HomeMy WebLinkAbout06 RECOMMENDATION TO SELECT DEVELOPER FOR THE 11 ACRE COMPETITIVE OFFERING WITHIN THE PACIFIC CENTER EAST SPECIFIC PLAN
Agenda Item_______
Reviewed:
AGENDA REPORT
City Manager_______
Finance Director_______
MEETING DATE:JANUARY 20, 2026
TO:ALDO E. SCHINDLER, CITY MANAGER
FROM:BRIAN MONCRIEF, DEPUTY CITY MANAGER – REAL PROPERTY
SUBJECT:RECOMMENDATION TO SELECT DEVELOPER FORTHE 11 ACRE
COMPETITIVE OFFERING WITHINTHEPACIFIC CENTER EAST
SPECIFIC PLAN
SUMMARY:
Recommendation to select developer Lincoln Property Company to negotiate for the
disposition and development of Planning Area 10 of the Pacific Center East Specific Plan.
The recommendation is made by a staff supported, Mayor appointed Ad HocCommittee
composed of Councilmember Ryan Gallagher and Mayor Pro Tem Ray Schnell.
RECOMMENDATION:
It is recommended that the City Council authorize staff and the City’s broker Jones Lang
LaSalle to negotiate an Exclusive Negotiation Agreementwith Lincoln Property Company
forfuture City Council considerationfor the disposition and development of Planning Area
10 of the Pacific Center East Specific Plan.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
CORRELATION TO THE STRATEGIC PLAN:
Developer selection for the disposition and developmentofPlanning Area 10 of the Pacific
Center East Specific Plancontributes to the fulfillment of the City’s Strategic Plan Goal A:
Economic and Neighborhood Development. Specifically, this item implements Strategy 4,
which is to develop a disposition and entitlement strategy for City-owned property in Pacific
Center East.
BACKGROUND AND DISCUSSION:
OnMarch 4, 2025, the City Council authorized staff to release a competitive offering for
Planning Area 10(approximately 11 acres)of the Pacific Center East (PCE) Specific Plan
(Site) pursuant to City Council Resolution 25-10.
City Council AgendaReport
PCE Developer Selection
January 20, 2026
Page 2
On March 18, 2025, the City Council authorized the City Manager to negotiate and execute
a Listing Agreement with Jones Lang LaSalle IP, Inc. (JLL) to market the Site.
On June 4, 2025, an Offering Memorandum (OM) for the Site was released by JLL. 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 and entitled for office and retail uses, however, proposals for other uses that
may require Specific Plan or General Plan amendments will be considered.” Additionally, the
OM listed that the City “seeks to ground lease or sell the Property to a qualified Developer
with the capacity and ability to deliver a high-quality project that will differentiate itself within
Tustin and Orange County. While current zoning permits office and retail uses, the City
welcomes innovative proposals that align with their aspirations for a landmark development.
Developers are encouraged to be creative with proposals, incorporating premier amenities,
high-quality materials, and other distinguishing features.” Initial proposals were due on
August 12, 2025.
On September 16, 2025, the City Council advanced nine (9) of the thirty-two (32) proposals
received to Round Two of the competitive offering process, as identified below:
- Light Industrial (2): Recommended proposals included advanced manufacturing with
office and retail components. Recommended proposals were not for logistics uses;
- Mix of Uses (2): Recommended proposals included a mix of residential (with 15% total
affordability as required by the Surplus Land Act) and hotel use;
- For-Sale Residential (2): Recommended proposals included a mix of detached and
attached for-sale units (with 15% total affordability as required by the Surplus Land
Act);
- Multi-Family Rental (1): Recommended proposal included garden-style multi-family
rental units (with 15% total affordability as required by the Surplus Land Act);
- Hotel (1): Recommended proposal included hotel use on a portion of the Site; and,
- Mixed Residential (1): Recommended proposal included a mix of for-sale and multi-
family rental units (with 15% total affordability as required by the Surplus Land Act).
Round Two proposals were due on October 17, 2025. A total of eight (8) proposals were
received by the offer deadline, categorized into the following broad land use types:
- For-Sale Residential (2)
- Light Industrial/Advanced Manufacturing (2)
- Mixed Residential (1)
- Multi-Family Rental (1)
- Multi-Family Rental with Hotel (1)
City Council AgendaReport
PCE Developer Selection
January 20, 2026
Page 3
- Hotel (1)
City staff, JLL and the Ad Hoc Committee (Committee) met on November 5, 2025to review
the Round Two proposals. After this review, the Committee recommended that two (2) of the
eight (8) proposals proceed to a Final Round. The two (2) recommended proposals offered
the strongest combination of pricing, fiscal and economic benefits, compatibility with
surrounding land uses, consistency with the existing Specific Plan, and the most streamlined
pathway to entitlement, disposition, and development. The proposals recommended to
proceed to the Final Round are included within the following land use category:
- Light Industrial/Advanced Manufacturing (2): Recommended proposals currently
reflect an advanced manufacturing concept with office, distribution, and retail
components as well as a higher parking ratio than nearby industrial sites.
Recommended proposals are not forlogistics uses.
On November 18, 2025, the City Council accepted and approved the Committees’
recommendation and advanced the two (2) selectedlightindustrial/advancedmanufacturing
proposals to a best and final round. The two finalist developers submitted revised best and
final proposals on December 2, 2025, which were reviewed by the Committeeon December
9, 2025. After reviewing the best and final proposals and receiving feedback from JLL and
City staff, the Committee recommends that the City Council select Lincoln Property Company
to negotiate an Exclusive Negotiating Agreement for future City Council consideration based
on the following:
1. Tenancy – The Lincoln Property Company proposal identifies a “build-to-suit” user, which
will occupy the building and provide more certainty as to the business operations as well
as ability to execute and finance the project.
2. Price – The proposal is reflective of key deal terms with the future tenant incorporating a
desired specification level for build out and rent structure.
3. Design – The exterior aesthetic of the proposed building incorporates enhancements,
which exceed the standard specifications of a typical light industrial/advanced
manufacturing building. In addition, an opportunity exists to provide gateway signage for
the City at the location.
4. Process – Project entitlement, disposition and ultimate development may be accelerated
with a known tenant that has already provided input on project design and buildout.
Further, the proposed use (light industrial/advanced manufacturing) is most consistent
with the current Pacific Center East Specific Plan.
The anticipated timeline of the remainder of the offering process for the Site is as follows:
- Q2 2026 City Council open session: Exclusive Negotiation Agreement (ENA)
consideration
City Council AgendaReport
PCE Developer Selection
January 20, 2026
Page 4
- Q1 2027City Council open session: Disposition and Development
Agreement (DDA) and entitlements consideration
_______________________________________________________________
Brian Moncrief Ryan Swiontek
Deputy City Manager – Real PropertyDeputy Director of Real Property
Attachments:
1. Offering Memorandum