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HomeMy WebLinkAboutCC RES 12-100A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING DISPOSITION AND DEVELOPMENT AGREEMENT 2012-001 BETWEEN THE CITY OF TUSTIN AND LEGACY VILLAS LLC, A SPECIAL PURPOSE ENTITY FORMED BY THE IRVINE COMPANY, FOR 533 RESIDENTIAL APARTMENTS, INCLUDING 37 MODERATE-INCOME AFFORDABLE UNITS, AT DISPOSITION PACKAGE 2A, TUSTIN LEGACY (THE IRVINE COMPANY, 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 2A within Planning Area 13 of Neighborhood D. B. Pursuant to an extensive developer selection process, The Irvine -. Company was selected to develop the site and on June 19, 2012, rid. an Exclusive Negotiation Agreement (ENA) was executed. D C. That The Irvine Company and City of Tustin have completed and desire to enter into Disposition and Development Agreement 2012- 001 to cause the development of 533 multi-family residential apartment homes, including 37 moderate-income affordable units in compliance with California Government Code Section 65915(1), at Disposition Package 2A, Tustin Legacy, to be implemented by The Irvine Company or its affiliate as may be approved by the City of Tustin. D. That the site is zoned as Planning Area 13, Community Core, Neighborhood D 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- 001, all in conformance with Governmental Requirements and in Resolution 12-100 Page 1 of 4 substantially the form on file with City Clerk, pursuant to which, among other matters: 1 At conveyance, the City will receive $30,148,000 from the sale of parcels 2A and 1A-North that will be placed in the "Tustin Legacy 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 (discussed later within this report), the opinion of value was for the combined parcels 2A and 1A- North. The City will receive ($30,148,000) upon the conveyance of 2A, and $1.00 upon the conveyance of 1A- North. 2. At conveyance, the Developer will pay to the City a Tustin Legacy Master Marketing Program Fee of $50,000 for the marketing of Tustin Legacy. 3. The Developer will pay the Tustin Legacy Fair Share Infrastructure Obligation in the amount of $15,300,000 for the construction of infrastructure within the Tustin Legacy project. INS 4. Currently the property is tax exempt because of City ownership. The property will lose its tax exempt status upon conveyance of the property to the Developer and will be taxed accordingly. 5. The Developer will pay an annual Community Facilities District (CFD), known as Tax 'B' not to exceed 0.15 percent of the assessed value of the property; escalated at 2.0 percent annually. The Tax 'B' CFD proceeds will be used for essential services and maintenance within Tustin Legacy. The Developer has elected to pay for the Tustin Legacy Fair Share Infrastructure Obligation without the use of Tax 'A' which is an alternative method of funding capital improvements within Tustin Legacy. 6. The City's transaction costs are borne by the Developer. 7. The Developer will develop the proposed project at Disposition Package 2A in accordance with the DDA, Development Agreement (DA) 2012-001, CP 2012-002, DR FRMER 2012-004, Density Transfer, Density Bonus, and PM 2012- Mills Resolution 12-100 Page 2 of 4 136, consistent with any conditions of approval, and any approved concessions and incentives; and, F. That on October 16, 2012, the Tustin City Council continued the matter to an adjourned regular meeting on October 30, 2012. G. That on October 30, 2012, the Tustin City Council continued the matter to a regular meeting on November 6, 2012. H. That a public hearing was duly noticed, called, and held on November 6, 2012 by the Tustin City Council. I. That on November 6, 2012, the Tustin City Council adopted Resolution No. 12-95 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. DDA 2012 11. -001, 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 C"'f Tustin at an adjourned regular meeting held on the 6th day of November, 2012. r-,, JOHN NIELSEN, Mayor Resolution 12-100 Page 3 of 4 FUMMIN kftQa'� PAMELA STOkER', City Clerk STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN 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. 12-100 was duly passed and adopted at an adjourned regular meeting of the Tustin City Council, held on the 6 th day of November, 2012, by the following vote: COUNCILMEMBERS AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSTAINED: COUNCILMEMBERS ABSENT: PAUELA STOKEW, Clerk Nielsen, Murray, Amante, Gavello, Gomez (5) None (0) None (0) None (0) Resolution 12-100 Page 4 of 4 SIMON OEM-, ME