City Council

11.\nPURCHASE AND SALE AGREEMENT WITH MARINERS CHURCH FOR\nAPPROXIMATELY 3 ACRES OF DISPOSITION AREA 8 AT TUSTIN\nLEGACY Request for authorization to approve a Purchase and Sale\nAgreement between Mariners Church and the City for the sale of\napproximately 3.324 acres of City-owned property located within a portion\nof Disposition Area 8 at Tustin Legacy. The property is generally bounded\nby Warner Avenue, future Veterans Way, and future John Johnson Way.\nThe purpose of the Purchase and Sale Agreement is to implement the\nReuse Plan for Marine Corps Air Station Tustin and the Specific Plan for\nTustin Legacy through the development and maintenance of property.\nRecommendation: 1. Approve and authorize the City Manager to execute\nthe Purchase and Sale Agreement between Mariners Church and the City\nin the form attached hereto subject to any non-substantive modifications\nas may be recommended by the City's special real estate counsel or the\nCity Attorney; and 2. Authorize the City Manager to take all actions and to\napprove and execute all other agreements, attachments and documents\nnecessary or appropriate to complete the transaction. Fiscal Impact: The\npurchase price for the property is $4,000,000. In addition to the purchase\nprice, Mariners Church will pay to the City a Project Fair Share\nContribution of $1,640,217.83 to fund backbone infrastructure\nimprovements at Tustin Legacy. The Project Fair Share Contribution will\nbe payable at closing or may be deferred until the earlier of 12 months\nafter closing or when permits are pulled for construction, and if deferred,\nwill accrue interest at the Wall Street Journal Prime Rate. Within three (3)\ndays of the effective date of the Purchase and Sale Agreement, Mariners\nChurch will also submit a $100,000.00 deposit into escrow, which will be\napplicable to the purchase price at the close of escrow. Each party will\nalso be responsible for paying customary escrow and closing costs.\nFurther, the City will not be required to pay any real estate commissions\nfor the broker representing Mariners Church. The Property will be\nannexed into a future Zone 4 of the City Community Facilities District\n2018-01, which has been established to cover service costs at Tustin\nLegacy (such as police and fire; recreation program services;\nmaintenance of parks, streets, sidewalks and drainage facilities). The\nRate and Method of Apportionment specific to this transaction will require\nCity Council consideration and approval prior to the close of escrow. The\nnegotiated rate will be $0.50 per square foot of permitted building square\nfootage. The rate will escalate annually based on a maximum annual\nescalation of 2%.