources ^Hazards and Hazardous Materials ^Noise ^Public Services ^Utilities and Service Systems ^Aesthetics ^Cultural Resources ^Recreation ^Mandatory Findings of Significance C. DETERMINATION: On the basis of this initial evaluation: ^ I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. ^ I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A NEGATIVE DECLARATION will be prepared. ^ I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. ^ I find that the proposed project MAY have a significant effect(s) on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "Potentially Significant Impact" or "Potentially Significant Unless Mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. ® I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects 1) have been analyzed adequately in an earlier EIR pursuant to applicable standards, and 2) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project. ^ I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects 1) have been analyzed adequately in an earlier NEGATIVE DECLARATION pursuant to applicable standards, and 2) have been avoided or mitigated pursuant to that earlier NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project. Preparers /~ ~ Date: 12 ~ 3 d Mat West, Redevelopment Project Manager Christine A. Shingleton, Assist City Manager D. EVALUATION OF ENVIRONMENTAL IMPACTS Date /~ L3 4`~ See Attached EVALUATION OF ENVIRONMENTAL IMPACTS I. AESTHETICS -Would the project: a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway'? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? II. AGRICULTURE RESOURCES: In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non- agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use? III. AIR QUALITY: Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non- attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis ^ ^ ^ ^ a a D ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ a a ^ ^ O IV. BIOLOGICAL RESOURCES: -Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance'? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? V. CULTURAL RESOURCES: -Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in § 15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to ~ 15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside of formal cemeteries? VI. GEOLOGY AND SOILS: -Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis ^ ^ ^ ~ ^ ^ ^ ^ ^ a a ^ ^ o a ^ ^ ^ ^ a a No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? iv) Landslides'? b) Result in substantial soil erosion or the loss of topsoil'? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of waste water? VII.HAZARDS AND HAZARDOUS MATERIALS: Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? ^ ^ o a ^ ^ o a ^ ^ ^ ^ ^ ^ a ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ D ~ g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? VIII. HYDROLOGY AND WATER QUALITY: -Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre- existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? i) Expose people or structures to a significant risk of loss, injury or death involving flooding as a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? IX. LAND USE AND PLANNING- Would the project: a) Physically divide an established community? No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis o a ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community conservation plan'? X. MINERAL RESOURCES -Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of alocally-important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? XI. NOISE Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excess noise levels? XII.POPULATION AND HOUSING -Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)'? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis ^ ^ a o o a ^ ^ ^ ^ ^ ^ o a ^ ^ ^ ^ a o ^ ^ ^ ^ No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? ^ ^ XIII. PUBLIC SERVICES a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? Police protection? Schools? Parks? Other public facilities? XIV. RECREATION - a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ XV.TRANSPORTATION/TRAFFIC -Would the project: a) Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e. result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)'? b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature (e.g. sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)'? e) Result in inadequate emergency access? f) Result in inadequate parking capacity? ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? XVI. UTILITIES AND SERVICE SYSTEMS - Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board'? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? No Substantial New More Change From Significant Severe Previous Impact Impacts Analysis ^ ^ a ^ ^ ^ c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects'? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? XVII. MANDATORY FINDINGS OF SIGNIFICANCE a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory'? b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? ^ ^ ^ ^ ^ ^ ^ a ^ ^ ^ ^ ^ ^ ^ ^ Attachment 1 of 2 Exhibit A RESOLUTION NO.10-03 Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Pursuant to Health and Safety Code Section 33433 EVALUATION OF ENVIRONMENTAL IMPACTS NEWPORT AVENUE EXTENSION PROPERTY CONVEYANCES PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433 PREVIOUS ENVIRONMENTAL DOCUMENTATION On December 17, 1990, the Tustin City Council certified Final Environmental Impact Report (EIR) 90-1 (the "FEIR 90-1") for the Pacific Center East Specific Plan in accordance with the California Environmental Quality Act (CEQA). The Specific Plan project proposed the development of an 8.9 acre commercial center, 33.2 acre regional center, 36.7 acre office center, and 44.2 acre technology center. The project approved in 1990 included the proposed extension of Newport Avenue and the reconfiguration of the SR 55 interchange at Edinger Avenue as part of the circulation system improvements within the Specific Plan area. Subsequent to certification of FEIR 90-1, refinements occurred to the circulation system improvements, including widening of Valencia Avenue and Edinger Avenue. Additional environmental analysis was performed per Section 15163 of the CEQA Guidelines for project refinements referred to as the "Newport Avenue Extension, State Route 55 Northbound Ramp Reconfiguration, and Valencia Avenue and Del Amo Avenue Widening" (the "Newport Avenue Extension Project"); the Tustin City Council certified Final Supplement #1 to EIR 90-1 ("Supplement #1") on May 5, 2003. The FEIR 90-1 and Supplement #1 analyzed amulti-phase development period for the planned Pacific Center East Specific Plan and Newport Avenue Extension Project. When individual activities in Pacific Center East Specific Plan and Newport Avenue Extension Project are proposed, the City is required to examine the individual activities to determine if their effects were fully analyzed in the FEIR 90-1 and Supplement #1. The City can approve the activities as being within the scope of the project covered by the FEIR 90-1 and Supplement #1. If the City finds that pursuant to Sections 15162, 15164, and 15183 of the CEQA Guidelines no new effects would occur, nor would a substantial increase in the severity of previously identified significant effects occur, then no supplemental or subsequent environmental document is required. Conveyance of the subject properties was envisioned originally as necessary to support completion of the Newport Avenue Extension Project. The proposed sale of the properties at 14741 and 14751 Newport Avenue from the Tustin Community Redevelopment Agency to the City of Tustin (the "Project") pursuant to which the City would utilize the properties for required right-of--way at the northwest corner of Newport Avenue and Sycamore Avenue for the proposed future improvements to Newport Avenue and then dispose of the remaining property not needed for right-of--way purposes for future redevelopment, the City prepared a comprehensive Environmental Checklist and the analysis provided below to determine if the Project is within the scope of the FEIR 90-1 and Supplement #1 and if new effects would occur as a result of the project. PROJECT LOCATION The Project sites are located in the southwest portion of the City of Tustin, which is in central Orange County. The properties subject to the conveyance are located 14741 and 14751 Newport Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 2 Avenue at the northwest corner of Newport Avenue and Sycamore Avenue. The properties are located in the northern portion (Phase II) of the Newport Avenue Extension Project and would be utilized for required right-of--way for improvements to the intersection of Newport Avenue and Sycamore Avenue. PRESENT CONDITIONS OF THE PROPERTY The Project consists of two 0.2-acre parcels, both of which are currently owned by the Tustin Community Redevelopment Agency and are each developed with atwo-story, four-unit apartment building (4,216 square feet) constructed in 1967. The sale of the properties at fair market value from the Tustin Community Redevelopment Agency to the City of Tustin will result in transfer of property ownership to the City of Tustin with the Agency retaining under contract to the City property management responsibilities until any remaining portion of the property not needed for right-of--way is transferred by the City to a private entity for development. EVALUATION OF ENVIRONMENTAL IMPACTS The following information provides background support for the conclusions identified in the Environmental Analysis Checklist. I. AESTHETICS -Would the project: a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare, which would adversely affect day or nighttime views in the area? No Substantial Change from Previous Analysis. Acquisition and development activities related to the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. There are no designated scenic vistas or scenic state highway in the vicinity; therefore, the proposed conveyance would not result in a substantial adverse effect on a scenic vista or scenic state highway. The proposed conveyance would not change the conclusions of the analysis from the FEIR 90-1 and Supplement #1 relative to these visual changes. . The proposed conveyances are necessary to continue supporting development of Newport Avenue improvements as envisioned with the Extension Project and would not modify the Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 3 land use plan adopted by the City Zoning Code. No change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1 Mitigation/Monitoring Required: The mitigation measures applicable to the Project have been implemented with adoption of Newport Avenue Extension Project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan II. AGRICULTURE RESOURCES - In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (199' prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? b) Conflict with existing zoning for agricultural use or a Williamson Act contract? c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland to non-agricultural use? No Substantial Change from Previous Analysis The proposed Project will not directly cause any impacts to agricultural resources since the subject properties are fully developed. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. The Project is within the scope of the Newport Avenue Extension Project as that identified in the FEIR 90-1 and Supplement #1. Implementation of the proposed Project would not impact areas mapped as Prime Farmland. Additionally, the properties have been developed as aparhnent buildings since 1967 and there are no areas subject to a Williamson Act contract. Implementation of the proposed Project would not change the impact conclusions presented in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required.• The mitigation measures applicable to the Project have been implemented with adoption of Newport Avenue Extension Project. No refinements Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 4 need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan III. AIR QUALITY -Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions that exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? No Substantial Change from Previous Analysis The proposed Project will not directly cause any air quality impacts. Development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. FEIR 90-1 and Supplement #1 determined that regional ambient air quality conditions, combined with regional cumulative traffic, contribute to the exceedance of daily State and Federal standards for several air pollutants. Consequently, mitigation measures were identified in FEIR 90-1 and Supplement #1 to minimize these impacts. However, a Statement of Overriding Considerations was adopted for cumulative air quality impacts that could not be mitigated. A Statement of Overriding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003, to address significant unavoidable short-term, long-term, and cumulative air quality impacts. Mitigation/Monitoring Required: Specific mitigation measures have been adopted by the Tustin City Council in certifying the FEIR 90-1 and Supplement #1 for operational and construction activities. However, the Supplement #1 also concluded that the related operational air quality impacts were significant and could not be fully mitigated. A Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 5 Statement of Overriding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003 (Resolution No. 03-72). No new mitigation measure is required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan IV. BIOLOGICAL RESOURCES -Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional or state habitat conservation plan? No Substantial Change from Previous Analysis. The proposed Project will not directly cause impacts to any biological resources. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. The FEIR 90-1 and Supplement #1 found that implementation of the Newport Avenue Extension Project would not result in any potential impacts related to the change of diversity Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 6 of species, reduction of the number of unique or endangered species of plant life, or the introduction of new plant life into the area. No new impacts have been identified. Mitigation/Monitoring Required.• No mitigation is required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan V. CULTURAL RESOURCES -Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in §15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to § 15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside formal cemeteries? No Substantial Change from Previous Analysis The proposed will not directly cause impacts to any cultural resources. Development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required.• Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan VI. GEOLOGY AND SOILS -Would the project: Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 7 a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: • Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning map, issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. • Strong seismic ground shaking? • Seismic-related ground failure, including liquefaction? • Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (2001), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? No Substantial Change from Previous Analysis Acquisition and Development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. The physical impacts resulting from Newport Avenue Extension Project will involve grading, soil erosion and loss of topsoil but will not appreciably alter topography in the area, particularly on the subject properties. The Newport Avenue Extension Project would not expose people or structures to adverse effects involving earthquake faults, seismic ground shaking, liquefaction, landslides or expansive soils. Development activities have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no demonstrable negative geology or soil effect on the site. No substantial change is expected for development of the project from the analysis previously completed in the FEIS/EIR for MCAS Tustin and Addendum. Mitigation measures are included to reduce the roadway extension, freeway ramp improvements and roadway widening impacts on geology and soils to a level of insignificance. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 8 Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan VII. HAZARDS AND HAZARDOUS MATERIALS -Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonable foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles or a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? No Substantial Change from Previous Analysis Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 9 substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. Mitigation measures have been incorporated in the FEIR 90-1 and Supplement 90-1 and no substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required.• Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Airport Environs Land Use Plan (AELUP) Tustin General Plan VIII. HYDROLOGY AND WATER QUALITY -Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge, such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in flooding on- or off-site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner, which would result in flooding on- or off-site? e) Create or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water quality? g) Place housing within a 100-year flood hazard. area as mapped on a federal Flood hazard Boundary of Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures, which would impede or redirect flood flows? Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 10 i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? No Substantial Change from Previous Analysis Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Compliance with existing rules and regulations would reduce any potential impacts related to water quality and groundwater to a level of insignificance and no additional mitigation is required for the Project. Mitigation Measures related to hydrology and drainage were certified by the Tustin City Council in FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project or as conditions of approval for the project. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan IX. LAND USE AND PLANNING -Would the project: a) Physically divide an established community? b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited, to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community conservation plan? No Substantial Change from Previous Analysis The proposed Project will not directly cause impacts to land use and planning, or conflict with any habitat conservation plan or natural community conservation plan. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 11 The proposed Project will comply with the Mitigation Measures related to Land Use as identified in FEIR 90-1 and Supplement #1, including conveyance of the properties to the City at reuse value as identified in the "Summary Report Pertaining to the Sale of Real Property at 14751 and 14741 Newport Avenue" prepared by Keyser Marston Associates ("KMA"). Mitigation measures have been incorporated in the FEIR 90-1 and Supplement #1 and no substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required.• Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan "Summary Report Pertaining to the Sale of Real Property at 14741 and 14751 Newport Avenue" prepared by KMA X. MINERAL RESOURCES -Would the project: a) Result in the loss of availability of a known mineral resource that would be a value to the region and the residents of the state? b) Result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? No Substantial Change from Previous Analysis The proposed Project will not directly cause impacts to any known or unknown mineral resources; however, the FEIR 90-1 and Supplement #1 indicated that Newport Avenue Extension Project will not result in the loss of any mineral resources. Consequently, no substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: No mitigation is required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan XI. NOISE -Would the project: Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 12 a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive ground borne vibration or ground borne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? No Substantial Change from Previous Analysis Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to result in short-term roadway and freeway ramp construction noise impacts, and contribute to significant noise level increases along McFadden Avenue east of SR-55. Consequently, mitigation measures were identified in FEIR 90-1 to minimize these impacts. However, a Statement of Overriding Considerations was adopted for cumulative noise impacts that could not be mitigated to a less-than- significant level. A Statement of Overriding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003, to address significant unavoidable noise impacts. Mitigation/Monitoring Required: Specific mitigation measures have been adopted by the Tustin City Council in certifying the FEIR 90-1 and Supplement #1. However, the Supplement #1 also concluded that the cumulative noise impacts along McFadden Avenue east of SR-55 were significant and could not be fully mitigated (this does not impact the subject properties or project). A Statement of Overriding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003 (Resolution No. 03-72). No new mitigation measure is required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 13 XII. POPULATION & HOUSING -Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? No Substantial Change from Previous Analysis Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required.• Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIlZ 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan XIII. PUBLIC SERVICES a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times, or other performance objectives for any of the public services: No Substantial Change from Previous Analysis The proposed Project is not expected to directly cause impacts to public services. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 14 No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #l; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan XIV. RECREATION a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities, such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities, which might have an adverse physical effect on the environment? No Substantial Change from Previous Analysis The proposed Project will not directly cause impacts to existing neighborhood and regional parks and recreational facilities, nor require the construction or expansions of additional recreational facilities. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 15 XV. TRANSPORTATION/TRAFFIC -Would the project: a) Cause an increase in traffic, which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? f) Result in inadequate parking capacity? g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? No Substantial Change from Previous Analysis The proposed Project not directly cause transportation or traffic related impacts, including resulting in inadequate emergency access or parking capacity. Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to result in short-term roadway and freeway ramp construction noise impacts. FEIR 90-1 determined that the Newport Avenue Extension Project will contribute to significant traffic level increases along McFadden Avenue east of SR-55. Consequently, mitigation measures were identified in FEIR 90-1 to minimize these impacts. However, a Statement of Overriding Considerations was adopted for a traffic impacts that could not be mitigated to ales-than-significant level at the intersection of the SR-55 Southbound Ramps and Edinger Avenue due to existing condition of the SR-55 Freeway bridge conditions at Edinger Avenue. A Statement of Overriding Considerations for the Supplement #1 was adopted by the Tustin City Council on May 5, 2003, to address significant unavoidable noise impacts. Mitigation/Monitoring Required: Specific mitigation measures have been adopted by the Tustin City Council in certifying the FEIR 90-1 and Supplement #1. However, the Supplement #1 also concluded that the traffic impact is significant and could not be fully mitigated. A Statement of Overriding Considerations for the Supplement #1 was adopted by Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 16 the Tustin City Council on May 5, 2003 (Resolution No. 03-72). No new mitigation measure is required. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan XVI. UTILITIES AND SERVICE SYSTEMS -Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider, which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? No Substantial Change from Previous Analysis Acquisition and development activities of the Newport Avenue Extension Project have been previously considered within the FEIR 90-1 and Supplement #1 and have been found to have no new effects, nor would a substantial increase in the severity of previously identified significant effects occur as a result of the proposed Project. No substantial change is expected from the analysis previously completed in the FEIR 90-1 and Supplement #1. Mitigation/Monitoring Required: Mitigation measures have been adopted by the Tustin City Council in the FEIR 90-1 and Supplement #1; these measures are included in the Mitigation Monitoring Program for the project. No refinements need to be made to the FEIR 90-1 and Supplement #1 mitigation measures and no new mitigation measures are required. Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 17 Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan XVII. MANDATORY FINDINGS OF SIGNIFICANCE a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects.) c) Does the project have environmental effects, which will cause substantial adverse effects on human beings, either directly or indirectly? No Substantial Change from Previous Analysis The FEIR 90-1 and Supplement #1 previously considered all environmental impacts associated with Newport Avenue Extension Project, including any future acquisitions of the properties at 14741 and 14751 Newport Avenue. With the enforcement of the FEIR 90-1 and Supplement #1 mitigation and implementation measures approved by the Tustin City Council in the Mitigation Monitoring Program for the project, the proposed project would not cause unmitigated environmental effects that will cause substantial effects on human beings either directly or indirectly nor degrade the quality of the environment, substantially reduce the habitats or wildlife populations to decrease or threaten, eliminate, or reduce animal ranges, etc. To address cumulative impacts, a Statement of Overriding Consideration for the FEIR 90-1 and Supplement #1 was adopted by the Tustin City Council on May 5, 2003 (Resolution No. 03-72) for issues relating to air quality, noise, and transportation/traffic. The project does not create any impacts that have not been previously addressed by the FEIR 90-1 and Supplement #1. Sources: Field Observations FEIR 90-1 and Supplement #1 Pacific Center East Specific Plan Tustin General Plan CONCLUSION Evaluation of Environmental Impacts Newport Avenue Extension Property Conveyances Page 18 The proposed project's effects were previously examined in the FEIR 90-1 and Supplement #1. No new effects will occur, no substantial increase in the severity of previously identified significant effects will occur, no new mitigation measures will be required, no applicable mitigation measures previously not found to be feasible would in fact be feasible, and no new mitigation measures or alternatives applicable to the project that have not been considered are needed to substantially reduce effects of the project. Implementation of activities and development at the project site could be subject to subsequent environmental review under CEQA as may be required by law. 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O, "O ~ 4 ~ O y a ' O ", ~ ~ O~ ,~ a ' ~ ~ . ~ a ,, ~ d ~ .~ ~ 0 a~ ~ ~ a~ c O ~ ~ ~ ~ ~ ~ ~ a~ ~_ a N ~~ O ~ ~ .~ ~ ¢ ~ ~ ~' ~ , y ~ ¢' .~ ~ 3 o a ~ ~4., :~ 3,~ y :~ ~ cd OU ~ ~ ~ 'd U ~ r ~ O -d ~ O ''' U ~ a ,~ v O ~ O >' c~ A., ~ ~ ~ a~ ~. o . ~ ~ ~ ~ ~ ~ a~ ~ o ~ ~ ~ ~ ~ •~ `" •~ .., ~ ~ ~ 0 ~ ' 0 ~ o ~ ~ ~w 'I ~ s ~ ~ Q y .b ~ U ~ "~ '~ Q O ~ . s~ >,~d ~" ~ ' ~ b.~ ~ ~ ~ > ~ ~ O ~ ¢' O i r .~ ii ~ 1r ~" 'C Tom' ++ . U ~ ~ '+~+ V U 4a ,7 •'r y > y U~ U ~ W a 3 v~ °: RESOLUTION NO. 10-01 A RESOLUTION OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY MAKING FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433 FOR THE SALE OF PROPERTIES PURCHASED BY THE AGENCY USING HOUSING SET ASIDE TAX INCREMENT MONEYS LOCATED AT 14741 AND 14751 NEWPORT AVENUE WITHIN THE SOUTH CENTRAL REDEVELOPMENT PROJECT AREA AND AUTHORIZING THE SALE OF THE SUBJECT PROPERTIES TO THE CITY OF TUSTIN The Tustin Community Redevelopment Agency of the City of Tustin does hereby resolve as follows: t. The Tustin Community Redevelopment Agency (the "Agency') finds and determines as follows: A. The Agency currently owns residential property at 14741 and 14751 Newport Boulevard ("Subject Properties") which was originally purchased on January 7, 2000 using moneys from the Low and Moderate Income Housing Fund. In accord with California Community Redevelopment Law and more specifically Section 33334.16 of the Health and Safety Code, properties not developed for persons and families of low and moderate income within ten (10) years from the date of acquisition shall be sold with the moneys from the sale, less reimbursement to the Agency for the cost of the sale, deposited in the Agency's Low and Moderate Income Housing Fund. B. Pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Agency is engaged in implementation of the Redevelopment Plan (the "Redevelopment Plan") for the South Central Project Area Redevelopment Project (the "South Central Redevelopment Project"); and, C. In order to comply with provisions of Section 33334.16 of the Health and Safety Code and to implement the Redevelopment Plan, the Agency proposes to sell the Subject Properties (the "Project") to the City of Tustin ("City") for a public purpose pursuant to which the City would utilize the Subject Properties for required right-of-way at the northwest corner of Newport Avenue and Sycamore Avenue for the proposed future improvements to Newport Avenue ("Newport Avenue Improvements") and then dispose of the remaining property not needed for right-of-way purposes for future redevelopment consistent with the Redevelopment Plan; and D. In its current condition, the Subject Properties are a blighting influence on the Redevelopment Project Area; and Resolution No. 10-01 Page 2 E. Ultimately the Project will remove the blighting influence described above and provide required right-of-way for the construction of Newport Avenue Improvements and any remaining property not needed for right-of-way will be utilized for redevelopment purposes; and F. Pursuant to Section 33433 of the Health and Safety Code, the Agency is authorized to sell or lease property acquired in whole or part from tax increment moneys for development pursuant to the Redevelopment Plan, provided the sale or lease is first approved by the legislative body by resolution after a public hearing; and G. Pursuant to Section 33433(a)(1) of the Health and Safety Code, a Notice of the time and place of the public hearing was published in a newspaper of general circulation in the community at least once per week for at least two successive weeks, as specified in Section 6066 of the Government Code, prior to the hearing; and, H. Pursuant to Section 33433(a)(2)(A) of the Health and Safety Code the Agency has prepared and made available for public inspection a report no later than the first notice of the public hearing and, pursuant to Section 33433(a)(2)(B) of the Health and Safety Code, the City Council has reviewed and approved a report which contains the following: i. A copy of the proposed Agency resolution authorizing the sale of the Subject Properties and a copy of the proposed City Council resolution agreeing to purchase the Subject Properties. ii. A summary which describes the following: (a) The cost of the agreement to the agency, including land acquisition costs, clearance costs, relocation costs, the costs of any improvements to be provided by the agency, plus the expected interest on any loans or bonds to finance the agreements; and, (b) The estimated value of the interest to be conveyed, determined at the highest and best uses permitted under the plan; and, (c) The estimated value of the interest to be conveyed, determined at the use and with the conditions, covenants, and development costs required by the sale. An explanation of the sale price, if determined to be less than the fair market value of the interest to be conveyed, at the highest and best use consistent with the redevelopment plan, including an explanation of the reasons for the difference; and, Resolution No. 10-01 Page 3 (d) An explanation of why the sale of the property will assist in the elimination of blight, with reference to all supporting facts and materials relied upon in making this explanation; and, I. Pursuant to Section 33334.16 of the California Community Redevelopment Law the subject properties were unable to be developed as Low and Moderate Income Housing during the ten year period from the date of acquisition because of the size and configuration of the Subject Properties which were impacted by right-of-way necessary for Newport Avenue Improvements and the inability of the Agency to feasibly combine the Subject Properties with adjacent properties to facilitate new Low and Moderate Income Housing; and, J. The Agency has identified that a portion of the Subject Properties to be sold to the City are required for necessary right-of-way for Newport Avenue Improvements, and the Newport Avenue Improvements are identified in the South Central Redevelopment Plan, in the "Third Five-Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas" ("Implementation Plan"), and in the City of Tustin's Seven Year Capital Improvement Program adopted in Fiscal Year 2009-2010; and, K. The Agency's sale of the Subject Properties to the City of Tustin will assist in the elimination of blight and is consistent with the Implementation Plan. Newport Avenue Improvements have been identified in the Implementation Plan as a critical and necessary public improvement in the elimination of blight and in relieving traffic congestion, providing better access for emergency services, and increasing traffic capacity. After accommodation of any necessary right-of-way, any remaining portions of the Subject Property not needed for right-of-way will be utilized for redevelopment purposes which will also eliminate blight in the Redevelopment Project Area and which is also consistent with the Implementation Plan; and, L. The Subject Properties are currently owned by the Tustin Community Redevelopment Agency and are located within the City's boundaries and within the South Central Redevelopment Project Area; and, M. Without the Agency selling the Subject Properties to the City to be utilized for the Newport Avenue Improvements, implementation of the South Central Redevelopment Project will be negatively impacted in that the inability to construct full right-of-way improvements and ultimately develop any remaining portions of the Subject Properties not needed for right-of-way purposes will preclude the full implementation of the South Central Redevelopment Plan. Resolution No. 10-01 Page 4 N. The resolution and conditions of sale for the Subject Properties to the City contain all of the terms, covenants, conditions, and restrictions, obligations and provisions required by state and local law; and O. The Agency has duly considered all of the terms and conditions of the proposed sale of the Subject Properties to the City of Tustin and believes that the Newport Avenue Project is in the best interests of the City of Tustin and the health, safety, morals and welfare of its residents, and is in accord with the public purposes and provisions of applicable state and local law and requirements; and P. Pursuant to Section 33433 of the Health and Safety Code, the Agency and Tustin City Council have held a noticed public hearing on the proposed sale of the Subject Properties to the City of Tustin, at which public hearing all oral and written testimony to the proposed sale in connection therewith and to any other matters pertaining to the transaction were received and heard. Q. In accordance with Section 33433 of the Community Redevelopment Law, the sale of the Subject Properties to the City will benefit the South Central Redevelopment Project Area and the consideration for the Subject Properties by the City is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the sale in the Agency and City Council resolutions authorizing such sale. II. The Agency hereby approves and authorizes the sale of the Subject Properties to the City and authorizes the Executive Director and/or Assistant Executive Director to execute any necessary documents and to take all actions necessary or desirable to implement the sale of the Subject Properties including the execution of all related documents and instruments, and upon satisfaction of all conditions and obligations of the City thereto and pursuant to this Resolution, to transfer the Subject Properties to the City, subject to the terms, conditions, and covenants contained in Exhibit A. Resolution No. 10-01 Page 5 PASSED AND ADOPTED at a regular meeting of the Tustin Community Redevelopment Agency held on the 19th day of January, 2010. JERRY AMANTE CHAIRMAN 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 Tustin Community Redevelopment Agency of the City of Tustin, California, do hereby certify that the whole number of the members of the Tustin Community Redevelopment Agency of the City of Tustin is five; that the above and foregoing Resolution No. 10-01 was duly passed and adopted at a regular meeting of the Tustin Community Redevelopment Agency, held on the 19tt' day of January, 2010 by the following vote: REDEVELOPMENT AGENCY BOARD MEMBER AYES: REDEVELOPMENT AGENCY BOARD MEMBER NOES: REDEVELOPMENT AGENCY BOARD MEMBER ABSTAINED: REDEVELOPMENT AGENCY BOARD MEMBER ABSENT: PAMELA STOKER CITY CLERK EXHIBIT A RESOLUTION NO. 10-01 Agreement Between The Tustin Community Redevelopment Agency ("Agency") And City of Tustin ("City") Includutg Terms, Conditions, And Covenants of the Agency's Sale of Property Located at 14741 and 14751 Newport Avenue, Tustin to the City This Agreement is entered into this day of January 19, 2010, by and among the Tustin Community Redevelopment Agency (the "Agency") and the City of Tustin (the "City") ,also collectively referred to as the "Parties". 1. Property To Be Conveyed. The Agency agrees to sell the properties located at 14741 AND 14751 NEWPORT AVENUE ("Subject Properties") to the City and the City agrees to purchase the Subject Properties from Seller. 2. Purchase Price. As consideration for the sale of the .Subject Properties by the Agency to the City, the City shall pay to the City the sum of $533,000 less Agency costs of the sale including but not limited to transaction expenses as identified in Section 5.1. (the "Purchase Price"), subject to the deposit of said Purchase Price into the Agency's Low and Moderate Income Housing Fund. 3. Property Sold "As-Is". The Subject Properties shall be sold to City without investigation. City shall recognize that the Agency would not sell the Subject Properties except on an "AS-IS, WHERE IS, WITH ALL FAULTS" basis, and the City acknowledges that the Agency has made no representation or warranties of any kind whatsoever, either express or implied in connection with any matters with respect to the Subject Properties, or any portion thereof. The City acknowledges that it is buying the property in an "AS-IS, WHERE IS, WITH ALL FAULT" condition, in its present state and condition and with all faults, if any. 4. Closing of Transaction. 4.1. Time Frame for Completion of Sale. Three business days after satisfaction of Agency and City Conditions to Closing of the proposed transaction, the Parties shall conclude the sale and purchase transaction for the Subject Properties. The date may be extended by mutual consent of the Parties. 4.2. Conditions precedent to Closing of Transaction. Each of the following conditions shall be precedent conditions prior to completion of the sale of the Subject Properties. a. The Agency shall have prepared and delivered a Quitclaim Deed, executed by the Agency, acknowledged and agreed to by the City and in recordable form; 1 b. A federal "FIRPTA" Affidavit executed by the Agency, certifying that the Agency is not a "foreign person" under the "Foreign Investment in Real Property Tax Act". c. California's Real Estate Withholding Exemption Certificate Form 597-W be completed and filed; d. City's delivery of Purchase Price: Other Costs. No later than two days prior to the Closing Date, the City shall deliver to the Agency the Purchase Price less all Agency costs associated with the transaction; e. City shall have submitted to Agency evidence of insurance policies required by the City for fire and casualty for the Subject Properties pursuant to Exhibit A. City shall procure and maintain, at its cost and expense, and furnish or cause to be furnished to the Agency, evidence of commercial general liability insurance, workers compensation insurance, and property insurance in the amounts as determined necessary by the City's Risk Manager. Said policy shall also name the Tustin Community Redevelopment Agency as additional insured given its responsibilities for continuing Property Management of the Subject Properties. 5. Procedures for Conveyance of Subject Properties. 5.1 City shall pay for all costs and expenses of the transaction to be subtracted from the Purchase Price for the Subject Properties including but not limited to a) the cost and premium for the City's ALTA Title Policy, showing the title in the Subject Properties vested in the City after recordation of the Quitclaim Deed; b) all document recording fees and costs; and, c) the costs of all City consultants and employees (including lawyers and economic consultants engaged in concluding the transaction). 5.2 Possession. The Agency shall cause the Quitclaim Deed and other documents required to be recorded by the terms of this transaction to be recorded with the County Recorder's Office in the Official Records, obtain conformed copies thereto and distribute same to the City and Agency. 5.3 Deliveries to City Upon Closing. The Agency agrees to deliver to City, on or before Closing, the existing Rental Agreements on the Subject Properties which shall be assigned to the City. 6. Scope of Development and Continuing Agency Involvement in Development and Subsequent Disposition of the Subject Properties 6.1 Requirement to Develop the Subject Properties. The sale of the Subject Properties to the City is intended to provide necessary right-of--way area for Newport Avenue Improvements with any remaining portions of the Subject Properties not necessary for the Newport Avenue Improvements to be utilized for redevelopment 2 purposes. City shall agree to thereafter diligently prosecute to completion those tasks necessary to accommodate the Newport Avenue Improvements, pursuant to all governmental requirements, State and Federal Law. These tasks and actions shall generally consist of the following: a. Finalization of construction plans and related documents for Newport Avenue Improvements including certification of actual right-of--way limits of the Newport Avenue Improvements as they impact the Subject Properties and identification of any remaining portions of the Subject Properties not necessary for the Newport Avenue Improvements, including identification of any interim construction easements that may be necessary across remaining portions of the Subject Properties until completion of construction of Newport Avenue Improvements. b. Completion of an HCD Relocation Plan for relocation of the 8 households currently residing in the Subject Properties and provision of any necessary relocation benefits, where applicable. c. Demolition and clearance of existing site improvements on the Subject Properties including structures and remaining concrete and asphalt paved surfaces. d. Grading of necessary right-of--way and remaining portions of the property as necessary for the Newport Avenue Improvements and other redevelopment purposes for the remaining portions of the Subject Properties not needed for the Newport Avenue Improvements. e. Construct and complete construction of Newport Avenue Improvements. f. Marketing and sale of the balance of the Subject Properties not necessary for Newport Avenue Improvements for redevelopment purposes consistent with the City's Zoning, General Plan, and the South Central Redevelopment Plan. The City shall agree to cooperate and work closely with the Agency in the selection of any potential development opportunity on the remaining portions of the Subject Properties not needed for the Newport Avenue Improvements to ensure consistency with Agency objectives, the South Central Redevelopment Plan and South Central Project Area Implementation Plan. 6.2. Design Approval. a. It shall be understood and agreed to by the City that the quality, character of Newport Avenue Improvements and any development of remaining portions of the Subject Properties not needed for Newport Avenue Improvements is of particular importance to the Agency. City shall agree as the future owner of the Subject Properties to grant the Agency as a right the reasonable review of preliminary and entitlement plans and submissions. Upon submission to the Agency, the Agency will endorse its approval and return to the City and such approval shall be conclusively deemed to have been given unless within twenty 3 (20) days after Agency's receipt of plans, the Agency gives notice of its disapproval to the City specifying in reasonable detail each item that the Agency disapproves of and the reasons for such disapproval. In the event of a disapproval, City shall make changes in response to the Agency's review and approval. b. The City shall pay, or assign costs to an Agency approved transferee any fees and or costs normally charged by the Agency in connection with and for any application being reviewed by the Agency. 6.3 Ownership Transfer. The City represents and agrees that its undertaking pursuant to its purchase of the Subject Properties is for the purposes of redevelopment and is not for speculation in land holding. For such reason, City acknowledges and agrees that no voluntary or involuntary successor in interest of the City shall effect any total or partial ownership transfer of the Subject Properties, or any interest therein, whether voluntary or involuntary, from the City to another party other than to the City as part of any separate right-of--way Grant Deed, unless approved by the Tustin Community Redevelopment Agency or for which the Agency expressly releases the City of any transfer restrictions contained herein by written instrument. 6.4. Agency Property Management and Agency Rights of Access. a. Upon sale of the Subject Properties to the City, City agrees to continue to engage the Agency as the property manager for the Subject Properties which includes the cost of staffing for such support and the Agency's hiring of outside property management consultants, until such time as the Agency notifies the City in writing that such property management role is no longer required. The Agency will collect rents and any other miscellaneous revenue from the Subject Properties (i.e. wash machine revenues, etc.) and pay for all Agency costs associated with Agency's property management responsibilities including staff time, consultant time, repairs and other expenses for managing the property including maintaining necessary reserves and any collection losses. Within ninety days of the close of each new fiscal year, any net operating income, less reserves not necessary for expected and projected expenses by Agency in its property management for the next fiscal year, as determined necessary by the Agency in its sole discretion, will be disbursed by the Agency to the City. b. Representatives from the Agency and its consultants shall have reasonable right to access to all portions of the Subject Properties, without charges or fees, at normal hours for purposes of the Agency's responsibilities identified herein. 6.5 Status Reports. City agrees to make oral and written reports at times requested by the Agency advising Agency and/or its staff of all matters and studies being made regarding the Subject Properties. 4 7. Non-Discrimination and Epual Opportunity. 7.1 Obligation to Refrain from Discrimination. The City covenants and agrees for itself, its successors, its assigns and every successor in interest to the Subject Properties or any part thereof, that there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Subject Properties nor shall the City itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Subject Properties. 7.2 Form of Nondiscrimination Clauses. All deeds, leases or contracts, including the Quitclaim between the Agency and City shall contain or be subject to substantially the following non-discrimination clauses: a. In deeds: "The grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." b. In leases: "The lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the leasing, subleasing, renting, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall lessee itself, or any person claiming under or through it, establish or permit such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the land herein leased." c. In contracts: "There shall be no discrimination against, or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee 5 itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." 8. Deed Restrictions/Covenants Running with the Land. The obligations of the City set forth in this Agreement are covenants running with the land and equitable servitudes and shall be binding upon the City and all subsequent Assignees and Ownership Transferees owning all or any portion of the Subject Properties, as applicable, for the benefit of the Agency and the successors and assigns of the Agency. The Quitclaim Deed shall provide that any future transfer or conveyance of the Subject Properties or any portion thereof shall, unless and until released by the Agency in writing, include notice of the covenants, conditions and restrictions contained herein. The Quitclaim Deed shall convey the Subject Properties subject to terms, conditions, covenants and restrictions as set forth in this Agreement specifically agreed to by the City in writing. Executed on the date first above written. ATTEST: City Clerk Pam Stoker Approved as to Form: Doug Holland City Attorney <signatures follow on next page> 6 Tustin Community Redevelopment Agency ("Agency" and "Seller") By: William A. Huston Executive Director City of Tustin ("City" and "Buyer") By: City Manager SUMMARY REPORT PERTAINING TO THE SALE OF REAL PROPERTY 14751 and 14741 Newport Avenue (California Community Redevelopment Law Section 33433) PURSUANT TO A PROPOSED PURCHASE AND SALE AGREEMENT Between: THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY And: CITY OF TUSTIN Prepared by: KEYSER MARSTON ASSOCIATES, INC. For: THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY Date: December 21, 2009 TABLE OF CONTENTS Paae I. Introduction ................................................................................................................................1 II. Description of the Proposed Project ...........................................................................................2 III. Estimated Cost to be Incurred by the Agency under the Proposed Agreement....' .....................4 IV. Estimated Value of the Site at the Highest and Best Use Permitted ..........................................5 V. Estimated Fair Re-Use Value of the Interest to be Conveyed ...................................................6 VI. Fair Market Price ........................................................................................................................7 VII. Purchase Price the City will be Required to Pay ........................................................................8 VIII. Elimination of Blight ....................................................................................................................9 IX. Conformance with the A61290 Implementation Ptans .............................................................10 SUMMARY REPORT PERTAINING TO THE PROPOSED SALE OF REAL PROPERTY CITY OF TUSTIN I. INTRODUCTION The Tustin Community Redevelopment Agency (Agency) is considering the conveyance of real property to City of Tustin (City) pursuant to an Agreement between the Agency and City Including Terms Conditions and Covenants of the Agency's Sale of Property Located at 14741 and 14751 Newport Avenue, Tustin to the City (the "Purchase and Sale Agreement" (PSA). The total subject site (Site) consists of 8 residential units on .35 acres. In sum, the property to be conveyed by the Agency consists of 8 units with approximately 8,432 square feet (SF) of improvements. This Summary Report is prepared in accordance with Section 33433 of the California Community Redevelopment Law. It consists of six additional sections, as follows: • Section II: Description of the Proposed Project • Section III: Estimated Cost to be Incurred by the Agency under the Proposed Agreement • Section IV: Estimated Value of the Site at the Highest and Best Use Permitted • Section V: Estimated Fair Re-Use Value of the Interest to be Conveyed • Section VI: Fair Market Price • Section VII: Purchase Price the City will be Required to Pay • Section VIII: Elimination of Blight • Section IX: Conformance with AB 1290 Implementation Plans Section 33433 Summary Report Keyser Marston Associates, Inc. 09191ndh Page 1 19830.006.001 II. DESCRIPTION OF THE PROPOSED PROJECT A. Proposed Transaction The City intends to purchase the 8-residential-unit property from the Agency, for a public purpose pursuant to which the City would utilize the property for required right-of-way at the northwest corner of Newport Avenue and Sycamore needed for proposed future improvements to Newport Avenue ("Newport Avenue Improvements", also identified as the Newport Avenue Extension, N/O Edinger Avenue, CIP 7131. The subject properties comprising the Site are located on the northwest corner of Newport Avenue and Sycamore Avenue within the South Central Redevelopment Project Area. The Site is also within the Study Area known as the Town Center New Beginnings Study Area in a neighborhood referred to as the Southern Gateway, which is currently being studied by the Agency to provide market driven solutions to improve the area along with two additional neighborhood areas (Center City, West Village). The transaction terms between the Agency and the City are included in the proposed PSA that is under consideration by the Agency. This summarizes the salient aspects of the proposed business terms. B. Agency Responsibilities • The Agency agrees to deliver to City, on or before Closing, the existing Rental Agreements on the Subject Properties which shall be assigned to the City. C. City Responsibilities • The City will pay the Agency a Basic Purchase Price of $533,000. • Requirement to Develop the Subject Properties. The sale of the Subject Properties to the City is intended to provide necessary right-of-way area for Newport Avenue Improvements with any remaining portions of the Subject Properties not necessary for the Newport Avenue Improvements to be utilized for redevelopment purposes. City shall agree to thereafter diligently prosecute to completion those tasks necessary to accommodate the Newport Avenue Improvements, pursuant to all governmental requirements, State and Federal Law. These tasks and actions shall generally consist of the following: Section 33433 Summary Report Keyser Marston Associates, Inc. os191ndn Page 2 19830.006.001 a. Finalization of construction plans and related documents for Newport Avenue Improvements including certification of actual right-of-way limits of the Newport Avenue Improvements as they impact the Subject Properties and identification of any remaining portions of the Subject Properties not necessary for the Newport Avenue Improvements, including identification of any interim construction easements that may be necessary across remaining portions of the Subject Properties until completion of construction of Newport Avenue Improvements. b. Completion of an HCD Relocation Plan for relocation of the 8 households currently residing in the Subject Properties and provision of any necessary relocation benefits, where applicable. c. Demolition and clearance of existing site improvements on the Subject Properties including structures and remaining concrete and asphalt paved surfaces. d. Grading of necessary right-of-way and remaining portions of the property as necessary for the Newport Avenue Improvements and other redevelopment purposes for the remaining portions of the Subject Properties not needed for the Newport Avenue Improvements. e. Construction of Newport Avenue Improvements. f. Marketing and sale of the balance of the Subject Properties not necessary for Newport Avenue Improvements for redevelopment purposes consistent with the City's Zoning, General Plan, and the South Central Redevelopment Plan. The City shall agree to cooperate and work closely with the Agency in the selection of any potential development opportunity on the remaining portions of the Subject Properties not needed for the Newport Avenue Improvements to ensure consistency with Agency objectives, the South Central Redevelopment Plan and South Central Project Area Implementation Plan. • City shall agree, as the future owner of the Subject Properties, to grant the Agency as a right, the reasonable review of preliminary and entitlement plans and submissions. Upon sale of the Subject Properties to the City, City agrees to continue to engage the Agency as the property manager for the Subject Properties which includes the cost of staffing for such support or the Agency's hiring of outside property management consultants, until such time as the Agency notifies the City in writing that such property management role is no longer required. In such role, Agency will be responsible for collecting all rents from the Site, and after all expenses are incurred transmitting any net operating income to the City. Section 33433 Summary Report Keyser Marston Associates, Inc. 09191ndh Page 3 19830.006.001 III. ESTIMATED COST TO BE INCURRED BY THE AGENCY UNDER THE PROPOSED AGREEMENT A. Total Agency Costs The estimated cost to the Agency of the proposed PSA include acquisition and preparation of the Site; interest costs during the holding period; and administrative and consultant costs related to the transaction. These costs have been estimated as follows: Acquisition Expenses (~) $706,742 Appraisals $13,600 Relocation $0 Environmental Phase I Reports $4,200 Plans/Surveys $ Program Management $ Legal/Financing $760 Engineering $ Administration $1,910 Interest $0 Transaction Costs $1,000 Overhead @ 12% of non-acquisition $2,576 Total Cost to Agency $730,788 (Or Say) Rounded $731,000 (1) Includes Transaction Costs Source: Tustin Redevelopment Agency Section 33433 Summary Report Keyser Marston Associates, Inc. 09191ndh Page 4 19830.006.001 IV. ESTIMATED VALUE OF THE SITE AT THE HIGHEST AND BEST USE PERMITTED Typically the analysis of the fair market value at highest and best use does not consider the specific Agency/Developer transaction or development concept, but rather the most profitable use that is consistent with the Redevelopment Plan or governing land use regulations. The purpose of this analysis is to estimate the maximum compensation that the Agency could achieve if it were to offer the subject property or development right on the open market. The highest and best use of the Site is the use that generates the highest property value. By definition, the highest and best use is that use which is physically possible, financially feasible, and legally permitted. According to the- City of Tustin Planning Department, the Site is zoned R-3. This classification permits a variety of residential uses including the subject site's current use. The current use as an 8 unit residential income property is, in our opinion, the highest and best use of the Site since any other use would not be legally permitted. KMA therefore concludes that the fair market value of the Site at its highest and best use is $1,265,000. Section 33433 Summary Report Keyser Marston Associates, Inc. 09191ndh Page 5 19830.006.001 V. ESTIMATED FAIR RE-USE VALUE OF THE INTEREST TO BE CONVEYED This section presents an analysis of the fair re-use value of the interest to be conveyed to the City subject to the conditions, covenants, and restrictions contained in the proposed PSA. In estimating the fair re-use value of the Site, KMA has reviewed these requirements, which set forth specific conditions with respect to the scope of development on the Site and the schedule of performance. After analyzing both the income approach and the comparable sales approach, KMA places more emphasis on the comparables approach and concludes that the fair reuse value of the Site is $35 per SF, or $533,000. Section 33433 Summary Report Keyser Marston Associates, Inc. 09191ndh Page 6 19830.006.001 VI. FAIR MARKET PRICE The fair market value of the Site for $1,266,000 also constitutes the fair market price of the Site. Section 33433 Summary Report Keyser Marston Associates, Inc. 09191ndh Page 7 19830.006.001 VII. PURCHASE PRICE THE CITY WILL BE REQUIRED TO PAY Under California Community Redevelopment Law, the Agency is obligated to publicly disclose information sufficient for a comparison of the purchase price contained in the proposed PSA with the estimated fair re-use value. In order to facilitate such a comparison, KMA has separately evaluated the financial terms contained in the proposed PSA. KMA considered the proposed purchase price and payment terms in order to prepare an estimate of the compensation expected to be received by the Agency. On this basis, KMA has conservatively estimated the present value of the Agency's compensation from the proposed PSA to be $533,000 or $35 per SF of land. Section 33433 Summary Report Keyser Marston Associates, Inc. 09191ndh Page 8 19830.006.001 VIII. ELIMINATION OF BLIGHT In its current condition, the Site and the existing 8 units are a blighting influence on the South Central Project Area in that the improvements are in excess of 42 years old and need significant upgrades. The project will remove the blighting influence and provide required right-of-way for the construction of Newport Avenue Improvements which will help relieve congestion and increase traffic capacity and circulation; any remaining property not needed for right-of-way will be utilized for redevelopment purposes. Section 33433 Summary Report Keyser Marston Associates, Inc. 09191ndh Page 9 19830.006.001 IX. CONFORMANCE WITH THE AB1290 IMPLEMENTAION PLANS The project conforms to the objectives defined in the Third Five Year Implementation Plan for the South Central Project Area adopted by the Agency in December 2004 for Fiscal Year 2005/2006 to Fiscal Year 2009/2010. Agency goals and objectives that are satisfied by the project include the following: • To eliminate blight, due to the disuse of the land within the Project Area caused by inadequate public improvements and the construction of major circulation public improvements and the construction of major traffic circulation improvements that could not reasonably be made by private enterprise acting along. • To extend Newport Avenue to relieve congestion at freeway interchanges and reduce traffic demand on Red Hill Avenue. Newport Avenue improvements have been identified in the Redevelopment Plan and Implementation Plan as critical and necessary public improvements in the elimination of blight and in relieving traffic congestion, providing better emergency services, and increasing traffic capacity. Any remaining portions of the Site not needed for right-of- way will be utilized for redevelopment purposes which will also eliminate blight and which is also consistent with the Implementation Plan. Section 33433 Summary Report 09191ndh 19830.006.001 Keyser Marston Associates, Inc. Page 10