HomeMy WebLinkAbout11 INT. AG. PROP MCAS 11-18-02AGENDA REPORT --
MEETING DATE: NOVEMBER 18, 2002
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
REDEVELOPMENT AGENCY STAFF
INTERIM AGRICULTURAL PROPOSALS, MCAS TUSTIN
SUMMARY
Proposals to utilize two parcels at the former Marine Corps Air Station (MCAS) Tustin for
agricultural use have been received from three prospective agricultural operators (see
Attachment 1). Staff requests that the Tustin City Council identify the successful proposal(s) for
each agricultural parcel or reject all of the proposal(s). Council must also authorize staff to work
with the selected agricultural tenant in securing the required discretionary entitlements; to ensure
compliance with the California Environmental Quality Act (CEQA); to complete lease negotiations;
and execute an interim lease with the successful agricultural lessee.
RECOMMENDATION
That the City Council direct staff to work with Gargiulo, Inc. as the prospective agricultural tenant
for Parcel 1 and Pinnacle Farms, LLC as the prospective agricultural tenant for Parcel 2.
FISCAL IMPACT
All costs associated with the implementation of this agricultural lease will be borne by the
successful agricultural tenant. City and Redevelopment Agency staff will be responsible for
contract administration.
BACKGROUND/DISCUSSION
As previously directed by the City Council, staff released a "Request for Proposals to Lease
Land on a Portion of the Former Marine Corps Air Station (MCAS) Tustin" on September 30,
2002. The RFP required proposals to indicate the amount of annual rent per acre offered for
Parcel 1 (192 acres) and Parcel 2 (80 acres). Three proposals were received prior to the
submission due date and opened on November 4, 2002. The proposals are summarized as
follows:
City Council Report
MCAS Tustin Ag-Lease Proposals
November 18, 2002
Page 2
Parcel 1
Proposal Annual Rent/Acre Total Rent
@ 192.8 Acres
Pinnacle Farms LLC .............. $2,450 ..................... , ............... $472,360
Gargiulo, Inc ........................ $2,500 ................................... $482,000
Orange County Produce ......... $ 200 .................................... $ 38,560 ·
Parcel 2
Proposal Annual Rent/Acre Total Rent
@ 80.7 Acres
Pinnacle Farms LLC .............. $3,050 ................................. .~..$246,135
Gargiulo, Inc ........................ $2,500 ................................... $201,750
Orange County Produce ......... $ 200 .................................... $ 16,140
The Gargiulo, Inc. proposal is the highest offer for Parcel 1 and Pinnacle Farms LLC is the
highest offer for Parcel 2. Both proposals have been determined complete, all required proposal
deposits have been submitted; corporation information, experience and background information
provided. None of the responses have identified any financial surety forfeitures, bankruptcies,
convictions or pending litigations that would otherwise potentially disqualify them from Council
consideration.
Once proposals are selected by the City Council and authorization granted to staff, the approved
operators will be assisted in securing the necessary Use Permits from the Community
Development Department/TUstin Planning Commission, completing the required CEQA
clearances, obtaining a City Business License and any necessary building or encroachment
permits. Also, staff will negotiate a lease agreement with the selected operators that, when
completed, will be brought to the City Council for authorization.
~h~istine A. Shinglet-on /'/
Assistant City Manager
Dana Ogdon
Program Manager
cc/aglease.doc
Attachment 1: Agricultural Lease Areas Map
Attachment 1
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