HomeMy WebLinkAboutCC RES 12-990
IN
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, APPROVING DISPOSITION
AND DEVELOPMENT AGREEMENT 2012-002 BETWEEN
THE CITY OF TUSTIN AND LEGACY VILLAS LLC, A
SPECIAL PURPOSE ENTITY FORMED BY THE IRVINE
COMPANY, FOR 225 AFFORDABLE RESIDENTIAL
APARTMENTS, AT DISPOSITION PACKAGE 1A-NORTH,
TUSTIN LEGACY (ST. ANTON PARTNERS, LLC).
The City Council of the City of Tustin does hereby resolve as follows:
The City Council finds and determines as follows:
A. That in 2010, the Tustin City Council approved the "Tustin Legacy
Disposition Strategy for the Former Master Developer Footprint" for
Neighborhoods B, D, E, and G, including Disposition Package 1A-
North within Planning Area 15 of Neighborhood G.
B. Pursuant to an extensive developer selection process, St. Anton
Partners was selected to develop the site and on June 19, 2012, an
Exclusive Negotiation Agreement (ENA) was executed with The
Irvine Company, on behalf of St. Anton Partners.
C. That St. Anton Partners and City of Tustin have completed and
desire to enter into Disposition and Development Agreement 2012-
002 to cause the development of 225 affordable multi-family
residential apartment homes, including 88 very low-income, 73 low-
income, and 64 moderate-income units in compliance with California
Government Code Section 65915(1), at Disposition Package 1A-
North, Tustin Legacy, to be implemented by St. Anton Partners or its
affiliate as may be approved by the City of Tustin.
D. That the site is zoned as Planning Area 15, Residential Core,
Neighborhood G in the MCAS Tustin Specific Plan (SP-1); and
designated MCAS Tustin (MCAS) by the Tustin General Plan. In
addition, the project has been reviewed for consistency with the Air
Quality Sub-element of the City of Tustin General Plan and has
been determined to be consistent with the Air Quality Sub-element.
E. It is the City's desire to effectuate development of the Project
through the sale, lease and development of the Property in
accordance with Disposition and Development Agreement 2012-
_0
002, all in conformance with Governmental Requirements and in
Resolution 12-99
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substantially the form on file with City Clerk, pursuant to which,
among other matters:
At conveyance, the City will receive $30,148,000 from the
sale of parcels 2A and 1A-North that will be placed in the
"Land Sale" account. An independent third party appraisal
was conducted by the City; the appraisal confirms that the
property is being sold at Fair Market Value. Because of the
density bonus and transfer of 120 affordable units to 1A-
North, the opinion of value was for the combined parcels 2A
and 1A-North. The City will receive $30,148,000 upon the
conveyance of parcel 2A, and $1.00 upon the conveyance of
1A-North.
2. The Developer will pay the Tustin Legacy Fair Share
Infrastructure Obligation in the amount of $4,324,393 for the
construction of infrastructure within the Tustin Legacy
project. The Fair Share will be paid by the Developer when
the City has opened Park Avenue to public access; public
access will be determined by the Director of Public Works.
3. Developer is agreeing to design and construct a 4.7 acre
park and facilities that will be dedicated to the City upon
completion. The value of the park and facilities are
approximately $2,200,000.
4. Currently the property is tax exempt because of City
ownership. The moderate income units will be taxable;
however, the very low income units and low income units will
be tax exempt. In lieu, the Developer has agreed to pay an
annual administrative fee equal to the property taxes that the
City would normally receive.
5. The City's transaction costs are borne by the Developer.
6. The Developer will pay an annual Community Facilities
District (CFD) fee not to exceed 0.15 percent of the imputed
assessed value of the property; escalated at 2.0 percent
annually. The CFD will be used for essential services and
maintenance within Tustin Legacy.
That on October 16, 2012, the Tustin City Council continued the
matter to an adjourned regular meeting on October 30, 2012.
That on October 30, 2012, the Tustin City Council continued the
matter to a regular meeting on November 6, 2012.
Resolution 12-99
Page 2 of 4
H. That a public hearing was duly noticed, called, and held on
November 6, 2012 by the Tustin City Council.
That on November 6, 2012, the Tustin City Council adopted
Resolution No. 12-96 finding that the Project is within the scope of
the previously approved MCAS Tustin Final Program EIS/EIR
previously certified on January 16, 2001, as amended by Supplement
and Addendum and that no new effects could occur and no new
mitigation measures would be required and an additional
environmental analysis, action or document is not required by the
CEQA. The City has alternatively determined that the proposed
project is exempt from further CEQA review pursuant to Government
Code Section 65457.
11. DDA 2012-002, a copy of which is on file with the Office of the City Clerk,
is hereby approved subject to any non-substantive modifications as may
be determined necessary as may be approved by the City Manager's
office, or as recommended by the City's special counsel or the City
Attorney.
111. The City Manager is hereby authorized to take such actions, and execute
such documents and instruments, as deemed necessary or desirable to
implement the terms of the DDA and all attachments to the DDA and other
documents as necessary and, upon satisfaction of all conditions and
obligations of the Developer thereto and pursuant to the DDA, to transfer
the subject site to the Developer.
PASSED AND ADOPTED by the City Council of the City of Tustin at an adjourned
regular meeting held on the 6th day of November, 2Q,-12. X,
JOHN /IELSEN,
Mayor -
ATTEST:
TXAC)��
PAMELA 'STOKE k-,—A
City Clerk
Resolution 12-99
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STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN NINE
1, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution No. 12-99 was duly
passed and adopted at an adjourned regular meeting of the Tustin City Council, held on
the 6t" day of November, 2012, by the following vote:
PAMELA STOKER,
City Clerk
Resolution 12-99
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