HomeMy WebLinkAboutRDA MOU T. PROMENADE 08-07-89J~ ~ rmmmm ~ I ~1~-~ '-~ -~"'~. ~ REDEVELOPMENT AGENCY
.- ..- ~ NO. 5
TO:
FROM:
SUBJECT:
WILLIAM HUSTON, EXECUTIVE DIRECTOR
CHRIS SHINGLETON, DIRECTOR OF COI~IMUNITY DEVELOPMENT
MEMORANDUM OF UNDERSTANDING TUSTIN PROMENADE PROJECT
Recommendation
Pleasure of the Agency.
B 8,1C klg round_
At the City Council meeting on July 17th, the City Council requested that this item
be agendized. Please find attached the previous Agency report and a copy of the
memorandum on this project approved by the Agency at their meeting on June 19, 1989.
I've also attached a chronology of related events on the project site which led up to
the Agency's approval action.
Ch~ristilne X. Shingleton~/
Director of Comnu.nity D~velopment
CAS:per *-
Att ac hme nt s
CHRONOLOGY OF EVENTS
NEWPORT/X-5 FREEWAY ST. TE
Date
_
7-20-89
Oescr,i pti on
Redevelopment Agency approves Memorandum of Understanding for Tustin
Promenade Project with CMS Development (vote to approve: Kennedy,
Edgar, Hoesterey; to oppose: Kelly and Prescott.)
9-13-88
Property owners on subject site informed by letter that Agency has
entered into an Exclusive Agreement with CMS Development.
9-6-88
8-25-88
The Agency unanimously approves an Exclusive Agreement to Negotiate
wi th CMS Development. The Agreement authorized negotiation on
possible considerations to be given to the Developer by the Agency
including any financial assistance which would be permitted by law to
make development of the site economically feasible (vote to approve:
5-0.)
Property owners on subject site informed by letter that Agency will
consider awarding an Exclusive Agreement to CMS Development on
September 6, 1988.
7-1-88
Redevelopment Agency staff receives a request from Cody Small for an
Exclusive Agreement to Negotiate on subject site.
6-9-88
CMS Development entered into a purchase agreement for the Texaco
property on the subject property on June 9, 1988. Prior to the Agency
awarding an Exclusive Offer to Negotiate with CMS on September 6,
1988, CMS had negotiated offers to purchase with three additional
properties of the eight ownership parcels comprising the subject
site. Final excrow on the Texaco property closed in January, 1989.
With the above information, CMS and their· proposed corporate
development entity was considered holding an interest in the subject
property with owner participation rights pursuant to California
Redevelopment Law.
Chronology of Events
Tusti n Promenade
Page two
Date
3-6-88
Early, 1987
12-8-87 to
12-21-87
10-1-87
8-17-87
8-3-87
7-27-87
6-29-87
4-20-87
Oescri pti on
Informal proposal from Arnold Pacific reviewed and additional
i nformati on requested. Arnold Paci fi c subsequently wi thd raws
proposals.
Agency members discuss wi th staff potential for development or
acquisition of the site and with no negative responses or proposals
from property owners authorize staff to informally solicit preliminary
development proposals for the site.
Property owners on site invited to submit development proposals for
the site and interest in participation.
Proposal from Arnold Pacific received for site and Agency informed.
Prior to discussin§ the proposal, Agency staff recommended that
property owners first be contacted and offered an opportunity to
participate.
City Council approves Zone Change 87-2 (Ordinance 990) rezoning
subject property to Planned Community Commercial (Vote to approve
5-0.)
City Council holds public hearing on Zone Change 87-2 and General Plan
Amendment 87-1 and approves General Plan Amendment (Resolution No
87-87 vote to approve 5-0.)
Planning Commission holds public hearing on Zone change 87-2 and
General Plan Amendment 87-1 and recommends rezoning and redesignating
subject site to Planned Community Commercial.
Planning Commission holds a public workshop to discuss modifications
to General Plan and Zoning on subject site.
City Council adopts Moratorium on subject site pending rezoning (vote
to approve:
CAS:pef
TO:
FROM:
SUBJECT:
IdXLLIAlt A. HUSTON, EXECUTIVE DIRECTOR
COPII~UNXTY DEVELOPI~IENT DEPARTIIENT
#EHORANDUPI OF UNDERSTANDTNG TUSTTII PROIIEN~E PRO&ECT
RE~ENDATIO,,N,
It is recommended that a Memorandum of Understanding between CMS Development and
the Tusttn Redevelopment Agency be approved and the Chainnan and Executive
Director be authorized to execute the Memorandum.
BACKGROUND
The Tustln Community Redevelopment Agency at a regular meeting on September 6,
2988 approved an £xclustve Agreement to Negotiate with CHS Development for the
development of a stte~ located in the vicinity of Newport Avenue and the Santa
Aha ([-5) freeway. The property Is more specifically bounded by the [-5 freeway
on the north, NeNport Avenue on the east, Mttchell Avenue on the south and on
the west by a small frontage along "B" Street. The stte is located in the South
Central Redevelopment Project Area.
To assist CMS Development ("Developer") tn'~tte acquisition, to reduce potential
speculation and to facilitate their obtaining preliminary financing and
.pre-leasing commitments, CMS is requesting that the Redevelopment Agency revl.ew
and determine what level of Agency assistance on the project is acceptable and
approve a memorandum of understanding agreeing to terms to be utilized in
preparing a future Disposition and Development Agreement (DDA) for the proposed
project. Nhtle a memorandum of understanding is not a legally btndtng contract,
there are a number of advantages to l ts use..
The Developer would have more comfort in proceeding with purchase of
certain properties on. the site.
2~
The Developer could proceed with processing 'development plans for land use
approvals necessary on the project with the understanding that a DDA would
have to be approved prior to Issuance of any butldlng permits.
e
The Agency would have an opportunity to review and approve the general
development concept for the project and business terms that would be
anticipated in the DDA on the project before significant staff time and
attorney expenses were spent in completing the DDA.
The MOU would provlde a basts for negotiating a comprehensive DDA.
· Redevelopment Agency Report
Memorandum of Understanding
June 19, 1989
Page
Attached for the Agency's consideration is a draft Memorandum of Understanding
'for the prloject. A' discussion of the project and a summary' of terms of the
Agreement are as follows:
Description of Site - The site is currently improved with a mixture o-f
deteriorated improve-merits, including an abandoned gas station near the northeast
portion of the site, a series of multi-family residential units in the northwest
area and an Alta-Dena dairy facility located on Newport Avenue. The portion of
the block which will not be incorporated in the site includes the Sostn property
(Headache Doctor) at the corner of Mitchell and Newport Avenue, i~roved single
family residences along 'C' Street and a new multi-family residential
condominium project along 'B' Street. Exclusion of most of these uses from the
project site is consistent with the original Exclusive Agreement to Negotiate
with CMS and is not expected to be detrimental to the proposed project.
·
It has been generally believed that incremental development of individual
parcels without a comprehensive development plan for the site would render
certain .properties undevelopable for commercial uses., This is due to the
current lot configurations on the site which are irregular with minimum
vi si bi 1 i ty and access.
Scope and. Character of Developer - The,Developer proposes a comprehensive
development pro~ram foF the site-and has agreed to develop, or cause to be
developed on the site a 10,240 square fo01~ retail center, a 3,760 square foot
free-standing Carl's Jr. fast food retail operation and a minimum 105 room
Marriott Fairfield Inn. ·
The Fairfield Inn is a new product of the Marriott Corporation. With average
room rates of approximately $40.00 per night, the Fairfield Inn targets business
and pleasure travelers who are price conscious. Financial pro-forma information
for the project provided by the developer anticipates that the project will be
completed in three Phases, with Phases I and II devoted to retail uses.
The submitted proposal indicates that approximately 87,649 sq.ft, of the site in
Phase III will be utilized by the hotel. The Developer intends to rough grade
the hotel site and then sell it to Marriott.
The subject site will be designed as an integrated project with the placement of
structures along Newport Avenue allowing for "visual windows" and shared
access. The architect will havel to include elements of an Early California or
Medi tarranean style.
The actual development plan and architecture proposed for the project will
require zoning and site plan design review approval by the Planning Commission
and Agency.
Redevelopment AgencY Assistance_ - Prior to staff's consideration of any
community Development Department ·
·
Redevelopment Agency Report
I~emorandum of Understanding
June 19, 1989
Page three
financial assistance for the project, a substantial amount of financial
tn'formtton 'and data on the proposed project was requested from the Developer
tncludlng the develpper's financial pro-form and a 10 year cash flow analysts
for the project. The ftscal tmpact of the Ctty and Agency revenues that could
be expected from the project was also evaluated.
All flnanclal lnformtton for the project Including recommended flnanc~al terms
o. btatned In the attached memorandum have been revtewed and valJdated by the
Agency's financial real estate consultant, Alan Kottn wtth the ftrm of Kottn,
Regan and I~ouchly, ~[nc.
!n reviewing the Oeveloper's pro-form, the Ctty's consultant has agreed wtth
the developer In their request that the project's feasibility be based on an
average annual return on net operating tncome after debt service on equtty for
an lntttal ten year period of 12.5Z. Utilizing development costs and revenues
associated wtth the development, the Ctty's financial consultant belJeves that
approxtmtely $1,000,000 of Agency assistance ts warranted to assist the
Developer to offset development on land acqufsltton, stte preparation and
Improvement costs as authorized by California Community Redevelopment Law.
!t ts recommended that the Agency's level of financial assistance and
participation tn the project be distributed over 10 years with annual
contributions or payments to the Developer'l:o be based on actual net Increases
tn sales 'tax, transJent occupancy *tax aed .tax Increment revenue prOduced by the
project. Under these terms, any Agenc~ assistance for the project wtll be based
on performance and the "Developer" bets on themselves. Stnce the Agency's
assistance ts also for the beneftt of thts Developer, Agency's assistance
payments would be repaid in whole or part, as applicable, tf the retatl port~on
of the project ts sold, transferred or refinanced wtthtn the first 10 years
after completion of the project. !f there ts no sale, refinancing or transfer
of the site by the end of the loth year after project completion, the Agency
would be reimbursed tt's contribution based on the Increase tn the market value
of the fetal1 portton of the project.
Stnce the Developer revenue estimates for the project were tJed to two spectftc
operators, Carl's Jr. and l~arrtott, the Developer wtll be obligated to enter
tnto a 10 Year operatJng use covenant for these uses on the sJte and the Agency
would have no financial oblJgatton for assistance tf convenants are v~olated.
The pro-form submitted by the Developer estJmtes that the project will
generate approxtmtely $1,860,020 tn net City sales tax and transient occupancy
tax revenue and $1,000,400 in property tax Increment to the South Central
Project area for a total combined net tnc~ease tn City/Agency revenues over a
10 year perlod of $2,861,420. The recommended Agency assistance of $1,000,000
over a 10 year pertod would represent approxJmately 34:~ of estimated City/Agency
revenue projected for the project. Based on the projected level of revenue for
Com'munity Development Department
Redevelopment Agency Report
Hemorandum of Understanding
~lune 19, 1989
Page four
the project, the Agency's assistance for the project would be patd back tn
approximately 5 years. Thts ts consistent wtth the .Agency's prevtous policy of
destrtng a 5-7 year payback on all Agency assistance provtded on development
projects.
Christine A. 'Shtn rlel~n
Director of Community Development
CA ~: ts
A.ttachments
Community Development Department
ATTACHMENT "A"
Suem~ry of Pro-form Informtion
Relevant Measure~nts
Project Cost
Land $4,677,699
Bulldln~ $ 882,000
On/Off'- $ 618,461
:[ndlrects $ 243,440
Financing $ 353,362
Contingency $ -O-
Extended
Carry $ -O-
Sa le
Proceeds ( $2,103, 576_)
TOTAL $4,671,385
Ftnanctng
i
Loan $3,027,910
Equity $1,643,475
% Equtty
To Project
Cost 35.18%
l~-year A.v. erage Annual .Return on Cos_t
NO[
Pre-Debt
Servt ce
lO-Year Average Annu.a1
9
Return
on Equtty
NO!
Post-Debt
~rvt ce
6.50%
lO-Year Agency Required Partl'clpatton to Attaln
i2.5% Return'"on Equity Al(er Debt Ser~t~6'
~ ! I I i Illll --
$1,000,000
lO-Year Total..Ctt¥/A~ency Reve.nue_s
iii
Net Sales/Occupancy
Tax $1,860,020
Net
TOTAL
lO-Year
Property Tax $1,001,40_0
$2,861,420
N. et City/Agency Review After Agency
$1,875,881
Partt cl part
lO-Year Annual Return on A enc Parttct atlon
4.77%
Ftnal
6-8-89
PID~ORANDUH OF UNDERSTANDING
FOR THE
TUSTIN PRO~EllADE PRO,]ECT
..
Thts Memorandum of Understanding by ~nd between CMS Development Co. ("Developer")
and the Tusttn Community Redevelopment Agency ("Agency") sets forth In general
te~ms the fundamental principles whtch the parttes have agreed upon and wtll
provtde the .basts for negotiating a comprehensive Disposition and Development
Agreement (DOA). These fundamental principles are as follows:
Stte Descrtpttop
The stte contains approximately 3.39 acres located in the City of Tusttn
("City") and is generally bounded by Newport Avenue on the east, 'B' Street on
the west and the Santa Aha (I-5) Freeway on the north as shown on the "site
map" attached hereto as Exhibit B and incorporated heretn by this reference.
2.0 Development, of Stte
2.1 Developer shall develop, construct or cause to be constructed on the stte a
retail center of approximately 10,240 square feet, a' free-standing Carl's
fast food retatl operation of approximately 3,760 square feet and a Marrtott
Fairfield Inn to contatn a mtntmum of 105 rooms.
2.2 The project shall be developed in accordance with the following architectural
theme and treatments to be approved by the Agency.
The site shall be designed as an integrated project in which the buildings
will achieve architectural excelleng~ both individually as well as their
integration into the project as a who.l.e.
The architecture shall include elements of an Early California or
Mediterranean style. This style~ shall be evident in all elements of..design,
from all elevations of the structures down to smaller elements such as trash
enclosures. Particular attention will be paid to massing, scale, color and
materials. Materials shall include stucco, tile and brick. Roof treatment
shall combine pitched, mission tile roofs and flat roofs. The overall style
shall be compatible with and complimentary*to the recently completed Tustin
Plaza project to the north of the project site along Newport Avenue.
Improvements at Newport Boulevard at the Santa Aha (I-5) Freeway off-ramp
shall provide the visual interest commensurate to the importance of this
location as a major gateway to the site and to the City of Tustin. This area
shall contain a major design element or focal point.
Placement of structures along Newport Avenue shall allow for visual "windows"
into the site from Newport Avenue while providing active use at the street
level insofar as it is feasible. Structures in these locations shall whenever
possible be designed with storefront windows and entry doors facing the public
si dewa 1 k.
Hemorandum of Understanding*
Tustt n Promenade
Page ~o
tn general, the destgn of the stte shall encourage active participation by
pedestrians by providing suitable and attractive amenities throughout, the
site. Buildings shall invite pedestrian activity. Large planes of solld
walls shall be avoided and windows are encouraged at the pedestrian level.
Architectural features such as arcades or recessed storefronts shall be used
to encourage an Interaction be~een the activities of the building, and
adjacent, outdoor pedestrian activity. Colorful awntngs, creattve stgnage,
storefront encroachments and other design features which add human scale and
interest to the streetscape are encouraged where they are consistent wtth the
larger design theme of the project. ·
All on-stte vehicular and pedestrian routes across lot lines should be
reciprocal and should be coordinated with Agency.
2.3 The Developer shall submtt, process and obtatn all zontng, site plan and other
approvals required by the Ctty and Agency. The Agency shall take appropriate
actton to assist the Developer consistent with Agency objectives.
2.4 Developer agrees to assist Agency tn obtaining permission from current
property owner of Parcel 25 as shown on Exhtbit A to renovate Improvements on
the said Parcel 25 to be consistent wi th the architectural theme and
treatments described tn Sectton 2.2 above.
·
3.0 Ftnancl
II
3.]. Based on Agency's revtew of Develope~-'-s project pro-forma and 10 year cash
flow analysis for the project, Develop. qr will initially incur substantial land
acquisition and site preparation costs for the project which reduces the
project's feasibility. Agency is not desirous or in a financial position at
this time, given other project area priorities, to assume front end costs nor
administration for land acquisition, assemblage, site preparation and
relocation (an obligation where Agency acquires property). Agency, however,
does wish to financially assist Developer in causing the property to be
assembled and prepared and in improving the projects' financial feasibility
over time by reducing acquisition and preparation costs to the Developer as
authorized by California Community Redevelopment Law and the South Central
Redevelopment Plan. The Agency's level of financial assistance and
participation will be distributed over ].0 years with annual contributions to
be based on actual revenue produced by the project. Developer shall be
responsible for all up-front development costs required for development;
construction and installation of project on-site and off-site improvements,
including land acquisition whether reflected in Developer's pro-forma or not
(eg. the presence of no permit fees or off-site improvement costs and costs
for clean up of any hazardous wastes and contaminated soils on the site to
meet State and Federal law~ is an oversight but Developer will be responsible
for these items).
3.2 Agency shall make available assistance and participation in tl~e project up to
a maximum contribution of $].,000,000 unless otherwise noted to the Developer
to offset development costs as described in item 3.]. above subject to terms
outlined as follows:
t4emorandum of Understandt. ng.
Tustln Promenade
Page three
3.2.1 Agency shall make annual payments to Developer In amounts equal to those
shown tn Column ! on Exhtbtt A, attached hereto, provided however that
the annual payment shall be reduced In any year In whtch the combined net
~ncrease tn sales tax, transient occupancy tax or tax increment revenue
'co whtch the Agency and C~y are entitled and whtch ts generated by the
projec~ ts less than the projected combined estimate of revenue Shown on
Column !! tn the schedule. !n such case, the annual payment shall be
determined by multiplying the actual combined net sales tax, transient
occupancy tax and tax increment revenues generated by the project by the
maximum percentage of Agency contr~bu'cton to City/Agency net revenue
generated by the project as shown tn Column [!! of the payment schedule.
Any port, on of the remaining annual payment whtch has not become due to
the developer tn any one year by virtue of the annual payment formula
described here~n, wt11 be considered a shortfall which Developer can make
up or recover tn a future year over the course of the ].0 years t f the
or~gtnal projected and corresponding level of total net revenue that
resulted tn the shortfall ts real~zed. The total amount of recovery paid
to Developer ~n any one year shall be l~mtted to the extent that total
cumulative annual payments 'co date to Developer shall not exceed the-
cumulative net increase tn City and Agency revenues .and cumulative '
percent of cumulative Agency payments to actual cumulative net combined
revenues as sho~n tn Columns !V, V, and V! of the payment schedule.
!f tn any one year the Developer ts ahead of the cumulative estimate of
City/Agency revenues as shown t~..Exhtbtt B, the Agency w111 apply the
amount In excess to future years for purposes of determining the maxtmum
annua~ payment that the Deve~oper*sha]~ receive.
3.2.2 Agency shall make a1.1 payments within 60 days fol~owJng the c~ose of
Agency's ftsca~ year each June 30, begtnn~lng the first, June 30, following
the issuance of a certificate of comp~el:ton for the project.
3.2.3 Agency durtng the term of the 10 years descrJbed herein anticipates the
issuance of bonds for the South Centra~ Project Area. The prtncJpa]
amount of the bonds interest, cost of issuance and maxJmum annual debt
servtce on such bonds ts unknown at this t~me and may result in the
Agency hav~ng to p~edge Certain tax increment, amounts on the bonds whtch
could affect Agency' annua~ cash flow avaJ~able to meet, financial
obligations w~th~n the South Central Project Area and still make the
annual payments contemplated by this memorandum. Therefore, at the
discretion of the Agency the annual payment may be deferred. Should the
Agency not make an annual payment as described above, then the difference
between the actual payment due to the Developer and the payment amount
made by Agency may be carried over by the Agency into subsequent years.
!ncerest shall accrue on the unpatd' balance at a rate of 2?~ above the
prime rate established by the Bank of America N.T. and S.A. provided that
the rate of interest shall not exceed the interest rate legally
authorized to be paid by the Agency. Interest shall commence on any
Memorandum' of Understanding
Tustt n Promenade
Page four
deferred payment from the date sat d payment was due. .Any outstanding
Agency payments together with any outstanding accrued interest shall be
paid to the Oeveloper in full at the end of the ten years by the Agency.
3.2.4 If at the end of the 10th year after Issuance of a certificate of
completion for the project, the cumulative City/Agency net revenues from
the project exceeds the $2,861,420 projection of net projected revenues.
for the project, as shown In Column V. of Exhtbtt A, the Agency shall
make an additional assistance payment to Developer for performance. The
amount of payment shall be determined by subtracting the projected
cumulative City/Agency revenue tn the loth year from the actual
cumulative City/Agency revenue generated by the project and multiplying
that ftgure by .10.
3.2.5 The Oeveloper shall provtde to the Agency at the ttme of ftllng, a copy
of each quarterly sales tax return form ftled by or on behalf of all
businesses operating on the site from ttme to time pursuant to Revenue
and Taxation Code Section 6452 with the Board of Equalization of the
State of-California. This information will be utilized by the Agency for
purposes of the payment schedule outlined above.
3,.2.6 The reference to sales tax and transient occupancy tax for purposes of
computing the annual payment is solely for computational purposes. Sales
tax and/or transient occupancy tax revenues are not pledged. The
Agency's obligation to make annual payments shall be an obligation of the
Agency secured solely by and pay~!ble from tax increment revenues of the
Agency. The Agency's obligation to m~ke annual payments described herein
will not constitute a debt or"obligation of the City of Tustin and
neither the faith, credit nor taxing power of the City will be pledged to
the payment of contributions described herein.
·
3.3 The Developer shall require that a 10 year operating use covenant with Carl's
Jr. and Marriott Corporation shall be provided as a condition of lease of a
portion of the property to Carl's Jr. and as a condition of sale of any
portion of the property to Marriott Corporation. The covenant may authorize
an equivalent operator provided that Agency has a right to approve such
operator. The Agency shall have no liability or obligation for payments if
terms of the DDA are violated.
3.4 Agency will potentially incur substantial financial obligations under any
DDA (including without limitation expenses for annual payments to Developer
and various administrative, consultant and legal expenses) in order to make
development of the site financially feasible for Developer. The Agency's
anticipated expenditures shall in no way be construed to be a loan from the
Agency to the Developer. In consideration of Agency contributions of funds,
the Agency shall be reimbursed monies from the total net proceeds generated
Memorandum of Understanding
Tustl n Promenade
Page five
from a "sale", "transfer" or "refinancing" of that portion of the site owned
by. the Developer during the 10 year term described discussed, in this
memorandum pursuant to the following:
3.4.! The Agency shall be reimbursed the amount of payments made to Developer
by the Agency to the extent that the net sale or transfer proceeds exceed
certified costs of development incurred by Developer by 25%. The Agency
shall be entitled to a reimbursement equal to the total of all payments
made to developer prior to close of escrow.
3.4.2 The Agency shall be reimbursed the amount of payments made to the
Developer by the Agency to the extent that the net financing proceeds
exceed certified costs of development incurred by Developer by 25%. The
Agency shall be entitled to a reimbursement equal to the total of all
payments made to Developer prior to close of the escrow on the financing
loan. To the extent that Agency does not receive the entire amount of
payments made as of the date of a financing, the difference shall be
recovered at subsequent financings according to the same procedures as
set forth herein.
. 3.5 In the event there is no sale, refinancing or transfer of tha't portion of the
site owned by the Developer at the end. of the loth year after issuance of a
certificate of completion'for the project, the Agency shall be reimbursed the
amount of payments made to the Developer by the Agency to the extent that the
net increase in the market value of the development at the end of. the loth
year exceeds the certified costs of ~ve!opment incurred by Develope~ by
An independent fair market appraisal..of the portion of development owned by~
the Developer shall be made.
.
3.6 To determine the market value described in Section 3.5 of this memorandum, the
Agency shall select an independent appraiser and have an appraisal performed
at its sole cost. The appraiser shall determine fair market value based on
the income approach method of appraisal and in accordance with the California
Code of Civil Procedure. If the Developer disagrees with the Agency's
appraiser's estimate of fair market value, the Developer may retain at its own.
cost an appraiser who shall al so appraise the site in the same manner. Upon
completion of the second appraiser, the two appraisers shall attempt to
reconcile any differences in their appraisals. If such differences cannot be
reconciled, the fair market value shall be determined based upon averaging the
appraised values.
4.0 Dis osttton and I)evelo nt A reement (DDA) .
4.1 The DDA shall be prepared and negotiated within 90 days of the date of
approval of this MOU.
4.2 The DDA shall include typical enforcement clauses, including liquidated
damages, remedies in the event of breach, forfeiture of good faitt~ deposit,
termination and right of reverter.
Memorandum of Understanding
Tustln Promenade
Page si x
:Et Is understood that the foregoing principles constitute' guidelines for further
. negotiation and are not legally enforceable obligations at-thts time. The parttes
will negotiate in good faith to prepare a binding DDA.
In witness whereof, -the parties have executed this memorandum on the dates set
.forth below. The date of approval of this MOU shall be the date of execution by
the party signing last.
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
Date
Chat rman
Date
i
Executtve D1 rector
CMS' Development
Date
Date
Prest dent
othe~'Officer
Approved as to form by
Agency Counsel
James G. Rourke
Date
CAS:per' L-7
c
c
Ex#tbtt B
/
/
..... | ~ REDEVELOPMENT AGENCY
·., NO. 6
_
TO:
FROM:
SUBJECT:
WIL~A. HUSTON, CITY MANAGER
RECOMMENDATION:
Adopt Resolution No. RDA 89-19 appropriating the Redevelopment
Agency Budget of $3,440,689 for fiscal year 1989-90.
DISCUSSION:
The draft 1989-90 RDA Budget was presented to the City Council/
Board of Directors in late June. During the four budget
workshops the Agency Operating and Capital Improvement Budgets
were discussed ind detail. Any changes directed by the Council/
Agency during the workshops are reflected in the numbers
presented in Resolution No. RDA 89-19.
Director of Finance
RAN:ls
Attachment
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~.0
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RESOLDTION NO. RDA 89-19
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TUSTIN
CONNUNITY REDEVELOPNENT AGENCY, ADOPTING THE AGENCY
BUDGET AND APPROPRIATINC REVENUE OF THE ACENCY FOR
FI$C,~L ~ 1989-90.
~EREAS, in accordance with good fiscal policies the Executive
Director has prepared and submitted to the Board of Directors, a
proposed Annual Budget for the 1989-90 fiscal year, beginning July 1
1989; and '
WHEREAS, the Board of Directors, as the legislative body of the
Agency, has reviewed this proposed budget.
NOW, THEREFORE, the Board of Directors of the City of Tustin does
hereby resolve, determine, and order that the following sums of money
are hereby appropriated from the revenue of the Redevelopment Agency for
the purposes stated, during the 1989-90 fiscal year.
Operational Expenses
Capital Improvements
TOTAL APPROPRIATIONS 1989-90
$ 2,555,772
884~917
$ 3,440,689
PASSED AND ADOPTED at a regular meeting of the Redevelopment
Agency of the City of Tustin, held on the day of
1989. '
URSULA E. KENNEDY, MAYOR
ATTEST:
MARY E. WYNN, CITY CLERK