HomeMy WebLinkAbout1987-03-17; City Council; 8920; CARLSBAD BOULEVARD AT AVENIDA BATIQUITOS |SOUTH PONTO INTERCHANGE | LEASE OF CITY PROPERTYAB# p92 0 TITLE:
CARLSBAD BOULEVARD AT AVENIDA MMTG.3/17/87 BATTQUITOS (SOUTH PONTO INTER- DEPT.cM CHANGE) LEASE OF CITY PROPERTY
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CIWF CARLSBAD - AGENWILL
RECOMMENDED ACTION:
It is recommended that the City Council approve disposition of
surplus property by negotiation of an option to make a long
term lease for property located at the South Ponto interchange
(to be renamed Avenida Batiquitos) with Sammis Properties, Inc
ITEM EXPLANATION:
Sammis Properties, Inc., has an approved Master Plan for the
development of the Batiquitos Lagoon Educational Park on a
168 acre site. This project is being developed in two phases.
Phase I final maps have been approved by the City and grading
and infrastructure construction has begun.
Phase I1 and 111, which is expected to begin in Spring '87,
anticipates construction of the rest of the development. The
primary entrance to this development is Avenida Batiquitos. ! plan involves bridging the railroad with a road to connect in1 Carlsbad Boulevard at the South Ponto interchange. The presei interchange is an antiquated structure with left-hand on and (
ramps and an extremely narrow freeway undercrossing. Carlsbac
Boulevard has a very wide median. Under the Master Plan, the
on ramps and off ramps be reconstructed in accordance with Ca:
standards, complete Carlsbad Boulevard to major arterial stanc
and complete Avenida Batiquitos to secondary arterial standarc
As an alternative, the developer proposes to demolish the brii
and interchange and replace it with an at-grade, signalized intersection. The median in Carlsbad Boulevard would be redul in width and the roadways moved westerly. This would create
two parcels of surplus street right-of-way on the east side o
Carlsbad Boulevard. Parcel 1 is 2.1 acres, Parcel 2 is 1.6 acres (see Exhibit 1). The developer plans on developing a
restaurant on Parcel 2, This realignment is in conflict with
the State Department of Parks and Recreation General Plan for
South Carlsbad State Beach. However, state representatives
have indicated a willingness to work with the City to resolve
this issue.
conditions for connecting into Carlsbad Boulevard are that thc
Initially, the developer proposed a sale in which the City wo deed both surplus parcels to the developer in exchange for th value of the street improvements which accrue to the public.
The value of the property is more than the value of the stree
improvements, so the difference ($2 million estimate), would
be paid by the developer to the City, Staff recommends an
alternative approach.
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Page 2 of Agenda Bill No. 2920
Although the sale or exchange of surplus property is a method
some cities utilize to dispose of property, others have chosen
to make land available on long term leases (40-60 years).
Virtually all of Mission Bay in the City of San Diego is
developed on long term leases which generates substantial
revenue to the City annually. For reasons stated in the
fiscal impact section, staff thinks a lease is better for
the City. As a result, the idea of a long term lease was
discussed with the developer who indicated that such a lease
or sale would be acceptable.
It has been the developer's desire to acquire both parcels
through sale or lease, however, staff is recommending the
option of a negotiated disposition only on Parcel 2 (restauran
1s most integral to the approved Master Plan, and leave Parcel
1 (2.1 acres) to the City. At some point in the future, the
City could request proposals for the development of Parcel 1.
Sammis Properties could compete in the process for that
Parcel.
Disposal of surplus property is usually done with a bid proces
If the City Council is satisfied bidding is not practical or
that a better return cannot otherwise be obtained, you may
authorize a negotiated disposition. Sammis owns the adjacent
land. The City is covered by the Sammis Master Plan which
limits land uses and makes them an integral part of the develc
ment. The improvements necessary to create the surplus land
will be constructed under an assessment district. A negotiati
that is based on the City's assessed values ensures a good ret
with little market risk. Given the existing land use restrict the property has a somewhat limited market.
reasons, staff recommends the Council authorize the negotiatic
site). This would provide the property to the developer which
For all of these
ENVIRONMENTAL IMPACT:
The Planning Director has determined that release of the prop(
for development is subject to environmental review.
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Page 3 of Agenda Bill No. 8920
FISCAL IMPACT :
If both parcels are sold to the developer, it would generate
approximately $2 million cash after credits for improvements.
If the City leases the property, it is estimated that the
lease on Parcel 1 alone would generate several million
approaching $130,000. Parcel 2 could generate similar
returns. In addition, the City would still own the land
which would continue to increase in value, the development
would generate property taxes and sales taxes, and the City
and the developer could be assured of a quality development
on each site.
dollars over the term of the lease with annual payments
EXHIBITS :
1. Location map.
BATIQUITOS LAGOON
EDUCATIONAL PARK
NOT TO SCALE
-9- --- EXISTING f
lllllllllllllllll NE w R OAD
- 6ATIQUlT-05
PROJECT NAME CARLSEA
AVENIDA BAT1 QUITOS- LANDLEASE