HomeMy WebLinkAbout2004-06-15; City Council; 17672; Real property acquisition/CUSD - 801 Pine AVAB# 17,672
MTG. 6-15-04
DEPT. ED
8
TITLE:
ACQUISITION OF REAL PROPERTY INTERESTS
IN 801 PINE AVENUE, CARLSBAD, CA. FROM
THE CARLSBAD UNIFIED SCHOOL DISTRICT
CITYATTY. $62
RECOMMENDED ACTION :
Adopt City Council Resolution No. 2004-198 authorizing the Mayor to execute documents
associated with the acquisition of the Carlsbad Unified School District (CUSD) real property interests
in 801 Pine Avenue (APN 204-100-06), and appropriate funding from the General Capital
Construction Fund in the amount of $827,554 to fund the acquisition and related expenses.
Adopt Housing and Redevelopment Commission Resolution No. 3 85 authorizing the
Commission Chairman to execute documents associated with the acquisition of the Carlsbad Unified
School District (CUSD) real property interests in 801 Pine Avenue (APN 204-100-06), and reallocate
and appropriate $1,409,078 from Village Redevelopment Funds to pay the acquisition and related
expenses.
ITEM EXPLANATION:
On April 5, 1988, the City Council (Council) and Carlsbad Housing and Redevelopment Commission
(the Commission) approved an agreement between the City of Carlsbad, the Commission on behalf of
the Carlsbad Redevelopment Agency, and the Carlsbad Unified School District (CUSD) for the joint
development of a Senior Citizen Center and CUSD administrative offices complex. In that agreement
CUSD was to transfer ownership of approximately 3.31 acres of property located at 301 Pine Avenue,
to the Commission. The property was appraised at a value of $1.6 million. In return, the Commission
was to finance and construct the entire joint use facility and lease back a portion of the facility to
CUSD at $29,800 per year for a 10-year term. At the end of the lease term, CUSD was to receive
condominium ownership interest in their portion of the building. The agreement also provided for a
Right of First Refusal to Purchase, in favor of the Commission, in the event CUSD should wish to sell
the property. In 2003, CUSD notified the City of its intention to relocate its administrative offices
and offered to sell its interest the Pine Avenue facility, to the Commission as provided for in the
original agreement.
In December 2003, the Commission had its own appraisal conducted for the facility, establishing a
current market value of CUSD’s ownership interest at $2,250,000, including the value of recent
improvements to the entire facility that were paid for by the City of Carlsbad, but not reimbursed by
CUSD. At the conclusion of negotiations, both the Commission and CUSD ultimately agreed to a
purchase price of $2,226,632 for CUSD’s entire interest in the property.
Staff is recommending that the City Council and the Commission take action to authorize the
acquisition of the subject property interest, including appropriation of the required funding. To
complete the transaction, the Commission must make a finding that the acquisition is consistent with
the goals and objectives of the Village Master Plan and Design Manual, Village Redevelopment Plan
2000-2004 Village Redevelopment Area Implementation Plan and the General Plan, and will
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ultimately result in the elimination of blight or a blighting influence within the Village and/or be of
general benefit to the Village Area. The attached Commission resolution includes the necessary
findings for approval.
Consistency with the Goals and Objectives of the Villape Master Plan and Desim Manual.
The Village Master Plan and Design Manual indicates that one of the goals for the Village
Redevelopment Area is to “establish Carlsbad Village as a quality shopping, working and living
environment”. The Agency intends to use the subject property for purposes that will enhance the
living environment for elderly/senior persons within the Village and adjacent community. The subject
property is within walking distance of many residential properties located within the Village Area
which house elderlyhenior persons. The services provided at the facility will enhance the lives of this
elderlyhenior population by providing opportunities for meals, exercise and social interaction. The
proposed project will enable the Agency to accomplish the noted goal and is therefore consistent with
the goals and objectives of the Village Master Plan and Design Manual.
The proposed acquisition will benefit the Village Redevelopment Area by providing needed services
to the elderlyhenior population within the area. Due to the concentration of senior housing in the
Village area, the noted property is well situated to provide services to this population and enhance the
quality of life of these residents which benefits the revitalization efforts for the Village Area.
The Carlsbad Redevelopment Agency’s 2000-2004 Redevelopment Implementation Strategy includes
a spending plan that anticipated that the Agency would acquire property for commercial development
and service programs. Therefore, the proposed acquisition is also consistent with this spending plan,
as required by Redevelopment Law.
For General Plan consistency purposes, the Planning Commission made a finding on May 5,2004 that
purchase of the subject property interest is consistent with the 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
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.
FISCAL IMPACT:
The negotiated price for the property is $2,226,632. With estimated additional acquisition costs of
$1 0,000, the total purchase price is estimated at $2,236,632. The property is being purchased under no
threat of condemnation.
Funding is available from the General Capital Construction Fund and the Village Redevelopment
Fund. The Redevelopment Agency will fund the downstairs portion of the property at approximately
63% of the total, or $1,409,078. The City will purchase the upstairs portion of the property at
approximately 37% of the total, or $827,554, from the General Capital Construction Fund. The
source of funds for the acquisition is being split to allow for a wider variety of uses in the upstairs
portion of the property than may be allowable under Redevelopment Law. The actual use of the
PAGE 3 OF AGENDA BILL NO. 17,672
additional space will be decided by the City Council at a future date when more information on the
needs and the related operating costs are known.
The attached resolutions appropriate the remaining balance of the Redevelopment Tax Increment
Bond Funds (approximately $860,000) as well as approximately $549,078 from the Village
Redevelopment Fund Balance. This requires reallocating $85 1,2 15 of the Public Parking
Enhancement Program to future years. The Village Redevelopment Fund has a current balance of
approximately $1.9 million. Estimates of these appropriations have been reflected in the proposed
2004-2005 Capital Improvement Program; however, to allow the escrow to close prior to the new
fiscal year, staff is requesting that these appropriations be approved at this time.
EXHIBITS:
I. Resolution No. 2004-198 of the City of Carlsbad, California.
2. Resolution No. 385 of the Housing and Redevelopment Commission, California
3. Location Map
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RESOLUTION NO. 2004-198
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 801 PINE
AVENUE AND APPROPRIATION OF FUNDING FROM THE
GENERAL CAPITAL CONSTRUCTION FUND.
WHEREAS, in 1988 the Carlsbad City Council and Carlsbad Housing and
Redevelopment Commission approved an agreement between the City of Carlsbad (the City), the
Commission on behalf of the Carlsbad Redevelopment Agency (the Agency) and the Carlsbad
Unified School District (CUSD), for the joint development of a Senior Citizen Center and CUSD
Administrative Offices; and
WHEREAS, the agreement provided for a Right of First Refusal to Purchase in favor of
the CityIAgency in the event CUSD were to ever sell the property; and
WHEREAS, in 2003 CUSD notified the City and the Agency of its intention to relocate
its administrative offices and offered to sell its interest in the property to the Cityithe Agency as
provided in the agreement; and
WHEREAS, the City, the Agency and CUSD have agreed to an acquisition price of
$2,226,632 for CUSD’s entire interest in the property; and
WHEREAS, the total cost for acquisition of the property, including fees, and related
expenses is estimated at $2,236,632; and
WHEREAS, funding of the property acquisition will be made by the City of Carlsbad
from the General Capital Construction Fund in the amount of $827,554 with the balance paid by
the Carlsbad Redevelopment Agency from the Village Redevelopment Fund in the amount of
$1,409,078; and
WHEREAS, the Carlsbad Planning Commission determined on May 5,2004 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:
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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 801 Pine Avenue to the City of Carlsbad.
That $827,554 is appropriated from the General Capital Construction Fund for to 3.
acquisition of the property.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council on the
15th day Of June 2004, by the following vote to wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard
NOES: None
ABSENT: None
Mayor
ATTEST:
&- M. WOOD
City Clerk
Resolution No. 2004-198
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RESOLUTION NO. 385
RESOLUTION OF THE HOUSING AND REDEVELOPMENT
COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA,
AUTHORIZING THE COMMISSION CHAIRMAN TO
EXECUTE ALL DOCUMENTS ASSOCIATED WITH THE
ACQUISITION AND TRANSFER OF INTEREST IN 801 PINE
AVENUE AND APPROPRIATION OF FUNDING FROM THE
VILLAGE REDEVELOPMENT FUND.
WHEREAS, in 1988 the Carlsbad City Council and Carlsbad Housing and
Redevelopment Commission approved an agreement between the City of Carlsbad (the City), the
Commission on behalf of the Carlsbad Redevelopment Agency (the Agency) and the Carlsbad
Unified School District (CUSD), for the joint development of a Senior Citizen Center and CUSD
Administrative Offices; and
WHEREAS, the agreement provided for a Right of First Refusal to Purchase in favor of
the City/Agency in the event CUSD were to ever sell the property; and
WHEREAS, in 2003 CUSD notified the City and the Agency of its intention to relocate
its administrative offices and offered to sell its interest in the property to the City/the Agency as
provided in the agreement; and
WHEREAS, the City, the Agency and CUSD have agreed to an acquisition price of
$2,226,632 for CUSD’s entire interest in the property; and
WHEREAS, the total cost for acquisition of the property, including fees, and related
expenses is estimated at $2,236,632; and
WHEREAS, funding of the property acquisition will be made by the City of Carlsbad
from the General Capital Construction Fund in the amount of $827,554 with the balance paid by
the Carlsbad Redevelopment Agency from the Village Redevelopment Fund in the amount of
$1,409,078; and
WHEREAS, the Carlsbad Planning Commission determined on May 5,2004 that
acquisition of this property by the City of Carlsbad is consistent with the Carlsbad General Plan;
and
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WHEREAS, based on the facts presented to the Commission, the Commission has
determined that the acquisition of the subject property by the Carlsbad Redevelopment Agency is
consistent with the goals and objectives of the Carlsbad Village Redevelopment Plan, the Village
Master Plan and Design Manual, and the 2000-2004 Village Redevelopment Area
Implementation Plan; and
WHEREAS, based on the facts presented to the Commission, the Commission has
determined that the acquisition of the subject property by the Carlsbad Redevelopment Agency
and the ultimate use of it will provide a general benefit to the Village Redevelopment Area by
providing needed services to the elderlyhenior population within the area and to enhance the
quality of life of those elderlyhenior persons; and
WHEREAS, per Section 15061(b)(3) of the State CEQA Guidelines, the acquisition of
the property is exempt from environmental review under CEQA because it can be seen with
certainty that there is no possibility that the activity may have a significant effect on the
environment.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Commission of the City of Carlsbad, California as follows:
1.
2.
That the above recitations are true and correct.
The Housing and Redevelopment Commission hereby approves the acquisition of
an interest in the subject property for the purposes of providing general benefit
services to the elderly/senior residents of the Village Redevelopment Area, and
authorizes the Commission Chairman to execute all documents associated with
the purchase and transfer of that interest share in 801 Pine Avenue to the
Carlsbad Redevelopment Agency.
That the estimated expenditure and distribution of monies from the Village
Redevelopment Fund to acquire the property is $1,409,078.
3.
Resolution No. 385
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4. That the Finance Director is hereby authorized to reallocate and appropriate the
remaining balance (approximately $860,000) of Redevelopment Tax Increment
Bonds from the Village Public Parking Enhancement Program and Village Public
Relations Campaign, and to appropriate the remaining balance of the purchase
price (approximately $549,078) from the Village Redevelopment Fund Balance to
assist with the Redevelopment Agency’s acquisition of its interest share in 801
Pine Avenue.
PASSED, APPROVED, AND ADOPTED at a meeting of the Housing and
Redevelopment Commission on the 15th day of June 2004, by the following vote
to wit:
AYES: Commissioners Lewis, Finnila, Kulchin, Hall and Packard
NOES: None
ABSENT: None
h
Chairman
ATTEST:
RAYMOND R. PATCHETT
Secretary
(SE.4L)
Resolution No. 385
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