HomeMy WebLinkAbout16 UTIL CONVEY MCAS 10-06-03AGENDA REPORT
Agenda Item
Reviewed:
City Manager
Finance Director
MEETING DATE:
OCTOBER 6, 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 35, 36 AND 37
SUMMARY
City Council authorization is requested to permit the conveyance of existing utility
systems to Marble Mountain Partners, LLC on property identified as the MCAS Tustin
Reuse Plan Disposal Parcels 35, 36 and 37.
RECOMMENDATION
Authorize the City Manager or designee to execute a Bill of Sale between the City of
Tustin and Marble Mountain Partners, LLC ("Developer") for existing utility systems
located on portions of the Moffet Meadows site (MCAS Tustin Reuse Plan Disposal
Parcels 35, 36 and 37 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 Assistant 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 Moffet Meadows 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 (Navy Conveyance Agreement). A total of 977 acres was conveyed to the City by
City Council Report
Tustin Legacy Reuse Plan Disposal Parcels 35, 36 and 37
October 6, 2003
Page 2
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, Marble Mountain 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 35, 36 and 37.
(Parcels 36 and 37 are within the City of Irvine.) The Developer has since closed
escrow on the site. The Developer wishes to shortly proceed 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.
It is recommended that City-owned existing utility systems on portions of the site owned
by Developer be transferred to the Developer subject to the following:
Any alternations 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
and is required for fire flow and safety by the Orange County Fire Authority.
Developer shall agree to not alter, modify, replace or relocate any part of the
utility systems owned by the City without coordination with the City and Orange
County Fire Authority and its written consent of demolition plans;
Developer shall commit in writing to meet all homeless obligations in the form of
a cash in-lieu payment or financial equivalent number of new units for said
parcels in the location originally identified in the Reuse Plan (Reuse Plan Parcels
35, 36 and 37) or in a location off of the Tustin Legacy site, and subject to
approval of the City of Tustin;
Developer shall consent in writing to provide to the City of Tustin for review and
comment all plans for new construction and any entitlements being requested in
the City of Irvine on Parcels 36 and 37. The City will respond to Developer with
comments within 20 days after its receipt of plans, which Developer shall agree
to give reasonable consideration.
ChriS, tine A. Sh'i'ngl~ton /'/
Assistant City Manager (,.//