HomeMy WebLinkAbout1971-12-01; City Council; 615; Greenwood Property (2)THE CITY OF CARLSBAD,CALIF' ORNIA
Agenda Bill No. fo /£~
deferred To:
Date: December 1 , 1971
Subject:
Greenwood Property
Submitted By:
City Manager
. Statement of the /fatter
There has been considerable interest expressed for several years by
various oil companies and others in the Greenwood property. To date
such interest has manifested itself in offers to purchase the prop-
erty. Mobil Oil Corporation has expressed an interest in leasing
this property. Under their proposal they would lease the property
at a minimum rental of $16,000 annually. The lease would be bank-
able, could generate up to $170,000 cash from a bank assuming the
lease. At expiration of the lease the property would revert to the
City.
Exhibit
Letter from Mobil Oil Corp. dated Nov. 1, 1971
Staff Recommendations
AB NO. fi1s Date: December 1, 1971
'City Manager's Recommendation
In reviewing the property owned by the City at the Civic Center site, it
is obvious that additional property should be acquired for future Civic
Center expansion to meet the needs of a growing population. For this
reason it would not be recommended that any presently owned City land,
including the Greenwood property, be sold
Once the heavy workload in the Planning Department, involving several
large annexations, has been abated, we should undertake a Civic Center
site expansion study to determine future acreage needs for the Civic
Center. When completed the study would give us a basis for future in-
cremental acquisition of Civic Center area property. This would be in-
cluded in a capital improvements program and would be.timed so that
property is available on need.
It is apparent that it would be possible to lease the Greenwood property
for business as use by the City, other than the present interim Parks &
Recreation Department headquarters, would be a number of years in the
future. Were the property to be leased for a service station, restau-
rant, or other commercial use, the money obtained could be matched with
Federal funds for the purpose of acquiring Parks and Recreation facili-
ties for the community. This would reduce the amount necessary on any
bond issue contemplated by the City for this purpose. This is a policy
item but the staff does need guidance from the City Council to determine
if you wish to consider lease of this property for any non-municipal pur-pose. .Council Action
12-7-71 Following discussion the matter was referred to the Parks and
Recreation Commission for report and recommendation.
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Mobil Oil Corporation P.O. BOX 2191
SAN DIEGO, CALIFORNIA 92112
November 1, 1971
City of Carlsbad
1200 Elm Avenue
Carlsbad, California 92008
Attention: Jack B. Arnold
NWC ELM STREET &
PIO PICO
Dear Mr. Arnold:
We would propose to lease the parcel of land identified on exhibit
"A" attached hereto.
Mobil would tender the City a lease calling for annual rentals of
1.5 cents per gallon with a minimum rental of $ 16,000.00 per year.
Additionally Mobil would agree to improve the rear portion of this
property into a small park. The lease would be fully bankable and
should develop funds totaling approximately $ 170,000.00. The exact
amount would, of course, be up to the bank who would, prior to
execution of the lease, make a written commitment to the City as to
the amount of the loan. This loan would be guaranteed by Mobil and -
would be paid off by the monthly lease rental. The City would not be
involved other than to execute a trust deed on the demised premises
to the bank.
If the form of this proposal meets with your approval Mobil Oil is
prepared to proceed with the location subjecfc to the following conditions;
1. Proper zoning for service station use.
2. A policy of title insurance satisfactory to Mobil Oil and
purchased by Mobil Oil.
3. Adequate access to Elm Avenue and to Pio Pico.
4. Signage of similar size and height as other competitive
stations in the area.
5. Final approval by Mobil Oil management.
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6. Agreement between Mobil and the City on terminology
of the lease.
We recognize that the City will require some architectural control
and planter areas. We are prepared to proceed quickly with this
proposal.
I will be happy to clarify any areas of this proposal that are not
clear.
Sincerely,
C. E. Barnthouse
Real Estate Representative
CEB/mv
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