HomeMy WebLinkAbout2014-12-09; City Council; 21805; Introduce Ordinance to Amend Chapter 11.02 Lease of City PropertyCITY OF CARLSBAD - AGENDA BILL 13
Introduce Ordinance to Amend the Carlsbad
Municipal Code by Adding Chapter 11.02
Lease of City Property and Section 11.02.010
Allowing Leases of City Property for up to
Ninety-Nine Years
DEPT. DIRECTOR
CITY ATTY.
CITY MGR. 0_ Kb
RECOMMENDED ACTION:
Introduce Ordinance No.
11.02 Lease of City Property and section 11.02.010 allowing leases of city property for up to ninety-nine
years
CS-266 to amend the Carlsbad Municipal Code by adding chapter
ITEM EXPLANATION:
The city owns real property which it currently does not have a use for, but which may be needed for a
public use at some time in the future. In the interim, it may be in the city's best interest to enter into a
long term ground lease of such property to receive revenue from these public resources. Government
Code section 37380 allows for the lease of city owned property for a term of more than 55 years but less
than 99 years if certain procedures are followed. Government Code section 37380(b)(1) permits
Carlsbad, as a charter city, to establish by ordinance alternate procedures for such leases.
The proposed ordinance provides an alternate procedure to allow the city to enter into a lease of city
property for a term of more than fifty-five years but less than ninety-nine years if it is in the best interest
ofthe public to do so.
FISCAL IMPACT:
Enacting this ordinance will not have a direct fiscal impact, however, any leases entered into as a result
of this ordinance will have a beneficial fiscal impact dictated by the terms of the particular lease.
ENVIRONMENTAL IMPAa:
Pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378, this action does
not constitute a "project" within the meaning of CEQA because it has no potential for resulting in either a
direct or reasonably foreseeable indirect physical change in the environment and therefore, does not
require additional environmental review.
EXHIBITS:
Ordinance CS-266
DEPARTMENT CONTACT: Celia Brewer 760-434-2891 Celia.Brewer@carlsbadca.gov
FOR CLERK USE.
COUNCIL AaiON: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUEDTO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER - SEE MINUTES •
AMENDED • REPORT RECEIVED •
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ORDINANCE NO. CS-266
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CAUFORNIA, TO AMEND THE CARLSBAD
MUNICIPAL CODE BY ADDING CHAPTER 11.02 LEASE OF CITY
PROPERTY AND SEaiON 11.02.010 ALLOWING LEASES OF
CITY PROPERTY FOR UP TO NINETY-NINE YEARS
WHEREAS, the city has real property which it does not have a use for but
which may be needed for a public use at some time in the future; and
WHEREAS, it may be in the city's best interest to enter into a long term
ground lease of such property to receive revenue from these public resources; and
WHEREAS, Government Code section 37380 allows for the lease of city
owned property for a term of more than fifty-five but less than ninety-nine years if certain
procedures are followed; and
WHEREAS, Government Code section 37380(b)(1) permits Carlsbad, as a
charter city, to establish by ordinance alternate procedures for leases of more than fifty-five
but less than ninety-nine years; and
WHEREAS, the City Council of the City of Carlsbad desires to establish an
alternate procedure to allow the city to enter into a lease of property for a term of more
than fifty-five but less than ninety-nine years if it is in the best interest ofthe public to do so.
NOW, THEREFORE, the City Council of the City of Carlsbad ordains as follows
that:
1. The above recitations are true and correct.
2. That Chapter 11.02 is added to Carlsbad Municipal Code read as follows:
11.02 Lease of City Property
11.02.010 Long-term lease of city property.
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(a) The city council may enter into a lease of city property for a term in excess
of fifty-five years but not exceeding ninety-nine years pursuant to the procedures set
forth in this section. This section is enacted pursuant to California Government Code
Section 37380 which allows a charter city to establish alternative procedures thereto and
exempts the city from the provisions of subsections (b)(2), (b)(3) and (b)(4) thereof.
Except with respect to leases in excess of fifty-five years, the provisions ofthis section
shall not be deemed in any way to restrict the city's authority to enter into other forms of
leases.
(b) A lease in excess of fifty-five years of property owned, held or controlled
by the city, may be authorized by the city council in accordance with the following
procedures:
(1) Any lease entered into pursuant to this section shall be authorized
by resolution of the city council.
(2) The city shall not be required to engage in a competitive bid
process for the award of such lease; provided, that at the time of adopting the resolution
authorizing the lease the city council makes a determination that entering the lease
without engaging in a competitive bid process is in the best interests ofthe city.
(3) The city council shall make a finding that the long-term lease is in
the best interests ofthe city for economic and/or other articulated considerations of
public benefit.
(4) Pursuant to California Government Code Section 37380(b)(1), the
lease shall be subject to periodic review by the city and shall take into consideration the
then market conditions. The city council hereby establishes that the lease provisions
which will periodically be reviewed, at a minimum, shall be those provisions specifying
the rent to be paid pursuant to the lease. The periodic reviews shall occur In accordance
with a schedule to be contained in the lease and may include such other provisions as
may be indicated by the city council at the time of authorizing the lease. The periodic
review may be in the form of either an express review ofthe terms by the city council or
its designee, or in the form of a procedure contained in the lease for automatic
adjustments ofthe terms, or reappraisals, in response to market conditions, without the
necessity of a discretionary review by a city officer.
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EFFECTIVE DATE: This ordinance shall be effective thirty days after its
adoption; and the city clerk shall certify the adoption ofthis ordinance and cause the full text
of the ordinance or a summary of the ordinance prepared by the City Attorney to be
published at least once in a newspaper of general circulation in the City of Carlsbad within
fifteen days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City
Council oh the 9th day of December 2014, and thereafter
PASSED AND ADOPTED at a regular meeting ofthe City Council ofthe City of
Carlsbad on the day of.
AYES:
NOES:
ABSENT:
_, 2014, by the following vote, to wit:
APPROVED AS TO FORM AND LEGALlPi':
CELIA A. BREWER, City Attorney
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESON, City Clerk