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Home My WebLink About04 SUPPLEMENTAL APPROPRIATION FROM FUND 189 FOR ENVIRONMENTAL DUE DILIGENCE WITHIN NEIGHBORHOOD G-PLANNING AREA 15-A OF TUSTIN LEGACY DocuSign Envelope ID: F05413575-41 FA-4146-B2A7-9301724375C2 Agenda Item 4 Reviewed: AGENDA REPORT City Manager m5W Finance Director �a MEETING DATE: OCTOBER 20, 2020 TO: MATTHEW S. WEST, CITY MANAGER FROM: ECONOMIC DEVELOPMENT DEPARTMENT SUBJECT: SUPPLEMENTAL APPROPRIATION FROM FUND 189 FOR ENVIRONMENTAL DUE DILIGENCE WITHIN NEIGHBORHOOD G-PLANNING AREA 15-A OF TUSTIN LEGACY SUMMARY Request for a supplemental appropriation of $155,000 from Fund 189 for environmental due diligence within Neighborhood G — Planning Area 15-A at Tustin Legacy. RECOMMENDATION It is recommended that the City Council appropriate $155,000 from Fund 189 to the Economic Development Department planning budget for environmental due diligence work. FISCAL IMPACT Staff is requesting this appropriation in order to commence environmental due diligence as a part of ongoing planning studies of Neighborhood G — Planning Area 15-A at Tustin Legacy. The supplemental appropriation is requested from the Land Proceeds Fund (Fund 189), which has sufficient budgetary reserves to fund the appropriation of $155,000. CORRELATION TO THE STRATEGIC PLAN This action correlates to the City's Strategic Plan for Economic and Neighborhood Development (Goal A). BACKGROUND Environmental due diligence work is a routine step of the development process at Tustin Legacy. DocuSign Envelope ID: F05413575-41 FA-4146-B2A7-9301724375C2 Agenda Report—Supplemental Appropriation October 20, 2020 Page 2 Prior to any grading, infrastructure installation and development that can occur, the City (acting as Executive Developer) must perform a variety of tasks to plan for the next areas of development at Tustin Legacy. Different neighborhoods at Tustin Legacy are in various stages of the planning and development process. The stages of the development process, which may overlap one another, can be generally broken down as follows: - Preliminary Planning: Review specific plan goals and constraints, adjacent land uses, desired land uses and amenities - Environmental Due Diligence: Perform a Phase I and Phase II site investigation assessment to understand baseline environmental characterization conditions, drive land uses and infrastructure design, and give confidence to development community - Circulation/Infrastructure Design: Design and perform preliminary cost analysis of major circulation and required utilities - Land Use Planning: Based on environmental due diligence and infrastructure design, plan for residential, commercial and park/open space land uses - Design Guidelines: Develop design guidelines and expectations for various land uses within particular Planning Areas - Market Testing: Test proposed land use plan, residential and non-residential development yield analysis and design standards with brokerage and development community - Financial Analysis: Analyze the cost of infrastructure installation, public amenities, proposed land sale proceeds and City service requirements - Backbone Infrastructure Installation: City responsible for installation of backbone infrastructure (roads, sidewalks, parks, landscaping, sewer, water, power) - Developer Solicitation: Solicit developers for the various land uses, recommend developers for land sales/leases to City Council - Negotiations: Negotiate Lease or Exclusive Negotiating Agreement (ENA) and Disposition and Development Agreement (DDA) with selected Developer(s) - Construction: Developers construct required project improvements, City provides oversight, monitors land use absorption. City constructs any local public infrastructure DocuSign Envelope ID: F05413575-41 FA-4146-B2A7-9301724375C2 Agenda Report—Supplemental Appropriation October 20, 2020 Page 3 DISCUSSION The City recently started the development process for Neighborhood G — Planning Area 15-A at Tustin Legacy. Some preliminary conceptual land use and circulation planning studies are advancing, and staff recommends performing environmental due diligence so as to understand the characteristics of the site to inform the design and planning phases. The City's environmental consultant, Geosyntec, is highly qualified and has deep knowledge of Tustin Legacy. Geosyntec has performed a wide variety of environmental analysis and sampling events at Tustin Legacy to date, most recently within Neighborhood D South. The City experience of performing its own environmental due diligence at Tustin Legacy creates a number of benefits as development progresses: - City has more up to date information on environmental and geological conditions - City knowledge of the environmental analysis of areas informs the planning and design of infrastructure and appropriate land uses - City has greater confidence in the absence or presence of hazardous materials - City has greater confidence in proposed land uses, disposition of particular parcels, and provides potential risk mitigation - Development community gains confidence from more recent City reports and analysis to move forward on parcel negotiations and purchase The City does not expect its own environmental due diligence studies to replace due diligence responsibilities performed by a prospective developer. The City strives to provide a broad characterization of a neighborhood to support its own planning and disposition efforts and provide more recent data to prospective developers. Once environmental due diligence is completed and further planning and design studies have progressed accordingly, staff would return to City Council to present updates of the preliminary plans. This supplemental appropriation from recently acquired settlement funds allows for environmental due diligence to progress concurrently with planning of Neighborhood G — Planning Area 15-A at Tustin Legacy. Christopher Koster Kenneth Piguee Director of Economic Development Senior Management Analyst DocuSign Envelope ID:F054B575-41FA-4146-B2A7-9301724375C2 Tustin Legacy Neighborhood G: Planning Area 15-A LEGEND Tustin City Limit - --- Specific Pian Boundary - - Mixed-Use Transit Mixed-use Urban a PA26=Yi Commercial PA 4-5- " -- -"-r PA 7 •• I — Commercial r Business J.. PA 1S-A Residential r_.—.,PA 1-A _ .. ,�„�_ � Park """' PA z PA 21 Tustin Legacy Park Overlay pD 1-C Transitional/Emergencydousing PA 1-i PAI-E / ' Education Village E fisting RAW. PA 1-D PA6 Proposed R.O.W. �PA 3 PA 1-NFA u Planning Area r PA 1-0 ¢ PA 15-B = A 1[li PA 21 ' SP •PA I-L A 1-1 i PA 15-C PA 1-F €: PA 7-G PA 8,13&14 PA 9=b2 P0.7619PA 22 -' T•'r ti _ . . F ....,.�.,.w.. A-1 r i .;sc•�