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HomeMy WebLinkAboutCC RES 14-13RESOLUTION NO. 14 -13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING DISPOSITION AND DEVELOPMENT AGREEMENT 13 -03 BETWEEN THE CITY OF TUSTIN AND STANDARD PACIFIC CORPORATION FOR THE DEVELOPMENT OF 375 RESIDENTIAL UNITS, A FOCAL PARK AND OTHER NEIGHBORHOOD AMENITIES WITHIN PLANNING AREA 15 OF NEIGHBORHOOD G OF THE MCAS TUSTIN SPECIFIC PLAN 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 1B within Planning Area 15 of Neighborhood G. B. That in July 2012, the City entered into an Exclusive Negotiation Agreement (ENA) with the Developer for land acquisition and development of approximately 238 single family homes, a neighborhood park, and open space on Disposition Parcel 1B. Subsequently, in February 2013 the ENA was amended expanding the area under negotiation from 51 acres to 78 acres through the inclusion of Parcel 6A. The single family homes were increased from 238 to 375 units. The amended ENA allowed for a better plan for the neighborhood south of Moffett Road and east of Park Avenue. C. That Standard Pacific Corporation and the City of Tustin have completed and desire to enter into a Disposition and Development Agreement (DDA) 13 -03 to cause the development of 375 single family detached units, a focal park and other neighborhood amenities for Disposition Packages 1 B and 6A at Tustin Legacy. D. That the site is zoned as MCAS Tustin Specific Plan (SP -1) within Planning Area 15 of Neighborhood G; and designated as MCAS Tustin 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. That it is the City's desire to effectuate development of the Project through the sale and development of the Property in accordance with Disposition and Development Agreement 13 -03, all in conformance with Governmental Requirements and in substantially the form on file with City Clerk, pursuant to which, among other matters: 1. Sale of Land: $56,000,000 which will be received by the City upon conveyance to the Developer which is anticipated in March 2014 but in no event later than August 31, 2014. An independent third party appraisal was Resolution No. 14 -13 Page 1 of 3 conducted by the City; the appraisal confirms that the property is being sold at Fair Market Value. 2. Marketing Fee: At conveyance, the Developer will pay to the City a Tustin Legacy Master Marketing Program Fee of $50,000 which is used by the City for marketing Tustin Legacy. This fee will be paid at the close of escrow. 3. Tustin Legacy Backbone Infrastructure Obligation: $16,934,704; the Developer's obligation will be received incrementally as building permits are issued to the Developer. The incremental distribution to the City will be accelerated to a lump sum payment by the Developer if the City awards a contract and commences construction on the Peter's Canyon Channel. 4. Community Facilities District (CFD): Estimated at $13,247,475. Tax `A' for facilities and infrastructure will require the issuance of bonds; the rate is estimated at 0.31% of the property value. Tax 'B' for essential City services and maintenance has been levied on previous projects within Tustin Legacy at an average rate of 0.15% of the estimated property value. In addition, the Developer will be required to participate in a TUSD Facilities Bond with an estimated rate of 0.19% of the estimated property value. The overall average property tax rate is estimated between 1.70% and 1.75 %. 5. Subsequent Participation: The City will receive 50% of the amount by which the total Net Profits exceed 8.50% of the Gross Sales Price received by the Developer. Participation will be calculated at the completion of the project which is no later than 60 months from the opening of model homes. 6. Property Tax Status: 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. 7. Transaction Costs: The City's transaction costs are borne by the Developer. 8. The Developer will develop the proposed project of Disposition Packages 1 B and 6A in accordance with the Disposition and Development Agreement (DDA) 13 -03, Development Agreement (DA) 2013 -003, Concept Plan (CP) 2013 -002, Design Review (DR) 2013 -006, and Tentative Tract Map (TTM) 17507, consistent with any conditions of approval. F. That a public hearing was duly noticed, called, and held on January 21, 2014, by the Tustin City Council. The City Council continued the matter to a regular meeting on February 4, 2014, and continued it further to February 18, 2014. G. That on January 16, 2001, the City of Tustin certified the Program Final Environmental Impact Statement/Environmental Impact Report (FEIS /EIR) for the reuse and disposal of MCAS Tustin. On December 6, 2004, the City Council adopted Resolution No. 04-76 approving a Supplement to the FEIS /EIR for the extension of Tustin Ranch Road between Walnut Avenue and the future alignment of Valencia North Loop Road. On April 3, 2006, the City Council adopted Resolution No. 06 -43 approving an Addendum to the FEIS /EIR. And, on May, 13, 2013, the City Council adopted Resolution No. 13 -32 approving a second Resolution No. 14 -13 Page 2 of 3 Addendum to the FEIS /EIR. The FEIS /EIR along with its Addenda and Supplement is a program EIR under the California Environmental Quality Act (CEQA). The FEIS /EIR, Addenda and Supplement considered the potential environmental impacts associated with development on the former Marine Corps Air Station, Tustin An Environmental Checklist has been prepared and concluded that these actions do not result in any new significant environmental impacts or a substantial increase in the severity of any previously identified significant impacts in the FEIS /EIR. Moreover, no new information of substantial importance has surfaced since certification of the FEIS /EIR. DDA 13 -03, 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. III. 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 a regular meeting on the 18th day of February, 2014. ELWYN Ad MURRAY, Mayor ATTEST: 4 JEFF . ARKER, er City C STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) COUNCILPERSONS AYES: COUNCILPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABS T: 4 6 1— J C PARKER, Resolution No. 14 -13 Page 3 of 3 Murray, Puckett, Nielsen, Gomez, Bernstein (5) None (0) None (0) None (0)