HomeMy WebLinkAbout2018-11-13; City Council; ; Update on the Real Estate Strategic Plan and Wireless Communication Facilities~ CITY COUNCIL
~ Staff Report ·
Meeting Date:
To:
From:
Staff Contact:
November 13, 2018
Mayor and City Council
Scott Chadwick, City Manager
Curtis M. Jackson, Real Estate Manager
curtis.jackson@carlsbadca.gov or 760-434-2836
CAReview RU..
Subject: Update on the Real Estate Strategic Plan and Wireless Communication
Facilities
Recommended Action
Receive an annual progress update on the overall implementation of the adopted Real Estate
Strategic Plan and an update on the city's management of its Wireless Communication Facility
(WCF) license agreements.
Executive Summary
In October 2017, the City Council approved the Real Estate Strategic Plan (Strategic Plan). At
that time, city staff indicated that staff would provide annual updates to the City Council on the
overall implementation of the Strategic Plan. The purpose of this report is to update the City
Council on the status of the Strat~gic Plan from November 2017 through October 2018 (Annual
Reporting Period). In addition, this report includes an update on the city's management of its
WCF license agreements.
Discussion
On October 17, 2017, the City Council approved the Strategic Plan (Resolution No. 2017-200).
The purpose of the Strategic Plan was to take a more strategic approach to how the city's major
real estate assets are managed, both to maximize the return on the investment of public dollars
and to leverage properties for the greatest public benefit, including addressing future city
facility needs. Additionally, the city's Real Estate division has been tasked with managing the
city's WCF portfolio.
Real Estate Strategic Plan
The Strategic Plan addresses a five-year planning horizon with targeted timeframes that
include: 1) a plan for completing six real estate transactions that were in progress (In Progress);
2) a one-to-three-year strategic plan for nine specific properties (One-to-Three Year Plan); and,
3) a longer-term plan for seven properties which are currently being utilized for city purposes
and are likely to be needed for the foreseeable future (Three-to-Five Year Plan).
Included with this staff report for the City Council's consideration is the first annual update on
the overall implementation of the Strategic Plan (Exhibit 1). This update covers the reporting
period of November 2017 through October 2018 (Annual Reporting Period).
November 13, 2018 Item #5 Page 1 of 26
In 2017, the city received approximately $67,883 in lease revenue. Over the 2018 Annual
Reporting Period, three leases became effective and commenced paying rent (Lot 9 Hotel,
Shorehouse Kitchen, and Bio Tech and Beyond), which increased property lease revenues
approximately % to $220,018, a $152,135 increase in annual lease revenue. Additionally,
the City issued RFP's for the lease of the Dove Library Cafe and the Hawthorne properties,
approved a lease agreement with Chapters to renovate and operate the Dove Library Cafe; and
was authorized to negotiate a lease agreement with Bob Baker Auto Group for the lease of the
Hawthorne property, and was authorized to negotiate new a lease agreement with New Village
Arts.
Over the next Annual Reporting Period in 2019, the city anticipates three more new and
renegotiated leases becoming effective (Chapters at the Dove Library Cafe, Bob Baker Auto
Group at the Hawthorne property, and New Village Arts) resulting in lease revenues increasing
% to $459,312, a $239,294 increase in annual lease revenue. In addition, the city anticipates
selling two properties (Old Fire Station #3 and Pajama Drive), which could potentially generate
an additional $935,000 in one-time revenue to the city, and issuing RFP's for the lease of Lot's 4
and 5 and the lease and/or sale of the city's two Oceanside Properties.
WCF Agreements
The city's Real Estate division is responsible for managing the city's WCF portfolio, which
includes 13 macro WCF and two micro WCF Master License Agreements. Managing the _~CF
portfolio includes negotiating new WCF licenses on city property, renewal of existing WCF
licenses on city property, and the negotiation of new master license agreements for small-cell
WCF within the city's right-of-way. A detailed breakdown of WCF assets is attached as Exhibit 2.
In 2017, the city received approximately $384,138 in WCF revenue. Over the 2018 Annual
Reporting Period, three macro WCF agreements became effective and commenced paying rent
(Verizon Wireless at the Twin D Tanks, AT&T at the Twin D Tanks, and AT&T at the Crossings
Golf Course), which increased annual WCF revenues approximately 11% to $427,400, a $43,261
increase.
Additionally, over the 2018 Annual Reporting Period, staff renewed one micro WCF Master
License Agreement (Crown Castle), and entered into one new micro WCF Master License
Agreement (Mobilitie), which increased micro WCF revenues approximately 65% from $110,580
to $183,000, a $72,420 increase in annual micro WCF revenue.
Combined, the macro and micro WCF agreements generated $610,400 in annual revenue for
the city over the Annual Reporting Period. Overall, the city anticipates revenues to increase
34% over the next Annual Reporting Period to $820,659. However, on October 19, 2018, the
Federal Communication Commission (FCC) issued a ruling, which becomes effective January 19,
2019, that may adversely impact the city's ability to generate and/or regulate existing micro
WCF Master License Agreements, and could reduce the city's 2019 total WCF revenues.
November 13, 2018 Item #5 Page 2 of 26
224
109
Fiscal Analysis
There is no fiscal impact associated with this update.
Next Steps
City staff will continue implementing the approved Real Estate Strategic Plan and manage the
city's WCF portfolio. Staff will return to the City Council for review and approval of documents
on each individual property as required and as appropriate. In addition, city staff will continue
to provide an annual progress update to the City Council on the overall implementation of the
Real Estate Strategic Plan and the Real Estate division's management of the city's WCF
portfolio.
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code Section 21065, receipt of this update 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
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for public
viewing at least 72 hours prior to the meeting date and time.
Exhibits
1. Real Estate Strategic Plan Update
2. Wireless Communication Facility (WCF) Update
November 13, 2018 Item #5 Page 3 of 26
Exhibit 1
{city of
Carlsbad
Real Estate
Strategic Plan
Annual Update
November 2017 -October 2018
November 13, 2018 Item #5 Page 4 of 26
Introduction
On October 17, 2017, the Carlsbad City Council approved the Real Estate Strategic Plan
(Resolution No. 2017-200). At that time, city staff indicated that staff would provide annual
progress updates to the City Council on the overall implementation of the Plan. The purpose
of this strategic plan was to take a more strategic approach to how major real estate assets
are managed, both to maximize the return on the investment of public dollars and to leverage
properties for the greatest public benefit and to meet future city facility needs.
The adopted Real Estate Strategic Plan (Plan) included targeted timeframes as follows:
(1) A plan for completing real estate transactions that are in progress ("In Progress");
(2) A one-to-three year strategic plan for specific properties ("One-to-Three Year Plan"); and,
(3) A longer-term plan for properties which are currently still being utilized for city purposes
and are likely to be needed for the foreseeable future ("Three-to-Five Year Plan").
The following is an update of the real estate assets within each targeted timeframe:
City of Carlsbad
2018 Real Estate Strategic Plan Update 2
November 13, 2018 Item #5 Page 5 of 26
1. In Progress
At the time the Plan was adopted, the following properties had leases underway but
were not fully implemented, were currently leased but the lease was expiring in the
near future, or the City Council had previously given direction on the disposition of
the property. All of the following properties have leases that were negotiated over
the last year or are currently being negotiated.
CURRENT LEASE IMPLEMENTATION
The following properties have lease agreements underway.
Lot 9
Property Lot 9
Size Lot: 3.15 Acres
Location Adjacent to the Westin Resort and Spa and the Crossings
Drive.
Strategic Plan Continue to implement and monitor the ground lease with
Recommendation Grand Pacific Carlsbad, L.P. on Lot 9.
Specific Milestones • Certificate of Occu12ancy issued 1 Lease fully
During Reporting im12lemented 1 and Rent Commencement: July 18, 2018
Period
Next Steps Complete construction of timeshare building.
Annual Reporting • Annual Lease Revenue Rate: $159,965
Period Revenue • Monthly Rent: $13,330.50
• Amount.Received in Re12orting Period: $66,653
City of Carlsbad
2018 Real Estate Strategic Plan Update 3
November 13, 2018 Item #5 Page 6 of 26
Village Grille/Shorehouse Kitchen
Property Shorehouse Kitchen
Size • Lot: 0.11 Acres
• Building: 1,850 Square Feet
Location 2833 State Street
Strategic Plan Continue to implement and monitor the retail lease
Recommendation agreement with Shorehouse Kitchen.
Specific Milestones • Certificate of Occu12ancy issued, Lease fully
During Reporting im12lemented, and Rent Commencement: April 4, 2018
Period
Next Steps Continue to monitor and manage Lease Agreement.
Annual Reporting • Annual Lease Revenue Rate: $95,000
Period Revenue • Monthly Rent: $7,916.16
• Amount Received in Re12orting Period: $63,329
Dove Library Cafe -Chapters
Property Dove Library Cafe
Size Square Feet: 750
Location Dove Library
Strategic Plan Staff to return to the City Council for authorization to release
Recommendation a Request for Proposals (RFP) for leasing the Dove Library
Cafe space.
Specific Milestones • RFP issued: November 2017
During Reporting • Authorization to negotiate: February 2018
Period • City Council lease am;!roval with Cha12ters: July 2018
Next Steps • Issue tenant improvement building permit; in plan check
• Renovate and construct cafe with assistance of city
provided tenant improvement budget of up to $80,000.
• Open for business on or before January 19, 2019 .
• Commence paying rent upon opening for business .
Annual Reporting • Annual Lease Revenue Rate: $14,796
Period Revenue • Monthly Rent: $1,233.00
• Amount Received in Re12orting Period: $0.00
City of Carlsbad
2018 Real Estate Strategic Plan Update 4
November 13, 2018 Item #5 Page 7 of 26
LEASE EXPIRATION AND RENEWAL PROPERTIES
The following properties were leased at the time of Plan adoption, but the leases
were expiring in the very near future.
Bio, Tech, and Beyond
Property Farmers Property
Size • Lot: 1.46 Acres
• Building: 6,000 Square Feet
Location 2351 Faraday Avenue
Strategic Plan Staff to negotiate a one-year lease agreement with a
Recommendation nominal annual rent increase that covers all or at least some
of the city's actual landscape maintenance costs and all of
the trash charges for the property.
Specific Milestones • Previous term ·expiration: January 29, 2018
During Reporting • City Council authorized negotiations: December 12,
Period 2017
• City Council lease renewal approval: January 9, 2018;
two-year lease agreement
Next Steps Continue to monitor and manage Lease Agreement.
Annual Reporting • Annual Lease Revenue Rate: $8,820.00
Period Revenue • Monthly Rent: $735.00
• Amount Received in Reporting Period: $8,085.00
City of Carlsbad
2018 Real Estate Strategic Plan Update 5
November 13, 2018 Item #5 Page 8 of 26
New Village Arts
Property Bauer Lumber Building/NVA
Size • Lot: 0.23 Acres
• Building: 9,400 Square Feet
Location 2887 State Street
Strategic Plan For staff to negotiate two new and separate lease
Recommendation agreements with New Village Arts, one for the 6,300 square
foot rear theatre suit, and one for the 3,100 square foot
front arts incubator suit, including nominal rent increase.
Specific Milestones • Previous term expiration: June 30, 2018
During Reporting • City Council authorized negotiations: June 12, 2018
Period
Next Steps • Finalize new lease agreement
• Present new lease agreement to City Council for
approval in Winter 2019.
• Staff anticipates a five-year lease agreement with rent of
$6,000 per year.
Annual Reporting • Annual Lease Revenue Rate: $12
Period Revenue • Monthly Rent: $1.00
• Amount Received in Reporting Period: $12.00
City of Car lsbad
2018 Real Estate Strategic Plan Update 6
November 13, 2018 Item #5 Page 9 of 26
PREVIOUS CITY COUNCIL DISPOSITION DIRECTION
The City Council had previously provided disposition direction for the Buena Vista
Reservoir Property.
Buena Vista Reservoir
Property Buena Vista Reservoir
Size Lot: 3.16 Acres
Location Located on the south side of Buena Vista Way, east of
Highland Drive and west of James Drive/Lido Place
Strategic Plan For staff to staff continue to implement and monitor the
Recommendation Community Benefit Agreement and the Poinsettia 61
project approvals.
Specific Milestones • Grading 12ermit for Poinsettia 61 Project issued: July 25,
During Reporting 2018
Period • Construction Agreement for 12ark executed: July 31,
2018
Next Steps • Park improvements must be completed by January 25,
2021.
Annual Reporting • Annual Lease Revenue Rate: NA
Period Revenue • Monthly Rent: NA
• Amount Received in Re12orting Period: NA
City of Carlsbad
2018 Real Estate Strategic Plan Update 7
November 13, 2018 Item #5 Page 10 of 26
2. One-to-Three Year Plan
The following properties were scheduled to be addressed within the initial one-to-
three year period of the five year plan horizon (November 2017 -October 2020).
Old Fire Station No. 3
Property Old Fire Station No. 3
Size • Lot: 0.21 Acres
• Building: 2,151 Square Feet
Location 3701 Catalina Drive
Strategic Plan Staff to complete an appraisal of the property to establish
Recommendation the minimum asking price and list the property for sale by
owner in an "as-is' condition.
Specific Milestones • Acquired appraisal: August 20, 2018
During Reporting
Period
Next Steps • Contract with real estate broker to list and sell property:
Fall 2018 to Winter 2019.
Annual Reporting • The Plan estimated city sale proceeds of approximately
Period Revenue $645,000 (April 2016).
City of Carlsbad
2018 Real Estate Strategic Plan Update 8
November 13, 2018 Item #5 Page 11 of 26
Hawthorne Property
Property Hawthorne Property
Size • Lot: 3.08 Acres
• Building: 5,000 Square Feet
Location 2065 Camino Vide Roble
Strategic Plan Staff to issue a competitive RFP for a short-term lease that
Recommendation included a right of first offer to purchase the property.
Specific Milestones • City Council authorized release of RFP: April 24, 2018
During Reporting • RFP issued: April 26, 2018
Period • City Council authorized staff to negotiate with Bob Baker
Auto Grau~: August 28, 2018
Next Steps • Present lease agreement to City Council for approval in
Winter 2019.
Annual Reporting • Staff Anticipates a five-year lease agreement with Rent
Period Revenue of $156,000 per year {$13,000 per month).
City of Carlsbad
2018 Real Estate Strategic Plan Update 9
November 13, 2018 Item #5 Page 12 of 26
The Shoppes at Carlsbad Parking Lot Properties
Property The Shoppes
Size Lot(s): 56.9 Acres
Location Located south of Highway 78, north of Marron Road, east
Monroe Street, and west of El Camino Real, including the
southwest corner of El Camino Real and Marron Road.
Strategic Plan For staff to explore options for entering into a long-term
Recommendation lease agreement for the parking lot properties with Rouse
Properties, and to return to City Council for review and
approval of documents as required and as appropriate.
Specific Milestones • The city and Rouse Properties have initiated preliminary
During Reporting discussions regarding the parking lots surrounding the
Period Shoppes.
• Rouse Properties has been exploring land use
applications to allow more intensive uses on the city-
owned parking lots.
Next Steps • Continue discussions with Rouse Properties.
Annual Reporting • A formal appraisal or valuation would be required to
Period Revenue ascertain the fair market value of the properties;
however, the Plan estimated sale proceeds of no less
than $3,133,275, which is the amount that the city spent
on Bonds to acquire the properties.
City of Carlsbad
2018 Real Estate Strategic Plan Update 10
November 13, 2018 Item #5 Page 13 of 26
Golf Course Lots 4 and 5
Property Lots 4 and 5
Size • Lot 4: 7.1 Gross Acres
• Lot 5: 11.4 Gross Acres
Location Located on the south and north sides of College Boulevard
respectively, just west of the intersection of College
Boulevard and Palomar Point Way.
Strategic Plan For staff to issue a competitive RFP for offers for a long-term
Recommendation ground lease of the properties for either a hotel or class A
multi-tenant corporate commercial office building.
Specific Milestones • City staff cleared any title issues surrounding the
During Reporting property in October 2018.
Period
Next Steps • · Contract with real estate broker to assist in leasing the
property: Spring 2019.
• Release RFP for long-term ground lease of Property:
Spring 2019.
• Negotiate long-term ground lease for property: Fall-
Winter 2019.
Annual Reporting • The Plan estimated lease revenues of approximately
Period Revenue $86,062 per month, or $1,032,739 annually (September
2017).
City of Carlsbad
2018 Real Estate Strategic Plan Update 11
November 13, 2018 Item #5 Page 14 of 26
Pajama Drive -Oceanside Properties
Property Pajama Drive Property
Size Lot: .25 Acres
Location Pajama Drive, Oceanside, CA
Strategic Plan For staff to issue a competitive RFP for offers for the sale of
Recommendation the Pajama Drive Property.
Specific Milestones • Acquired appraisal: August 20, 2018
During Reporting
Period
Next Steps • Contract with real estate broker to list and sell property:
Winter 2019.
Annual Reporting • The Plan estimated city sale proceeds of approximately
Period Revenue $109,000 (April 2016).
City of Carlsbad
2018 Real Estate Strategic Plan Update 12
November 13, 2018 Item #5 Page 15 of 26
Foussat & Mission Avenue -Oceanside Properties
Property Foussat Road & Mission Avenue Property
Size Lot: 2.75 Acres
Location Southeast corner of Foussat Road and Mission Avenue
Strategic Plan For staff to issue a competitive RFP for offers for the lease of
Recommendation the Foussat & Mission Avenue Property.
Specific Milestones • No reportable action milestones during the Annual
During Reporting Reporting Period.
Period
Next Steps • Contract with real estate broker to assist in leasing
property: Summer-Fall 2019.
• Release RFP to lease property: Summer-Fall 2019 .
Annual Reporting • The Plan estimated city lease proceeds of approximately
Period Revenue $16,737 per month, or $200,842 annually (September
2017).
City of Ca rlsbad
2018 Real Estate Strategic Plan Up date 13
November 13, 2018 Item #5 Page 16 of 26
Las Palmas
Property Las Palmas Property
Size • Lot: 2.29 Acres
• Building: 22,627 Square Feet
Location 2075 Las Palmas.
Strategic Plan Staff to negotiate a rent increase with an annual minimum
Recommendation rent adjustment percentage that would cover all ofthe city's
actual cost to maintain, repair, or improve the exterior of the
property, as well as provide the city with some additional
financial return that is at, or closer to, current market rates.
Specific Milestones • No reportable action milestones during the Annual
During Reporting Reporting Period.
Period
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future and, prior to expiration of the
existing lease agreement in 2020, consider negotiating a
new lease agreement with Mira Costa.
Annual Reporting • The Plan estimated city lease proceeds at market rates
Period Revenue of approximately $54,984 per month, or $659,808
annually (July 2017).
City of Carlsbad
2018 Real Estate Strategic Plan Update 14
November 13, 2018 Item #5 Page 17 of 26
Calavera Waste Water Facility
Property Tamarack Avenue
Size Lot: 4.55 Acres
Location Northwest side of Tamarack Avenue, midway between
Carlsbad Village Drive and El Camino Real.
Strategic Plan Staff to retain ownership of the Calavera property until the
Recommendation city explores and identifies a long-term solution that
addresses the city's storage needs.
Specific Milestones • No reportable action milestones during the Annual
During Reporting Reporting Period
Period
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting • NA
Period Revenue
City of Carlsbad
2018 Real Estate Strategic Plan Update 15
November 13, 2018 Item #5 Page 18 of 26
3. Three-to-Five Year Plan
The following properties addressed in the three-to-five year section of the Plan
are currently still utilized for city purposes and are likely to be needed for the
foreseeable future. The goal is to strategically consider and address how these
properties should be managed in the longer-term, both to maximize the return on
the investment of public dollars and to leverage properties for the greatest public
benefit.
Farmers Property
Property Farmers Property
Size • Lot: 13.51 Acres
• Building: 128,846 Square Feet
Location 2351 Faraday Avenue
Strategic Plan Staff recommended to continue to utilize the Farmers
Recommendation property for its current uses for the foreseeable future. If
property is not the location selected for a new city hall/civic
center, city is required to sell property and return funds to
the CFD No. 1 fund account.
Specific Milestones • No reportable action milestones during the Annual
During Reporting Reporting Period.
Period
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting • The Plan estimated city sale proceeds estimated to be
Period Revenue between $25,206,000 and $38,493,843 (December
2016).
City of Carlsbad
2018 Real Estate Strategic Plan Update 16
November 13, 2018 Item #5 Page 19 of 26
CMWD Property
Property CMWD Property
Size • Lot: 6.09 Acres
• Building(s): 18,000 square feet
Location 5950 El Camino Real
Strategic Plan Staff to continue to utilize the CWM D property for its
Recommendation current uses for the foreseeable future. At the time the
CMWD property is no longer needed due to completion of
the Orion Center, it is recommended that the city issue a
competitive RFP for lease of the property.
Specific Milestones • No reportable action milestones during the Annual
During Reporting Reporting Period.
Period
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting • The Plan estimated lease revenues of approximately
Period Revenue $31,590 per month, or $379,080 annually (September
2017).
City of Carlsbad
2018 Real Estate Strategic Plan Update 17
November 13, 2018 Item #5 Page 20 of 26
Village Properties
Property State Street Parking Lots, Roosevelt Parking Lots, Oak Yard
Size • State and Grand parking Lot: .23 Acres
• South State Street parking lot: .37 Acres
• Roosevelt parking lots: .9 Acres
• Oak Yard: 1.35 Acres
Location • State and Grand parking Lot: Northwest corner of State
Street and Grand Avenue.
• South State Street parking lot: State Street between
Carlsbad Village Drive and Oak Avenue.
• Roosevelt parking lots: Roosevelt Avenue between
Grand Avenue and Carlsbad Village Drive.
• Oak Yard: 405 Oak Avenue
Strategic Plan Staff to continue to utilize the Village Properties for their
Recommendation current uses for the foreseeable future.
Specific Milestones • No reportable action milestones during the Annual
During Reporting Reporting Period.
Period
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting • NA
Period Revenue
City of Carlsbad
2018 Real Estate Strategic Plan Update 18
November 13, 2018 Item #5 Page 21 of 26
Faraday Center
Property Faraday Administration Center
Size • Lot: 7.24 Acres
• Building: 68,000 Square Feet
Location 1635 Faraday Avenue
Strategic Plan For staff to continue utilizing the Faraday Center for city
Recommendation administrative offices for the foreseeable future. If a new
civic center is developed, and the Faraday Center is not the
location for the new city hall/civic center, the decision to
lease or sell the Faraday Center should be made at that time.
Specific Milestones • No reportable action milestones during the Annual
During Reporting Reporting Period.
Period
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting • The Plan estimated city sale proceeds between
Period Revenue $9;800,050 and $17,798,950; and lease revenues of
approximately $165,240 per month, or $1,982,880
annually (September 2017).
City of Carlsbad
2018 Real Estate Strat egic Plan Update 19
November 13, 2018 Item #5 Page 22 of 26
IV. Appendix
Property APN
____ Lo_t_9 __ 1 ,
Village Grille/ 1
Shorehouse Kitchen
2833 State Street 203-294-02
....... ·····-•· _ _ ----_ --... . .. ?9?~?~"!:9?.
_Dove Library Cafe 215-050-70
Bio, Tech, and Beyond
5815 El Camino Real
Bauer Lumber/
New Village Arts
Buena Vista Reservoir
-··-
Old Fire Station #3
3701 Catalina Drive
Hawthorne
2065 Camino Vida Roble
The Shoppes
at Carlsbad
Parking Lot Properties
(Rouse Properties)
Golf Course Lots 4 & 5
College Blvd.
& Palomar Point W~y__
Oceanside Properties
Foussat & Mission
Pajama Drive
Las Palmas
2075 Las Palmas Drive
I
I I
I
I
I
I
Calavera Waste Water I
Facility
Farmers Property
5815 El Camino Real
CMWD Property
5950 El Camino Real
..........
213-062-13
203-295-01
203-295-02
156-200-16
167-154-20
213-061-28
156-301-06
156-301-10
156-301-11
156-302-24
165-120-59
212-270-04
212-270-05
160-550-01
149-070-47
213-061-19
167-101-09
213-062-12
(Building)
213-062-13
(Claims
Center)
213-062-14
(Land)
209-050-19
City of Carlsbad
I
SF Acres Acquisition Acquisition
Date Price
137,214 315 ~ • 1952
5,000 0.11 1977
NA
$118,000
750 0.017 1999 NA
6,000 1.46 2002 $1,699,909
(Bldg. SF) 10% ofTotal
Price ·-··--··--·····----·········-··-·-·--·--
10,019 0.23 1997 $498,944
119,339 2.74 1958 Unknown --·-··-·-··----··· -·-·· .. -· ··---,._ . .,_., ____ ., --···-··""'-•··•--
9,200 0.21 1966 $94,850
114,409 2.63 2010 $2,487,000
*5,000
(Bldg. SF)
69,260 1.58 1969 $1,535,000
63,162 1.45 1969 I
1,033,679 23.73 1969
39,204 0.90 1969 I
1,273,259 29 .23 1992 I .....• ·-·--....... -
217,800 18.51 2010 $4,229,417
304,920
I
119,790 2.75 1952 Unknown
10,891 0.25 1952 Unknown
I
22,627 2.29 1987 $1,602,000 I
198,198 4.55 1982 Unknown
588,496 13.51 2002 $15,730,000
*133,922
(Bldg. SF)
... I
i I
265,280 6.09 I 1973 $18,000
2018 Real Estate Strategic Plan Update
Source of Estimated Estimated
Funds Sale Price Lease Price
NA NA $159,965/Yr
General Funds NA $95,000/Yr
3% Annual Inc. ...
General Funds NA $14,796/Yr
CFD No.1 NA $8,820/Yr
··-·-···•""-•··"-·'"·--·-··-···
Redevelopment $1,376,310 $6,000/Yr
Tax Bonds
General Fund NA NA
General Fund I $644,450 NA
CFD No. 1 $2,250,000 $156,000/Yr
To
$3,100,000
1969 Parking I
Revenue Bonds
(paid off in Unknown Unknown
1995)
Upto Up to
General Fund $15,109,875 $1,032, 739/Yr
Up to Upto
NA $3,012,626 $200,842/Yr
NA I $109,000 NA
PFF I $4,600,479 $659,803/Yr
Unknown I I NA NA
I I
CFD No. 1 $25,206,000 NA
To
$38,493,843
*As-ls
vs.
Renovated
1 Upto
Enterprise Fund I
I $5,500,000 $379,080/Yr
20
November 13, 2018 Item #5 Page 23 of 26
Property APN SF Acres Acquisition Acquisition Source of Estimated Estimated
Date Price Funds Sale Price Lease Price
Village Properties
State and Grand
Parking lot
2829-2897 State St. 203-294-02 5,000 0.11 1977 $1,260,000 General Fund $1,376,310 NA
203-294-03
South State Street
Parking lot
3045 State Street 203-296-06 16,117 .37 2009 $1,150,000 Parking In-Lieu $2,213,992 NA
Roosevelt Street
Parking Lots 203-304-02 14,375 0.33 I 1985 $990,000 Redevelopment $1,974,694 NA 2922, 2936-2944 203-304-05 Tax Bonds Roosevelt St.
203-296-06 10,890 0.25 1995 $765,000 Redevelopment $1,495,959 NA 2992 Roosevelt St. Tax Bonds
Oak Yard 204-010-05 39,204 0.90 1965 Unknown General Fund $5,385,453 NA 405 Oak St. 204-010-06
Faraday Center
1635 Faraday Avenue 212-130-31 315,810 7.25 2001 $9,100,000 PFF $11,667,500 $1,982,880/Yr
City of Carlsbad
2018 Real Estate Strategic Plan Update 21
November 13, 2018 Item #5 Page 24 of 26
Exhibit 2
{city of
Carlsbad
Wireless
Communication
Facility
Annual Update
November 2017 -October 2018
November 13, 2018 Item #5 Page 25 of 26
Overall Wireless Communications Facilities (WCF) Revenue
Annual Reporting Period (November 2017-October 2018)
Carrier Location License Term License Annual Rent Annual Rent
Beginning Term 2017 Annual
Expiration Reporting
Period
Sprint Safety Center 11/6/2006 5/23/2022 $43,432 $44,734
Sprint Utilities Safety Center 11/6/2006 5/23/2022 $6,473 $6,440
Sprint Calavera Hills 2/24/2004 11/19/2022 $47,509 $48,934
Comm . Park
Sprint/Crown Castle Ellery 8/19/2016 8/18/2026 $44,293 $45,622
Reservoir
T-Mobile/Crown Castle Calavera Hills 10/15/2008 5/9/2017* $45,366 $46,727
Comm . Park
Verizon Squires Dam 6/14/2017 3/2/2020 $44,036 $45,357
Verizon La Costa High 5/3/2005 5/2/2010** $60,792 $60,792
Reservoir
Verizon Calavera Hills 8/1/2014 7/2/2023 $46,221 $47,607
Comm. Park
Verizon*** Twin D 12/17/2016 12/16/2026 $0 .00 $44,871
Water Tanks
AT&T*** Twin D 8/15/2016 8/14/2026 $0.00 $47,142
Water Tanks
AT&T*** The 7/1/2018 6/30/2028 $0.00 $45,903
Crossings
San Diego County Ellery 4/13/2017 4/12/2037 $0.00 $0.00
Regional Reservoir
Communication
System
Annual Reporting Period Total Revenue: $427,400
• * = License is in holdover paying rent at existing agreement rent rate.
• ** = License is currently in holdover paying rent at 200% agreement rent rate.
• *** = New License Agreements during this Annual Reporting Period.
New and Renewed WCF Agreements
New WCF Macro Agreements that became effective during Annual Reporting Period
• Verizon Wireless -Twin D Ta nks
• AT&T-Twin D Tanks
• AT&T-The Crossi ngs
Renegotiation of WCF Micro Master License Agreement during Annual Reporting Period
• Crown Castle -Small Cell
New WCF Micro Master License Agreements during Annual Reporting Period
• Mobilitie -Sma ll Ce ll
City of Carlsbad
2018 WCF Update
Minimum
Annual Rent
Increase
3%
NA
3%
3%
3%
3%
NA
3%
3%
3%
4%
NA
2
November 13, 2018 Item #5 Page 26 of 26
Update on the Real Estate Strategic Plan and
Wireless Communication Facilities
November 13, 2018
Curtis M. Jackson, Real Estate Manager
Gary T. Barberio, Assistant City Manager
Agenda
•Annual Update on:
–The Real Estate Strategic Plan (RESP)
–Wireless Communications Facilities (WCF’s)
Real Estate Strategic Plan
•Adopted October 2017
–Plan addresses 22 properties
–Framework for future real estate asset decision making
–Staff committed to providing annual updates
–Update covers November 2017 through October 2018
Real Estate Strategic Plan
•Timeframes:
–In Progress: 6 total properties
–One-to-Three Year Plan: 8 total properties
–Three-to-Five Year Plan: 8 total properties
Reporting Period Highlights
•In Progress:
―Lot 9: Completed
―Shorehouse Kitchen: Completed
―Dove Library Café-Chapters: Lease agreement approved
―Bio, Tech, and Beyond: Lease amendment approved
Real Estate Strategic Plan
Real Estate Strategic Plan
Reporting Period Highlights, Cont.
•One-to-Three Year Plan:
―Old Fire Station No. 3: acquired appraisal
―Hawthorne Property: RFP released & tenant selected
Bob Baker Auto Group
―Shoppes at Carlsbad Parking Lots: initiated discussions with
Rouse Properties
―Lots 4 & 5: cleaned-up title issues
Lease Revenue During Reporting Period
•Increased: $67,883 to $220,018 (+224%)
•Projected 2019 lease revenue: $459,312 (+109%)
•Projected 2019 One-time Revenue: $754,000 to $935,000
Real Estate Strategic Plan
Real Estate Strategic Plan
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Lease Revenue Sale Revenue
2017 2018 2019
$935,000
$459,312
$67,883
$220,018
Overview
•Macro WCFs
̶Existing Licenses: 13 total License Agreements
•Micro WCFs (Small Cell):
̶2 Existing Master License Agreements:
◦Crown Castle and Mobilitie
◦184 Nodes (existing and planned)
̶2 New Master License Agreement Negotiations underway:
◦AT&T and Verizon Wireless
WCF’s
Reporting Period Highlights
3 New Macro Sites
•Verizon Wireless –Twin D Tanks
•AT&T –Twin D Tanks
•AT&T –The Crossings Golf Course
2 New Small Cell WCF Master License Agreements (MLA’s)
•Crown Castle
•Mobilitie
WCF’s
WCF’s
WCF Revenue During Reporting Period
•Increased: $494,718 to $610,400 (+23%)
•Projected 2019: $820,659 (+34%)
WCF’s
0
100000
200000
300000
400000
500000
600000
Macro WCF Revenue Small Cell Revenue
2017 2018 2019
$339,500
$481,159
$427,400
$384,138
$183,000
$110,580
•Continue implementing the Real Estate Strategic Plan and manage
the city’s WCF portfolio.
•Provide annual progress update to City Council after the 2019
Annual Reporting Period.
Next Steps