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HomeMy WebLinkAbout1974-10-15; City Council; 3139-1; Parking Lot Expansion: Plaza Camino Real9': THE CITY OF CARLSBAD, C A L I F'O R iV I A Referred To: Subject: Submitted By: PLAZA CAMINO REAL/PARTICIPATION IN PARKING LOT EXPANSION Paul D. Bussey City Manager vB4 Statement of the Matter At its July 16, 1974 meeting the City Council considered a request from Mr. Robert Getz for financial assistance in connection with the Plaza Camino Real expansion. At that time the City Manager made a recommendation that before any decision on the matter, the Council should have the benefit of a financial impact analysis. That impact study is now completed and the matter is back before the City Council for consideration of Mr. Getz's original request for participation in the costs of the Plaza expansion. Exhibit 1. Letter from Mr. Robert Getz dated July 3, 1974. 2. Expansion study by Levander, Partridge & Anderson, Inc. Staff Recommendations to the City Manager See City Manager recommendations I I .I AB No. City Manager's Recommendation See memorandum attached. . Date: October 15, 1974 Council Action 10-15-74 It was agreed that the City of Car1sba.d would not participate financially in the construction of any parking facilities in connection with the proposed Camino Real- Plaza expansion, but the City Council would consider some degree of participation in the offsite improvements to Marron Rd. that might be necessary to provide access to the expanded center. -2- DATE : OCTOBER 11, 1974 TO : MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: PLAZA CAMINO REAL/PARKING LOT EXPANSION The findings and conclusions on pages 3 through 10 of the report prepared by Levander, Partridge and Anderson, Inc. provide the basic information necessary to evaluate the impact on the City of the Plaza Camino Real expansion. The remainder of the report provides a detailed analysis of the methodology and rationale for the conclusions. Basically, the study indicates a net positive annual impact of approximately $148,000.00 per year during the first ten years with increases for succeeding periods thereafter. It should be pointed out that this is intended as a minimum figure with the possibility of the amount being as much as one and one-half to double these amounts, depending on a number of unmeasurable economic conditions which might occur. It can be said then, that a City contribution to the expansion is a reasonably sound financial investment. The real question is whether there will be any significant negative impact if the City does not participate. The report presents the impacts of two possibilities in addition to the expansion at the present site. These possibilities include no expansion at all or development outside the City. The problem with making a determination regarding these alternatives is that the possibility of these other alter- natives occurring, cannot be measured. Taking what is a conservative approach, and recognizing that the Center expansion will provide a positive economic impact, it is recommended that the City participate by developing that portion of Marron Road which would be con- sidered as an offsite improvement for the Center expansion. The rationale for not recommending further financial participation is the assumption that other development will occur on this site or another site within the City in the next five to eight years, offsetting any possible loss from the failure of the Plaza Camino Real to expand 1 PAUL D. BUS Y City Manager PDB: ldg The Mny S:ores Shopping Centers, Inc A Subsidiary of The May Department Stores Company The Honorable Mayor and City of Carlsbad 120 Elm Avenue Carlsbad, California 92008 .. City Council Gentlemen: When Plaza Camino R 1 was July 3, 1974 riginally 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 Office%10738 West Yico Blvd., Suite 1, Loa Angeles, California 900M 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 same 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 c Presiden 0