HomeMy WebLinkAbout2025-01-28; City Council; Resolution 2025-028RESOLUTION NO. 2025-028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPOINTING THE CITY MANAGER, OR DESIGN EE, AS THE CITY'S
REAL ESTATE NEGOTIATOR TO NEGOTIATE A LOAN AGREEMENT WITH
MODIFIED LEASE TERMS WITH REPRESENTATIVES OF NEW VILLAGE ARTS
WHEREAS, on November 20, 1997, the Carlsbad Redevelopment Agency acquired the property
located on the northeast corner of State Street and Christiansen Way at 2787 State Street in the
Carlsbad Village (Property) with proceeds from tax exempt bonds issued in 1993; and
WHEREAS, on September 26, 2006, the City Council approved a lease agreement with New
Village Arts (NVA) for the purpose of operating a performing arts theater in the rear 6,300 square feet
of the Property by Resolution No. 2006-429; and
WHEREAS, on June 23, 2009, the City Council approved a lease agreement with NVA, expanding
the leased area to include the front 3,100 square feet of the Property, for a revised total of 9,400 square
feet of leased space, to incorporate an arts incubator on the Property by Resolution No. 2009-471; and
WHEREAS, on April 12, 2019, the City Council approved a five-year lease agreement with NVA
by Resolution No. 2019-045; and
WHEREAS, on July 27, 2021, the City Council approved a new ten year lease agreement with
two five-year extension options, which included a rent payment of $1.00 per year, and proposed
approximately $2 million in renovations to the Property, with a request for the city to reimburse NVA
up to a total of $573,000.00 for renovations related to the installation of solar panels ($103,000.00)
and exterior improvements ($470,000.00); and
WHEREAS, NVA completed the exterior improvements and received reimbursement of
$470,000.00 in 2023, but has yet to install solar panels and seek reimbursement of the remaining
$103,000.00 authorized by the City Council in 2021; and
WHEREAS, the total cost of its renovation of the building totaled $3,100,000.00; and
WHEREAS, in January 2023, NVA submitted a request to the city for additional reimbursement
funds of $228,411.00. Thereafter, on Jan. 24, 2023, the City Council elected not to reimburse NVA for
its additional reimbursement request of $228,411.00 and directed staff to determine whether NVA was
interested in a loan for the amount requested. At that time, NVA declined to pursue a loan with the
city; and
WHEREAS, NVA is now requesting a loan from the city in the amount of $893,259.00 to be paid
back by December 31, 2025 through its fundraising efforts and matching funds from the Presbys
Foundation; and
WHEREAS, NVA also requests that any remaining unpaid loan balance as of December 31, 2025
be converted into an equivalent lease payment over the remaining term of the lease, which is
approximately 16 years; and
WHEREAS, the repayment of any remaining loan balance through lease payments will be
contingent upon NVA's financial standing; and
WHEREAS, staff are recommending the City Council appoint the City Manager, or designee, as
the city's real estate negotiator to negotiate a loan agreement with modified lease terms with
representatives of New Village Arts in an amount up to $893,259 .00; and
WHEREAS, California Government Code Section 54956.8 requires that a local agency hold an
open and public session in which it identifies its negotiators, the real property or properties which the
negotiations may concern, and the person or persons with whom its negotiators may negotiate.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the City Manager, or designee, is authorized to negotiate a loan agreement with NVA
in an amount up to $893,259.00.
3. That staff will schedule a subsequent closed session item with the City Council to discuss
modification of NVA's lease terms.
4. That if the negotiations result in acceptable terms, city staff will return to the City Council
in an open meeting with the loan agreement and modified lease terms for consideration.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 28th day of January 2025, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
None.
None.
None.
SHERRY
(SEAL)