The URL can be used to link to this page

Home My WebLink About2015-04-21; City Council; 21946; Update The Crossings Lots 4 5, Tranferring Funds Related to Ground Lease APN 212-270-04-00 212-270-05-00CITY OF CARLSBAD - AGENDA BILL 18 AB# 21,946 RECEIVE AN UPDATE ON THE CROSSINGS AT CARLSBAD LOTS 4 AND 5 AND APPROVE A RESOLUTION TRANSFERRING $150,000 FROM CITY COUNCIL CONTINGENCY FOR CONSULTANT SERVICES RELATED TO THE GROUND LEASE OF APN 212-270-04-00 AND 212-270-05-00 DEPT. DIRECTORL^' DATE 4-21-15 RECEIVE AN UPDATE ON THE CROSSINGS AT CARLSBAD LOTS 4 AND 5 AND APPROVE A RESOLUTION TRANSFERRING $150,000 FROM CITY COUNCIL CONTINGENCY FOR CONSULTANT SERVICES RELATED TO THE GROUND LEASE OF APN 212-270-04-00 AND 212-270-05-00 CITY ATTY. fipW DEPT. PW-PEM RECEIVE AN UPDATE ON THE CROSSINGS AT CARLSBAD LOTS 4 AND 5 AND APPROVE A RESOLUTION TRANSFERRING $150,000 FROM CITY COUNCIL CONTINGENCY FOR CONSULTANT SERVICES RELATED TO THE GROUND LEASE OF APN 212-270-04-00 AND 212-270-05-00 / CITY MGR. i^C4|p" RECOMMENDED ACTION: Receive an update on the Crossings at Carlsbad Lots 4 and 5 and approve Resolution No. 2015-105 , transferring $150,000 from City Council Contingency for consultant services related to the APN 212-270- 04-00 and 212-270-05-00. ITEM EXPLANATION: The City of Carlsbad has a long-standing policy of operating an effective and efficient organization in order to promote the city's fiscal health. In keeping with that policy, in 2011/2012 city staff, at the direction of the City Council, identified and evaluated properties owned by the city and related entity (Carlsbad Municipal Water District). Recognizing the need for specialized skills in evaluating the highest and best use; staff contracted with The Irving Group, via a Request for Proposals (RFP) process. The result was an analysis of the properties identified as under-utilized. In the fall of 2012, staff and its consultants presented the findings to the City Council and sought direction to move forward with the under-utilized properties. Included in that first phase were the Crossings at Carlsbad Lot 9 (Lot 9), adjacent to the Crossings clubhouse; and the Crossings at Carlsbad Lots 4 and 5 (Lots 4 and 5), located on College Boulevard between Faraday Avenue and Palomar Airport Road (map attached - Exhibit 2). Staff recommended that Lot 9 be considered first, followed by Lots 4 and 5. Staff worked on Lot 9 during 2013 and 2014 which culminated in a long term ground lease with Grand Pacific Resorts on December 9, 2014. At this time, staff would like to proceed with the leasing of Lots 4 and 5. Both Lots 4 and 5 are solely owned by the City of Carlsbad. Lot 4, located on the south side of College Boulevard, is a vacant 6.52 acre parcel with a buildable pad of approximately 5 acres. The lot is zoned Office (O) and Planned Industrial (PM) with similar uses in the surrounding area. The lot is located approximately 1,000 feet from McClellan-Palomar Airport. Staff commissioned an appraisal of the property in June 2014, which was completed by Cushman & Wakefield. The appraised value for Lot 4 was $4.57 million on a fee simple basis. DEPARTMENT CONTACT: Joe Garuba 760-434-2893 joe.garuba@carlsbadca.gov FOR CLERK USE. COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • REPORT RECEIVED • Crossings at Carlsbad Lots 4 and 5 4-21-15 Page 2 of 3 Lot 5, located on the north side of College Boulevard, is a vacant 11.4 acre parcel with a buildable pad of approximately 7 acres. The lot is zoned Office (0) and Planned Industrial (PM) with similar uses in the surrounding area. The lot is located approximately 1,500 feet from McClellan-Palomar Airport. Staff commissioned an appraisal of the property in June 2014, which was completed by Cushman & Wakefield. The appraised value for Lot 5 was $7.01 million on a fee simple basis. As currently zoned, both parcels have many allowable uses including administrative office buildings, corporate headquarters, hotel, or government facilities. Due to the prominence and size of both parcels, and the potential for use either jointly or independently, staff recognizes the potential need for outside real estate consultants to assist with this effort, such as outside real estate counsel and marketing firms. Outside legal counsel is also recommended in this effort to assist with negotiations and preparation of property related documentation. It is anticipated that a Request for Proposals (RFP) will be prepared to solicit proposals from developers interested in developing the parcels to their highest and best use. Staff expects to establish a minimum financial return for the parcels during preparation of the RFP and will seek City Council's approval prior to issuance of the RFP. The selection criteria established by staff to evaluate the proposals will include respondents experience and ability to perform, financial benefit to the city, and respondents vision and plan for the properties. The following is a preliminary schedule: • April - June 2015 Prepare Request for Proposals for development of Lots 4 and 5 • September 2015 Proposals due to the City of Carlsbad • October 2015 City Council consider proposals and directs staff to enter into negotiations FISCAL IMPACT: Staff requests that the City Council authorize the transfer of $150,000 from City Council Contingency for consultant services as necessary to assist with the leasing of Lots 4 and 5. 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. Approve Resolution No. 2015-105transferring $150,000 from City Council Contingency for consultant services related to APN 212-270-04-00 and 212-270-05-00. 2. Location Map. EXHIBIT 1 RESOLUTION NO. 2015-105 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, 3 CALIFORNIA, TRANSFERRING $150,000 FROM CITY COUNCIL CONTINGENCY TO USE TOWARDS CONSULTANT SERVICES 4 RELATED TO APN 212-270-04-00 AND 212-270-05-00 5 WHEREAS, the City of Carlsbad has a long-standing policy of operating an effective and 6 7 8 9 Municipal Water District), and 11 WHEREAS, the City Council previously directed city staff to maximize the utility of city owned assets, and WHEREAS, the City of Carlsbad owns vacant parcels (APN # 212-270-04-00 and 212-270- 05-00) adjacent to the Crossings at Carlsbad, commonly referred to as Lots 4 and 5, and WHEREAS, staff recommends using outside consultant services to assist with the efficient organization in order to promote the city's fiscal health, and WHEREAS, in keeping with that policy, in 2011/2012 city staff, at the direction of the City Council, identified and evaluated properties owned by the city and related entity (Carlsbad 13 14 15 16 17 marketing and development of Lots 4 and 5. 18 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 the City Council direct staff to solicit proposals for development of Lots 4 and 5 to their highest potential use. 19 20 21 22 23 24 3. That the City Council approve Resolution 2015-105 , transferring $150,000 25 from the City Council Contingency account for use towards consultant services 26 related to the marketing and development of Lots 4 and 5. 27 /// 28 3 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 21^* day of April 2015, by the following vote to wit: AYES: NOES: Council Members Hall, Blackburn, Schumacher, Wood, Packard. None. ABSENT: None. OA MATT HALL, Mayor ATTEST: BARBARA ENGLESON,^y Clerk (SEAL) •f, ^ .A. ^ LOCATION MAP SITE NOT TO SCALE PROJECT NAME THE CROSSINGS AT CARLSBAD LOTS4&5 EXHIBIT PLOnED BY: SCOn EVANS PLOT DATE:2/9/15 PAm:D:\TFANSPORTATK)N O£P/U?7M£NASm£FTS\J0e GARUBA\THE CROSSINGS LOTS 4 AND 5.0IW The Crossings at Carlsbad Lots 4 and 5 Pat Thomas, Public Works Director Joe Garuba, Municipal Property Manager 4/21/15 Lot 5 Lot 4 The Crossing at Carlsbad Lot’s 4 and 5 Background •In 2012 Council gave direction to explore ground leasing Lots 4, 5 & 9 •Long-term ground lease was recently completed for Lot 9 with Grand Pacific Resorts (Westin Hotel) •Staff requests Council direction to move forward with the ground leasing of Lots 4 & 5 •Lots 4 & 5 could be leased either jointly or independently Property Description •Lot 4 •South side of College Boulevard •6.5 acre parcel (buildable pad of 5 acres) •Lot zoned Office (O) and Planned Industrial (PM) •Appraised value is $4.57 million •Lot 5 •North side of College Boulevard •11.4 acre parcel (buildable pad of 7 acres) •Lot zoned Office (O) and Planned Industrial (PM) •Appraised value is $7.01 million •External Analysis identified likely use as either Hotel or Corporate Office 4 Proposed Schedule •Prepare Request for Proposal April –June 2015 •Proposals due to city September 2015 •Council considers proposals October 2015 Staff Recommendation •City Council direct staff to move forward with the ground leasing of Lots 4 and 5 •Approve Resolution No. 2015-043, which appropriates and authorizes $150,000 for consultant and legal services as necessary