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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 PAGE 2 OF AGENDA BILL NO. 17,672 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 8 0 t 0 cu 0 w 0 5 z .3AV 09 e E a I- 0 0 a ..... ... 8.i.. . .. ... . u z n a 4 I 00 I '2 n U m J a: U _. 3hV IIINlVY i r' i! 0) h 8 '3AQ 3Nld 8 1 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. 2004-198 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: //I 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 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 Page Two -2- 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. 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 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 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 Page Two -2- 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 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 Page Three -3-