HomeMy WebLinkAbout1975-12-02; City Council; 3531; Development of Auto Center Park District 4CITY OF CARLSBAD
AGENDA HILL NO.y54 JL ____ Initial: �.
Dept -Rd.
DAT,: December 2, 1975
C. Atty.��
DEPARTMENT: Park and Recreation C. Mgr.
subject:
DEVELOPMENT OF AUTO CENTER PARK - DISTRICT 4
Statement of. the Matter
In a Memorandum of Understanding between the City of Carlsbad
and the Tr.i-City Auto Dealers' as part of a Lease, Leaseback
Agreement dated November 21, 1972, it was agreed that at some
future date the City would develop the designated park area.
The timing would be at the City's discretion.
At the present time $37,531.00 is available in District 4,
Park -in -Lieu Funds. The projected cost estimate for the
park development would not exceed $10,000.00, As this is a
non -budgeted item Council approval is necessary.
Exhibit
Site Location
Cost Estimate of Project
Development Procedures
Work Schedule
Resolution No. X2 % y
Memorandum of Understanding
Recommendation
If Council approves the plans for the project, the action would
be to approve the appropriation and authorize the expenditure
of $10,000.00 for development of the Auto Center Park by the
adoption of Resolution No., �, -
Council action
12-2-75 The design for development of the A•utL '-enter Park was approved.
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PROJECT 0
CAR COUNTRY COST ESTIMATE
CONSTRUCTED
BY FACILITIES
AMOUNT
S
3 Corcrcte Round Picnic Tables
@ $200
600
S
1 Drinking Fountain @ $100
1.00
S
1 Trash Container @ $75
75
SUB -TOTAL
1075
LANDSCAPING
S/C
Lighting
600
C
Block Walls
800
C
Concrete Walk, Patio &
Mowing Edge
2,000
S
Trees and Shrubs
1,000
S
Amendments
800
S
Irrigation System
1,000
SUB -TOTAL
7,200
GRAND TOTAL
8,275
S = Staff
C = Contract
P-W = Public. -Works
N
A,
PROJECT NUMBER 0
PARKS A14D RECREATION DEPARTMENT
DEVELOPMENT PROCEDURES
CAR. COUNTRY AUTO PARK
PRE -SITE PREPARATION
1. Remove all vegatation from the area.
2. Apply a 7-14 day week sterilant.
3. Rip and cross rip area with tractor.
4. Float with tractor and level out.
SOIL PREPARATION
1. Apply Gypsum @ 100 lbs./1000 sq. ft.
2. Apply redwood shaving @ 3 yds./1000 sq. ft.
3. Rip in all amendments (can be combined with number 3
above).
4. Bring topsoil in for mounds, level out.
5. Shoot grades and prepare for concrete.
FLAT WORK AND WALLS
1. Establish grades and drainage patterns.
2. Set forms and grade.
3. Install tracer lines for irrigation system.
4. Pour and finish concrete (include concrete mowing edge).
5. Pour footing for 1.8" block wall, and mowing edge.
6. Build walls and cap.
IRRIGATION
1. Make hook-up connection and run main to controller.
Set up drinking fountain.
2. Trench in lines and backfill.
3. Blow out lines and check coverage.
4. Make any alteration to system.
GRADING
1. Rough grade all mounds and lawn areas.
2. Stake out trees and 'large shrubs.
3. Run irrigation system, check for low spots.
PLANTING
1. Plant all large specimens first then small trees and
shrubs.
2. Fine grade shrub area.
3. Plant ground cover.
4. Apply 16-20-0 fertilizer and rake into lawn area.,
5. Fine grade lawn area.
6. Seed lawn area.
7. Top dress area 1/4" thick and start irrigation cycle 4
times a day for 3-4 minutes per valve.
8. -tart pre-emergant weed control after 2nd mowing to
shrub areas.
9. After 3rd mowing, fertilize with 6-2-0 or a liaht (N)
organic fertilizer.
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MEMORANDUM OF UIMERSTANDING
This Memorandum is created to provide a reference
document and guide for administration and accounting of a lease,
leaseback agreement dated November 21, 1972, between the CITY OF
CARLSBAD and an unincorporated association known as the TRI-•Clly
AUTO DEALERS' ASSOCIATION.
1. A fair market rental for the premises covered in
the agreement is based to some extent on the capital investment
in the improvements on the leased premises and a return on that
investment. To aid the parties in ascertaining expenditures which.
will comprise the capital directly allocable to improving the
leased premises, it is agreed such capital shall be composed of
expenditures for the following:
Road and all improvements thereto
Curbs
Gutters
Sidewalks
Drains Within the right of way
Street lights
Other construction items as indicated by the
City Engineer and Association engineer
representative, and as approved by the
City Engineer.
Fees - engineer, legal, loan
N Soils engineering
Grading
The parties have agreed that $43,250.is a fair- .
market annual rental based on existing estimates of the capital -
investment and depreciation of the improvements. When the improve
ments to the leased premises are completed, the capital investment'
factor N.•rill be accurately ascertained_ At that time if the
LAW OFPIOSs OF
FEI Srn WETTER
Y?1AUF ANO LOY
POST OPTICS BOX 2.10
OIO M13SION AVE4Uk
SUITS 300
OCCAN lIOC. CALIFORNIA
- l -
•,Y
rental figure appears to be out of line, the parties N•7ill deter-
mine a new annual rent which will be a fair market rental. To
this end, all expenditures for work and material involved in
construction will be submitted to the CITY for its determination
that proposed expenditures for these items are reasonable. Any
disagreement on the reasonableness or the inclusion of any work
or material in the capital expenditures account shall be resolved
by attorneys for the respective parties. It is the intent of
the parties to determine and set a rental which will give a return
on the capital outlay so that the ASSOCIATION does not incur a
loss and does not receive a profit over the return of its expen-
ditures.
3. In the -basic lease agreement, the CITY has received
an option to buy the improvements located on the leased premises.
the option price is to be the amount determined as capital expendi-
ture under the above paragraphs, increased by any current interest
s
due on the ca;•_ital outlay. As a guideline for establishing the
option price, the ASSOCIATION will maintain an amortization of
cost accounting against which -rental payments will be applied.
The balance of that account will be used to establish the option
price,'or the lower limit of the option price.
a) In this connection, any prepaid rent shall be
credited against the cost account.
4. The agreement refers to enterprises that are equiva-
lent in sales tax revenue to four dealerships. To establish a
basis =or determining this, the revenue raised by six dealerships
in Oceanside in 1970 will be used. The six dealers who comprise
the ASSOCIATION generated through their dealerships in Oceanside
in 1970 sales tax revenue of $192,000.00. Two-thirds of the
LAW Oprtcas OF
FEIST, VETfER
KNAUF AND LOY
POS'P OFFICE PDX 200
510 NI393ON AVENUE
DU 17E 300
OCEANBIDE. CAL)FORNIA
2
{
$192,000.00, or $123,000.00, is established as equivalent sales
tax producing enterprises.
5. The CITY intends to prepay rent by utilizing sales
tax revenue generated by the Auto Center, Sales tax revenue will
be an indication of the use of the leased premises by the public
and the value of the rental. Both parties are aware that there is
no binding requirement that the CITY commit such sales tax revenue
to rent if such action would violate Article XIII, §40, of the
Constitution.
b. Both parties understand that coastal protection
legislation may present an obstacle to construction of both the
leasehold improvements and the individual dealerships. If the
development is halted to the extent that the purposes -6f the basic
Agreement are frustrated, the parties will renegotiate the terms
as necessary in good faith to reach a new agreement.
7. In regard to the construction of improvements, it
f
is recognized that change orders to contracts once approved may
be necessary to take care of conditions not anticipated when the
contracts were let. Since a change order will necessarily affect
the capital outlay, both parties must agree to the change order, if
time permits. If a change order will result in a significant modi-
fication of the capital outlay, the basic Agreement will be adjusted
to reflect the change. It is contemplated that the change will
probably be reflected in a change of the term of the leaseback.
8. In establishing the option purchase price of the
improvements (road and appurtenances) the price shall be ascer-
tained in part by reference to replacement cost. To provide a
guide for replacement cost, the'ASSOCIATION will maintain a•cost
expenditure record via a controlled construction disbursement
fund. All expenditure items will be approved by both part:Les.
LAW OPFICES OF M
FEIS . V5 TER
KNAUF AND LOY 3
POST OFFICE 00% 240
010 MISSION AVENUE
Alum oo0
OCEANSIDE. CALIFORNIA
The costs of construction plus Tither costs directly attributable
to the improvements such as professional fees, permits, soils
testing, funding and similar items shall comprise the capital out-
lay which will be a factor in determining the option price. The
objective is to insure that the price is such that the ASSOCIATION
is not out-of-pocket and likewise does not experience a gain over
its costs.
9. Landscaping of park and landscape easement area.
a) At some time in the future, the CITY will land-
scape the one -acre park area in keeping with the overall land-
scape architectural plan of the Center. The timing of such inz-
provements is within the discretion of the CITY.
10. It is understood that the sidewalks may -have •to
encroach into the ten foot landscape easement area because of
street design.
11. It is understood that street lights will be placed
over the entire Plaza del Norte road from Cannon to Palomar Air-
port Road, but that the number and location over the stretch of
road on the Ecke -,Caritas portion will be set by the City
Engineer.
12. The CITY will enter into an agreement on a drainage
districtt whereby other landowners using the drainage system through
the Center will reimburse the ASSOCIATION part of the construction
cost for the drainage system.
13. The cost of electrical lines for street lights is
to be part of the capital outlay of the ASSOCIATION.
14. it is understood that private utility installation
costs will not be part of the capital outlay for purposes of fair
LAW OFFICES of
FEIST. VETTER
KNAUF ANo LOY
POST OFFICE UOX 240
e10 MISSION AVEY IF
SUITE 300
OCCANSIOE, CALIFORNIA
market rental value or option price determi.nation.
APPROVED AS TO FORM: CITY OF CARLSBAD
Vfncent F . IBiondo Jr By
City Attorney
FEIST,.:V-.P-ZTER, KNAUF AND LOY T 0 DEALERS'
ASSOCIATION
By
By
LAW OPFIcCS of
FFIST, YETTER -
KNALIF AND LOY 5
POST WFICC BOX 240
010 MISSION AYCNUC
SUIT C 300 -
OCCAN3IDC, CALIFORNIA
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