HomeMy WebLinkAbout1987-05-05; City Council; 8990; LEASE OF CITY PROPERTY CARLSBAD BOULEVARD AT PALOMAR AIRPORT ROADL. 9
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CITWF CARLSBAD - AGENDWILL
DEPT. LEASE OF CITY PROPERTY AB# F9%3 TITLE:
MTG.O 5/0 5/87 CARLSBAD BOULEVARD AT CITY 1
DEPT. AD PALOMAR AIRPORT ROAD CITY I
RECOMMENDED ACTION:
By minute motion, approve the disposition of 2.9 acres of sur
property by negotiation of an option for a long-term 1
subject to a Conditional Use Permit or other discretic
approval for property located at Carlsbad Boulevard and Pal
Airport Road.
ITEM EXPLANATION:
A developer, Ted Blonski, is proposing to construct a t
project on the southeast corner of Carlsbad Boulevard and Pa3
Airport Road on 4.6 acres of land. He is also proposir
reconstruct the intersection, eliminating the curve and bridc
Palomar Airport Road and constructing an at-grade
intersection to major arterial standards. This change will
2.9 acres of land on the southeast corner and 6.7 acres of
on the northeast corner. The developer proposes to combine
2.9 acres of City land with his 4.67 acres for his hotel E
The hotel may be on or partially on the City-owned land 01
City-owned land may just be used for parking, depending or
final plan when it is developed.
The developer proposes to construct all street irnprovernr
including a new four-lane bridge over the railroad - posi
under an assessment district. Initially, the developer pro1
a sale in which the City would deed the 2.9 acre parcel t'
developer in exchange for the value of the street improvemi
In this case, preliminary estimates indicate the s
improvements are about $270,000 more than the value of the
causing the City to owe the developer that amount.
Staff recommends the alternative approach of a long-term
similar to that proposed for the South Ponto Drive property.
idea of a long-term lease (40-60 years) was discussed wit
developer who indicated that such a lease would be acceptabl
Disposal of surplus property is usually done with a bid pro
If the City Council is satisfied that bidding is not practic
that a better return cannot otherwise be obtained, Counci
authorize a negotiated disposition. Because the proposed
project would use both the City and the developer's par
bidding is impractical because no one else could put th
parcels together. Leasing the City's 2.9 acres for a stand-
project would probably make development of both prope
impractical or would result in projects of a lower standard
the City desir3s. A negotiation that is based on the C
appraised value ensures a good return with little market
Therefore, staff recommends the Council authorize
negotiation.
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Page Two of Agenda Bill No. f??~
Reconstruction of the street as proposed will also free a
acre parcel of land on the northeast corner of the intersect
No action is proposed at this time for that parcel. It wil
available for City use or disposition at some time in
future.
Unlike the Sammis property to the south, this developer ha
approved discretionary permits at this time. Currently,
property is zoned residential and a Conditional Use Permi
required for a hotel. The property may be rezoned to Tr
Services which would require a Site Development Plan. Regard
of which action is ultimately taken, staff is recommending
the option to lease be subject to obtaining the reqi.
discretionary action. This protects the City in the event
that he may be successful in an eventual lease so that he wil
willing to commit to preparing design plans for the project.
The proposed street alignment of Carlsbad Boulevarc
inconsistent with the State Parks and Recreation Departmf
Master Plan which calls for moving the street east to prc
beach parking. Staff is working with the State to resolve
differences.
developer does not perform, but also indicates to the devel
ENVIRONMENTAL IMPACT:
The Planning Director has determined that release of the pror
for development is subject to environmental review.
FISCAL IMPACT:
If the 2.9 acre parcel is sold to the developer, the City I
have to pay the developer about $270,000 after giving credi
street improvements which are estimated to cost $3,600,000
the City leases the property, the credit could be phased o
number of years so that the City receives a positive cash
each year from the beginning. Until the credit is
amortized, it would nearly balance the lease payment. Onc
credit is exhausted, the City would continue to receive the
payment.
EXHIBITS:
1. Location Map.
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LOCATION MAP c
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PR OPE R TY
4.6 ACRES
LEGEND
EXCESS PROPERTY
CITY OF CARLSBAD
PROPERTY TO BE LEASED . WfMTYMA
pR0J. NO- E
N T.S.
PRoJECT NAME CARLSBAD BLVD. AT
PALOMAR AIRPORT R0.-LEASE
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