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HomeMy WebLinkAbout2019-02-12; City Council; ; Authorize the release of a Request for Proposals to sell the property located at 3701 Catalina Drive, commonly known as Old Fire Station No. 3.Feb. 12, 2019 Item #1 Page 1 of 14 CITY COUNCIL Meeting Date: To: From: Staff Contact: February 12, 2019 Mayor and City Council Scott Chadwick, City Manager Curtis M. Jackson, Real Estate Manager Curtis.jackson@carlsbadca.gov or 760-434-2836 CA Review~ Subject: Authorize the release of a Request for Proposals to sell the property located at 3701 Catalina Drive, commonly known as Old Fire Station No. 3. Recommended Action Adopt a Resolution authorizing the release of a Request for Proposals to sell the property located at 3701 Catalina Drive, APN 167-154-20, commonly known as Old Fire Station No. 3. Executive Summary . Staff is requesting City Council authorization to release a Request for Proposals (RFP) to sell the property located at 3701 Catalina Drive. In February 2016, the Carlsbad Fire Department relocated from Old Fire Station ·No. 3 to_.the recently constructed Fire Station No. 3, located in the Robertson Ranch East neighborhood. Upon relocating~ the Carlsbad Fire Department's use of the property ceased at which point Old Fire Station No. 3 became surplus and is no longer required by the city. In October of 2017, City Council approved the Real Estate Strategic Plan, which recommended that the city list.Old Fire Statton No. 3 for.sale. Discussion The Old Fire Station No. 3 is located ori the southeast corner of El Camino Real and Chestnut Avenue, at 3701 Catalina Drive (Exhibit 2: Location Map). Old Fire Station No. 3 was built in 1976 where it operated uninterrupted until the opening of the new Fire Station No. 3 in 2016. The property's lot size is 12,092 square-feet, and is developed with a 2,127 square-foot building. The building is a two-story structure located in a residential neighborhood, and has five (5) bedrooms and three (3) bathrooms, with two large roll-up garage doors in the front and rear that allow vehicular access to and though the garage. The property has a General Plan Land Use designation of Residential 0-4 du/ac (R-4) and a Zoning designation of One Family Residential (R-1-8000). The RFP will be released and available for a 45-day period in which an interested party can submit a proposal to acquire the property. To provide additional support services for this RFP effort, a competitive process was used to enter into a professional services agreement with a residential real estate broker/agent, Reid J. Chambers. Mr. Chambers was selected because he has extensive negotiation and residential sales experience specific to homes sold within the north county market. Mr. Chambers will assist the City throughout the RFP and negotiation process in both the marketing of the property to a wider audience, and negotiation of the most competitive fair market price. Once responses are received at the close of the 45-day period, staff will return Feb. 12, 2019 Item #1 Page 2 of 14 to City Council with a recommended party with whom the city should exclusively negotiate terms of a new purchase and sale agreement. The process required for selling surplus city property is identified in California Government Code section 37420 Et seq., which requires that the City Council make a finding of public interest and convenience that require the sale of the property. Per Section 37422, the City Council must adopt a Resolution of Intention to Sell City Property that includes the following: a} Fix a time for hearing protests to the sale; b) Provide for publication of the notice of hearing; c) Fix the time Final Action will be taken; d) Contain an accurate description of the property to be sold. Once the RFP process has been completed, staff will return to City Council to approve the recommended respondent. Concurrently, staff will recommend City Council adopt a Notice of Intention to Sell City Property, and set a time and date for a public hearing for the Fina.I Action. The date of the Final Action· will be the date of the City Council's approval of a purchase and sale agreement between the city and the selected respondent. At any time prior to the Final Action date, any interested party may protest the proposed sale. The protest may be written and delivered to the City of Carlsbad City Clerk or an oral protest at the.meeting considering the Final Action. If no protests are received, or the City Council overrul_es the protests by a four-fifths vote of its members, the sale of the property may proceed. Fiscal Analysis The estimated revenue from the sale of the property is between $640,000 to $690,000; however, current market conditions could be higher. The anticipated revenue from the sale of the property is based on a formal appraisal commissioned on August 20, 2018. Revenue generated from the sale of the property will be deposited into the General Fund. In addition to sale revenue, the city will be relieved of the responsibility to maintain insurance, landscaping and security on the property, saving the city $4,050 annually. The property will also be returned to the property tax roll and the city will receive its share of property taxes estimated to be approximately $1,329 per year. Next Steps Staff will release the RFP, evaluate the proposals received and return to the City Council with a recommended party with whom the city should exclusively negotiate terms of a new purchase and sale agreement. Concurrently, staff will recommend the adoption of a Notice of Intent to Sell City Property, and set a time and date for the public hearing for Final Action. Feb. 12, 2019 Item #1 Page 3 of 14 Environmental Evaluation (CEQA) This action is categorically exempt from the California Environmental Qua lity Act pursuant to CEQA Guidelines section 15312 {Surplus Government Property Sales). Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. City Council Resolution. 2. Location Map Feb. 12, 2019 Item #1 Page 4 of 14 RESOLUTION NO. 2019-017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, AUTHORIZING THE RELEASE OF A REQUEST FOR PROPOSALS FOR THE SALE OF THE PROPERTY LOCATED AT 3701 CATALINA DRIVE, APN 167- 154-20, COMMONLY KNOWN AS OLD FIRE STATION NO. 3 Exhibit 1 WHEREAS, on October 17, 2017, City Council approved the Real Estate Strategic Plan, which recommended that the city list the property located at 3701 Catalina Drive (Old Fire Station No. 3) for sale; and WHEREAS, the city currently desires to release a Request for Proposals (RFP) for the sale of Old Fire Station No. 3; and WHEREAS, Old Fire Station No. 3 operated uninterrupted between 1976 until the opening of the new Fire Station No. 3 located in the Robertson Ranch East neighborhood in 2016; and WHEREAS, City Council has determined that Old Fire Station No. 3 is no longer necessary for city operations; and 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. City staff is hereby authorized to release a RFP, attached hereto as Attachment A, for the sale of the property located at 3701 Catalina Drive, commonly known as Old Fire Station No. 3, with the following addition to Section Ill, Selection Criteria: "4) Highest and best use of the Subject Property, as determined by the City Council." 3. City staff is directed to evaluate proposals received. Following review and analysis of the proposal(s), staff will recommend to the City Council the selection of a prospective party with whom to negotiate a purchase and sale agreement. If authorization to Feb. 12, 2019 Item #1 Page 5 of 14 exclusively negotiate a purchase and sale agreement is approved by the City Council, staff will return to the City Council for approval of a purchase and sale agreement with the selected respondent. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12th day of February 2019, by the following vote to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton NOES: None ABSENT: None ~?fhd1rdt (,(~Mayor ATTEST: Feb. 12, 2019 Item #1 Page 6 of 14 ( City of Carlsbad Ca Ii for n i a REQUEST FOR PROPOSAL For Sale by City of Real Property Located at 3701 Catalina Drive, City of Carlsbad, CA 92010 Property Commonly known as Old Fire Station No. 3 PROPOSALS DUE PRIOR TO: Thursday, _________ 2019 at 4:00 p.m. PST SEND TO: City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: Curtis M. Jackson, Real Estate Manager Attachment A The City of Carlsbad encourages the participation of minority and women-owned businesses Feb. 12, 2019 Item #1 Page 7 of 14 Table of Contents Section Page I. INTRODUCTION 1 II. BACKGROUND AND PROPERTY DESCRIPTION 1 Background 1 The Subject Property 1 Site Map 1 Adj acent Uses 1 Zoning & Development Requirements 2 Ill. SELECTION PROCESS 2 Selection Process 2 Submittal Requirements 3 Procedure/Schedule 3 Questions 4 Site Tours 4 Selection Criteria 4 Offer to Exclusively Negotiate 4 IV. SPECIAL CONDITIONS 4 Reservations 4 Public Record 4 Right to Cancel 5 Right to Negotiate 5 Additional Information 5 Conflict of Interest 5 Scope Changes 5 Proprietary Information 5 Responsive Materials Ownership 6 Best Value Selection 6 Sale Award 6 V. CONCLUSION 6 Feb. 12, 2019 Item #1 Page 8 of 14 I. INTRODUCTION & OVERVIEW Pursuant to California Government Code §37420 et seq., the City of Carlsbad (the "city") is exploring the potential sale of the real property owned by the city located at 3701 Catalina Drive in the City of Carlsbad, County of San Diego, State of California and commonly known as the Old Fire Station No. 3 (the "Subject Property"). The purpose of this RFP is to explain the requirements and procedures for the submission of formal proposals from parties interested in the acquisition of the Subject Property. II. BACKGROUND AND PROPERTY DESCRIPTION The Subject Property In February 2016, the Carlsbad Fire Department relocated from the Subject Property to the recently constructed Fire Station No. 3, located in the Robertson Ranch neighborhood. Upon relocating, the Carlsbad Fire Department's use of the Subject Property ceased, at which point the Subject Property became surplus and no longer required by the city. The Subject Property has a lot size of 12,092 square feet, and is developed with a 2,127 square foot building. The building on the Subject Property was built in 1976 where it operated uninterrupted until the opening of the new Fire Station No. 3. The building is a two-story structure located in a residential neighborhood, and has five (5) bedrooms and three (3) bathrooms, with two large roll-up garage doors in the front and rear that allow vehicular access to and though the garage. All measurements are approximations and must be field verified by Respondents. The Subject Property will be sold in an "as is" "where is" condition. Prospective Respondent(s) will be required to undertake their own independent inspection and investigation of the Subject Property. Site Map For an aerial view of the parcel, please see the attached Site map. Adjacent Uses This acquisition opportunity in Carlsbad is unique and exciting for many reasons: 1) The Subject Property is located within easy access to Highway 78, Interstate 5, El Camino Real, Tamarack Avenue, and Carlsbad Village Drive 2) The Subject Property is located near major commercial and retail amenities. 3) Carlsbad has a close proximity to the major markets of San Diego (35 miles south), Orange County (18 miles north) and Los Angeles {83 miles north). 4) A large, quality work force, and nearby universities and colleges; 5) Some of the finest weather and recreational amenities in the country, including miles of beautiful beaches, a variety of .parks and golf courses and cultural and historical facilities. 1 Feb. 12, 2019 Item #1 Page 9 of 14 Property Information Below is an outline of land use information applicable to the Subject Property. This outline provides general information and does not contain all applicable information. For more information, please contact the Planning Division at (760) 602-4610. General Plan Land Use Designation: "R-4" (Residential 0-4 Dwelling Units per Acre) Zoning Designation: "R-1-8000" (Single Family Residential) Coastal Zone Information: The Subject Property is outside the coastal zone. Development Impact Fees Remodeling or expansion of the Subject Property may be subject to impact fees. For more information, please contact Development Services Manager, Jeremy Riddle at (760) 602-2785. (Carlsbad Municipal Code) http://www.gcode.us/codes/carlsbad/. (Carlsbad Master Fee Schedule) http://www.carlsbadca.gov/services/depts/finance/fees/schedule.asp Ill. SELECTION PROCESS Respondent selection is anticipated to occur through the process outlined herein, the described selection criteria, and submittal requirements. Selection Process The city is seeking proposals from individuals and entities with the financial capacity to acquire the Subject Property. Respondents shall comply with the Submittal Requirements and Procedures/Schedule below: Submittal Requirements The city appoints Reid Chambers of Realty One Group ("Broker") as city's sole and exclusive real estate agent and grants Broker the exclusive right to assist city in identifying prospective purchasers and negotiating the sale of the Subject Property. 2 Feb. 12, 2019 Item #1 Page 10 of 14 Respondents shall provide the city with the information requested below, with the exception of the Financial Capacity materials, of which two (2) copies are to be submitted under separate cover on a confidential basis. 1} A statement that the signatory is authorized to submit the proposal on behalf of each listed member of Respondent's team; 2) The financial ability of the prospective purchaser to acquire the Subject Property, either individually or collectively, as the case may be 3) A statement that the proposal will remain in effect for a minimum of 90 days from the date of submittal and may be extended at the mutual agreement of both the city and Respondent; 4) A description of the proposed use of the Subject Property by the prospective purchaser. 5) The proposed Terms (which may be subject to a MAI appraisal) for the Subject Property. Procedure/Schedule The procedure for selection is as follows: 1) Proposals shall be submitted to the city through the Broker no later than 4:00 p.m. on [DAY], _____ _, 2019. Proposals and/or modifications received subsequent to the hour and date specified will not be considered; 2) Following timely receipt, submissions will be reviewed by city staff and the Broker within 30-days of the submittal date; 3) The most desirable and qualified Respondent(s) may be asked for a last best and final offer (see below); and 4) Following review and analysis of the proposal(s), staff will recommend selection of a purchaser to negotiate a purchase and sale agreement with the city, and a negotiable non-refundable deposit of $10,000 will be required for the right to negotiate exclusively with the city. Questions Any questions you may have pertaining to this RFP shall be addressed to the city's Broker, Reid Chambers, at reidjchambers@gmail.com. All questions must be in writing and no other officer, agent, or employee of the city is authorized to provide official answers. Site Tours 3 Feb. 12, 2019 Item #1 Page 11 of 14 Site Tours are not mandatory; however, interested Respondents should contact the city's Broker, Reid Chambers, at reidjchambers@gmail.com or 760-583-0809. Selection Criteria The focus of the selection process will be on the following issues: 1) Financial benefit to the city. 2) Financial ability of the Respondent to purchase the Subject Property as evidenced by their financial capacity. 3) Purchase price, and other applicable terms and conditions of a disposition. Offer to Exclusively Negotiate Upon selection of a Respondent, the city will negotiate a purchase and sale agreement exclusively with the selected Respondent for a period of up to 60 days. By submitting a proposal and qualifications to the city, the prospective buyer is also agreeing that the city retains the right to modify or suspend all aspects of the selection and exclusive negotiating process and to waive any defects as to form or content of the offering or any responses that are received. Further, city shall have the right to reject any and all proposals. IV. SPECIAL CONDITIONS Reservations This RFP does not commit the city to sell the Subject Property, to defray any costs incurred in the preparation of a proposal pursuant to this RFP, or to procure or contract for work. Public Record 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. Financial capacity statements, however, are provided on a confidential basis to the extent allowed by law. Right to Cancel The city reserves the right to revise or cancel, for any 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 this RFP, all Respondents will be notified in writing by the city. 4 Feb. 12, 2019 Item #1 Page 12 of 14 Right to Negotiate The city reserves the right to negotiate with Respondent subsequent to receipt of the Respondent's proposal. The city reserves the right to request from Respondent a last best and final offer, whereby the city may ask either all bidders or the top bidders to submit their last best and final offers. If the city is not satisfied with any of the bids after asking for last best and final offers, the city may in good faith choose one Respondent to negotiate terms for a sale. Additional Information The city reserves the right to request additional information and/or clarification from any or all Respondents to this RFP. 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. 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 must acknowledge all addenda. Proposals failing to do so may be considered as non-responsive by the city and eliminated from further consideration. Proprietary Information Any restrictions on the use of data contained within a proposal must be clearly stated in the proposal itself. Proprietary information 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. Responsive 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 information above. Disqualification of a Respondent does not eliminate this right. 5 Feb. 12, 2019 Item #1 Page 13 of 14 Best Value Selection The Respondent selected will be based on the best value option for the city. The city is under no obligation to award this project to the Respondent offering the most advantageous financial position; however, the city is obligated to accept no less than fair market value. Selection criteria expressed in the RFP shall be used in the proposal evaluation process. In evaluating proposals, the city may consider the qualifications of the Respondent and whether the proposals comply with the prescribed requirements. Sale Award The award of the sale will be in accordance with, but not limited to, the results of the city's evaluation. Final approval of selected Respondent and award of the sale lies with the City of Carlsbad City Council. V. CONCLUSION We appreciate your interest in the City of Carlsbad and look forward to your proposal for a purchase of the Subject Property. Submittal packages should be addressed to the city through the Broker at: City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: Curtis M. Jackson, Real Estate Manager Please return your response no later than 4:00 p.m., (DATE), 2019. 6 Feb. 12, 2019 Item #1 Page 14 of 14 09 LOCATION MAP Old Fire Station No. 3 MAP 5704 -EL CAMINO MESA UN IT NO 3 MAP 5617 -EL CAMINO MESA UN IT NO 2 MAP 5493-EL CAMINO MESA UN IT NO I Exhibit 2 CHANG S BUI OLO NElV CUT To the members of the: Cf'9' COU~ll _/_ A~'(! ~~CA '1 _ ~C Date~ CM ..t._ COO j/_ Feb. 12,2019 Council Memorandum To: Honorable Mayor embers of the City Council From: Gary T. Barberio, ,-,,:,:~Mif!"+-"Wf Manager Via: Scott Chadwick, Ci Re: Responses to Questions from Feb. 12 City Council Briefings {cityof Carlsbad Special Agenda Item No.'s 1-3 -Beach Preservation Committee, Planning Commission, and Traffic Safety Commission Appointments Question: Should an applicant being considered for appointment to a Commission or Committee be disqualified from consideration based on the fact that he/she has a relationship with certain organizations in the city? Answer: No. The city is not aware of any specific information related to any individual applicant and organization that would create a conflict of interest such that the applicant could not fulfill the mandates of serving on a Com"'!ission or Committee. Therefore, no current applicant should be generally disqualified from consideration by the City Council. That is not to say that, if appointed to a Commission or Committee, an applicant could have a conflict of interest on specific items and/or issues that may come before the Commission or Committee. If that were to occur, the selected applicant must recuse themselves from participating in those items. To help ensure that no conflict of interest issue arises, all members of Commissions and Committees receive ethics training, are subject to the California Political Reform Act and must file a Statement of Economic Interests annually. Because the city and the City Council may not have all relevant information to judge an applicant's potential conflicts of interest, at the meeting, City Council Members are free to ask any applicant whether or not he/she is aware of any information that would pose a conflict of interest if he/she were selected to serve on a Commission or Committee. ' City Manager's Office . City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2820 t Honorable Mayor Hall and Members of the City Council Feb.12,2019 Page 2 Regular Agenda Item No. 1-Request for Proposals to, Sell the Property Located at 3701 Catalina Drive Question: Can the State density bonus law or SB 35 be applied to this site? Answer: No. State density bonus law requires a housing development of at least five dwelling units to be eligible for a density bonus. SB 35 is a permit streamlining law for projects of two or more residential dwelling units that dedicate at least 50 percent of the units for low-income households. Based on the size of the property and the General Plan and Zoning designations, the property could only be developed with one· single family dwelling. Therefore, this site would not be eligible for either program. Regular Agenda Item No. 2 -Amend Title 8 of the CMC by Repealing and Replacing Chapter .S.32 to Create a Sidewalk and Food Truck Vending Equipment Permit Program Question: Can our Ordinance apply to the lower seawall since it is State owned? Answer: Yes. With the building of the lower sea wall, the city assumed the maintenance and operations responsibilities for the lower seawall area. The Parks & Recreation and Public Works Departments perform routine maintenance of the surface via the parks services contract and the street sweeping contract. The Public Works Department is also developing permits, and plans & specs for a project which will refurbish the upper walkway and the switchback stairs, and provide patching to the lower seawall walkway. The city also has authority to regulate allowed uses on both the upper and lower seawall walkways. Specifically to the lower seawall area, the Carlsbad Municipal Code regulates this area as follows: 11.32.070 Carlsbad seawall-Pedestrians only. The Carlsbad seawall sidewalk at the base of the bluff adjacent to Carlsbad State Beach between Tamarack Avenue and Pine Street shall be limited to pedestrians only. No person shall ride skateboard, inline skates, roller skates, toy vehicle, coaster, or similar form of transportation on the Carlsbad seawall sidewalk. Law enforcement personnel shall be exempt from the provision of this section when in the performance of their duties. (Ord. CS-139 § 3, 2011; Ord. NS-152 § 1, 1991; Ord. 3222 § 2, 1987) Honorable Mayor Hall and Members of the City Council Feb.12,2019 Page3 Regular Agenda Item No. 3 -Appeal of Building Permit CB00-3222 Expiration, 3275 Roosevelt Street Question: Can staff please provide a copy of the original building permit CB00-3222, and any other discretionary review approval documents? Answer: Please see attached documents. Attachments: l) Cem111e1 cial Industrial Permit, Permit No. Cl:30032~ J~ Ar;enda Bill No. 306, dated 03/o~,~, with HRC Resollltion Nos, 305, 306, 301.. cc: Celia Brewer, City Attorney Elaine Lukey, Chief Operations Officer