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