HomeMy WebLinkAboutRDA 01 FIVE-YR IMPLEMENTATION PLAN 06-19-06AGENDA REPORT
MEETING DATE: JUNE 19, 2006
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: REDEVELOPMENT AGENCY STAFF
SUBJECT: MIDTERM REVIEW AND PUBLIC HEARING ON INITIAL FIVE-YEAR
IMPLEMENTATION PLAN FOR MCAS TUSTIN REDEVELOPMENT PLAN
SUMMARY:
California Health & Safety Code Section 33000 et. seq. (California Redevelopment law (the "CRl"))
requires a public hearing at least once during the five-year term of the Agency's Five-Year
Implementation Plan to review the Agency's progress in meeting its defined goals and objectives.
RECOMMENDATION:
It is recommended that the Agency:
1. Open Public Hearing and request a summary staff report from staff on the Agency's Implementation
Plan.
2. Receive public testimony.
3. Close hearing.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND/DISCUSSION:
In April 2003, the Agency received and approved the Report to the City Council for the MCAS Tustin
Redevelopment Plan, which included the initial Five-Year Implementation Plan for the Project Area for
fiscal years 2003-2004 through 2007-2008, In June, 2003 the City of Tustin and Tustin Community
Redevelopment Agency adopted the MCAS Redevelopment Plan. As part of the adoption process, the
City Council approved the Report to City Council including the initial Implementation Plan. The
Implementation Plan addressed general non-housing redevelopment activities and a five-year plan for
housing activities. In accordance with State law the initial Implementation Plan set forth the Agency's
specific goals objectives for the Project Area, the Agency's strategy to achieve these goals, anticipated
projects and expenditures. It also included a description of how goals, objectives and anticipated
project expenditure would eliminate blight. The Plan also described the statutory requirements for the
housing set-aside fund and anticipated expenditures of these funds. The intent of the Plan was not to
restrict the Agency's activities
William A. Huston
Midterm Review of MCAS Tustin Implementation Plan
June 19, 2002
Page 2
since conditions, values, expectations, resources and needs may change over time. Rather, the
Plan was intended to outline expectations of the Agency for the five year period (FY 2003-04
through FY 2007-08).
The CRL requires that the Agency conduct a mid-term public hearing to review and hear public
testimony from all interested parties at least once during the five-year period of the Five-Year
Implementation Plan. To comply with this requirement, staff has undertaken a review of the initial
Five-Year Implementation Plan and has evaluated the Agency's progress toward implementing
the redevelopment activities and the affordable housing activities. The review includes how the
programs, projects and expenditure of funds identified in the Plan serve to eliminate blight in each
redevelopment project area. Attached hereto is a Mid-Term Report on the progress of the Tustin
Community Redevelopment Agency since adoption of the initial Five-Year Implementation Plan
for the MCAS Tustin Redevelopment Plan, and the excerpted initial Implementation Plan portion
of the Report to the City Council.
This public hearing was duly noticed pursuant to the requirements of Section 6063 of the
Government Code as required by Section 33490(d) of the Health and Safety Code.
Staff will be available to answer any questions the Agency may have regarding the attached
report.
Christine A. Shingleton
Assistant City Manager
RDA Agenda Report 6.19.06 MCAS Midlenn Report.doc
Attachments:
Midterm Review and Public Hearing on Second Five Year Implementation Plan
Attachment A: Initial Five-Year Implementation Plan (2003-2004 to 2007-2008)
MIDTERM REVIEW AND PUBLIC HEARING ON
INITIAL FIVE-YEAR IMPLEMENTATION PLAN
for the
MCAS TUSTIN REDEVELOPMENT PROJECT
M
Prepared by the
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
MIDTERM REVIEW AND PUBLIC HEARING ON
INITIAL FIVE-YEAR IMPLEMENTATION PLAN
for the
MCAS TUSTIN REDEVELOPMENT PROJECT
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
I. INTRODUCTION
In April, 2003, the Tustin Community Redevelopment Agency (the "Agency") approved a
Report to the City Council (the "City") for the MCAS-Tustin Redevelopment Project ("Report")
and authorized its transmittal to the Tustin City Council. In June, 2003 the City and Agency
held a joint public hearing to consider the Report to the City Council and the Redevelopment
Plan and introduced Ordinance No. 1276 to approve and adopt the Redevelopment Plan for
the MCAS-Tustin Redevelopment Project. After a second hearing on June 16, 2003,
Ordinance No. 1276 was adopted. The Report to the City Council was prepared in
accordance with Section VI. of Chapter 4, Article 16.5, Section 33490 of the California
Community Redevelopment Law ("Redevelopment Law") providing an initial Five-Year
Implementation Plan for the MCAS-Tustin Redevelopment Project. The Implementation Plan
set forth specific goals and objectives for the Project, anticipated programs, projects and
expenditures for a five-year period (Fiscal Years 2003-2004 through 2007-2008), and
describes how these programs, projects, and expenditures will eliminate blight in the
Redevelopment Project Area. The Implementation Plan also summarizes the Agency's
housing activities, identifying programs, projects and expenditures directed towards increasing,
improving and preserving the community's supply of low and moderate-income housing. The
initial Five-Year Implementation Plan (Section VI of the Report to the City Council) is attached
as Attachment A.
Section 33490 (c) of Redevelopment Law requires redevelopment agencies to conduct a
public hearing to review and hear testimony from all interested parties at least once during the
five-year term of an Implementation Plan. The purpose of the mid-term public hearing is to
review the Redevelopment Plan and the corresponding Implementation Plan and hear public
testimony of all interested parties within the jurisdiction for the purpose of reviewing and
evaluating the progress of the redevelopment project. The mid-term public hearing must take
place no earlier than two years and no later than three years following the adoption of the
Implementation Plan.
The Implementation Plan separately addresses non-housing redevelopment implementation
activities and housing implementation activities as provided for under the law. This is largely
because the legal requirements for implementation plans and restrictions on the expenditure
of related revenues are significantly different for the two types of activities. As with the initial
Implementation Plan, this mid-term report will separately address the redevelopment
implementation activities and the Agency's housing responsibilities, including its low and
moderate-income housing implementation activities in the Project Area. In addition, revisions
to Redevelopment Law since the adoption of the initial Five-Year Implementation Plan, if any,
will be identified and addressed in this mid-term report.
II. REDEVELOPMENT IMPLEMENTATION ACTIVITIES
This section provides a review of the Agency's non-housing implementation activities,
including actual and estimated expenditures, programs, specific projects, and an explanation
as to how the goals, objectives, programs and expenditures will eliminate blight within the
Project Area.
PROJECT AREA GOALS AND OBJECTIVES
Major goals and objectives for the Project Area described in the Redevelopment Plan and
initial Implementation Plan are as follows:
1. The elimination of blighting influences and the correction of environmental deficiencies in
the Project Area, including, among others, (i) buildings in which it is unsafe or unhealthy for
persons to live or work, buildings on land that, when subdivided or when infrastructure is
installed, would not comply with community subdivision, zoning or planning regulations and
buildings that, when built, did not conform to the then-effective building, plumbing,
mechanical, or electrical codes adopted by the applicable jurisdiction; (ii) factors that
prevent or substantially hinder the economically viable reuse or capacity of buildings or
areas; (iii) adjacent or nearby incompatible and uneconomic land uses; (iv) properties
currently served by infrastructure that do not meet the existing adopted utility or community
infrastructure standards; (v) land containing materials or facilities that will have to be
removed to allow for development such as runways and landing pads; and, (vi) properties
containing hazardous wastes.
2. The assembly of land into parcels suitable for modern, integrated development with
improved pedestrian and vehicular circulation in the Project Area.
3. The re-planning, redesign, reuse and redevelopment of portions of the Project Area which
are stagnant or improperly utilized.
4. The provision of opportunities for participation by owners and tenants in the revitalization of
their properties.
5. The strengthening of the economic base of the Project Area by stimulating new investment
and economic growth.
6. The creation of employment opportunities.
7. The provision of an environment for social and economic growth.
8. The expansion, preservation, and improvement of the community's supply of housing
available to low- and moderate-income persons and families.
Tustin Redevelopment Agency 6/13/2006
2
HOUSING PROGRAM FINANCIAL RESOURCES
The Agency's implementation activities were based on the availability of funding from existing
fund balances, bond proceeds and estimated future tax increment revenues not previously
committed to existing financial obligations. While it was indicated that Implementation Plan
goals and objectives, programs, specific projects and expenditures could assist in eliminating
blight within the Project Areas, private sector investment will additionally contribute to the
removal of blight.
In the initial years of the Project implementation period, the Report to the City Council for the
Redevelopment Plan identified that substantial infrastructure and administrative support costs
will be required. The Report identified that tax increment revenues generated from the Project
Area would not be sufficient during the initial years to cover the anticipated costs. The Report
also identified that while the feasibility analysis for the Project Area assumed the use of tax
increment revenues to finance the anticipated redevelopment programs over the 30-year life of
the Project, other potential revenue sources legally available to the Agency may be used.
These additional resources included tax allocation bonds proceeds, loan proceeds, land sale
proceeds, Mello Roos or other special assessment district financing, and developer
infrastructure fee payments.
To date, a combination of tax increment revenues, loan proceeds, federal grants, land sale
proceeds, community facility district financing (CFD), and developer infrastructure fee
payments have been used to fund the implementation activities in the Project Area. This
combination of resources may be expanded in future years depending on the needs and
timing of the Project Area implementing activities.
Net tax increment revenues available to fund the non-housing programs, projects and
expenditures of the Agency were identified as estimates in Exhibit 15 of the initial Five-Year
Implementation Plan. Net tax increment revenues are projections after housing set-aside
deposits, County administrative fees, and statutory pass-through to other taxing agencies. A
mid-term review of the actual net tax increment revenues available to-date and estimate of the
revised revenues through the end of the five-year planning period is provided in the table
below.
Revised Net Tax Increment Revenue Projections
Fiscal Year Revenues
Beginning Fund Balance
July 1, 2003 $ 0
FY 03-04 (actual) $ 0
FY 04-05 (actual) $ 2,419,830'
FY 05-06 (est.) $ 2,148,930
FY 06-07 (est.) $ 6,845,970
FY 07-08 (est.) ~ 9,918,290
TOTALS: $21,333,020
Note: Actual revenue figures (net of housing set-aside deposits) as confirmed by Tustin Finance Department;
Tustin Redevelopment Agency 6/13/2006
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FY 04-05 revenues include deposit of FY 03-04 Supplemental Tax Roll thus higher than estimated FY 05-06.
Estimated revenues revised per David Taussig Associates April 2006 Tustin Legacy Fiscal Impact Analysis.
The beginning fund balance reflects the Redevelopment Plan adoption date of June 16, 2003.
The actual tax increment revenue for FY 2004-2005 is higher than projected in the initial Five-
Year Implementation Plan reflecting the deposit of FY 2003-2004 supplemental taxes and an
acceleration of property dispositions and higher values in real estate sales activity. The
estimated revenues have been revised to reflect increases in the annual revenues based on
revised property valuation and disposition assumptions. Thus the estimated Project tax
increment revenue during the five-year period is projected to increase from $16,566,000 in the
initial Implementation Plan to approximately $21,333,020 (of which $5,000,000 will need to be
applied to pay debt service for City loans according to the City's Finance Department).
While the increased tax increment revenues should positively impact the Agency's plans and
programs during the five-year period, the projected expenditures for backbone roadways and
infrastructure construction during the early build-out period of the Project are also escalating.
The Agency's ability to complete projects and programs remains about the same as it was
envisioned at the time the Implementation Plan was prepared due to the increases in costs
associated with the proposed projects and programs.
FIVE-YEAR IMPLEMENTATION PLAN SUMMARY
Major redevelopment implementation activities for the Project Area during the 2003-2008 time
period in the initial Five-Year Implementation Plan proposed Agency programs included:
acquisition and disposition of property; infrastructure and demolition activities comprised of
demolition/clearance and site preparation for development and improvement of public
infrastructure and facilities; environmental remediation; and, Agency administrative support.
Major programs identified in the Implementation Plan are summarized below (see more detail
in the Implementation Plan).
Prooertv Acquisition and Disoosition
. Disposition of approximate 25-acre site to develop single family and multifamily for-sale
housing units (Parcel 33).
. Disposition of approximate 38-acre site to develop detached single family housing units
(Parcel 34).
. Disposition of approximate 59.7-acre site to develop up to 668,500 square feet of
regional retail uses (Parcels 10 & 11).
. Disposition of approximate 700+ acres of land comprising the Master Development Site
representing about half of the former MCAS Tustin property via selection of qualified
developer and separate disposition parcels based on negotiated take-down of property
to accommodate a variety of uses.
. Disposition of properties for public uses including about 83 acres within the Learning
Village to Orange County Community College and Rancho Santiago Community
College Districts, and approximately 50 acres to the Tustin Unified School District for
an approximately 40-acre high school site and 10-acre elementary school site.
Tustin Redevelopment Agency 6/13/2006 4
. Sale of approximate 18-acre site within the Learning Village fronting on Red Hill for
private development to be determined.
Infrastructure and Demolition
1. Demolition/Clearance and Site Preparation
. Removal of runways and tarmac, demolition of obsolete and substandard buildings
and residential units, and demolition of existing roadways and utility systems.
2. Public Improvements and Facilities
. Depending upon availability of financial resources, construction of on-site and off-
site roads, including:
a. West Connector
b. N. Valencia - Red Hill to Armstrong
c. N. Valencia - Red Hill to West Connector
d. Landsdowne
e. Edinger Avenue (partial)
f. Armstrong - Barranca to Warner
g. Armstrong - N. Valencia loop to Warner
h. Tustin Ranch Interchange
i. Severyns Road
j. N. Valencia loop - West connector/Tustin Ranch Road
k. East Connector - Edinger to N. Valencia loop
I. Moffett - N. Valencia loop to Harvard
m. Marble Mountain
n. N. Valencia loop - Tustin Ranch Road to Moffett
o. N. Valencia loop - Moffett to Warner
p. S. Valencia loop - Warner to Tustin Ranch Road
q. Warner - Red Hill to Jamboree
r. Tustin Ranch Road - Warner to Barranca
s. Warner - Jamboree to Harvard
t. Red HiII/Dyer
u. Tustin Ranch Road - N. Valencia loop to Warner
v. S. Valencia loop - Tustin Ranch Road to Armstrong
w. Widen Tustin Ranch Road
x. Widen Warner Road
. Depending upon availability of financial resources, construction of utility systems,
including:
a. Gas Utilities
b. Telephone Utilities
c. Cable TV Utilities
d. Domestic and Reclaimed Water Utilities
e. Sewer On-Site Utilities
f. Sewer Off-Site Utilities
Tustin Redevelopment Agency 6/13/2006
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g. Telemetry On-Site
h. Storm Drain Channels
Peters Canyon
Barranca Channel
San Ana - Santa Fe Channel
San Joaquin Channel
Backbone Storm Drains
. Depending upon availability of financial resources, construction of other community
and recreational facilities, including:
a. Fire Station
b. Community Parks (2)
c. Otherfacilities as needed and identified.
Environmental Remediation
. Continuing monitoring of Navy remediation activities and the land use restriction
covenants placed on portions of the Project Area.
. Abatement of hazardous materials (primarily asbestos and lead-based paint) that
impede the demolition and replacement of buildings and facilities in the Project Area.
Administrative Proqram Support and Indirect Costs
. Direct and indirect administrative support and program costs related to oversight and
management for all redevelopment activities in the Project Area, including coordination
of the planning, marketing, and disposition of properties, management of infrastructure
improvements, and caretaking and maintenance of acquired assets.
PROGRESS ON NON-HOUSING IMPLlMENTATION ACTIVITIES
The progress the Agency has made in implementing specific non-housing programs and
activities since the adoption of the Implementation Plan is discussed below, while the progress
on the housing programs is discussed in Section III of this report.
Propertv Acquisition and Disposition
. The City conveyed a 15-acre site to Rancho Santiago Community College District
(RSCCD) at the proposed intersection of Warner Avenue and Armstrong Road.
RSCCD has submitted plans to construct a law enforcement training facility authorized
by the Specific Plan. This facility is currently under construction. RSCCD is the Lead
Agency.
. A Conveyance Agreement was executed with South Orange County Community
College District (SOCCCD) and the City. SOCCCD is the Lead Agency authorized by
Tustin Redevelopment Agency 6/13/2006
6
the Specific Plan. Under the terms of the Conveyance Agreement, the City conveyed
37.66 acres by quitclaim deed to SaCCCD and 30.71 acres were leased to them
subject to compliance with provisions of the Conveyance Agreement. Title to the
leased property will be conveyed by the City to SaCCCD when the DoN completes
environmental remediation. SaCCCD plans to construct an Advanced Technology
Education Park (A TEP) at the corner of Valencia Avenue and Red Hill Avenue. Plans
have been submitted by SaCCCD for the initial phase of its ATEP and grading permits
have been issued.
. A Disposition and Development Agreement (DDA) was executed between the City of
Tustin and Vestar/Kimco Tustin L.P (dated July 20, 2004) providing for the phased
acquisition of the approximately 87 net acres site at fair market value. The DDA calls
for the phased development of the combined site to consist of demolition of the existing
structures on the site, removal of existing utilities and construction of an approximately
1.1 million square foot high quality, Class "A" commercial retail project named "The
District at Tustin Legacy". The developer is responsible for completion of all off-site and
on-site infrastructure improvements necessary for development, as well as making a
contribution to the Tustin Legacy Fair Share Backbone Infrastructure program. All
development entitlements have been obtained by the developer with site demolition and
rough grading activities underway. an June 8, 2005, approximately 56 acres were
initially conveyed to the developer as part of Parcel 1, while the remaining 31 acres will
be in Phase 2.
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All planning entitlements have been granted for development of the District at Tustin
Legacy, which will be a lifestyle and power retail center containing both big box and
lifestyle uses such as restaurants, specialty retail, and a 14-screen, 3,000-seat theatre.
Site demolition is completed and grading and building construction have been initiated.
The City of Tustin conducted an Environmental Analysis Checklist and associated
environmental review for this development and determined that it was within the scope
of the FEIS/EIR and that none of the circumstance described in CEOA Guidelines
Section 15162 triggered preparation of a supplemental or subsequent EIR.
. A L1FOC was entered into between the City of Tustin and the DoN for a 24-acre
community park shown on the northwest portion of the Specific Plan boundaries as
authorized by the Specific Plan. The City of Tustin is the Lead Agency and has initiated
preparation of a master plan for the park.
. The federal Department of Education (DoE) has conveyed a 10-acre site adjacent to
Red Hill Avenue to the Tustin Unified School District (TUSD) for educational purposes.
Within the City of Irvine the DoE has conveyed an 8-acre site adjacent to Harvard
Avenue to the City of Irvine for park, and a 20-acre site at Harvard Avenue/Barranca
Parkway to the Irvine Unified School District for educational purposes. These uses
comply with the Specific Plan, and were analyzed as part of the FEIS/EIR and
subsequently in mitigated negative declarations by each applicable school district.
. Tustin Legacy Community Partners LLC (TLCP), a joint venture between Shea/Centex,
was selected through a competitive RFO/RFP process for the purpose of negotiating a
Master Developer Disposition and Development Agreement (DDA). Terms of the DDA
were completed and the DDA was executed by the City of Tustin and Tustin Legacy
Community Partners LLC on May 5, 2006. The DDA provides for the phased land
purchase and development of a variety of uses on an approximate 820 acres Master
Developer footprint over a seven-year period. During the course of negotiations with
TLCP, a revision to the Tustin Legacy Specific Plan was approved 0 April 17, 2006 to
reflect current market opportunities identified by the City and Developer. The revisions
did not substantially amend the Specific Plan but rather generally adjusted planning
area boundaries and redistributed and/or eliminated certain planned land uses within
the Master Developer footprint area (see Neighborhood Map below).
Tustin Redevelopment Agency 6/13/2006
8
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Infrastructure and Demolition
1. Demolition/Clearance and Site Preparation Activities
. Demolition of existing roadways and utility systems is underway as part of the public
improvements and facilities activities identified below.
. Removal of runways and tarmac areas is proceeding on portions of the site as part
of the public improvements and facilities activities identified below.
. Demolition of obsolete and substandard buildings on parcels conveyed under the
Vestar/Kimco Tustin L.P. DDA has been completed by the Developer with site
preparation work underway.
. Demolition of substandard residential units on parcels conveyed under the John
Laing Homes DDA and parcels conveyed by the Navy to Lennar Homes was
completed by the Developers with site preparation work and construction of
Tustin Redevelopment Agency 6/13/2006
9
improvements underway, as discussed in the Housing Section of this Mid-Term
Report.
2. Public Improvements and Facilities
. On March 2003, the City of Tustin entered into a Cooperative Agreement (D02-119)
with the OCCD and the County of Orange (hereinafter referred to as the "County")
for the improvement of regional draining facilities throughout the Tustin Legacy site
(within the City of Tustin). The Cooperative Agreement identified conditions for the
development of certain portions of Tustin Legacy, including largely improvements to
a portion of Peters Canyon Channel with the City of Tustin. Specifically, the
agreement establishes the terms and conditions under which the channel
improvements will be scheduled, engineered, financed, constructed, operated, and
maintained. It should be noted that the responsibility to construct the channel
improvements can be passed form the City of Tustin to developers within the
Specific Plan area. The City and the County subsequently approved Amendment
No. 1 to Agreement D02-119 which includes provisions for the construction of
additional regional improvements to the Peters Canyon Channel within the City of
Tustin, and milestones for implementation of these improvements.
The City of Irvine required improvements for the portion of Peters Canyon Channel
in its jurisdiction and outside of the Project Area boundaries (from the City of Tustin
limits to Barranca Parkway) to be completed by Marble Mountain Partners, LLP.
The City of Tustin has entered into an agreement with the City of Irvine for funding
of channel improvements in the City of Irvine by Marble Mountain Partners, LLP.
The City of Irvine will use Community Facilities District fees for funding. As part of
this agreement, these improvements have been incorporated into the Tustin Legacy
Backbone Infrastructure Program.
. On December 6, 2004, the City of Tustin certified a Supplement to the FEIS/EIR for
the Reuse and Disposal of MCAS Tustin for the Extension of Tustin Ranch Road
between Walnut Avenue and the Future Alignment of the Valencia North Loop. The
proposed roadway is approximately one mile in length and includes an overpass
and connector loop road to Edinger Avenue. The proposed roadway will join the
existing southern terminus of Tustin Ranch Road at Walnut Avenue. The
Supplement to the FEIS/EIR was prepared based on more refined engineering
Project Study information available for this project that had not been fully available
at the time the original FEIS/EIR was certified. The original FEIS/EIR did identify the
development of this infrastructure project.
. The City completed an analysis of an Irvine Ranch Water District (IRWD) Plan of
Work for water and sewer improvements at Tustin Legacy. The City of Tustin
subsequently coordinated with IRWD in IRWD's formation of the improvement
district for the purpose of financing water and sewer facilities at Tustin Legacy.
Such utilities are within the scope of the Specific Plan and comply with the
requirements of the FEIS/EIR.
Tustin Redevelopment Agency 6/13/2006 to
. Construction began in March 2005 on Phase I Tustin Legacy Backbone
Infrastructure Improvements, which includes construction of the West Connector,
Valencia Avenue from Red Hill to the West Connector, Landsdowne, and Armstrong
from Valencia south to Warner Avenue with Irvine Ranch Water District (IRWD)
water and sewer facilities also being installed south to Barranca Parkway.
. On-site and off-site backbone road improvements are under design and will be
constructed by Lennar Homes during the initial implementation plan period
including, Edinger Avenue (partial), Marble Mountain (Sweet Shade), Severyns
Road, and Warner (Jamboree to Harvard).
. Additional on-site and off-site backbone road improvements are under design and
will be constructed by Vestar/Kimco Tustin L.P. during the initial implementation plan
period including, Park Avenue (Warner to Tustin Ranch Road), Tustin Ranch Road
(Warner to Barranca), and Barranca Parkway.
. Remaining on-site and off-site backbone road improvements will be designed during
the initial implementation period and constructed during future implementation
periods under the Master Developer DDA executed with Tustin Legacy Community
Partners.
. Construction of backbone utility systems in phased improvements are underway or
under design with completions occurring in conjunction with the site preparation and
roadway improvements identified above, including:
a. Gas Utilities;
b. Telephone Utilities;
c. Cable TV Utilities;
d. Domestic and Reclaimed Water Utilities by IRWD; and
e. Sewer On-Site Utilities.
. Construction of Sewer Off-Site Utilities downstream of Armstrong is under
construction by IRWD with completion scheduled for late 2006.
. Remaining backbone utility design and construction will be undertaken during future
implementation periods under the Master Developer DDA executed with Tustin
Legacy Community Partners, including:
a. Telemetry On-Site
b. Storm Drains
Peters Canyon
Barranca Channel
San Ana - Santa Fe Channel
On-Site Storm Drains
c. Gas Utilities
d. Telephone Utilities
Tustin Redevelopment Agency 6/13/2006
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e. Cable TV Utilities
f. Domestic and Reclaimed Water Utilities by IRWD
g. Sewer On-Site Utilities
. Design and construction by Lennar of the Fire Station with completion expected in
2008-2009.
. Depending upon availability of financial resources, construction of other community
and recreational facilities, including: Community Parks (2), and other facilities as
needed and identified.
Environmental Remediation Activities
After the 1991 announcement that MCAS Tustin would close, the Navy commenced remediation of
military contaminants to support reuse of the property as approved in the MCAS Tustin Specific Plan.
Literally hundreds of sites at the former Marine facility have been investigated, documented and
remediated, as needed. City of Tustin staff actively participates with Navy staff and state and federal
regulatory agencies (United States Environmental Protection Agency, California Environmental
Protection Agency/Department of Toxic Substances Control and Regional Water Quality Control
Board) in reviewing and commenting on Navy remediation documents, and provide recommendations
to assist the Navy in selecting remedies that support rapid economic development and reuse at the
site.
Since adoption of the initial Implementation Plan, the Navy has continued to make significant progress
on several major initiatives to resolve MCAS Tustin's remaining Installation Restoration Programs.
During this period, significant progress was made in investigating and remediating the Operable Units
(OUs), IRP sites, and Resource Conservation and Recovery Act areas of concern (AOCs). Highlights
include:
. OU-1 A - Progress was made to remediate primarily TCP 1,2,3 and MTBE groundwater
contamination plumes at OU-1A and Underground Storage Tank (UST) Site 222 utilizing two
groundwater pump and treat systems including the removal of hot spots in soil that previously
served as the source of the site's groundwater contamination. Design of the final treatment
system is scheduled to be completed in June 2006, with implementation scheduled to begin in
2007.
. OU-1B - Progress was made to remediate primarily TCE groundwater contamination plumes at
OU-1 B. All contaminated soil has been removed from the site and a remedial design for
groundwater is scheduled for completion in June 2006 with implementation scheduled to begin
in 2007.
. OU-3 - The Navy approved a Finding of Suitability to Transfer (FOST) for the OU-3 (Moffett
Trenches) former landfill in November 2004. Following two years of Navy monitoring activities,
a deed is currently being prepared to support conveyance of the property to the City of Tustin
by June 2006.
Tustin Redevelopment Agency 6/13/2006
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. OU-4A - The Navy approved a Finding of Suitability to Transfer of OU-4A (miscellaneous sites)
in 2006. A deed is currently being prepared to support conveyance of the property to the City of
Tustin by June 2006.
. OU-4B - On August 23, 2005, the Navy issued a Draft Feasibility Study (FS) that identified a
number of optional methods to remediate primarily TCE groundwater contamination at OU-4B.
A revised Draft FS is expected to be released by September 2006 with the final remedy not
being selected until January 2008.
. Arsenic Area of Concern - Elevated concentrations of arsenic in soil were removed by February
2005. The Closure Report was approved in June 2005 and a deed is currently being prepared
to support conveyance of the property to the City of Tustin by June 2006.
. Actively participated with the Restoration Advisory Board (RAB) and Base Cleanup Team to
support continued monitoring of Navy remediation activities and the land use restriction
covenants placed on portions of the Project Area.
. Supported economic development and reuse within the site through the abatement of
hazardous materials (primarily asbestos and lead-based paint) that impede demolition and
replacement of buildings and facilities in the Project Area.
Administrative Proaram Support and Indirect Costs
While the Agency continues to provide oversight and management for all redevelopment
activities in the Project Area, a portion of the estimated administrative support and indirect
costs associated with the project oversight during in early implementation period is being
covered by funding sources other than tax increment revenue. Land sale proceeds deposited
into an enterprise fund as provided for under the property conveyance agreement between the
Navy and the City of Tustin account for a substantial portion of the funding during the early
years of the project. In addition, the City is recovering some administrative costs from
developers.
Maior Private Sector Proiects Completed or Under Construction
Public redevelopment activities identified above and private sector projects in the Project
Areas have reduced blight and provided for the revitalization of the Project Area. The private
sector projects completed or under construction/building permits issued in the Project Area
since adoption of the initial Implementation Plan are summarized in the table below.
Tustin Redevelopment Agency 6/13/2006
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Summary of Major Non-Housing Private Sector Projects
Major Projects/ Building Building Estimated Estimated Estimated
Building Permit Sq.Ft. Valuation Temporary Permanent Annual Sales
Activity Jobs Jobs Tax
The District
at Tustin Legacy 523,000 $39,118,000 1,015 1,100 $2,000,000
(Phase 1 Bldg Permits)
SUMMARY AND CONCLUSION
Since the adoption of the initial Five-Year Implementation Plan the Agency's actions coupled
with a highly favorable economic environment have served to stimulate redevelopment and
economic revitalization in the Project Area. This is evidenced by the progress in implementing
the programs and projects identified above and any the increasing tax increment base over
the estimates provided in the initial Implementation Plan.
The Project Area has experienced considerable non-housing implementation activity, which
reflects a large portion of the property disposition activity and demolition/clearance and site
preparation work in the Project Area. Combined public and private investments in the Project
Area have made significant contributions toward eliminating blighting conditions and
stimulating new development and economic revitalization.
The Agency has a number of large-scale public improvement projects progress and in the
planning and engineering stages for the Project Area. These activities are typically longer-
term and require considerably more money and financial participation than individual
development projects. The construction start dates for these public improvement projects are
subject to project funding availability and development agreement and entitlement conditions.
The combined redevelopment activities by the City, Agency and private sector have
contributed to reducing the prevalence of blighting conditions in the Project Areas during this
period. While substantial progress towards achieving the Redevelopment Plan's goals and
objectives is expected to continue during the remaining period, financial resources are still
expected to be insufficient to complete all implementation activities within the five-year time
period.
Tustin Redevelopment Agency 6/13/2006
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III. HOUSING ACTIVITIES
This section provides a review of the Agency's housing and affordable housing implementation
activities, including actual and estimated expenditures, progress in meeting obligations under
the CRL, programs and specific projects, and a discussion as to how the goals, objectives,
programs and expenditures will fulfill the Agency's affordable housing obligations in the Project
Area.
BACKGROUND
In January of 2000, the City and Agency adopted a Comprehensive Housing Affordability
Strategy (CHAS) for the 2000/2001 to 2009/2010 period to guide the City's and Agency's
efforts in the production and preservation of affordable housing units within the community.
Among the affordable housing programs identified was the new construction of owner-
occupied housing. The program was identified to provide subsidies to reduce the costs to
develop new single family homes, town homes and condominiums citywide in order to make
them affordable to low- to moderate-income families. A Regional Housing Needs Assessment
(RHNA) for the City of Tustin was prepared in 2000, which further outlined citywide goals and
objectives for the production of affordable housing units. The CHAS and RHNA documents
coupled with the City of Tustin Housing Element served as a basis for establishing the
affordable housing requirements in the MCAS Reuse and Specific Plan and in the MCAS
Tustin Redevelopment Plan's initial Five-Year Implementation Plan approved by the City
Council in June, 2003.
In addition, the low- and moderate-income housing production requirements under the initial
Implementation Plan are governed by provisions of Redevelopment Law. Section 33413 of
Redevelopment Law provides the requirements for replacement housing and for the
production of low- and moderate-income housing units within the Project Area. Section 33413
also provides requirements for the expenditure of Low- and Moderate-Income Housing Set-
Aside Funds and the reporting thereof. Redevelopment agencies are required to comply with
the requirements of Section 33413 of Redevelopment Law and be consistent with or included
within the community's housing element.
The Implementation Plan must be reviewed and, if necessary, amended at least every five
years to ensure the affordable housing obligations under Section 33413 are met at least every
10 years during the time period of the effectiveness of the Redevelopment Plan. Along with
reporting the Agency's progress on affordable housing projects and programs the housing
component of the Implementation Plan's mid-term report must also evaluate the Agency's
compliance under the laws and regulations governing the expenditure of monies from the Low-
and Moderate-Income Housing Set-Aside Fund.
Proiect Area Goals and Obiectives
The primary goal of the affordable housing programs under Redevelopment Law is the
expansion, preservation and improvement of the community's supply of housing available to
Tustin Redevelopment Agency 6/13/2006
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low- and moderate-income persons and families. In addition, the housing programs contribute
to the following Redevelopment Plan goals:
. elimination of blighting influences and correction of environmental deficiencies;
. serve to assemble land into parcels suitable for modern, integrated development;
. provide for reuse and redevelopment of portions of the Project Area which are
improperly utilized;
. provide for the installation of new public improvements, facilities and utilities; and,
. provide an environment for social and economic growth.
Recent Leqislative Requirements
The most significant legislative change since January 1, 2005, requires redevelopment
agencies to impose more stringent restrictions on the production and monitoring of affordable
housing units. In order to meet the affordable housing production obligations under Section
44313 of the Redevelopment Law, low- and moderate-income housing units under agreement
with the Agency or assisted by the Agency must have long-term restrictive covenants recorded
against the units. The restrictive covenants must be in effect for no less than 45 years for
owner occupied units and for no less than 55 years for rental units. Redevelopment Law
stipulates that owner occupied units may be sold prior to the end of the 45-year period or other
applicable restricted period, provided that the covenants contain a) an equity share provision
for the agency, b) that the resulting monies are re-deposited into the Housing Fund and, c) the
unit sold must be replaced at the same income level within three years and such replacement
unit may not be counted as a new unit produced.
Other modifications to Redevelopment Law operable after January 1, 2005, deal with the
proportional expenditure of Low- and Moderate Housing Set-Aside Funds and production of
family housing units. While previous law recommended a policy for the expenditure of set-
aside fund to be provided in at least the same proportion, or percentage, that the number of
housing units needed for very low-, low- and moderate-income categories bears to the total
number of units needed for all three income categories, the new legislation requires that
expenditures must be made proportionately with the determined need for very low-, low- and
moderate-income persons and families in the community. In addition, the new law requires
that over the period of the implementation plan expenditures from the set-aside fund be made
in at least the same proportion as the non-senior population under age 65 in the city bears to
the total population.
HOUSING PROGRAM FINANCIAL RESOURCES
Redevelopment agencies are required to deposit no less than 20% of the gross tax increment
revenue generated by their redevelopment projects into separate Low and Moderate Income
Housing Set-Aside Funds. The set-aside funds must be used for increasing, improving, and
preserving the supply of low- and moderate-income housing in their communities. Set-aside
funds may also be used for the production of replacement housing if any existing low- and
moderate-income housing units were removed by development under agreement with a
Tustin Redevelopment Agency 6/13/2006
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redevelopment agency, and to improve building sites with onsite and offsite improvements if
the improvements are a reasonable and fundamental part of the new construction of
affordable housing units directly benefiting low and moderate-income persons.
The estimated tax increment revenues to be deposited in the low- and moderate-income set-
aside fund to finance the programs, projects and expenditures of the Agency are identified in
the initial Implementation Plan. These deposits, together with other monies including, but not
limited to, write-downs for land sales provide the resources to fund the Agency's low- and
moderate-income housing programs, projects and expenditures. While the MCAS
Redevelopment Plan provides for the deferral of up to 50% of the required deposit to the set-
aside fund during the first 10 years of the Redevelopment Plan, to date, the Agency has
determined to make its full deposit to the fund. A mid-term review of the actual deposits and a
revised estimate of the set-aside revenues through end of the five-year planning period is
provided in the table below.
Revised Projection of 20% Housing Set-Aside Tax Increment Revenues
Fiscal Year DeDosits
Beginning Fund Balance
July 1, 2003 $ 0
FY 03-04 (actual) $ 0 .
FY 04-05 (actual) $ 805,543
FY 05-06 (est.) $ 716,320
FY 06-07 (est.) $ 2,051,370
FY 07-08 (est.) $ 2.861,320
TOTALS: $ 6,434,553
Note: Actual deposit amounts have been confirmed by the Tustin Finance Department;
FY 04-05 revenues include deposit of FY 03-04 Supplemental Tax Rolf thus higher than FY 05-06.
Estimated revenues revised per David Taussig Associates April 2006 Tustin Legacy Fiscal Impact Analysis.
Like the non-housing tax increment, the actual and estimated housing set-aside revenues
have increased substantially due to favorable market conditions. The total estimated
revenues are up from about $1.1 million identified in the initial Implementation Plan to about
$6.4 million. The increased set-aside revenues will have a positive impact of the Agency's
affordable housing activities in the Project Area.
In addition to housing set-aside tax increment revenues, other resources may be utilized to
assist in the development of affordable housing units in the Project Area. These resources
include, but are not limited to, Federal, State and local funds such as Community
Development Block Grant Fund (CDBG), Tax Credit Bond Financings, and State Housing
Bond monies made available for the production of affordable housing. Tax increment
revenues may also be used to secure debt in the form of financings or other loans or
indebtedness, including the repayment of loans and advances from the City of Tustin. The
affordable housing units produced to date in the Project Area have relied on City assistance
provided to the developer in the form land sales that reflect the affordability gap to produce
affordable units necessary in meeting the Agency's housing obligations in the Project Area.
Tustin Redevelopment Agency 6/13/2006 17
Under Redevelopment Law the City assistance is deemed to be a reimbursable expense by
the City to the Agency and an eligible indebtedness against the Project Area tax increment.
IMPLEMENTATION PLAN SUMMARY
The initial Implementation Plan addresses the following aspects of the Agency's affordable
housing programs.
. Requirements under Redevelopment Law Section 33334 regarding expenditure of Low
and Moderate Housing Set-Aside Funds, including:
a. Proportional expenditure requirements(33334.4); and
b. Estimated expenditures.
. Requirements under Redevelopment Law Section 33413 regarding affordable housing
development, including:
a. Replacement housing requirements (33413(a)); and
b. Affordable housing production Requirements (33413(b)).
. Agency administrative program support and indirect costs.
Housing programs identified in the initial Implementation Plan focused primarily on the
disposition of land and related expenditures needed during the first five years of the
redevelopment plan for demolition and infrastructure improvements in the Project Area. The
following is a review of each section of the housing component contained in the initial
Implementation Plan.
Proportional Expenditures
The City of Tustin Housing Element and the initial Implementation Plan identified an allocation
for very low-, low- and moderate-income housing expenditures at 28%, 35% and 36%
respectively. Redevelopment Law allows flexibility in adjusting expenditures between the very
low- and low-income household and for reducing the expenditures for higher income
categories, while the moderate-income expenditures may not exceed the 36% limit identified.
In addition, the proportional expenditures from the set-aside fund for family housing serving
the non-senior population in the City is identified to be approximately 93% of the total
expenditures. Redevelopment Law requires that the proportional expenditure of set-aside
funds must be met every 10 years through the termination of the Project Area.
Estimated Expenditures
As discussed above, assistance for the production of affordable housing in the Project Area to
date has been in the form of discounted land sales by the City of Tustin to the developer.
There have been no direct expenditures of MCAS Tustin Project Area set-aside funds made to
date. The gap amount that the City has financed is reflected in the table below, which reflects
the average amount per unit of the promissory notes securing the 45-year affordability
Tustin Redevelnpment Agency 6/13/2006
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restrictions and the percentage of the total gap for the very low-, low-, and moderate-income
units respectively.
MCAS Tustin Proportional Affordable Housing Allocation Table
Description Very Low Low Moderate Total
Number Units Produced 33 23 62 118
Percent of Total 28% 20% 52% 100%
Average Per Unit Gap Amount $510,579 $538,255 $291,346
Percent of Total GaD 36% 26% 38%
All of the units produced to date are for family housing and no expenditures have been made
for senior housing units.
Replacement Housino
Redevelopment Law Section 33413 requires that whenever dwelling units housing persons
and families of low- or moderate-income are destroyed or removed from the low- and
moderate-income housing market as part of a redevelopment project subject to a written
agreement with the Agency or where financial assistance has been provided by the Agency,
the Agency must rehabilitate, develop or construct, or cause to be rehabilitated, developed or
constructed, an equal number of replacement dwelling units which have an equal or greater
number of bedrooms as those destroyed or removed at affordable housing costs within the
territorial jurisdiction of the Agency. The replacement units must be created within four years
of the destruction of the original units.
The MCAS Tustin Redevelopment Plan and initial Implementation Plan determined that no
replacement housing unit obligations would be incurred since all existing military housing units
were vacant and had never been part of the City's housing market available to, or for
occupancy by the public.
Affordable Housino Production
Per Section 33413 of Redevelopment Law, at least 15% of the units produced in the Project
Area are required to be made available to and for occupancy by affordable low- to moderate-
income households and 40% of such units (six percent of all units) are to be made available to
and for occupancy by very low-income persons/households. The MCAS Redevelopment Plan
identifies the total number of housing units not to exceed the number of units permitted under
the MCAS Specific Plan. The Specific Plan anticipates a total of 4,212 housing units with 879
(20.9%) units available for very low-, low- and moderate-income persons and families.
The affordable housing production obligations under Redevelopment Law are cumulative and
must be met over each 10-year period after adoption of the Redevelopment Plan. The initial
Implementation Plan projected that an estimated 2,760 housing units would be produced over
the first five-year period with a total of 416 units (15%) to be affordable to low- and moderate-
Tustin Redevelopment Agency 6/13/2006
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income persons. The affordable units were to be comprised of 166 (40%) very low-income
units and 250 (60%) low- and moderate-income units.
The following table summarizes the Agency's progress in housing production, including
affordable housing units, units required and the production balances for the initial
Implementation Plan five-year period covered by this Mid-Term Report. While the table shows
that the estimated total housing units to be produced during the 5-year period is about 17%
lower than the total number of units estimated in the initial Implementation Plan, the
production of affordable units is substantially higher than projected.
Summary of MCAS Tustin Housing Production
Program/Project Very Low Low Moderate Market Total
Description Income Income* Income Rate Units Units
Initial Implementation Pan
Projected Units FY2002-2007 166 * 250 2,344 2,760
Percent of Total 6% 9% 85% 100%
Units Produced to Date 33 23 62 477 565
Percent of Total 6% 4% 11% 84% 100%
Units Under Construction 265 ** 125 110 1,234 1,734
(Est. Completion FY 2007) 16% 7% 6% 71% 100%
Est. Total Housing Units 298 148 172 1,711 2,299
Percent of Total 13% 6% 8% 74% 100%
* Low- and moderate-income units may be distributed between income categories as identified in Redevelopment
Law and the initial Implementation Plan.
.. Includes 198 transitional housing units at Orange County Rescue Mission.
AFFORDABLE HOUSING PROGRAMS AND PROJECTS
New Housinq Construction
. New Ownership Family Housing Construction - this program would provide assistance,
including but not limited to discounted land sales to private developers for construction
of new owner housing for families to mitigate the amount of the affordability gap for
qualified very low-, low- and moderate-income homebuyers.
. New Owner Senior Housing Construction - this program would provide assistance,
including but not limited to discounted land sales to private developers for construction
of new owner housing for seniors to mitigate the amount of the affordability gap for
qualified very low-, low- and moderate-income homebuyers.
. New Rental Housing Construction - this program would provide assistance for
construction of new rental apartments for eligible tenants that are below 120% of the
median income and will remain rented to qualifying very-low, low- and moderate-income
tenants for the longest time feasible.
Tustin Redevelopment Agency 6/13/2006
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Support and Ancillary Services (non-local resources)
?
Homeless Housing Partnership – to provide assistance through federal programs to
provide transitional housing for persons and families that are at or below 50% of the
medium income level, adjusted for family size.
Program Support Expenditures
?
Program support costs incurred and directly related to implementing the housing
program including salaries, overhead, consultant and legal expenses, supplies, etc. for
monitoring and managing of all affordable housing programs including units with
covenant restrictions. Actual administrative program support expenditures would be
determined each year and found to be necessary to implement the housing program.
PROGRESS ON HOUSING IMPLEMENTATION ACTIVITIES
New Housing Construction
?
The City entered into two Disposition and Development Agreements (DDAs) for MCAS
Tustin Specific Plan Disposition Parcels 33 and 34 with WL Homes (John Laing
Homes). Pursuant to the DDA’s, 25.3 acres were conveyed by the City to this
developer for Tustin Field I (Parcel 33) for development of 376 for-sale homes and
36.84 acres for Tustin Fields II (Parcel 34) for development of 189 for-sale homes. A
total of 118 affordable dwelling units were constructed and sold at Tustin Field I & II
during the period of this Mid-Term Review, which included 33 very low, 23 low, and 62
moderate income units. This development, including required infrastructure, is
substantially complete.
Tustin Redevelopment Agency 6/14/2006 21
?
Certain property at MCAS-Tustin was excluded from the EDC Agreement offered by the
DoN through a public bid sale. Approximately 192 acres of what was sold by the DoN
is within the City of Tustin and approximately 47 acres are within the City of Irvine. The
successful bidder for the parcels was a partnership of Lennar Communities and William
Lyon Homes (Moffett Meadows Partners, LLC). The City of Tustin approved
entitlements in Spring 2005 for each of the Moffett Meadows Partners development
sites on Reuse Plan Disposal Parcels 24 and 25 (Columbus Square) and 35 and 36
(Columbus Grove). Development will include a total of 1,075 units in Columbus Square
of which 811 will be market rate and 266 units will be affordable to households of very
low, low, and moderate-income. The Columbus Grove Development will include 465
units of which 423 units will be market rate units and 42 will be affordable.
The City provided density bonus incentives including variances of certain development
standards as a financial incentive towards the developer’s provision of affordable
housing. The City is also working with the developer on tex-exempt community facilities
financing of developer infrastructure obligations. Building demolition was completed
and construction of in-tract and backbone infrastructure and vertical building
improvements has begun on each of the parcels. Construction is substantially
complete at Columbus Grove with the sales model units completed and sales begun in
April 2006. Construction has also begun at Columbus Square with the sales model
units substantially completed and unit sales anticipated to start in August 2006.
?
The DoN EDC Agreement, the DoN also conveyed a 5.1-acre site to the City at Red Hill
and Valencia for accommodation of a transitional homeless facility. The City of Tustin
has entered into a Ground Lease and a Conveyance Agreement with the Orange
County Rescue Mission (OCRM), which is currently constructing the Village of Hope, a
192 unit transitional housing facility. The project will substantially rehabilitate former
barracks into a 192-bed shelter facility to serve homeless individuals and families.
Under terms of the Conveyance Agreement, the City will convey the site to the OCRM
Tustin Redevelopment Agency 6/14/2006 22
upon OCRM’s completion of all site improvements and its compliance with all pre-
conditions to conveyance of the site. This use is permitted under the Specific Plan and
was analyzed as part of the FEIS/EIR. Largely funding through federal grants and
private donations, the project is expected to be completed in late 2006.
Support and Ancillary Services
A total of 22 dwelling units have been produced to-date under the Homeless Housing
Partnership program to provide long-term transitional family housing. These units included 6
very low-income units at the Tustin Field I development, which were conveyed to the Salvation
Army in addition to 16 very low-income units that were located outside of the Project Area
pursuant to the Homeless Assistance Agreement between the City and the Salvation Army.
In addition, three separate Homeless Assistance Agreements have been executed as follows:
?
Between the City, Marble Mountain Partners LLP (LennarHomes & Wm. Lyon Homes,
and Human Options to construct and provide to Human Options, at no cost, 6 units for
transitional housing purposes. Entitlements are completed and units will be under
construction shortly.
?
Between the City, Marble Mountain Partners LLP, and Orange Coast Interfaith Shelter
to construct and provide to Interfaith Shelter, at no cost, 6 unit for transitional housing
purposes. Entitlements are completed and units will be under construction shortly.
?
Between the City, Marble Mountain Partners LLP) and Families Forward (in the City of
Irvine) to construct and provide to Families Forward, at no cost, 14 units for transitional
housing purposes (the City of Irvine is taking the lead on these units). Entitlements are
completed and units will be under construction shortly.
Tustin Redevelopment Agency 6/14/2006 23
Housinq Proqrams & Proiects Accomolishments
The following table summarizes the mid-term progress and estimated dwelling units to be
produced during the 5-year period, including the affordable housing production programs
identified above.
Summary of Housing Unit Production
Program/Project Very Low Low Moderate Market Total
Description Income Income" Income Rate Units
New Construction (Completed)
Tustin Fields 1 - Amelia 22 12 44 298 376
Tustin Fields 2 - Cavlev Wav 11 11 18 149 189
New Construction (Est. 2007)
Columbus Square 61 125 80 809 1,075
Columbus Grove 12 0 30 423 465
Substantial Rehabilitation
Orange County Rescue Mission 192 0 0 0 192
Total Housing Units 2003-2008 298 148 172 1,679 2,297
Percent of Total 13.0% 6.4% 7.5% 73.1% 100%
Total valuation of the 565 dwelling units completed to-date is over $327.6 million resulting in
the creation of approximately 1,750 temporary (construction) jobs.
The progress to date and over the five-year period of the initial Implementation Plan will assist
in achieving the Redevelopment Plan's goals, including:
. The elimination of blighting influences in the Project Area by placing vacant parcels of
land into productive use.
. The assembly of land parcels suitable for modern, integrated development.
. The reuse and redevelopment of portions of the Project Area which are improperly
utilized.
. The installation of new public improvements, facilities and utilities.
. The creation of an environment for social and economic growth.
SUMMARY AND CONCLUSION
Under Redevelopment Law, the Agency's affordable housing expenditure requirements and
production obligations since June, 2003, and thereafter have to be in compliance every a 10
years with the initial period ending in 2013. The Agency has aggressively implemented its
affordable housing programs and activities in the Project Area since the adoption of the initial
Tustin Redevelopment Agency 6/13/2006 24
Five-Year Implementation Plan. To date, the Agency has met its expenditure requirements
and production obligations under the law. The Agency will take new requirements, if any, into
account when expending its housing set-aside funds and implementing its housing programs
and project between now and the end of the initial five-year period. Based on the Agency's
mid-term progress, projects currently in the pipeline, and shifting focus and priorities, it is
expected the Agency will achieve its five-year goals for affordable housing activities identified
in the initial Implementation Plan and its 10-year obligations under Redevelopment Law.
Tustin Redevelopment Agency 6/13/2006
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ATTACHMENT A
INITIAL FIVE-YEAR IMPLEMENTATION PLAN
For the
MCAS TUSTIN REDEVELOPMENT PROJECT
(Report to the City Council - Section VI)
TABLE OF CONTENTS
I. INTRODUCTION
II. REDEVELOPMENT IMPLEMENTATION ACTIVITIES (NON-HOUSING)
PROJECT AREA GOALS AND OBJECTIVES
NON-HOUSING FINANCIAL RESOURCES
FIVE-YEAR IMPLEMENTATION PLAN SUMMARY
Property Acquisition and Disposition
Infrastructure and Demolition
Environmental Remediation
Administrative Program Support and Indirect Costs
PROGRESS ON NON-HOUSING IMPLEMENTATION ACTIVITIES
Property Acquisition and Disposition
Infrastructure and Demolition
Environmental Remediation
Administrative Program Support and Indirect Costs
Major Private Projects Completed or Under Construction
SUMMARY AND CONCLUSION
III. HOUSING ACTIVITIES
BACKGROUND
Project Area Goals And Objectives
Recent Legislative Changes
HOUSING PROGRAM FINANCIAL RESOURCES
IMPLEMENTATION PLAN SUMMARY
Proportional Expenditures
Estimated Expenditures
Replacement Housing
Affordable Housing Production
AFFORDABLE HOUSING PROGRAMS AND PROJECTS
New Housing Construction
Support and Ancillary Services
Program Support Expenditures
PROGRESS ON HOUSING IMPLEMENTATION ACTIVITIES
New Housing Construction
Support and Ancillary Services
Housing Programs and Projects Accomplishments
SUMMARY AND CONCLUSION