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HomeMy WebLinkAbout1991-08-19; Parks & Recreation Commission; 891-14; Magnolia Site Development Report UpdatePARKS & RECREATION COMMISSION - AGENDA BILL TITLE- MAGNOLIA SITE DEVELOPMENTAB# ,,_- «flQ|CH REPORT UPDATE (INFO) M I *J. _J^ DEPT. RECOMMENDED ACTION: Accept and file staff presentation relative to a recent Council action regarding the Magnolia site acquisition and development. ITEM EXPLANATION: During the August 6th City Council meeting, City staff presented the Magnolia site acquisition and development study (Exhibit 2) which was the subject of the Parks and Recreation Commission's report to the Council on Northwest Quadrant Park Enhancement Issues. For an accounting of Council's action please refer to Exhibit 1 on the following page. Staff will present a verbal update and answer any questions the Commission may have. FISCAL IMPACT; None at this time. EXHIBITS: 1. Memo to Parks and Recreation Director August 8, 1991 2. City Council Agenda Bill - Magnolia Site Acquisition/Development 59 August 8, 1991 TO: PARKS AND RECREATION DIRECTOR FROM: Senior Management Analyst MAGNOLIA ACQUISITION AND DEVELOPMENT/CITY COUNCIL AGENDA ITEM It is my understanding that the Council action relative to the agenda item concerning the Magnolia acquisition and development presented August 6, 1991, was as follows: 1. Staff was directed to report back to the Council with specific information on the establishment of a Community Facilities District (CFD) in the northwest quadrant for park enhancement. This report is to include various amounts of money which would be generated at various levels of assessments over various time frames. 2. Relative to the acquisition of the Magnolia site, we should at this time keep all options open including unilateral acquisition and development of the entire 13.9-acre site as well as joint possibilities for acquisition and development of the site with the Carlsbad Unified School District. It was suggested by the Council that we inform the School District of our efforts to establish a CFD for the acquisition and development of the site as they may wish to consider this as an alternative in their efforts to pursue acquisition and development of the 5.3-acre site to meet their needs. 3. Relative to the Hosp Grove area, staff is to prepare a scoping assessment as to what we envision as an enhancement plan for Hosp Grove which is to also include the entire south shore of the Buena Vista Lagoon encompassing the area at the Duck Feeding pond to the north and extending westerly to include Maxton Brown extension ending at the Pacific Ocean. There are additional points which will be necessary as support information when this issue will again be addressed by the City Council. That information would include: Descriptions for the recommended northwest quadrant park enhancement projects The estimated costs of each project Any direction that the Carlsbad Unified School District is pursuing relative to their efforts to acquire and develop the Magnolia site This information was requested to return to the City Council in late September or October for their consideration. For information relating to the formation of a CFD, we will need to meet with the Financial Manager. However, I believe all other issues can be addressed within our department. We will begin on this issue directly and keep the Parks and .Recreation Commission abreast of our endeavors. ITH BEVERLY ryuTDTT 1 c: Assistant City Manager 60 C. An ADA I J. Financial Manager CITY OF CARLSBAD - AGENDA BILL •//>' AB# MTG DEP II.D61t r (?4 /€ ' TJTJLEj MAGNOLIA ACQUISITION AND DEVELOPMENT STUDY DEPT. h CITYA1 CITYM If 9- 4D.'f5B rrvV^\ QR^V RECOMMENDED ACTION: After review of the staff report and consideration of the alternatives, your motion would be to direct staff to take the appropriate action regarding the acquisition/development of the Magnolia site. ITEM EXPLANATION In a City/School Coordinating Committee meeting held on February 22, 1991, the subject of this report was discussed. In light of the fiscal implications and availability for public use of the proposed park, Council representatives in attendance at the meeting recommended that the issue of the Magnolia acquisition and development should be referred to the City Council for further consideration and direction. BACKGROUND On August 28,1990, the City Council accepted a report from the Parks and Recreation Commission related to a five (5) year plan for park enhancement within the Northwest Quadrant of the City. The report was prepared in cooperation with representatives from a citizens' group and departmental staff. Staffs recommendation as part of the agenda bill that accompanied the Commission's final report with respect to the property adjacent to Valley Junior High School (Magnolia site) was: "That the issue of acquisition and/or development strategies for the 13.9 acre parcel be considered by the City/School Coordinating Committee. If a joint venture can be worked out to the satisfaction of both parties, a report outlining the financing and development concepts should be prepared for future district and City Council consideration." The primary reasons this particular property was considered for park enhancement opportunities were: 1. It would satisfy the citizen group's request that a community park be scheduled in the Northwest Quadrant within the next five (5) years. 2. It would replace the original proposed Northwest Quadrant community park site (Pine Elementary School, seven (7) acres) previously scheduled for acquisition and development in the CIP after the year 2000. 3. It was the only partially vacant land within the study area that had potential for development. 4. Potential joint acquisition, development and use opportunities with the CUSD. fii Although the City accepted the final report and recommendation(s), the following modification was made by Council with respect to the Magnolia site. "City [staff] is to pursue the acquisition of the property adjacent to Valley Junior High School unilaterally while discussing the matter with the high school [joint venture]." COMMENTS/DISCUSSION Staff investigation to date has determined that the subject property of 13.9 acres consists of eight (8) parcels, four (4) property owners and three (3) dwelling units. On September 4, 1990, the City Manager directed staff to prepare a joint use acquisition and development feasibility study for City/School Committee consideration. The intent of the study was to determine if the needs of the City and District could be mutually met, principally the availability of the facility for public use throughout the day. Staff prepared four (4) conceptual site plans based on the City's community park concepts. These plans were then reviewed with district officials on September 25. 1990, to determine if the needs of both the District and the City could be met as outlined in the proposed conceptual plans. After review, it was determined by both the District and City staff that alternative conceptual plan #3 could mutually benefit both agencies. It was also determined that to accommodate the planned recreational amenities that all the parcels totaling 13.9 acres would be needed. In a subsequent meeting, the District indicated they would require the use of the large activity play fields for their PE classes during school hours and on an "as needed" after school basis for their organized athletic programs. Consequently, during the school year the fields would only be available for public use on weekdays after 5:00 p.m. and on the weekends. The District would not require the use of the community center or the passive areas, and accordingly, those areas could be made available for the general public throughout the school day and on weekends. Park Inventory Analysis (NW) There is a -<1.71> acre park deficit in the Northwest Quadrant. This is based on the City's park inventory as of April 1991, Acres Required Acres Exist, + / - 78.07 76.36 -<1.71> *NOTE: Parkland deficit will be eliminated by the Hosp Grove and Sculpture Park Enhancement projects scheduled to be completed in the next two years totaling 5.71 acres. / / o *•> 4.' . Page 3 Park projects and/or sites included in the approved park Master Plan in the Northwest Quadrant that have an approved financial mechanism for acquisition and development are: Site Acres Fiscal Year Veteran's Memorial 25 2000+ Park Acq/Devel (Pine) 7 94-2000 Community Center/Gym 2000+ (location to be determined) Cannon Lake 6.87 95-2000 Hosp Grove (improvements) 5.54 92-93 Maxton Brown Extension 1.15 95-96 Sculpture Park .17 91-92 Total 45.73 At buildout the inventory indicates there will be a 6.37 acre surplus of park land in the Northwest Quadrant. Acres Required Acres Exist. + / - 113.91 120.29 +6.37 Additional Northwest Quadrant park enhancement projects under consideration as approved by Council in August of 1990: Site Acres Fiscal Year Magnolia Acquisition/Devel 13.97 . N/A Maxton Brown Corridor Ext. 4.00 96-2001 AHLZoneS 11.3 N/A Total 29.27 It should be noted that of the above 29.27 acres of park enhancement projects, currently only seven (7) acres of that total has a financial mechanism for acquisition and development in the Northwest Quadrant approved CIP program. FISCAL ANALYSIS In developing cost estimates for the City acquisition and development of the 13.9-acre Magnolia site, staff has estimated the cost may range from 13 to 16 million dollars ($13,000,000 - $16,000,000). Additional funding may also be required for the purchase of the three (3) dwelling units and the exact cost for this particular acquisition has not been determined at this time. AB# _ '__, Page 4 ESTIMATED COST ITEM LOW HIGH Acquisition 14 ac $4,200,000 $7,000,000 Park Improvements 14 ac 1,890,000 1,890,000 Community Center 3,000,000 3,000,000 Offsite Improvements 1.210.000 1.250.000 Subtotal 10,340,000 13,140,000 Contingency 20% 2.068.000 2.628.000 Total *$ 12.408.000 $15.768.000 Annual Maintenance & Operation $250,000 $250,000 (not included in current budget forecast) *N_ote In addition to the above cost estimates, there are three (3) dwelling units that will require acquisition considerations. As outlined in the 1990 to buildout Capital Improvement Program (CIP) there is a total of PIL and PFF funds of $8.2 million available for future park projects including a community center in the Northwest Quadrant between today and buildout. The majority of the funds were earmarked for the acquisition and development of the Pine School site for future community park purposes. It also should be noted that the bulk of the funds will not be received by the City until well after the year 2000. According to the Finance Department, as of March 1, 1991, there is a total of $1,260,000 in the PIL fund that could be used for park acquisition purposes. If the City Council allocated all current park-in-lieu funds ($1.2 million) to the Magnolia Park project, available resources would fall short of the needed funding by $11.2 to $14.5 million. If we assumed that all Northwest Quadrant park-in-lieu and Public Facility Fee funds ($8.2 million) to be received through buildout were available to fund this project today, we are still short by $4.2 million to $7.6 million. It should be noted that if Council determines to fund all or part of the proposed Magnolia project and move it up in priority, the CIP would have to be amended by deferring the approved programs such as additional quadrant park plans, libraries. street and or other PFF planned improvements. This reallocation of funds could have an effect on the City's ability to meet growth management standards in other parts of the City. If Council determines to use General Fund monies over $1 million dollars, it would require a Prop H vote. AB#_!_! , Page 5 (Financing Alternatives) Should the Council decide to proceed with this project a financing program must be developed. The financing program will depend on one or more of the following alternatives to raise the necessary funds for the project: 1. Debt Financing a. General Obligation Bonds - This type of bond issue requires approval by 2/3 of the voters of Carlsbad. This issue would provide the funding necessary to purchase and construct the park but does not provide funding for ongoing operating costs. A general obligation bond issue provides the City Council with the authority to levy a tax on property owners within Carlsbad to raise funds to cover annual debt service payments. Mello-Roos Community Facilities District (CFD) - A Mello-Roos community facilities district could be formed within the Northwest Quadrant to provide the necessary funding for acquisition and development of the site. The Council may define the boundaries of the CFD to be less than the boundaries of the City. A tax is imposed on the property within the CFD to raise the amount needed for annual debt service payments on operating costs. The formation of a CFD requires approval of 2/3 of the voters within the district boundary. c. Certificates of Participation (COP's) - A Certificate of Participation is similar to a bond. The City may issue COP's without voter approval. However, the General Fund is used to repay the debt. This additional demand on General Fund revenues will require a reduction in City services to meet annual debt service payments. d. 1972 Lighting and Landscaping Act - The 1972 Act is generally used to support maintenance and operating costs of landscaped areas. Although the Act has been used for land acquisition in some cases, this activity is outside the intent of the Act. Development of parks can also be funded through the Act although, again, this is an expansion of the original intent. Council may form a 1972 Act District where a benefit from the improvement or maintenance area is realized by the property. Council would annually levy an assessment against property within the District to raise funds necessary to meet debt service and/or maintenance costs. Determining an area of benefit may be difficult in light of our current Quadrant park financing program. AB# _, Page 6 2. General Fund - The Council may decide to support this project from the General Fund. If this option is selected, staff will report back on the budget reductions necessary to make funds available. Council should realize that the budget impacts of this option will be substantial. ALTERNATIVES 1. Maintain the program as outlined in the FY 90-91 CIP Budget for the development of a community park in the Northwest Quadrant (acquisition and development of Pine Elementary School, 7 acres). Pros The Pine School acquisition and development program would result in a surplus of 6.37 acres of parkland based upon 3 acres/1000 population at buildout and would exceed the park performance standard of the Growth Management program. The acquisition/development costs and the mechanisms to finance that expense is currently identified in the approved 1990 Capital Improvement Program. Cons As outlined in the Northwest Quadrant Park Enhancement Report, the opportunity for the City to acquire the Pine School site is not a certainty at this time. CUSD officials do not anticipate the sale of the site until after the year 2000, if at all. This time frame does not fall within the Northwest Quadrant Citizen Group anticipation of a five year park enhancement program. 2. Delete the Pine acquisition, City to acquire and develop entire 13.9 acre Magnolia site for community park purposes. Pros The park performance standard in the Northwest Quadrant at buildout would be exceeded by 13.22 acres. The park could possibly be acquired and developed within a five year time frame if a financing plan is secured. The 14-acre site could house the types of amenities that are currently associated with community park development within the other quadrants of the City. AB# Page 7 Cons The cost to acquire and develop is estimated at $13 to 16 million (including offsite improvement and community center/gymnasium). The total funds (PIL and PFF) identified in the CIP for a community park in the Northwest Quadrant amount to $8.2 million but will not be available until well after the year 2000+. (Refer to fiscal impact statement.) Total funds available to date are approximately $1.2 million. Additional funding mechanisms would be required for approximately $4.2 - 7.6 million. All funding mechanisms would need to be advanced in order to meet a 5-year development timeline. The park development would increase neighborhood traffic, parking, noise and lighting impacts. Would require the purchase of (3) existing dwelling units. 3. Jointly acquire and develop the 13.9-acre site with the Carlsbad Unified School District. [CUSD has stated they are pursuing the acquisition of a 5.34-acre parcel within the site in order to provide much needed activity play fields preempted by the high school expansion program.] Pros If CUSD were to acquire the 5.34-acre site for activity playfields, it could work within a conceptual park design and reduce the City's acquisition/development costs by approximately $2.3 - 3.4 million. The City's portion to acquire and develop the remaining 8.6 acres would range from $3.7 to 5.4 million. Additional costs for offsite improvements ($1.2 million) need to be discussed with the District. A joint use agreement would provide public use of the playfields during non-school use. Cons Public use of the activity playfields would be restricted during periods of school use (8-5 Monday through Friday approximately). May require City to purchase two (2) existing dwelling units on the remaining parcels. City expenditures ($3.7 - 5.4 million) would be required to be advanced in order to meet a 5-year development timeline. The shared costs of offsite improvements ($1.2 million) and the costs for the community center/gymnasium ($3 million) are not included in these figures. 4. Revfte the current park development program to the extent that the City unilaterally pursues the acquisition of the 5.34-acre parcel only. 64 AB# ' . Page 8 Pros The cost of acquisition and development ($2.3 - 3.4 million) would be significantly less than the cost of the total site. This figure does not include off site improvements ($1.2 million) or community center/gymnasium ($3 million). The site would provide multi-use activity playfields and meet the recommendation of the Recreational Facility Financing Committee to provide an adult soccer field in north Carlsbad. On an interim basis, the adult soccer field requirement has been satisfied by the renovation of the upper Valley field, completed in December of 1990. • The park performance standard at buildout would be exceeded by approximately 4.7 acres. A financing mechanism is in place for acquisition and development of 5-7 acres of parkland in the Northwest Quadrant (approved 90-91 CIP Budget). Would eliminate the necessity to purchase two (2) existing homes. Cons The size of the parcel (5.34 acres) site would not allow for the types and quantity of amenities, i.e. community center, active or passive areas. currently being developed in other community park sites and may not meet the expectations of the Northwest Quadrant Citizen Group. Funding mechanisms would need to be advanced in order to meet a 5-year development timeline. Traffic, noise, light, neighborhood disruption issues. Parking issues. • CUSD would require use of facilities during the school year. Would require the purchase of one existing dwelling unit. 5. Jointly purchase and develop the 534-acre site with the Carlsbad Unified School District Retain plans to acquire the Pine School site in the future if it becomes available and if a financing mechanism can be secured. ros - Park acreage at buildout would exceed the park performance standard by 4.7 acres under the current guidelines (joint use agreement). Would eliminate the necessity to purchase two (2) existing homes. . AB#__ , Page 9 • The cost to acquire/develop and provide offsite improvements would range from $3.3 - 4.4 million. A joint venture would cost $1.7 - 2.3 million. Although $1.2 million in park-in-lieu funds is currently available, a total of $2.38 million will be available by 1994-95. This amount may fund the City's share. Multi-use activity playfields would be available for public use under a joint use agreement with CUSD within a 5-year time frame. Cons The size of the park site would not allow for the types and quantity of amenities currently being developed in other community park sites and would not meet the expectations of the Northwest Quadrant Citizen Group. Traffic, noise, light, and neighborhood disruption issues. Parking issues. Would require the purchase of one existing dwelling unit. CUSD would require use of facilities during the school year. 6. District purchase and develop subject parcel. City enters a use and maintenance agreement for public use. Pros Would allow the City to direct existing financing mechanisms to other park enhancement projects. Eliminate neighborhood disruption issue and offsite improvement costs. Cons Would not meet the expectations of a community park in the northwest quadrant. 7. The City purchases the total 13.9 acre Magnolia site and land bank for future park development and/or enter into an agreement with District and they develop for joint use. Pros Create a land bank for future park considerations. Opportunity exits for joint development and use. Cons May not meet the Northwest Quadrant citizens' group expectations of a community park within the next five years. 65 AB# ' , Page 10 There are insufficient funds available for acquisition of the 13.9 acre Magnolia site. Neighborhood disruption issues and offsite improvement impacts. 8. Hosp Grove development proposal. The last alternative Council may wish to consider would be to redirect the NW Quadrant existing financing mechanism (PIL, PFF) to a phase development program of the city owned 75.5 acre Hosp Grove, (trails, staging areas, picnic grounds, play areas, possible interpretive and community center location). Pros Creates a public use within the grove area, Financing mechanisms are in place (PIL, PFF). Has potential in enhancing the proposed city wide trail system (park standard/dedication revision). May reduce neighborhood disruption issues. Potential site for community center. Cons May not meet the expectations of a community park concept in the NW Quadrant. SUMMARY The City's existing long range park development and financing program would satisfy the park performance standard by build-out in the North west Quadrant (Pine Elementary School acquisition and development). To extend the adopted park and amenity standards beyond buildout projections in any quadrant would create a City wide financial burden. To provide a comprehensive community park that includes a balance of active and passive recreational amenities would require the acquisition of the entire 13.9 acre Magnolia site, which includes three (3) dwelling units and the consideration of major offsite improvements. Our analysis indicates there are insufficient funds available to acquire and develop the entire site based on our existing financial mechanisms (PIL, PFF). To enter into a joint acquisition and development venture with the District for a portion of the Magnolia site, may not meet the community park desires of the Northwest Quadrant Citizen's group. AB# i . Page 11 /- It is extremely difficult to locate a suitable site to build one large comprehensive community park in the older part of the Northwest Quadrant without causing either a neighborhood disruption issue or entering condemnation proceedings. If the Pine School site never becomes available for community park purposes, Council may wish to consider redirecting the Northwest Quadrant financing mechanisms (PIL, PFF) to a phased development program of Hosp Grove (trails, picnic areas, interpretative center etc.). If General Fund monies of over $1 million dollars are used it would mandate a Prop H vote. Staff is seeking direction from Council to either: 1. Maintain the current program as outlined in the FY 90-91 CIP budget for the development of a community park in the Northwest Quadrant (acquisition and development of Pine Elementary School, 7 acres). 2. District purchase and develop Magnolia parcel. City enters use and maintenance agreement for public use. 3. Develop a long range Hosp Grove enhancement program. r EXHIBITS; 1. Site Map 2. Proposed Magnolia Site Community Park Conceptual Plans r kA N D A V h h* y.. j_ ^»\ Ay '•**'&"•&-\\£J' -^ EXHIBIT 1 JQ xlT^X^b * -~^EXHIBIT 2 ^•^Miitw^^^v. '-AA,. -VH.-^ ^^wSTT™""^^^"^^TfiBCr™^™^T==r'\ "JT* V-T^'TyTN