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HomeMy WebLinkAbout1987-05-05; City Council; 8990; LEASE OF CITY PROPERTY CARLSBAD BOULEVARD AT PALOMAR AIRPORT ROADL. 9 n w > 0 M c. a, 4 .. z 0 F " a J 5 z 3 0 0 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. 4- - 0 0 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. * ,- I - 0 e LOCATION MAP c r 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 -