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HomeMy WebLinkAbout2026-06-09; City Council; Resolution 2026-111Exhibit 1 RESOLUTION NO. 2026-111 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, IDENTIFYING THE CITY’S PROJECT TEAM AND FUTURE NEGOTIATING AGENTS RESPONSIBLE FOR NEGOTIATING THE SALE OR LEASE OF THE CITY-OWNED PARKING LOT PROPERTIES LOCATED AT THE SHOPPES AT CARLSBAD WITH REPRESENTATIVES OF STEELWAVE LLC, STEERPOINT CAPITAL AND CARLSBAD 2525 LLC WHEREAS, the city-owned parking lot properties located at the Shoppes at Carlsbad are comprised of 67.27 acres, with 56.97 acres located within the City of Carlsbad, and 10.3 acres located within the City of Oceanside; and WHEREAS, the city and Plaza Camino Real LP entered into a public parking lot operating agreement in 1981 whereby Plaza Camino Real LP was required to operate and maintain the parking lot properties; and WHEREAS, the parking lot properties are currently being operated and maintained as a public parking lot to serve The Shoppes at Carlsbad regional shopping center; and WHEREAS, on Oct. 17, 2017, the City Council approved the Real Estate Strategic Plan, which recommended that the city pursue the lease or sale of the parking lot properties; and WHEREAS, on Jan. 20, 2023, Brookfield Properties, the then-owner of The Shoppes at Carlsbad, submitted a letter to the city requesting to negotiate the terms of either a lease or purchase of the parking lot properties; and on March 14, 2023, the City Council adopted Resolution No. 2023-081, authorizing a project team and negotiating agents to explore potential uses of the parking lot properties and to initiate compliance with the Surplus Land Act; and WHEREAS, in August 2025, SteelWave LLC acquired The Shoppes at Carlsbad from Brookfield Properties and thereby became the current owner of the shopping center and the successor in interest to RPI Carlsbad LP / Brookfield Properties; and WHEREAS, on March 13, 2025, the California Department of Housing and Community Development (HCD) completed its review and determined that the parking lot properties qualify as “exempt surplus land” under Government Code Section 54221, subdivision (f)(1)(J), on the basis that June 9, 2026 Item #10 Page 4 of 9 Docusign Envelope ID: 6E951A54-551F-82AA-836D-E4FAA10D35C8 the deed restrictions constitute valid legal restrictions not imposed by the city that prohibit housing on the site absent the consent of the deed restriction holder; and WHEREAS, on June 24, 2025, the City Council adopted Resolution No. 2025-150, formally declaring the parking lot properties as exempt surplus land under California Government Code Section 54221(f)(1)(J), consistent with the requirements of the Surplus Land Act; and WHEREAS, because of the deed restrictions on the parking lot properties, the city may only negotiate a lease or sale with the mall owner and the major tenants that own fee title to their stores, or their respective successors in interest; SteelWave LLC, as the current owner and successor in interest to RPI Carlsbad LP, is therefore the appropriate negotiating party; and WHEREAS, on May 27, 2026, SteelWave LLC and Steerpoint Capital, as the current owners of The Shoppes at Carlsbad and successors in interest to RPI Carlsbad LP, submitted a letter to the city requesting to negotiate the terms of either a lease or purchase of the parking lot properties that surround their shopping center; and WHEREAS, the Surplus Land Act process has been completed; the parking lot properties have been declared exempt surplus land; and the city is not required to provide Surplus Land Act notices prior to negotiating a lease or sale of the properties; 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; and WHEREAS, staff recommend the City Council identify the city’s project team and future negotiating agents responsible for negotiating a sale or lease of the city-owned parking lot properties located at The Shoppes at Carlsbad with representatives for SteelWave LLC, Steerpoint Capital, Carlsbad 2525 LLC, and any other interested property owners. 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. June 9, 2026 Item #10 Page 5 of 9 Docusign Envelope ID: 6E951A54-551F-82AA-836D-E4FAA10D35C8 2.This action of identifying the city’s project team and potential future negotiators does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. 3.That the City Attorney and/or designee(s); Deputy City Manager, Community Services; Real Estate Manager; and Community Development Director, are designated as the project team and future negotiating agents responsible for negotiating a sale or lease of the city- owned parking lot properties located at The Shoppes at Carlsbad with representatives for SteelWave LLC, Steerpoint Capital, Carlsbad 2525 LLC, and any other interested property owners, subject to City Council approval of final terms. 4.That the City Manager is authorized to take all actions on behalf of the city necessary and appropriate to carry out the purposes of this resolution, including the execution of documents, subject to their approval as to form by the City Attorney. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 9th day of June, 2026, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. ______________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) June 9, 2026 Item #10 Page 6 of 9 Docusign Envelope ID: 6E951A54-551F-82AA-836D-E4FAA10D35C8