RECEIVE update and PROVIDE DIRECTION to staff on the proposal to issue bonds for the removal of buildings on the former Fort Ord, including the Transportation Agency properties.  

Upon the closure of Fort Ord, the Army left behind approximately 1,600 buildings, ranging in age from the early 1900s to the late 1980s. These buildings have become dilapidated over time, contain various forms of hazardous materials and are frequently targeted sites for vandalism and illegal dumping in close proximity to various occupied buildings.  To assist with removal of the blight and economic redevelopment of the former Fort Ord, the Base Reuse Plan includes removal of building stock and related environmental hazards/blight in certain areas of the former Fort Ord to make way for reuse.  

With the planned sunset of FORA on June 30, 2020, FORA staff estimates that there remains approximately $50-60 million of blight removal costs and is proposing to issue bonds to fund the building removal program prior to the dissolution of FORA.  The following table summarizes the estimate of costs by jurisdiction:

The Transportation Agency-owned section of the former Fort Ord is comprised of seven buildings including a Cold Storage Building, a Meat Cutting Building, four warehouses, and a Storehouse Building located between 1st Avenue and Highway 1, and 5th and 8th streets in Marina, California.  The Transportation Agency contracted with Vista Environmental to conduct a hazardous materials assessment in June 2019 and all properties were found to contain asbestos, lead-based paint, universal waste, and it is suspected that light fixtures with ballasts may contain polychlorinated biphenyl (PCB) oil. The Fort Ord Reuse Authority's proposed bond issuance for building removal presents an opportunity for the Transportation Agency to have these buildings (or a portion of them) demolished under this program at no cost to the Agency.

Under the Fort Ord Reuse Authority's proposal, the bonds could be issued as early as December 18, 2019 or no later than June 30, 2020, with five years to complete the demolition work. There remain two primary issues being discussed by the members of the FORA Administrative Committee, which will make a recommendation to the FORA Board of Directors:

• Which jurisdiction will serve as the successor agency to the Fort Ord Reuse Authority for the purposes of building removal and what will their role be? For instance, the successor agency would likely be responsible for doling out the shares of funding to each recipient, holding any surplus funds and allocating such funds to cover any shortfalls.  The successor agency could also facilitate shared contracting out for the building removal work, and paying invoices. Or, each recipient agency could handle the contracting for building removal on its own. The City of Marina has expressed a willingness to be the successor agency, pending City Council confirmation; the City of Seaside proposed serving in this role if Marina decides not to do so.

• How will the bond proceeds be divided up?  The FORA Administrative Committee voted to recommend that the proceeds from the bonds be divided up based on the percentage share of the costs of demolition. Under such a scenario, if the bonds raise $50 million, TAMC would be allocated 6% of the proceeds, or $3.5 million. If the building demolition cost is higher or the bond proceeds lower, TAMC would be responsible for paying the remaining cost.