HomeMy WebLinkAbout1985-10-15; City Council; 8369; REPORT ON SPACE NEEDS[I] $ 8
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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
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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.
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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 .
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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.
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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.
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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.
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- 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
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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.
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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 . : .-
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