HomeMy WebLinkAbout02 Status Rpt Tustin Legacy
DATE:
TO:
FROM:
SUBJECT:
ITEM #2
Inter-Com
FEBRUARY 28, 2005
IN PLANNING COMMISSION
BETH A. BINSACK, DIRECTOR OF COMMUNITY DEVELOPMENT
STATUS REPORT FOR TUSTIN LEGACY ACTIVITIES
This report has been prepared in response to a request made by Commissioner Pontius at the February 14,
2005 Planning Commission meeting, requesting the status of various reuse activities at Tustin Legacy (the
former Marine Corps Air Station (MCAS) Tustin). The City Manager's Office has recently prepared a
February 1, 2005 informational memo titled Tustin Legacy Bulletin, which is provided for your
information as Attachment 1. Also, several additional informational items of interest are summarized
below:
1. SITE REMEDIA TION/NA VY PROPERTY CONVEYANCE
.
Site Remediation - The Department of Navy is continuing its required remediation activities
within the Navy-owned Carve-Out parcels at the former base (see Attachment 2). Under federal
law, the Navy may not deed transfer any property until the site is found to be suitable for transfer
by state and federal regulators (Cal EPA, US. EPA and Regional Water Quality Control Board).
A copy of the Navy's most recent status report for the remaining contaminated sites at Tustin
Legacy is provided as Attachment 3.
.
Navy Property Conveyance - As part of the Economic Development Conveyance Agreement
between the City and Navy, the Navy agreed to complete remediation and convey the Carve-Out
parcels by the dates identified in the Legend on Attachment 4. Although some delays have been
encountered, the Navy is striving to meet these deadlines.
2. PUBLIC PROJECTS (See Attachment 5)
.
Valencia/Armstrong Project - The City of Tustin has awarded the contract to begin
construction of Valencia Avenue and Armstrong Avenue roadways and public utilities to support
first phase development at Tustin Legacy, including the educational village, Village of Hope and
Tustin Square development projects. Project completion is expected in approximately one year.
.
Tustin Ranch Road - The City of Tustin has approved the extension of Tustin Ranch Road
from Walnut Avenue to the extension of Valencia Avenue within Tustin Legacy. Construction
of the project is expected to begin within the next 3-5 years.
.
City of Tustin Community Park - The Department of Navy has conveyed to the City of Tustin
a Lease in Furtherance of Conveyance (LIFOC) for the 24-acre Community Park. Until site
remediation is completed by the Navy, reuse of the site is restricted.
Tustin Planning Commission
Status of Tustin Legacy Activities
February 28, 2005
Page 2
.
Village of Hope - When completed, the project will provide up to 192 homeless persons and
families with transitional housing, job training and counseling opportunities. At the present time,
the Village of Hope anticipates completion of the project to coincide with the completion of the
City's Valencia/Armstrong Avenue roadway project.
.
Rancho Santiago Community College District Law Enforcement Educational Campus -
The RSCCD has nearly achieved State Architect approval for its plans to develop a law
enforcement training and educational facility on a IS-acre parcel near the northwesterly comer of
the future intersection of Warner Avenue and Armstrong Avenue. Completion of the project is
expected to coincide with the completion of the City's Valencia/Armstrong project. RSCCD
staff and consultants have proactively and cooperatively worked with City staff to ensure that the
project's design is compatible with surrounding educational uses and in keeping with the overall
vision established for Tustin Legacy in the MCAS Tustin Specific Plan.
.
South Orange County Community College District - Approximately 68 acres of property has
been conveyed to the SOCCCD. The SOCCCD is nearly ready to begin construction on the
Advanced Technology and Education Park (A TEP) project located near the northeasterly comer
of Valencia Avenue and Red Hill Avenue with completion anticipated by the fall of 2005.
SOCCCD staff and consultants have also proactively and cooperatively worked with City staff to
ensure that the project's design is compatible with surrounding educational uses and in keeping
with the overall vision established for Tustin Legacy in the MCAS Tustin Specific Plan.
.
County of Orange Urban Regional Park, Abused Children's Shelter and Sheriff's Training
- The County of Orange has recently completed a Request for Expressions of InterestJRequest
for Proposal (REI/RFP) solicitation for the Blimp Hangar 28 Complex and Urban Regional Park
site. At the present time, the County is currently considering two proposals; 1) a proposal to
convert Hangar 28 and the Urban Regional Park into a historical museum/theme park; and, 2) a
private developer interest in converting the site into a sports-related regional retail center. In
addition, the Department of Navy is in the process of conveying a four-acre parcel to the County
of Orange for use in developing a 60-person Abused Children's Shelter to relieve overcrowding
at Orangewood. The County of Orange's lO-acre Sheriffs Training facility cannot be conveyed
until completion of Navy remediation efforts at that site.
.
City of Tustin Blimp Hangar 29 - The City of Tustin has recently released its REI/RFP
solicitation for the Blimp Hangar 29 Complex within a IS-acre site. The site is currently zoned
to potentially permit a wide range of possible reuse options to a prospective developer, including
residential, commercial and light industrial reuse. Expressions of Interest are due to the City by
not later than March 17, 2005. The screening and selection process associated with the City's
solicitation is expected to take until November of 2005 to complete.
.
TUSDIIUSD - The Navy has conveyed a lO-acre school site to the Tustin Unified School
District near Red Hill A venue and also conveyed a 20-acre school site to the Irvine Unified
School District near Harvard A venue. TUSD and IUSD are each pursuing State Architect
approval for school development of their respective sites. Two additional school sites (a 40-acre
Tustin Planning Commission
Status of Tustin Legacy Activities
February 28, 2005
Page 3
high school and a lO-acre elementary school) will be conveyed to the TUSD by the City of
Tustin.
.
City of Irvine Neighborhood Park - The Navy has conveyed an 8-acre park site within Irvine
to the City of Irvine adj acent to Harvard Avenue.
3. DEVELOPER PROJECTS
.
John Laing - Construction of the Tustin Field I (376 units) and Tustin Field II (189 units) sites
are fully under construction with model homes now open and sales underway. Project
completion is expected within the next 12 months.
.
Tustin Legacy Community Partners - The partnership of Centex/Shea (the Master Developer)
is working closely with City staff to prepare a Master Development Plan and Business Plan for
the 800+ acre site. The Plan currently envisions 170 acres of private and public open space
including an additional 45 acre community park and lineal park system which will traverse the
entire Tustin Legacy project site.
.
Vestar - Planning entitlements for Vestar's The District at Tustin Legacy have been granted for
development on the site of over one million square feet of retail space, including "big box" retail
development, restaurants and a 13-screen theater. Conveyance of the site is anticipated to occur
in the coming weeks. Construction of the project is expected to take approximately one year.
.
Moffett Meadows Partners - Lennar/Lyon's planning entitlements for Tustin Square (1,077
units) and Tustin Grove (465 units) were approved by the Tustin City Council on February 22,
2005. Lennar has also received approval from the Cities of Tustin and Irvine to process a
boundary adjustment before LAFCO to bring a 21.5 acre portion of the Tustin Grove project into
the City of Tustin from the City of Irvine.
Staff will be available at the February 28, 2005 Planning Commission meeting to answer any questions
you might have regarding this item.
CD D\dana \memo Imcass tatus. doc
Attachment 1
Tustin Lelaci Bulletin
February 1, 2005
Issue No.5
IntrodDcdon
The following is an update on recent Tustin Legacy activities through January 31, 2005. Should you have
any questions regarding specific topics covered in the bulletin, please do not hesitate to contact either City
Manager Bill Huston or Assistant City Manager Chris Shingleton at (714) 573-3107.
Accomplishments To Dlte
Since the City entered into an agreement with the Navy for conveyance of former MCAS, Tustin in May
2002, much has been accomplished. The following are highlights of what has been achieved:
. Exclusive Agreements to Negotiate and subsequent Disposition and Development Agreements
(DDA's) were completed by the City for Parcels 33 and 34 with WL HaMES (John Laing Homes).
Pursuant to the DDA, 25.3 acres were conveyed for Tustin Field I (Parcel 33) and 36.84 acres for
Tustin Field II (Parcel 34) at a combined base purchase price of $62,000,680.
All planning entitlements have been granted on Tustin Field I which involves construction of 376 units,
of which 78 will be affordable to very low, low and moderate income households. Homes have been
completed and sales are underway with first move-ins having occurred in the fall of 2004.
All planning entitlements have been granted on Tustin Field II which involves construction of 189
single family units, of which 41 will be affordable to very low, low and moderate income households.
Demolition is completed, grading is underway and construction of model homes has begun.
. The City retired $60 million in revenue anticipation notes issued by the City's Tustin Public Financing
Authority to accelerate payments owed to the Santa Ana Unified School District under the May 2002
Settlement Agreement. Retirement of the notes occurred earlier than required as a result of the City's
expeditious and timely sale of two sites at Tustin Legacy to WL Homes (John Laing Homes).
. An Agreement was executed between the Salvation Army, WL Homes and the City concerning federal
homeless obligations under the Reuse Plan and Homeless Assistance Agreements. The Agreement
provided for acquisition and conveyance to the Salvation Army of 16 residential units in Buena Park
and six residential units in Tustin Field I. Escrow closed on the Buena Park property, and the first
escrow on Tustin Field units will close in fall of 2004.
. A 15-acre site was conveyed to Rancho Santiago Community College District (RSCCD). RSCCD has
submitted plans to construct a law enforcement training facility.
. A Conveyance Agreement was executed with South Orange County Community College District
(SaCCCD). Under the terms of the Conveyance Agreement, 37.66 acres were conveyed to
SaCCCD and 30.71 acres were leased to SaCCCD. Title to the leased property will be conveyed to
SaCCCD when the Navy completes environmental remediation.
Plans have been submitted by SaCCCD for the initial phase of its Advanced Technology Education
Park at the corner of Valencia and Red Hill. Construction is expected to begin within 30 days.
-1-
. A Lease In Furtherance of Conveyance (LiFOC) was entered into between the City and the Navy for a
24-acre park.
The City has retained a consultant to prepare a master plan for development of the site. Initial
community workshops have been held. Work on the master plan for the park is progressing.
. An Exclusive Agreement to Negotiate and DDA was executed between the City and Vestar/Kimco,
loP. for Parcels 10, 11, and 12 located at the northwest corner of Jamboree Road and Barranca
Parkway. The agreement provides for the phased acquisition of approximately 87 net acres of land
for $33,414,161 and a contribution toward Tustin Legacy backbone infrastructure totaling
$36,330,000.
All planning entitlements have been granted for development on the site of over one million square
feet of retail space. The project, to be named THE DISTRICT A T TUSTIN LEGACY, will be a lifestyle
and power retail center containing both big box and lifestyle uses such as restaurants, specialty retail
and a 13-screen theater.
The first escrow is expected to close on a portion of the site by late February.
. The City, after an extensive Request of Qualification process, entered into an Exclusive Agreement to
Negotiate with Tustin Legacy Community Partners, LLC (a joint venture of Centex Homes, Shea
Properties and Shea Homes) for the development of approximately 800+ acres at Tustin Legacy.
Progress on a refined Master Development Plan will now set the stage for business plan negotiations
which are expected to be completed in September 2005 with execution of a Disposition and
Development Agreement.
. The City Council adopted Community Facilities District goals and policies for Tustin Legacy. The
policies set the parameters for use of debt financing for infrastructure at Tustin Legacy.
. In the summer of 2004, the City Council authorized creation of a Community Facilities District for the
John Laing Homes projects. $9.7 million dollars in bonds were issued in December 2004 to finance
construction of Tustin Legacy Backbone infrastructure and to off-set provision of municipal services to
these projects.
. The City completed an analysis of an Irvine Ranch Water District (IRWD) Plan of Work for water and
sewer improvements at Tustin Legacy. Tustin subsequently coordinated with IRWD in their formation
of improvement district for the purpose of financing water and sewer facilities at Tustin Legacy..
. The City has completed final design of Phase I Tustin Legacy infrastructure improvements for
construction of streets and utilities for Valencia from Red Hill to the West Connector, the West
Connector, Landsdowne, Severyns, and Armstrong from Valencia south to Barranca Parkway. The
City has obtained Navy approval of the construction plans. The bid award for this proposed $30
million project is expected on February 7,2005.
. Orange County Rescue Mission's Village of Hope is under construction.
. Building demolition has been completed on Lennar Company parcels (Parcels 23, 24 and 35).
Entitlements for these residential projects are going forward to the Tustin Planning Commission in
February. Development will include a total of 1545 dwelling units of which 282 units will be affordable
to households of very low, low and moderate income.
Mlsler Developer PllDIIIg lId NegodldoD Process
The collaborative planning process between the Master Developer, Tustin Legacy Community Partners
(TLCP) and City continues to progress. Per the Exclusive Agreement to Negotiate (ENA), Legacy
Partners is completing Phase II and III of tasks defined in the ENA.
-2-
Phase II
Refinement of the Master Development Plan and Preparation of Infrastructure Plans. This task required
the Developer to:
.
Revise the Preliminary Master Development Plan (Preliminary Land Use, Circulation and Open
Space Framework Plans) to incorporate input from the City Council received on February 17,
2004, subsequent input and additional technical information;
Prepare a development phasing concept;
Complete a detailed infrastructure plan including drainage, utilities and public services required to
support proposed development;
Prepare a site remediation analysis and program and conceptual grading plan;
Prepare construction cost estimates;
Define technical studies to be undertaken; and
Define environmental issues to be resolved and any associated cost estimates.
.
.
.
.
.
.
During this phase, an extensive amount of analysis and review of options resulted in modifications to the
open space/recreational concept plans for the 800+ acre footprint. TLCP has pursued modifications to the
street systems and relationships of neighborhoods and districts as they relate to the open space plan.
The City Council held a November 3, 2004 workshop to review the modifications and provide direction to
City staff and TLCP. The refined Master Development Plan prepared by TLCO proposes to replace the
golf course originally envisoned in the Tustin Legacy project and replace it with approximately 170 acres of
private and public open space including an additional 45 acre community park and lineal park system
which will traverse the entire Tustin Legacy project.
Preparation of Preliminary Business Plan. This task involves preparation of a preliminary business plan
that describes the financial and organizational characteristics of the project in detail sufficient to support
negotiations of a Term Sheet and a subsequent DDA. The Preliminary Business Plan to be submitted to
City staff for review will include the following components:
.
An organizational plan that describes the proposed structure of the Developer's organization,
including staffing levels, use of outside consultants, and other relevant organizational
components;
An operational plan that defines the scope of operations for on-going activities such as
property/asset management, that are a part of the project implementation and execution;
A marketing program describing the specific marketing programs to be used;
A phasing and financing plan that indicates how the project will be developed and financed,
including phasing of infrastructure and development, specific sources of equity and debt capital,
and use of public financing mechanisms such as Mello Roos Community Facilities Districts;
A feasibility analyses that provides a project proforma to illustrate project's feasibility, investment
requirements, and returns, including a static and build-out analysis and cash flow analysis.
A business offer and any proposed transaction structure for the site, and the terms of such offer.
A project schedule that identifies critical business, entitlement, construction, sales and other
relevant milestones from the initiation of pre-development through project completion.
A additional narrative as necessary to overview and explain how the project will commence,
function, achieve success, manage risk, and raise capital.
.
.
.
.
.
.
.
It is anticipated that TLCP will submit Phase II deliverables in February sometime. Preliminary
documents will be reviewed by City staff and continue to be refined as more information is developed and
business terms are defined.
-3-
Phase III
Preparation of a Master Development Plan Packaae. This task involves TLCP and the City undertaking
steps necessary to negotiate a Term Sheet that outlines the principal business terms, performance
requirements and completion dates.
Phase IV
Neaotiate Term Sheet and Prepare DDA. This task involves negotiation of the essential business terms.
Using the parameters contained in the Term Sheet, a DDA will be negotiated.
Phase V
Secure Development Entitlements and Conveyance. TLCP will require entitlements to implement its
obligations set forth in the DDA.
/
-4-
Attachment 2
Base Map Le tlJ
gend
N Roads
Parcel Boundaries
Marine Corps Air Station Tustin - Operable Units, Major AOCs, and MTBE Plume - as of 1/12/05
NOTE,
AERIAl PHOTO DATE 1994
N Carveout Areas
N Former Base Boundary
Environmental Restoration Legend
Surface Groundwater Designation Specific Sites
Plumes
0
-
11\1
-
D
D
OU-1A
OU-1B
OU-3
OU-4A
- D OU-4B
.
- MTBE
Plume
- Arsenic
III AOe
- UST 268
~ . IRP-16 IS PART OF C0-5
IRP-13S
IRP-3. IRP-12
JRP-1
JRP-5N. IRP-5S(b).
JRP-8.
IRP-11 AREAA.
IRP-16.
MMS-04 AREAS A & e
IRP-6. IRP-5S(a).
IRP-11. IRP-13W.
MMS-04 AREA B
UST Site 222
UST 222
ST -86. ST-88. MAE-O3
0
1000 Feet
Attachment 3
January 12, 2005
MCAS TUSTIN ENVIRONMENTAL
PROGRAM STATUS
O"erable Unit 1A (Site 13South - TCP plume)
Parcels affected: CO-5 and PS
Time Critical Removal Action - pump-and-treat system installed January 2002
Final ROD submitted October 2004; agency signatures occurred In
November; Navy signed on December 23, 2004
Soil removal to commence next week; approximately a 1 month effort
Treatment system currently in design; system to be installed by January 2006
OPS scheduled in July 2007
O"erable Unit 1 B (Sites 3 and 12 - TCE plumes)
Parcels affected: CO-5 and CO-6
Proposed Plan and Public Meeting held May 2002
Final ROD submitted October 2004; agency signatures occurred in
November; Navy signed on December 23, 2004
Soli removal scheduled for summer 2005
. Delay resulting from historic building requirements
Treatment system currently in design; system to be installed by January 2006
OPS scheduled July 2007 -
O"erable Unit 4 (Sites 5N/S, 6, 8, 11, 13West and 16)
Parcels affected: various parcels
Additional groundwater sampling at six locations in 2003
Final Tech Memo issued in June 2004
Agency concurrence received in August 2004 -
a OU-4A ROD ("no further action" sites):
Site 5N, IRP-5S(b), IRP-B, IRP-11 (Area A), IRP-16, MMS-04 (Areas A
and C) .
Final ROD issued in November 2004; agency signatures occurred
in December; Navy signed on January 3, 2005
a OU-4B ROD:
Draft Feasibility Study to be issued March 2005
Proposed Plan scheduled in December 2005
Final ROD scheduled in September 2006
~ Arsenic AOC Removal Action:
Parcel affected: CO-4
Removal action to address soil removal at Buildings 190 and 251
a Removal started August 2004; completion scheduled in January
a Final Closure Report in July 2005
Page 2
MCAS TUSTIN ENVIRONMENTAL
PROGRAM STATUS
MTBE Plume (UST Site 222)
Parcels affected: CO-5 and pac
Petroleum Corrective Action Plan implemented in July 2001
Additional soil excavation in December-March 2004
Navy proposed cleanup goal in January 2005
Navy also proposed additional soil excavation in January 2005
FOST Summa
FaST #1 si ned Au ust 29, 2001
FaST #2 signed September 28, 2001
FaST #3 signed April 22, 2002
Parcels 3,21,38,39 and ortions of 40
Parcels 4-8, 10-12, 14,25,26,30-33,37;
42, and ortions of 40 and 41
Parcels 23, 29, 34, 35 and 36, and
ortions of 1,16,17,24,27,28,40 and 41
Portions of 24 PS clean areas in CO-5
cas 8 and 11
CO-1 0 and ortion of CO-5
cas 3 and 7 and ortion of CO-5
COs 1 thru 4
cas 5 thru 11
Acronvms
Parcels AST Aboveground Storage FOSL Finding of Suitability to
Tank Lease
CO Carve Out area AOC Area of Concern OMP Operations and Maintenance
Plan
EDC Economic Development BCT BRAC Cleanup Team OPS Operating Property and
Conveyance Parcel (Navv, EPA, Cal EPA) Successfullv
pac Public Benefit EEICA Engineering Evaluation! PCAP Petroleum Corrective Aqtion
Convevance Parcel Cost Analysis I Plan
PS Public Sale Parcel NFA No Further Action RCRA Resource Conservation and
Recoverv Act
FS Feasibility Study ROD Record of Decision
FOST Finding of Suitability to UST Underground Storage Tank
Transfer
Attachment 4
--..u_-
/
~I
! ~ I -
I ~ I 11 j 1
~~I~iiii
~Ii;¡¡ii
~ @~ 0111
@
:r1N3h V
~
~!I
~~¡
~~
oß
~ !
I ~
iii
a ~
ü
~ ~
~ !
(I)
C
E
:nl
..,;
..:..
tit
Attachment 5
2
~ ,
. \
~ ClWNAGE "-..- r_.~.._,~.._,
= WNJERAVE '-'-'-'..'- ""'"ITIE". 1._.1
'-'-'-'-'-'-'-'-'-'-'-'-'-@-åÃèiÅÃ1ÎÒÑ'-- '" !i
,...'-'-'- " FACLIT1ES ~'" . @ I;
! ~ NOW LOOP "" ¿fì
I ~ i' f
" @ ~ @.:
1
@ .!
@"""ETAVE, Þ.' ..m ;
~ i
~.. DRAINAGE f
2.. FACILITIES ,
~ . ~
\
)
,~~~; ')
",",," .
.~.¿." I
WNGERAY>
LAND@WNCRD
~
i
;<
§
...
@
Chapter 2 . Plan Description
Preferred Conveyance Strategy
AJ
--.J
-
-
-
--.J
III
--.J
:.=J
=.:.J
Porcel Numbe<s
Fedelal AgencvlDOD Uses (1 )
Educa1ion Public Conveyance
Pori< Public Convevance
HeatlhlHuman 5efvices Conveyance
HighWaY PubJic Corwevance
Homeless Accomodotion Conveyance
Potential Economic Development Conveo;once
MCAS Tus1in Bourdary
Tustin I irvine Boundory
11 Transfer to lRA !!'en lease to AAT'tf Reserve preferred.
GENERAl NOTES:
@
-see Table 2-3 for a~ema1lve transfer mechanISmS.
.
-Sewer. eJec~k:al. telep/1are. gas. water ,,"Ifly sy¡tems not ShOwn an
this Figure but are assumed to be Health 8< HlrnOI1 8eMces. direct
sale or an EDC ""nsfe!.
@
I
:"..,.~"~?~-,.....,-,.....<",,. -.. -".-
I
I
I
@
!I
.'
""'".,' -:¡
I.
:!ø
,I
I'
,!
II
II
il
~~i @ @ @ .
¿ ~i . @ H"""'NAGE
EliC""'T""" 0 :~' <!)---,. ..... ..1 ¡FACUTIES
BARRANeAP""^,, "'~"~';;~I~;:-""~~è~"~"'-"'-"'~;~~-'~"-'-~~ ~_._'_.'-"~.~~~-"g'-
" 1 .. ~
~ [)tWNo\GE g ~ CIRCULATION :!!
" FACILITIES ~ ~ ""'LinES ~
t ~ z ~
" ~ ~
@
@
@
@ '"
cfi'"
<!", I
~&'
-Far PersanaJ Property see sect"" 2.3.8.
r'-'-'-,-,-,-
. .
I I
. .
! . !
I I
. .
I .
. .
~ _0._...".
"'44*
""O~oohoc~_IGI,,"OIO_""""""'CO<"""
'M 00"", """""" 1<>C0"," """ ~ngl~' be a"","" """
~"..ed °' - 01 ~I ""'""'" oeedeo IN ..., ,eooec'"
""""",-"","<,,,,,
~
_To Scale
æTHE
PlANNING
CENTER
...a....
MCH T1"ti. Sp,,'ifì.. PI",'¡R£M Pia.
CìlJ _fTmtÌ11
Fì}(lm2-3