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HomeMy WebLinkAbout09 RESOLUTION DECLARING ASSESSORS PARCEL NUMBERS EXEMPT FROM THE REVISED SURPLUS LAND ACT DocuSign Envelope ID:08CBB54E-B898-470B-BAF6-B8755C9F9BE7 Agenda Item 9 -�� Reviewed: DS AGENDA REPORT City Manager Finance Director N//AA MEETING DATE: JUNE 15, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: ECONOMIC DEVELOPMENT DEPARTMENT SUBJECT: RESOLUTION DECLARING ASSESSORS PARCEL NUMBERS 430-271-81 AND PORTIONS OF 430-271-78, 80, 82, 84, 92, 93, 430-371-41, 42, 43, 44, 45, 46, 48, 51, 54, 73, 74, 76, 77 EXEMPT FROM THE REVISED SURPLUS LAND ACT SUMMARY Resolution 21-50 will declare APN 430-271-81 and portions of 430-271-78, 80, 82, 84, 92, 93, 430-371-41, 42, 43, 44, 45, 46, 48, 51, 54, 73, 74, 76, 77 exempt from the revised Surplus Land Act (SLA) pursuant to California Government Code Section 54234 and the Final Surplus Land Act Guidelines Section 103 (b) (1) (A). RECOMMENDATION It is recommended that the City Council take the following actions: 1. Adopt Resolution 21-50: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY COMPRISED OF ASSESSORS PARCEL NUMBERS 430-271-81 AND PORTIONS OF 430-271-78, 80, 82, 84, 92, 93, 430-371-41, 42, 43, 44, 45, 46, 48, 51, 54, 73, 74, 76, 77 EXEMPT FROM THE REVISED SURPLUS LAND ACT PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54234 AND THE FINAL SURPLUS LAND ACT GUIDELINES SECTION 103 (b) (1) (A). 2. Authorize the City Manager to sign and direct staff to submit the appropriate documentation to the California Department of Housing and Community Development in connection with the Resolution. FISCAL IMPACT Not applicable BACKGROUND DocuSign Envelope ID:08CBB54E-B898-470B-BAF6-B8755C9F9BE7 Agenda Report—Surplus Property Declaration June 15, 2021 Page 2 The Surplus Land Act (SLA) defines the process for local agencies to follow when disposing of surplus parcels of land owned in fee that are no longer needed for the City's use. The SLA set general timelines for posting notification of available surplus property, defined the process for negotiating with an affordable housing developer in the event one expresses interest, and the process for disposition absent any notification of interest or in the event negotiations do not result in a sale to a qualifying affordable housing developer. Assembly Bill 1486 (Ting, 2019) amended the SLA and significantly changed the terms of the SLA, as well as added substantial penalties for noncompliance. The Final Housing and Community Development Department (HCD) Guidelines (Final HCD Guidelines) for compliance with the SLA were published in April 2021. The SLA and Final HCD Guidelines grant certain exemptions for various types of property, and for property subject to certain agreements, including Exclusive Negotiating Agreements (ENAs) that were entered into prior to September 30, 2019. The City and Brookfield Residential Southern California LLC (Brookfield) entered into an ENA in February 2019, and a Disposition and Development Agreement (DDA) in December 2019, for a 400 unit for-sale project within Neighborhood D South at Tustin Legacy. Construction has commenced and Close of Escrow is expected later in 2021, with models opening in early 2022. DISCUSSION Resolution 21-50 states the findings and declares the Assessor Parcel Numbers (APNs) comprising the Brookfield project property exempt from the requirements of the revised SLA pursuant to Government Code 54234 and the Final HCD Guidelines Section 103 (b) (1) (A). There are no additional SLA requirements on these parcels as long as Close of Escrow occurs before December 31, 2022. DocuSigned by: DocuSigned by: sfo�tr ilgtopt Oster ' ..&w9w tek Director of Economic Development Manager of Development Services DocuSigned by: -nrtecftuee Senior Management Analyst ATTACHMENTS - Resolution 21-50 DocuSign Envelope ID:08CBB54E-B898-470B-BAF6-B8755C9F9BE7 RESOLUTION NO. 21-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY COMPRISED OF ASSESSORS PARCEL NUMBERS 430-271-81 AND PORTIONS OF 430-271-78, 80, 82, 84, 92, 93, 430-371-41 , 42, 43, 44, 45, 46, 48, 51 , 54, 73, 74, 76, 77 EXEMPT FROM THE REVISED SURPLUS LAND ACT PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54234 AND THE FINAL SURPLUS LAND ACT GUIDELINES SECTION 103 (b) (1) (A). WHEREAS, the City of Tustin (City) owns certain real property consisting of approximately 25 acres (Site) at Tustin Legacy (former Marine Corps Air Station Tustin) comprised of 430-271-81 and portions of 430-271-78, 80, 82, 84, 92, 93, 430-371-41, 42, 43, 44, 45, 46, 48, 51 , 54, 73, 74, 76, 77-land WHEREAS, in 1992, the City was designated by The United States Department of the Defense as the Lead Agency or Local Reuse Authority for preparation of a reuse plan for MCAS Tustin in order to facilitate the closure of MCAS Tustin and its reuse in furtherance of the economic development (including the creation of jobs and housing) of the City and surrounding region; and WHEREAS, in May 2002, The United States of America approved an Economic Development Conveyance (EDC) and agreed to convey approximately 1 ,153 acres of former MCAS Tustin to the City; and WHEREAS, on May 13, 2002, a total of approximately 977 acres were conveyed by The United States of America to the City by quitclaim deed, in accordance with the provisions of a Memorandum of Agreement by and between The United States of America and the City dated May 13, 2002, and WHEREAS, the additional approximately 177 acres were made subject to a ground lease by the City from The United States of America and portions thereof have subsequently been conveyed to the City pursuant to subsequent quitclaim deeds; and WHEREAS, the City believes the Site (and all portions of Tustin Legacy owned or to be owned by the City) to be assets to be held, used, and portions sold or leased to enable the City to meet its responsibilities to fund ongoing and future infrastructure, development and maintenance costs at Tustin Legacy that are borne by the City as Executive Developer in order to provide housing, employment, public services and recreation to City residents; and WHEREAS, the City, acting as Executive Developer for Tustin Legacy, carefully plans neighborhoods within the 1 ,600-acre footprint to account for infrastructure costs, DocuSign Envelope ID:08CBB54E-B898-470B-BAF6-B8755C9F9BE7 market conditions, and community benefits prior to initiating a disposition process for certain parcels; and WHEREAS, the City, acting as Executive Developer for Tustin Legacy, has acted in its role to provide market rate and affordable housing at Tustin Legacy, with 3,457 residential units (ownership and rental) constructed to date, 688 of which are deed restricted for various levels of affordability; and WHEREAS, the Site is subject to an Exclusive Negotiating Agreement (ENA) that was executed in February 2019 and a Disposition and Development Agreement (DDA) that was executed in December 2019, and the City plans to dispose of the Site pursuant to the requirements of the ENA and DDA; and WHEREAS, existing law established the Surplus Land Act (SLA)for local agencies to follow when disposing of surplus properties no longer needed for the City's use; and WHEREAS, on October 9, 2019, California Governor Gavin Newsom signed Assembly Bill 1486 (Ting) into law, making substantive amendments to the SLA effective January 1 , 2020; and WHEREAS, the amended SLA required that legally binding agreements such as an ENA must have been entered into by September 30, 2019 for property to be exempt from the amended SLA; and WHEREAS, the amended SLA requires local agencies to declare land as "surplus land" or "exempt surplus land" prior to disposing of property owned by the local agency; and WHEREAS, the final Surplus Land Act Guidelines were published by the California Housing and Community Development Department in April 2021 with additional guidance; and WHEREAS, since the ENA applicable to the Site was executed prior to September 30, 2019, the Site falls within the parameters of Government Code 54234 and Final Surplus Land Act Guidelines Section 103 (b) (1) (A). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TUSTIN, THAT: 1 . The foregoing recitals are hereby incorporated and adopted as the findings of the City Council; and 2. The Site comprised of APN 430-271-81 and portions of 430-271-78, 80, 82, 84, 92, 93, 430-371-41 , 42, 43, 44, 45, 46, 48, 51 , 54, 73, 74, 76, 77 is hereby declared surplus land that is exempt from the revised Surplus Land Act. DocuSign Envelope ID:08CBB54E-B898-470B-BAF6-B8755C9F9BE7 PASSED and ADOPTED by the City Council of the City of Tustin at a regular meeting on 15th day of June, 2021. LETITIA CLARK, Mayor ATTEST: ERICA N. YASUDA, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No 21-50 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 15th day of June, 2021 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk