HomeMy WebLinkAbout10 CONVEY UTIL SYST'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
AUTHORIZATION FOR CONVEYANCE OF EXISTING UTILITY SYSTEMS ON
MCAS TUSTIN REUSE PLAN DISPOSAL PARCELS 23 AND 24
SUMMARY
City Council authorization is requested to permit the conveyance of existing utility
systems to Tustin Vistas, LLC on property identified as the MCAS Tustin Reuse Plan
Disposal Parcels 23 and 24.
RECOMMENDATION
Authorize the City Manager or designee to execute a Bill of Sale between the City of
Tustin and Tustin Villas Partners, LLC ("Developer") for existing utility systems located
on portions of the Tustin Vistas site (MCAS Tustin Reuse Plan Disposal Parcels 23 and
24 owned by Developer) and all related documents subject to approval of said
documents and any required liability agreement(s) as may be determined necessary by
the City Manager, City Attorney and City special legal counsel; upon satisfaction of all
contractual conditions and obligations of Developer under any necessary document, to
transfer the utility systems to Developer.
FISCAL IMPACT
It has been determined based on coordination with private utility providers that the
existing utility systems on the Tustin Vistas site are of little value in the redevelopment
of the site. The utilities would require substantial capital investment to comply with
construction standards of most utility providers and/or State of California safety
standards, and will become fragmented and unusable based on the MCAS Tustin
Specific Plan.
BACKGROUND AND DISCUSSION
In May 2002 the Navy approved an Economic Development Conveyance of property at
MCAS Tustin and agreed to convey a large portion of the former MCAS Tustin to the
City Council Report
Tustin Legacy Reuse Plan Disposal Parcels 23 and 24
August 18, 2003
Page 2
City (Navy Conveyance Agreement). A total of 977 acres was conveyed to the City by
Federal Quitclaim Deed on May 13, 2002 with approximately 176 acres of property
leased to the City to be subsequently conveyed once it is determine suitable for
transfer. In conjunction with this conveyance, the Navy also conveyed to the City all
existing utility systems on property conveyed to the City in an "as is where is" condition
by Bill of Sale.
Since the Navy's conveyance, Tustin Villas Partners LLC (a partnership of Lennar and
William Lyon Homes, hereinafter Developer) was the successful bidder on the Navy's
public bid sale for MCAS Tustin Reuse Plan Disposal Parcels 23 and 24. The
Developer has since closed escrow and owns a significant portion of the site and has
leased from the Navy smaller portions of the site not yet suitable for conveyance. The
Developer is now proceeding with demolition and deconstruction activities which
necessitate removal of existing utilities on the site that they own that are not usable in
their reuse of the subject site.
Provided that the Developer agrees to not alter, modify, replace or relocate any part of
the utility systems owned by the City without coordination with the City and its written
consent of demolition plans, it is recommended that City-owned existing utility systems
on portions of the site owned by Developer be transferred to the Developer provided
that any alterations of the system do not interfere with existing utility service at Tustin
Legacy needed by the City, the Department of the Navy and other tenants.
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