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HomeMy WebLinkAbout2019-12-10; City Council; ; Declaration of city-owned vacant parcel of land as surplus property and authorize the release of a Request for Proposals for the sale of property located on Pajama Drive,CA Review f '>..., {jJJv ~ CITY COUNCIL - ~ Staff Report Meeting Date: To: From: Staff Contact: Subject: December 10, 2019 Mayor and City Council Scott Chadwick, City Manager Curtis M. Jackson, Real Estate Manager Curtis.jackson@carlsbadca.gov or 760-434-2836 Declaration of city-owned vacant parcel of land as surplus property and authorize the release of a Request for Proposals for the sale of property located on Pajama Drive, in Oceanside, California (APN 149-070-47-00). Recommended Action Adopt a Resolution declaring a city-owned vacant parcel of land as surplus property and authorize the release of a Request for Proposals for the sale of the property located on Pajama Drive, in Oceanside, California, APN 149-070-47-00. Executive Summary Staff recommends that the City Council declare as surplus property a city-owned vacant parcel of land .25 acres in size, located on Pajama Drive, in Oceanside, California (Property) and authorize the issuance of a Request for Proposals for the sale of the Property. In October of 2017, the City Council approved the Real Estate Strategic Plan, which recommended that the city list this Property for sale. Discussion The Property is 10,891-square feet, and is located at the end of a cul-de-sac on Pajama Drive in a residential neighborhood in Oceanside (Exhibit 2: Location Map). The Property was originally designated as a water storage facility for the Costa Real Water District, and was later acquired by the city in October of 1979. The water storage facility was demolished in 2008, with no infrastructure remaining at the site, and the Property has sat vacant since 2008. The Property is not located in the coastal zone and is zoned Residential Estate - B (RE-B), which allows for one single family residential unit on the property. The Property is no longer needed for city water, right-of-way, or facilities as originally contemplated. The process required for selling surplus city Property is identified in California Government Code section 54220 Et seq., which requires that the City Council adopt a resolution and make a finding that the particular parcel is in excess of the city's foreseeable needs and that the City Council intends to dispose of the Property. Per Section 54220 Et seq., the resolution should specify an amount that is determined by the City Council to be the fair market value of the Property (appraised at $245,000), and offer the parcel for park, recreation or open space uses to all local public entities that have jurisdiction within the Dec. 10, 2019 Item #6 Page 1 of 15 City of Oceanside, as well as any local public entity, or Housing Sponsor that has notified the Department of Housing and Community Development of their interest in surplus land, that oversees the development of low and moderate-income housing. If any of those agencies make an offer to purchase the parcel for fair market value for park, recreation or open space purposes, or for the development of affordable housing, the parties must engage in good faith negotiations for a period of 90 days. If no agreement is reached in that time, the Property can then be sold to a private buyer. Should no local public entity with jurisdiction in the City of Oceanside (or Housing Sponsor} make an offer to purchase the Property at fair market value for park, recreation or open space uses, or for the development of low and moderate-income housing, city staff recommends the City Council authorize the release of a Request for Proposals (RFP} to sell the Property to the public (Attachment A to Exhibit 1). Following the issuance of the RFP for the sale of the Property to the public, there will be a 45-day period in which interested parties can submit a proposal to acquire the Property. Once responses are received at the close of the 45-day period, staff will return to City Council with a recommended party with who.m the city should exclusively negotiate terms of a new purchase and sale agreement. 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 to sell both Old Fire Station No. 3 and the Pajama Drive property. 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. Mr. Chambers' agreement with the city was to sell not only the Property, but also Old Fire Station No. 3, which was successfully completed in July 2019. Fiscal Analysis The estimated revenue from the sale of the Property is between $109,000 to $245,000; however, current market conditions could be higher. The anticipated revenue from the sale of the Property is based on a formal appraisal originally commissioned on Aug. 20, 2018 and updated on Sept. 9, 2019. 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 $4,000 annually. Next Steps Staff will offer the parcel for park, recreation or open space use to all public agencies that have jurisdiction in the City of Oceanside, as well as any local public entity or Housing Sponsor interested in acquiring surplus land for affordable housing. If no public agency or Housing Sponsor makes an offer to purchase the Property for park, recreation, open space, or affordable housing uses, staff will release an RFP, evaluate the proposals received and return to Dec. 10, 2019 Item #6 Page 2 of 15 the City Council with a recommended party with whom the city should exclusively negotiate terms of a new purchase and sale agreement. Environmental Evaluation (CEQA) This action is categorically exempt from the California Environmental Quality 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 Dec. 10, 2019 Item #6 Page 3 of 15 RESOLUTION NO. 2019-250 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DECLARING A CITY-OWNED VACANT PARCEL OF LAND AS SURPLUS PROPERTY AND AUTHORIZING THE RELEASE OF A REQUEST FOR PROPOSALS FOR THE SALE OF THE PROPERTY LOCATED ON PAJAMA DRIVE, IN OCEANSIDE, CALIFORNIA (APN 149-070-47-00). WHEREAS, on Oct. 17, 2017, City Council approved the Real Estate Strategic Plan, which recommended that the city list the Pajama Drive property (Property) for sale; and WHEREAS, the Property was originally designated as a water storage facility for the Costa Real Water District, and was acquired by the city in October of 1979; and WHEREAS, the 10,891 square-foot Property is currently vacant, with no infrastructure remaining at the site; and WHEREAS, the Property is no longer needed for city water storage as originally contemplated; and WHERAS, the city currently desires to declare the Property as surplus property pursuant to California Government Code section 54220 Et seq.; and WHEREAS, the city shall first offer the Property for park, recreation or open space uses to all public entities that have jurisdiction in the City of Oceanside, as well as any local public entity, or Housing Sponsor that has notified the Department of Housing and Community Development of their interest in surplus land, that oversees the development of low and moderate-income housing, for fair market value; and WHEREAS, the Property's fair market value is $245,000 based on a formal appraisal originally commissioned Aug. 20, 2018, and updated on Sep. 9, 2019; and WHEREAS, should no public entity that has jurisdiction in the City of Oceanside, or any local public entity (or Housing Sponsor) that oversees the development of low and moderate-income Dec. 10, 2019 Item #6 Page 4 of 15 housing make an offer to purchase the Property for fair market value for park, recreation or open space uses, or low and moderate-income housing, the city desires to release a Request for Proposals (RFP) for the sale of the Property to private buyers. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council declares the Property as surplus, thereafter offering the Property for sale to public entities that have jurisdiction in the City of Oceanside for park, recreation or open space uses, any local public entity, or Housing Sponsor that has notified the Department of Housing and Community Development of their interest in surplus land, that oversees the development of low and moderate-income housing, at a price of $245,000; and should the city receive no offers to purchase the Property for park, recreation or open space uses, or low and moderate-income housing, the City Council authorizes city staff to release an RFP, attached hereto as Attachment A, for the sale of the property located at the end of Pajama Drive to private buyers. 3. That city staff is directed to evaluate all 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 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. Dec. 10, 2019 Item #6 Page 5 of 15 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 10th day of December 2019, by the following vote to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher. NAYS: None. ABSENT: None. vf BARBARA ENGLESON, City Clerk Dec. 10, 2019 Item #6 Page 6 of 15 {city of Carlsbad California REQUEST FOR PROPOSAL For Sale by City of Real Property Located at Pajama Drive, City of Oceanside, CA 92054 Property Commonly known as Pajama Drive PROPOSALS DUE PRIOR TO: [DAY], ___ _, 2020 at 4:00 p.m. PST SEND TO: City of Carlsbad 3096 Harding Street 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 Dec. 10, 2019 Item #6 Page 7 of 15 Table of Contents Section Page I. INTRODUCTION 1 II. BACKGROUND AND PROPERTY DESCRIPTION 1 Background 1 The Subject Property 1 Site Map 1 Adjacent 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 Dec. 10, 2019 Item #6 Page 8 of 15 I. INTRODUCTION & OVERVIEW Pursuant to California Government Code §54220 et seq., the City of Carlsbad (the "city") is exploring the potential sale of the real property owned by the city located on Pajama Drive in the City of Oceanside, County of San Diego, State of California and commonly known as the Pajama Drive property (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 The Subject Property was originally designated as a water storage facility for the Costa Real Water District, and was later acquired by the city in October of 1979. The water storage facility was demolished in 2008, with no infrastructure remaining at the site, after which the Subject Property has sat vacant. The Subject Property is 10,891-square feet, and is located at the end of a cul-de-sac on Pajama Drive in a residential neighborhood in Oceanside. The Property is not located in the coastal zone and is zoned Residential Estate - B (RE-B), which will allow for one single family residential unit on the property. 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 Oceanside is unique and exciting for many reasons: 1) The Subject Property is located within easy access to Highway 76 and 78, Interstate 5, and Mission Avenue. 2) The Subject Property is located near commercial and retail amenities. 3) Oceanside has a close proximity to the major markets of San Diego (38 miles south), Orange County (15 miles north) and Los Angeles (80 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 Dec. 10, 2019 Item #6 Page 9 of 15 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 City of Oceanside Planning Division at (760) 435-3520. Zoning Designation: "RE-B" (Residential Estate Development with density of 1.0 dwelling units per acre) Coastal Zone Information: The Subject Property is not in the coastal zone. Development Impact Fees Development of the Subject Property may be subject to impact fees. For more information, please contact the Oceanside Planning Department at (760) 435-3520. 111. 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. The city shall not be liable for, nor pay any, broker fees or commissions due to Respondents broker or agent. 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 Dec. 10, 2019 Item #6 Page 10 of 15 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], [Date], 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 Site Tours are not mandatory; however, interested Respondents should contact the city's Broker, Reid Chambers, at reidjchambers@gmail.com or 760-583-0809. 3 Dec. 10, 2019 Item #6 Page 11 of 15 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. 4) Highest and best use of the Subject Property, as determined by the City Council. 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 Dec. 10, 2019 Item #6 Page 12 of 15 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 any party 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 Dec. 10, 2019 Item #6 Page 13 of 15 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 3096 Harding Street Carlsbad, CA 92008 Attn: Curtis M. Jackson, Real Estate Manager Please return your response no later than 4:00 p.m., [Day], [Date], 2020. 6 Dec. 10, 2019 Item #6 Page 14 of 15