Tustin — 2025-03-18

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION -\nSignificant exposure to litigation pursuant to Government Code §\n54956.9(d)(2): (2 cases)

10. 2024 ANNUAL REPORT ON THE IMPLEMENTATION OF THE GENERAL\nPLAN AND HOUSING ELEMENT The California Government Code requires the\nCity Council to annually review the City’s progress in implementing the Tustin\nGeneral Plan, with specific emphasis on the Housing Element. This includes the\nprogress in meeting Tustin’s share of regional housing needs, and Tustin’s\nefforts to remove barriers that restrict housing development, maintenance, and\nimprovement. With Council authorization, staff will forward the General Plan\nAnnual Report and Housing Element Progress Report to the California\nDepartment of Housing and Community Development and Governor’s Office of\nLand Use and Climate Innovation, as required by the California Government\nCode.\nRecommendation: That the City Council receive and file the General Plan\nAnnual Report and the Housing Element Progress Report, and authorize staff to\nsubmit it to the Governor's Office of Land Use and Climate Innovation and\nCalifornia Department of Housing and Community Development. Fiscal Impact:\nThere is no fiscal impact associated with this item.

11. 2024 TUSTIN LEGACY SPECIFIC PLAN MITIGATION MONITORING AND\nREPORTING PROGRAM ANNUAL REPORT The City Council annually reviews\nits progress in mitigating environmental impacts associated with the\ndevelopment of the former Marine Corps Air Station Tustin, which is currently\nundergoing redevelopment in accordance with the Tustin Legacy Specific Plan.\nThis annual review is based on documents prepared pursuant to the California\nEnvironmental Quality Act, including the Program Final Environmental Impact\nStatement/Environmental Impact Report for the Disposal and Reuse of Marine\nCorps Air Station Tustin, subsequent Supplementals and Addendums to the\nEnvironmental Impact Reports, and their Mitigation Monitoring and Reporting\nPrograms.\nRecommendation: That the City Council receive and file the Tustin Legacy\nAnnual Mitigation Monitoring Status Report. Fiscal Impact: There is no fiscal\nimpact associated with this item.

12. SECOND READING AND ADOPTION OF ORDINANCE NO. 1563 -\nCOMMISSION APPOINTMENT PROCESS California law provides that an\nelected Mayor, with the approval of the City Council, shall make all\nappointments to boards, commissions, and committees unless otherwise\nspecifically provided by statute. Adoption of Ordinance No. 1563 conforms the\nprovisions in the Tustin City Code regarding appointments to the City\ncommissions to the requirements of State law.\nRecommendation: That the City Council have second reading by title only and\n3/14/25, 1:49 PM Regular Meeting of the City Council/Closed Session-4:30 pm/Regular Meeting-6:00 pm\nadoption of Ordinance No. 1563. ORDINANCE NO. 1563 AN ORDINANCE OF\nTHE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, COMMISSION\nAPPOINTMENT PROCESS IN THE TUSTIN CITY CODE Fiscal Impact: There\nis no fiscal impact associated with this item.

13. SELECTION OF A COMMERCIAL REAL ESTATE BROKER FOR MARKETING\nAND SOLICITATION SERVICES FOR PLANNING AREA 10 OF THE PACIFIC\nCENTER EAST SPECIFIC PLAN Request for selection of a commercial real\nestate broker to provide marketing and solicitation services for Planning Area 10\nof the Pacific Center East Specific Plan comprised of approximately 11 acres of\nCity-owned real property.\nRecommendation: Authorize the City Manager to negotiate and execute a\nListing Agreement with Jones Lang LaSalle IP, Inc. (JLL), subject to non-\nsubstantive additions or modifications as may be deemed necessary and/or\nrecommended by the City Attorney. Fiscal Impact: There will be no impact to the\nGeneral Fund given that commission to a commercial real estate broker is paid\nby the buyer or lessee at close of escrow on a land sale or execution of a\nground lease. However, the following tiered commission structure has been\nnegotiated with the recommended broker, JLL, which is consistent with industry\nstandards. Land Sale: 3.0% of gross purchase price up to the first\n$10,000,000.00 2.0% of gross purchase price between $10,000,000.00 to\n$20,000,000.00 1.0% of gross purchase price exceeding $20,000,000.00\nGround Lease: 4.0% of the total lease payments for Years 1-5 2.0% of the total\nlease payments for Years 6-10 *Commission to be capped at first 10 years of\nground lease payments.

2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION -\nInitiation of litigation pursuant to Government Code ? 54956.9(d)(4): (2\ncases)

3. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION –\nSignificant exposure to litigation pursuant to Government Code §\n54956.9(d)(2): (1 case) – related to the fire at the North Hangar owned by\nthe Navy and the release of hazardous materials therefrom

4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS - [Government\nCode § 54956.8] (1 case)\nA. Property Address/Description: APN: 430-481-02, 430-481-03, 430-\n481-04, 430-481-05 Agency: City of Tustin City Negotiators: Aldo E.\nSchindler, City Manager; Nicole Bernard, Assistant City Manager;\nBrian Moncrief, Deputy City Manager/Real Property; Ryan Swiontek,\n3/14/25, 1:49 PM Regular Meeting of the City Council/Closed Session-4:30 pm/Regular Meeting-6:00 pm\nDeputy Director of Real Property; Kenneth Piguee, Real Property\nManager Negotiating Parties: Irvine Company Under Negotiation:\nPrice and Terms of Payment

5. LABOR NEGOTIATIONS - [Government Code § 54957.6]: Agency\nNegotiators: Derick Yasuda, Director of Human Resources and Peter\nBrown, Liebert Cassidy Whitmore Employee Organization: Tustin Police\nOfficers Association (TPOA) Employee Organization: Tustin Police\nManagement Association (TPMA)

6. DISPOSITION AND DEVELOPMENT AGREEMENT WITH TUSTIN LEGACY\nACQUISITION LLC (IRVINE COMPANY) FOR PORTIONS OF DISPOSITION\nAREAS 2B, 2C AND 8 AT TUSTIN LEGACY Request for authorization to\napprove the Disposition and Development Agreement (DDA) between Tustin\nLegacy Acquisition LLC (Irvine Company) and the City for the development of a\nresidential apartment community consisting of 1,336 rental units on\napproximately 19.4 acres with a total of 25% of the residential units affordable\nto lower income households. The DDA specifies the terms and conditions under\nwhich the City owned property, known as portions of Disposition Areas 2B, 2C\nand 8, and bounded by Warner Avenue, Legacy Road, Tustin Ranch Road and\nCompass Avenue in Planning Areas 13 and 14 of Tustin Legacy, will be\nconveyed to and developed by Tustin Legacy Acquisition LLC. The purpose of\nthe DDA is to implement the Reuse Plan for Marine Corps Air Station Tustin\n(MCAS Tustin) and the Specific Plan for Tustin Legacy through the\ndevelopment and maintenance of the property.\nRecommendation: 1. Authorize the City Manager to execute the DDA between\nTustin Legacy Acquisition LLC and the City in the form attached hereto subject\nto any non-substantive modifications as may be recommended by the City's\nspecial real estate counsel or the City Attorney; and 2. Authorize the City\nManager to take all actions and execute all other agreements necessary or\nappropriate to implement the DDA. Fiscal Impact: The property will be disposed\nof in a single takedown for a purchase price of $42,100,000.00. In addition to\nthe purchase price, Tustin Legacy Acquisition LLC will also pay to the City a\nProject Fair Share Contribution of $9,584,714.53 to fund backbone\ninfrastructure improvements at Tustin Legacy. A brokerage commission of 1% of\nthe purchase price will be paid by Tustin Legacy Acquisition LLC to the City's\nbroker, CBRE, at the close of escrow. Upon execution of the DDA, Tustin\nLegacy Acquisition LLC will submit a $5,000,000.00 good faith deposit into\nescrow, which will be applicable towards the purchase price at the close of\nescrow. The Tustin Unified School District (TUSD) created Community Facilities\nDistrict (CFD) 15-2 for portions of Tustin Legacy to fund new facilities such as\nthe new middle school and high school (Legacy Magnet Academy). The source\nof funds for constructing facilities are: 1) statutory and development fees\ncollected when building permits are issued and 2) Community Facilities District\nfees collected on a project-by-project basis either at the time of conveyance to a\ndeveloper or assessed to the property owners in the form of bonds. The\ntransaction has been structured to allow the developer/owner to assume the\nobligation of paying special taxes associated with bonding under CFD 15-2;\nhowever, the City maintains the option, in its sole discretion, to make a\nprepayment of an agreed upon sum at the close of escrow to release the lien of\nCFD 15-2 on the subject property. Negotiation costs, such as legal, third-party\nconsultants and staff costs incurred by the City are reimbursed by Tustin\nLegacy Acquisition LLC in accordance with the Exclusive Negotiation\nAgreement (ENA). Upon execution of the DDA, Tustin Legacy Acquisition LLC\nshall submit an additional City Costs Deposit to bring the deposit account\nbalance up to $50,000.00 to pay for the City's staff costs and third-party out-of-\npocket expenses incurred by the City in implementing the DDA through\nissuance of a final Certificate of Compliance or in the event the DDA is\nterminated prior to conveyance. Tustin Legacy Acquisition LLC shall replenish\nthe City Costs Deposit as needed to cover all of the City's Transaction\nExpenses. This project will be annexed into a future Zone 3 of the City\nCommunity Facilities District 18-01 prior to close of escrow, which has been\nestablished to cover service costs at Tustin Legacy (police and fire; recreation\nprogram services; maintenance of parks, streets, sidewalks and drainage\nfacilities) due to the discrepancy in property tax revenue (3% of the basic levy\n(1.0%) at Tustin Legacy versus approximately 10.5% City-wide). The Rate and\nMethod of Apportionment specific to this project will require City Council\nconsideration and approval at a later date. The negotiated rate attributable to\nmarket rate apartments will be $1,364.28 per dwelling unit with affordable\ndwelling units exempted. The rate will escalate annually based on a specific\nConsumer Price Index with a minimum annual escalation of 2% and a\nmaximum of 3%.

7. 2023-2024 CERTIFIED LOCAL GOVERNMENT ANNUAL REPORT The City of\nTustin is certified by the State of California to carry out the National Historic\nPreservation Act of 1966. As a Certified Local Government (CLG), the City is\nrequired to submit to the California State Office of Historic Preservation an\nannual report reflecting the participation and qualifications of the City’s\nCommissioners and information related to historic preservation actions,\nactivities, and programs. The City of Tustin’s 2023-2024 Certified Local\nGovernment Annual Report (Attachment 1) reflects a reporting period of\nOctober 1, 2023, through September 30, 2024.\nRecommendation: That the City Council: *Receive and file the 2023-2024 CLG\nAnnual Report; and * Direct staff to forward the Annual Report to the State\nOffice of Historic Preservation. Fiscal Impact: All activities completed during this\nreporting period received City Council approval and budget appropriation.

8. 2024 HISTORIC AND CULTURAL RESOURCES ADVISOR ANNUAL REPORT\nAND 2025 HISTORIC AND CULTURAL RESOURCES ADVISOR WORK\nPROGRAM This report provides the City Council with the required annual\nreport summarizing the accomplishments and actions taken by the Planning\nCommission, acting as the Historic and Cultural Resources Advisor, during the\n2024 calendar year and the establishment of the 2025 annual work program.\nRecommendation: That the City Council receive and file the 2024\naccomplishments shown in this report and the 2025 Historic and Cultural\nResources Advisor Work Program, as described in Attachment C. Fiscal Impact:\nAll activities completed during the 2024 calendar year received City Council\napproval and budget appropriation.

9. RESOLUTION DETERMINING THE NEED TO CONTINUE THE PROCLAIMED\nLOCAL EMERGENCY RELATED TO THE NAVY NORTH HANGAR At its\nmeeting on November 10, 2023, the City Council ratified the Acting City\nManager’s Proclamation of Local Emergency related to the fire at the Navy’s\nNorth Hangar and release of chemicals of public health concern, including\nasbestos. At a special meeting of the City Council on January 9, 2024, and at its\nregular meetings on March 5, 2024, April 16. 2024, June 4, 2024, June 18,\n2024, July 16, 2024, August 20, 2024, October 15, 2024, December 3, 2024,\nand January 21, 2025, the Council reviewed and determined the need to\ncontinue the local emergency. This item recommends that the City Council once\nagain review and determine that the need exists to continue the local\nemergency, as required by State law.\nRecommendation: It is recommended that the City Council adopt Resolution 25-\n19 determining the need exists to continue the local emergency related to the\nfire and release of chemicals of public health concern from the Navy's North\nHangar, in the form attached hereto as Attachment 2. RESOLUTION 25-19 A\nRESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, DETERMINING THE NEED TO CONTINUE LOCAL\nEMERGENCY RELATED TO FIRE AND RELEASE OF HAZARDOUS\nMATERIALS FROM NAVY NORTH HANGAR. Fiscal Impact: There is no direct\nimpact from a determination that a local emergency continues to exist.\nHowever, the proclamation of emergency may aid the City in qualifying for\nemergency assistance from Federal, State and local agencies in unknown\namounts.