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HomeMy WebLinkAbout06 RESOLUTION DECLARING APNS EXEMPT FROM THE REVISED SURPLUS LAND ACTDocuSign Envelope ID: 9DA9CB68-E8ED-4F5C-AC51-C855C4549BA2 G1zY �� AGENDA REPORT MEETING DATE TO FROM OCTOBER 19, 2021 MATTHEW S. WEST, CITY MANAGER ECONOMIC DEVELOPMENT DEPARTMENT Agenda Item 6 Reviewed: DS City Manager Finance Director N/A SUBJECT: RESOLUTION DECLARING ASSESSORS PARCEL NUMBERS 434-431-13, 14, 15, 26, 27, 28 AND 434-441-23 EXEMPT FROM THE REVISED SURPLUS LAND ACT SUMMARY Resolution 21-88 will declare Assessors Parcel Numbers (APN) 434-431-13, 14, 15, 26, 27, 28 and 434-441-23 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 21-88: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY COMPRISED OF ASSESSORS PARCEL NUMBERS 434-431-13, 14, 15, 26, 27, 28 AND 434-441-23 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 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 a government use. The SLA set general timelines for posting notification of an available DocuSign Envelope ID:9DA9CB68-E8ED-4F5C-AC51-C855C4549BA2 Agenda Report— Exempt Surplus Property Declaration October 19, 2021 Page 2 surplus property, defined the process for negotiating with an affordable housing developer in the event one (or more) expressed interest, and the process for disposition absent any notification of interest or in the event negotiations do not result in a sale or lease 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, including property subject to agreements that were entered into prior to September 30, 2019. The City and Vestar/Kimco Tustin LP (Vestar) entered into an Exclusive Negotiating Agreement (ENA) in July 2003, and a Disposition and Development Agreement (DDA) in July 2004 (as subsequently amended), for a retail commercial project, The District at Tustin Legacy (The District). Several portions of property for The District parking were leased to the City through a Lease in Furtherance of Conveyance (LIFOC) from the Department of the Navy (Navy), which were then subleased to Vestar. Over time, the Navy has transferred these portions of LIFOC property within The District to the City, which were subsequently transferred to Vestar pursuant to the terms of the DDA. The LIFOC is part of the City's Economic Development Conveyance (EDC) Agreement for all of former MCAS Tustin that was executed in 2002, which governs how the City is to accept and develop the former military base. The EDC and LIFOC anticipated that the subject APNs would be conveyed from the Navy to City (and subsequently to Vestar) by September 2006. The Navy has conveyed the final LIFOC property comprised of the subject APNs at The District to the City via Quitclaim Deed recorded on September 28, 2021 . Pursuant to the terms of the DDA, the City will subsequently convey this site to Vestar once the City Council has adopted Resolution 21-88 to ensure compliance with the SLA. Conveyance to Vestar is expected to occur before the end of calendar year 2021 . DISCUSSION Resolution 21-88 states the findings and declares APN 434-431-13, 14, 15, 26, 27, 28 and 434-441-23 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 conveyance occurs before December 31, 2022. DocuSign Envelope ID:9DA9CB68-E8ED-4F5C-AC51-C855C4549BA2 Agenda Report— Exempt Surplus Property Declaration October 19, 2021 Page 3 DocuSigned by: DocuSigned by: (,G visfap(�c v 6sf, K P; Christopher Koster Kennet 'guee Director of Economic Development Senior Management Analyst ATTACHMENTS - Resolution 21-88 - Property depiction DocuSign Envelope ID:9DA9CB68-E8ED-4F5C-AC51-C855C4549BA2 RESOLUTION NO. 21-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY COMPRISED OF ASSESSORS PARCEL NUMBERS 434-431-13, 14, 15, 26, 27, 28 AND 434-441-23 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 4.74 acres (Site) at Tustin Legacy (former Marine Corps Air Station Tustin) comprised of APN 434-431-13, 14, 15, 26, 27, 28 and 434-441-23; and 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, approximately 177 additional 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, market conditions, and community benefits prior to initiating a disposition process for certain parcels; and DocuSign Envelope ID:9DA9CB68-E8ED-4F5C-AC51-C855C4549BA2 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 3,857 residential units (ownership and rental) completed or under construction 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 July 2003 and a Disposition and Development Agreement (DDA) that was executed in July 2004, and the City plans to dispose of the Site pursuant to the requirements of the ENA and DDA; and WHEREAS, the Surplus Land Act (SLA) establishes procedures 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 requires 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 and the DDA were 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 434-431-13, 14, 15, 26, 27, 28 and 434-441-23 is hereby declared surplus land that is exempt from the revised Surplus Land Act. PASSED and ADOPTED by the City Council of the City of Tustin at a regular meeting on 19th day of October, 2021 . DocuSign Envelope ID:9DA9CB68-E8ED-4F5C-AC51-C855C4549BA2 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 21-88 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day of October, 2021 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk i r Barrar�sa_Parkuvay� "