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HomeMy WebLinkAbout1985-10-15; City Council; 8369; REPORT ON SPACE NEEDS[I] $ 8 2 3 rl -rl DEPT. HD.2 AB# p2dy TITLE: MTG. 10/15/85 REPORT ON SPACE NEEDS CITY AlNj DEPl'. C*M* CITY MGk RECOMMENDED ACTION: Authorize staff to send out request for proposals €or the lease 01 s ICI ICI r6 ii a Q) t: 8 8 g -I-, Q 3 . -rl % 2 8 8 Q, k +I M d +, [I] 8 2 $2 Jz t-lu '3 2 5 8% In co t-l I 4 0 ki a& I In a 0 5 4 0 z 3 0 o a space to house the building, engineering and planning departments, ITEM EXPLANATION : In June 1985, as part of the budget, staff proposed relocating thc building, engineering, and planning departments into leased space, The Council approved the idea in concept, but directed staff to investigate the possibility of purchasing a facility rather than leasing. Staff has subsequently investigated a number of alter- natives and has been in negotiation for the purchase of a buildin5 in the redevelopment area as authorized by the City Council. At this point, it does not appear that the purchase and remodeling of a building for less than $1 million dollars is possible. Nonetheless, the need for additional space has become more acute as new programs and staff have been added to handle the expanding service needs of the city. The building, engineering, and planning departments are operating in very crowded quarters and lack the facilities to adequately serve the needs of the public. There are three options available to meet the space needs: -- lease additional space -- purchase additional space -- build a facility to suit The purchase or building of a facility does not appear feasible due to cost limitations ($1 million spending limitation) lack of a suitable city owned location, and the long lead time to build such a facility. In order to meet the immediate short term space needs (next five years) leasing appears to be the only feasible option at this time. A plan to meet the long term space needs will come out of the architectual study authorized by the City Council in the 1985-86 Capital Improvement Budget. It is recommended that the staff be authorized to request proposa: for the lease of space. existing staff (61) in the three departments would be 15,000 squai feet. If additional staff positions being requested are approved as much as 4,000 square feet more would be required for a total of 19,000 square feet. The minimum space required to house the FISCAL IMPACT: It is anticipated that rent would range between 80C 1 1.00 per Sq. foot, Assuming a rent of 9OC per sq./ft, the city': tnnual cost would be $162,000 for a 15,000 sq. foot building and $205,000 for 19,000 sq. ft. Funds ,would have to be appropriated from the contingency account for the first year's rent. 3 0 Page 2 0 yg& 9 Report on Space Needs AB 10/15/85 C. M. EXHIBITS : 1. Memorandum to City Manager dated July 25, 1985. 2. Cost information on State Street property including renovation estimates. e e EXHIBIT . b JULY 25, 1985 TO : CITY MANAGER FROM: Director of Building & Planning RELOCATING BUILDING, PLANNING AND ENGINEERING DEPARTMENTS Recommendation Negotiate purchase of the State Street property at the earliest possible date. Analysis/Discussion Council instructed staff to investigate potential sites to accommodate the relocation of the auildiny, Planning and Engineering Departments. Criteria established for alleviating the crowded and inefficient working conditions for staff and the public alike included: - 13,000 - 15,000 sq.ft. building - approximately 70 parking spaces to provide adequate parking for staff and public. - accessibility of location, including ease in finding. - lease and/or purchase - cost - disadvantages SITES MEETING CRITERIA WHICH ARE AVAILABLE FOR SALE: 1) 2742 State Street (Triangle Transfer and Storage Co.) Two separate buildings, one 5,910 sq.ft. and one 3,940. To obtain the necessary sq.ft. it would be necessary to build either a full second floor or a mezzanine within one or both of the buildings. With the removal of a quonset hut on the rear of one building, 52 onsite parking spaces can be provided. Additional parking could be obtained by making an arrangement to use railroad right-of-way. Advantages of purchasing the State Street property include close proximity to City Hall; location within the Redevelopment Area would help to continue the trend of revitalizing the downtown; and the possibility of using Redevelopment funds for the purchase and renovation of the building. It would additionally be a sound financial investment for the city. 0 a Disadvantages would include additional traffic congestion in the immediate downtown area and limited street parking. Again, the two buildings would necessitate a physical separation of a portion of the operation. As stated before, this should not necessarily be construed as a negative. It would be desirable to have the entire operation on one floor, but the limited sq.ft. requires construction of a second floor. 2) Bank of America building at southwest corner of El Camino Real and Camino Vida Roble. Approximately 13,000 sq.ft/completely finished interior. Necessary modifications could probably be done by city staff. Ample onsite parking. Cost in excess of $1,000,000./possibly negotiable. Disadvantages - approximately 6-7 miles from Council Chambers/presents a difficulty in transporting large and cumbersome exhibits for City Council and Planning Commission meetings. Could be perceived as a step toward moving City Hall out of the "center" of town. SITES MEETING CRITERIA WHICH ARE AVAILABLE FOR LEASE: 1) 2042 Corte del Nogal (Palomar Industrial Business Park). Industrial/warehouse building, a total sq.ft. of 35,328, with five finished offices and two small restrooms. Owner Ample onsite and street parking. Located in geo center of the city. Good visibility from the street. Lease cost .40 sq.ft., plus triple net. A tenant improvement allowance of $10.00 sq.ft. is available on a long term lease. Disadvantages would be the same as those listed for Bank of America. willing to discuss leasing a portion of available sq.ft. 2) 5411 Avenida Encinas (Ocean Pointe Tech Centre). Industrial/warehouse building comprised of one building 9,796 sq.ft. with potential of leasing portion of adjoining 9,600 sq.ft. building. Ample onsite parking, plus street parking. Lease cost .65 , with a tenant improvement allowance of $10.00 sq.ft. Closer proximity to City Hall. Disadvantages - located on the back side of an industrial park, potentially difficult to see from the street. Building backs on the railroad tracks, possibly requiring some sound-proofing to cut down on the train noise. The wall between the two buildings is a fire wall and as such cannot be broken through. One part of the operation would have to be physically separated because of this wall. This should not necessarily be construed as a negative. 2 0 e 3) 2460 Impala Drive (Palomar Tech Centre 11) office/warehouse building with 24,848 sq.ft., consisting of 16,000 sq.ft. warehouse and two levels suitable for offices of 4,424 sq.ft, each. Ample onsite parking, plus street parking. A povkian of the warehause could be made into a goad sized meeting room, in which to hold Planning Commission and other types of gatherings. Disadvantages would be the same as those listed for Bank of America. Additional properties which were considered, but rejected included: palomar Airport Area - 2320 Camino Vida Roble (Palomar Six Plaza) - unit available too small: hard to find; inadequate parking; lease only. - 2270 Corte de La Pina (Andrex Center) - building too small: very hard to find: inadequate parking: lease only find; inadequate parking; inadequate tenant improvement allowance. - 2463 Impala Drive (Palomar Tech Center I) - hard to - 5580 El Canino Real (southeast corner of Faraday and El Camino Real) - good location; inadequate building size and parking; lease only. - 1989 Palomar Oaks Way (Palomar Oaks Tech. Park) - unsuitable for large volume of walk-in business; inadequate parking; lease only. - 2075 and 2077 Las Palmas Drive - hard to find; inadequate parking; lease only. - 5931 Priestly Drive (Carlsbad Tech. Center) - good location, marginal parking; under construction/available September; lease only. Avenida Encinas Area - 6060 and 6070 Avenida Encinas - good location; extremely inadequate parking; sale or lease. - 5120 Avenida Encinas - total of 12,183 sq.ft. divided into two buildings (6,007 and 6,176 sq.ft.) by a fire wall; good location; marginal sq.ft. and parking; sale or lease. 3 .1 0 1 - 6100 - 6200 Avenida Encinas - poor location; marginal sq.ft.; extremely inadequate parking; sale or lease. - 5893 - 5899 Avenida Encinas - good location; parking appears to be adequate; building under construction - completion date uncertain. Additional information is on file on each property investigated. AL'FE RNAT IVES FOR CONS IDE RATION - Enter into a build-to suit agreement on City owned property (eg, Cannon Lake). - Remain in current location. FISCAL IMPACT Estimated lease costs range from $.80 - $1.00 sq.ft. Purchase of the State Street property would be in the range of $650,000 to $700,000. Estimated necessary improvements at this location are in excess of $200,000. MO/BH/ar 4 e 0 CITY CARLSBAD DOWNTO-dN C,TICE BUILDING Scheme #1 Use one existing building, remove the second Construct a two level structure inside the larger building shell cost: $35/s~ X 11,820 SF $415,000 Site work 70,000 Interest Not included: Design cost City fees Land Advantage: 60 parking spaces, 1 space per 197 SF office Disadvantages: Design restrictions Resulting building poorly sited, no landscape. The building would look like those along Elm Ave., surrounded by parking and would not be cosistent with the Village area where parking is 1 obtrusive. long tern value. It would be hard to avoid a used building look resulting in lower The existing building have relatively little value except as warehouses. Frc the standpoint of office use, they are merely shells without interior finish, proper plumbing and electric systems, no air conditioning or even insulation. To convert to office use would require building a complete struc-ture within the existing structure, only the exterior siding and roof structure would be of value. Acceptable office conversion would probably even require neh sidir and the roofing would have to be replaced. The result is very little saving: would be realized,using the existing shells, to offset a lot of desingn and sesthetic limitations. If the existing buildings were notable structure: say brick construction, there might be an argument for preservation. Scheme #2 Use the existing buildings by constructing a one level office inside and connect the buildings with an attrium. Cost: Existing buildings $25/SF x 9850 SF $25O,OOO Attrium $40/SF x 3250 SF $130,000 Site work $ 60,000 $380,000 Advantages: An attrium would improve aesthetics, provide indoor/outdoor landscape or pat area and improve the interior-lighting An attrium would tie the existing structures together and allow more design f 1 exibili ty. An attrium would open to the street and be more inviting. Parking would be more screened from the street and make less visual impact on the surrounding area. 0 CITY CAFUSBAD DOW" OFFICE BUILDING Scheme #2 continued Disadvantages : Insufficient parking, 43 spaces, 1 space/p5 SF Hard to avoid the converted warehouse look Not particularly efficient site use, minimum landscape area. Scheme #3 Clear the lot and construct a new structure of 12,000 SF Cost for typical speculative office construction: Cost for shell $3O/SF interior $12/SF (No furniture or fixtures) site work not included Design cost $42/SF x 12,000 SF $500,000 70, ooo Inter est City fees Land Advantages: Parking for 57 cars, 1 space/ 210 SF New structure, no design compromise Efficient site use resulting in landscape area Parking visual impact on street is minimized Higher long term building value Disadvantage: Higher initial cost Above cost would require tight design control. Upgrading the design and mate say typical municipal design, could cost $55/SF or $660,000 along with the other cost items indicated above. .-,3 . Can be designed to complement the neighborhood . : .- r - - / ,, ‘4 Q q 33 p e< % q\ s 3 ;‘- c--- I i I 8% i \A khJ 3;:; f.:$3 “a; p b- 1 I \ Q+% L FPO‘q $&A $ I , I I ~ -. 3 \9 2 2 s q 3 L 1 u / ‘\ii k %,A .’ f 3\; 4% 4% <\& ?p j$? $? & y\?< il$‘h =2 \ /’ /’ ./ + r __-- - * =a -3 \ r 3 k- ____I ___^ I- ------ -- c- --->---- - -, I I L __I___- I - I$ bQ I ‘8- I -T4----” /’ I cx3 - i 1 I \ \ , --- b --._ w -------- --__ - . -.-----.-_ _- !$*X t I i I I \