HomeMy WebLinkAbout1995-03-21; City Council; 13065; AUTHORIZATION TO PURCHASE PROPERTY FOR THE CARLSBAD MUNICIPAL GOLF COURSE PROJECT-
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CITY AUTHORIZATION TO PURCHASE PROPERTY
GOLF COURSE PROJECT CITY
AB# IYiO(05 X
MTG, FOR THE CARLSBAD MUNICIPAL 03/21/95
DEPT, COMM DEWFIN
RECOMMENDED ACTION:
It is recommended the City Council ADOPT Resolution No. 4 5 -6 9 appropriating fur
for purchase of foreclosed land and authorizing staff to initiate acquisition of remaini
parcels for the Carlsbad Municipal Golf Course project.
ITEM EXPLANATION:
Citizen Vote for Golf Facilities - In June 1989, the citizens of Carlsbad appro\
Proposition G which allowed the City to spend more than $1 million of tax revenue on i
construction of two public golf courses and other recreational facilities. Propositior
provided Council with the voter approval necessary to meet the Proposition H limitatic
on spending of tax revenues. Proposition G specifically included authorization
expenditure of funds for property acquisition for the golf courses and recreationan facilitic
Golf Course Site - After assessing the suitability and availability of several alternat
locations for a municipal golf course, a site was identified at Palomar Airport Road a
College Boulevard (Exhibit 2). The site consists of 250 acres of vacant land directly SOI
of the future Macario CanyonNeterans Memorial Park. Preliminary land u'
environmental, geotechnical, and golf course layout studies indicate the feasibility o
municipal golf course facility on this site. Its central City location, accessibility to ma
roads and 1-5, existing adjacent utility and reclaimed water infrastructure, and other factc
also make the site desirable.
Completed Land Acquisition - In December 1994, Council approved a purche
agreement with the Huntington Beach Company for the City's acquisition of approximat
109 acres of property located at Palomar Airport Road and College Boulevard. T
property acquisition represented the first purchase of land for the future development
the municipal golf course facility.
The second acquisition of land for the golf course occurred through foreclosure sale
104 acres immediately adjacent to the previously acquired Huntington Beach Compc
property. The property is in the College Boulevard assessment district and had be
delinquent on property taxes and assessments since 1990-91, In January 1992, Cour
authorized foreclosure on 24 parcels owned by Carlsbad Airport Centre. Underthe terr
of the College Boulevard bond issuance covenants, Council must foreclose when prope
owners do not pay their assessments.
All required legal notices were given to the property owner and other parties with
financial interest in the property (Exhibit 3), with the law firm of Brown, Diven & Hentsch
providing special counsel for the foreclosure lawsuit. At any time throughout t
foreclosure process, the property owner could pay the assessments and stop t
foreclosure. When this did not occur, the final action was the sale of the property by t
San Diego County Marshal.
The Marshal accepted bids on the 24 parcels on March 2, 1995, with the City the 01
the property for a minimum credit bid equal to the delinquent assessments plus penalti
and interest. The City's successful bid acquired 104 of the 141 remaining acres.
bidder on the parcels. In accordance with foreclosure sale procedures, the City purchas
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PAGE TWO OF AGENDA BILL NO. /3.06 5
Additional Land Required - Like the foreclosure property, Carlsbad Airport Centre has not F
property taxes on four additional parcels within their subdivision since 1990-91. However, th
parcels are not subject to the College Boulevard assessment lien and thus, were not incluc
in the foreclosure sale. Three of the four parcels are restricted open space lots while
remaining parcel consists of open space and approximately 10 developable acres. These 1
parcels will require formal appraisal which will be followed by offers to purchase the proper
One small parcel owned by Robert Kelly is also recommended for acquisition. The Kelly pa
is surrounded by the Carlsbad Airport Centre subdivision and is located near College BOW
(see Exhibit 2). This one-half acre parcel has no final map and no access except through fu
golf course property. The Kelly parcel is not considered critical to the golf course design bu
omission would leave an island of land in private ownership within the future golf course prop
boundaries. The parcel will also require formal appraisal which will be followed by an offe
purchase the property.
Plan for Acquisition - Staff requests authorization to proceed to appraise, make offers
purchase, and acquire the four Carlsbad Airport Centre parcels and one Kelly parcel. Mos
the property is open space of nominal value. No estimate of value can be determined for
developable acreage until an appraisal is made. Upon completion of purchase negotiations, s
will return to Council to formally authorize purchase of the property.
Acquisition of these parcels will complete the entire 250 acre acquisition of the golf cou
property. Following acquisition of all parcels, staff will be returning to the City Council wit
recommended project development strategy, procedure, and schedule for the municipal !
course project.
GENERAL PLAN CONSISTENCY
On April 20, 1994, the Planning Commission adopted Resolution No. 3656 finding the Ci
acquisition of the subject property to be consistent with the Carlsbad General Plan.
ENVIRONMENTAL REVIEW
A Negative Declaration was issued by the Planning Director on March 1, 1994 finding
acquisition of the property in accordance with the California Environmental Quality Act.
FISCAL IMPACT:
Land acquisition costs are funded from the golf course enterprise fund (Exhibit 4). l
Huntington Beach Company property was purchased in December 1994 for $800,000. -
Carlsbad Research Centre property was foreclosed upon and acquired by the City wit1
minimum bid of $773,000, plus delinquent property taxes for a total of $1.3 million. Prop(
taxes, CFD taxes and assessments will be brought current. Funds deposited into the Collc
Boulevard assessment district fund will make debt service payments, replenish the reserve fu
and call bonds.
After payment of delinquent and current property taxes, an estimated $1 30,000 will be recour
in the form of general fund property taxes.
assessments, all liens and notes have been extinguished through the foreclosure sale.
With the exception of property taxes i
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PAGE THREE OF AGENDA BILL NO. / 3, 06 5
Purchasing land within street assessment districts has long and short term fiscal impacts as
City must now fund its share of the outstanding bonds. In addition, all of the property plani
for the future golf course lies within the City of Carlsbad Community Facilities District (CFD) Nc
The City is obligated to pay CFD taxes until the land is rezoned as golf course (open space
developed. Until the golf course is operational and generating sufficient funds to cover co
the CFD taxes and district assessments will be borne by general fund subsidies to the !
course enterprise fund.
The total liens on the property and required annual payments are as follows:
For fiscal year 1994-95, the golf course enterprise fund contains $3.2 million in funds for t
purchase of land for the municipal golf course (Exhibit 4). Approximately $638,000 remai
available after the two land purchases and payment of current assessment obligations. The c(
to acquire the remaining four Carlsbad Airport Centre and Kelly parcels will be known up
completion of the property appraisal. Since much of the land is open space, staff believes t
cost to purchase will be nominal, however, at a minimum the $65,000 property tax delinquenci
on the remaining Carlsbad Airport Centre property will need to be paid.
EXHIBITS:
1. Resolution No. g5 *d’?appropriating funds and authorizing staff to acquire property for
a municipal golf course facility.
2. Location map for municipal golf course.
3. Foreclosure process for Carlsbad Airport Centre property.
4. Golf course enterprise fund 1994-95 cash flow requirements.
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0 0 EXHIBIT 1
RESOLUTION NO. 95-67
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, APPROPRIATING
FUNDS FOR PURCHASE OF FORECLOSED LAND
AND AUTHORIZING STAFF TO INITIATE ACQUISITION
OF FIVE REMAINING PARCELS FOR A FUTURE
MUNICIPAL GOLF COURSE FACILITY
WHEREAS, the citizens of the City of Carlsbad, California, previous!
approved by special election vote in June, 1989, as required by Chapter 1.24 (
the Carlsbad Municipal Code, the expenditure in excess of $1,000,000 fc
development of a municipal golf course; and
WHEREAS, the acquisition of property to facilitate the development c
said municipal golf course facility is an authorized use of said funds; and
WHEREAS, property shown in Exhibit 2 is deemed appropriate fc
acquisition for a future municipal golf course facility; and
WHEREAS, assessments on Carlsbad Airport Centre property subjec
to College Boulevard Assessment District liens were delinquent and the Carlsba
City Council authorized foreclosure; and
WHEREAS, on March 2, 1995 the San Diego County Marshal sold th
1 Carlsbad Airport Centre property at foreclosure sale; and
WHEREAS, the City Council of the City of Carlsbad, California, doe
hereby find it necessary, desirable, and in the public interest to purchas
additional land for the municipal golf course facility.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the Cit
of Carlsbad, California as follows:
1. That the above recitations are true and correct.
Ill
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2. That the City Council does hereby authorize the credit bid and
purchase of the Carlsbad Airport Centre property at foreclosure sale.
3. That the City Council does hereby authorize the Finance Directoi
to appropriate $773,000 from the Golf Course Enterprise fund for the purchase o
property at foreclosure sale, $539,000 for delinquent assessments and taxes, anc
$282,000 for current year property taxes and assessments.
4. That staff may proceed wiPh appraisal and purchase negotiation!
for remaining Carlsbad Airport Centre property (Assessor's Parcel Numbers 21 2
081 -1 2, -1 6, -1 8, and 21 2-82-1 0) and Robert Kelly property (Assessor's Parce
Number 21 2-081 -21).
PASSED, APPROVED AND ADOPTED at a regular meeting of the Cit
Council on the 21st day of MARCH , 1995, by the following vote, to wit:
AYES: Council Members Lewis, Nygaard, Kulchin, Finnil;
NOES: None
ABSENT: None
1 ATTEST:
EXHIBIT
Carlsbad Airport Centre
City of Carlsbad
Chevron Property
Ca rls bad M un ici pa I Go If Course
Proposed Property Boundaries
0 e 2- a
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EXHIBI1
FORECLOSURE PROCESS
CARLSBAD AIRPORT CENTRE PROPERTY
DAT€ ACTION
Dec 90 to Dec 91 Carlsbad Airport Centre delinquent in property taxes includ
College Boulevard assessments. Notices sent by the Finar
Department requesting payment. Discussions with sew
Carlsbad Airport Centre partners or agents regardi
payment. Weyerhauser indicates unwillingness to invl
more money in the property.
Council authorizes to Brown, Diven &‘Hentschke to represc
City and proceed with foreclosure.
Suit to foreclose filed at Vista Superior Court. All prope
owners and other parties with financial interest noticed.
Property included in two bankruptcy actions. No partner
other party willing to bring assessments current.
Summary Judgment to foreclose, all parties noticed.
Writ of Execution, all parties noticed.
Jan 92
May 92
Jun 92 to May 94
May 94
Aug 94
Sep 94 San Diego County Marshal First Notice of Sale Unc
Foreclosure, all parties noticed.
Final Notice of Sale Under Foreclosure, all parties noticed
Marshal accepts bids for property at Vista Courthouse
Jan 95
March 2, 1995
ASSESS\FOREPROC
0 e C. *
< EXHIE
GOLF COURSE ENTERPRISE FUND CASH FLOW REQUIREMENTS
FISCAL YEAR 1994-95
SOURCES:
CASH BALANCE 7/1/94 1,954,000
GENERAL FUND CONTRIBUTION 1,200,000
ESTIMATED INTEREST INCOME 46,000
TOTAL CASH AVAILABLE rn
USE OF CASH:
LAND PURCHASES
HUNTINGTON BEACH COMPANY 800,QOQ
FORECLOSURE (BID + DELINQ TAXES) 1,312,000
TOTAL LAND PURCHASE COSTS 291
CURRENT YEAR ASSESSMENTS & TAXES
HUNTINGTON BEACH CO PROP 128,000
FORECLOSURE PROPERTY 282,000
TOTAL CURRENT YEAR ASSESSMENTS & TAXES
OTHER GOLF COURSE EXPENSES
4
TOTAL USE OF CASH rT
m FUNDS AVAILABLE FOR REMAINING PARCELS
assess\golfcas h