HomeMy WebLinkAbout2003-04-08; City Council; 17127; Funding for Puchase of 3396 Madison StreetAB# 17,127
MTG. 4-8-03
DEPT. ED
CITY OF CARLSBAD -AGENDA BILL
TITLE:
AUTHORIZATION AND APPROPRIATION OF FUNDING
STREET
FOR THE PURCHASE OF APN 204-093-08 3396 MADISON
,s Ab
DEPT. HD.
CITY ATTY.
CITY MGR
RECOMMENDED ACTION:
Approve Resolution No. 2 003-093 authorizing the Mayor to execute documents associated with the
purchase of APN 204-093-08, located at 3396 Madison Street, Carlsbad, CA from Henry J. Reza and
Alex A. Reza, and appropriating $375,000 from the Park In Lieu Northwest Quadrant Fund for the
purchase of said property and payment of surveys, reports and associated expenses.
ITEM EXPLANATION:
In January 2003, the City of Carlsbad was contacted by Mr. David McElveen, on behalf of Henry and
Alex Reza, and offered an opportunity to purchase their property (APN 204-093-08) located at 3396
Madison Street, adjacent to the North West Quadrant Park site. On February 4,2003 the City Council
authorized staff to begin negotiations for the purchase of the property in anticipation of a future public
use.
In March 2003, an appraisal was conducted by Donna Anderson S.R.A., and a price for the property
was agreed upon by the parties based upon the appraised value. The purchase price of the property
was established at $365,000, with the closing of escrow to be contingent upon completion of a Phase I
Environmental Survey to determine the existing condition of the property, and a finding of
consistency with the City’s General Plan, to be made by the Carlsbad Planning Commission on April
2,2003.
The property is currently rented to a tenant of the seller on a month-to-month basis. At this time staff
is recommending that the existing tenant be allowed to remain in the property until the City
determines a specific or interim use of the property.
ENVIRONMENTAL IMPACT:
The Planning Director has determined that the project is exempt from the California Environmental
Quality Act, pursuant to Section 15061(b)(3) of the CEQA Guidelines. Section 15061(b)(3) exempts
projects or activities where it can be seen with certainty that there is not possibility that the activity
may have a significant effect on the environment. Simple acquisition of property, with no plan for
development of that property, is such an activity. Should the City decide to pursue development of
the site, additional environmental review will be conducted.
FISCAL IMPACT:
Although the purchase price for the property is $365,000, there will be additional expenses related to
closing costs, fees and special studies and reports. Staff is requesting an allocation of $375,000 at this
time from the Park In Lieu Northwest Quadrant Fund to purchase 3396 Madison Street and pay all
related expenses. The Council’s current balance in the PIL Northwest Quadrant Fund account stands
at $500,000. Acquisition of this parcel will provide the City with additional property for future public
use.
PAGE 2 OF AGENDA BILL NO. 17 7 127
Page 2 of 2
When an interim use or plan is established for the property, the tenant, if still occupying the property,
may be asked to vacate the premises by a certain date. If the City gives notice to the tenant to vacate,
the tenant may eligible for relocation assistance that would necessitate additional fimding at that time.
The level of relocation assistance is based on each tenant’s individual financial circumstance and the
housing market at the time of relocation. For this reason, staff is unable to estimate the cost, if any, of
relocating a tenant at a future date. Currently the rental income generated by the property is $350 per
month. All rental proceeds post acquisition will be collected as rental revenue for the City.
EXHIBITS:
1. Resolution No. 2003-093 of the City of Carlsbad, California, authorizing the Mayor to
execute documents associated with the purchase of APN 204-093-08, in the City of Carlsbad and
appropriating $375,000 from the Park In Lieu Northwest Quadrant Fund balance.
2. Location Map.
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RESOLUTION NO. 2003-.093
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO
EXECUTE ALL DOCUMENTS ASSOCIATED WITH THE
PURCHASE AND TRANSFER OF INTEREST IN 3396
ALEX REZA, APPROVING APPROPRIATION OF FUNDING
THE PURCHASE AND PAYMENT OF FEES AND EXPENSES
ASSOCIATED WITH THE PROPERTY
MADISON STREET, APN 204-093-08 FROM HENRY J. AND
FROM THE PARK IN LIEU FUND - NW QUADRANT, FOR
WHEREAS, the City Council of the City of Carlsbad has determined that it is in the best
interest of the City to acquire 3396 Madison Street from the current owners, Henry J. and Alex
Reza; and
WHEREAS, the City Council has further determined a purchase price of $365,000 for the
property, based on a property appraisal is appropriate; and
WHEREAS, the acquisition of this property is contingent upon a finding that the
acquisition is consistent with the Carlsbad General Plan, and completion of due diligence.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California as follows:
1.
2.
3.
Ill
Ill
Ill
Ill
That the above recitations are true and correct.
That the Mayor is authorized to execute all documents associated with the
purchase and transfer of interest in 3396 Madison Street to the City of Carlsbad.
That an appropriation of $375,000 for purchase of the property, including all
associated escrow fees and expenses is authorized from the Park In Lieu -
Northwest Quadrant Fund.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council on the
8th day of APRIL 2003, by the following vote to wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall
NOES: Council Member Packard
ABSENT: None
Mayor
ATTEST:
LORRAINE M. WOW ’
City Clerk
I
(SEAL)
Page 2 of 2 of
Resolution No. 2003-093 -2-
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