HomeMy WebLinkAboutRDA STAT PROMENADE 10-02-89REDEVELOPMENT AGENCY
NO. 4
10-2-89
ATE: OCTOBER 2, 1989 ��j Inter � Com
TO: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR
FROM: CHRISTINE SHINGLETON, DIRECTOR COMMUNITY DEVELOPMENT
SUBJECT: STATUS REPORT ON TUSTIN PROMENADE PROJECT
RECOMMENDATION
It is recommended that the Agency rescind its' previous approval of a Memorandum of
Understanding on the Tustin Promenade Project.
BACKGROUND
Councilman Prescott, at a regular meeting on September 18th, asked for a staff report
on the current status of the Tustin Promenade Project. The Redevelopment Agency
previously entered into a Memorandum of Understanding (MOU) with CMS Development
Company on June 5, 1989 for development on a 3.39 acre site at Newport Avenue and the
I-5 .freeway of a 10, 240 square foot retail center, 3,760 square feet Carl's Jr.
retail operation and a 105 room Marriott Fairfield Inn.
Based on more recent discussions with a representative of CMS Development, it is
staff's understanding that Marriott is no longer interested in the project site and
the developer now views a hotel as a front end loser which they no longer wish to
pursue. The developer, therefore, requested that the project be reduced in size to
include only the Carl's Jr. and retail center along Newport Avenue and also suggested
renegotiating the MOU with the Agency. Since the developer is not prepared to
complete their anticipated obligations as outlined in the MOU, staff have suspended
any work on preparation of a Development Disposition Agreement (DDA) . Since
previous Agency commitments made in the MOU were in response to the developer's
representation that resources were available to develop the entire site consistent
with Agency objectives, staff do not believe at this time that it would be in the
Agency's best interest to renegotiate and reduce the developer's obligations and
would recommend that the Agency's previous approval of the MOU be rescinded.
As the Agency is aware, the subject property is zoned PC (Planned Community) . Pri or
to any city authorization to commence construction of any project on any portion of
the subject 3.9 acre site, the developer will still have to prepare a Master
development plan, and standards for development subject to approval of a Use Permit
and Design Review. This would at least give the City zoning discretionary authority
of any future uses and development proposed for the site.
Christine A. ShiWeton,
Director of Community Development
CAS:kbc