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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 Page 1 of 4 [a 9 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 Page 3 of 4 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 Page 4 of 4 : 111' - I