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HomeMy WebLinkAbout1978-01-03; City Council; 3481-12; Plaza Camino Real Shopping Center Expansion4 CITY - OF CARLSBAD AGENDA BILL NO. -- @L3 &MI- + /d Initial: Dept . Hd. C. Atty. DATE : -- DEPARTMENT: City Manaqer C. Mgr. Sub] ect : JaI-luarV 3, 1970 PLAZA CAMIN0 REAL SHOPPING (ENTER EXPANSION Statement of the Matter - The City received a letter dated Decaber 19, 1977 addressed jointly to the Cities of Carlsbad and Oceanside, proposing an agrement which muld provide for the City of Oceanside's participation in the Plaza Camirio Real Slaopphq Center expansion. contribution of $400,000 tuward the developwnt in return for an annual sum equal to the City of Carlsbad's portion of Broadway's sales tax. No city staff contacts have been made with Oceanside regarding this matter. The proposal calls for Oceanside's i .Exhibit Letter fran the Nay Stores Shopphq Centers, Inc. dated December 19, 1977. r Reaxmadation If Council wishes to consider the proposal, they should seek an opinion from the City's Bond Counsel relative to the proposed method of paying Oceanside. F'urthex, the Council may wish to appoint a Council camittee to -lore the proposal or other options wiWCity of Oceanside officials. Council action 1-3-78 It was agreed that staff inquire of bond counsel relative to the proposed method of paying Oceanside, that the City Attorney study the City of Oceanside's processing procedures as it relates to May Company's development, and after receiving those facts Council to de,termine if there exists a need for appointing a Council Committee. The May Stores Shopping Centers, Inc. A Sulsidinry of The Mny Department Stores Company December 19, 1977 Honorable Mayor and Members of the 704 Third Street Oceanside, CA 92054 City Council of the City of Oceanside Honorable Mayor and Members of the 1200 Elm Avenue Carlsbad, CA 92008 . City Council of the City of Carlsbad Dear Mayors and Members of the City Councils: On November 5, 1975, the City of Carlsbad and the Car1sba.d Parking Authority entered into a contract with Plaza Carnino Real dealing with the expansion of the Plaza Camino Real Shopping Center. The contract contemplates the addition of two department stores, Sears and Broadway, and l3O,OOO square feet of new mall stores, together with an extension of the enclosed mall and the expansion of the existing parking lot owned by the Parking Authority. Pursuant to the contract, the Plaza agrees to convey the addition to the parking lot to the Parking Authority upon its completion and the Parking Authority agrees to pay as consideration for the conveyance the net proceeds of the sale of a $1,500,000 issue of Parking Authority bonds. The conveyance to the Parking Authority will be by a grant deed containing provisions similar to those contained in the deed whereby the existing parking lot was conveyed to the Parking Authority in 1969. The Parking Authority will lease the parking lot addition to the City and the Plaza will operate the addition, as was done in the 1969 transaction. The November 5, 1975 contract was amended to substitute Bullocks for Broadway as one of the new department stores. As the Plaza refined its plans for the expansion, it became apparent that including a third new department store, in addition to the two already contemplated, will be in the best interests of the Center and the community and region, as a whole. Among other things, the synergism of five department stores in one convenient location, rather than a more dispersed retail pattern, will reduce vehicle Exerutive Offices, 10738 West Pic0 Blvd., Suite 1, he Angeley California 90064 Tel. (213) 879-1850 475-3501 2-. ..- *- Page 2 miles traveled and consequent air pollution. The fifth department store will be a 150,000 square foot Broadway. Carter Hawley Hale Stores, Inc., owner of The Broadway, has joined in this letter. Carlsbad has approved a Precise Plan of Development for the expan- sion which calls for the realignment of the channel of Buena Vista Creek northerly of its present location. In order to provide the additional parking for the fifth department store, the Plaza plans to construct a concrete box culvert in a portion of the realigned channel. Although the fifth department store will be in the City of Carlsbad, Inuch of the additional parking will be across the city boundary, in the City of Oceanside. Because of the cost involved in constructing a concrete box, addi- tional municipal financial participation in the expansion is. needed. We propose an amendment to the Plaza's contract with the City of Carlsbad and the Carlsbad Parking Authority and a new contract among the Plaza, the City of Carlsbad, the Carlsbad Parking Authority and the City of Oceanside as follows: .. 1. The November 5, 1975 contract with the City of Carlsbad and Carlsbad Parking Authority would be amended to reduce the amount of Carlsbad Parking Authority's bond issue from $1,500,000 to $l,3OO,OOO, a savings of $200,000. 2. The new contract would contain the following provisions': a. The Plaza would agree to convey the portion of the parking lot, including the channel, located within the Oceanside city limits to the City of Oceanside. The conveyance would occur upon completion of the parking lot, including the realignment and boxing of a portion of the channel.. The conveyance would be by a grant deed containing the same provisions as the deed to the Carlsbad Parking Authority in connection with the expansion. This would include a provision for or reversion in the event the land ceased to be used for public parking. b. Oceanside would at that point pay the Plaza $400,000. c. At the same time, Oceanside would lease the parking lot to the City of Carlsbad for a rental equal to the sales tax received by the City of Carlsbad from the Broadway store. The lease would be for the maximum term permitted by law (at least I fifty years). The City of Carlsbad would have an option to renew the lease for an additional forty-five years. If it did not exercise its option, it would be required to buy the parking lot from the City of Oce,anside for a price based on the capitalized value of the rentals. d. Oceanside could finance the $400,000 amount required to be paid to the Plaza by the sale of bonds in an amount sufficient to yield at least $400,000, plus all costs of the bond issue. e. The parking lot in Oceanside would be operated by the Plaza, under the same arrangements as those that govern the parking lot in Carlsbad. To assist you in reviewing this proposal, we enclose a letter from . the law firm of O'Melveny and Meyers dealing with the legal aspects of the transaction, and a copy of the November 5, 1975 contract with the City of Carlsbad and the Carlsbad Parking Authority, together with the Supplements to the contract. Grading has already commenced for the expansion. Our plans call for construction of the expanded shopping center and parking areas in the near future to accommodate a 1979 opening. We respectfully request that the above proposal be placed on your respective agendas, for consideration, as soon as possible. .,- Respectively submitted , PLAZA CAMINO REAL By: The May Stores Shopping Centers, Inc. President c'/ By : E. J. Caldecott Vice President REG:lac Encl.