HomeMy WebLinkAbout08 RESOLUTION DECLARING ASSESSOR’S PARCEL NUMBERS 430-481-07, 430-481-08, 430-481-09, 430-481-10Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7
MEETING DATE
TO
FROM
OCTOBER 1, 2024
ALDO E. SCHINDLER, CITY MANAGER
Agenda Item 8
Reviewed. Initial
City Manager a`V�
Finance Director N/A
RYAN SWIONTEK, DEPUTY DIRECTOR OF REAL PROPERTY
SUBJECT: RESOLUTION DECLARING ASSESSOR'S PARCEL NUMBERS
430-481-07, 430-481-08, 430-481-09, 430-481-10 AND 430-481-11
AS SURPLUS LAND
SUMMARY:
Resolution 24-69 will declare Assessor's Parcel Numbers 430-481-07, 430-481-08, 430-
481-09, 430-481-10 and 430-481-11 as surplus land pursuant to California Government
Code Section 54221.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt Resolution 24-69: A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY
COMPRISED OF ASSESSOR'S PARCEL NUMBERS 430-481-07, 430-481-08,
430-481-09, 430-481-10 AND 430-481-11 AS SURPLUS LAND PURSUANT TO
CALIFORNIA GOVERNMENT CODE SECTION 54221.
2. Authorize the City Manager to circulate a Notice of Availability and submit the
appropriate documentation to the California Department of Housing and Community
Development in connection with the Resolution.
FISCAL IMPACT:
Adoption of Resolution 24-69 itself does not have a financial impact to the City, however
noticing and negotiating disposition of property as required under the Surplus Land Act may
have financial impacts to the City.
CORRELATION TO THE STRATEGIC PLAN:
The declaration of Surplus Land for Assessor's Parcel Numbers 430-481-07, 430-481-08,
430-481-09, 430-481-10 and 430-481-11 contributes to the fulfillment of the City's Strategic
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City Council Agenda Report
Surplus Land Declaration
October 1, 2024
Page 2
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:
The Surplus Land Act (SLA) defines the process for local agencies to follow when disposing
of surplus parcels of land owned in fee that are no longer needed for the City's use. The SLA
sets general timelines for posting notification of available surplus property, defines the
process for negotiating with an affordable housing developer in the event one expresses
interest, and the process for disposition absent any notification of interest or in the event
negotiations do not result in a sale to a qualifying affordable housing developer.
Assembly Bill 1486 (Ting, 2019) significantly amended the terms of the SLA, as well as added
substantial penalties for noncompliance. The California Housing and Community
Development (HCD) Surplus Land Act Guidelines (HCD Guidelines) for compliance with the
SLA were published in April 2021.
Assembly Bill 480 (Ting, 2023) and Senate Bill 747 (Caballero, 2023) clarified elements of
the SLA and provided new or consolidated exemption options for surplus land. HCD has also
issued Final Updated Surplus Land Act Guidelines (Final Updated SLA Guidelines) to reflect
new legislation which were adopted on August 1, 2024.
Prior to January 1, 2020, the City did not consider any City owned property within the Tustin
Legacy Specific Plan area as "surplus property" for a variety of reasons, including:
- Method of Acquisition: The City and the United States of America executed a
Memorandum of Agreement in May 2002 that conveyed a vast majority of former Marine
Corps Air Station Tustin (MCAS Tustin) to the City. The conveyance method was an
Economic Development Conveyance (EDC) that requires the City to focus on job creation
to replace those lost due to the base closure and housing for the surrounding community
in accordance with a federally approved Reuse Plan for former MCAS Tustin. The City
believes that this "contract" between the City and United States of America should
supersede any state law requirements for disposition of property owned by the City.
- Infrastructure Requirements: Tustin Legacy requires the installation of the modern
major and local infrastructure needed as part of the redevelopment of a former military
base at significant cost to the City. Major drainage, streets, parks and utilities must be
installed prior to advancing new development of residential neighborhoods and
commercial employment centers. Remnant parcels of "surplus property" that a public
agency no longer has an intended use for typically involve smaller parcels already
connected to existing infrastructure, and does not take into account property, such as City
owned property within the Tustin Legacy Specific Plan area, that the City has an
established intended use for per a federal Reuse Plan and an adopted Specific Plan and
requires significant remaining infrastructure investment.
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City Council Agenda Report
Surplus Land Declaration
October 1, 2024
Page 3
- Revenue Needed to Continue with Development: The City, acting as Executive
Developer for Tustin Legacy, must have the ability to generate revenue from land sales
or lease proceeds for reinvestment purposes to continue to advance residential and non-
residential development progress at Tustin Legacy. A significant portion of revenues
generated from land sales at Tustin Legacy are essential as they are reinvested back into
the base to install the major infrastructure needed to open up more parcels for
development, and to provide amenities like parks, schools and public services for the
Tustin Legacy community. A portion of revenue at Tustin Legacy is also used for projects
in other areas of the City, to pay down unfunded liabilities, or to help offset revenue losses
that occur during an economic downturn or a crisis such as the COVID-19 pandemic.
Given the City's role as Executive Developer for Tustin Legacy, revenue generation is a
necessary government function to advance development and meet its financial
obligations to create a mix of residential, institutional, employment opportunities and
parks and open space.
Absent a specific exemption for former military bases, or case law over conflicts with other
laws and/or federal base closure law preemption, the SLA appears to place all City owned
portions of Tustin Legacy within the newly defined meaning of "surplus land" and therefore
the City is approaching all dispositions as subject to the SLA. While the City maintains the
assertion that due to the direct conveyance of land from the federal government, Tustin
Legacy should not be subject the SLA, the City has not challenged the SLA on this basis.
Therefore, the City has chosen to comply with the law as prescribed in order to avoid tying
property up in lawsuits and continue to expedite development of Tustin Legacy until such
time as further clarification or judgment is rendered related to Federal Reuse Plans and
former military bases, given the threat of substantial penalties for noncompliance (30%-50%
of final land sale or lease price).
Should the City Council adopt Resolution 24-69, staff will then release the Notice of
Availability (NOA) as required by the SLA and Final Updated SLA Guidelines to the entities
listed in California Government Code 54222.
Once the NOA is released, a 60-day period begins for entities to respond to the NOA with a
notice of interest to purchase or lease the property. If any notices of interest are received
during the 60-day period, the City shall negotiate in good faith for up to 90 days with one or
more responding entities to determine whether price and terms for the sale or lease of the
property can be agreed upon.
If no responses are received during the 60-day period, or if negotiations during the
subsequent 90-day period are unsuccessful, the property may be disposed of without further
SLA implications. The only remaining requirement is that the City must record a covenant
prior to the sale or lease of the property indicating that if ten (10) or more residential units are
ever constructed on the property, fifteen (15) percent of the total amount of units shall be
provided as affordable to lower income households.
Disposition documents and entitlements would be brought before the City Council at a future
date with either (1) an entity that responded to the NOA, or (2) a future competitive process
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City Council Agenda Report
Surplus Land Declaration
October 1, 2024
Page 4
or sole source process for a development project that can occur after the NOA process is
completed.
Signed by:
j�ailn, �Wib�
Ryan Sw ontek
Deputy Director of Real Property
Attachments:
1. Parcel Map 430-48
2. Resolution 24-69
Signed by:
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Kenneth iguee
Real Property Manager
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THIS MAP WAS PREPARED FOR ORANGE
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THE ASSESSOR MAKES NO GUARANTEE AS TO
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FOR OTHER USES. NOT TO BE REPRODUCED,
ALL RIGHTS RESERVED.
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RESOLUTION NO. 24-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL
PROPERTY COMPRISED OF ASSESSOR'S PARCEL
NUMBERS 430-481-07, 430-481-08, 430-481-09, 430-481-10
AND 430-481-11 AS SURPLUS LAND PURSUANT TO
CALIFORNIA GOVERNMENT CODE SECTION 54221.
WHEREAS, the City of Tustin (City) owns certain real property consisting of
approximately 24 acres at Tustin Legacy (former Marine Corps Air Station Tustin)
comprised of Assessor's Parcel Numbers (APNs) 430-481-07, 430-481-08, 430-481-09,
430-481-10 and 430-481-11 (the "Site"); and
WHEREAS, in 1992, the City was designated by The United States Department of
the Defense as the Lead Agency or Local Reuse Authority for preparation of a reuse plan
for MCAS Tustin in order to facilitate the closure of MCAS Tustin and its reuse in
furtherance of the economic development (including the creation of jobs and housing) of
the City and surrounding region; and
WHEREAS, in May 2002, The United States of America approved an Economic
Development Conveyance (EDC) and agreed to convey approximately 1,153 acres of
former MCAS Tustin to the City; and
WHEREAS, on May 13, 2002, a total of approximately 977 acres were conveyed
by The United States of America to the City by quitclaim deed, in accordance with the
provisions of a Memorandum of Agreement by and between The United States of America
and the City dated May 13, 2002, and
WHEREAS, the remaining approximately 177 acres of the 1,153 acres were made
subject to a ground lease by the City from The United States of America (also known as
a Lease in Furtherance of Conveyance) and portions thereof have subsequently been
conveyed to the City pursuant to subsequent quitclaim deeds; and
WHEREAS, pursuant to the City's role and its agreements made as the Local
Reuse Authority under Federal law, the Site (and all portions of Tustin Legacy owned or
to be owned by the City) are assets to be held, used, and portions sold or leased to enable
the City to meet its responsibilities to fund ongoing and future infrastructure, development
and maintenance costs at Tustin Legacy that are borne by the City as Executive
Developer in order to provide housing, employment, public services and recreation to City
residents; and
WHEREAS, the City, acting as Executive Developer for Tustin Legacy, carefully
plans neighborhoods within the 1,600-acre footprint to account for infrastructure costs,
market conditions, and community benefits prior to initiating a disposition process for
certain parcels; and
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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 4,258
residential units (ownership and rental) constructed or under construction to date, 688 of
which are deed restricted for various levels of affordability; and
WHEREAS, the Site, located within portions of Planning Areas 13-14 of the Tustin
Legacy Specific Plan, is categorized as "Mixed -Use Urban" with a limited amount of
residential units. Except as permitted by any applicable State law such as density bonus,
a Specific Plan amendment may be necessary for residential development of the Site at
levels above the allocated number of residential units, along with any other applicable
required entitlements and infrastructure improvements; and
WHEREAS, the California Legislature established the Surplus Land Act (SLA) for
local agencies to follow when disposing of surplus properties no longer needed for
government use or for revenue generation; and
WHEREAS, prior to January 1, 2020, the City did not consider the Site (or any
portion of Tustin Legacy) to be "surplus land" as defined in the SLA because it considered
the development of the Site (and all of Tustin Legacy) consistent with the Federal Reuse
Plan to be a continuing City use of the property, and because such development is
consistent with the deed conveyance mechanism whereby the City received the property
with restrictions from The United States of America as part of the Defense Base
Realignment and Closure Act of 1990 as amended; and
WHEREAS, on October 9, 2019, California Governor Gavin Newsom signed
Assembly Bill 1486 (Ting) into law, making substantive amendments to the SLA effective
January 1, 2020; and
WHEREAS, the amended SLA requires 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 Site (and all of Tustin Legacy) is not "surplus land" in any
traditional sense because the funds received from sales and leases of portions of Tustin
Legacy, and the uses to which the property are put after such sale or lease, are essential
to accomplish the Federally- and City -approved military base Reuse Plan, including but
not limited to, providing the funding for the significant cost of infrastructure needed to
accomplish the planned redevelopment of a former military base; and
WHEREAS, although the City contends that it is not required to do so for the
reasons referenced herein, the City will send a written Notice of Availability (NOA) for the
Site by electronic mail to all of the entities required by Government Code section 54222;
and
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WHEREAS, notwithstanding and subject to the foregoing, the City Council is
hereby declaring the Site to be "surplus land" for purposes of California Government Code
section 54221(b)(1) and will participate in good faith in the process required by the
Surplus Land Act; and
WHEREAS, as contemplated by Government Code Sections 54223 and 54227, in
the event no agreement is reached between the City and any interested entity/agency
after a good faith negotiation period of ninety (90) days, the Site may be disposed of
without further regard to the SLA, except that the City will record a covenant indicating
that if ten (10) or more residential units are ever constructed on the Site, fifteen (15)
percent of the total number of units shall be provided as affordable to lower income
households.
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. This action results in no binding commitment by the City to authorize or
advance the disposition of the Site, will not result in a direct or indirect physical
change in 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, the Site comprised of APNs 430-481-07, 430-
481-08, 430-481-09, 430-481-10 and 430-481-11 is hereby declared "surplus
land;" and
4. The City Manager or designee is authorized to circulate an NOA and submit
any required documentation to HCD in connection with this Resolution, and to
take such other actions as are required or appropriate to implement such
direction.
PASSED and ADOPTED by the City Council of the City of Tustin at a regular
meeting on 1st day of October, 2024.
AUSTIN LUMBARD,
Mayor
ATTEST:
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ERICA N. YASUDA,
City Clerk
APPROVED AS TO FORM:
Signed by:
DANDIG,
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. 24-69 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 1st day
of October, 2024 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
ERICA N. YASUDA,
City Clerk