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Home My WebLink About2020-09-15; City Council; Resolution 2020-188RESOLUTION NO. 2020-188 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, AUTHORIZING THE RELEASE OF A REQUEST FOR PROPOSALS FOR THE SALE OF PROPERTY LOCATED IN THE CITY OF OCEANSIDE ON PAJAMA DRIVE, APN 149-070-47-00. WHEREAS, on Oct. 17, 2017, City Council approved the Real Estate Strategic Plan, which recommended that the city sell the Pajama Drive property (Property); and WHEREAS, the Property originally served as a water storage facility for what was then the Costa Real Water District, and was acquired by the city in October of 1979; and WHEREAS, the 10,891 square-foot Property is currently vacant, with no infrastructure remaining at the site; and WHEREAS, the city currently desires to release a request for proposals for the sale of the property on Pajama Drive; and WHEREAS, City Council has determined that the Pajama Drive property is no longer necessary for city water storage as originally contemplated; and 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. City staff is hereby authorized to release a request for proposals, attached hereto as Attachment A, for the sale of property located in the City of Oceanside on Pajama Drive. 3. City staff is directed to evaluate proposals received. Following review and analysis of the proposal(s), staff will recommend to the City Council the selection of a prospective party with whom to negotiate a purchase and sale agreement. If authorization to Sept. 15, 2020 Item #5 Page 3 of 13 4/Fofk\ exclusively negotiate a purchase and sale agreement is approved by the City Council, staff will return to the City Council for approval of a purchase and sale agreement with the selected respondent. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 15th day of September, 2020, by the following vote to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher. NAYS: None. ABSENT: None. MATT HALL, Mayor ATTEST: BARBARA ENGLESON, City Clerk (SEAL) Sept. 15, 2020 Item #5 Page 4 of 13 REQUEST FOR PROPOSAL For Sale by City of Real Property Located at Pajama Drive, City of Oceanside, CA 92054 Property Commonly known as Pajama Drive PROPOSALS DUE PRIOR TO: [DAY], __________, 2020 at 4:00 p.m. PST SEND TO: City of Carlsbad 3096 Harding Street Carlsbad, CA 92008 Attn: Curtis M. Jackson, Real Estate Manager The City of Carlsbad encourages the participation of minority and women-owned businesses Attachment A Sept. 15, 2020 Item #5 Page 5 of 13 Table of Contents Section Page I. INTRODUCTION 1 II. BACKGROUND AND PROPERTY DESCRIPTION 1 Background 1 The Subject Property 1 Site Map 1 Adjacent Uses 1 Property Information 2 Development Impact Fees 2 III. SELECTION PROCESS 2 Selection Process 2 Submittal Requirements 2 Procedure/Schedule 3 Questions 3 Site Tours 3 Selection Criteria 4 Offer to Exclusively Negotiate 4 IV. SPECIAL CONDITIONS 4 Reservations 4 Public Record 4 Right to Cancel 4 Right to Negotiate 5 Additional Information 5 Conflict of Interest 5 Scope Changes 5 Proprietary Information 5 Responsive Materials Ownership 5 Best Value Selection 6 Sale Award 6 V. CONCLUSION 6 Sept. 15, 2020 Item #5 Page 6 of 13 I. INTRODUCTION & OVERVIEW Pursuant to California Government Code §54220 et seq., the City of Carlsbad (city) is exploring the potential sale of the real property owned by the city located on Pajama Drive in the City of Oceanside, County of San Diego, State of California and commonly known as the Pajama Drive property (Property). The purpose of this RFP is to explain the requirements and procedures for the submission of formal proposals from parties interested in the acquisition of the Property. II. BACKGROUND AND PROPERTY DESCRIPTION The Subject Property The Property originally served as a water storage facility for the Costa Real Water District and was later acquired by the City of Carlsbad in October of 1979. The water storage facility was demolished in 2008, with no infrastructure remaining at the site, after which the Subject Property has sat vacant. The Property is 10,891-square feet in size and is located at the end of a cul-de-sac on Pajama Drive in a residential neighborhood in Oceanside (APN: 149-070-47-00). The Property is not located in the coastal zone and is zoned Residential Estate – B (RE-B), which will allow for one single family residential unit on the property. All measurements are approximations and must be field verified by Respondents. The Property will be sold in an “as is” “where is” condition. Prospective Respondent(s) will be required to undertake their own independent inspection and investigation of the Property. Site Map For an aerial view of the parcel, please see the attached Site map. Adjacent Uses This acquisition opportunity in the City of Oceanside is unique and exciting for many reasons: 1) The Property is located within easy access to Highway 76 and 78, Interstate 5, and Mission Avenue. 2) The Property is located near commercial and retail amenities. 3) The Property is in close proximity to the major markets of San Diego (38 miles south), Orange County (15 miles north) and Los Angeles (80 miles north). 4) A large, quality work force, and nearby universities and colleges; 5) Some of the finest weather and recreational amenities in the country, including miles of beautiful beaches, a variety of parks and golf courses and cultural and historical facilities. Sept. 15, 2020 Item #5 Page 7 of 13 Property Information Below is an outline of land use information applicable to the Property. This outline provides general information and does not contain all applicable information. For more information, please contact the City of Oceanside Planning Division at (760) 435-3520. Zoning Designation: “RE-B” (Residential Estate Development with density of 1.0 dwelling units per acre) Coastal Zone Information: The Property is not in the coastal zone. Development Impact Fees Development of the Property may be subject to impact fees. For more information, please contact the Oceanside Planning Department at (760) 435-3520. III. SELECTION PROCESS Respondent selection is anticipated to occur through the process outlined herein, the described selection criteria, and submittal requirements. Selection Process The city is seeking proposals from individuals and entities with the financial capacity to acquire the Property. Respondents shall comply with the Submittal Requirements and Procedures/Schedule below: Submittal Requirements The city appoints Reid Chambers of Realty One Group (Broker) as city’s sole and exclusive real estate agent and grants Broker the exclusive right to assist the city in identifying prospective purchasers and negotiating the sale of the Property. The city shall not be liable for, nor pay any, broker fees or commissions due to Respondents broker or agent. Respondents shall provide the city with the information requested below, with the exception of the Financial Capacity materials, of which two (2) copies are to be submitted under separate, sealed cover on a confidential basis. 1) A statement that the signatory is authorized to submit the proposal on behalf of each listed member of Respondent’s team; Sept. 15, 2020 Item #5 Page 8 of 13 2) The financial ability of the prospective purchaser to acquire the Property, either individually or collectively, as the case may be; 3) A statement that the proposal will remain in effect for a minimum of 90 days from the date of submittal and may be extended at the mutual agreement of both the city and Respondent; 4) A description of the proposed use of the Property by the prospective purchaser. 5) The proposed Terms (which may be subject to a MAI appraisal) for the Property. Procedure/Schedule The procedure for selection is as follows: 1) Proposals shall be submitted to the city through the Broker no later than 4:00 p.m. on [Day], [Date], 2020. Proposals and/or modifications received subsequent to the hour and date specified will not be considered; 2) Following timely receipt, submissions will be reviewed by city staff and the Broker within 30-days of the submittal date; 3) The most desirable and qualified Respondent(s) may be asked for a last best and final offer (see below); and 4) Following review and analysis of the proposal(s), staff will recommend to the Carlsbad City Council selection of a purchaser to exclusively negotiate a purchase and sale agreement with the city, and a negotiable non-refundable deposit of $10,000 will be required for the right to negotiate exclusively with the city. Questions Any questions you may have pertaining to this RFP shall be addressed to the city’s Broker, Reid Chambers, at reidjchambers@gmail.com. All questions must be in writing and no other officer, agent, or employee of the city is authorized to provide official answers. Site Tours Site Tours are not mandatory; however, interested Respondents should contact the city’s Broker, Reid Chambers, at reidjchambers@gmail.com or 760-583-0809. Sept. 15, 2020 Item #5 Page 9 of 13 Selection Criteria The focus of the selection process will be on the following issues: 1) Financial benefit to the city. 2) Financial ability of the Respondent to purchase the Property as evidenced by their financial capacity. 3) Purchase price, and other applicable terms and conditions of a disposition. 4) Highest and best use of the Property, as determined by the City Council. Offer to Exclusively Negotiate Upon selection of a Respondent with which to exclusively negotiate with by the Carlsbad City Council, the city will negotiate a purchase and sale agreement exclusively with the selected Respondent for a period of up to 60 days. Once the purchase and sale agreement is negotiated, it must be formally approved by the Carlsbad City Council. By submitting a proposal and qualifications to the city, the prospective buyer is also agreeing that the city retains the right to modify or suspend all aspects of the selection and exclusive negotiating process and to waive any defects as to form or content of the offering or any responses that are received. Further, city shall have the right to reject any and all proposals. IV. SPECIAL CONDITIONS Reservations This RFP does not commit the city to sell the Property, to defray any costs incurred in the preparation of a proposal pursuant to this RFP, or to procure or contract for work. Public Record All proposals submitted in response to this RFP become the property of the city and are public records and, as such, may be subject to public review. Financial capacity statements, however, are provided on a confidential basis to the extent allowed by law. Right to Cancel The city reserves the right to revise or cancel, for any reason, in part or in its entirety, this RFP, including but not limited to: selection schedule, submittal date, and submittal requirements. If the city cancels or revises this RFP, all Respondents will be notified in writing by the city. Sept. 15, 2020 Item #5 Page 10 of 13 Right to Negotiate The city reserves the right to negotiate with Respondent subsequent to receipt of the Respondent’s proposal. The city reserves the right to request from Respondent a last best and final offer, whereby the city may ask either all bidders or the top bidders to submit their last best and final offers. If the city is not satisfied with any of the bids after asking for last best and final offers, the city may in good faith choose any party to negotiate terms for a sale. Additional Information The city reserves the right to request additional information and/or clarification from any or all Respondents to this RFP. Conflict of Interest The Respondent, if selected, shall be required to file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. Scope Changes All changes in proposal documents shall be through written addendum. Verbal information obtained otherwise will not be considered in the award process. Proposal submittals must acknowledge all addenda. Proposals failing to do so may be considered as non-responsive by the city and eliminated from further consideration. Proprietary Information Any restrictions on the use of data contained within a proposal must be clearly stated in the proposal itself. Proprietary information submitted in response to this RFP will be handled in accordance with applicable city procurement regulations and the California Public Records Act. If you have proprietary information, products or services, please identify them in your proposal. Responsive Materials Ownership All materials submitted regarding this RFP become the property of the city. Responses may be reviewed by any person after final selection has been made. The city has the right to use any or all system ideas presented in reply to this request, subject to the limitations outlined in proprietary information above. Disqualification of a Respondent does not eliminate this right. Sept. 15, 2020 Item #5 Page 11 of 13 Best Value Selection The Respondent selected will be based on the best value option for the city. The city is under no obligation to award this project to the Respondent offering the most advantageous financial position; however, the city is obligated to accept no less than fair market value. Selection criteria expressed in the RFP shall be used in the proposal evaluation process. In evaluating proposals, the city may consider the qualifications of the Respondent and whether the proposals comply with the prescribed requirements. Sale Award The award of the sale will be in accordance with, but not limited to, the results of the city’s evaluation. Final approval of selected Respondent and award of the sale lies with the City of Carlsbad City Council. V. CONCLUSION We appreciate your interest and look forward to your proposal for purchase of the Property. Submittal packages should be addressed to the city through the Broker at: City of Carlsbad 3096 Harding Street Carlsbad, CA 92008 Attn: Curtis M. Jackson, Real Estate Manager Please return your response no later than 4:00 p.m., [Day], [Date], 2020. Sept. 15, 2020 Item #5 Page 12 of 13 Site Map Sept. 15, 2020 Item #5 Page 13 of 13