HomeMy WebLinkAbout2020-09-15; City Council; ; Authorize the Release of a Request for Proposals to Sell a Property Located on Pajama Drive in OceansideMeeting Date: September 15, 2020
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Curtis M. Jackson, Real Estate Manager
curtis.jackson@carlsbadca.gov, 760-434-2836
Subject: Authorize the Release of a Request for Proposals to Sell a Property
Located on Pajama Drive in Oceanside
Recommended Action
Adopt a resolution authorizing the release of a request for proposals for the sale of property
located in the City of Oceanside on Pajama Drive, APN 149-070-47-00.
Executive Summary
Staff is requesting City Council authorization to release a request for proposals to sell a
property located in the City of Oceanside on Pajama Drive. In October 2017, the City Council
approved the Real Estate Strategic Plan, which recommended that the city sell the property.
The plan is intended to be a framework for decision making, with all specific actions to be
presented to the City Council for discussion and direction.
Discussion
The 10,891 square-foot Pajama Drive property is located at the end of a cul-de-sac in a
residential neighborhood in Oceanside (APN: 149-070-47-00). The property is not located in the
coastal zone and is zoned Residential Estate – B (RE-B), which will allow for one single-family
home to be built on the property. The property originally served as a water storage facility for
what was then known as the Costa Real Water District, a forerunner to the Carlsbad Municipal
Water District, and was acquired by the City of Carlsbad in 1979. The water storage tank was
demolished in 2008, and the property has been vacant ever since. The Real Estate Strategic Plan
approved by the City Council in October 2017 recommended that the city list the property for
sale.
The process required for selling surplus city property is specified in California Government Code
Section 54220. Under this law, selling this property 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 council intends to dispose of it. On Nov. 9, 2019, the City Council approved
Resolution No. 2019-337, which declared the property surplus after determining it was no longer
needed for city water, the public right of way or city facilities.
In keeping with Section 54220, the resolution specified that the City Council determined the fair
market value of the property to be $245,000. The property had been appraised at between
$109,000 and $245,000 in September 2019.
Sept. 15, 2020 Item #5 Page 1 of 13
The property needed to be first offered for park, recreation or open space uses to all local public
entities that have jurisdiction within the City of Oceanside, as well as to any local public entity or
housing sponsor that has notified the California State Department of Housing and Community
Development of its interest in surplus land and that oversees the development of low and
moderate-income housing. If any of those agencies made an offer to purchase the property for
its fair market value for park, recreation or open space purposes, or for the development of
affordable housing, the city would have been required to engage in good faith negotiations with
bidders for 90 days. City staff reached out to all appropriate agencies and found no interest in
buying the property, so it can now be sold to a private buyer.
The request for proposals will be released and available for a 45-day period during which
interested parties can submit proposals to acquire the property. To provide additional support
for this sale, staff used a competitive process to enter into a professional services agreement
with residential real estate broker Reid J. Chambers. Mr. Chambers was selected because he has
extensive negotiation and residential sales experience with homes and residential properties sold
in the North County. He will assist the city throughout the proposal and negotiation process by
marketing the property to a wider audience and helping to negotiate the most competitive fair
market price.
Once proposals are received at the close of the 45-day period, staff may request the best and
final offers. Staff will then return to the City Council with a recommended buyer for the council’s
approval and a proposed purchase and sale agreement.
Fiscal Analysis
The estimated revenue from the sale of the property is between $109,000 and $245,000, based
on a formal appraisal commissioned on Aug. 20, 2018, and updated on Sept. 9, 2019. However,
current market conditions could raise or lower the price because of external factors, such as the
COVID-19 pandemic. Revenue generated from the sale will be deposited into the General Fund.
In addition to receiving revenue from the sale, the city will be relieved of the responsibility to
maintain insurance, landscaping and security on the property, saving the city $4,000 a year.
Next Steps
Given the council’s approval, staff will release the request for proposals, evaluate the proposals
received and return to the City Council with a recommended buyer and a proposed 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. Resolution
Sept. 15, 2020 Item #5 Page 2 of 13
RESOLUTION NO. 2020-188
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
AUTHORIZING THE RELEASE OF A REQUEST FOR PROPOSALS FOR THE
SALE OF PROPERTY LOCATED IN THE CITY OF OCEANSIDE ON PAJAMA
DRIVE, APN 149-070-47-00.
WHEREAS, on Oct. 17, 2017, City Council approved the Real Estate Strategic Plan, which
recommended that the city sell the Pajama Drive property (Property); and
WHEREAS, the Property originally served as a water storage facility for what was then 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 city currently desires to release a request for proposals for the sale of the
property on Pajama Drive; and
WHEREAS, City Council has determined that the Pajama Drive property is no longer necessary
for city water storage as originally contemplated; 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 request for proposals, attached hereto as
Attachment A, for the sale of property located in the City of Oceanside on Pajama
Drive.
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
Sept. 15, 2020 Item #5 Page 3 of 13
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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 15th day of September, 2020, by the following vote to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESON, City Clerk
(SEAL)
Sept. 15, 2020 Item #5 Page 4 of 13
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
The City of Carlsbad encourages the participation of minority and women-owned businesses
Attachment A
Sept. 15, 2020 Item #5 Page 5 of 13
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
Property Information 2
Development Impact Fees 2
III. SELECTION PROCESS 2
Selection Process 2
Submittal Requirements 2
Procedure/Schedule 3
Questions 3
Site Tours 3
Selection Criteria 4
Offer to Exclusively Negotiate 4
IV. SPECIAL CONDITIONS 4
Reservations 4
Public Record 4
Right to Cancel 4
Right to Negotiate 5
Additional Information 5
Conflict of Interest 5
Scope Changes 5
Proprietary Information 5
Responsive Materials Ownership 5
Best Value Selection 6
Sale Award 6
V. CONCLUSION 6
Sept. 15, 2020 Item #5 Page 6 of 13
I. INTRODUCTION & OVERVIEW
Pursuant to California Government Code §54220 et seq., the City of Carlsbad (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 (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 Property.
II. BACKGROUND AND PROPERTY DESCRIPTION
The Subject Property
The Property originally served as a water storage facility for the Costa Real Water
District and was later acquired by the City of Carlsbad 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 Property is 10,891-square feet in
size and is located at the end of a cul-de-sac on Pajama Drive in a residential
neighborhood in Oceanside (APN: 149-070-47-00). 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
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
Property.
Site Map
For an aerial view of the parcel, please see the attached Site map.
Adjacent Uses
This acquisition opportunity in the City of Oceanside is unique and exciting for many
reasons:
1) The Property is located within easy access to Highway 76 and 78, Interstate 5,
and Mission Avenue.
2) The Property is located near commercial and retail amenities.
3) The Property is in 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.
Sept. 15, 2020 Item #5 Page 7 of 13
Property Information
Below is an outline of land use information applicable to the 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 Property is not in the coastal zone.
Development Impact Fees
Development of the Property may be subject to impact fees. For more information,
please contact the Oceanside Planning Department at (760) 435-3520.
III. 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 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 the city in
identifying prospective purchasers and negotiating the sale of the 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, sealed 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;
Sept. 15, 2020 Item #5 Page 8 of 13
2) The financial ability of the prospective purchaser to acquire the 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 Property by the prospective purchaser.
5) The proposed Terms (which may be subject to a MAI appraisal) for the 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], 2020. 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 to the
Carlsbad City Council selection of a purchaser to exclusively 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.
Sept. 15, 2020 Item #5 Page 9 of 13
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 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 Property, as determined by the City Council.
Offer to Exclusively Negotiate
Upon selection of a Respondent with which to exclusively negotiate with by the
Carlsbad City Council, the city will negotiate a purchase and sale agreement exclusively
with the selected Respondent for a period of up to 60 days. Once the purchase and sale
agreement is negotiated, it must be formally approved by the Carlsbad City Council. 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 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.
Sept. 15, 2020 Item #5 Page 10 of 13
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.
Sept. 15, 2020 Item #5 Page 11 of 13
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 and look forward to your proposal for purchase of the
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.
Sept. 15, 2020 Item #5 Page 12 of 13
Site Map
Sept. 15, 2020 Item #5 Page 13 of 13