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 in blight removal costs. The Reuse Authority is proposing to issue bonds to fund the building removal program prior to its dissolution. The following table summarizes the estimate of remaining building removal costs by jurisdiction:
| Marina |
$28 million |
| Seaside |
$18 million |
| TAMC |
$3.5 million |
| County of Monterey |
$2.5 million |
| State Parks |
$1.6 million |
| Marina Coast Water District |
$1.5 million |
| Monterey-Salinas Transit |
$1.0 million |
The Transportation Agency-owned property within the former Fort Ord is located between 1st Avenue and Highway 1, and 5th and 8th streets in Marina, California. On the property are seven buildings, including a former cold storage building, a former meat cutting building, four warehouses, and a former storehouse building. Six of the buildings are attached and parallel to Highway 1; one larger concrete building is north of 8th Street, next to the bridge crossing Highway 1 (see the map, attached). 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. It is also 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.
Under the proposed Agreement, FORA will issue the bonds prior to its sunset on June 30, 2020 and essentially have the bond trustee to remit 7.0% of the proceeds to TAMC Building Removal Account. TAMC may use these bond proceeds only for building removal costs and may not use the funds for administrative costs. Any surplus funds remaining after building removal must be returned to the surplus bond funding account. The City of Marina, will serve as the bond fund Administrator. The Administrator will oversee the surplus bond account, collecting any surplus funds and allocating such funds to cover any shortfalls. The Administrator may also facilitate shared contracting out for the building removal work, and paying invoices, which could result in cost savings for the Agency.
Agency staff and Legal Counsel have reviewed the agreement and believe that it is structured in a manner so as to protect the Agency's interests. FORA is seeking approval of the agreement in April in order to be ready to issue bonds in May, 2020.
Staff recommends approval of the attached Resolution 2020-05 authorizing the Executive Director to enter into a funding agreement with FORA and the City of Marina to administer the bond proceeds and direct a fixed 7.0% of the total bond proceeds to the Transportation Agency dedicated to building removal.