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Home My WebLink About01 REUSE PARCEL 18 AT FORMER MCAS TUSTIN DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB Agenda Item LL5W Reviewed: AGENDA REPORT City Manager Finance Director N/A MEETING DATE: AUGUST 11 , 2021 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL ACTING AS THE LOCAL REUSE AUTHORITY FOR FORMER MARINE CORPS AIR STATION, TUSTIN FROM: MATTHEW S. WEST, LOCAL REUSE AUTHORITY EXECUTIVE DIRECTOR SUBJECT: REUSE PARCEL 18 AT FORMER MCAS TUSTIN SUMMARY Discussion of progress on the development of Reuse Parcel 18 [County of Orange (County) Regional Park] and consideration of possible actions by the City Council acting as the Federally recognized Local Reuse Authority (LRA) for former Marine Corps Air Station (MCAS) Tustin. RECOMMENDATION It is recommended that the LRA receive and file any County testimony or responses to questions and issues raised by the LRA and the Orange County Grand Jury Report dated June 9, 2020 regarding the County's progress in implementing a Regional Park pursuant to the County's Public Benefit Conveyance (PBC) Application for Reuse Parcel 18. Upon LRA consideration of County testimony and responses, the LRA may consider acting on one of the following two recommended options with included sub- recommendations: Option 1: County License/Lease: a) Direct staff to work with the Department of the Navy (Navy), Department of Interior (DOI) and the County for the Navy to issue a license, interim lease and/or Lease in Furtherance of Conveyance (LIFOC) to the County for Reuse Parcel 18 for maintenance and security of Parcel 18 site as soon as possible in furtherance of the County's Public Benefit Conveyance (PBC) Application for Reuse Parcel 18. b) Direct staff to pursue incorporation of specific performance milestones into the license, interim lease and/or LIFOC, which will include, but are not limited to maintenance and security, design and approvals, funding commitment, and DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB Agenda Report — Reuse Parcel 18 August 11 , 2021 Page 2 construction timeline, to ensure the County develops the Regional Park in a timely manner. c) Direct staff to return to the LRA with Parcel 18 Reuse options that do not involve a County Regional Park should the County fail to execute on any performance milestone. OR Option 2: Alternate Reuse Options for Parcel 18.- a) 8:a) Adopt Resolution 21-01 : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE FEDERALLY DESIGNATED LOCAL REUSE AUTHORITY FOR FORMER MARINE CORPS AIR STATION TUSTIN REVISING THE EXISTING REUSE PLAN FOR FORMER MCAS TUSTIN TO EXCLUDE THE COUNTY OF ORANGE REGIONAL PARK FROM REUSE PARCEL 18 b) Inform the Navy and DOI of the LRA intention to adopt a revised Reuse Plan for Reuse Parcel 18, and request that the Navy and DOI revoke the County PBC for Reuse Parcel 18 c) Direct staff to begin the Reuse Planning process for Reuse Parcel 18 d) Direct staff to work with the Navy on amendment to the existing City license or an interim lease for maintenance and security for Reuse Parcel 18 e) Direct staff to return to the LRA with several Reuse Plan alternatives that may include public park components amongst other land uses for Reuse Parcel 18 for consideration at a later date. FISCAL IMPACT Staff time and third-party costs are budgeted for FY 20/21 and incorporated into the draft FY 21/22 budget. Any City license or lease for potential interim security and maintenance of Reuse Parcel 18, as well as any potential reuse planning costs remains unknown and unbudgeted. DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB Agenda Report— Reuse Parcel 18 August 11, 2021 Page 3 BACKGROUND In 1992, the City was designated the LRA for former MCAS Tustin by the Office of Local Defense Community Cooperation (OLDCC) within the Department of Defense (DOD), formerly known as the Office of Economic Adjustment (OEA) and was re-confirmed as the LRA in 1994. LRAs perform a critical role and are responsible for specific tasks in the closure and reuse of former military installations by: - Serving as the single point of contact between the Federal Government and community interests during and after the closure process - Developing the Reuse Plan for the former base - Allowing maximum community input during the reuse planning process - Developing the homeless accommodation plan - Recommending approval or denial of PBC applications - Implementing the Economic Development Conveyance (EDC) Agreements — specific to Tustin The ongoing duties and powers of the LRA include, but are not limited to: - Working with PBC applicants on implementation and development issues - Amending the Reuse Plan as needed due to changing market/land use interests or lack of performance - Holding public meetings to receive updates or take other actions related to former MCAS Tustin Pursuant to the Department of Defense Base Closure and Realignment Act of 1990, as amended (Base Closure Act), the LRA conducted a reuse planning process that led to the adoption of the MCAS Tustin Reuse Plan/Specific Plan, reviewed and approved by the United States Department of Housing and Urban Development (HUD), and utilized by the Navy in its ongoing MCAS Tustin disposal process. As part of the LRA's reuse planning process, the County: - Sought to acquire Reuse Parcel 18 to create and operate a Regional Park through a PBC DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB Agenda Report— Reuse Parcel 18 August 11, 2021 Page 4 - Submitted a DOI National Parks Service (NPS) application in 1995 that was approved by DOI, which identified the County funding mechanism intended to address the costs of creating and operating the proposed Regional Park, and that was incorporated by the LRA into the final HUD-approved MCAS Tustin Reuse Plan/Specific Plan. In 2012, seventeen (17) years after the DOI approval of the original County PBC application, the County proposed an alternate Program of Utilization (POU)that proposed changes to the DOI approved application by seeking additional and more expansive revenue-generating activities to subsidize the costs of creating and operating the proposed Regional Park. This alternate plan has never been approved by DOI, thus leaving in place the original 1995 DOI PBC application as the only approved plan for a Regional Park. During the last several years, Reuse Parcel 18 has seen an increase in instances of trespassing, criminal conduct, vandalism and other illicit activities that have required an independent and significant local City of Tustin response. These activities have been documented in several letters from the City to the County, and further discussed in the 2020 Orange County Grand Jury Report "What's Happening with the Historic Tustin Hangars?" On February 23, 2021, the LRA held a public forum inviting all former MCAS Tustin property recipients to present updates on development progress. The County's testimony at the February 23 forum regarding Reuse Parcel 18 indicated an unwillingness to take a license, interim lease, and/or LIFOC to secure and maintain Reuse Parcel 18, and also indicated that there is no current timeline or plan for when or how the Regional Park would be constructed. On March 30, 2021 , the LRA sent a letter to the County requesting additional information based on the County's testimony at the LRA public forum and requested written responses within thirty (30) days, or April 29, 2021 . As of July 27, 2021 , no written response has been received. Due to a lack of County response and a determination that action be taken, the LRA has decided to convene an additional meeting of the LRA focused on Reuse Parcel 18. DISCUSSION The LRA, on behalf of the City of Tustin and the greater Tustin community, continues to stress the importance of commitment to maintenance and security by designated property recipients of all property at former MCAS Tustin. Given the County is the only designated property recipient that has failed to commit to maintaining and securing property, the LRA has requested the County appear at a publicly noticed meeting to provide for a focused opportunity to allow for direct questioning of the County and response regarding Reuse Parcel 18. DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB Agenda Report— Reuse Parcel 18 August 11, 2021 Page 5 If the County were to commit to accepting responsibility for securing and maintaining Parcel 18 by means of a license, interim lease and/or LIFOC on Reuse Parcel 18, the LRA may direct staff to work with Navy, DOI and the County to develop such a license, lease or LIFOC with specific performance milestones for the County. The performance milestones would include, but would not be limited to, such tasks as maintenance and security, design and approvals, funding commitment, and construction timeline and would keep the County on task to finalizing its plans for development of a Regional Park. If the County were to fail to meet any performance milestone, the LRA could request the DOI to revoke the County PBC. Should the County commit to accepting a license, lease or LIFOC for the property and the LRA decide to proceed with this option, the following actions are recommended for consideration: - Direct staff to work with the Navy, DOI, and the County to issue a license, interim lease and/or LIFOC to the County for Reuse Parcel 18 for maintenance and security of the site - Direct staff to pursue incorporation of specific performance milestones into the license, interim lease and/or LIFOC to ensure the County develops the Regional Park in a timely manner - Direct staff to return to the LRA with several Reuse Plan alternatives for Reuse Parcel 18 that exclude a County Regional Park, for consideration should the County fail to execute on any performance milestone. Should the County's responses to the LRA's questions in the March 30 letter or at the LRA meeting prove to be inadequate to meet the LRA's determination that actions be taken to advance progress on Reuse Parcel 18, the LRA may decide to consider and adopt Reuse Plan alternatives for Parcel 18 that do not include a County Regional Park, but may include public park components amongst other land uses. Such actions would include adopting a resolution to revise the existing Reuse Plan to exclude the County Regional Park from Reuse Parcel 18, as well as initiating the Reuse Planning process. Should the LRA decide to proceed with this option, the following actions are recommended for consideration: - Adopt Resolution 21-01 : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE FEDERALLY DESIGNATED LOCAL REUSE AUTHORITY FOR FORMER MARINE CORPS AIR STATION TUSTIN REVISING THE EXISTING REUSE PLAN FOR FORMER MCAS TUSTIN TO EXCLUDE THE COUNTY OF ORANGE REGIONAL PARK FROM REUSE PARCEL 18 - Inform the Navy and DOI of the LRA intention to adopt a revised Reuse Plan for Reuse Parcel 18, that does not include the County Regional Park, and the reasons DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB Agenda Report— Reuse Parcel 18 August 11, 2021 Page 6 such actions were taken, and request that the Navy and DOI revoke the County PBC for Reuse Parcel 18. - Direct staff to begin the Reuse Planning process for Reuse Parcel 18 - Direct staff to work with the Navy on amendment to the existing City license or an interim lease for maintenance and security for Reuse Parcel 18. - Direct staff to return to the LRA with several Reuse Plan alternatives for Parcel 18 that may include public park components amongst other land uses for consideration at a later date. ATTACHMENTS - Orange County Grand Jury Report dated June 9, 2020 - LRA letter to County dated March 30, 2021 - Draft Resolution 21-01 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? 4 f GRAND JURY 2019-2020 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? TABLE OF CONTENTS SUMMARY................................................................................................................................... 1 REASON FOR THE STUDY......................................................................................................3 METHODOF STUDY.................................................................................................................3 BACKGROUNDAND FACTS ...................................................................................................4 MCASTustin Base Closure......................................................................................................4 County's Conceptual Plan........................................................................................................8 Department of Navy Base Realignment and Closure .......................................................... 10 Cityof Tustin's South Hangar............................................................................................... 12 RecentCommunication........................................................................................................... 13 FINDINGS................................................................................................................................... 14 RECOMMENDATIONS............................................................................................................ 15 RESPONSES............................................................................................................................... 16 ResponsesRequired................................................................................................................ 17 Findings................................................................................................................................. 17 Recommendations.................................................................................................................. 17 REFERENCES............................................................................................................................ 18 Countyof Orange.................................................................................................................. 18 Cityof Tustin......................................................................................................................... 18 Departmentof Navy............................................................................................................... 18 National Park Services.......................................................................................................... 19 Historic Preservation ............................................................................................................ 19 GLOSSARY.................................................................................................................................21 APPENDIX..................................................................................................................................22 MCAS Tustin Hangar Timeline Overview...........................................................................22 2019-2020 Orange County Grand Jury Page i DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? FIGURES Figure 1. Aerial view of the historic Tustin hangars ......................................................................2 Figure 2. Location map showing park location within former MCAS Tustin................................ 4 Figure 3. Parcel map showing Parcel 18 and improvements.......................................................... 5 Figure 4. Tustin Legacy Specific Plan, Page 2-4. Parcel 18 identified as PA 6............................. 7 Figure 5. County proposed Program of Utilization, 2012 .............................................................. 9 Figure 6. Ground contamination plumes 2018 ............................................................................. 11 2019-2020 Orange County Grand Jury Page ii DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? SUMMARY When former Marine Corp Air Station (MCAS) Tustin closed in 1994, the County of Orange, supported by the City of Tustin, applied for and received approval from the Department of the Navy to develop Parcel 18 through a no-cost Public Benefit Conveyance (PBC). The 85-acre property includes the North"blimp" Hangar, one of two similar historical structures on the former base,which was proposed to be preserved as the centerpiece for a county regional park (see Figure 1). The County of Orange has spent significant time and resources over the past twenty-five years attempting to generate plans to redevelop the property as a regional park, yet has been unable to obtain the necessary approvals for an economically viable plan within the constraints of the PBC. Unexpected changes in the original conditions, including the Navy's prolonged and continued cleanup of on-site contaminants and the North Hangar's partial roof collapse in 2013, have made redevelopment potentially more complicated and costly. As the Local Reuse Authority, the City of Tustin received the majority of the property within former MCAS Tustin as part of an Economic Development Conveyance (EDC), including the historic South Hangar,which was slated to be demolished. The EDC allows the City of Tustin to generate income from property sales or leases to offset infrastructure and redevelopment costs. In 2013, the City of Tustin commenced licensing the South Hangar for interim uses, and has more recently developed plans and budgeted funds for initial repairs and renovation to begin in 2020. The planned retention of the South Hangar significantly reduces the potential economic viability or public benefit to be gained from also retaining the North Hangar. Based on altered conditions,the City of Tustin appears to be in a more advantageous position than the County to redevelop the 85 acres within Parcel 18 as it is the Local Reuse Authority, and could potentially accept the property through its existing Economic Development Conveyance and re-plan/redevelop the property in joinder with currently owned adjacent properties. The Department of the Navy has expressed its concern to the County that absent a viable plan and path forward on the transfer of Parcel 18 to the County, the Navy will re-engage the National Park Service (NPS) and the City of Tustin to discuss an alternative conveyance mechanism to meet the objectives of the original agreement and the Tustin Legacy Specific Plan. The County once envisioned a unique regional park with a grand testament to Orange County's military history at its center. However, it has been ineffective in its planning efforts and unexpected circumstances have diminished the potential economic viability and public benefit to be gained from a county regional park in this location. Despite altered conditions and the lack of an approved plan, there is no indication that the County has reevaluated the fundamental benefit of remaining involved in development of Parcel 18. Best practices for any policy making body 2019-2020 Orange County Grand Jury Page 1 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? includes reevaluating decisions made when circumstances change. It is time for the County of Orange to reevaluate its ability to provide additional benefit to county residents from its involvement with the redevelopment of Parcel 18 as a county regional park. Or NOW - - '. ARMIN ri 14 - PARTIAL ROOF COLLAPSE � - OCTOBER 2013 AUL Image clipped from Google Earth' Figure 1. Aerial view of the historic Tustin hangars North Hangar and Parcel 18 are in the foreground. South Hangar is in the background 'Google Data LDEO—Columbia,NSF,NOAA Data SIO,NOAA,U.S.Navy,NGA,GEBCO Landsat/Copernicus 2019-2020 Orange County Grand Jury Page 2 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? REASON FOR THE STUDY The reason for this investigation is to provide a current review of the County's plan to redevelop the 85-acre parcel within the former MCAS Tustin as a county regional park. It has been over twenty-five years since the County's Public Benefit Conveyance application was approved by the Department of the Navy, yet no redevelopment plans have been approved and the property continues to deteriorate as surrounding properties become developed. The Orange County Grand Jury's intent is to facilitate a path forward that would be most beneficial to the residents of Orange County. METHOD OF STUDY In conducting its investigation, the Grand Jury completed extensive document review and online research pertaining to the history and reuse of Parcel 18 within the former MCAS Tustin property. The Grand Jury interviewed ten individuals including representatives from the City of Tustin and Orange County who provided invaluable information to the Grand Jury in its investigation. 2019-2020 Orange County Grand Jury Page 3 • '• . 11 • . 11� • . 11 • 1 1 i ' 11 . • /. i • . • nL v . -DINGER AVE If_ �'.. _� �- _= a�. _ • k � Ulm 40 PARK LOCAT104r ♦ NORTH BLIMP HANGAR u IP".. s,BLUG NO. 28 `j. .. col IiF -47 # Tp7 LfM TkyyF��CiR• R • 'S �� i=�+-. 7�!{.i`�sx � - 40 son. I Ilia d�J 41 A gal Z IL r ..a a L .40 fir 14• �l~`as l`r lop r #p *!1A - crY� ;� '-i-' .•1 S.F • ♦ 1'11 1 .11 11. 1. a 1 11 . 1 1' DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? Parcel 18 contains the historic North Hangar, also known as Hangar 1 or Building 28, along with the historically significant control tower and helium storage buildings (Figure 3). The County intended to redevelop the property as a county regional park,retaining the historic North Hangar as a centerpiece. ,4 NOT TO SCALE r- ■1 1 DEPT OF # NOH . i iLI i ` + 1 ■ ■ 1 ■ * • N(Ia i * a �dr A i y I � Image from park concept report to County of Orange,2011,prepared by Tait and Associates Figure 3. Parcel map showing Parcel 18 and improvements. The County's role in preserving historical structures was the impetus behind its interest in acquiring, redeveloping, and maintaining the property as a county regional park. Without the 2019-2020 Orange County Grand Jury Page 5 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? retention of historic elements,the flat infill development site does not embody the typically unique characteristics of regional recreational facilities within the recreation element of the County's general plan,nor does it offer more than what is available in nearby local parks. The proposed park lies within Supervisorial District 3,which currently has a larger share of parks in comparison to most of the other districts. Moreover,there appears to be limited need or county- wide political support to spend funds for additional recreational venues in this district. The City of Tustin, as the Local Reuse Authority, approved and supported Orange County's PBC application, and adopted the county regional park as a feature of the Tustin Legacy Specific Plan. 3 The City of Tustin entered into a no-cost Economic Development Conveyance (EDC) with the Department of the Navy to acquire the majority of the former MCAS Tustin property. The EDC allows the City of Tustin the ability to generate income from land sales and leases to offset infrastructure and development costs. Additionally, in its position as the Local Reuse Authority, the City of Tustin has authority over the review and approval of any reuse or redevelopment of property within the former MCAS Tustin under the Tustin Legacy Specific Plan. A Memorandum of Agreement(MOA), signed in 1999,between the Department of the Navy, the California State Historic Preservation Office, Orange County, and the City of Tustin, sets out the stipulations and mitigation measures which the County and the City of Tustin would be required to meet if the hangar complexes are conveyed without historic preservation restrictions. Orange County and Tustin completed those mitigation measures in 2009. As a result,the Navy determined the MOA was no longer in effect and the future disposal of the property is not encumbered by a historic preservation covenant.4 3 See References#5-Tustin Legacy Specific Plan a See References#15-MOA Stipulations 2019-2020 Orange County Grand Jury Page 6 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? s" TUSTIN Suction 2 sp E i��'I c uYr+ F iq ure 2-1 Land Use Plan LEGEND - Tustin City Limit '� I '' -••- 5peeifiePlan Boundary --_ F Mixed-Use Transit C Mixed-U se Urhan _ PA 24) Commercial PA4-5 PIA 7 {em menia l I Butin est ---� PA 1S-A 1f'` Residential :PA 1-p ..,,.....,. Park I Pp 2PA 21 Tustin Legacy Pa rk Overlay P&1-C y'x TransitiQP1oKmergency Housing PA1-J Edu cation Village - - Existing R.O.W. • PA PA3-H PA 1-D PA 6 ' Proposed R.O.W. PA 1-Rz. Plan Hing Arra A t. PA 15-B p ; Y -K.,.., -PA 14 i PA 1-L PA 15-C PA 1-F r PA 1-G PA Sr 13&14 "r I I PA9-12 PA I6-19 PA 22 ' r 2-4 City of TLaNn Figure 4. Tustin Legacy Specific Plan, Page 2-4. Parcel 18 identified as PA 6 Parcel 18 is designated as Planning Area 6 within the Tustin Legacy Specific Plan (Figure 4), and its designated land use is as a county regional park. Section 3.9 of the Tustin Legacy Specific Plan sets out the Development Standards and Use Regulations pertaining to Planning Area 6 which regulate the redevelopment of the property. Surrounding land uses include existing residential development to the north, undeveloped commercial designated land to the south and east, and instituitonal uses to the west. A private high school is currently under construction to the east of Parcel 18. The City of Tustin is the owner of the adjacent commercially zoned vacant property to the east and south of Parcel 18 and would be in a more advantageous position than the County to potentially re-plan future uses in joinder with this larger land area. Changes to the land use of Parcel 18 could have potential negative impacts on adjacent properties which were planned in 2019-2020 Orange County Grand Jury Page 7 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? anticipation of a regional park being developed. Any proposed changes to the existing recreational park land use to more intensive uses would require revising the Tustin Legacy Specific Plan which would most likely include additional environmental impact assessments and public hearings. In May 2002,the City of Tustin received a Lease in Furtherance of Conveyance, (LIFOC), on the majority of the property within the former MCAS Tustin, including the property containing the historic South Hangar, known as Hangar 2. The South Hangar was slated for demolition, and remained"moth-balled"with no activity through 2012. The county also considered accepting Parcel 18 through a LIFOC from the Navy at the same time, but they decided not to pursue a lease for unknown reasons. In the original planning for the reuse of MCAS Tustin,the County of Orange also received approval for a PBC of a parcel designated as Disposal Site 2,which is an approximate 10-acre site to the northwest of Parcel 18, adjacent to Armstrong Avenue. Due to delays in transfer and altered conditions from the original planning,the County subsequently agreed to withdraw its application for the PBC of Disposal Site 2 as part of a multi-party agreement with the City of Tustin and the South Orange County Community College District. The City of Tustin and Department of the Navy agreed to amend their agreements to include Disposal Site 2 into the City of Tustin's EDC. Based on this precedent, it is anticipated that the City of Tustin will be able to amend its EDC to incorporate Parcel 18 should the County not proceed with its plans or should it withdraw its PBC application. County's Conceptual Plan In February 2012, the Orange County Board of Supervisors approved a conceptual plan for the Regional Park and submitted a Program of Utilization (POU) to the National Park Service (NPS) (Figure 5). The County's conceptual plan for the POU included retention of the historic North Hangar. The POU also included a private partnership comprised of USA Water Polo and the Anaheim Ducks,who were proposing to lease areas within the future park. The POU had a development cost estimate of$69,000,000 and annual maintenance costs of$1,700,000 in 2011 dollars. The submitted POU never received the required approval from the NPS. 2019-2020 Orange County Grand Jury Page 8 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? �Z, = - Concept Plan Legend 1 gweso - niwwcuo weAi �Ex.BaikSnps to Renrairt itiottaon Proposed Parkrtig Loft Z0KA Mrh mname Pavers ® (ES,SM Sin c ) ,- 0 r Manger waia Pbrk Lraw9 • � _ 4- �Aar.sa Rosas 13.3 Auesl .w n,�+�av`.r��:...r � s ® Pu61C ResEroom wlrn r a0 j Parking is ..,w.«..... -- L .. i,. � rVnvrt : wj�w Sldpea-W 5 •985 0 Spas 'Axa Iwq rvn�im wrtw wVW1PZanele5041b 550Spaces Tp}gl ES'imalad an SI;B Parting•1500 Spaces c .,r...n.s.,. ;:rte:. -. r."_.. ."E1 i � �_ -. ...-_ �,•n.,. bra"•' Ewe . ZONE E PROJECT LOCXTK)N s-Sanw Ar" rL•irE rrE�oFier:: � � ., - 1Nn � ` pp .ur ra h�esa •- LDCAign AII? Yxwb.wya.laVlJrw reaanat WEl Image from Orange County Program of Utilization submittal to National Parks Service,2012 Figure 5. County proposed Program of Utilization, 2012 The preliminary financing plan forwarded to the NPS as part of the POU submittal indicated there appeared to be viable financial support to design and construct the park at that time. The source for repayment of the proposed bond debt was assumed to be Orange County Parks' property tax apportionment revenue of approximately $9,800,000, which was to become available in 2016. The County has made no modification to its program of utilization or submittal to the NPS. Prospective tenants have moved on to other locations and the anticipated financing is no longer in place. In October 2013, a portion of the North Hangar's roof collapsed (see Figure 1). As a result, the structure was "red-tagged" and not permitted to be occupied. The damage was temporarily stabilized by the Department of the Navy in 2014, at a cost of$3.2 million. The Navy's annual contracted cost to maintain the North Hangar structure is approximately $350,000. The Department of the Navy is not legally obligated to repair the hangar, and the structure is only required to be in a stabilized condition at the time of transfer. The County of Orange has sought no engineering assessments or cost estimates to repair the damage to the North Hangar. 2019-2020 Orange County Grand Jury Page 9 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? An investigation and assessment of the historic South Hangar, conducted in September 2017 by consultants to the City of Tustin, indicated potential hazardous materials within the structure. The hazardous materials identified were asbestos, lead, biological contaminants, and groundwater contaminates which may result in vapor intrusion issues. These same hazardous materials would be assumed to exist within the North Hangar and mitigation of these hazardous materials could add significant costs to either retention or demolition of either of the hangar structures. The County of Orange has retained multiple land use consultants to assess and provide development concepts for the property over the past 25 years, including alternative redevelopment conceptual plans without retaining the North Hangar. None of the potential development concepts were considered to be economically or legally viable within the constraints of a PBC. The cost to demolish the North Hangar and its ancillary structures to clear the property would be significant, with preliminary estimates in the range of$15-25 million. Without the retention of the historic structures, and with limited potential for recreational uses to generate income, there does not appear to be significant offsetting financial or public benefit to the residents of Orange County. The County of Orange has indicated an interest in applying to the National Park Service to alter the conveyance mechanism to a Historic Monument PBC, yet has made little to no progress towards submitting that application. Although a Historic Monument PBC may include revenue producing activities to support the historic monument, all income exceeding the cost of repair, rehabilitation, and maintenance must be used for public historic preservation,park or recreational purposes. The application for Obtaining Real Property for Historic Monument Purposes requires that some historical elements be maintained, and requires extensive details on the proposed Preservation Plan, Use Plan, and Financial Plan. The County currently has no viable proposals to meet the preservation, use, and financial requirements of a Historic Monument PBC. Department of Navy Base Realignment and Closure The Department of the Navy's Base Realignment and Closure Team, (BRAC), along with its environmental Base Clean-up Team and Restoration Advisory Board, (RAB) for MCAS Tustin, are the lead agencies in reviewing future uses and transfers of property within MCAS Tustin. The Department of the Navy's BRAC team operates extraction wells and equipment on Parcel 18, and continues to oversee the monitoring,testing, and clean-up of Chemicals of Concern in on-site soils and groundwater. The Navy will continue to monitor and clean-up groundwater contaminants until cleared by regulatory agencies, regardless of when the transfer of ownership of the property may ultimately occur. s See References#13-Public Benefit Conveyance—Historic Monument Application 2019-2020 Orange County Grand Jury Page 10 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? U,.". OU-08 - OLI.4BIRP-13W(TCE) IRP-11(TCE) 244BA, OL'--1B North2476 .P.F'-1-rC'E( -44 J 21 22A 32 CU-1:. -1 CU-1B North 141 11 I � IRP•'E�S(TCE) 226 f iRP-12(TCE) �'J 3 17 7 1A 79A 40B \ l_ i 17A ' ` 16 �y w 27 3 18 196 C27Ye-{7Ut# �16B I f10111 26 2A ` 29 10 DU-1 A IRA-13S(1?,3-TCP) S , J m 41 `1 OU48 Mingled ! 30 �.PI'amesAree(TCE) 1S !1 .i f 16A 31 16C16 t 1 �� ki Carve-0uf A9 €es€xu Carve_cin rs r t }r.[+"-w Grow-f~flowptretd on OIJ•4B F.-R MCLS F,,*. IRP'53- (TCE) •'-. -�_-i Can OLA wrwom Vi woes] �. 1 ::.IJ-le SQU1h F�MiBIGrnr�W�aPYnrr� ��-_. IF'Ps CTCE) 1.2ATCP(=4=--_- 14 -1,14DCE @tV`- on-4B TCE(-P9'C) 12 IRF'-E(t,i-GCE) )•r' � r—IM-30 undery F—IPrml B—d.Y _ E _Prom 4091 W orY'yY') Carve&4lrt:�2 IP,:?-El, E) Image from PowerPoint presented at RAB meeting,Tustin October 2018.See references#10 Figure 6. Ground contamination plumes 2018 Minutes from the October 2019 meeting of the RAB indicate that the Navy is continuing to monitor,test, and clean groundwater plumes, and levels of potential contaminants of concern continue to be reduced.6 Current contaminants of concern identified on the property include 1,2,3-TCP and PFAS. Figure 6 is a map of identified groundwater plumes on the MCAS site. Parcel 18 with the North Hangar is identified as Carve-Out 5, and the Tustin Legacy area with the South Hangar is identified as Carve-Out 6. The recently identified PFAS substances have yet to receive clarification of contaminant levels by the regulating authorities,including the California Department of Toxic Substances Control and will continue to be monitored and reported on by the RAB. The RAB is also responsible for establishing any institutional controls, deed restrictions and any Covenants to Restrict Use of the Property (CRUP) documents. Potential institutional controls, deed restrictions and CRUP documents for Parcel 18 are unknown at this time. Conditions may include various measures such as grading limitations, vapor barriers, hazardous material abatement, storm water runoff management, and other remediation and/or mitigation measures. 6 See References#10-Navy RAB 2019-2020 Orange County Grand Jury Page 11 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? These restrictions could limit the extent of future development and add additional costs and time to the redevelopment of the property. On March 30, 2018, the Navy issued the draft Findings of Suitability to Transfer 910 (FOST #10), for Carve-Out 5 (which includes Parcel 18), and Carve-out 6 on former MCAS Tustin. Draft FOST#10 summarizes how transfer requirements and notifications have been satisfied and that the parcels are environmentally suitable for transfer. The draft FOST indicated that finalization of the transfer was anticipated by August 2018. However,the identification of newly emergent PFAS contaminates in 2018 has delayed the Navy's transfer timeframe. The Navy is currently coordinating with the appropriate regulatory agencies, the City of Tustin, and other stakeholders to develop a strategy to further assess PFAS impacts to groundwater. The Navy currently indicates that it anticipates a final FOST in early to mid-2021. Extended delays in the site clean-up and in the fee title conveyance from the Navy have made it challenging for the County to develop plans and attract potential development partners. The lack of clarity on potential institutional controls and deed restrictions which will be placed on the redevelopment of Parcel 18 make it difficult to plan future uses and costs. While delays in the Navy's environmental clean-up have impacted transfer timelines for most properties within Tustin Legacy,these delays have not halted the City of Tustin's plans as it continues to complete planning and site preparations on property still owned by the Navy in anticipation of future conveyance. City of Tustin's South Hangar In 2013, the City of Tustin re-evaluated the use of the South Hangar and began issuing licensing agreements for temporary uses. The City of Tustin currently maintains a website marketing the South Hangar with an advertised rate of$9,000/day7 and is currently open to proposals for use. The City of Tustin indicates that the South Hangar was utilized approximately 43 times in the period from 2013-2019 (avg. 7 users/year)with a total gross revenue generated of approximately $1,000,000 over the six-year period. The interim uses were primarily for film/advertising production and community events. The City of Tustin currently has no economically viable proposals from prospective long-term tenants. In 2017, the City of Tustin retained consultants to lead an extensive investigation and engineering assessment of the historic South Hangar structure. The resulting report, produced in September 2017, indicated that the South Hangar was in relatively good condition and, in fact, was in the best condition of the five remaining hangars which the team of experts had inspected. The pre-design phase of the consultant's contracted work was completed in the fall of 2018 and the design phase,which includes construction documents for permitting, is due to be finalized in 'See References#8-City of Tustin,Tustin South Hangar Rental 2019-2020 Orange County Grand Jury Page 12 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? 2020. The City of Tustin indicates that the plans are due to be submitted to the Tustin City Council for approval in the first quarter of 2020. The City of Tustin indicates that it has spent approximately$680,000 on capital improvements to the South Hangar through June 30, 2019, and have an additional $4,300,000 requested in FY 2019-2020 for truss repair and utility connections to improve the functionality and safety of the hangar structure. An additional $10,000,000 in capital improvements for the South Hangar is included in the City's Capital Improvement Program for FY22-23 and is dependent on the timing of income from licensing and future land sales. Tustin's planned retention of the South Hangar significantly reduces the potential economic viability or public benefit to be gained from retaining the North Hangar. Recent Communication The Department of the Navy has recently urged the County to explore the option of converting the hangar portion of the property from a Park PBC, into a Historic Monument PBC which allows limited revenue generating activities compatible with retention of the structure.9 A Historic Monument PBC requires that all income exceeding the cost of repair, rehabilitation, and maintenance must be used for public historic preservation, park, or recreational purposes. Although the County has attempted to meet with the NPS to discuss the option of converting portions of the property into a Historic Monument PBC, no progress has been made. The application to obtain property from the NPS for Historic Monument purposes requires extensive plans and details including a Preservation Plan, a Use Plan, and a Financial Plan.10 The County does not currently have a viable plan for a Historic Monument PBC, yet has indicated an interest in identifying potential development partners through the Request for Proposals process. On March 8, 2018,prior to issuance of Draft FOST 910, the Department of the Navy and the County met to discuss the transfer. At that time,the Department of the Navy expressed its concern in writing that altering the current conveyance mechanism is not inconsequential and will cause substantial delays in the transfer. The Navy was informed by both the City of Tustin and County that the two are not coordinated in their efforts. The County indicated they have no further direction from the Board of Supervisor beyond the 2013 Program of Utilization. The Department of the Navy indicated in a March 27, 2018 follow-up letter to the County, that absent a path forward, the Department of the Navy will re-engage the National Park Service and the City of Tustin to discuss an alternative conveyance approach to meet the objectives of the Reuse Plan. 8 See References#7—Tustin Capital Improvement 9 See References#14—Requirements for Public Benefit Conveyance. 10 See References#13—Public Benefit Conveyance-Historic Monument Application 2019-2020 Orange County Grand Jury Page 13 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? In October 2019, the City of Tustin,notified the County and the Department of the Navy that delays in advancing the County's regional park plans and transfer have resulted in unmaintained and unsafe conditions on Parcel 18. The City of Tustin stated that there have been numerous incidents on the property involving trespassing,vandalism and suspicious activity calls resulting in Tustin Police Department response. They have expressed that the unmaintained condition of the property is not a sustainable situation for the surrounding community. FINDINGS Pursuant to California Penal Code Sections 933 and 933.05, the Grand Jury requires (or, as noted, requests)responses from each agency affected by the findings presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court. Based on its investigation entitled"What's Happening with the Historic Tustin Hangars"the 2019-2020 Orange County Grand Jury has arrived at five principal findings, as follows: F 1. The County of Orange has explored numerous planning options and development proposals regarding Parcel 18 within former MCAS Tustin over the past twenty-five years, yet has been ineffective in its efforts and has not been able to produce an approved economically viable plan within the constraints of its Park Public Benefit Conveyance. F2. Although the County of Orange has indicated an interest in applying to the National Park Service to alter their conveyance mechanism to a Historic Monument PBC, it has made limited progress and currently has no economically viable proposals within the constraints of a Historic Monument PBC. F3. The City of Tustin commenced licensing the historic South Hangar for interim uses in 2013 and has recently moved forward with its plans to renovate and retain the South Hangar. The planned retention of the South Hangar significantly limits the potential economic viability and public benefits of also retaining the North Hangar. F4. The City of Tustin appears to be in a more advantageous position than the County to redevelop the 85 acres within Parcel 18 as it is the Local Reuse Authority, and could potentially accept the property through its existing Economic Development Conveyance and re-plan/redevelop the property in joinder with adjacent property under its ownership. F5. The Navy has stated to the County of Orange that absent a viable plan and path forward on the transfer of Parcel 18 to the County,the Navy will re-engage the National Park Service and the City of Tustin to discuss an alternative conveyance mechanism to meet the objectives of the original agreement and the Tustin Legacy Reuse Plan. 2019-2020 Orange County Grand Jury Page 14 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? RECOMMENDATIONS Pursuant to California Penal Code Sections 933 and 933.05,the Grand Jury requires (or, as noted, requests)responses from each agency affected by the recommendations presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court. Based on its investigation entitled"What's Happening with the Historic Tustin Hangars?"the 2019-2020 Orange County Grand Jury makes the following two recommendations: R1. Given the altered conditions since the initial planning, the County of Orange should reevaluate its ability to provide additional value or benefit to county residents from its involvement with the redevelopment of Parcel 18 as a county regional park, and the Board of Supervisors should determine within 90-days of the release of this report whether to proceed with or withdraw from its PBC application. (F 1 thru F5.) R2. As the Local Reuse Authority, the City of Tustin should commence initial steps and planning with the Department of the Navy for incorporating Parcel 18 into its Economic Development Conveyance to meet the objectives of the Tustin Legacy Specific Plan. (F3 and F4.) 2019-2020 Orange County Grand Jury Page 15 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? RESPONSES The following excerpts from the California Penal Code provide the requirements for public agencies to respond to the findings and recommendations of this Grand Jury report: §933 "Comments and Reports on Grand Jury Recommendations." "(c)No later than 90 days after the grand jury submits a final report on the operations of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body and every elected county officer or agency head for which the grand jury has responsibility pursuant to Section 914.1 shall comment within 60 days to the presiding judge of the superior court, with an information copy sent to the board of supervisors, on the findings and recommendations pertaining to matters under the control of that county officer or agency head or any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall also comment on the findings and recommendations. All of these comments and reports shall forthwith be submitted to the presiding judge of the superior court who impaneled the grand jury. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices.... .. §933.05 "Response to Grand Jury Recommendations—Content Requirements; Personal Appearances by Responding Party; Grand Jury Report to Affected Agency." "(a)For purposes ofsubdivision (b) of Section 933, as to each grand jury finding, the responding person or entity shall indicate one of the following: (1) The respondent agrees with the finding. (2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefor. (b) For purposes of subdivision (b) of Section 933, as to each grand jury recommendation, the responding person or entity shall report one of the following actions: (1) The recommendation has been implemented, with a summary regarding the implemented action. (2) The recommendation has not yet been implemented, but will be implemented in the future, with a timeframe for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a timeframe for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This timeframe shall not exceed six months from the date ofpublication of the grand jury report. (4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation therefor. 2019-2020 Orange County Grand Jury Page 16 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? (c) However, if a finding or recommendation of the Grand Jury addresses budgetary or personnel matters of a county agency or department headed by an elected officer, both the agency or department head and the board ofsupervisors shall respond if requested by the grand jury, but the response ofthe board ofsupervisors shall address only those budgetary or personnel matters over which it has some decision-making authority. The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency or department." Responses Required Comments to the Presiding Judge of the Superior Court in compliance with California Penal Code Section 933.5 are required from: Findings County of Orange F 1, F2, F3, F4, F5 City of Tustin F3, F4 Recommendations County of Orange R1 City of Tustin R2 2019-2020 Orange County Grand Jury Page 17 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? REFERENCES County of Orange 1. Orange County Original Concepts for Park https://www.ocparks.com/civicax/filebank/blobdload.aspx?BloblD=21919 2. Orange County Parks Website—Regional Park at Former MCAS Tustin http://www.ocparks.com/about/proj ects/tbh City of Tustin 3. EDC/LIFOC (Between USA and City of Tustin) and Memorandum of Agreement Among the Department of the Navy the California State Historic Preservation Officer and the Advisory Council on Historic Preservation for the Disposal and Reuse of Marine Corps Air Station Tustin Orange County California. hLtps://www.tustinca.org/DocumentCenter/View/l 162/Navy-City-Economic- Development-Conveyance-Compressed-PDF?bidId= 4. Photo Essay: Marine Corp Air Station&North Hangar, Tustin—Closed. May 30, 2013 https://www.avoi dingregret.com/2013/05/photo-essay-marine-corp-air-stati on.html 5. Tustin Legacy Specific Plan https://www.tustinca.org/DocumentCenter/View/635/Tustin-Legacy-Specific-Plan-PDF 6. The Tustin Hangars Titans of History hLtp://www.militqamuseum.org/NAS-Santa-Ana-Histoly.pdf 7. Tustin Capital Improvement Program Fiscal Year 2019-2020 hM2s://www.tustinca.org/DocumentCenter/View/2458/Capital-Improvement-Pro rg am- Fiscal-Year-2019-Through-2020-PDF 8. Tustin South Hangar Rental www.tustinca.org/766/Renting 9. Historic Preservation Video/DVD to emphasize Lighter-than-air operations hgps://www.tustinca.org/765/Tustin-Hangars Department of Navy 10. Navy RAB meeting minutes 2018 2019-2020 Orange County Grand Jury Page 18 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? https://www.bracpmo.navy.mil/content/dam/bracpmo/califomia/former marine_corps ai r station tustin/pdfs/meetings/2018rab/20181011 Tustin RAB Meeting Summary_pdf 11. Federal Register https://www.govinfo.gov/content/pkg/FR-2001-03-02/html/01-5127.htm 12. Ground Contaminations Plumes 2015 hlt2s://ca-tustin.civicplus.com/DocumentCenter/View/I 149/Carve-Out-Areas-and- Groundwater-Plumes-PDF National Park Services 13. Public Benefit Conveyance—Historic Monument Application (Blank) http://fi les.cityofportsmouth.com/fi les/mcinlyreproj ect/Historic%20Monument%20APpli cation%20(May%202016).pdf 14. Requirements for Public Benefit Conveyance through National Parks Service a. Public Parks and Recreational Areas: Title 40 U.S.C. 550 (e) ... recommended by the Secretary of the Interior as being needed for use as a public park or recreation area. Deeds conveying any surplus real property disposed of under this authority shall provide that the property shall be used and maintained for the purpose for which it was conveyed in perpetuity... b. Historic Monuments: Title 40 U.S.C. 550(h) ...authorized by Secretary of the Interior as suitable and desirable for use as a historic monument for the benefit of the public...in conformity with the recommendation of the National Park Advisory Board established under section 3 of the Act of Congress approved August 21, 1935 (16 U.S.C. 463) and only so much of any such property shall be so determined to be...necessary for the preservation and proper observation of its historic features. Property conveyed for historic monument purposes may... be used for revenue producing activities to support the historic monument. Deeds conveying...property under this authority shall be used and maintained for the purposes for which it was conveyed in perpetuity... Historic Preservation 15. MOA Stipulations required by Federal Advisory Council on Historic Preservation and California Office of Historic Preservation. i. Stipulation IA.Navy has submitted HABS report to required parties. Report HABS No. CA-2707 is on file with the Library of Congress. ii. Stipulation IB.Navy has provided all available plans/drawings etc. for all facilities on site to local curation facility and to Tustin. 2019-2020 Orange County Grand Jury Page 19 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? iii. Stipulation IL After both Orange County and City of Tustin conducted comprehensive marketing efforts, no viable adaptive re-use of the hangars could be substantiated,therefor Stipulation III was required. iv. Stipulation III. Parties were required to provide three things: 1. A written history of the LTA base. (See"Tustin Hangars, Titans of History")11 2. Interpretive Video/DVD to emphasize the Lighter-than-air operations. City of Tustin hosted a one-time distribution and outreach program for the documentary video on September 1, 2009. Copies are available from the Cityla 3. Interpretative Exhibit. On display at Tustin City Hall. Based on fulfillment of all required stipulations in the MOA,the Navy in a letter to both Federal and State Historic Preservation Agencies has determined that the MOA is no longer in effect with respect to historic preservation. (Letter dated November 3, 2009) 11 See Reference#6—Titans of History 12 See Reference#9—Historic Preservation Video/DVD 2019-2020 Orange County Grand Jury Page 20 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? GLOSSARY BoS Board of Supervisors BRAC Base Realignment and Closure COC Chemicals of Concern CRUP Covenants to Restrict Use of the Property DoN Department of the Navy DTSC California Department of Toxic Substances Control EDC Economic Development Conveyance FOST Finding of Suitability to Transfer HABS Historic American Buildings Survey LIFOC Lease in Furtherance of Conveyance LRA Local Reuse Authority MCAS Marine Corps Air Station MOA Memorandum of Agreement NPS National Parks Service PBC Public Benefit Conveyance PFAS Per- and polyfluoroalkyl substances PFOS Perfluorooctanesulfonic acid POU Program of Utilization RAB Restoration Advisory Board 1,2,3-TCP Trichloropropane 2019-2020 Orange County Grand Jury Page 21 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? APPENDIX MCAS Tustin Hangar Timeline Overview The following timeline is a simplified, abbreviated list of events or occurrences shown in chronological order. We include it, hoping that for some, a quick look at the actions by the various players involved over time will aid in understanding how we got from the time of the base closure to where we are now. County of Orange Orange City of Tustin Green Department of Navy Blue National Parks Service Purple 1991 Closure announced,Marine Corps Air Station (MCAS) Tustin. City of Tustin named as the Local Reuse Authority(LRA).13 April 18, 1994 Department of Interior National Parks Service(NPS): Letter from NPS to Navy indicating an application by Orange County for an urban regional park on the 85-acre site.It requires the county to submit a detailed general development plan and implementation schedule for the park.It may be as a historic monument transfer Title 40 U.S.C. §550(h) or a park and recreation transfer Title 40 U.S.C. §550(e). 1995 The county reveals concept for a regional park. OC Parks PowerPoint"Regional Park at former MCAS, Tustin. 1996/98 Reuse Plan for MCAS Tustin approved by city of Tustin in 1996,amended in 1998. This later becomes the Tustin Legacy Specific Plan. Ordinance 1482 07-18-17,Adopted October 31, 1996, Amended September 8, 1998 1999 Tustin applies to the Navy for a no-cost Economic Development Conveyance(EDC)for 75%of MCAS. 1999 13 See References#I I —Federal Register 2019-2020 Orange County Grand Jury Page 22 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? Base formally closes in July.Environmental documents, deeds and leases are prepared for conveyance 1999-2002.Base closes July 2, 1999. Source: Federal Register Volume 66, Number 42 (Friday, March 2, 2001).14 May 10,2002 City of Tustin receives 75%of WAS through an EDC via fee or lease.25%goes to public or nonprofit entities. Source: Agreement Between the United States of America and city of Tustin, California for the Conveyance of a Portion of the Former Marine Corps Air Station Tustin. Execution Version May 10,2002. 1999 Orange County received approval of a Public Benefit Conveyance (PBC) of Parcel 18 containing Hangar 28 and Bldg. 28A for an 84-acre Regional park through the National Parks Service. 2009 County and city indicate compliance with mitigation measures required by MOA. Hangars are still subject historic preservation standards until conveyed by the Navy. 2002-2012 South Hangar sits in"moth-balled"condition.No planned uses; slated for demolition. December 27',2011 Consultant's report"Concept Plan for Regional Park at MCAS Tustin"received by Orange County December 27,2011. 2012 January 12,BOS approved a Conceptual Plan for a park including Historic Hangar 28.Finance was directed to find a way to finance outside the General Fund. Estimated Cost 69 million dollars. Maintenance annually 1.7 million dollars of which 400k is for the hangar. February 28,2012 Board of Supervisors approved a Program of Utilization (POU) on February 28,2012.It was submitted to National Parks Service and was not approved. 2013 Tustin begins licensing South Hangar for civic and private events,filming, storage etc. October 1,2013 Feasibility Study by consultants to OC Parks. (Basic concepts;no details,no applications submitted.) October 2013 Hangar 1 roof collapse;December 24,2013 Navy awarded contract to stabilize the damaged hangar. February 2014 Navy begins Stabilization of Hangar. 14 See References#I I —Federal Register 2019-2020 Orange County Grand Jury Page 23 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? Apri17,2014 A revised consultant's proposal is submitted to OC for Re-Use Study of Hangar 1. April 17,2014 (OC Register Article) The hangar is being prepared to be conveyed from the Navy to the county. It's included in the county's plans for an 84.5-acre regional park,but following October's incident, county officials have expressed some reluctance to take on a potentially expensive repair project. "It's all up in the air, depending on the cost to fix it,"said a county supervisor. "I don't want that blimp hangar destroyed or taken down,but we really need to know realistically what it's going to cost to repair that hole." Apri124,2014 Parks communication to District Supervisor: OC Parks has immediately decided to delay finalization of the General Development Plan until concerns about integrity of the hangar and whether and at what cost the hangar roof could be repaired. Revised consultant's proposal(April 7,2014) is submitted to OC for Re-Use Study of Hangar 1. May 9,2014 County solicits consultant's assessment report. May 12,2014 County asks Navy for access to hangar 1 for consultant's assessment work. June 17, 12014 City of Tustin: following North Hangar collapse,Tustin retains consultant to perform an assessment and reuse study for South Hangar. December 2016 County gets consultants to provide conceptual drawings for a park with and without the hangar. "Development Concepts"PowerPoint presentation to Orange County dated December 2016 September 2017 Consultant's"Final Report—Tustin Hangar 2 Conditions Assessment and Reuse Study". Volume 1. Prepared for City of Tustin.Board of Supervisors Agenda Item 14, September 19,2017. Professional Services agreement with consultant to perform architectural and engineering design services related to Maintenance,repairs and voluntary upgrades of Hangar 2. September 9,2017 Tustin City Council approves purchase of a 185' boom lift to repair and maintain Hangar 2 on a regular basis.Agenda Report Item 14 September 19,2017. City also approves two phases I41,004,410.00,phase II 5 million appropriation for FY 17-18 from land sale proceeds for maintenance,repair and upgrade of Hangar 2. October 17,2017 OC Board of Supervisors has closed session with the Department of the Navy and city of Tustin. December 11,2017 2019-2020 Orange County Grand Jury Page 24 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? Navy to Real Estate CEO—Request for meeting regarding Parcel 18 PBC.Navy anticipates FOST will be ready for review early summer 2018. If county contemplates a change beyond existing PBC,talk to NPS as soon as possible. County has not been able to attend meetings to discuss a way forward. February 21,2018 County acknowledges receipt of letter referenced above. Is glad to coordinate and refers to contact person. March 8,2018 Orange County RE CEO team met with Navy BRAC team to discuss transfer of Parcel 18. March 27,2018 Navy to Orange County Real Estate CEO—We are ready to convey Parcel 18 to National Parks Service by September of 2018. Conveyance to Tustin is desirable for any scenarios beyond the original PBC. Navy is concerned that changes to the original conveyance mechanism will cause substantial delays in the transfer date.Any scenario that changes the reuse plan needs to be vetted with the LRA(Tustin).Both city and county recently informed us the two parties are not coordinated on this effort. "Absent a viable path forward,the Navy will re-engage National Parks Service and the city of Tustin to discuss and alternative conveyance approach to meet the objectives of the reuse plan". March 30,2018 Navy issues Draft FOST 10 setting out their findings of suitability to transfer. EPA defers to State (DTSC) for review of environmental issues. April 30,2018 County to Navy and NPS—No additional direction from BoS since the previously approved POU(2012). County states it is concerned about the condition of the North Hangar and ground contamination PFAS and PFOS. May 23,2018 Navy to Real Estate CEO Navy believes a reassessment of the financing plans for the 2013 POU is prudent. Suggest you talk to NPS and Tustin if there is not an approved plan in place.Also,the Navy provides the reports showing levels of PFAS and PFOS. August 4,2018 Orange County gets consultant to provide conceptual plans for a park with hangar. (No details and no attempts to gain the approval of NPS). September 11,2018 Real Estate CEO letter to BOS: earlier this year,Navy said it intended to issue a FOST in September of 2018. CEO states County has not been able to determine if revenue is there to make the proposals viable. They need to pursue the Historic Structure option to find greater economic opportunities. CEO asks BoS if they want to accept the property. 2018 Tustin City Council approves a Capital Improvement Program Budget that includes funding for South Hangar improvements. October 5,2018 2019-2020 Orange County Grand Jury Page 25 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? From Navy to DTSC and WQCB: Final semi-annual groundwater monitoring data summary. October,2018 RAB indicate DoN is continuing to monitor,test,clean groundwater plumes and will report their conclusions and recommendations in 2018 and 2019. November 30,2018 FINAL summery report for locations and levels of PFAS and PFOS on site. December 18,2018 OC Board of Supervisors has closed session with the Department of the Navy, City of Tustin and Mater Dei Development regarding Parcel 18. March 2019 PEERS lawsuit against Navy. August 1,2019 City of Tustin asks Navy to step up maintenance on Parcel 18. City has no right of entry (except in emergencies) and no personnel or budget to provide security services. August 2019 DTSC is unable to concur that a Carve Out property is suitable for transfer due to findings from HERO. August 15,2019 Orange County Real Estate office e-mails the Navy to request meeting about Historic Monument requirements of NPS with regard to the hangar structure. It wants to better understand the requirements to help put together a proposal that will be met with approval by NPS.No response from NPS. (See October 15,2019 entry below) August 30,2019 Navy to Tustin: we will step up maintenance and security on North Hangar site per your request. September 2019 Tustin City Council has consultant produce bid-ready documents for a power and lighting package, and a structural package in line with CIP budget. Includes: voluntary upgrades to Hangar No. 2. (Truss Repair, Hangar Doors,Power Distribution,Exterior Shell and Fire Life Safety/Disabled Access). October 8,2019 City of Tustin meets with OC Supervisor Yd District,regarding the 85-acre parcel and North Hangar. October 10,2019 RAB meeting at Tustin Senior Center. Ground contamination is being identified,classified and in some areas remediated by Navy contractors on an ongoing basis. DTSC has no timeline for establishing PFAS standards. October 14,2019 City of Tustin sends letter dated October 14,2019 to Orange County reaffirming Tustin's good faith commitment to work with the Navy on property acquisition and asking the county to decide whether they still have a commitment to a regional park or not. If their intentions have changed,they need to engage 2019-2020 Orange County Grand Jury Page 26 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB What's Happening with the Historic Tustin Hangars? the Navy and city of Tustin regarding their decision.Tustin cannot wait any longer.They need to start the process of planning changes to the Tustin Legacy development if necessary. 2020 Tustin plans to begin construction of South Hangar improvements. Tustin has plans to continue improvement and use of the South Hangar.They intend to continue to develop infrastructure adjacent to and around the hangar and make the South Hangar more publicly accessible on a more regular basis. 2019-2020 Orange County Grand Jury Page 27 DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB Office of the City Council • March 30, 2021 The Honorable Donald P. Wagner Supervisor, Third District County of Orange 333 W. Santa Ana Boulevard, 5`}`Floor Santa Ana, CA 92701 Dear Supervisor Wagner: Thank you for the County of Orange (County) presentation before the City of Tustin (City), acting as the Federally recognized Local Reuse Authority (LRA), at the February 23, 2021, virtual community forum for the former Marine Corps Air Station, Tustin, (MCAS Tustin), closed and available for disposal in accordance with the Defense Base Closure and Realignment Act of 1990, as amended (Base Closure Act). The LRA appreciated the opportunity to discuss progress with the several public agencies designated as property recipients at the former MCAS Tustin. The forum was an opportunity to present to the general public the various ongoing projects and endeavors at the former MCAS Tustin, including the County's successful development and operation of the Tustin Family Campus and the Orange County Animal Care Facility. While the LRA applauds the County for its successes on those projects,the LRA was particularly concerned with the testimony from Thomas Miller, the County's Chief Real Estate Officer, describing the County's current status on meeting its commitments to acquire, develop, and operate Parcel 18 as a Regional Park in accordance with the County's Public Benefit Conveyance (PBC) Application to the Department of Interior's National Park Service (NPS) that was submitted in 1995. The County's presentation and testimony to the LRA regarding Parcel 18 raised concerns and questions that fall into two specific categories: 1. County's Plans to Acquire, Develop and Operate Parcel 18: Pursuant to the Base Closure Act, the LRA conducted a reuse planning process that led to the LRA's adoption in 1996 of the MCAS Tustin Reuse Plan, reviewed and approved by the United States Department of Housing and Urban Development (HUD), and utilized by the Department of the Navy (Navy)in its on-going MCAS Tustin disposal process. As part of the LRA's reuse planning process, the County: Mayor Letitia Clark • Mayor Pro Tem Austin Lumbard • Barry W.Cooper • Ryan Gallagher • Rebecca"Beckie"Gomez 300 Centennial Way • Tustin,California 92780 • www.tustinca.org DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB The Honorable Donald P. Wagner March 30, 2021 Page 2 - Sought to acquire Parcel 18 to create and operate a Regional Park - Submitted a NPS PBC Application (County PBC Application) in 1995 that was reviewed and approved by the NPS, that identified the County funding mechanism intended to address the costs of creating and operating the proposed Regional Park, and that was incorporated by the LRA in the final HUD-approved MCAS Tustin Reuse Plan. In 2012, seventeen (17) years after the NPS approval of the County PBC Application, the County proposed an alternate County Program of Utilization(POLI)that proposed changes to the NPS-approved County PBC Application by seeking additional and more expansive revenue-generating activities onto Parcel 18 to subsidize the costs of creating and operating the proposed Regional Park. However, the proposed alternate POU was never approved by the NPS,leaving in place only the original NPS-approved County PBC Application for a Regional Park on Parcel 18. The LRA understands that in the ensuing years, the County has faced development challenges including the partial collapse of the north hangar, a global pandemic, the Great Recession, and recent discoveries of emerging contaminants such as PFOS/PFAS on the former MCAS Tustin. All of these events give rise to questions concerning the future of Parcel 18, as follows: - Since the 2012 proposed alternate POU that was submitted to NPS was not approved, is the County prepared to implement its original NPS-approved PBC Application for a Parcel 18 Regional Park as it is incorporated into the MCAS Tustin Reuse Plan, and do so within the next 1-3 years? - Is the County prepared to budget, fund, and dedicate County resources to make the Parcel 18 Regional Park a reality in accordance with the County's approved PBC Application within the next 1-3 years? - Are on-site commercial-revenue-generating activities (that have not been approved) necessary for the County to develop and operate the Parcel 18 Regional Park and/or to preserve the north hangar? - Since the NPS does not permit commercial-revenue-generating activities as part of the PBC,what are the County's plans to develop and operate the Parcel 18 Regional Park and preserve the north hangar? - At the LRA meeting, the County introduced for the first time a different, unvetted proposal for the Regional Park by introducing the concept of a"Phased, Passive Park." If the County desires to amend its PBC Application to seek approval by the NPS for a"Phased, Passive Park" in lieu of the Parcel 18 Regional Park, and should the LRA support it, how will the County fund this concept and either the(i)restoration, operation and maintenance, or(ii)demolition of, the north hangar? DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB The Honorable Donald P. Wagner March 30, 2021 Page 3 - If the County desires to amend its PBC Application to seek approval by the NPS and proceed with a"Phased, Passive Park"in lieu of the Parcel 18 Regional Park, and should the LRA support it, when will the County hold public workshops to present the plan to the community as it did with the Regional Park concept in 2013? 2. County's Short-Term Plans for Parcel 18: During the last several years, there have been numerous instances of trespassing, criminal conduct and other illicit activities taking place at Parcel 18 requiring an independent and significant City resource response. This has been documented through several letters to the County from the City and was discussed in the recent Orange County Grand Jury report, "What's Happening with the Historic Tustin Hangars?" Several times during the County's presentation to the LRA, the County suggested that the County could not proceed with a Lease in Furtherance of Conveyance (LIFOC) from the Navy in the absence of a revised POLI that permitted on-site revenue-generating activities sufficient to support the restoration, operation, maintenance and securing of Parcel 18 and north hangar. However, the LRA would reiterate to the County that a LIFOC could be secured if the County were willing to implement and fund its NPS-approved PBC Application. Even if the County were to seek changes to its PBC Application and POLI, it would still be feasible for the County to obtain a short-term interim lease (Interim Lease) from the Navy in order to secure and maintain Parcel 18 while these issues were addressed while also providing appropriate performance milestones to ensure County progress. Such an effort (either LIFOC or Interim Lease) would be consistent with what all other designated property recipients at the former MCAS Tustin have committed to while awaiting final fee conveyance from the Navy. Accordingly, the LRA requests the County please address the following: - Is the County willing to accept, without further delay, a LIFOC and assume site control of Parcel 18 from the Navy in order to safely secure and maintain the property while it proceeds to develop a Regional Park under its NPS-approved PBC Application? - Or is the County willing to accept, without further delay, an Interim Lease with specific performance milestones and assume site control of Parcel 18 from the Navy in order to safely secure and maintain the property to demonstrate its commitment to construct a passive park, while it seeks to amend its approved NPS PBC Application? On behalf of the City and the greater Tustin community, the LRA continues to stress the importance of committing to the maintenance and security by designated property recipients of all property at former MCAS Tustin. If the County is not willing to assume site control under a LIFOC or Interim Lease (and thereby fails to demonstrate its commitment to develop the Regional Park), the LRA will be prepared to evaluate all courses of action available and necessary to ensure that Parcel 18 is maintained, secured, and advanced in a timely manner. DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB The Honorable Donald P. Wagner March 30, 2021 Page 4 The City, acting as the LRA, requests written responses from County representatives to the questions in this letter within thirty (30) days of receipt. Responses will be added to the LRA record, and will be considered by the LRA in determining the need for additional LRA Public Forum(s) focused on Parcel 18. Sincerely, P Letitia Clark Mayor cc: Tustin City Council Matthew S. West, City Manager Nicole Bernard, Assistant City Manager David E. Kendig, City Attorney George Schlossberg, Kutak Rock Christopher Koster, Director of Economic Development Frank Kim, County CEO Thomas Miller, County Chief Real Estate Officer David Siegenthaler, National Parks Service Laura Duchnak, Department of the Navy Charles Perry, Department of the Navy Alexander Bethke, Department of the Navy Amy Jo Hill, Department of the Navy Elizabeth Larson, Department of the Navy Kyle Olewnik, Department of the Navy DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB RESOLUTION NO. 21-01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE FEDERALLY DESIGNATED LOCAL REUSE AUTHORITY FOR FORMER MARINE CORPS AIR STATION TUSTIN REVISING THE EXISTING REUSE PLAN FOR FORMER MCAS TUSTIN TO EXCLUDE THE COUNTY OF ORANGE REGIONAL PARK FROM REUSE PARCEL 18 WHEREAS, former Marine Corps Air Station (MCAS) Tustin was designated for realignment and closure in 1991 by the Defense Base Closure and Realignment Commission, and confirmed for realignment and closure by the Department of Defense in 1993, pursuant to and in accordance with the Defense Base Closure and Realignment Act of 1990, as amended; and WHEREAS, prior to the closure and disposal of military installations, the Office of Local Defense Community Cooperation (OLDCC) within the Department of Defense (DOD), formerly known as the Office of Economic Adjustment (OEA), recognizes a local governmental entity to be the Local Reuse Authority (LRA) to prepare a Reuse Plan for closed or realigned military installations; and WHEREAS, in 1992, the City of Tustin (City) was designated as the LRA for former MCAS Tustin by OEA (now OLDCC) to prepare a Reuse Plan for former MCAS Tustin in order to facilitate the closure and disposal of MCAS Tustin and its reuse in furtherance of the economic development of the City and surrounding region; the City was re-confirmed as the LRA in 1994; and WHEREAS, during the LRA Reuse Planning process, the County of Orange (County) sought to acquire former MCAS Tustin Reuse Parcel 18 to create and operate a Regional Park through a Public Benefit Conveyance (PBC); and WHEREAS, the City considered and supported the County PBC application through Resolution 94-20, and the LRA included a County Regional Park in Parcel 18 in the formal MCAS Tustin Reuse Plan submitted by the LRA to the United States Department of Housing and urban Development for review and approval, which Reuse Plan was subsequently approved; and WHEREAS, in 1995, and in accordance with the MCAS Tustin Reuse Plan, the County submitted a PBC application to acquire Parcel 18 to the Department of the Interior (DOI) that identified the County's proposed plan for a Regional Park, and the funding mechanism intended to address the costs of creating and operating the proposed Regional Park which was approved by DOI; and DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB WHEREAS, in October 1996, the City approved the MCAS Tustin Specific Plan/Reuse Plan after numerous meetings and community input which incorporated the County Regional Park PBC on Reuse Parcel 18; and WHEREAS, former MCAS Tustin officially closed in 1999; and WHEREAS, in 2012, the County submitted to the DOI an alternative Program of Utilization (POU) that proposed changes to the previously approved PBC application by seeking additional and more expansive revenue-generating activities which has never been approved by DOI; and WHEREAS, in 2013, the North Hangar (Hangar 1) on Reuse Parcel 18 experienced a partial roof collapse requiring stabilization by the Department of the Navy (Navy); and WHEREAS, since 2013, buildings and improvements on Reuse Parcel 18 have experienced rapid physical deterioration due to a lack of maintenance and security; and WHEREAS, due to the deterioration of Reuse Parcel 18, the City has been forced to expend resources at its own cost and without reimbursement, to respond to safety concerns involving trespassing, vagrancy, vandalism, and other illicit activities; and WHEREAS, the Orange County Grand Jury issued a report entitled "What's Happening with the Historic Tustin Hangars?" dated June 9, 2020 outlining the issues with Reuse Parcel 18; and WHEREAS, the County has refused to accept a license, interim lease, or Lease in Furtherance of Conveyance (LIFOC) to maintain and secure Reuse Parcel 18 as the intended property recipient; and WHEREAS, the County has demonstrated no progress on advancing planning and financing of the proposed Regional Park in accordance with the County's PBC Application; and WHEREAS; on February 23, 2021 , the LRA held a public meeting inviting all property recipients at former MCAS Tustin to give updates on development progress; and WHEREAS, at the February 23, 2021 meeting, the County indicated an unwillingness to take an interim license, interim lease, or LIFOC to secure and maintain Reuse Parcel 18, and also indicated there is no current timeline, plan, or approved budget for when or how the County proposed Regional Park would be constructed; and WHEREAS, on March 30, 2021 , the LRA sent a letter to the County requesting additional information based on the February 23, 2021 meeting and requested written responses within thirty (30) days; and DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB WHEREAS, as of July 27, 2021 , no response to the LRA's March 30 letter from the County has been received; and WHEREAS, the LRA held an additional meeting on August 11 , 2021 where it considered the current state of reuse for Reuse Parcel 18; and WHEREAS, the LRA has determined that action be initiated to (i) remove the County Regional Park from the MCAS Tustin Reuse Plan, and (ii) consider, review, and analyze other appropriate alternative uses that may include public park components amongst other land uses for Reuse Parcel 18. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TUSTIN ACTING AS THE LOCAL REUSE AUTHORITY FOR FORMER MARINE CORPS AIR STATION TUSTIN, THAT: 1 . The foregoing recitals are hereby incorporated and adopted as the findings of the City Council acting as the LRA; and 2. The MCAS Tustin Reuse Plan is hereby revised to exclude the County Regional Park from Reuse Parcel 18; and 3. The LRA will inform the Navy and DOI of the actions taken and the reasons such actions were taken, and request Federal revocation of the County Regional Park PBC for Reuse Parcel 18; and 4. The LRA will work with the Navy to amend the existing City license or seek an interim lease for Reuse Parcel 18 to ensure the maintenance and security of Parcel 18. 5. The LRA will commence a Reuse Planning process to consider, review, and analyze appropriate alternative uses that may include public park components amongst other land uses for Reuse Parcel 18. PASSED and ADOPTED by the City Council of the City of Tustin at a special meeting on the 11th day of August, 2021 . LETITIA CLARK, Mayor ATTEST: ERICA N. YASUDA, DocuSign Envelope ID:6D42E48A-1249-45A7-9214-56268E4097AB 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 21-01 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 11th day of August, 2021 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk