Tustin City Council Picks Irvine Homebuilder Standard Pacific Homes

The Tustin City Council picked Irvine homebuilder Standard Pacific Homes to build 231 to 238 new homes at the Tustin Legacy project, a massive redevelopment on the former Marine Corps air base.

A dozen builders had applied to be the first to build for-sale homes on the 51-acre parcel located near Jamboree Road north of Warner Avenue. The Irvine Co. and St. Anton Partners already had been chosen to build apartments.

Builders have been clamoring to be part of the Tustin Legacy ever since the city took the project over from a contractor that withdrew after calling the project worthless. The city took over the job of selecting builders to develop the 820-acre Tustin Legacy project in about 13 phases.

Assistant City Manager Christine Shingleton said Standard Pacific was picked from three finalists because the firm is willing to build all the infrastructure, will help form a special district to raise money for the infrastructure for the entire project and because it’s going to pay cash. Not borrowing money will eliminate contingencies and speed the project along, she said.

Brookfield Homes and The New Home Co. were the other two finalists.

“They’re a great builder and everyone’s very excited about it,” Shingleton said of Standard Pacific Homes, which builds homes in seven states.

Ted McKibbin, president of Standard Pacific’s Southern California Coastal Division, said his firm “lasered in on it from the beginning as something we wanted to participate in.”McKibbin said the builder will create new designs for the three or four product lines it plans for the project. Most of he new homes will be single-family, detached houses, and a smaller number will be attached, “carriage house” style homes. The development also will include about eight acres of parks.

The city council decision gives Standard Pacific exclusive rights to negotiate the final contract to purchase and develop “Parcel 1B.” Shingleton declined to state how much Standard Pacific is willing to pay for the land, saying only that the city will get the market price.

Negotiations are expected to take five to six months, Shingleton said. The council will approve zoning changes at the same time, so the builder can start construction as soon as the deal is in place.

Construction will begin as soon as the extension of Tustin Ranch Road is finished, which is expected to occur in mid-2013, the city said.

Shea Homes, the city’s former master developer, backed out in 2010, saying that the cost of installing roads, utilities and other infrastructure rendered the project “worthless.” The city called that assessment nonsense and took over as Tustin Legacy’s master developer.

The Irvine Co. was picked on June 19 to enter exclusive negotiations to build up to 744 apartment units on two parcels, one with about 20 acres and the other with about 7.5 acres, Shingleton said. The Irvine Co. since assigned the 7.5 acre parcel, with up to 211 apartments, to St. Anton Partners.

Forwarded by www.bobrealestate.com supporting Orange County residences.

Jeff Collins article from the Orange County Register 7-19-12