The URL can be used to link to this page

Home My WebLink About01 DEVELOPMENT UPDATES FROM FORMER MARINE CORPS AIR STATION TUSTIN PROPERTY RECIPIENTSDocusign Envelope ID: 894C1 C3C-2C3E-4BFD-9DB8-1 D23481 F1 D1 5 MEETING DATE TO FROM SUBJECT: SUMMARY: Agenda Item AGENDA REPORT Reviewed: Initial City Manager a`�S Finance Director N/A AUGUST 20, 2024 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL ACTING AS THE LOCAL REUSE AUTHORITY FOR FORMER MARINE CORPS AIR STATION TUSTIN ALDO E. SCHINDLER, LOCAL REUSE AUTHORITY EXECUTIVE DIRECTOR DEVELOPMENT UPDATES FROM FORMER MARINE CORPS AIR STATION TUSTIN PROPERTY RECIPIENTS On October 17, 2023, Mayor Pro Tern (then Council Member) Gallagher (co -signed by Council Member Gomez) requested the City Council's consideration to convene a Local Reuse Authority meeting to receive development activity updates from the public/non-profit entities responsible for development at former Marine Corps Air Station Tustin. On November 7, 2023, the entire City Council directed staff to schedule this meeting in 2024. Accordingly, presentations will be provided by the public/non-profit entities responsible for development at former Marine Corps Air Station Tustin and discussion by the City Council acting as the Federally recognized Local Reuse Authority for former Marine Corps Air Station Tustin. RECOMMENDATION: It is recommended that the City Council, acting as the Local Reuse Authority for former Marine Corps Air Station Tustin, take the following actions: Receive presentations from entities responsible for development at former Marine Corps Air Station Tustin 2. Direct staff on communicating information provided during the presentations 3. Direct staff on the desire for future meetings of the Local Reuse Authority or other meeting formats FISCAL IMPACT: Not applicable. Docusign Envelope ID: 894C1 C3C-2C3E-4BFD-9DB8-1 D23481 F1 D1 5 City Council Agenda Report LRA Presentations August 20, 2024 Page 2 CORRELATION TO THE STRATEGIC PLAN: This meeting of the Local Reuse Authority contributes to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development. Specifically, this item implements Strategy 1 which is to develop critical phases of Tustin Legacy. BACKGROUND AND DISCUSSION: Local Reuse Authority Background In 1992, the City was designated as the Local Reuse Authority (LRA) for former Marine Corps Air Station (MCAS) Tustin by the Office of Economic Adjustment (OEA) within the Department of Defense (DOD) and was re -confirmed as the LRA in 1994. LRAs perform a critical role and are responsible for specific tasks in the closure and reuse of former military installations by: • Developing the Reuse Plan for the former base • Allowing maximum community input during the reuse planning process • Developing the homeless accommodation plan • Approving or denying all applications for Public Benefit Conveyances (PBC) • Implementing the Economic Development Conveyance (EDC) — specific to Tustin • Serving as the single point of contact between the Federal Government and community interests during and after the closure process Some of the ongoing duties and powers of the LRA include: • Working with PBC applicants on implementation issues • Amending the Reuse Plan as needed due to changing market/land use interests or lack of performance • Holding public meetings to receive updates or take other actions related to former MCAS Tustin MCAS Tustin Closure Timeline MCAS Tustin was initially identified for closure during the Base Realignment and Closure (BRAG) Commission's 1991 determination but underwent further review and modification of closure in both 1993 and 1995 by the BRAC Commission. Ultimately the base closed in 1999 Docusign Envelope ID: 894C1 C3C-2C3E-4BFD-9DB8-1 D23481 F1 D1 5 City Council Agenda Report LRA Presentations August 20, 2024 Page 3 and a series of transfers ensued which were comprised of PBCs, Homeless Accommodation, and an EDC. Various transfer mechanisms consisting of direct transfers from the federal government to recipients or pass through transfers via the LRA were initiated to dispose of property. Additional information on the closure of MCAS Tustin and disposition process may be referenced in the combined Tustin Legacy Specific Plan/Reuse Plan. The following is a timeline of the milestone dates in the closure and disposition of MCAS Tustin. • 1991: MCAS Tustin listed on BRAC closure list • 1991: City applies for and is designated the LRA • 1996: Original Federal Reuse Plan (redevelopment plan) completed • 1999: City applies for no cost EDC in January • 1999: MCAS Tustin closes in July • 2001: Final EIR/EIS completed by City • 2001: Federal Record of Decision (ROD) issued • 2001: Federal Environmental Baseline Survey completed • 2001/2002: Finding of Suitability to Transfers (FOSTs) issued • 2001/2002: Finding of Suitability to Leases (FOSLs) issued • 2002: City signs EDC conveyance agreement with Federal government for transfer and reuse of former MCAS Tustin in May • 2002+: Ongoing conveyances to EDC and PBC recipients; remediation by the Federal government MCAS Tustin Property Conveyances The City of Tustin received 1,153 acres of the 1,600 acres at MCAS Tustin in 2002 via a no - cost EDC transfer while other entities received the remaining portions of the base. While the City received the majority of land at MCAS Tustin via an EDC, the City has since conveyed or subleased property to other public agencies. These agencies include Tustin Unified School District (40 acres), Rancho Santiago Community College District (15 acres), and South Orange County Community College District (66 acres). A visual representation of the various types of conveyance methods used at MCAS Tustin is shown on the map below. Given the LRA actions on August 11, 2021, Parcel 18 is not Docusign Envelope ID: 894C1 C3C-2C3E-4BFD-9DB8-1 D23481 F1 D1 5 City Council Agenda Report LRA Presentations August 20, 2024 Page 4 currently designated for a Public Conveyance (PBC) although it is shown on the map as such. WAS Tustin Conveyance Map I 6; C Ongoinq Issues and Challenges DESCRIPTION OF PROPERTY ECONOMIC DEVELOPMENT CONVEYANCE GOVERNMENT PARCELS PUBLIC CONVEYANCE TRANSFERRED FEDRAL TO FEDRAL A portion of the City's EDC allocation at the time, 174 acres, consisted of a Lease in Furtherance of Conveyance (LIFOC) which involved property undergoing remediation or investigation by the Navy. Ultimate transfer of these properties to the City is contingent upon stabilized remediation and out of the control of the City. Conveyance delays of the LIFOC property have occurred as a result of changing remediation standards and emerging contaminants. The City also has a separate 22 acre LIFOC that increased to 31.5 acres after various land exchanges, which was constructed and opened to the public in 2020 as Veterans Sports Park. The City has taken on the responsibility of maintaining many of these Navy -owned properties via the LIFOC until the Navy is ready to convey. The original closure documents estimated that all Navy owned properties would be conveyed by 2008, and now there is no anticipated timeline for final conveyance. Market conditions and a global pandemic have proven challenging for all property recipients at former MCAS Tustin. Since 2002 the market for various types of land uses have ebbed and flowed, as well as new product types evolving from the land uses of the early 2000s that Docusign Envelope ID: 894C1C3C-2C3E-4BFD-9DB8-1D23481F1D15 City Council Agenda Report LRA Presentations August 20, 2024 Page 5 were not envisioned by the Reuse Plan/Specific Plan. The COVID-19 pandemic created unprecedented uncertainty and delays that are still being felt to this day. Changing state and federal legislation have led to new standards imposed on the City and other public agencies. For example, changes to the California Surplus Land Act (SLA) have considerably inhibited the City's ability to generate revenue through land sales and in turn to fund future infrastructure and community amenities. In addition, the SLA has significantly expanded the developer selection and disposition timeline, slowing development, and leading to uncertainty in the ability to select qualified developers and control local land -use decisions to implement the Reuse Plan/Specific Plan. Additionally, the Navy North Hangar Fire in November 2023 led to an immense response by the City and Navy to not only extinguish the fire, but effectively clean up the on -site and off - site debris created by the fire. On site and community cleanup continues to this day. February 23, 2021 LRA Meeting On February 23, 2021 the LRA received presentations from former MCAS Tustin property recipients on existing and future development for the first time since the early 2000s. Background on the LRA, roles and responsibilities, conveyance mechanisms, etc were covered extensively at the February 2021 meeting. This can be viewed at: httDs://tustin.aranicus.com/Dlaver/cliD/1947?view id=5&redirect=true. Auaust 11, 2021 LRA Meetin On August 11, 2021, the LRA held an additional meeting focused on Reuse Parcel 18. At this meeting, the LRA made certain findings based on the County of Orange's (County) inadequate responses to the LRA on status of the proposed Regional Park PBC, and the County's refusal to take responsibility for the site by accepting a license or interim lease for maintenance and security of Parcel 18. The LRA also took the following actions: • Adopted LRA Resolution 21-01, revising the Federal Reuse Plan for former MCAS Tustin to exclude the County Regional Park from Parcel 18 • Directed staff to inform the Navy and the Department of the Interior (DOI) of the intent to adopt a revised Federal Reuse Plan for Parcel 18 and to request that the Navy and DOI revoke the County's PBC application • Directed staff to work with the Navy on an amendment to the existing City license or an interim lease for the City/LRA for Parcel 18 • Directed staff to return to the LRA with several Federal Reuse Plan alternatives for Reuse Parcel 18 at a later date Docusign Envelope ID: 894C1 C3C-2C3E-4BFD-9DB8-1 D23481 F1 D1 5 City Council Agenda Report LRA Presentations August 20, 2024 Page 6 City Economic Development Conveyance Property Progress Since 2021 The City of Tustin (City) will be presenting on active and pending project on its EDC property. To provide additional context, the following highlights progress on development projects and public projects since the last LRA meeting in 2021: Flight (Office) Levity (For Sale Residential) The Landing (For Sale Residential) Confluent (Senior) The Irvine Company (Apartments) Shell Complete, 20% Leased Complete, Sales Ongoing DDA, Horizontal Work Underway The Annex Improvements Alley Grove Neighborhood D South Phase 1 Neighborhood D South Phase 2 Package 1 Bark Barracks Neighborhood D South Phase 2 Package 2 Armstrong Avenue Pedestrian Bridge Tustin Legacy Park Phase 2 South Hangar Improvements August 20, 2024 Meeting N/A N/A Interiors Complete & Fully Leased Complete & Sold Out Complete & Sold Out Ongoing Negotiations (ENA) Ongoing Negotiations (ENA) In Design In Design Under Construction N/A N/A N/A N/A N/A In Design Complete Complete Complete Under Construction Under Construction In Design In Design In Design In Design $33M $41M $85M (estimate) TBD TBD $1.4M $3.5M $15.2M $10M $1.5M TBD TBD TBD TBD The public/non-profit entities responsible for development at former MCAS Tustin were each invited to present development updates to the LRA: Docusign Envelope ID: 894C1 C3C-2C3E-4BFD-9DB8-1 D23481 F1 D1 5 City Council Agenda Report LRA Presentations August 20, 2024 Page 7 • Orange County Rescue Mission o Homeless Accommodation • South Orange County Community College District o Advanced Technology Education Park (Part of City EDC Property) • Rancho Santiago Community College District o Sheriff Training Academy (Part of City EDC Property) • Tustin Unified School District o Elementary School PBC (Heritage Elementary) o Legacy Magnet Academy (Part of City EDC Property) • County of Orange o Social Services Facility PBC (Tustin Family Campus) o OC Animal Care Facility (Part of City EDC Property, subleased from SOCCCD) • City of Tustin o EDC Development o Community Park PBC (Veterans Sports Park) All entities except for the County of Orange accepted the invitation and will be making presentations to the City Council acting as the LRA.