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HomeMy WebLinkAbout1974-07-16; City Council; 3139; Parking Lot Expansion: Plaza Camino RealCAR L S B A D, CA L I F'OR N IA 1' H E CITY OF Agenda Bill No. rn Date: Julv 16, 1974 - Referred To: Submitted By: Subject: PLAZA CAMINO REAL/PARTICIPATION IN PARKING City Manager LOT EXPANSION Statement of the !.latter Mr. Robert E. Getz, by letter dated July 3, 1974, has requested . Council consideration of City participation in an expansion of parking facilities at Plaza Camino Real in connection with a 450,000 sq. ft. expansion of the retail center. The expansion will include Sears Roebuck & Co., and Carter-Hawley-Hale (formerly Broadway-Hale) along with other minor stores. In addition to City funding of the parking lot expansion, the letter requests the City to extend Marron Road westerly to Jefferson Street. Exhibit 5 ? Letter from Mr. Robert Getz, dated July 3, 1974 Staff Recommendati 011s - to the City Manager I A8 No. e.. Date: July 16, 1974 I City Manager's Recommendation See memo attached Council 'Action r 7-16-74 The City Manager was instructed to negotiate with the-owners as to the preparation of an Economic Study. . -2- The May Stores Shopping Centers, Inc. A Subsidiary of The May Department Stores Company The Honorable Mayor and City Council City of Carlsbad 120 Elm Avenue Carlsbad, California 92008 July 3, 1974 Gentlemen: When Plaza Camino Real was originally designed and built in 1967-1969, it was contemplated that a second phase would be added as soon as the trade area had grown to a point where it would support additional retail. The center was planned so that the mall could be extended and additional department store space as well as retail shops added and the understanding with your City with respect to the financing of the parking lot construction also took into consideration future ex- pansion. In the latter regard, I refer to your letter of March 8, 1965 which refers to the entire parcel from El Camino Real to Jefferson Street and indicates that the construction "could be done in phases, if that seems desirable". It is clear that the North County trade area will now support a substantial amount of additional retail and both Sears, Roebuck and Co. and Carter-Hawley-Hale (formerly Broadway-Hale) have indicated not just an interest but a determination to locate somewhere in the North County. We consider it imperative that the City of Carlsbad provide for these addi- tional retail facilities support comparable to that which was provided for the original center in order to obtain for Carlsbad not only the benefits from the expanded areas but also the protection and enhancement of its original investment in Plaza Camino Real. We propose that approximately 450,000 square feet of retail area be added to the center. This would be broken down into 153,000 square feet for the Sears store, 163,500 square feet for the Broadway store and 133,500 square feet for mall shops. A conservative estimate for the sales which this space would produce would be $30,000,000 per annum. Carlsbad therefore would receive very substantial sales tax revenue as well as its share of the real estate taxes. Executive Offices, 10738 West Pie0 Blvd., Suite 1, Loa Angeles, California 90064 Tel. (213) 879-1850 475-3501 The Honorable Mayor and City Council City of Carlsbad July 3, 1974 Page Two In spite of the enormous inflation that has occurred since the middle sixties, we would expect that the City's investment in parking and related areas could again be limited to $1,500,000 and this could include the necessary completion of Marron Road to Jefferson Street. We also feel that in light of the turbulent money market we could, with Sears and Broadway, protect the City against the possibility that re- venue bonds could not be marketed. Incidentally while I have repeatedly referred to the City, I would expect that this project could be accomplished through the same Park- ing Authority that handled the initial development. there have been some new vehicles for this type of financing and it may be preferable to go the route of tax increment bonds or some other arrangement. But since the mid 1960s, I would be most appreciate if you would put this matter on the agenda for an early Council meeting and would be pleased to answer any ques- tions and explore any possibilities for assurring that Carlsbad will continue to be the dominant retail center in North San Diego County. Very truly yours, PLAZA CAMINO REAL Shopping Centers, Inc. REG/jk Presiden 0