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HomeMy WebLinkAbout17 AG TUSD/MCAS 10-21-96 NO. 17 10-21-96 lnter-Com DATE: OCTOBER 21, 1996 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER CHRISTINE A. SHINGLETON, ASSISTANT CITY MANAGER AGREEMENT BETWEEN TUSTIN UNIFIED SCHOOL DISTRICT AND CITY OF TUSTIN, AS THE LOCAL REUSE AUTHORITY, FOR MCAS-TUSTIN SUMMARY: The proposed Agreement fulfills the conditiOns impoSed by the Base ClOsure TaSk Force for transfer of 60 acres at MCAS-Tustin to the Tustin Unified School District. Recommendation: It is recommended that the City Council approve an agreement between the City of Tustin and the Tustin Unified School District regarding transfer of school sites and other mitigation measures at MCAS-Tustin. Fiscal Impact: There is no fiscal impact to the General Fund. Background and Discussion: The National Defense Authorization Act of Fiscal Year 1994 and the Base Closure Community Redevelopment and Homeless Assistance Act of 1994 (the "Acts") identify a community-based reuse screening process for identifying state, county and local agency interests on property at MCAS-Tustin. After the required outreach and solicitation of notices of interest, the MCAS-Tustin Base Closure Task Force, at a meeting on January 9, 1996, recommended that a number of agencies and interested parties receive property under the Acts. Federal law and regulation allow for public benefit conveyances of surplus property at partial or full discount from fair market value subject to final approval by the federal Department of Defense and the Department of Education. It was recommended by the Task Force that the Tustin Unified School District ("the District") receive 60 acres of vacant land at MCAS-Tustin. The acreage would include two ten-acre sites for two elementary schools and one forty-acre site for a high school. Agreement Between TUSD and City of Tustin as the Local Reuse Authority for MCAS-Tustin October 21, 1996 Page 2 The Task Force's recommended action on the District's request was conditional upon the City, as the Local Reuse Authority, entering into an agreement with the District. Attached for the City Council's approval is a signed agreement from the District. A particular concern to the Task Force was the issue of the potential imposition of a Mello Roos Community Facilities District (CFD) within pOrtions of the district on the Base. The District has agreed not to impose a CFD based' on a request from two members of their legislative body or a landowner petition. However, they believe that they should be given the opportunity to pursue a CFD where there is registered voter support for this school financing technique. In the event the District decides to utilize a voter registration petition process to create a CFD, it has agreed that such a petition would not be acted upon unless there is a minimum of 100 registered voters on the Base to be included within the proposed CFD for each of the 90 days preceding the close of any protest hearing, and that no petition would be submitted until entitlements are approved for 50% of the units within the District boundaries on the Base. The District has also agreed that they will not impose a levy, impact fee or special tax which will result in the total special tax on individual property exceeding one-half of one percent (.5%) of assessed valuation for any established CFD. Attachment AGREEMENT BETWEEN CITY OF TUSTIN AND TUSTIN UNIFIED SCHOOL DISTRICT REGARDING TRANSFER OF SCHOOL SITES AND OTHER MITIGATION MEASURES This Agreement is made and entered into by and between the City of Tustin, a municipal corporation (hereinafter "City"), the Local Redevelopment Authority ("hereinafter "LRA"), and the Tustin Unified School District (hereinafter "District"). RECITALS 1. The United States Department of Defense ("DOD") has determined to close Marine Corps Air Station-Tustin CMCAS-Tustin"). 2. MCAS-Tustin is mainly located within the City of Tustin, with the exception of . approximately 80 acres which are located in the City of Irvine. See Exhibit "A" site map of attached hereto. 3. The City of Tustin, which is the federally approved Local Redevelopment Authority (LRA), chairs the MCAS-Tustin Reuse Task Force ("Task Force") and is responsible for preparation of a reuse plan, and joint environmental impact statement/environmental impact report (EIR/EIS) for consideration .by the DOD, the LRA and the cities of Tustin and Irvine in ultimately determining the appropriate disposition of real property at McAS-Tustin. 4. 'A goal of the Task Force and the City is to have a balanced land use plan that is economically viable and does not impose such financial burdens on private development that the desired land uses are never, or only partially developed. In addition, because of the need to rebuild much of the infrastructure at MCAS-Tustin, and the resultant need for new revenues 10/2/96 1 to finance such construction, it is desirable to have as much of the real property at MCAS- Tustin as possible, remain on the tax rolls and not be given over to public, tax-exempt uses. 5. As part of the federal base closure and reuse process, local agencies, such as the District have the oppommity to request from the LRA a public benefit conveyance of property which would require £mal approval by DOD and the federal agency sponsoring the public conveyance request. In such process, great weight is given to the LRA's views on such transfers. 6. The District wishes to acquire two, ten (10) acre sites at MCAS-Tustin for elementary schools and one forty (40) acre site for a high school, and desires the support of the LRA for such transfer. 7. The City and LRA are agreeable to supporting such transfer and implementing other .actions, as described herein, as part of a package of measures to mitigate the impacts of the base reuse on the District, providing District agrees that such measures satisfy the DiStrict's claims from the City of Tustin or LRA for environmental mitigation. 8. District acknowledges that the State Legislature has determined that: "the subject of the financing of school facilities with development fees is a matter of statewide concern," and ."For this reason the Legislature hereby occupies the subject matter of mandatory development fees and other development requirements for school facilities finance to the exclusion of all local measures on the subject." 9. The District acknowledges that in agreeing to the transfer and other mitigation measures, the City and LRA is providing consideration that it is .not otherwise required or obligated to provide, and that in exchange for such consideration, the District understands that it will curtail its rights to challenge the City of Tustin?s or LRA's land use approk, als as -provided herein. 10/2/96 2 NOW, THEREFORE, in consideration of the Recitals stated above, and the promises and mutual covenants herein, the parties agree as follows: AGREEMENT 1. LRA's Obligations LRA shall: mo Bo 10/2/96 Support the transfer of approximately sixty (60) acres at no cost to the District for purposes of two (2), ten (10) acre elementary school sites and one forty (40) acre high school site. The LRA does not believe that the District will be able to comply with current terms and conditions normally required for an educational public benefit conveyance by the U.S. Department of Education. The LRA will, therefore, recommend to the Department of Defense transfer of the school sites to the LRA as an Economic Development Conveyance (EDC) and then the LRA will agree to subsequently transfer the sites to the District subject to all other terms of this Agreement. As an alternative, in the event an EDC application is not possible or approved as determined by the Department of Defense, the LRA will support and assist the District in any efforts to ensure that any transfer to the District under an educational public benefit conveyance is under favorable terms and conditions to the District. · Include a mitigation measure in .the EIS/EIR requiring the payment of school fees on development projects in MCAS-Tustin in the amounts allowed by state law; 3 Co Do Support the receipt by the District of their share of tax increment pursuant to Section 33607.5 of California Community Redevelopment Law, in the event a Redevelopment Project Area is created for MCAS, Tustin. Support the District's use of other alternative financing techniques (other than the use of assessment districts which establish a Community Facilities District (CFD) under the Mello~Roos Act within the MCAS-Tustin project boundaries and which is based on a request from two members of the legislative body or which utilizes a boundary). land owner petition within the proposed CFD Other reasonable methods of accommodating new school students generated from .development within the MCAS, Tustin project including the use of temporary classrooms, certificates of participation, general obligation bonds, or state funding of school facilities shall also be supported. 2. District's Obligations A. District/shaI1 not challenge, comment on, or oppose, nor shall it fund or in any way assist any other person or entity to challenge, comment on, or oppose, to or before any local, state, or federal agency, or file or maintain any actions or proceedings to set aside, enjoin, challenge, appeal, or otherwise pursue any legal, equitable, or administrative remedies regarding the approval or implementation of any prop.osals, applications, approvals or permits (including any related environmental documentation or creation of Redevelopment Project Areas) relating to MCAS-Tustin, or regarding any proposed, approved, or existirig uses 10/2/96 4 in MCAS-Tustin which projects or uses are consistent with the land use plan approved by the LRA or City of Tustin. B. In the event that District makes any written comments, or engages in any written communications, with any local, state, or federal agency (including the City of Irvine) regarding the approval or implementation of any future development proposals, applications, approvals or permits (including any related environmental documentation) relating to MCAS-Tustin, or any proposed, approved, or existing uses in MCAS-Tustin, regardless of whether any such projects or uses are consistent or inconsistent with the land use plan approved by the LRA or City of Tustin, District shall immediately provide complete copies of such written comments or communications to the City and LRA. C. The District agrees that the site location and configuration of the two, ten (10) acre elementary school sites and one, forty (40). acre high school site shall be consistent with the LRA's identified concept approval but the size of the transfer is approximated only and actual metes and bounds shall be determined by the Department of Defense or other Federal agency prior to transfer in consultation with the LRA. D. Prior to transfer of the property by the Federal government and prior to any interim or permanent reuse of requested facilities or sites, the District agrees to enter into an agreement with and acceptable t° the LRA and the City of Tustin. The purpose of the agreement is to: 1) identify the planning goals of the agency receiving property and the City or LRA for the site; 2) identify the scope and schedule for short range improvements and long range development plans for the property; 3) establish a process for meaningful consultation on development and operational issues of mutual concern; 4) identify capital infrastructure improvements, roadway and existing utility and new utility right of way and easement dedications (as needed) and environmental impact report mitigation that will be required of the 10/2/96 5 Agency receiving property, 5) identify necessary procedures to implement the agreement, and 6) the District shall also affirm its commitment to return any property not used for the slated purpose directly to the LRA, in the case of property transferred as an Economic Development Conveyance (EDC). E. The District agrees that no direct vehicular access to the proposed elementary school site at the northwest portion of the MCAS, Tustin site along Redhill Avenue will be authorized. F. The proposed schools shall be fully implemented by the District by the later of either: 1) 8 years from transfer of the property to the LRA, if an EDC is approved, or to the District if conveyed to them directly by the U.S. Dep.artrnent of Education or other federal agency; or 2) when building permits are issued for 80% of the new units being proposed in the Reuse Plan within District boundaries, unless a shorter period is mandated by the federal sponsoring agency. If within 12 months of any transfer of property, actual development of a school is not proceeding, the District shall agree to enter into an agreement with the LRA, if requested, to permit the accommodation of interim public uses on the site prior to school development. The District understands that the underlying land use designation of the Reuse Plan would allow an alternative land rise to occur without an amendment 'to the Reuse/Specific Plan should the District not move forward with their Plans 'to utilize the property within an agreed upon time frame. G. The District agrees not to establish a Mello-Roos CFD on properties within the School District boundaries located within the MCAS-Tustin project which utilizes a written request from two members of the legislative bodY or a land owner petition process. The District also agrees the only petition process they would utilize in establishment o~' a CFD would be a petition of 10% of the registered voters residing within the proposed CFD District, 10/2/96 6 provided that the School District also agrees that any registered voter petition for establishment of a CFD that would affect the MCAS-Tustin Project would not be acted on unless there was a minimum of100 registered voters within the boundaries of the Base to be included within the proposed CFD for each of the 90 days Preceding the close of any protest hearing, and until entitlements are approved for 50% of the units being proposed in the MCAS-Tustin Reuse Plan within School District boundaries. The District also agrees that for any established CFD, they will not impose a levy, impact fee, exaction, assessment or special tax which will result in the total special tax on individual properties exceeding one half of one percent (.5%) of assessed valuation. . Governing Law: Construction of Agreement This Agreement and the rights and obligations of the parties, shall be governed by and interpreted in accordance with the laws of the State of California and its Constitution. The 'provisions of this Agreement and the exhibit hereto shall be construed as a whole according to their common meaning and not strictly for or against any party and consistent with the provisions hereof, in order to achieve the objectives and purposes of the parties hereunder. The captiOns preceding the text of each section, and the table of contents, are included only for convenience of reference and shall be disregarded in the construction and interpretation of this Agreement. 4. Actions Challenging Agreement The parties hereto shall use their best efforts to defend themselves in any action brought by any other person or entity seeking to attack, annul, set aside, rescind, or otherwise invalidate this Agreement, or any term, provisions, covenant or condition hereof. 1 o/2/96 7 5. Severability If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable by judgment or court order, the remainder of this Agreement , shall remain in full force and effect, unless enforcement of this Agreement as so invalidated would be unreasonable or grossly inequitable under the circumstances or would frustrate the purposes of this Agreement. 6. Entire Agreement This Agreement and the exhibit attached hereto contains all the representations and the · entire agreement between the parties with respect to the subject matter hereof. Except as otherwise specified in this Agreement, and the exhibit hereto, any prior correspondence, memoranda, agreements, warranties, or representations are superseded in total by this Agreement and exhibits hereto. 7. Attorney's Fees . In the event of any dispute, claim, or litigation based upon, arising out of, or relating to, the breach, enforcement or' interpretation of any of the provisions of this Agreement, the prevailing party in such dispute, claim, or litigation shall be entitled to recover its attorneys' fees, costs and expenses, which are reasonably incurred, from the nonprevailing party. 8. Counterparts This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. 10/2/96 8 IN WITNESS WHEREOF the parties have executed this Agreement as of the date and year first above written. CITY OF TUSTIN, LOCAL REUSE AUTHORITY FOR MCAS, TUSTIN By: Mayor ATTEST: City Clerk APPROVED AS TO FORM: Lois E. Jeffrey City AttOrney TUSTIN UNIFIED SCHOOL DISTRICT ~/ ,,i President, Board of Education ./1'/ CAS:D O: kd~Vl CAS~tu sd .ag m 10/2/96 9