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HomeMy WebLinkAbout2004-04-27; City Council; 17608; Acquisition of the Carlsbad Girls Club Facilitiesa w > 0 a a a 4 .. z 0 F 0 a 4 0 z 3 0 0 - AB# 17,608 TITLE: CITYATTY. - ACQUISITION OF THE CARLSBAD GIRLS CLUB MTG. 4/27/04 FACILITIES - 3368 EUREKA PLACE DEPT. ED I RECOMMENDED ACTION: Adopt Resolution No. 2004-139 authorizing the Mayor to execute documents associated with the acquisition of the Carlsbad Girls Club facilities (APN 205-1 12-37) from the Carlsbad Girls Club for the relocation of the Centro de Informacion, and distribute funds accordingly, from the Community Development Block Grant allocation for Centro de Informacion. ITEM EXPLANATION: On April 1, 2003, the City Council reallocated Community Development Block Grant (CDBG) funds in the amount of $766,177 for relocation of the City’s Centro de Informacion (Centro). Relocation assistance was broadly defined as the acquisition of a property, rehabilitation of a facility or purchase and installation of modular units. In January 2004, the Carlsbad Girls Club, represented by its President, Robert Richardson, contacted the City of Carlsbad about transferring ownership of the Carlsbad Girls Club facilities at 3368 Eureka Place, to the City of Carlsbad. The City Council met to discuss the acquisition and the possibility of using the facility as a permanent location for the Centro and the Adult Learning Center. The Council agreed that acquisition of the property for those purposes would be in the best interest of the City and negotiations were initiated. In subsequent correspondence from Robert Richardson (March 29, 2004), an acquisition price of $275,000 was established by the Girls Club, along with several conditions of the transfer of ownership. The conditions are as follows: 1. Acquisition price - $275,000. 2. 3. Mounting of an exterior plaque, acknowledging the building as the “Helen Allman Building” in recognition of Ms. Allman’s contributions. Lease terms with existing tenants honored by the City. The Carlsbad Girls Club currently leases their facility to Neighborhood House Association (Headstart program), and Montessori Arts and Sciences Inc., and rents a portion of the facility, on a month to month basis, to Church on the Coast/Foursquare Church. Initial meetings have been held with each of the tenants to discuss relocation rights and responsibilities under federal regulations for the designated CDBG funding. On April 6, 2004, the City Council directed staff to accept the terms offered and move forward with acquisition of the property for the purpose of relocating the Centro de Informacion and Adult Learning Center. On March 17, 2004, the Carlsbad Planning Commission determined that acquisition of the facility for municipal use, was consistent with the Carlsbad General Plan. 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 PAGE 2 OF AGENDA BILL NO. 17,608 may have a significant effect on the environment. Simple acquisition of property, with no current plan for development of that property, is such an activity. At such time as the City pursues developmenthedevelopment of the site, additional environmental review will be conducted. The U.S. Department of Housing and Urban Development has completed its review of this project and all environmental grant conditions were removed as of April 15,2004. FISCAL IMPACT: CDBG funding for relocation of Centro de Informacion was allocated on April 1, 2003 in the amount of $766,177. Acquisition of property to accommodate the relocation was identified as an appropriate use of the CDBG funds. Staff estimates that up to $315,000 may be necessary to acquire the Carlsbad Girls Club facility for this purpose. This amount includes the purchase price, acquisition expenses such as escrow fees, and any expenses associated with tenant relocation assistance. The estimated balance of funds ($45 1,177) will be used for further development of the site. In addition, the property being acquired currently generates income from three (3) existing tenants. Future revenues generated from leasehent payments to the City will depend in part on the date of the close of escrow and the length of time the tenants continue their tenancy at the facility. Based on information staff has received from the Carlsbad Girls Club, the property is currently generating gross income of approximately $8,5 1 1 per month. Since CDBG funding will be utilized for acquisition, revenues generated from the property subsequent to acquisition by the City will be considered program income and must be directed towards the operation of the Center and its programs, or reallocated to another CDBG eligible project/program. The City will not be able to change the use of the property unless the City provides affected citizens with reasonable notice of any proposed change and either: (1) The new use of such property qualifies as meeting one of the national objectives of the CDBG program and is not a building for the general conduct of government; or (2) The City reimburses the CDBG program the fair market value of the property, less any portion of the value attributable to non-CDBG funds; or (3) The City is no longer participating in the CDBG program and it has been at least 5 years since the closeout of the recipient's last grant. EXHIBITS: 1. Resolution No. 2004-139 of the City of Carlsbad, California. 2. Location Map 3. Offer Letter - Robert Richardson (March 29,2004) a 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 RESOLUTION NO. 2004-139 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS ASSOCIATED WITH THE ACQUISITION AND TRANSFER OF INTEREST IN 3368 EUREKA PLACE AND DISTRIBUTION OF ASSOCIATED MONIES FROM COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS. WHEREAS, on April 1, 2003, the City Council reallocated Community Development Block Grant funds in the amount of $766,177 to fund the relocation of Centro de Informacion; and WHEREAS, the City Council of the City of Carlsbad has been offered an opportunity to acquire the Carlsbad Girls Club facility located at 3368 Eureka Place from the Carlsbad Girls Club; and WHEREAS, the City Council has determined that it is in the best interest of the City to acquire the Girls Club facility; and WHEREAS, the City Council has further determined a purchase price of $275,000 for the property, is appropriate; and WHEREAS, the total cost for acquisition of the property, including fees, and related expenses is estimated at $3 15,000; and WHEREAS, funding of the property acquisition will be made from the Community Development Block Grant Program Funds; and WHEREAS, the Carlsbad Planning Commission determined on March 17,2004 that acquisition of this property by the City of Carlsbad is consistent with the Carlsbad General Plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: ill Ill Ill I// 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2c 21 22 23 24 25 26 27 28 1. That the above recitations are true and correct. 2. The Mayor is authorized to execute all documents associated with the purchase and transfer of interest in 3368 Eureka Place to the City of Carlsbad. That the estimated expenditure and distribution of monies from CDBG funds to 3. acquire the property is $3 15,000. 4. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council on the 27th dayof April 2004, by the following vote to wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall, and Packard NOES: None Mayor ATTEST: City Clerk (SEAL) Resolution No. 2004-139 page 2 -2- m X I m - - I . ?I i I\ i-1 0 0. 5 '\ . March 29,2004 Helen Allman Youth Center Carlsbad Girls Club 3368 Eureka Place Carlsbad, California 92008 City of Carlsbad 1200 Carlsbad Village Drive, Carlsbad, CA 92008 Attn: Mayor Bud Lewis Council Members Dear Mayor & Council, The entire Board of Directors unanimously voted in favor of continuing the process of selling the center to the City per the items and conditions below: 1. Purchase price of $275,000.00 to be put into an escrow account for our use to close out the Carlsbad Girls Club. 2. Tenants The Montessorri School will use the facility for the remainder of their lease until June 30,2004. Head Start to continue use of the building for the terms of their lease. The Sunday church group will use the facility until June 30,2004. The city to research any city facilities available for there use. They have been good tenants for many years and we would highly recommend them to anyone. 3. The buildmg shall be called the Helen Allman Building. A wall mounted exterior plaque would be nice to give Helen Allman credit for her donation to the city. We understand that you will serve all ages including the youth. The Carlsbad Library Learning Center can provide building and/or monument signs as needed and approved by the City of Carlsbad Planning Department. We know time is of the essence and can be accessible to your city staff to continue forward promptly. Please inform us of anythng we need to do to continue this process. H& Sincerely Robert Richardson, President (760) 434-8400 6 CERTIFICATION FOR ACCEPTANCE OF DEED This is to certify that the interest in real property conveyed by the grant deed dated April 20, 2004, by Carlsbad Girls Club, a California Corporation, to the City of Carlsbad, a Municipal Corporation, is hereby accepted by the City Council of the City of Carlsbad, California pursuant to Resolution No. 2004-139, adopted on April 27,2004, and the grantee consents to the recordation thereof by its duly authorized officer. DATED: April 28,2004