HomeMy WebLinkAbout09 T. LEGACY DEVELOP'S 08-18-03AGENDA REPORT
Agenda Item
Reviewed:
City Manager
Finance Director
MEETING DATE: AUGUST 18, 2003
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
REDEVELOPMENT AGENCY STAFF
SHORT-LISTING OF DEVELOPERS AS PART OF THE TUSTIN LEGACY
MASTER DEVELOPER SELECTION PROCESS
SUMMARY
City Council confirmation of a short list of developers to proceed to the interview stage in the
Tustin Legacy Master Developer selection process is requested, as recommended by the
Tustin Legacy Technical Evaluation Team.
RECOMMENDATION
It is recommended that the Tustin City Council confirm the recommendation of its Technical
Evaluation Team to short list the following development teams as qualified to proceed to the
Technical Evaluation Team Interview phase of the Master Developer Selection Process for
Tustin Legacy: Tustin Legacy Community Partners (a partnership of Centex Homes, Shea
Homes, Shea Properties and the Industrial Realty Group); Lennar MS Legacy (a partnership
of Lennar Corporation, Lennar Partners, and the Morgan Stanley Real Estate Fund); Forest
City; Tustin Field Partners, LLC (a partnership of Lowe Enterprises Real Estate Group and
WL Homes, LLC which does business as John Laing Homes); and Trammel Crow Company.
FISCAL IMPACT
There is no specific cost associated with the City Council's affirmation of a short list of
developers. Costs for the Master Developer solicitation process, interviews, and subsequent
selection and developer negotiations have been accommodated in MCAS Tustin Enterprise
budget. Any future City Council selected developer will also be reimbursing the City for all
planning and negotiations expenses during negotiations.
BACKGROUND
Agency staff in February 2003 solicited a Request for Qualifications (RFQ) for a highly
qualified Master Developer for over 700 acres of land at Tustin Legacy.
Notification of the RFQ process was mailed in to an extensive interest list of development
entities. Press releases were issued, a web site established, and special advertising
City Council Report
Tustin Legacy Master Developer Short-List
August 18, 2003
Page 2
placements were published in specialty real estate publications such as the California Real
Estate Journal and the Urban Land Institute magazine to advertise the release of the RFQ
package. Approximately 110 copies of the RFQ materials were requested and mailed out on
this opportunity and another 177 parties downloaded copies of the RFQ from the Tustin
Legacy web site. Nine responses to the RFQ were received by the May 1, 2003 submittal
deadline.
Agency staff conducted an initial screening of the 9 responses to the RFQ and eliminated one
response for failure to respond to or meet the minimum deposit criteria specifically called for in
the RFQ. The remaining 8 submittals were reviewed. An initial review and preliminary
evaluation of the submittals was conducted by a support team of key City and Agency staff
and management representatives as well as consultants retained by the City, including
Economic and Planning Systems, Inc. (EPS), Barnes & Company, Gilchrist & Rutter and the
Roma Design Group. Consistent with the process described in the RFQ, the information
gathered by the support team was presented to the Tustin Legacy Technical Evaluation Team
(TET) for their review and analysis in making a recommendation to the full City Council.
Members of the Technical Evaluation Team included Agency staff, principal representatives
from EPS & Barnes & Company (the Development Advisors for Tustin Legacy), legal
representatives from the City's special legal firm of Gilchrist & Rutter, and two representatives
of the City Council (Mayor Tracy VVorley and Councilmember Jeff Thomas).
The TET review process rated each developer based upon specific criteria described in the
RFQ with individual criterion making up a percentage of the maximum score as described
below:
· Development Entity (20 Percent);
· Development Team Experience (20 Percent);
· Financial Capacity (25 Percent);
· Approach to Development (15 Percent);
· Approach to business and Investment Structure (15 Percent), and;
· Proposed Timeline for Planning and Negotiations (5 Percent).
The TET members reviewed their consolidated evaluations, discussed the conclusions and
ratings, and defined a short-list of the most qualified developer team candidates that would be
recommended to the full City Council to proceed to the TET's next step which would be a
formal interview. The five developer teams that the TET recommends be short-listed to
proceed to the interview stage in the developer selection process are as follows (there is no
order of ranking importance at this stage in the process):
City Council Report
Tustin Legacy Master Developer Short-List
August 18, 2003
Page 3
· Tustin Legacy Partners ( a partnership of Centex Homes, Shea Homes, Shea
Properties, and the Industrial Realty Group)
· Lennar MS Legacy (a partnership of Lennar Corporation, Lennar Partners, and the
Morgan Stanley Real Estate Fund).
· Forest City
· Tustin Field Partners, LLC (a partnership of Lowe Enterprises Real Estate Group
and WL Homes, LLC which does business as John Laing Homes).
· Trammel Crow Company
These developers were selected as most qualified based upon the criteria identified above.
The differentiation between these teams and others were clearly the combination of financial
capacity, demonstrated experience in quality master development projects and their project
management track records, knowledge of the real estate market, understanding of the goals
for the site as defined in the MCAS Tustin Reuse Plan/ Specific Plan, and their realistic
assessment of the significant financial and time commitment the project will involve.
The approved short list of developers will be notified of their selection and advised as to the
date of future interviews as well as any interview questions they will be required to answer in
writing. Staff is currently working with its consultant team to finalize the interview process and
questions. It is anticipated that the interviews would be held in the next 3-4 weeks.
Agency staff will be available at the August 18 meeting to respond to any questions from the
City Council on the RFQ process.
Christine A. Shin
Assistant City Manager