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Home My WebLink About1986-02-04; City Council; 8369-2; ACQUISITION OF SPACE FOR BUILDING, PLANNING AND ENGINEERING DEPARTMENTSe B r~~# J'3bS-*4 MTG...LU&U5- DEPT. c* Iaqr ACQUISITION OF SPACE FOP. BUILDIPJG, CITY ATTYl! PLANN ITJ G AND EN GIIJEE RIN G DEPARTT4ENT S TITLE: d 0 -d u cd 5 0 c rl w .rl cdG r=a oa, d u 3 zg cd h0 h w ow -a a a3 *d 2.5 u 22 mcd (II *d a OL) 0 v &I ua u4J au ucd gE a2 eH ea2 Q 001 14 AA 2 * U 1 Or 3 0 0 ei+ F 0 c DEPT. HD.~ ; ClfY M G W, A .- CI F CARLSBAD - AGE", ILL RECOMMENDED ACTION: Authorize and direct staff to finalize negotiations and prepare documents to approve one of the following alternatives: A. B. Lease s2ace at 2431 Impala Drive. Purchase a building at 2075 Las Palmas Drive. ITEM EXPLANATION : Two buildings in the industrial area are being recommended for Council consideration. to have appropriate office space constructed within the existing shell. $15 per square foot and would be amortized as part of the monthly rent, paid directly by the city, or in case of a purchase be added to the purchase price. The buildings are vacant and would need The cost of these tenant improvements is estimated at The two alternatives are outlined in FISCAL IMPACT, Alternative A would provide for a four-year lease with option to renew. building's design, location, parking and cost. purchase option on this building. This is the preferred alternative because of the There is no Alternative B would provide for a lease with an option to purchase. The building could also be lease-purchased pursuant to a lease-purchase agreement with a bank or financing entity. If the City Council feels that it is better to purchase a buildii it is recommended that the city enter into a lease with an optioi to purchase, This would allow the Council to seek voter approva prior to exercising the purchase option. Under the lease-purchase approach, the city would enter into an agreement with a bank or financing entity who would purchase the building and lease it to the city,At the end of the term of the lease-purchase agreement, the city would own the building. Legally and technically, the city would only be obligated to make lease payments one year at a time and could end the lease purchase agreement at the end of any given year. argued under this approach, that a vote would not be required since the city's1 obligahion only extends for one year at a time and would be less than one million dollars. Preliminary office layout studies have indicated that the Bui Engineering and Planning Departments will need about 18,000 squa feet of space. from 22,627 to 24,490 square feet. The balance of the space aba 18,000 square feet has been considered for use as storage or f a possible location of administration office for the Utilities/ Maintenance Department, It can be The buildings the City has been investigating CO Agenda Bill BL9-*l % + k Date of Meeting 2/4/86 Dept. City Manager Page 2 ITEM EXPLANATION, Con' t. The City currently leases 5,760 square feet of warehouse space for 436 per square foot. This lease will expire in October 19E The excess space in the Building, Planning and Engineering Buil could be used as a warehouse until a permanent warehouseis buil in the second phase of the Public Safety and Service Center (PE The recommended use of the space would be to house the Administ Offices of the Utilities/Maintenance Department, When the Pub1 Safety and Service Center opens in the Fall of 1986, the equipn maintenance division of the Utilities/Maintenance Department wj move to the PSSC, The balance of the department will remain at the Oak Street yard. This separation will cause operating difficulties for the department and it would be desirable to mc the entire department to the safety center. The field operatir units of the Utilities/Maintenance Department would be moved tc the PSSC. Having the U/M Director and his administrative stafj located with the Building, Engineering and Planning Department: would provide for closer coordination and sharing of informatic and resources between those departments and would put the U/M Director in closer proximity with the rest of his department. FISCAL IMPACT : If the City Council decides to lease building A, the annual rei would be approximately $235,692. cost would be charged to the general fund and the balance agaii utility funds. If the City Council decided to purchase building B, an appropr of approximately $1.7 million would be needed, Under either proposal the city would be required to pay for janitoria.1 services and utilities which is estimated at 28C pe square foot per month. Seventy-five percent of the PALOMAR TECH CENTRE: I, BUILDING I Address: 2431 Impala Drive Size: 24,490 square feet ParkLng: 88 spaces Term: Four years Rent :: $942,767 (total rent could range from $895,746 to $942,767 over four-year term of lease) * .) Agenda Bill # s3 (09 -#- I Date of Meeting - 2/4/86 Dept. - City Mqr. Page 3 FISCAL IMPACT, Con I t . PALOMAR AIRPORT BUSINESS P_e m-.. . Address : 2075 Las Palmas Size: 22,627 square feet Parking: 80 spaces Term: Four years with option to purchase Rent: $1,350 , 761 (total rent could range from $1,272,929 to $1,350,761 over four-year term of lease. 1 Purchase Price: $1,754,405 Lease-purchase cost - $2,100,000 EXHIBITS: Location Map - Building A Location Map - Building B Building B 2/11/86: NOTE: Additional information will be provided to Council at their meeting. 24,490 Square Foot Building Divisible to 6,122,12,245 or 18,368 Square Fec Building #I, Palomar Tech Centre 1 2431 & 2433 Impala Drive, Carlsbad, California 0 Landscaped Industrial Park in Palomar Airport Area 0 Prime Freestanding R&D/Light Manufacturing Facility 0 Offices being built-out with HVAC and Restrooms 0 4 - 12 x 12 Ground Level Truck Doors 0 Fire Sprinklers construction) 0 14’ 6” Clear Height 0 1,200 Amps, 208 Volt, 3 Phase Power 0 3.11/1,000 Parking Ratio 0 Neighbors include: City of Carlsbad Public Safe Center (under construction), Beckman Instrumt Hughes Aircraft, Chrysler Corporation, Farmer: Insurance Regional Headquarters (under Site Plan on Reverse Side 50‘#/S.F. NNN First Year Rent with $10/S.F. Orange County Tenant Improvement Allowance For more information. please contack CHUCK HARDY, JOHN ANEWALT or ED SCHRENZEL (619) 434-4100 3150 Pi0 Pic0 Drive, Ste. 100, Carlsbad, California92008 iiicnoiii~inii rnhi~niwCn uCL)c#k, UIC nccu nRidiNcn FnnM THE flWNFR nF THF PRnPFRTV OR FROM OTHFR ZOIIRCFS THAT W DEEM RELIABLE WE HAVE NO REASON TO WUBT ITS ACCURACY BUT WE DO NOT GUA 924C-ODh a***** This building is ideal for light manufacturing, warehouse distribution or research and develop- ment. Units are available from 10,000 square feet with office space suited to individual needs. The design provides flexible space finished to the requirements of the tenant. Palomar Airport Business Park is master planned to provide an ex- cellent work environment at competitive rates. Building Features * Tilt-up concrete construction. * Space available from 10,OOO to 22,627 square A Custom or standard interior office im- provements constructed to meet client re- * Site designed for easy truck access, with 10 ft. by 12 ft. overhead doors in each unit. and the port of San Diego served by 26 ship- ing lines. * All weather FAA-operated airport located next to the Park with a 4,700 ft. runway accom- modating aircraft up to a DC-9. * 1.8 million population in county, 890,000 in the city of San Diego (the 9th largest city in the United States). * Within 1 !h hr. drive of the Los Angeles metro- politan area with more than 11 million popula- tion. 1 hr. to Orange County. * Diversified labor force of half a million. * 1 !h miles from Interstate 5 and 2 miles from * Located 1 mile from the La Costa resort corn- munity. Major companies in area include Burroughs Corp., Hughes Aircraft, Beckman Instru- ments, US. Foam, World Communications, Inc., Linear Corp., Lockheed and Cal Omega, Inc . * Palomar Airport Business Park is a 330 acre master-planned industrial park which opened in 1975. the Pacific Ocean, * Ample on-site automobile parking. * A clear ceiling height of 16 feet. * Fire sprinkler system. * Landscaped site. Location Features * Central location in North San Diego County, one of the fastest growing areas of California. j, 35 minutes from downtown San Diego. * 35 minutes to San Diego international airport + 10 minutes to key North County communities.