HomeMy WebLinkAboutCC RES 24-29DocuSign Envelope ID: C8B451AC-2DF3-425D-A2AC-315BD6CE8470
RESOLUTION NO. 24-29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, DECLARING CERTAIN REAL PROPERTY COMPRISED OF
PORTIONS OF ASSESSOR'S PARCEL NUMBERS 430-391-03, 430-391-27,
430-391-28, 430-391-29, 430-391-56, 430-391-58, 430-391-60, 430-391-61, 430-
391-62, 430-391-63, 430-391-34, 430-391-65, 430-391-79, 430-391-80, AND 430-
391-81 AS EXEMPT SURPLUS LAND PURSUANT TO CALIFORNIA
GOVERNMENT CODE SECTION 54221(f)(1)(H) AND THE DRAFT UPDATED
SURPLUS LAND ACT GUIDELINES SECTION 103(c)(7)(C)
WHEREAS, the City of Tustin (City) owns certain real property consisting of
approximately 38 acres (Site) at Tustin Legacy comprised of portions of Assessor's Parcel
Numbers (APN) 430-391-03, 430-391-27, 430-391-28, 430-391-29, 430-391-56, 430-
391-58, 430-391-60, 430-391-61, 430-391-62, 430-391-63, 430-391-34, 430-391-65,
430-391-79, 430-391-80, and 430-391-81; 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 Marine Corps Air Station (MCAS) Tustin in order to facilitate the closure of MCAS
Tustin and its reuse in furtherance of the economic development (including the creation
of jobs and housing) of the City and surrounding region; and
WHEREAS, in May 2002, The United States of America approved an Economic
Development Conveyance (EDC) and agreed to convey approximately 1,153 acres of
former MCAS Tustin to the City; and
WHEREAS, on May 13, 2002, a total of approximately 977 acres were conveyed
by The United States of America to the City by quitclaim deed, in accordance with the
provisions of a Memorandum of Agreement by and between The United States of America
and the City dated May 13, 2002, and
WHEREAS, the additional approximately 177 acres were made subject to a ground
lease by the City from The United States of America and portions thereof have
subsequently been conveyed to the City pursuant to subsequent quitclaim deeds; and
WHEREAS, the City believes the Site (and all portions of Tustin Legacy owned or
to be owned by the City) to be assets to be held, used, and portions sold or leased to
enable the City to meet its responsibilities to fund ongoing and future infrastructure,
development and maintenance costs at Tustin Legacy that are borne by the City as
Executive Developer in order to provide housing, employment, public services and
recreation to City residents; and
WHEREAS, the City, acting as Executive Developer for Tustin Legacy, carefully
plans neighborhoods within the 1,600-acre footprint to account for infrastructure costs,
Resolution 24-29
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market conditions, and community benefits prior to initiating a disposition process for
certain parcels; and
WHEREAS, the City, acting as Executive Developer for Tustin Legacy, has acted
in its role to provide market rate and affordable housing at Tustin Legacy, with 3,856
residential units (ownership and rental) constructed to date, 688 of which are deed
restricted for various levels of affordability; and
WHEREAS, existing law established the Surplus Land Act (SLA) for local agencies
to follow when disposing of surplus properties no longer needed for the City's use; and
WHEREAS, on October 9, 2019, California Governor Gavin Newsom signed
Assembly Bill 1486 (Ting) into law, which made substantive amendments to the SLA
effective January 1, 2020; and
WHEREAS, in April 2021, the final Surplus Land Act Guidelines were published by
the California Housing and Community Development Department (HCD) with additional
SLA guidance; and
WHEREAS, on October 11, 2023, California Governor Gavin Newsom signed
Assembly Bill 480 (Ting) and Senate Bill 747 (Caballero) into law, which clarified elements
of the SLA and provided additional exemption options; and
WHEREAS, in February 2024, the Draft Updated Surplus Land Act Guidelines
were released by HCD for public comment with revisions based on implementation and
recent legislation but have not been finalized; and
WHEREAS, the 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 City through its broker CBRE initiated an open, competitive
solicitation request for proposals process (RFP) for the Site on September 13, 2023 and
all entities identified in subdivision (a) of Section 54222 of the Government Code were
invited to participate; and
WHEREAS, the RFP required at least 300 residential units and for at least 25% of
the residential units to be restricted to lower income households as defined in Section
50089.5 of the Health and Safety Code, with an affordable sales price or rent pursuant to
Sections 50052.5 and 50053 of the Health and Safety Code for a minimum of 55 years
for rental housing and 45 years for ownership housing; and
WHEREAS, if negotiations are successful, an affordable housing covenant or
restriction shall be recorded against the Site at the close of escrow that shall run with the
Site and be enforceable against any owner who violates the covenant or restriction and
each successor owner in interest who continues the violation; and
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WHEREAS, the City seeks to cause the development of the Site in a manner that
satisfies all of the exemption requirements specified by 54221(f)(1)(H) of the Government
Code as follows:
a) The Site is more than ten (10) acres in size.
b) The Site consists of two or more adjacent parcels combined for
disposition to a single buyer pursuant to a plan adopted by the City
Council.
c) The disposition and development of the Site has been subject to the
City's open, competitive solicitation RFP process, and all entities
identified in Government Code Section 54222(a) were invited to
participate in that process for a housing or mixed use development.
d) In the aggregate, the number of residential units developed on the
Site will exceed the greater of (i) three hundred (300) residential units
and (ii) ten (10) times the number of acres comprising the Site or ten
thousand (10,000) residential units, whichever is less.
e) At least twenty-five percent (25%) of the residential units developed
on the Site will be restricted to lower income households, as defined
in Section 50079.5 of the Health and Safety Code, with an affordable
sales price or an affordable rent pursuant to Section 50052.5 and
50053 of the Health and Safety Code, for a minimum of 55 years for
rental housing, and land use for ownership housing.
f) To the extent nonresidential development is included in the
development of the Site, at least twenty-five percent (25%) of the
total planned units affordable to lower income households will be
made available for lease or sale and permitted for use and
occupancy before or at the same time with every twenty-five percent
(25%) of nonresidential development made available for lease or
sale and permitted for use and occupancy.
g) The Site will be disposed of pursuant to a disposition and
development agreement that includes an indemnification clause that
provides that if an action occurs after disposition that violates
Government Code Section 54221(f)(1)(H), the person or entity that
acquired the property shall be liable for the penalties described in
Government Code Section 54230.5 (which are in addition to any
remedy a court may order for a violation of Government Code
Section 54221(f)(1)(H).
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h) The requirements of clauses (i) to (v) of Government Code Section
54221(f)(1)(H), inclusive, shall be contained in a covenant or
restriction recorded against the Site at the time of sale, and that
covenant shall run with the land and be enforceable against any
owner who violates the covenant or restriction and each successor
in interest who continues the violation.
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 action does not result in a binding commitment by the City to authorize or
advance the disposition of the Site, will not result in a direct or indirect physical
change to the environment, and does not constitute an "approval" of a "project"
pursuant to CEQA Guidelines Sections 15004 and 15352; and
3. Subject to the findings above, and without waiving any claim or argument that
the SLA is inapplicable to property dispositions made consistent with the City's
Federally -approved Reuse Plan, and for purposes of forestalling delays or
disputes that might arise if no finding is made under the SLA, the Site
comprised of portions of APN 430-391-03, 430-391-27, 430-391-28, 430-391-
29, 430-391-56, 430-391-58, 430-391-60, 430-391-61, 430-391-62, 430-391-
63, 430-391-34, 430-391-65, 430-391-79, 430-391-80, and 430-391-81 is
hereby declared "exempt surplus land" pursuant to Section 54221(f)(1)(H) of
the Government Code and Section 103(c)(7)(C) of the Draft Updates Surplus
Land Act Guidelines; and
4. The Acting City Manager or their designee is hereby directed to provide a copy
of this Resolution and any other documentation necessary to HCD at least thirty
(30) days prior to the disposition of the Site pursuant to the Draft Updated
Surplus Land Act Guidelines Section 400(e).
PASSED and ADOPTED by the City Council of the City of Tustin at a regular
meeting on 7t" day of May, 2024.
DocuSigned by:
AU'ff1TgELEtJ 6PBARD,
Mayor
Resolution 24-29
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ATTEST:
5 DocuSigned by: DS
fV'i(& a.Su.�,a
ERtADNI.OYASTJDA,
City Clerk
APPROVED AS TO FORM:
ned by:
FZA O-A For
DAWID4&cKEEND I G,
City Attorney
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 24-29 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 7t" day
of May, 2024 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
COUNCILMEMBER RECUSED:
DS
DocuSigned by:
�V'iCa aStti�,a
ER DN6.0 `A5TJDA,
City Clerk
Resolution 24-29
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Clark, Gomez. Schnell (3)
(0)
(0)
(0)
Lumbard, Gallagher (2)