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HomeMy WebLinkAbout13 MODIFICATION TO THE EXCHANGE AGREEMENT BETWEEN THE SECRETARY OF THE ARMY AND CITY OF TUSTINAgenda Item 13 AGENDA REPORT City Manager Finance Director NIA MEETING DATE. MAY 6, 2014 TO: JEFFREY C. PARKER, CITY MANAGER FROM: CITY MANAGER'S OFFICE SUBJECT: MODFICATIONS TO THE 7XCHANGE AGRE':MENT BY AND BETWEEN THE SECRETARY OF THE ARMY AND THE CITY OF" TUSTI N SUMMARY: On January 21, 2014 the Tustin City Council, by way of Resolution 14 -05, approved and authorized the City Manager to execute the Exchange Agreement by and between the United States, acting by and through the Secretary of the Army, represented by the U.S. Army Corps of Engineers at the Sacramento District (hereafter, the "Secretary of the Army') and the City of Tustin to effectuate a land exchange of the existing Tustin Army Reserve Center for another similar parcel at Tustin Legacy. Although previously approved by the Secretary of the Army's negotiators, the City subsequently received requested modifications from the Secretary of the Army's negotiators pursuant to directions from their superiors. The parties have negotiated these modifications and they are reflected in the attached Exchange Agreement_ RECOMMENDATION: It is recommended that the City Council: 1. Adopt Resolution No. 14 -28, a resolution of the City Council of the City of Tustin, California, approving an Exchange Agreement By and Between the Secretary of the Army ald the City of Tustin for the exchange of land between Planning Areas 1 and 18 within the boundaries of the MCAS Tustin Specific Plan and repealing Resolution No 14 -05. FISCAL IMPACT- The Army and the City will exchange equally valued parcels and at no cost to either party other than those costs already contemplated pursuant to the executed Letter Agreement. There is currently a Tustin Legacy Fair Share Infrastructure obligation assigned to the City Exchange Parcel (within Planning Area 1) for non - residential. private uses; the obligation does not currently apply to they Army Exchange Parcel (within Agenda Report May 6, 2014 Page 2 of 3 Planning Area 18) for the existing Tustin Army Reserve Center. As a result of the exchange the obligation will be transferred to the parcel being acquired by the City to be realized by the future developer of the site. CORRELATION TO THE STRATEGIC PLAN: The relocation of the existing Tustin Army Reserve Center (the "Reserve Center'), which is currently located immediately adjacent to The District at Tustin Legacy ( "The District"), will create additional development potential for The District, including additional parking and circulation. In additional to the new development potential at The District, the new Army reserve center ( "Replacement Facility ") is proposed to be located on another site at Tustin Legacy adjacent to other public and institutional uses (e.g. sheriffs training fac lity, law enforcement, etc.) to which it will be more compat'ble. As a result, the Exchange Agreement will further the City's goal of Economic and Neighborhood Development by enabling business opportunities and job development. By partnenng with the Army on the mutually beneficial exchange, the City is also continuing to build stronger Community and Regional Relationships as it continues to work collaboratively with agencies within and outside Tustin on issues of mutual interest and concern BACKGROUND: On January 21, 2094 the Tustin City Council, by way of Resolution 14 -05 approved and authorized the City Manager to execute the Exchange Agreement to effectuate a land exchange of the existing Tustin Army Reserve Center for another similar parcel at Tustin Legacy. Prior to execution of the agreement by the Secretary of the Army, the review and authorization protocol for the Secretary of the Army's approval was changed, resulting in the final review for the Exchange Agreement moving from the Sacramento District to the main headquarters -n Washington D.C. (HQ) and vesting signatory authority with the Deputy Assistant Secretary of the Army (DASA). HQ subsequently reviewed the Exchange Agreement and proposed a number of modifications to it and to two exhibits: Form of Government Lease of Leaseback Facility and the Landscape Construction Maintenance Agreement. Copies of the three documents highlighting the modifications in track change form from those previously approved are included as Attachment 1 to this report. Three new exhibits are now included with the modified Exchange Agreement as Exhibits H (Right of Entry in favor of the City), Exhibit I (Right of Entry in favor of the Government) and Exhibit J (Landscape Agenda Report May 6, 2014 Page 3 of 3 Easement to the City). None of the proposed modifications change the major deal points or schedule as previously agreed upon. As represented by the Secretary of the Army's negotiators the following process has to be followed to obtain final approval. Upon City execution, the Exchange Agreement will be transmitted to DASA's office for final review and execution. The DASA's office must then submit the T -10 notification to Congress before DASA will approve. DASA may request non - substantive changes; therefore, Resolution 14 -28 authorizes the City Manager to approve such changes, if necessary. Substantive changes will require City Council approval. ENVIRONMENTAL Pursuant to Resolution 14 -28, approval of the Exchange Agreement does not constitute a project and/or is exempt under the California Environmental Quality Act (CEQA) for the reasons set forth therein. Staff will be available to answer any que�-tions. 16 4 41 - lbt Matt West Principal Management Analyst Attachment 1 — Modified Documents with Track Changes Exhibit A - Exchange Agreement Exhibit B - Form of Government Lease of Leaseback Faclity Exhibit C - Landscape Construction and Maintenance Agreement Attachment 2 -- City Council Resolution 14-28 Exhibit 1 - Modified f - xchange Agreement between the Army and City of Tustin