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Home My WebLink AboutPOWERPOINT PRESENTATION - ENA WITH OLIVERMCMILLAN TUSTIN LEGACY, INC. (ITEM #14)OliverMcMillan Exclusive Negotiating Agreement Tustin Legacy Community Core Exclusive Negotiating Agreement (ENA) • Purpose • Draft Disposition and Development Agreement (DDA) • Negotiation Period • Not to exceed 3 years • Progress measured by Milestones • Expense Cap • City expenses capped • Developer expenses capped • Process • Preparation of a viable concept plan and business plan z ENA — Overview of Process Concept Plan Business Plan Tustin Legacy - Community Core • Access to the Community Core • Roads completed 1) Warner, 2) Armstrong, 3) Tustin Ranch Road • Major utilities, wet and dry, installed in major roads • Hangar - Conditions Assessment and Reuse Study • Study started June 2014 nearing completion • Next Step -> determining reuse alternatives: 1) interim, 2) short, 3) long term • Determine adjacent land uses and product types • Preparing an Implementable Plan — Long Process • Appropriate mix of land uses and development products • Phasing of infrastructure and development • Sources and uses of financial resources 4 Existing Site Challenges • Ground Leases with Navy (LIFOC) • Nearly 50% of site in ground leases - 60 acres of 123 acres • Shape of leased areas not conducive to parcelization for development • 2 years (est.) for conversion of lease parcels to City -owned fee parcels • Mixed -Use Urban Core — Prepare Plan • Programming — entertainment, retail, office, residential, public spaces • Determining Product Character — density, height, mass and scale • Hangar — phasing, budget and responsibilities for rehab, maintenance and operation • Infrastructure Deficiencies — Prepare Plan • North side site — no backbone access or utilities • Interior of site — no streets or utilities 0 OM SITE PREPARED DATE: 10/07/2015 PREPARED BY: ® HUNSAKER & ASSOCIATES SCALE: 1"=350 R V 1 N E I N C. PLANNING ENGINEERING SURVEYING Three Hug- • —, U 93610 • PH: (949) 5031010 • FX: (949) 5030)59 PI 0)Tr11 - A-- C p — OAiF_ O.f_ J], 90 75 IO. 301 - FII F. \ „g\('A P -[—c \F 5 ",--\ ol SYTF FTIJ.Ni 1, Characteristics of Community Core Developer • Successful place -making • Large-scale development • Public/private partnership experience • Visionary leadership with principals actively participating with the City • Strong equity partner • Wide-ranging relationships with institutional lenders • Ability to attract national tenants and users • Experience with historic structures • Aclear interest for integrating the hangar into a larger development • Experience with reuse of military bases • Understanding the southern California market 9 Shared Costs for Concept Plan ($500k each) City ($1.0M) Non -Master Plan Developer ($1.OM) Non -Master Plan 10 Preliminary Concept Plan Shared Expenses for Design Consultants • City/Developer selects Urban Design Consulting Team • Developer directs design team with consent from City • 50/50 City and Developer share expenses for design consultants • Not to exceed $500,000 each, City and Developer ($1.0m) • Majority of expenses incurred in the first 12 to 18 months 11 City Expenses Non -Concept Plan • Not to exceed $I.OM; most activities are on-going costs and studies spread over 3 years • City overhead including staff costs (on-going) • Hangar rehabilitation studies (on-going) • Prelim engineering studies City -owned roads and public spaces (on-going) • Legal counsel • Financial advisors and Appraiser 12 Developer Expenses Non -Concept Plan • Developer's overhead including staff costs • Costs and expenses related to ENA • Developer's consultants • Design and engineering associated with product development • legal counsel • financial advisors • arranging financing • submitting applications for development • due diligence • Marketing costs 13 Ability to Terminate ENA prior to 3rd Year • End of 2nd year • Both parties must reach agreement on Concept Plan/Business Plan •End of 3rd year • Draft DDA must be presented to the City Council for consideration • Expenditures Capped by both Parties • $1.5m (Shared and Non -Shared) • Limit on Damages for Breach • SZso,000 14