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Home My WebLink About2016-11-08; City Council; ; Authorizing the City Manager or designee to act in behalf of city in decisions and actions necessary to implement ground lease options for the Crossings at Carlsbad West View Lot 9CA Review {:,jJ__ ~ CITY COUNCIL ~ Staff Report Meeting Date: To: From: Staff Contact: Subject November 8, 2016 Mayor and City Council i/ Kevin Crawford, City Manag~ Curtis M. Jackson, Real Estate Manager Curtis.jackson@carlsbadca.gov or 760-434-2836 Authorizing the City Manager, or his designee, to act on behalf of the City in all future decisions and actions necessary to implement the Ground Lease Option and Amendment to the Ground Lease Option with Grand Pacific Resorts for property known as the Crossings at Carlsbad West View Lot 9 Recommended Action Adopt a resolution authorizing the City Manager, or his designee, to act on behalf of the City of Carlsbad (City) in all future decisions and actions necessary to implement the Ground Lease Option and the Amendment to the Ground Lease Option with Grand Pacific Resorts for the property known as the Crossings at Carlsbad West View Lot 9 (Lot 9). Executive Summary The City, in its capacity as lease manager for the Carlsbad Public Financing Authority (CPFA), and Grand Pacific Resorts are working together to take and complete all actions necessary to fully implement the Ground Lease Option and the Amendment to the Ground Lease Option (the Lease Option) for Lot 9. The implementation of the Lease Option will require numerous documents to be executed on behalf of the CPFA, the Carlsbad Municipal Water District (CMWD) and the City. In order to streamline the process and avoid unnecessary delays, staff is recommending that the City Council adopt a resolution authorizing the City Manager, or his designee, to act on behalf of the City in all future decisions and actions necessary to implement the Lease Option for Lot 9, and to do so consistent with and in full compliance with the terms and conditions expressed in the Lease Option and to the satisfaction of the City Attorney. Discussion In April of 2000, the City of Carlsbad City Council and the CMWD Board of Directors approved a Joint Exercise of Powers Agreement, creating a Joint Powers Authority known as the CPFA. The City and CMWD (Member Agencies) subsequently determined that that the parcel referred to - as Lot 9 was underutilized, and directed the CPFA to solicit proposals for the lease of Lot 9. In November of 2013 the Member Agencies authorized the CPFA to enter into exclusive negotiations with Grand Pacific Resorts for the ground lease of Lot 9. Concurrently, the CPFA authorized the City to negotiate the ground lease and act in its capacity as lease manager for the CPFA. In December 2014, the CPFA approved a Ground Lease Option with Grand Pacific Resorts for Lot 9 for the development of either hotel rooms or hotel rooms and time share units. In July of Item #8 November 8, 2016 1 of 5 2016, the CPFA approved an Amendment to the Ground Lease Option and with this action Grand Pacific Resorts made the election to develop Lot 9 with both 71 hotel rooms and no less than 32 time share units. In order to fully implement the Lease Option, numerous actions must be taken and various documents must be executed. Currently the Mayor is authorized to execute documents on behalf of the City acting in its capacity as lease manager for the CPFA. As many of the actions and document executions are extremely time sensitive, staff is recommending that the City Council authorize the City Manager, or his designee, to act on behalf of the City in all future decisions and actions necessary to implement the Lease Option for Lot 9, and to do so consistent with and in full compliance with the terms and conditions expressed in the Lease Option and to the satisfaction of the City Attorney. Fiscal Analysis NA Next Steps If the staff recommendation is approved, the City Manager, or his designee, will be authorized to execute all documents related to the implementation of the Lease Option for Lot 9. Environmental Evaluation (CEQA} The city as the lead agency, and the CPFA as a responsible agency, under the California Environmental Quality Act ("CEQA") conducted the appropriate environmental review. An Environmental Impact Report ("EIR") was prepared for the Westin Hotel and Timeshare in accordance with CEQA, the CEQA Guidelines, and the Environmental Protection Procedures (Title 19) of the Carlsbad Municipal Code ("CMC"). The EIR addressed the environmental impacts associated with all discretionary applications for the proposed project, including ultimate build-out of the entire project. The analysis contained in the EIR concluded that all significant impacts would be mitigated to below a level of significance. The City Council certified the EIR on February 23, 2016. Exhibits . 1. Resolution authorizing the City Manager, or his designee, to act on behalf of the City of Carlsbad in all future decisions and actions necessary to implement the Ground Lease Option and the Amendment to the Ground Lease Option with Grand Pacific Resorts for the property known as the Crossings at Carlsbad West View Lot 9. Item #8 November 8, 2016 2 of 5 RESOLUTION NO. 2016-228 A RESOLUTION OF THE CARLSBAD CITY COUNCIL AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO ACT ON BEHALF OF THE CITY OF CARLSBAD IN ALL FUTURE DECISIONS AND ACTIONS NECESSARY TO IMPLEMENT THE GROUND LEASE OPTION AND THE AMENDMENT TO THE GROUND LEASE OPTION WITH GRAND PACIFIC RESORTS FOR THE PROPERTY KNOWN AS THE CROSSINGS AT CARLSBAD WEST VIEW LOT 9 Exhibit 1 WHEREAS, pursuant to City of Carlsbad City Council (City) Resolution No. 2000-123 and Carlsbad Municipal Water District Board of Directors (CMWD) Resolution No. 1080, on April 18, 2000, the City and the CMWD (Member Agencies) approved a Joint Exercise of Powers Agreement, creating a Joint Powers Authority known as the Carlsbad Public Financing Authority (CPFA), to provide for the financing of public capital improvements for the Member Agencies and for other purposes as permitted under the Joint Powers Law as agreed to by the parties; and WHEREAS, in August 2012, the Member Agencies determined that the parcel referred to as the Crossings at Carlsbad West View Lot 9 (Lot 9) was underutilized; and WHEREAS, Lot 9 is a combination of two adjacent properties: one a 2.7 acre property owned by the City, and a secon~ 0.45 acre property owned by the CMWD, for a total site area of 3.15 acres; and WHEREAS, pursuant to City Resolution No. 2013-258 and CMWD Resolution No. 1483, on November 5, 2013, the Member Agencies authorized the CPFA to enter into negotiations with Grand Pacific Resorts for the ground lease of Lot 9 and to act on behalf of the City and CMWD in all future decisions and actions related to the ground lease of Lot 9; and Item #8 November 8, 2016 3 of 5 WHEREAS, pursuant to CPFA Resolution No. 65, on November 5, 2013, the CPFA authorized the City to negotiate the ground lease for Lot 9 and act in its capacity as lease manager for the CPFA; and WHEREAS, pursuant to CPFA Resolution No. 66, on December 9, 2014, the CPFA approved a Ground Lease Option with Grand Pacific Resorts for Lot 9 for the development of either hotel rooms or hotel rooms and time share units; and WHEREAS, pursuant to CPFA Resolution No. 72, on July 26, 2016, the CPFA approved an Amendment to the Ground Lease Option and with this action Grand Pacific Resorts made the election to develop Lot 9 with both 71 hotel rooms and no less than 32 time share units; and WHEREAS, in order to fully implement the Ground Lease Option and the Amendment to the Ground Lease Option (together, the Lease OptionL numerous actions must be taken and various documents must be executed; and WHEREAS, currently the Mayor of the City of Carlsbad is authorized to execute documents on behalf of the City acting in its capacity as lease manager for the CPFA; and WHEREAS, many of the actions and document executions necessary to fully implement the Lease Option are extremely time sensitive, and as such it would be beneficial and more expedient for the City Council to authorize the City Manager, or his designee, to act on behalf of the City in all future decisions and actions necessary to implement the Lease Option for Lot 9. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Carlsbad, California, as follows that: Item #8 November 8, 2016 4 of 5 1. The above recitations are true and correct. 2. The City Manager, or his designee, is hereby authorized to act on behalf of the City of Carlsbad in all future decisions and actions necessary to implement the approved Ground Lease Option and the Amendment to the Ground Lease Option with Grand Pacific Resorts for the property known as the Crossings at Carlsbad West View Lot 9, and to do so consistent with and in full compliance with the terms and conditions expressed in the aforementioned Ground Lease Option and the Amendment to the Ground Lease Option and to the satisfaction of the City Attorney, including any lot line adjustments needed to implement the Lease Option. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 8th day of November, 2016, by the following vote, to wit: AYES: Hall, Wood, Schumacher, Blackburn, Packard. NOES: None. ABSENT: None. (SEAL) Item #8 November 8, 2016 5 of 5