HomeMy WebLinkAbout2020-02-25; City Council; ; Second Annual Update on the Real Estate Strategic Plan, Wireless Communication Facilities, and acquisition of Open Space parcels.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 second annual or 2019
update on the overall implementation of the Strategic Plan (Exhibit A}. This update covers the
reporting period of November 2018 through December 2019 (Second Annual Reporting Period}.
During the First Annual Reporting Period, the city received approximately $220,018 in lease
revenue. Over the second-year reporting period, three leases became effective a·nd
commenced paying rent (Bob Baker Auto Group at the Hawthorne property, Chapters at the
Dove Library Cafe, and New Village Arts}, which increased annual property lease revenues
approximately 58 percent to $346,648, a $126,630 increase in annual lease revenue.
Furthermore, the city received approximately $759,000 in one-time revenue to the general
fund from the sale of Old Fire Station No. 3, increasing total revenue to the city in this second-
year reporting period to $1,105,684, a $885,630 increase in annual lease and sale revenue.
Over the next Annual Reporting Period in 2020, the city anticipates one new renegotiated lease
extension becoming effective (Mira Costa at the Las Palm as building} possibly resulting in
additional overall lease revenues. In addition, the city anticipates selling one property (Pajama
Drive}, which could potentially generate an additional $245,000 in one-time revenue to the city,
and issuing an RFP for the lease of Golf Course Lots 4 and 5 and an RFP for the lease of the city's
Oceanside Property located at northwest the corner of Foussat & Mission Avenue.
WCF Agreements
The city's Real Estate division is responsible for managing the city's WCF portfolio, which
currently indudes 12 macro WCF agreements and four micro WCF Master License Agreements.
Managing the WCF 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 B."
Over the First Annual Reporting Period, 12 macro WCF agreements were effective and
generated annual WCF revenues of $427,400, a $43,261 increase over 2017. During this second
year reporting period no new macro WCF agreements were entered into; however, revenue
increased from $427,400 to $497,824, a $70,424 increase (16 percent} in annual license
revenue.
Additionally, over this second year reporting period, staff entered into two new micro WCF
Master License Agreements (AT&T and Verizon Wireless}; however, both AT&T and Verizon
have yet to install any Facilities. Overall, only two new micro WCF facilities were installed in the
second year reporting period, increasing the number of micro WCFs in the city from 184 to 186.
Micro WCF revenues remained relatively flat, decreasing from $339,500 to $309,740, a $29,760
decrease in annual micro WCF revenue. The reduction in micro WCF revenue is a direct result of
a decrease in one-time fees collected in 2018 (62 overall} versus the one-time fees collected in
2019 (7 overall}. One-time fees ($500 to $1,000} are collected when a licensee initially submits
Feb. 25, 2020 Item #12 Page 2 of 29
a site license application to secure a specific street light pole; once a micro WCF is installed on a
street light pole, annual fees become due thereafter.
Combined, the macro and micro WCF agreements generated $807,564 in annual revenue for
the city over this second-year reporting period, an increase of approximately $40,664
or a 5.3% increase. Overall, the city anticipates WCF revenues to increase approximately 3%
over the third-year reporting period to $831,791, primarily generated from annual rental fee
increases.
Open Space Acquisitions
During the reporting period, the city's Real Estate division was also tasked with negotiating
acquisitions of Open Space parcels in response to the 2017 General Plan Lawsuit Settlement
Agreement (Settlement Agreement) between the city and North County Advocates (NCA).
During this second-year reporting period, acquisition of the Paseo Del Norte Preserve property
was negotiated for $94,100, which is a 1.31 acre vacant parcel, located on the west side of
Paseo del Norte, immediately south of 6125 Paseo del Norte. The Paseo Del Norte property is
the first open space property the city has acquired per the terms of the Settlement Agreement
with NCA. City acquisition ofthis property became effective on Jan. 6, 2020.
Fiscal Analysis
There is no fiscal impact associated with this update.
Next Steps
City staff will continue implementing the approved Real Estate Strategic Plan, managing the
city's WCF portfolio, and negotiating Open Space acquisitions. 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, the management
of the city's WCF portfolio and open space purchases.
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. Exhibit A -Real Estate Strategic Plan Update
2. Exhibit B -Wireless Communication Facility (WCF) Update
3. Exhibit C -Open Space Aquisitions
Feb. 25, 2020 Item #12 Page 3 of 29
Exhibit A
{city of
Carlsbad
Real Estate
Str·ategic Plan
Annual Update
November 2018 -December 2019
Feb. 25, 2020 Item #12 Page 4 of 29
Introduction
On Oct. 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. Thereafter,
on Nov. 18, 2018, staff presented the first annual update to City Council on the status of the
Strategic Plan and the city's management of its Wireless Communication Facilities (WCF)
license agreements from November 2017 through October 2018 (First Annual Reporting
Period). The purpose of this report is to update the City Council on the status of the Strategic
Plan and city's management of its WCF license agreements from November 2018 through
October 2019 (Second Annual or 2019 Reporting Period).
The purpose of this strategic plan was to take a more strategic approach to how 18 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 (Strategic 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
2019 Real Estate Strategic Plan Update 2 Feb. 25, 2020 Item #12 Page 5 of 29
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.
NEW LEASE IMPLEMENTATION
The following properties are existing approved lease agreements.
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 Grand
Recommendation Pacific Carlsbad, LP'. on Lot 9.
Specific • No reportable action milestones during the Annual Reporting
Milestones Period.
During Reporting
Period
Lease Start Date • Dec. 15, 2016 .
Lease Term • Sixty-five (65) years, with two {2) options to extend for ten
{10) years each.
Next Steps Continue to monitor and manage Lease Agreement.
Annual Reporting • Initial Annual Lease Revenue Rate: $159,965
Period Revenue • Annual Lease Revenue RateLlncrease: 0% increase over first 5-
years of lease term.
• Current Annual Rent: $159,965 (Year 2 of Agreement)
• Amount Received in Re12orting Period: $159,965 {12 months)
City of Carlsbad
2019 Real Estate Strategic Plan Update 3 Feb. 25, 2020 Item #12 Page 6 of 29
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 agreement
Recommendation with Shorehouse Kitchen.
Specific Milestones • Submitted Sidewalk Dining application (ROW 2019-0538);
During Reporting pending approval by city.
Period
Lease Start Date • April 4, 2018 .
Lease Term • Ten (10) years, with two (2) options to extend for five (5)
years each.
Next Steps Continue to monitor and manage Lease Agreement.
Annual Reporting • Initial Annual Lease Revenue Rate: $95,000
Period Revenue • Annual Lease Revenue RateL!ncrease: 3% increase annually
• Current Annual Rent: $97,850 (Year 2 of Agreement)
0 Plus $12,392.12 (6% of gross sales above $1,583,000
over year-one of lease agreement)
• Amount Received in Re~orting Period : $97,850 (12 months)
City of Carlsbad
2019 Real Estate Strategic Plan Update 4 Feb. 25, 2020 Item #12 Page 7 of 29
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 a
Recommendation Request for Proposals (RFP} for leasing the Dove Library Cafe
space.
Specific Milestones • Amendment to Extend OQening Day 180-Days in Lease
During Reporting Agreement: Jan. 29, 2019.
Period • Certificate of OccuQancy: April 30, 2019
Lease Start Date • April 30, 2019
Lease Term • Five (5) years, with one (1) option to extend for five (5) years .
Next Steps • Continue to monitor and manage Lease Agreement.
Annual Reporting • Initial Annual Lease Revenue Rate: $14,796
Period Revenue • Annual Lease Revenue RateL!ncrease: 0% increase
• Current Annual Rent: $14,796 (Year 1 of Agreement)
• Amount Received in ReQorting Period: $9,864 (8 months)
City of Carlsbad
2019 Real Estate Strategic Plan Update 5 Feb. 25, 2020 Item #12 Page 8 of 29
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 nominal
Recommendation 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 • No reportable action milestones during the Annual Reporting
During Reporting Period.
Period
Next Steps • Lease terminates on Jan. 28, 2020 .
• Tenant has acquired a building in an alternate location within
the City of Carlsbad where they intend to continue their
existing operations.
• Staff to evaluate property options and will return to City
Council as needed
Annual Reporting • Initial Annual Lease Revenue Rate: $8,820
Period Revenue • Annual Lease Revenue RateLlncrease: 0% increase
• Current Annual Rent: $8,820 (Final year of Agreement)
• Amount Received in ReQorting Period: $8,820 (12 months)
City of Carlsbad
2019 Real Estate Strategic Plan Update 6 Feb. 25, 2020 Item #12 Page 9 of 29
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.
• On Feb. 11, 2019, City Council gave staff direction to
deviate from the Strategic Plan's recommendation, and directed
staff to negotiate a new 20-year lease agreement with NVA.
Specific Milestones • Ai;rnroval of new Lease Agreement: Apr. 9, 2019
During Reporting • Deviation from Stategic Recommendation: Feb. 11, 2019
Period
Lease Start Date • April 9, 2019
Lease Term • Five (5) years, with no renewal or extension options .
Next Steps • NVA submitted interior improvements plans to city Nov.
2019.
• On Feb. 11, 2019, City Council gave staff direction to
negotiate a new 20-year lease agreement with NVA.
• Negotiate new 20-year lease agreement .
• Continue to monitor and manage existing lease agreement
Annual Reporting • Initial Annual Lease Revenue Rate: $6,000
Period Revenue • Annual Lease Revenue RateL!ncrease: 0% increase
• Current Annual Rent: $6,000
• Amount Received in ReQorting Period: $4,500 (9 months)
City of Carlsbad
2019 Real Estate Strategic Plan Update 7 Feb. 25, 2020 Item #12 Page 10 of 29
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 continue to implement and monitor the Community
Recommendation Benefit Agreement and the Poinsettia 61 project approvals.
Specific Milestones • CUP approved Oct. 2, 2019 .
During Reporting • Construction plans submitted and in Final Plan Check .
Period
Next Steps • Park improvements must be completed by January 25, 2021.
Annual Reporting • Initial Annual Lease Revenue Rate: NA
Period Revenue • Annual Rent: NA
• Amount Received in Re~orting Period: NA
City of Carlsbad
2019 Real Estate Strategic Plan Update 8 Feb. 25, 2020 Item #12 Page 11 of 29
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 the
Recommendation minimum asking price and list the property for sale by owner in
an "as-is' condition.
Specific Milestones • Issued RFP: February 2019
During Reporting • Sold Property: June 11, 2019
Period • Deed Recorded: July 10, 2019
Next Steps • None .
Annual Reporting • Sold property for $803,333 in July 2019, $158,333 above the
Period Revenue Strategic Plan's estimate of $645,000 (April 2016).
City of Carlsbad
2019 Real Estate Strategic Plan Update 9 Feb. 25, 2020 Item #12 Page 12 of 29
Hawthorne Property-Bob Baker Auto Group
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 • A1rnroved New Lease Agreement with Bob Baker Auto
During Reporting Group: July 9, 2019
Period • Certificate of Occupancy: Aug. 28, 2019
Lease Start Date • Nov. 4, 2019
Lease Term • Five (5) years, with two (2) options to extend for three (3)
years each.
Next Steps • Continue to monitor and manage Lease Agreement.
Annual Reporting • Initial Annual Lease Revenue Rate: $156,000
Period Revenue ·• Annual Lease Revenue RateL!ncrease: 3% increase
• Current Annual Rent: $156,000 (Year 1 of Agreement)
• Amount Received in Reporting Period: $26,000 (2 months)
City of Carlsbad
2019 Real Estate Strategic Plan Update 10 Feb. 25, 2020 Item #12 Page 13 of 29
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 • Rouse Properties sold the mall to Brookfield Properties .
During Reporting
Period
Next Steps • Continue discussions with Brookfield 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
2019 Real Estate Strategic Plan Update 11 Feb. 25, 2020 Item #12 Page 14 of 29
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 • No reportable action milestones during the Annual
During Reporting Reporting Period.
Period
Next Steps • Contract with real estate broker to assist in leasing the
property: Spring 2020.
• Release RFP for long-term ground lease of Property:
Spring 2020.
• Negotiate long-term ground lease for property: Fall-
Winter 2020.
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
2019 Real Estate Strategic Plan Update 12 Feb. 25, 2020 Item #12 Page 15 of 29
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 • Property Appraised at $245,000 on Sept 9, 2019.
During Reporting
Period
Next Steps • City Council declared property surplus on Dec. 10, 2019 .
• Staff has offered property to City of Oceanside for park,
open space or recreation uses, as well as affordable
housing purposes for 90 days, after which the city may
issue an RFP.
• Issue RFP if City of Oceanside or Housing Sponsors not
interested in acquiring the property.
Annual Reporting • The Plan estimated city sale proceeds of approximately
Period Revenue $245,000 (September 2019 Appraisal).
City of Carlsbad
2019 Real Estate Strategic Plan Update 13 Feb. 25, 2020 Item #12 Page 16 of 29
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 2020.
• Release RFP to lease property: Summer-Fall 2020 .
Annual Reporting • The Plan estimated city lease proceeds of approximately
Period Revenue $16,737 per month, or $200,842 annually (September
2017).
City of Carlsbad
2019 Real Estate Strategic Plan Update 14 Feb. 25, 2020 Item #12 Page 17 of 29
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 • Mira Costa submitted a request to extend Lease
During Reporting Agreement five-years on May 1, 2019.
Period
Next Steps • Negotiate extension of Lease Agreement .
• Continue to monitor and manage Lease Agreement .
Annual Reporting • Annual Lease Revenue Rate: $64,881
Period Revenue • Annual Lease Revenue RateL!ncrease: 0% increase
• Current Annual Rent: $64,881
• Amount Received in Re12orting Period: $64,881 (12
months)
City of Carlsbad
2019 Real Estate Strategic Plan Update 15 Feb. 25, 2020 Item #12 Page 18 of 29
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
2019 Real Estate Strategic Plan Update 16 Feb. 25, 2020 Item #12 Page 19 of 29
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 continuing 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
2019 Real Estate Strategic Plan Update 17 Feb. 25, 2020 Item #12 Page 20 of 29
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 CWMD property for its
Recommendation current uses for the foreseeable future. When the CMWD
property is no longer needed due to the 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
2019 Real Estate Strategic Plan Update 18 Feb. 25, 2020 Item #12 Page 21 of 29
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 Car lsbad
2019 Real Estate Strategic Plan Update 19 Feb. 25, 2020 Item #12 Page 22 of 29
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
2019 Real Estate Strategic Plan Update 20 Feb. 25, 2020 Item #12 Page 23 of 29
-----Property APN SF Acres Acquisition Acquisition Source of Estimated Estimated
Date Price Funds Sale Price I 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 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 I
1635 Faraday Avenue 212-130-31 315,810 7.25 2001 $9,100,000 PFF I $11,667,500 $1,982,880/Yr
I i
City of Carlsbad
2019 Real Estate Strategic Plan Up date 22 Feb. 25, 2020 Item #12 Page 25 of 29
Exhibit B
( City of
Carlsbad
Wireless
Communication
Facility
Annual Update
November 2018 -December 2019
Feb. 25, 2020 Item #12 Page 26 of 29
Overall Wireless Communications Facilities (WCF) Revenue
Annual Reporting Period (November 2018-December 2019}
Carrier Location License Term License First Second
Beginning Term Annual Rent Annual Rent
Expiration Reporting Reporting
Period Period
Rental Rate Rental Rate
1) Sprint Safety Center 11/6/2006 5/23/2022 $44,734 $46,691
2) Sprint Utilities Safety Center 11/6/2006 5/23/2022 $6,440 $6,755
3) Sprint Calavera Hills 2/24/2004 11/19/2022 $48,934 $50,130
Comm. Park
4) Sprint/Crown Ellery 8/19/2016 8/18/2026 $45,622 $47,426
Castle Reservoir
5) T-Mobile/Crown Calavera Hills 04/12/2019 4/11/2029 $46,727 $46,929
Castle * Comm. Park
6) Verizon Squires Dam 6/14/2017 3/2/2020 $45,357 $47,618
7) Verizon** La Costa High 5/3/2005 5/2/2010 $60,792 $60,792
Reservoir
8) Verizon Calavera Hills 8/1/2014 7/2/2023 $47,607 $49,046
Comm. Park
9) Verizon Twin D 12/17/2016 12/16/2026 $44,871 $45,769
Water Tanks
10) AT&T Twin D 8/15/2016 8/14/2026 $47,142 $48,929
Water Tanks
11) AT&T The 7/1/2018 6/30/2028 $45,903 $47,739
Crossings
12) San Diego County Ellery 4/13/2017 4/12/2037 $0.00 $0.00
Regional Reservoir
Communication
System
Annual Reporting Period Total Revenue: $497,824
• * = New WCF Macro Agreement for Existing Facilities
• **=License is currently in holdover paying rent at 200% agreement rent rate.
WCF Master License Agreements
Negotiated new WCF Micro Master License Agreements
• AT&T -Small Cell (O new WCFs to date)
• Verizon Wireless -Small Cell (O new WCFs to date)
Minimum
Annual Rent
Increase
4.4%
NA
2.4%
4.0%
.4%
5.0%
0%
3%
2%
3.8%
4%
NA
Carrier Facilities One-Time Fees Revolving Fees Total Revenue
Crown Castle
Mobilitie
AT&T (New)
Verizon Wireless (New)
City of Carl sbad
2019 WCF Update
176
8
0
0
Collected Collected
$7,000 $296,899 $303,899
$0 $5,841 $5,841
$0 $0 $0
$0 $0 $0
Annual Reporting Period Total Revenue: $309,740
2 Feb. 25, 2020 Item #12 Page 27 of 29
Exhibit C
{city of
Carlsbad
Open Space
Acquisitions
Annual Update
November 2018 -December 2019
Feb. 25, 2020 Item #12 Page 28 of 29
Overall Open Space Purchases
Annual Reporting Period (November 2018-December 2019)
Property Address
Paseo Del Norte Preserve 6125 Paseo del Norte,
Carlsbad, CA 92011
City of Carlsbad
2019 WCF Update
Assessor Seller
Parcel No.
211-040-39 6125 Paseo Del Norte, LLC
Acquisition Purchase
Date Price
11/12/2019 $94,100
2Feb. 25, 2020 Item #12 Page 29 of 29
All Receive - Agenda Item #
For the Information of the:
CI I Y COUNCIL
Date 9.14! . CA cc
cm coo DCM
Council Memorandum
CCity of
Carlsbad
Feb. 25, 2020
To: Honorable Mayor Hall and Members of the City Council
From: Gary T. Barberio, Deputy City Manager, Community Services
Curtis M. Jackson, Real Estate Manager
Via: Elaine Lukey, Chief Operations Officer 'jr
Re: Additional Materials Related to City Council Agenda Item No. 12— Real Estate Strategic
Plan and Wireless Communications Facilities Updates
This memorandum provides additional information related to City Council Agenda Item No. 12 —
Real Estate Strategic Plan and Wireless Communications Facilities Updates.
The purpose of the Staff Report is to update the City Council on the status of the Real Estate
Strategic Plan for the period from November 2018 through December 2019. As such, Page 7 of
Exhibit A to the Staff Report is replaced by the table included with this memorandum as
Attachment A.
Attachment: A. Replacement Page 7 of Exhibit A to the Staff Report
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Community Services Branch
Real Estate Division
3096 Harding Street I Carlsbad, CA ZIP 92008 I 760-434-2836
Attachment A
New Village Arts
Property Bauer Lumber Building/NVA
Size • Lot: 0.23 Acres
• Building: 9,400 Square Feet
Location 2887 State Street
Strategic Plan
Recommendation
• For staff to negotiate two new and separate lease
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
During Reporting
Period
• Approval of new Lease Agreement: April 9, 2019
Lease Start Date
Lease Term
• July 1, 2019
• Five (5) years, with no renewal or extension options.
Next Steps • NVA submitted interior improvements plans to city
November 2019.
• Continue to monitor and manage existing lease agreement
Annual Reporting
Period Revenue
• Initial Annual Lease Revenue Rate: $6,000
• Annual Lease Revenue Rate/Increase: 0% increase
• Current Annual Rent: $6,000
• Amount Received in Reporting Period: $4,500 (9 months)
Annual Update on the Real Estate Strategic Plan
and
Wireless Communication Facilities
Feb. 25, 2020
Curtis M. Jackson, Real Estate Manager
Gary Barberio, Deputy City Manager, Community Services
•Second annual update on:
•The Real Estate Strategic Plan (RESP)
•Wireless Communication Facilities (WCFs)
•Open Space Acquisitions
Agenda
Real Estate Srategic Plan•Adopted Oct. 2017
•Plan addresses 22 properties
•Framework for future decision making
•Staff committed to providing annual updates
•Second annual update covers Nov. 2018 through Dec. 2019
Reporting Period Highlights•Dove Library Café: Opened for business
•New Village Arts: Lease approved
•Hawthorne Property/Bob Baker Auto Group Lease: Lease approved
•Old Fire Station No. 3: Sold
•Pajama Drive: declared surplus
Revenue During Reporting Period
•Lease Revenue:Increased $220,018 to $346,648 (+58%)
•One-Time Revenue: $759,000
•Projected 2020 lease revenue: $357,047 (+3%)
•Projected 2020 one-time revenue:to $245,000
Wireless Communication Facilities (WCFs)•Macro WCFs:
•Existing Licenses:12 total License Agreements
•Micro WCFs (Small Cell):
•4 Existing Master License Agreements
•Crown Castle,Mobilitie,AT&T (new),and Verizon Wireless (new)
•184 Facilities
Combined WCF Revenue During Reporting Period
•Increased: $766,900 to $807,564 (+5.3%)
•Projected 2020: $831,791 (+3%)
Open Space Acquisition Highlights
•Paseo Del Norte Preserve
•1.31 acre vacant parcel
•Purchase Price: $94,100
•Closed Escrow:Jan.6,2020
•Continue implementing Real Estate Strategic Plan, manage city’s WCF portfolio, and continue exploring acquisition of open space parcels
•Provide annual progress update to City Council for the 2020 Annual Reporting Period.
Next Steps