HomeMy WebLinkAboutCC 4 LTR OF UNDERSTNG 10-21-91CONSENT CALENDAR NO. 4
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10-21-91
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GATE:
OCTOBER 21, 1991 �•� `�
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: SECOND AMENDMENT TO LETTER OF UNDERSTANDING CONCERNING THE
COMMUNITY PARR FOR THE TUSTIN RANCH COMMUNITY
RECOMMENDATION
It is recommended that the City Council authorize the City Manager
to execute a modification to the March 11, 1989 Letter of
Understanding with the Irvine Company.
BACKGROUND
The City of Tustin and the Irvine Company executed a letter of
understanding dated March 11, 1989 regarding the relocation of a
community park from Sector 11 to Sector 7 of the East Tustin
Specific Plan to expand the possible future high school in Sector
11 to include 40 acres.
As part of the letter agreement, the Irvine Company originally
agreed to provide a 2 acre private park in conjunction with the
future subdivision of Lots 18 and 19 of the Phase III Map (Tract
12870). The Irvine Company subsequently requested and the City
Council approved on April 3, 1991, a modification to the original
letter of understanding to permit the Company to relocate the 2
acre private park obligation to be provided in conjunction with the
subdivision of Lot 13 instead of Lots 18 and 19. The first
sequence of item number 6 of page 3 of the original letter of
understanding was revised to read as follows:
"A 2 acre private park (the "Private Park") will be created in
conjunction with the future subdivision of Lot 13 of the Phase
III Map, and improved at Company's sole cost and expense, to
replace the neighborhood park that was formerly to be located
on Lot 16 of the Phase III Map."
Recently staff began review of a pending residential subdivision on
Lot 13. Development of the private park was not an East Tustin
Specific Plan nor Quimby Act required dedication for the Irvine
Company but rather a concession to the City for relocating the
Community Park site to Sector 7. In review of the proposed
- development, Tustin staff and the company acknowledged the site
constraints imposed on Lot 13 and began to question the need for
City Council Report
Second Amendment to
Letter of Understanding
October 21, 1991
Page 2
the private park which would only serve Lot 13 particularly since
Lot 13 was across the street from a 20 acre community park site.
Given significant fiscal issues associated with future parks, the
Company is agreeable to replacing the requirement that any multiple
family subdivision of Lot 13 contain a private park with the
requirement for a payment equal to $2,000 per residential unit
created in any further subdivision of Lot 13. With preliminary
plans indicating a proposal for 236 units on lot 13, the Company's
in lieu payment would represent approximately $472,000 which can be
placed in the park development fund for East Tustin.
If the proposed approach is acceptable to the Council, the Council
should authorize the City Manager to execute an amendment to the
original agreement in the format as attached.
Christine A. Shing on
Assistant City Manager
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FOOTHILL COMMUNITY BUILDERS
October 7, 1991
Mr. William Huston
City Manager
CITY OF TUSTIN
15222 Del Amo
Tustin, CA 92680
RE: MODIFICATION OF MARCH 11, 1988, AND MARCH 8, 1989,
LETTERS OF UNDERSTANDING
Dear Mr. Huston:
The City of Tustin ("Tustin") and The Irvine Company ("Company")
previously entered into a letter of understanding dated March 11,
1988, concerning the relocation of a 16 acre community park from
Tract 12763 to Tract 12870, which in turn involved the replacement
of a 2 acre neighborhood park. The neighborhood park was
originally to be replaced in Lots 18 and 19 of Tract 12870 through
the creation of a 2 acre private park in those lots. On April 3,
1991, the Tustin City Council approved an amendment dated March 8
1989, to the letter of understanding which allowed the 2 acre park
to be created in lot 13 of Tract 12870.
After discussions between Tustin and Company about this park in
conjunction with a pending multiple family residential subdivision
of Lot 13, the City of Tustin and Company have determined that the
March ll, 1988, and March 8, 1989, letters of understanding should
be amended (1) to eliminate the requirement that any further
subdivision of Lot 13 contain a private park, and (2) instead to
substitute the requirement that the obligation to provide the
private park shall be satisfied in full by a payment equal to
$2,000.00 per multiple family residential unit permitted in the
further subdivision of Lot 13. The purpose of this letter is to
confirm our understanding in this regard, and particularly to
confirm that the first sentence of item number 6 on page 3 of the
March 11, 1988, letter of understanding is again revised to now
read as follows:
116. A 2 acre private park ( the "private park" ) shall be created
in conjunction with any future single family subdivision of
Lot 13 of the Phase III map, and improved at Company's sole
cost and expense, to replace the neighborhood park that was
formerly to be located on lot 16 on the Phase III map. In the
event, a multiple family project is proposed on lot 13, the
obligation to provide the 2 acre private park shall be
550 Newport Center Drive, P.O. Box f. Newport Beach, California 92658-8904 (714) 720-2380
Division of The Irvine Companv
Mr. William Huston
City of Tustin
October 7, 1991
Page 2
satisfied in full by an in -lieu payment equal to $2,000 per
multiple family residential unit created in the further
subdivision of Lot 13 subject to the following conditions:
a. No credit will be given a builder for provision of any
on-site recreational facilities in conjunction with a
multiple -family development in order to offset or
discount the required payment of $2,000 per unit.
b. The City shall collect the $2,000 per unit payment at
time building permits are issued by phase for the
project. In the event that permits for all units have
not been issued prior to May 1, 1995, then the remaining
balance of the in lieu payment equal to $2,000 per
multiple family residential unit shall immediately become
due and payable on May 1, 1995. Failure to make said
remaining payment by May 1, 1995 will be considered late
and the City shall affix an annualized penalty fee of 15%
computed on a daily basis on the unpaid balance.
C. City will commit to spend funds collected under this
agreement for recreation facilities in Tustin Ranch but
City makes no commitment as to timing of said
expenditures or specific facilities to be funded.
d. It is mutually agreed that the in -lieu payment of $2,000
per multiple -family residential unit does not constitute
any precedent for any purpose other than this agreement
as to the amount of any future local park fees,
establishment of land value or other related issues.'$
If this proposed change comports with Tustin's understanding of our
agreement and is acceptable to Tustin, please so indicate by
signing the enclosed copy of this letter and return it to me.
Very truly yours, Acknowledged and Accepted
C. Bradley Olson
Vice President
The Irvine Company
William A. Huston
City Manager
City of Tustin
ATE:
TO:
FROM:
SUBJECT:
RECOMMENDATION
APRIL 3, 1989
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
OLD BUSINESS
NO. 4
4-3-89
Inter - Com
FILE Cji'y
AMENDMENT TO LETTER OF UNDERSTANDING CONCERNING THE COMMUNITY
PARK FOR THE TUSTIN RANCH COMMUNITY
It is recommended that the City Council authorize the City Manager to execute a
modification to the March 11, 1989 letter of Agreement with the Irvine Company.
BACKGROUND
As the Council is aware, the City of Tustin and the Irvine Company executed a
letter of understanding dated March 11, 1989 regarding the relocation of a
community park from Sector 11 to Sector 7 of the East Tustin Specific Plan to
expand the possible future high school in Sector 11 to include 40 acres. A copy
of the subject letter is attached for reference.
As part of the attached letter agreement, the Irvine Company agreed to provide a
2 acre private park in conjunction with the future subdivision of Lots 18 and
and 19 of the Phase III Map (Tract 12870). The Irvine Company is now requesting
a modification to the original letter of understanding to permit them to
relocate the 2 acre private park obligation to be provided in conjunction with
the subdivision of Lot 13 instead of Lots 18 and 19. The first sentence -of item
number 6 of page 3 of the letter of understanding would be revised to'read as
follows:
"A 2 acre private park (the "Private Park") will be created in conjunction
with the future subdivision 'of Lot 13 of the Phase III Map, and improved at
Company's sole cost and expense, to replace the neighborhood park that was
formerly to be located on Lot 16 on the Phase III Map."
If the proposed change is acceptable to the Council, the Council should
authorize the City Manager to execute an amendment to the original agreement in
the format as attached.
Z�
ristine A. Shingleto
Director of Community Vevel opment
CAS:ts
Attachment: Letter dated March 11, 1989
S�
THE IRVINE COMPANY
March 8, 1989
Mr. William Huston
City Manager
CITY OF TUSTIN
300 Centermial Way
Tustin, CA 92680
RE: MODIFTCATICBJ TO Nei 11, 1988 LUPI' OF UNDERSTANDING
Dear Mr. Huston:
The City of Tustin and The Irvine Ccupany signed a letter of
understanding last year co the relocation of the 16 acre
coom mitt' park frcm Tract 12763 to Tract 12870. A copy of that
letter is attached for your convenient reference.
After discussions with City staff regarding development of Tract
12870, it has beome necessary to amend cne sentence of the letter of
The purpose of this letter is to confirm that the first
sentence of -item ca=mber 6 on page 3 of the letter is revised to read as
follows:
A 2 acre private park (the "private park") will be
created in conjunction with the further subdivision
of Lot 13 of the Phase III Map, and in�roved at
C apany' s sole cost and expense, to replace the
neighborhood park that was formerly to be located
on Lot 16 of the Phase III Map.
If the proposed change to the letter of understanding is acceptable
to the City, please so indicate by signing the enclosed copy of this
letter and it to me.
very fly
C. Bradley Olson
Vice President
William A. Huston
City Manager
City of Tustin
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-- IRVINE COMMUNRY t i -m 2 - '1988
DEVELOPMeW COMPANY
IRVINE COMMUNIrN
DEVELOPMENT COMPA
March 11, 1988
City Council
City of Tustin
300 Centennial Way
Tustin, California 92680
RE: Letter of Understanding Concerning the Community Park for the Tustin
Ranch Community
Dear Counci lmembers :
Consistent with the General and Specific Plans., and zoning, for the
Tustin Ranch Community, an approximately 16 acre community park and adjacent
approximately 34 acre high school site were identified in Tract No. 12763.
At the time Tract No. 12763 was approved, it was the hope, if not
expectation, of the City of Tustin ("City"), The Irvine Company ("Company"),
and the Tustin Unified School District ("District") that a joint use
agreement could be successfully negotiated allowing the high school site and
community park to be used in a complimentary manner. Despite best
expectations, it does not now appear that that hope can be achieved. The
District has determined. that it requires unilateral control over at least 40
acres in order to ensure a successful high school program, while the City has
determined that it would need to retain design and use control over at least
the 16 acres of the community park identified in Tract No: 12763 in order to
ensure the efficient operation of that park facility. These determinations
have proved to be irreconcilable, despite attempts to reach a reconciliation.
In order to achieve both City and School district objectives, some
alternative solution needs to be identified that will separately provide the
City with a community park facility adequate to achieve its program needs and
provide the District with the opportunity of acquiring 40 acres for a high
school, should a new high school be needed to serve future students from the
Tustin Ranch Community and adjoining areas.
To that end, City staff, subject to the concurrence of the City Council,
has identified a potential solution to this problem which has been
tentatively agreed upon by the Company. That solution would be to relocate
.the community park from Lot no. 7 of Tract No. 12763 (the "Existing Park
Site") into Lots 15, 16 and 17 of Tentative Tract Map. No. 12870 generally as
shown on the attached Exhibit "A", and to expand the possible future high
school site in Tract No. 12763 to include 40 acres, with appropriate rezoning
and reconfiguration of the impacted lots.
Specifically, this would involve the following elements and
understandings:
1. The City will expedite the processing of the Final Map for Tract
No. 12870 (the "Phase III Map"), with the goals of having the Phase III
Map considered by the Planning Commission on April 25, 1988, and by the
City Council on May 2, 1988, provided that there has been compliance with
all applicable conditions of approval contained in the resolutions
approving Tentative Tract Map 12870. The City shall.either not accept
dedication of Lot 16 of the Phase III Map for neighborhood park purposes
or otherwise take such steps as are necessary to return title thereto to
Company as provided in -paragraphs 3 and 6 below.
2. Immediately following the City Council's approval of the Phase
III Map, Company shall file -an application to resubdivide Lots 15, 16 and
17 to create a future elementary school site of no less than 10 acres, and
a public community park of approximately, but not less than, 20 acres (the
"New Park Site"), generally as shown on the attached Exhibit "A", which
Company shall at its sole cost and expense cause to be rough graded,
fenced, etc., as was required by conditions of Tentative Tract Map 12763
for the 16 acre park site. The City will expeditiously process that
application subject to compliance with all.applicable City Codes related
to subdivision processing. .
3. The City shall expeditiously institute. and process appropriate
proceedings necessary in order to return title to the Existing Park Site
to the Company in exchange for the dedication of the New Park Site, and to
cancel the June 30, 1987, Site Reservation Agreement, all pursuant to such
procedures as may be required in accordance with applicable statutes as
soon following the City Council's decision on the resubdivision of Lots
15, 16 and 17 of the Phase III Map as is reasonably possible.
4. The Company shall file an application to res-ubdivide Lots 7 and
8 of Tract 12763, following the transfer of title to the Existing Park
Site to the Company, into a 40 acre site, which would be the site of any
future new high school to serve the Tustin Ranch Community (the "Expanded
High School Site"), and an approximately 10 acre site for medium high
density residential use, generally as depicted on the attached Exhibit
"6". The City will expeditiously process that application subject to
compliance,with.all applicable City Codes related to subdivision
processing.
5. The City and Company shall cooperate in the initiation of
amendments. to its General Plan, Specific Plan, and zoning ordinances,
including the development agreement for the Tustin Ranch Community, as may
be required to implement this solution.
I
6. A 2 acre private park (the "Private Park") will be created in
conjunction with the further subdivision of Lots 18 and 19 of the Phase III
Map, and improved at Company's sole cost and expense, to replace the
neighborhood ark -that was .formerly to be located on Lot 16 of the Phase I.IJ
Ma he combi nation of New , e an a ri vate Par wi s 1 s y
uimby Act requirements equal to 16 acres of community park and 4 acres of
neighborhood park, and there will be no further requirements for parks or
facilities in Lots 13, 18 and 19 of the Phase III Mao_
7. The City will expeditiously resume processing final builder
subdivision maps in Tract No. 12763 for action by the Planning Commission on
March 14, 1988, subject to each builder complying with all applicable
conditions of approval contained in resolutions approving each tentative
builder map.
The Company believes that this solution can be achieved successfully
for all interested parties.
The Company recognizes that the City cannot commit in advance of the
necessary public hearings to approve any map, adopt or amend any ordinance,
or convey or acquire any property. However, the Company can commit to the
City that it will use its best efforts to accomplish the foregoing
components of this solution,' subject to the concurrence of the City Council
that the foregoing components should be pursued in the best interests of the
public, together with the City Council's commitment to consider in good
faith the' implementation of this solution i'n full cooperation with the
Company.
The Company respectfully requests that this solution be favorably
considered by the City Council, that its City Manager be directed to
acknowledge that acceptance by executing this letter of understanding in the
space provided and returning a copy to the undersigned.
Sincerely, /
C. Bradley Olson
President
Irvine Community Development Company
Acknowledged and Accepted
Z. ,
'41
William A. Huston
City Manager
City of Tustin
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