HomeMy WebLinkAbout2014-01-28; City Council; 21493; Approval Promotion Facility 5815 El Camino Real for Higher Education InstitutionCITY OF CARLSBAD - AGENDA BILL
AB# 21,493 APPROVAL OF PROMOTION OF THE
FACILITY LOCATED AT 5815 EL
CAMINO REAL FOR USE BY A HIGHER
EDUCATION INSTITUTION
DEPT.DIRECTOR j ^
MTG. 1/28/14
APPROVAL OF PROMOTION OF THE
FACILITY LOCATED AT 5815 EL
CAMINO REAL FOR USE BY A HIGHER
EDUCATION INSTITUTION
CITY ATTY. j/l
DEPT. CED
APPROVAL OF PROMOTION OF THE
FACILITY LOCATED AT 5815 EL
CAMINO REAL FOR USE BY A HIGHER
EDUCATION INSTITUTION CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 2014-020 approving promotion of the City facility located at 5815 El
Camino Real, for use a higher education institution aligned with Carlsbad's industry clusters
that will serve the regional educational needs ofthe community.
ITEM EXPLANATION:
In December 2001, the City Council approved purchase ofthe property located at 5815 El
Camino Real from the Farmers Insurance Group for future municipal facilities and uses. At that
time, the property was being considered as a site for a new civic center due to its central
geographic location and proximity to other city facilities. The property has two existing buildings:
the main, three-story, 128,846 sq. ft. facility, and the smaller, 6,100 sq. ft. claims building
currently occupied by the Bio, Tech and Beyond life sciences incubator. In addition to the two
buildings, there is a 5.1 parcel of primarily raw, developable land. After approving the purchase,
further actions were taken to determine the future use ofthe 13.51 acre property.
2002
2003
2004
2005
City creates goal team to develop civic center scenarios for the Farmers Building. City
Council appoints 2 member sub-committee to advise staff.
March: City holds 3-day Connecting Community Place and Spirit public workshop to
explore characteristics of a future civic center. More than 300 participants attended.
City Council develops Centre City Gateway goal at annual goal setting workshop with
the purpose of exploring various development scenarios of the Cannon Corridor south
to Palomar Airport Rd. This goal included the possibility of creating a civic village
(civic center).
City Council Council adopts Connecting Community Place and Spirit Draft Guiding
Principles.
March: City Council holds special workshop to review options for developing a civic
center.
• City holds second Connecting Community Place and Spirit workshop to discuss
specifics of a future Grand Civic Plaza (City Hall).
DEPARTMENT CONTACT: Kathy Dodson, 760-602-2744, kathv.dodson(a)carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
WITHDRAWN • RETURNED TO STAFF •
AMENDED • COUNCIL RECEIVED THE •
REPORT/PRESENTATION
OTHER-SEE MINUTES •
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2006
• Citizen-backed Proposition E qualifies for the November 2006 ballot. Proposition E
would have limited development along the Cannon Corridor, preserving agricultural
uses and precluding the potential development of a civic center at that location.
Proposition D was placed on the same ballot by the City Council as a response to
Proposition E. Citizens of Carlsbad approve Proposition D which requires a future
public vote for development of a civic center on property located in the Cannon Road
corridor.
2007
• Staff develops white paper based on the passage of Proposition D examining existing
property availability and timing. Staff recommends that Council approve the
development of a civic center at the Farmers location.
In 2013, the Irving Group conducted an analysis ofthe property to evaluate its highest and best
use. The recommendation was to renovate the large Farmers building and to lease it as market-
rate office space. The renovations to the existing building were estimated to be approximately
$8 million. To offset the renovation cost, the Irving Group also recommended selling or ground
leasing the excess land for the development of additional office space. The full analysis is
included as Exhibit 2 and mentions use for a civic center as well.
In Fiscal Year 2012-13, City Council set a strategic goal to create world class educational
opportunities in Carlsbad. The Community and Economic Development Department has led a
goal team including police, finance, library and cultural arts, and property and environmental
management. The team has focused on recruiting a higher education institution to the city for a
graduate level program that will serve the skill needs of the city's strongest business industry
clusters.
In May 2013, City Council approved a professional services agreement with K. Backus &
Associates, a real estate consultant firm doing significant work with higher education
institutions. KBA, together with their subcontractor Appleseed Inc., have identified the following
public benefits of higher education institutions:
Human capital development through education of local and regional residents
Enhancement of the skills and capabilities of existing employees leading to corporate
growth and success
Attraction of research dollars that support economic growth
Fostering of innovation, entrepreneurship and economic development
Employment of local residents
Purchase of goods and services from local companies
Stimulation of an influx of student, faculty and visitor dollars into the local economy
Service as a community resource
KBA has been working toward developing a strong value proposition for Carlsbad, which will be
the basis of a Request for Expressions of Interest (RFEI). From their experience and through
their research of other successful education expansion programs, KBA has identified the
availability of real estate at minimal cost as an important offering in a successful recruitment.
The project goal team identified that the large Farmers building, could be used for a higher
education institution via a long term lease agreement. The facility provides the ideal location for
a seamless relationship between higher education and the city's business core. The city's
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renovations to the building would be negotiated through the recruitment process, but staff would
expect the cost to be considerably less than renovating the facility to market rate office use.
The Farmers building has not been leased or in use for over a decade and no revenue has
been collected from the building since the city purchased it several years ago. A recent
amendment to the Carlsbad Research Center Specific Plan allows higher education uses on
the site subject to the issuance of a regular conditional use permit. A higher education
institution would provide significant public benefit to the city and would strongly support the
needs ofthe business community. Staff is recommending that City Council adopt a resolution
allowing the building to be promoted for lease by a higher education institution. Taking this
action will allow the city to formally include the availability of the building in the RFEI. Taking
this action would not preclude a civic center on the site should the higher education goal
change, or should further analysis show that both a higher education institution and civic center
could be accommodated on the property.
FISCAL IMPACT:
There is no cost associated with adopting the resolution to offer the use ofthe building by a
higher education institution. Once a prospective institution or consortia of institutions has been
identified, staff will return to City Council for approval ofthe lease, which will include the details
of rent, deferred maintenance and any other fiscal considerations related to the property and
project and will conduct environmental and all other requisite reviews.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical
change in the environment, or a reasonably foreseeable indirect physical change in the
environment, and therefore does not require environmental review.
EXHIBITS:
1. City Council Resolution No. 2014-020
2. Property Overview of the Farmers Insurance Property
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1 RESOLUTION NO. 2014-020
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING PROMOTION OF
^ THE FACILITY LOCATED AT 5815 EL CAMINO REAL FOR
4 USE BY A HIGHER EDUCATION INSTITUTION
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WHEREAS, the City owns a 13.5 acre parcel improved with a 3-story, 128,846
square ft. building located at 5815 El Camino Real, within the Carlsbad Research
Center ("site"), which is currently vacant and not fully utilized; and
WHERAS the approved Carlsbad Research Center Specific Plan allows higher
10 education uses on the site with the approval of a conditional use permit; and
11 WHEREAS, City Council has established a strategic goal to provide world class
12 educational opportunities in the city, and more specifically, to recruit a higher education
1^ institution that will further diversify the city's amenities and address the talent needs of
the local Carlsbad business community and by extension the San Diego region as a
whole; and
WHEREAS, the benefits to a higher education institution include: development of
human capital specific to the needs of the city's residents and businesses;
enhancement of the skills and capabilities of existing employees leading to corporate
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20 growth and success; economic growth through research funding, entrepreneurship and
21 technology transfer; investment by the institution through local employment and
22 purchasing goods and services from local companies; stimulation of an influx of
23 student faculty and visitor dollars into the local economy; and service as a community
resource for meetings and events; and
WHEREAS, City Council has determined that an accredited higher education
institution, preferably a graduate level program, would be an ideal use of the building
located at 5815 El Camino Real at this time, since it is suitably sized for a program
1 targeted to Carlsbad's business clusters, is centrally located within the Carlsbad
2 Research Center, and offers the most seamless environment for academia and
^ business to collaborate for the benefit of the community; and
WHEREAS staff will be soliciting proposals from higher education institutions
which may be interested in leasing the site to further the City Council's goals.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows that:
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10 1. The above recitations are true and correct.
11 2. The City Council approves promotion of the facility located at 5815 El
Camino Real for use by an accredited, higher education institution with a
program that caters to the needs of the business community, subject to
appropriate environmental and other requisite reviews once a specific
proposal is under consideration
3. The lease payment for use of the facility will be determined at the time that
a lease is negotiated, with consideration of the public benefit provided by the
19 higher education institution.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 28*^ day of January, 2014, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Blackburn and Douglas.
None.
ABSENT: None.
MATTHAtL, Mayor
ATTEST:
BARBARA ENGLESON, Cky Clerk