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HomeMy WebLinkAboutOB 2 COMM RAIL PROJ 10-19-93AGENDA OLD BUSINESS NO. 2 10-19-93 DATE: OCTOBER 19, 1993 TO: WILLIAM A. HUSTON, CITY MANAGER FROM- COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: STATUS OF COMMUTER RAIL PROJECT RECOMMENDATION Receive and File. BACKGROUND At their October 4, 1993 meeting the City Council requested staff to provide an update on the status of the Commuter Rail project. In July, Tustin and Irvine City Councils met jointly to discuss four (4) potential commuter rail station sites, two of which were located in Tustin (Site A and Site B). At that meeting there was considerable controversy from Irvine residents regarding Sites B, C and D which are located in close proximity to Irvine residential neighborhoods. It was however, mutually agreed by both cities that the most desirable location was Site A, the Jamboree Plaza development, located on the southwest corner of Edinger Avenue and Jamboree Road in the City of Tustin. Tustin City Council directed staff to investigate possible mechanisms by which the site might be acquired or developed for a future rail station. Previously, Tustin staff had met with Kemper Real Estate, owner of the Jamboree Plaza site, on several occasions to ascertain their interest in a commuter rail station on their property. It was recommended that Kemper develop the rail station with some possible financial assistance from the City or donate the land to the City for the rail station. Discussion with Kemper ceased late last year when the company informed the City at that time that there were significant .financing constraints on the Jamboree Plaza project which would preclude sale of a site for a commuter rail station without significant financial subsidy from the City to Kemper to offset construction, operation, maintenance and lost lease income. DISCUSSION Since our meeting with Irvine, City of Tustin staff have had a number of conversations with Kemper who now seem more amenable to discussion. In fact, a proposal from Kemper for the sale of an approximate three acre site was received. Since receipt of the offer City staff have met with a representative of Kemper Real Estate. There are a number of outstanding issues that were raised City Council Report Status of Commuter Rail Project October 19,1993 Page 2 at this most recent meeting which still need to be examined. A summary of the issues is as follows: 1. There is concern about the adequacy of the site size. Based on parking and platform needs, an area in excess of the initially considered three acres may be necessary. 2. Kemper wished to explore the possibility of their construction of a Pedestrian/Vehicular underpass of the railroad in conjunction with planning for the commuter rail site in order to link the Jamboree Plaza site with their industrial development north of the railroad tracks. 3. 'Whether acquisition of the site would be by purchase or lease. 4. Standard Purchase Terms. Initial terms presented by Kemper were for a three acre site; upon further review it may be determined more area is necessary; purchase price proposed by Kemper at $20 a square foot, which in staffs opinion is for greater than the current value of the land. While a land appraisal would be necessary to determine true land value prior to actual purchase, staff will be gathering preliminary market information for continuing our discussion with Kemper. At the conclusion of the meeting, it was agreed that both Kemper and City staff would follow through on the following items. . Kemper will submit to the Community Development Department a complete site plan of Jamboree Plaza and their site to the north. The site plan will indicate the existing development, proposed California Highway Patrol facility and their desired location of an underpass to link the north and south developments. Kemper will also identify possible constraints to underpass construction, i.e. underground utilities. · Fluor-Daniel, Orange County Transportation District (OCTA) consultant has agreed to prepare a preliminary station site plan and layout based on the site plan submitted by Kemper. As part of OCTA's service to potential commuter rail station jurisdictions the preliminary site plan would be prepared at no cost and City Council Report Status of Commuter Rail Project October 19,1993 Page 3 will allow the City to determine an appropriate rail station site size. City staff will contact OCTA to obtain written verification that the $1.9 million-dollar Proposition 116 monies for station development can be used solely for site acquisition on the Tustin site. In efforts to obtain additional funding for the Rail project the City of Tustin has applied for three grants that can be used for commuter rail (TCI, Transportation Capital Improvement at $230,000; TEA, Transportation Enhancement Activities at $100,000, and AB 2766, Vehicle Registration funds at $100,000). Staff will continue to explore additional funding sources, continue our purchase discussions with Kemper and keep the City Council informed. At this time, we do not believe it will be necessary to hold an additional meeting with the Irvine City Council on the issue of the commuter rail station. Community Development ~hristine Sh~ Assistant City Manager RW: br: comrai [ .pcr