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Home My WebLink About09 REUSE PARCEL 18 UPDATES DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 "%W Agenda Item 9 Reviewed: os AGENDA REPORT City Manager1W Finance Director MEETING DATE: MAY 3, 2022 TO: MATTHEW S. WEST, CITY MANAGER/LOCAL REUSE AUTHORITY EXECUTIVE DIRECTOR FROM: ECONOMIC DEVELOPMENT DEPARTMENT SUBJECT: REUSE PARCEL 18 UPDATES SUMMARY Updates on Reuse Parcel 18 cleanup activities, future phases of work, and the reuse planning process. RECOMMENDATION It is recommended that the City Council, acting as the Local Reuse Authority (LRA) for former Marine Corps Air Station (MCAS) Tustin, receive and file the staff report, attachments and presentation. FISCAL IMPACT Not applicable. BACKGROUND On November 16, 2021 the City Council (acting as the LRA) appropriated $330,000 for a Phase 1 initial site clean-up and ongoing property maintenance of Reuse Parcel 18 (approximately 85 acres) and directed staff to return to the City Council/LRA with progress updates and recommendations for future phases of additional site work and corresponding budget requests as needed. Since November 16, 2021 , the following components of the Phase 1 site clean-up work have been completed: - Large containers removed - Various scrap piles removed - Various abandoned equipment removed DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 Agenda Report— Reuse Parcel 18 Updates May 3, 2022 Page 2 - Interior broken fencing removed - Repaired and replaced site perimeter fencing - Overgrown vegetation and trees removed and maintained - Incorporation of site into regular Tustin Legacy property maintenance contract Attached are before and after photos of Reuse Parcel 18 showing the site clean-up progress made on the site since November 2021 . This work represents the most comprehensive clean-up, site security and property maintenance of Reuse Parcel 18 since MCAS Tustin closed in 1999. There is now greater site visibility for public safety personnel, regular and ongoing site maintenance, and a visible demonstration of the City/LRAs immediate and future commitment to the site on behalf of the Tustin community. DISCUSSION Progress Updates The City Council (acting as the LRA) requested updates on progress of prerequisites for future phases of site maintenance and planning presented by staff on November 16. Staff is pleased to share the following updates and next steps: - Phase 1: Site Cleanup o Prerequisites: ■ None remaining o Updates: ■ Majority of Phase 1 activities complete except for hazardous materials assessment of all buildings. o Next Steps: ■ Budget in place for hazardous materials assessment. Work to begin in May/June 2022. - Phase 2: Ongoing Maintenance/Reuse Planning o Prerequisites: ■ National Parks Service (NPS) letter removing sponsorship of County of Orange (County) Public Benefit Conveyance (PBC) Application ■ Modification of City license agreement with Department of Navy to allow for potential interim revenue generation DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 Agenda Report— Reuse Parcel 18 Updates May 3, 2022 Page 3 o Updates: ■ NPS letter removing the County PBC completed and received (attached) ■ License modification between the Navy and City/LRA in process o Next Steps: ■ Continue regular site and tree maintenance (incorporated into draft FY 22/23 budget) ■ Explore potential for interim revenue generation opportunities ■ Develop Reuse Plan schedule and process - Phase 3: Ongoing Maintenance/Demo and Site Prep o Prerequisites: ■ New Navy Finding of Suitability to Lease (FOSL) - not yet complete ■ Interim Leases between Navy and City/LRA or others — not yet complete o Updates: ■ None o Next Steps: ■ N/A Staff will continue to return to the City Council/LRA with updates on Phase 1 & 2 progress, as well as recommendations and appropriation requests for Phase 2 and/or Phase 3 work as needed and prerequisites are finalized. Reuse Planning Process Because NPS has indicated it has removed its sponsorship of the County PBC application, the LRA can now proceed with initiating a reuse planning process for Reuse Parcel 18 in compliance with all applicable state and federal laws and regulations. The reuse planning process may take 2+ years and will be comprised of the following: - Retain contract reuse planning consultants - Seek support from Office of Local Defense Community Cooperation (OLDCC) - Reports, studies, analyses on property condition - Screening analysis - Reuse Plan alternative(s) development and selection - Joint CEQA/NEPA by City/LRA - Reuse Plan Adoption (and corresponding implementation plan) This is a receive and file item and no Council/LRA action is requested. DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 Agenda Report— Reuse Parcel 18 Updates May 3, 2022 Page 4 5 DocuSigned by: DocuSigned by: sf"�, 6s�, ptyl Christopieroster Kenneig eu e Director of Economic Development Senior Management Analyst Attachments - Before and after photos of Reuse Parcel 18 after Phase 1 work - Letter from NPS regarding County PBC application DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 Reuse Parcel 18 CityCleanup Work Before and After Photos Before Photos: October 2021 After Photos: February 2022 � { # s � DocuSign Envelope ID C9915F3B-ClCl-4E4B-A3A8-677C852EA079 ) d { . . »: \?� A .� . . . < \: \ ^ ��{\t$ DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 II � kIIA 1-, I DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 � r Pi 4 DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 mar ..f { I i I ' DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 BeforeMR I DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 i F � I � f , bf it ` NL � : l . � o Before s Before �„�ft�er DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 E Z i DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 1 1 n f ? Before DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 p r — try � �•- `qF :-;:1F _� _� *1 :--_ i -- ®, f - DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 WIN 4w � 4 Before DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 WSW —T L I DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 6 — { iE DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 NATIONAL United States Department of the Interior p NATIONAL PARK SERVICE Acy a. Pacific West Region 909 First Avenue, Suite 500 Seattle,WA 98104 IN REPLY REFER TO: 8.A.2—PR/FLP OFFICIAL CORRESPONDENCE SENT VIA EMAIL NO HARD COPY TO FOLLOW February 23, 2022 Frank Kim County Executive Officer County of Orange 333 W. Santa Ana Blvd, 3rd Floor Santa Ana, California 92701-4062 RE: MCAS Tustin Parcel 18 Public Benefit Conveyance Dear Mr. Kim: Thank you for your letter of January 7, 2022 by which you responded to our letter to the City of Tustin/Tustin Local Reuse Authority (LRA) dated December 22, 2021 (requesting that the LRA allow a specific amount of additional time for the County to produce concrete actions to advance the County's public benefit conveyance park application), and the response by the City of Tustin dated January 5, 2022 in which they denied our request. As you can read in the LRA's response to our request, they are unwilling to grant the County any more time to produce the specified results, and they stand behind their August 11, 2021 action by which they removed the County's regional park plans from the Local Reuse Plan. Unfortunately, these circumstances leave the NPS with no authority to continue to sponsor the County's application. Without the LRA's acceptance of the County's application, the excision of the County's proposed regional park from the Reuse Plan (consistency with which is required of proposed public benefit conveyances), and lacking assignment from the Navy of the property for NPS disposal under the Federal Property and Administrative Services Act of 1949, we no longer have standing within the disposal process that would enable us to continue our sponsorship or to insist that the Parcel 18 go to the County for a regional park. It is also worth noting that the County has not yet put forth a financially feasible plan that would compel our acceptance of a property application for public benefit conveyance of Parcel 18 were it received as a new application at this time. Nevertheless, we have been enthused about the County's desire to establish a regional park at Tustin and have long hoped that the County could find a way to pull it off in a manner that would be consistent with the requirements of a park public benefit conveyance, possibly involving transferring some of the parcel through the historic surplus property program. NPS does not control the planning process, however we encourage the County to participate in the process that DocuSign Envelope ID:C9915F3B-C1C1-4E4B-A3A8-677C852EA079 Frank Kim Orange County 2/23/2022 -2- the LRA will now commence so that a public park may be achieved at this site. We would be glad to consider another application by the County for public benefit conveyance of all or part of the parcel when the process is open again for public benefit conveyance applications. If you have any questions or would like to discuss this further, please feel free to contact me at the above address, or by e-mail to david_siegenthaler@nps.gov. Yours sincerely, David Siegenthaler Regional Program Manager Federal Lands to Parks cc: Mathew S. West, LRA Executive Director/Tustin City Manager Charles L. Perry, Department of Navy