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HomeMy WebLinkAbout10 TUSTIN LEGACY DISPOSITION PACKAGE 1CMEETING DATE: NOVEMBER 1, 2011 TO: WILLIAM A. HUSTON, INTERIM CITY MANAGER FROM: CITY MANAGER'S OFFICE & REDEVELOPMENT AGENCY SUBJECT: EXPERT PANEL RECOMMENDATIONS -THREE MOST QUALIFIED DEVELOPMENT ENTITIES TO MOVE FORWARD IN THE DEVELOPER SELECTION PROCESS FOR A PORTION OF DISPOSITION PACKAGE 1 C SUMMARY The City Council's confirmation is requested of the three development entities determined most qualified by the City selected Expert Panel for an approximate 20 acre property in Tustin Legacy Disposition Package 1 C, for commercial development. RECOMMENDATION It is recommended that the City Council confirm the top three most qualified development entities for an approximate 20 acre property in Tustin Legacy Disposition Package 1 C, identified herein as recommended by the Expert Panel for this Disposition Package, and authorize staff to move forward with Step 2, including the solicitation of specific proposals from each development entity. FISCAL IMPACT The Tustin Legacy Disposition Strategy identified the preliminary projected expenditures likely to be expected related to implementation activities associated with the Disposition Strategy. Agency staff time and consultant support have been involved in setting up and supporting Step 1 of the Tustin Legacy developer screening process for Disposition Package 1 C. In addition, the City Council previously authorized honorariums to those serving on the Expert Panels, which were budgeted and included in the Redevelopment Agency's Fiscal Year 2011-2012 budget and which have been identified in the Agency's Enforceable Obligations Payment Schedule. BACKGROUND The Tustin City Council on April 25, 2011, adopted a revised Tustin Legacy Disposition Strategy. On July 19, 2011, the Council confirmed an Expert Panel process for the Step 1 developer screening process for Early Opportunity Disposition Packages at Tustin Legacy based on product type, including the numerical scoring and qualifying criteria to Agenda Report -Expert Panel Recommendations For Portion of Disposition Package 1 C November 1, 2011 Page 2 be.used in interviewing each development entity by each Expert Panel. A copy of the criteria used in the developer interviews is attached (Attachment 1). As the Council will recall, the developer selection process is a two-step process for each Disposition Package. The first step involves a personal interview over sighted by a panel of City selected experts who screen and recommend to the City Council a proposed list of the three firms that they believe are most qualified to proceed with a particular. Disposition Package within the Tustin Legacy project. Based on concurrence by the City Council of the short listed top three firms, the three most qualified firms for each individual Disposition Package, or parcel solicitation, will submit a more detailed proposal and pro forma/business offer to the City in response to specific terms and conditions identified by the City. After the Step 2 submittals, a technical evaluation team of City and Agency staff and outside consultants with specific expertise in areas of development and financing, etc., will review the proposals and provide a recommendation to the City Council of the preferred developer, including a ranking of each of the firms based on their responses. Based on these recommendations, the City Council will then be asked to select the developer for each Disposition Package and instruct staff to prepare any subsequent Development Agreement and sale documents for City Council approval. Staff recently issued a developer solicitation for approximate 25 acres which included potentially two commercial development sites (Disposition Package 1 C) as shown on Attachment 1. One site is located to the west of the future Tustin Ranch Road extension and one site to the east within the potential excess right-of-way Edinger ramp for the Tustin Ranch Road extension. The most westerly parcel is approximately 20 net developable acres permitted for commercial uses under the MCAS Tustin Specific Plan. The Specific Plan was unclear about the land use designation of the excess right-of-way for the Edinger Ramp which is approximately 5 acres in net size given slope areas for the Edinger ramp. Based on responses to the questionnaires sent out to each firm interested firm, 6 development entities qualified to be interviewed for the Disposition Package. Prior to the interview one of the development entities withdrew (Trammel Crow So Cal Development, Inc.) and another development entity (Home Depot) did not make the interview even though the City's Expert Panel was willing to accommodate acall-in interview for them. The Expert Panel for the site met on October 19th and interviewed the balance of the eligible development teams. While there were only four firms interviewed, the Expert Panel felt that there was adequate strength and experience in the teams that they interviewed and have Agenda Report -Expert Panel Recommendations For Portion of Disposition Package 1 C November 1, 2011 Page 3 recommended three development entities as the most qualified to move to Step 2 in the City's developer selection process as follows: Three Firms Recommended as most Qualified Regency Centers CJK/Acacia Partners Marinita Development Company, Inc. In discussions with the development entities, the Expert Panel also suggested that the site for proceeding with Step 2 of the process, only include the westerly most 20 acre portion of Disposition Package 1 C. They also asked that Agency staff pass onto the City Council their observation that large big box uses would not really be appropriate on the site. The remaining firm that was not recommended by the Panel to proceed in the process was Strata Tustin II. The Panel's reasoning was that although the company submitted an application, it did not have experience with the size and scale of commercial development anticipated with this Disposition Package. While Strata II did bring another firm with them to the interview, the teams had never worked together before and did not respond adequately to the Expert Panel's questions. City Council concurrence of the short listed top three firms identified above is now requested. Each of the three firms noted above would then move to Step 2 in the City's developer selection process. As recommended by the Panel, staff will also proceed only on the most westerly portion of Disposition Package 1 C. Special thanks are extended to members of the Expert Panel that so graciously gave of their expertise, time and energies in the City's developer selection interview process including: • Richard Gollis, The Concord Group; • Don Moe, Donald E. Moe, Inc. • Dick Sim, retired Irvine Company • Richard Ortwein, Focus Real Estate L. P. • Richard Hunsaker, civil engineer retired; • Patrick Allen, Langdon Wilson • Robert McClellan, McClellan & Associates Agenda Report -Expert Panel Recommendations For Portion of Disposition Package 1 C November 1, 2011 Page 4 Staff will be available to respond to any questions from the City Council. r Christine Shingleto Assistant City Manager Attachments: 1-Exhibit of Disposition Package 1C 2- Expert Panel Scores of Disposition Package 1 C 3- Background on Top Three Development Entities