May 22, 2002

Dear Supervisor Wilson:

Since we visited with you, we have made good progress.  After your decisions on April 16, 2002, we are moving forward to quickly return MCAS El Toro to the local tax rolls.

At your request, we plan to cancel your Master Lease and reassume the caretaker responsibilities on or about July 1, 2002.  Our local team is working closely with your staff to ensure a smooth transition.  We are examining every sublease or other arrangement that may be involved in the maintenance of the base to determine whether they should be continued.  We have reached an agreement with California State University Fullerton.  As I stated before, we intend to honor any lease in effect as of March 5, 2002, but any request we receive after that will be judged by us strictly on its merits as it affects the Department and addresses our responsibilities under the BRAC statutes.

Since our visit on April 25, 2002, we have established a mutually beneficial dialogue with the City of Irvine on the future development of El Toro.  We are working closely with its key leadership personnel as they develop zoning restrictions and future use plans in the spirit of Measure W.  In our current discussions, the only logical way to achieve the plan is to dispose of the base through a public sale, using our sister agency, the General Services Administration (GSA), as our agent.  At this time, we do not plan to give any property directly to the City of Irvine.  Most likely, if it receives any property, it will be from the developer, or developers, who buy the property from the Navy.  Similarly, for any other government agency to receive property at no cost, we expect that agency to present its plans and rationale directly to the Department of the Navy for our determination and decision.

As the base falls within the "Sphere of Influence" of the City of Irvine, we will join you and the City in working toward the successful conclusion of the annexation process.  With annexation, the City will determine the conditions under which prospective purchasers will be able to develop the property, which could have a dramatic effect on the value the taxpayers will receive when the sale is complete.

We are reviewing all Public Benefit Conveyance requests that were received by you prior to March 5, 2002.  We will examine each request, but any such requests must now come to the relevant sponsoring Federal agency who will then interface with the Department of the Navy as required by the various statutes governing conveyance of surplus Federal property for certain public benefits.  The City of Irvine will not benefit directly from property sales nor will it determine public uses of the property other than through its land use authorities.  After July 1, we will commence a review of the existing requests from the homeless providers and will begin to work directly with them.  A necessary corollary to our decision to sell the property by public sale is the acceptance of responsibility to work with those homeless providers.

We look forward to your continuing strong support and warm encouragement as we work to transform MCAS El Toro into a productive part of the County and local communities.  We have sent a similar letter to Supervisors Coad, Smith, Silva and Spitzer.

With Utmost Respect,

H. T. Johnson

CC:  Mayor Larry Agran