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
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