Council Meetings > 2006 > 2006May > Reports > LRA 06-003

May 16, 2006

 

 

 

SUBJECT: Convene the Onizuka Air Force Station Local Redevelopment Authority (LRA) to Approve the Onizuka LRA Reuse Planning Process and to Approve the Draft Advertisement Requesting Notices of Interest in Surplus Onizuka Property

 

REPORT IN BRIEF

Staff recommends that City Council, serving as the Local Redevelopment Authority (LRA) for Onizuka Air Force Station (AFS), approve the Onizuka LRA reuse planning process (Attachment A, Overview Project Plan).  The LRA is responsible for preparing a Reuse Plan, the primary planning document for base redevelopment.  The Reuse Plan will serve as a guide for the Air Force Environmental Impact Statement (EIS) which will include the Department of Defense (DOD) Record of Decision (ROD) describing how surplus Onizuka AFS property will be transferred.  The overall approach of the City as it pursues the reuse planning process will be to keep the public informed and solicit input in order to develop a Reuse Plan that reflects local and regional desires.

 

BACKGROUND

On May 16, 2005 the Secretary of Defense published in the Federal Register and transmitted to the Congressional Defense Committees and the Defense Base Closure and Realignment Commission a list of military installations that the Secretary of Defense recommended for closure or realignment. Onizuka AFS was included in the list of military installations recommended for closure and the recommended closures have since been confirmed.

 

On January 10, 2006 the Sunnyvale City Council unanimously approved Resolution 200-06 requesting DOD, through the Office of Economic Adjustment (OEA), recognize and designate the City of Sunnyvale as the LRA for Onizuka AFS.  Staff mailed a letter of request and a certified copy of the resolution to OEA for consideration on January 30, 2006.  DOD formally recognized the City of Sunnyvale as the LRA on April 6, 2006.

 

EXISTING POLICY

Legislative Management Sub-Element, Goal 7.3C: Participate in intergovernmental activities, including national, state and regional groups, as a means to represent the City’s interests, influence policy and legislation, and enhance awareness.

 

DISCUSSION

The City of Sunnyvale, serving as the Onizuka LRA, is initiating a reuse planning process to determine potential civilian uses of surplus Onizuka AFS property under federal Base Realignment and Closure (BRAC) law.  Onizuka LRA reuse planning efforts must be closely coordinated with the Air Force and must proceed according to established BRAC reuse planning timelines and requirements.  Staff recommends the Onizuka LRA approve the proposed reuse planning process (Attachment A, Overview Project Plan). 

 

This is the process the Onizuka LRA will follow in planning for the civilian reuse of surplus Onizuka AFS property.  The process sets forth a comprehensive approach to planning for redevelopment of the base and addresses the Onizuka LRA’s legal requirements.  Clear definition of the reuse planning process will keep the community and stakeholders informed and provide clear direction to Onizuka LRA staff implementing the process.

 

Preparation of the EIS by the U.S. Air Force is dependent upon establishing alternative reuse scenarios (including identification of a preferred land use strategy) for Onizuka AFS.  This project will lead to a series of proposed reuse strategies which can be supported by the community and meet established federal, state and local guidelines and policies.  In order to complete the required work, the City of Sunnyvale through the Onizuka LRA, proposes to fulfill the guidelines and policies in the following manner:

 

  • Phase 1 – Initiating Public Outreach, Conducting Preliminary Property Analysis, and Selecting Reuse Alternatives
  • Phase 2 – Completing the Reuse Plan and Submission of the Reuse Plan for Review by the Department of Housing and Urban Development (HUD) and DOD
  • Phase 3 – Implementing a Reuse Strategy following the DOD Record of  Decision

Public outreach and participation will be integrated into all phases of the reuse planning effort.  The three phases in the Onizuka LRA’s reuse planning process are discussed below.

 

Phase 1 of Onizuka LRA Reuse Planning Process : Initiating Public Outreach, Conducting Preliminary Property Analysis,  and Selecting Reuse Alternatives

Phase 1 can be further broken down into three primary deliverables:

1)     Public Outreach

2)     Preliminary Property Assessment

3)     Conceptual Reuse Plan

Public Outreach

Public outreach is focused on initiating community dialog to facilitate input during the entire reuse planning process.  This phase will include substantial community involvement through formation of a Citizen’s Advisory Committee (CAC) to create a public body for discussion and to advise the LRA on issues related to the community and economic development potential and civilian reuse of Onizuka AFS.  Focus groups, surveys and workshops will also solicit public input during Phase 1 to help guide the CAC and Onizuka LRA throughout the reuse planning process.

 

The local screening process will be initiated after completion of the federal property screening process by the Air Force in mid-May.  The BRAC federal screening process is an opportunity for other federal agencies to express an interest in a portion of the Onizuka AFS property.  On April 11, 2006 the Onizuka LRA reviewed and took a position on the Department of Veterans Affairs (VA) interest in a portion of the Onizuka site.  The DOD had anticipating posting the surplus notices in the Federal Register on May 9. As of May 11, 2006 the Air Force has not yet posted a surplus property notice for Onizuka AFS in the Federal Register. However, staff anticipates the notice early in the week of May 15 and is therefore proceeding with requesting LRA approval of the proposed planning process.

 

If the Onizuka property is declared surplus, the Onizuka LRA will initiate the local screening process through outreach to State and local interests, as well as representatives of the homeless, which may be interested in pursuing a public benefit conveyance (PBC) or homeless assistance conveyance, for use of all or part of the property.  PBCs are federal property disposition statutes authorizing the disposition of surplus property for specific uses, with an endorsement of selected federal agencies, to qualified state, regional or local recipients, often at no-cost.  Uses that would allow for a PBC include education, utilities, health facilities, churches, historic monuments, parks and recreation, and wildlife conservation.  Homeless assistance conveyances are made in accordance with HUD's acceptance of the LRA's Reuse Plan submission to meet local homeless needs, at no cost, directly to a homeless provider or to the LRA.

 

According to BRAC regulations, once the federal property screening process is completed and DOD publishes a determination regarding surplus status in the Federal Register, the Onizuka LRA has up to 30 days to publish an advertisement requesting Notices of Interest (NOIs) and initiating the local screening process. A draft advertisement requesting NOIs and NOI Form are attached for Onizuka LRA review (Attachments B and C).   The ad is consistent with HUD’s revised and updated Guidebook on Military Base Reuse and Homeless Assistance which was distributed on May 4, 2006 at the BRAC conference held in Atlanta, Georgia. Federal guidelines require that the advertisement specify the period during which the LRA will receive NOIs (90-180 days as designated by the LRA). The draft advertisement proposes a 180-day noticing period to provide adequate time to meet subsequent BRAC deadlines.  A workshop about filing NOIs, as required by HUD and noted in the advertisement, will be held in the July/August timeframe. The specific date and location are pending, but will be included in the final advertisement.

 

In addition to publication of the advertisement, the Onizuka LRA will directly contact homeless assistance providers in the vicinity of Onizuka AFS to solicit NOIs.

 

Preliminary Property Assessment

The preliminary property assessment involves examining current conditions to help guide potential future civilian uses.  Onizuka LRA staff will conduct research on the following topics:

 

  • Existing zoning, infrastructure and utilities
  • Existing workforce and dislocated workers
  • Homeless needs assessment
  • History of the base and historic preservation
  • Preliminary environmental assessment (interpretation of DOD Environmental Condition Report)
    •

     

    The preliminary assessment will help guide the Onizuka LRA and CAC toward appropriate civilian reuse alternatives for surplus Onizuka AFS property.

     

    Conceptual Reuse Plan

    The preliminary property assessment, public outreach community input, report on NOIs received, and selected reuse alternatives will be incorporated to produce a conceptual Reuse Plan for Onizuka AFS.  The conceptual reuse plan will guide further analysis by identifying reuse alternatives.  Staff anticipates Phase 1 completion by January 31, 2007.

     

    Phase 2 of Onizuka LRA Reuse Planning Process: Completing the Reuse Plan and Submission for Review to HUD and DOD

     

     

    Phase 2 of the reuse planning process involves further analysis of the reuse alternatives selected in Phase 1, selection of the preferred reuse alternative and submission of the Reuse Plan for review by HUD and DOD.  The following tasks will be accomplished in Phase 2:

    • Future zoning, infrastructure and utilities future use forecasting
    • Workforce transition plan including job creation goals
    • Financial analysis of reuse alternatives
    • Economic benefit study
    • Historic preservation plan
    • CEQA environmental review and cleanup plan
    • Preferred reuse alternative and property conveyance mechanism selected
    • Reuse Plan submission to HUD and DOD for review

    Specific details as to preferred surplus property conveyance mechanisms will also be studied and conferred in the Reuse Plan.  The Reuse Plan will serve as a guide for the Air Force Environmental Impact Statement (EIS) which will include the DOD Record of Decision describing how Onizuka AFS will be transferred.  Staff estimates Phase 2 completion by early November of 2007.

    Phase 3 of Onizuka LRA Reuse Planning Process: Implementing a Reuse Strategy following the DOD ROD

     

    Under BRAC guidelines, the Air Force will work with the LRA to develop a disposition plan for the site that is coordinated with the LRA’s Reuse Plan.  The Reuse Plan and findings from the environmental assessment will provide direction on the appropriate property disposition method or combination of methods.  The Air Force will select disposition methods in consultation with the LRA.  Below are explanations of the various property disposition methods:

    • Public benefit conveyances (PBC) are for such public services as airports, education, health facilities, churches, historic monuments, ports, parks and recreation, and wildlife conservation.  Generally, a Federal agency with specific expertise in a conveyance category (e.g., The National Park Service for park land and recreation conveyances) is authorized to serve as a sponsoring or approving agency.  Approved recipients may receive these conveyances at a substantial discount (up to 100 percent of fair market value), following consultation with the appropriate sponsoring agency.
    • Homeless assistance conveyances are made in accordance with HUD's acceptance of the LRA's Reuse Plan to meet local homeless needs, at no cost, directly to a homeless provider or to the LRA.
    • Negotiated sales result in surplus property being sold to public bodies for public purposes at fair market value and subject to Congressional approval.  Both the terms of payment and assessed value are negotiable.  In the past, these transfers have gone through a lengthy process as disagreements arise over value of the property based on differing opinions on redevelopment potential and of the economic impact of residual contamination.  Unlike no-cost economic development conveyances (below) and PBCs (above), negotiated sales allows the land to be transferred without necessarily restricting land use.
    • Competitive advertised public sales result in the surplus property being sold to the party that submits the highest responsible bid (provided the bid is equal to or greater than the military's estimate of fair market value).  The land would then be subject to all local zoning and land use codes and controls.
    • No-cost economic development conveyances (EDC) are transfers to the LRA without payment in order to support the creation of new jobs to replace those lost through base closure.  No-cost EDC's require a seven-year reinvestment of all proceeds earned off the property for continued job creation purposes. 

    The Air Force will also prepare an Environmental Impact Statement (EIS) prior to property disposition pursuant to the National Environmental Policy Act (NEPA) which requires federal agencies to consider environmental impacts before making decisions related to property disposal.  The ROD is the final formal decision document in the NEPA process and will include decisions on how surplus property will be transferred.  Staff estimates the DOD ROD will be delivered no later than September of 2008.

     

    FISCAL IMPACT

    Approval of the Onizuka LRA’s reuse planning process will not have a direct fiscal impact on the City of Sunnyvale.

     

    Sunnyvale is currently funding BRAC pre-planning efforts using the remaining balance of the California National Emergency Grant for BRAC secured by staff on July 1, 2005 in the amount of $100,000.  The California National Emergency Grant is set to expire on June 30, 2006 (unless the expiration date is otherwise modified) and as of April 20, 2006 there was $59,181 remaining.  Information regarding the City’s Onizuka AFS BRAC project will be included in the City Manager’s budget transmittal letter in the proposed FY 2006/2007 budget.  

     

    The City of Sunnyvale, serving as the Onizuka LRA, is eligible to apply for OEA grant funding for community base reuse planning.  On April 11, 2006 the Onizuka LRA authorized submission of a community base reuse grant proposal not to exceed $500,000 to the Office of Economic Adjustment and authorized the City Manager or her designee to execute the necessary grant agreement and expend received grant funds.  Staff is finalizing the OEA community base reuse planning grant application and plans to submit the application to OEA by the end of May.

     

    After receiving the potential grant award from OEA, staff anticipates a detailed Onizuka AFS BRAC Capital Improvement Project (CIP) sheet and budget modification Report to Council (RTC) with specific project cost estimates and OEA grant funding information will be delivered to Council.  Following the established BRAC process and meeting standards of the federal government will result in significant costs to the City of Sunnyvale, a good portion of which the City hopes will be reimbursed by OEA.

     

    PUBLIC CONTACT

    Public contact was made through posting of the Council agenda in public places, on the City’s web page, on KSUN, and by the publication of the general business/public hearing items in the San Jose Mercury News. Additionally, e-mail notification was sent to community members who have requested e-mail notification of Onizuka BRAC related published reports and public meetings. 

     

    ALTERNATIVES
    1. Approve the Onizuka LRA reuse planning process (Attachment A).
    2. Approve the draft advertisement requesting notices of interest with a 180-day noticing period (Attachment B).

    3. Approve a modified Onizuka LRA reuse planning process.
    4. Do not approve an Onizuka LRA reuse planning process.
    5. Approve a modified draft advertisement requesting notices of interest.

    6. Do not approve a draft advertisement requesting notices of interest.
    7. Other action as directed by Council.

     

    STAFF RECOMMENDATION

    Staff recommends Alternative 1: Approve the Onizuka LRA reuse planning process (Attachment A); and Alternative 2: Approve the draft advertisement requesting notices of interest with a 180-day noticing period (Attachment B).

     

     

    Reviewed by:

    Robert Walker, Assistant City Manager

    Prepared by: Coryn Campbell, Neighborhood and Community Resources Manager

     

    Approved by:

    Amy Chan

    City Manager

     

    Attachments

    A.  Overview Project Plan: Onizuka Air Force Station (AFS) Base Realignment and Closure (BRAC) Project (.doc)

    B. Draft advertisement requesting Notices of Interest (NOIs) (.doc)

    C. Onizuka Air Force Station (AFS) Local Redevelopment Authority (LRA) Notice of Interest Form (.doc)
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