At its August 7th meeting, the Tustin City Council voted to enter into an Exclusive Agreement to Negotiate with Regency Centers to develop a 185,000-square-foot neighborhood center. The grocery-anchored center will include approximately 100,000 square feet of convenience-based uses such as a pharmacy, service retailers, eateries and restaurants, a 45,000-square-foot fitness center and 40,000 square feet for medical office space.
“Plans for development at Tustin Legacy are progressing. Phase 2 of Tustin Ranch Road will begin this month, and its completion in 2013 will open up several areas for development. Earlier this summer the council approved three parcels for housing,” said Mayor John Nielsen. “The parcel at Kensington and Edinger approved at our last meeting will be a shopping center that will serve both Tustin Legacy and the Peppertree neighborhoods. We know our citizens have been waiting for nearby amenities and we are excited to be in a position to get the project started at this time.”
Regency Centers (NYSE: REG) is a national owner, operator and developer of grocery-anchored and community shopping centers. The company owns 364 retail properties, totaling 49.5 million square feet, in 29 U.S. states. Since 2000, Regency has developed 209 shopping centers, including those currently in-process, representing an investment at completion of more than $3 billion.
John Mehigan, vice president of investments with Regency Centers, expressed enthusiasm about the agreement. “We are honored to be selected to create a gathering place for the Tustin community. Regency brings both national experience and local awareness to this project,” said Mehigan. “We are confident that this development will create a retail center that residents want to shop and are proud to have in their neighborhood.”
The Disposition and Development Agreement (DDA) will require the developer to pay a Backbone Infrastructure Obligation toward the overall construction of infrastructure at Tustin Legacy.
With the Tustin Legacy Disposition Strategy, which was adopted in April 2011, the City assumed an executive role in marketing parcel groupings while continuing to embrace the vision for Tustin Legacy. This strategy allows for early development based on ability to finance, and location and access to available infrastructure at Tustin Legacy. Phase 2 of Tustin Ranch Road project was approved earlier this summer and will open this area up for early development.
This is the fourth parcel designated for early development. The City Council approved negotiation agreements for three parcels of land earlier this summer which will be developed as apartments and single family homes by the Irvine Company, St. Anton Partners, and Standard Pacific Homes.
Construction will occur simultaneously with the construction of Tustin Ranch Road which is slated for completion mid-2013.