HomeMy WebLinkAbout2015-02-24; City Council; 21867; Lease Agreement with URBN Restaurants Inc 2833 State StreetAB#
MTG.
DEPT.
21,867
02/24/15
PW-PEM
CITY OF CARLSBAD-AGENDA BILL
REQUEST FOR AUTHORIZATION TO ALLOW CITY STAFF TO DEPT. DIRECTOR
NEGOTIATE A LEASE AGREEMENT BETWEEN THE CITY OF
CARLSBAD AND URBN RESTAURANTS INC. FOR THE PROPERTY
LOCATED AT 2833 STATE STREET CITY MG .
RECOMMENDED ACTION:
Adopt Resolution No. 2015-046 , authorizing city staff to negotiate a lease agreement between the
City of Carlsbad and URBN Restaurants Inc. for the property located at 2833 State Street.
ITEM EXPLANATION:
In March 2011, the Carlsbad City Council adopted resolution number 2011-42 approving the transfer of
real property, which included the property located at 2833 State Street, from the Carlsbad
Redevelopment Agency to the City of Carlsbad. In November 2011, the Carlsbad City Council adopted
resolution number 2011-433 authorizing a three year lease agreement between the City of Carlsbad
and Rosa Hernandez DBA The Village Grille which expired in November 2014.
The City of Carlsbad issued a Request for Proposal on October 29, 2014 seeking proposals from
qualified tenants to lease 2833 State Street as a restaurant which would enhance the vitality of the
Village area while offering both lunch and dinner service. The city received twelve formal proposals
which were evaluated by an internal selection committee using the following criteria: Respondent's
vision and plan for the property, experience and ability to perform, as well as the financial benefit to
the city. The selection committee ranked each respondent in accordance with the criteria and
subsequently invited the top three cumulative scored respondents for a selection interview. The three
top ranked respondents were in order:
1. URBN Restaurants Inc.
2. California Fruit Wine Co.
3. Cambridge Capital Corporation
After selection interviews were conducted, the selection committee scored the final proposals using
the same criteria. Based on the final cumulative scores, which were extremely competitive, the
selection committee is recommending URBN Restaurants Inc. as the prospective tenant. City staff is
requesting the Carlsbad City Council's approval of the selection and is asking for authority for the
DEPARTMENT CONTACT: Steve Hodges {760) 434-2925 steve.hodges@carlsbadca.gov
FOR CLERK USE. ~ COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC D
DENIED D CONTINUED TO DATE UNKNOWN D
CONTINUED D RETURNED TO STAFF D
WITHDRAWN D OTHER-SEE MINUTES D
AMENDED D REPORT RECEIVED D
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Lease Agreement for 2833 State Street
2-24-15
Page 2 of 2
Municipal Property Manager to begin exclusive negotiations of a lease agreement with URBN
Restaurants for a ninety day period. Staff will return to Council for approval of a lease once the
negotiations are completed.
FISCAL IMPACT:
Once an agreement is approved the lease will generate monthly revenue at market rate for the City of
Carlsbad's General Fund which will be disclosed at the time of lease approval and create additional tax
revenue.
ENVIRONMENTAL IMPACTS:
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 change in the environment, and therefore does not require
environmental review.
EXHIBITS:
1. Resolution No.2015-046 authorizing city staff to negotiate a lease agreement between the City of
Carlsbad and URBN Restaurants Inc. for the property located at 2833 State Street
2. Request for Proposal issued by the City of Carlsbad on October 29, 2014 to lease 2833 State Street
3. List of the names of all thirteen respondents who submitted a proposal
4. Location map
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RESOLUTION NO. 2015-046
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA PROVIDING AUTHORIZATION TO ALLOW CITY STAFF
TO NEGOTIATE A LEASE AGREEMENT BETWEEN THE CITY OF
CARLSBAD AND URBN RESTAURANTS INC. FOR THE PROPERTY
LOCATED AT 2833 STATE STREET
WHEREAS, The City of Carlsbad issued a Request for Proposal on October 29th, 2014
seeking proposals to lease 2833 State Street; and
WHEREAS, the city received twelve formal proposals which were evaluated and scored
by an internal selection committee; and
WHEREAS, the selection committee scored each proposal using the following criteria:
Respondent's vision and plan for the property, experience and ability to perform, and financial
benefit to city; and
WHEREAS, URBN Restaurants Inc, California Fruit and Wine Co. and Cambridge Capital
Corporation ranked as the top three proposals and were invited for a selection interview; and
WHEREAS, based on the final cumulative scores, the selection committee is
recommending URBN Restaurants Inc. as the prospective tenant.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That City of Carlsbad Municipal Property Manager is authorized to enter into
24 exclusive lease negotiations with URBN Restaurants Inc. for a ninety day period for the property
25 located at 2833 State Street.
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3. That staff will return to the Council for approval of the lease once negotiations
have been completed or return to Council for further direction.
1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council ofthe City
2 of Carlsbad on the 24th day of February, 2015, by the following vote to wit:
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AYES: Council Members Hall, Blackburn, Schumacher, Wood, Packard.
NOES: None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
REQUEST FOR PROPOSAL
FOR
2833 State Street Building Lease
Issued by the City of Carlsbad
PROPOSALS DUE:
3:00P.M. Pacific Standard Time
November 28th, 2014
SEND TO:
City of Carlsbad
405 Oak A venue
Carlsbad, CA 92008
Attn: Joe Garuba, Municipal Property Manager
The City of Carlsbad encourages the participation of minority and women-owned businesses
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Table of Contents
I. INTRODUCTION .............................................. 3
II. BACKGROUND AND PROPERTY DESCRIPTION ....................... 3
III. PROPOSAL REQUIREMENTS ..................................... 5
IV. SUBMITTAL REQUIREMENTS .................................... 7
V. PRE-SUBMITTAL ACTIVITIES .................................. 7
VI. NOMINATING AND SELECTION PROCESS .......................... 8
VII. EVALUATION CRITERIA ....................................... 8
VIII.SCHEDULE FOR NOMINATION, SELECTION AND AWARD .............. 9
IX. SPECIAL CONDITIONS ........................................ 9
REQUESTFORPROPOSAL(RFP)FOR
2833 State Street Building Lease
I. INTRODUCTION
The City of Carlsbad (hereafter called "City") is seeking proposals from qualified finns to lease
the 2833 State Street building and open a restaurant offering lunch and dinner service. The
purpose of tllis document is to explain the requirements and procedures for the submission of
fonnal proposals frot:n parties interested in leasing the 2833 State Street building (herein referred
to as "the Property").
II. BACKGROUND AND PROPERTY DESCRIPTION
A. Background
Vision for Carlsbad Village: The City of Carlsbad is in the middle of a focused effort aimed
at promoting the vitality of the downtown village area. In an effort to achieve this, the City is
preparing a new master plan for the Village, which encompasses the city's downtown.
Through the master plan and other efforts, Carlsbad will capitalize on the Village's potential
as a place for people to live, work, and play, helping it to revitalize and emerge as a unique
and memorable center in San Diego County.
The Property is located at the northwest comer of Grand Avenue and State Street, in the heart
of the Village area. The City acquired the Property in 2012 and is located adjacent to
additional property owned by the City (public parking lot) and the North County Transit
District (commuter rail station). It has been leased continuously as a restaurant since 1992.
The proposed Property will serve as another opportunity for enhancing the vitality of the
Village area and will provide yet another attraction for both locals and tourists to enjoy.
B. Intent of Lease
The purpose of the lease is to utilize the Property for a restaurant use serving both lunch and
dinner.
C. Property Description
The Property is located at 2833 State Street, Carlsbad, California with a lot size of
approximately 5,000 sf. Currently, 950 sf. is utilized for kitchen and indoor seating, however
there is an additional 900 sf. in the fonn of a garage that is available for expansion. The
Property includes an outdoor area which can be utilized for dining that is approximately 2,000
sf. All measurements are approximate and will need to be confinned by the applicant.
Below is an outline of land use infonnation applicable to the Property. Note: This outline
provides general infonnation and highlights some applicable standards. For complete
infonnation, please reference the Village Master Plan Design Manual (link below) or contact
the Planning Division at (760) 602-4610.
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General Plan designation: "V" (Village)
Zoning designation: "V-R" (Village Review)
Note: The General Plan is currently being updated and is tentatively scheduled for public hearings
late this year through early next year. Following the General Plan's update, the Zoning Ordinance
will be revised. For more infonnation please visit:
http://www.carlsbadca.gov/services/depts/planning/update/default.asp
Governing land use document: Land use regulations for the Property and surrounding areas are
primarily found in the Village Master Plan and Design Manual, available at
http://www.carlsbadca.gov/services/depts/planning/codes.asp
A map of the Village area can be found at
http://www.carlsbadca.gov/civicax/filebanklblobdload.aspx?BloblD=24147. Note: This document
is anticipated to be replaced by a new master plan, the Village and Barrio Plan. Thus, current
standards may change. For more infonnation, please visit:
http://www.carlsbadca.gov/services/depts/planning/villagebarrio/default.asp.
Coastal Zone infonnation: The Property is outside the Coastal Zone. The Coastal Zone boundary is
along the west edge of the property.
Building standards:
Lot coverage: 100%
Building height: Maximum 45 feet
Setbacks: None required; maximum requirement established for front setback; minimum
setback for at grade parking lots.
Density: Minimum 28 units/acre; maximum 35 units/acre.
Development approval process:
Remodeling or expansion of the Property may be subject to a Village Review Pennit. Below are the
different types of review pennits required. (Note: This list does not provide a comprehensive
description; please refer to the Chapter 7 of the Village Master Plan and Design Manual for full
details.)
Exempt project. Some projects are exempt from needing a pennit, including interior or
exterior improvements to existing structures that do not intensify the use of a structure;
the City Planner detennines if projects are exempt.
Administrative review pennit. This pennit, subject to City Planner approval, is required
for new construction or additions with a building pennit valuation of less than $60,000.
Minor review pennit. This pennit, which requires Planning Commission approval, is
required for new construction or additions with a building pennit valuation of$60,000 to
less than $150,000.
Major review pennit. This pennit, which requires review by the Planning Commission
and City Council, is required for new construction or additions with a building pennit
valuation of at least $150,000.
As the property is outside the Coastal Zone, no coastal development pennit is required.
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Appropriate environmental review will be conducted simultaneously with the Village
Review Pennit.
Pennits require fee payment. The city's fee schedule is available at
http://www.carlsbadca.gov/services/depts/finance/fees/schedule.asp
D. Site Map
For an aerial view of the parcel, please see attached Site Map.
E. Adjacent Uses
The Property is located in the heart of the downtown Carlsbad. The area, commonly referred to
as the Village, is known for its small town feel and is home to a weekly fanner's market as well
as various other community events throughout the year which provide consistent visibility and
foot traffic.
The Village is lined with sidewalks ideal for walking and includes various restaurants, cafes,
pubs, salons, theaters, art galleries, boutique and antique stores plus much more. Most
importantly, it is within walking distance to the beach which is home to several resort hotels.
Ill. PROPOSAL REQUIREMENTS
The following specific items must be provided by the RFP proposal respondent and failure to
do so will result in proposal disqualification:
A. General
The proposal should be concise, well organized and demonstrate the respondent's
qualifications and experience applicable to the envisioned project. The proposal shall be
limited to twenty (20) pages, inclusive of: cover letter, company info, concept details,
financial plans, site plans, renderings and photographs. Type size and margins for text
pages should be in keeping with accepted standard fonnats for desktop publishing.
B. Contents of the Proposal
Proposals submitted in response to this RFP shall be in the following order and shall
include:
1. Executive Summary
Include a 1-2 page overview of the entire proposal describing the most important
elements of the proposal.
2. Company Infonnation
a. Legal name and address of respondent.
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b. Legal form of respondent's company (non-profit, partnership, corporation, joint
venture, etc.). If a joint venture, identify the members of the joint venture and
provide all infonnation required within this section for each member.
c. If company is wholly-owned subsidiary of"parent company" please provide the
address of the local office(s) working on this project.
d. Name, title, address, telephone number and email address of the primary person
to contact conceming the proposal.
e. Years in business.
3. Project Description
Describe the envisioned project m detail including proposed improvements and
schedule.
4. Proposed Rent
Rent shall be negotiated based on market value.
5. Relevant Project Experience
Describe the respondent's experience in operating similar projects/establishments.
List all successfully completed projects of a similar nature.
6. Project Organization and Key Persmmel
a. Describe the proposed project organization, including identification and
responsibilities of key personnel. Indicate the role and responsibility of prime
members. Indicate the extent of the commitment of key personnel for the
duration of the project and fumish resumes of key personnel. Provide an
indication of the staffing level for the project.
b. Provide a detailed description of the experience of the proposer's project team,
including the team's project manager, and other key staff members, on projects
of similar size, scope, and dollar value. For each similar project, include the
client's name and telephone number.
7. Financiallnfonnation
Respondents are required to submit two years of financial statements (Profit and Loss
and Balance Sheets) and year-to-date financial statements as part of the proposal.
Respondent should include financial statements in a separate envelope marked
"confidential financial statements."
8. Tenn
The initial lease tenn will run five (5) years from the cmmnencement date with one
( 1) five (5) year option.
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IV. SUBMITTAL REQUIREMENTS
A. One original and three (3) copies of the proposal shall be submitted in hard copy.
Additionally, one electronic PDF version shall be submitted via USB flash drive. Proposals
submitted by facsimile are not acceptable and will not be considered. Please attach maps,
etc. in a large enough fonnat which allows for easy reading.
B. The proposal shall be signed by an individual or individuals authorized to execute legal
documents on behalf of the respondent.
C. The proposal must be received no later than 3:00p.m. PST, on November 281", 2014
at the office of:
Joe Garuba
Municipal Property Manager
405 Oak A venue
Carlsbad, CA 92008
D. Proposals are to be submitted in sealed packages with the following infonnation clearly
marked on the outside of each package:
1. Name of Finn submitting Proposal
2. "2833 State Street Building Lease"
3. Package Number (e.g., 1 of_, 2 of_)
E. Proposals and/or modifications received subsequent to the hour and date specified above
will not be considered.
V. PRE-SUBMITTAL ACTIVITIES
A. Questions
Any questions pertaining to this RFP should be addressed to Joe Garuba via e-mail,
joe.garuba@carlsbadca.gov. Questions will not be accepted in any other fonnat. Answers
citing the question, but not identifying the questioner, will be distributed simultaneously to
all proposers who received the RFP. Any other officer, agent, or employee of the City of
Carlsbad will not accept verbal questions regarding this RFP and are not authorized to
provide official answers. All questions regarding this RFP must be received in writing (via
e-mail) no later than November 14th, 2014. Written responses to these questions will be
provided no later than November 19th, 2014 to the email address provided.
B. Site Tours
Site tours are not mandatory; however, any requests for tours ofthe Property should be
presented in writing via e-mail by November 14th, 2014 to Joe Garuba, Municipal
Property Manager at joe.garuba@carlsbadca.gov.
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C. Revision to the Request for Proposals
The City reserves the right to revise or rescind the RFP prior to the date that proposals are
due. Submitted proposals shall be valid for a period of not less than 180 days from date of
submittal and may be extended at the mutual agreement of both the City and the
Respondent.
VI. NOMINATING AND SELECTION PROCESS
A. A Selection Committee ("Conunittee") will be established for this project and will include
representatives from various departments within the City of Carlsbad.
B. Based upon the proposals submitted, the Committee may select a short-list of qualified
finns for this project. The City reserves the right to make the final selection based solely
upon evaluation of the written proposals, without short-listing finns or conducting oral
interviews, should it find it to be in its best interest to do so.
C. The Committee may interview the short-listed firms. Based upon the proposal and
interview, the Committee will rank the finalists as to their proposals and qualifications. The
Committee will recommend the selected finn to the Carlsbad City Council and will request
authority to execute a lease with the selected finn.
D. If the negotiating team is unable to reach an acceptable agreement with the selected finn,
the negotiating team will recommend to the City that negotiations be terminated and that
negotiations with the next preferred finn be initiated. Negotiations will continue in this
manner until an agreement has been reached or the City decides to tenninate the RFP
process. The City retains the final detennination to tenninate negotiations and move to the
next ranked finn.
VII. EVALUATION CRITERIA
Applicants will be evaluated on the following criteria:
A. Respondent's vision and plan for the property
B. Respondent's experience and ability to perfonn
C. Financial benefit to the City
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VIII. SCHEDULE FOR NOMINATION, SELECTION AND AWARD
The following schedule of events is subject to change at the discretion of the City:
Release of Request for Proposal
Deadline for Requested Site Tours
Deadline for Submission of Questions/Clarifications
City Written Response to Submitted Questions/Clarifications
Deadline for Proposal Submission
Opening of Submitted Proposals
Proposal Evaluation and Short List
Respondent Interviews (if necessary)
A ward of Lease
October 29th, 2014
November 14th, 2014
November 14th, 2014
November 19th, 2014
November 28th, 2014
November 28th, 2014
December 3rd, 2014
TBD
December 2014
The City anticipates the process for nominating and selecting a provider, and awarding the lease
will be completed by December 2014. Incomplete RFP submissions and/or failure to
acknowledge all addenda to the RFP may be deemed as non-responsive by the City at the City's
discretion.
IX. SPECIAL CONDITIONS
A. Reservations
This RFP does not commit the City to award a lease, to defray any costs incurred in the
preparation of a proposal pursuant to this RFP, or to procure or contract for work.
B. Public Records
All proposals submitted in response to this RFP become the property of the City and are
public records and, as such, may be subject to public review.
C. Right to Cancel
The City reserves the right to revise or cancel, for any or no reason, in part or in its entirety,
this RFP, including but not limited to: selection schedule, submittal date, and submittal
requirements. If the City cancels or revises the RFP, all respondents will be notified in
wtiting by the City.
D. Additionallnformation
The City reserves the right to request additional infonnation and/or clarification from any
or all proposers to this RFP.
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E. Conflict of Interest
The respondent, if selected, shall be required to file a Conflict of Interest Statement with
the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of
Interest Code.
F. Change of Ownership
For the tenn of the ground lease, respondent is precluded from a change of ownership of
more than twenty-five percent (25%) without the City's express, written consent. The City
reserves the right to withhold consent for any reason. Subleasing ofthe property is expressly
prohibited without the prior authorization of the City.
G. Scope Changes
All changes in proposal documents shall be through written addendum. Verbal information
obtained otherwise will NOT be considered in the award process. Proposal submittals
musty acknowledge all addenda. Proposals failing to do so may be considered as non-
responsive by the City and eliminated from further consideration.
H. Proprietary Information
Any restrictions on the use of data contained within a proposal must be clearly stated in the
proposal itself. Proprietary infonnation submitted in response to this RFP will be handled
in accordance with applicable city procurement regulations and the California Public
Records Act. If you have proprietary information, products or services, please identify them
in your proposal.
I. Response Materials Ownership
All materials submitted regarding this RFP become the property of the City. Responses may
be reviewed by any person after final selection has been made. The City has the right to use
any or all system ideas presented in reply to this request, subject to the limitations outlined
in proprietary infonnation above. Disqualification of a proposer does not eliminate this
right.
J. Incurring Costs
The City is not liable for any cost incuned by proposers prior to issuance of an agreement,
contract or purchase order.
K. Lease Award
The award of the lease will be in accordance with, but not limited to, the results of the City's
evaluation. Final approval of selected vendor and award of lease lies with the City of
Carlsbad City Council.
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Respondents to the City of Carlsbad's Request for
Proposal to lease 2833 State Street
Bijan and Mar-Yam Eftekari
Boheme
California Fruit Wine Co.
Caligerman Partners LLC
Cambridge Capital Corporation
Danny Le
Destination: Asia
Donnelly's
9. Maximiano Maldonado
10.North San Diego Restaurant Group LLC
11.0cean Thai Restaurants
12. URBN Restaurants Inc.
/::]
LOCATION MAP
· VICINITY
MAP
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PROJECT NAME EXHIBIT
2833 State Street, Carlsbad CA 92008 4