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HomeMy WebLinkAbout1999-02-16; City Council; 15064; Memorandum Of Understanding Pine School PropMTG. a-h - 4 9 UNDERSTANDING FOR SALE OF THE CITY ATTY@?. A DEPT. RECOMMENDED ACTION : If Council concurs, adopt Resolution No. 79 -69 authorizing the Mayor to sign a Memorandum of Understanding between the City of Carlsbad and Carlsbad Unified School District outlining an acquisition strategy for the Pine School property, and directing staff to initiate the acquisition process. ITEM EXPLANATION : Since 1982 the Parks and Recreation Element of the General Plan has acknowledged the need to expand recreation opportunities in the City’s Northwest Quadrant. More specifically, the General Plan adopted by City Council on September 6, 1994 outlines an objective under the goals of park development “To consider the acquisition of additional parkland in the Northwest Quadrant a priority of the City.” Moreover, in pursuit of those goals, it has been the ambition of Staff and a citizen advocacy group for park development in the Northwest Quadrant to seek the acquisition of the Pine School property if and when that opportunity was set forth. Recently, the issue of the sale of the Pine School property has been the topic of discussion at a City / School Coordinating Committee between staff and a minority of elected officials from both respective Boards. In consideration of the City of Carlsbad’s long standing solicitation to acquire the Pine School site for Community Recreation purposes; and, in consideration of Carlsbad Unified School District’s (CUSD) current desire to negotiate the sale of the property to more effectively address the facility needs of the students within the District, the attached Memorandum of Understanding (Exhibit 2) has been prepared to outline an acquisition strategy. Preparing the framework of the MOU has been a collaborative effort between City and CUSD staff. As presented, the MOU addresses the following commitments and identifies areas which will require further resolution prior to the conclusion of sale, they are: l Commitment to sell / acquire property for the appraised value l Outlines the appraisal process l Establishes timeline for acquisition l Leaseback options l Indemnification l Minimum occupancy time frames and Notice to Vacate expectations l Relocation responsibilities If Council concurs, Staff is prepared to initiate the appraisal process immediately and negotiate additional contingencies of the sale concurrent with the appraisal process. As outlined in the MOU, a target date for conclusion is May 31, 1999. . AB# I<o@ Page 2 FISCAL IMPACT: Ultimately, funding for the acquisition of property for park purposes in the Northwest Quadrant will come from the Park-in-Lieu account for that quadrant. Until an appraisal is completed, the value of the property at this time cannot be established. It is estimated that adequate funding for acquisition exists in the Northwest Quadrant Park-in-Lieu account at this time. The MOU specifies a shared cost between the City and CUSD for the appraisal process. EXHIBITS: I. Resolution No. 9% - 6’j 2. Memorandum of Understanding between Carlsbad Unified School District and City of Carlsbad I Pine School sale. RESOLUTION NO. 99-6!$ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO SIGN A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD UNIFIED SCHOOL DISTRICT OUTLINING AN ACQUISITION STRATEGY FOR THE SALE OF THE PINE SCHOOL PROPERTY FOR COMMUNITY RECREATION PURPOSES WHEREAS, the City of Carlsbad has solicited the sale of the Pine School property from Carlsbad Unified School District (CUSD) for many years as a means of fulfilling the need for parkland in the City’s Northwest Quadrant, and; WHEREAS, the Parks and Recreation Element of the Carlsbad General Plan acknowledges the acquisition of parkland in the City’s Northwest Quadrant to be a priority for the goal of park development, and; WHEREAS, CUSD has indicated a willingness to sell the Pine School property in order to better meet the facility needs of the students within the District, and; WHEREAS, the City and CUSD have prepared a Memorandum of Understanding (a copy of which is attached hereto and made a part 09 outlining the strategy to effectuate the sale of the Pine School property to allow for community recreation purposes and to aid the facility needs of CUSD. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, the following: 1. That the above recitations are true and correct. 2. That the Mayor is hereby authorized to sign a Memorandum of Understanding between the City and CUSD outlining an acquisition strategy for the sale of the Pine School property and, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. That the City Council does hereby authorize staff to pursue the acquisition of the Pine School property for community recreation purposes and return to Council for final approval of the sale when specifics of the acquisition have been further defined. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 16th day of February, 1999, by the following vote to wit: AYES: Council Members Lewis, Hall, Nygaard and Kulchin NOES: None ABSENT: Council Member Finnila ATTEST: . kc% HA K Z, City Clerk KAREN R. KUNDTZ, Assistant City Clerk - MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CARLSBAD (CITY) AND THE CARLSBAD UNIFIED SCHOOL DISTRICT (DISTRICT) FOR THE SALE OF THE PINE SCHOOL PROPERTY In consideration of the City of Carlsbad’s long standing solicitation to acquire the Pine School site for community recreation purposes; and, in consideration of Carlsbad Unified School Districts current desire to negotiate the sale of the Pine School property to more effectively address the facility needs for the students within the District, the following Memorandum of Understanding (MOU) is offered to each respective Board for review, advisement and approval. This MOU serves to memorialize the collaborative endeavors of staff to date in promoting good faith efforts while developing strategies and goals to ultimately accomplish the sale of the Pine School site. Having been the subject of discussion at the November 18, 1998 City/School Coordinating Committee, it was the recommendation of both staff and representatives from each respective Board that the majority of each Board should consider this matter and direct their staff accordingly with respect to the goals and strategies as outlined below: 1. District shall sell the Pine School site to the City for the appraised value prior to May 31, 1999. 2. An appraisal of the site shall be commissioned to determine a fair and equitable purchase price for the 7.2 acre site referred to as the Pine School property. i. .City and District shall seek to retain the appraisal services of a mutually acceptable, reputable and neutral party at a shared cost. ii. In an effort to identify a fair and equitable property value, shared input to the appraisal process from the City and District shall be encouraged. Issues related to that process wifl include but may not be limited to utilizing underlying General Plan and Zoning designation (absent public use of the property), facility demolition and removal, hazardous waste removal, etc. iii. In the event either party shall disagree with the appraised value, an additional appraisal may be commissioned. The total cost of such appraisal shall be assumed by the requesting party. The actual purchase price may then require further negotiations, resulting in an inability to meet the time deadlines stated above. 3. All efforts shall be made to implement the appraisal process and complete the acquisition in a timely manner to accommodate C.U.S.D.‘s need to fund the acquisition of the Calavera School site. 4. City shall lease back the Pine School site to the District for the continuation of current District functions occurring on the property. Specifically those functions are the Carlsbad Village Academy, the Pine School classroom use by elementary students until their relocation to the Jefferson School, and the District maintenance functions currently existing onsite. Terms of the lease shall address but may not be limited to the following: arlsbad Unified School District 801 Pine Avenue l Carlsbad, CA 92008 w (760) 729-9291 l FAX (760) 729-9685 . . .a world class district February 1,1999 Mr. Keith Beverly Senior Management Analyst City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Dear Keith, I received the materials on the appraiser, Randy Tagg, and have had an opportunity to review his work. He appears to be very thorough and knowledgeable of properties in our area. The next step I believe we need to take is to meet directly with him. Would you prefer that I make those arrangements or would you prefer to do this and would you wish to be there for the meeting? Let me know soon. On another matter, I am concerned that the success of this approach of using a single appraiser will result in some possible negative consequences if we do not plan in advance the specific parameters/criteria for conducting the appraisal. I know that we have established in former meetings that medium-high residential density is the current appropriate zoning. However, we have not clearly established the total number of units that could be built under that zoning or the potential types of development. Given the fact that the Senior Center is contiguous to this property and the fact that a great deal of development across town for senior retirement housing/care facilities has occurred recently, I believe this must be considered. And, of course, we both know that this large of a parcel located so centrally downtown, without habitat problems, is a valuable piece of property. We are interested in making sure that before we turn loose an appraiser to begin his work, all these factors and others are figured into the picture. Perhaps it would be timely to have another meeting as soon as we select the appraiser to discuss these issues. r Keith Beverly City of Carlsbad February 1,1999 Page 2 I will present the last draft of the Memo of Understanding between us at my next Board meeting on February lo*. However, I would like to be able to answer questions that might arise concerning the specifics/parameters of how the appraisal will proceed. Let’s talk soon on how this can be accomplished. Cheryl Ernst Superintendent cc: John Blair, Assistant Superintendent, Business Services, CUSD Frank Mannen, Assistant City Manager, City of Carlsbad Ken Price, Recreation and Park Planning Manager, City of Carlsbad WRITE IT - DON’T SAY IT! To From Keith Beverly / Recreation Kathleen Shoup / Clerk's Date February 22 0 Reply Wanted [XINo Reply Necessary 19 99 ATTACHED ARE TWO ORIGINAL MEMORANDUM OF UNDERSTANDING with the Carlsbad Unified School District. Per your conversation with Karen Kundtz, Assistant City Clerk, you are to arrange to have the appropriate person at CUSD sign both documents. They will retain one original and you will arrange to have the second original returned to the City Clerk's Office. If you run into any problems please give me a call as soon as possible. THANKS e