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Home My WebLink About11 RECOMMENDATION OF PROPOSALS TO PROCEED TO ROUND TWO FOR THE COMPETITIVE OFFERING FOR APPROXIMATELY FOR 52 ACRES OF CITY-OWNED REAL PROPERTY WITHIN NEIGHBORHOOD EDocusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D MEETING DATE TO FROM Agenda Item 11 AGENDA REPORT Reviewed: Mitial City Manager a� Finance Director N/A NOVEMBER 4, 2025 ALDO E. SCHINDLER, CITY MANAGER BRIAN MONCRIEF, DEPUTY CITY MANAGER — REAL PROPERTY SUBJECT: RECOMMENDATION OF PROPOSALS TO PROCEED TO ROUND TWO FOR THE COMPETITIVE OFFERING FOR APPROXIMATELY 52 ACRES OF CITY -OWNED REAL PROPERTY WITHIN NEIGHBORHOOD E (PLANNING AREAS 9-12) OF THE TUSTIN LEGACY SPECIFIC PLAN SUMMARY: Three (3) proposals are recommended for City Council consideration to proceed to Round Two for the competitive offering for approximately 52 acres of City -owned real property within Neighborhood E (Planning Areas 9-12) of the Tustin Legacy Specific Plan. The recommendation is made by a staff supported, Mayor appointed Ad -Hoc Committee composed of Mayor Austin Lumbard and Council Member Ryan Gallagher. RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Authorize staff and the City's broker CCP Real Estate Advisors to inform three (3) proposers from the competitive offering for approximately 52 acres of City -owned real property within Neighborhood E (Planning Areas 9-12) of the Tustin Legacy Specific Plan that they will be proceeding to Round Two; and 2. Authorize staff to further reduce the number of proposals that will ultimately be recommended to the City Council for consideration at a later date. FISCAL IMPACT: There is no fiscal impact associated with this item. CORRELATION TO THE STRATEGIC PLAN: The recommendation of proposals to proceed to Round Two contributes to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development. Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D City Council Agenda Report Recommendation of Proposals to Proceed to Round Two November 4, 2025 Page 2 Specifically, this item implements Strategy 1, which is to develop critical phases of Tustin Legacy. BACKGROUND AND DISCUSSION: On May 20, 2025, the City Council authorized staff to release a competitive offering for approximately 52 acres of City -owned real property within Neighborhood E (Planning Areas 9-12) of the Tustin Legacy Specific Plan pursuant to the procedures approved by the City Council in Resolution 25-10. On June 30, 2025, an Offering Memorandum (OM) for the Site was released by CCP Real Estate Advisors (CCP). The OM (included as Attachment 1) included a general overview of the site, the proposed timeline and process for the offering, and submittal requirements. The OM noted that the site is "currently zoned for retail, service commercial, entertainment, hospitality, office, and research and development uses within the Tustin Legacy Specific Plan; however, proposals for other uses such as complimentary residential that may require Specific Plan or General Plan amendments will be considered. "Acccordingly, many potential developers expressed interest in a mixed -use residential component. A total of twelve (12) responses were received by the offer deadline (September 12, 2025), which proposed projects that varied in scope and land use. The proposed responses were comprised of the following: • Eight (8) responses proposed projects that utilize the full site area (approximately 52 acres) with a mix of retail, entertainment, office, hospitality, and residential (for -sale as well as rental uses); • Two (2) responses proposed projects that utilize the full site (approximately 52 acres) for exclusively commercial use; • One (1) response proposed a project that utilizes a portion of the site (approximately 11 acres) for entertainment use; and • One (1) response expressed interest in the site for an entertainment use without specific project details. City staff, CCP and the Mayor appointed Ad -Hoc Committee composed of Mayor Austin Lumbard and Council Member Ryan Gallagher (Ad -Hoc) met on October 15, 2025, to review all responses. CCP identified six (6) of the twelve (12) responses received as being best aligned with the City's vision for the site. After receiving feedback from CCP and City staff, the Ad -Hoc is recommending that three (3) of those twelve (12) responses proceed to Round Two. The three (3) recommended responses propose projects with a range of uses that consist of a mix of retail, entertainment, office, hospitality, and residential uses on the entirety of the approximately 52-acre site. Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D City Council Agenda Report Recommendation of Proposals to Proceed to Round Two November 4, 2025 Page 3 The anticipated timeline of the remainder of the offering process for the site is as follows: - Q4 2025 Round Two process - Q1 2026 City Council open session: Proposal/Developer selection - Q2 2026 City Council open session: Exclusive Negotiation Agreement (ENA) consideration Q1 2027 City Council open session: Disposition and Development Agreement (DDA) and entitlements consideration Signed by: Signed by: 1 at Attv"W4 ndHWWMIef RyaWS iffift Deputy City Manager — Real Property Deputy Director of Real Property Attachments: 1. Offering Memorandum 2. Offering and Recommendations Summary .. —._ t� _" ..F - . '.� x�1 r � � � s'1 _. ' .�._'-`, ��^' ^r�.a �sr iF-Tl'r 'r i s�.s � - 1 .�� .� �� w•� _ � s► _ - = r � �� .QQ_-. F _ �. � �,�� r �- • _- . -= .�� r, "��. , � — I E- SALE�± 1OA-�P T =.r CALI RPPQRTJNITY FAR L -ETATY B- Ulf, lpil. _'q I too'. 41- or - • T .., Am -gloom 'Tlp_�r.�" TUSTIN LEGACY, TUSTIN, CA 92782 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D Tustin Legacy I Red Hill Ave & Warner Ave I Tustin, CA 92782 SITE OVERVIEW • Available for commercial, retail, entertainment, hotel, and mixed -use development. • Located within the 1,600 acre Tustin Legacy Master Plan which includes parks, commercial development and various densities of housing totaling 4,258 units. • Tustin Legacy's main shopping center "The District" opened in 2007 and covers 1 M square feet and is home to Costco, Target, Lowe's and many more. It attracts 1.3M visitors a month (source: Placer Labs, Inc.). • The site is adjacent to the Irvine Business Complex which is home to 4,500 businesses employing 110,000 people. • Across Tustin Legacy Park and the newly built Bark Barracks dog park lies the Flight creative office complex comprising 386,000 square feet. • Located across the street from The Row at Redhill totaling 1,100 units and Broadstone totaling 1,221 units. F7 SRS r r I-1 REAL ESTATE ADVISORS 2 wa inn„„u„li r�r � � i �• �'` •'{ n '~" - yi Tr wr t_ A f mot f _ { THE LANDING 4UO SINGLE FIAMILY HOMES - COMPLETED AND OCCUPIED SOUTH MMUNITY COLLEGE �RES - 2 EDUCATIONAL 411 ENTITLED MULTI -FAMILY ��` IRVINE COMPANY - 1,336 UNITSI, , _ �ryrf lit r � . '.:.�.^ .. • r • .. 0,11 s ir`it . ` ' • as 4 er�e.�i +a t{,+s .. fir• .n-'I' r f q .- .-� �� N Court _.:� kk rr i � kf X • J,i'. {t'' Columbus Square. rim 1,075 Units I 1 Tustin Field 1'1 Tustin. •••j r IT 5D �^ Vet rant �;- ` RFamily 189 Units campus Spo s Par Leg' Gy �I Annex ag t ` _ .r.semc4ktwrrf - Acad ,..' `� DERM •� , ��4+�� .i'. � �:'•_ ��\�� l •�� S � � � ATEP Le�lty 18 Units Greenwood ' { , Victory 375 Units ' ® ry Columbus -Present Status '7 R OC �~ Park Grove real Core Anton i �Tustin Legacy` TEP R C •: 465 Units • Legacy ' � l� , �..•• 25 Units ❑ , i a -rM rm Sheriff y - a. :ee4 m.P a-ytr„';u Residential(4,258units) L�v _' Re Now ��i��y . tr. . •� Ie•�- i t ' _ 4 art - g n4 . � ,{ 'y�31r +i � r+ex Commercial 1.6M SF # Row at Eo" onfluent I } �WIThe Amalfi � Red Hill e A o`1 ;� l •rr ' l � �- {i'. 1,100 Units ° 33 UnitsIlk c,. ® Public & Institutional { y r 1,336 Units ;` : Columbus The Irvine Co Y' — 1 f �, r Landing DDA = .Q stnc.t { .+e �? Grope Units {Irvine}}Y'� ® ! Park (over 90 acres) Rai Broadstone �i .y_4= M� 402 Units ►e�: Arden 1 Tustin �€-'- '°° 6.. F'11 71 1,221 Units Le ac I�'h ��-nueycrove _1 °� o ? ❑Undeveloped & l g Y e Shelter Not Controlled by City ...... LIFOC(Navy Property) �� .� .� .s+ = ;1i. ;f,•� �, - �1 ra:ir a 3 Boundary �r a 1�� y� "■ c+i�i , �� '� J r 1� �1' •. e . yti`t, ; y�e� -A� 1