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HomeMy WebLinkAbout1999-03-15; Parks & Recreation Commission; 399-7; Status Update: Pine School AcquisitionAB# 399-7 MTG. DATE 3-15-99 DEPT. RECREATION DIV. PARK PLN. STAFF: BEVERLY RECOMMENDED ACTION : INFO TITLE : STATUS UPDATE / PINE SCHOOL ACQUISITION ACT’oN Accept and file staff report. ITEM EXPLANATION : On February 16, 1999 City Council approved a Memorandum of Understanding (MOU) between the City of Carlsbad and Carlsbad Unified School District (CUSD) for sale of the Pine School property (Exhibit 1). In essence, the MOU outlines an acquisition strategy and acknowledges the need to address the following issues with respect to the Pine School site. Establishes a commitment to sell / acquire the property for the appraised value 0 Outlines the appraisal process 0 Establishes acquisition time line 0 Lease back options 0 Indemnification Establish minimum occupancy time frames and Notice to Vacate expectations 0 Relocation responsibilities Pursuant to Council and School Board approval of the MOU, staff from both agencies have retained the services of a real estate appraiser and those efforts are currently underway (Exhibit 2)- r Staff will give an update on this issue and be available to answer specific questions after the staff presentation. EXHIBITS: t 1. Letter to CUSD Superintendent with attached City Council Agenda Bill # 15,064. 2. Letter to the Tagg Company - February 9,1999. 027 February 23, 1999 /c- Cheryl Earnst, Superintendent Carlsbad Unified School District 801 Pine Ave. Carlsbad, CA. 92008 Dear Cheryl, Enclosed are two (2) copies of City Council Agenda Bill #15,064, which includes, Resolution No. 99-69, your letter dated February 1, 1999, and the Memorandum of Understanding (MOU), all of which reference the acquisition strategy of the Pine School site. Pursuant to the Carlsbad School Board’s action on February 11, 1999, the Carisbad City Council approved the attached MOU on February 16,1999. As per your request, their action considered and approved the recommendation of the School Board to delete the previous Section 4. ## iv. of the draft, “consideration for incorporation of the lease payment may be included as part of the purchase price. In addition, reference to your letter dated February 1 , 1999 has been made a part of the supporting documentation of public record through the Council’s motion to consider it as part of the record of their - hearing. Please have one (1) of the enclosed MOU’s signed by the Board President and return it to me so that our City Clerk may retain it for our records. The other copy is for the record of CUSD. I look forward to continued success in this acquisition process while working with you and your staff. Sincerely, f SENIOR MANAGEMENT ANALYST Attachment EXHIBIT 1 c: CUSD Business Manager, John Blair Assistant City Manager, Frank Mannen Recreation & Park Planning Manager, Ken Price F l4AlJBIURYmO(lMCEIMB MM 1oopIFusD MRLY EMWl.PP€ SCCHOOL 1200 Carlsbad Village Drive Carlsbad, CA 92008-1989 (61 9) 434-2825 FAX (61 9) 434-71 85 @ 028 b W CIN OF CARLSBAD -AGENDA AB# 15,064 7 LE: MEMORANDUM OF MTG. a-)b - Q 9 DEPT. UNDERSTANDING FOR SALE OF THE ClTYArPl RECOMMENDED ACTION : If Council concurs, adopt Resolution No. qq 49 Memorandum of Understanding between the City of Carlsbad and Carlsbad Unified School District outlining an acquisition strategy for the Pine School property, and directing staff to initiate the acquisition process. authorizing the Mayor to sign a ITEM EXPLANATION : Since 1982 the Parks and Recreation Element of the General Plan has acknowledged the need to expand recreation opportunities in the City's Northwest Quadrant. More specifically, the General Plan adopted by City Council on September 6, 1994 outlines an objective under the goals of park development "To consider the acquisition of additional parkland in the Northwest Quadrant a priority of the City." Moreover, in pursuit of those goals, it has been the ambition of Staff and a citizen advocacy group for park development in the Northwest Quadrant to seek the acquisition of the Pine School property if and when that opportunity was set forth. Recently, the issue of the sale of the Pine School property has been the topic of discussion at a City / School Coordinating Committee between staff and a minority of elected officials from both respective Boards. In consideration of the City of Carlsbad's long standing solicitation to acquire the Pine School site for Community Recreation purposes; and, in consideration of Carlsbad Unified School District's (CUSD) current desire to negotiate the sale of the property to more effectively address the facility needs of the students within the District, the attached Memorandum of Understanding (Exhibit 2) has been prepared to outline an acquisition strategy. Preparing the framework of the MOU has been a collaborative effort between City and CUSD staff. As presented, the MOU addresses the following commitments and identifies areas which will require further resolution prior to the conclusion of sale, they are: 0 Commitment to sell / acquire property for the appraised value Outlines the appraisal process 0 Establishes timeliw for acquisition 0 Leaseback optiiPtS 0 Indemnification 0 Minimum occupancy time frames and Notice to Vacate expectations 0 Relocation responsibilities If Council concurs, Staff is prepared to initiate the appraisal process immediately and negotiate additional contingencies of the sale concurrent with the appraisal process. As outlined in the MOU, a target date for conclusion is May 31, 1999. 029 1 " FISCAL IMPACT: Ultimately, funding for the acquisition of property for park purposes in the Northwest Quadrant will come from the Park-in-Lieu account for that quadrant. Until an appraisal is completed, the value of the property at this time cannot be established. It is estimated that adequate funding for acquisition exists in the Northwest Quadrant Park-in-Lieu account at this time. The MOU specifies a shared cost .between the City and CUSD for the appraisal process. EXHIBITS: 1. 2. Memorandum of Understanding between Carfsbad Unified School District and City of Resolution No. 9$ - 66 Carlsbad / Pine School sale. , \ .I '. . .. c 030 4 5 9 IC 11 12 12 14 1'; 1€ 15 2c 2: 2: 24 2f 25 2E r RESOLUTION NO. 39-69 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO SIGN A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD UNIFIED SCHOOL DfSTRlCT OUTLINING AN ACQUISITION STRATEGY FOR THE SALE OF THE PINE SCHOOL PROPERTY FOR COMMUNITY RECREATION PURPOSES WHEREAS, the City of Carlsbad has solicited the sate of the Pine Scho property from Carlsbad Unified School District (CUSD) for many years as a means ( fulfilling the need for parkland in the City's Northwest Quadrant, and; WHEREAS, the Parks and Recreation Element of the Carlsbad General Plat acknowledges the acquisition of parkland in the City's Northwest Quadrant to be priority for the goal of park development, and; WHEREAS, CUSD has indicated a willingness to sell the Pine School property in order to better meet the facility needs of the students within the District, and; WHEREAS, the City and CUSD have prepared a Memorandum of Understanding (a copy of which is attached hereto and made a part of) outlining the strategy to effectuate the sale of the Pine School property to allow for community recreation purposes and to aid the facility needs of CUSD. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, the following: * I. 2. That the Mayor is hereby authorized to sign a Memorandum of Understanding between the City and CUSD outlining an acquisition strategy for the sale of the Pine School property and, That the above recitations are true and correct. //I //I 1 2 3 4 5 E 7 'E s 1c 13 12 12 14 1: 1t 1'; 1t l! 2( 2: 2; 2: 21 2! - 2t 2' 21 cc 3. That the City Council does hereby authorize staff to pursue the acquisition of the Pine School property for community recreation purposes and return to Council for final approval of the sale when specifics of the acquisition have been further defined. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 16th day Of February I 1999, by the following vote to wit: AYES: Council Members Lewis, Hall, Nygaard and Kulchin NOES: None ABSENT: Council Member Finnila ATTEST: v XAREN R. KUNDTZ, Assistant City Clerk 032 rlsbad Uni ;d School District 801 Pine Avenue Carlsbad, CA 92008 (760) 729-9291 FAX (760) 729-9685 ... a world class district February 1, 1999 Mr. Keith Beverly Senior Management Analyst City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Dear Keith, I received the materials on the appraiser, Randy Tagg, and have had an opportunity to review his work. He appears to be very thorough and knowledgeable of properties in our area. The next step I believe we need to take is to meet directly with him. Would you prefer that I make those arrangements or would you prefer to do this and would you wish to be there for the meeting? Let me know soon. On another matter, I am concerned that the success of this approach of using a single appraiser will result in some possible negative consequences if we do not plan in advance the specific parameterdcriteria for conducting the appraisal. I know that we have established in former meetings that medium-high residential density is the current appropriate zoni$g. However, we have not clearly established the total number of units that could be built under that zoning or the potential types of development. Given the fact that the Senior Center is contiguous to this property and the fact that a great deal of development across town for senior retirement housinglcare facilities has occd recently, I believe this must be considered. And, of course, we both know that this large of a parcel located so centrally downtown, Without habitat problems, is a valuable piece of property. We are interested in making sure that before we turn loose an appraiser to begin his work, all these factors and others are figured into the picture. Perhaps it would be timely to have another meeting as soon as we select the appraiser to discuss these issues. 033 ~e1u-1 beverly City of Carlsbad February 1, 1999 i Page 2 t I will present the last draft of the Memo of Understanding between us at my next Board meeting on February lo*. However, I would like to be able to answer questions that might arise concerning the specificdparameters of how the appraisal will proceed. Let's talk soon on how this can be accomplished. Cheryl Ernst .- Superintendent cc: John Blair, Assistant Superintendent, Business Services, CUSD Frank Mannen, Assistant City Manager, City of Carlsbad Ken Price, Recreation and Park Planning Manager, City of Carlsbad 034 MEMORANDUM OF I' '3ERSTANDING BE'MIEEN THE C 'Y OF CARLSBAD (CITY) AND THE CARdBAD UNIFIED SCHOOL DISTRIC'i (DISTRICT) FOR THE SALE OF THE PINE SCHOOL PROPERTY In consideration of the City of Carlsbad's long standing solicitation to acquire the Pine School site for community recreation purposes; and, in consideration of Carlsbad Unified School Districts current desire to negotiate the sale of the Pine School property to more effectively address the facility needs for the students within the District, the following Memorandum of Understanding (MOU) is offered to each respective Board for review, advisement and approval. - This MOU serves to memorialize the collaborative endeavors of staff to date in promoting good faith efforts while developing strategies and goals to ultimately accomplish the sale of the Pine School site. Having been the subject of discussion at the November 18, 1998 City/School Coordinating Committee, it was the iecommendation of both staff and representatives from each respective Board that the majority of each Board should consider this matter and direct their staff accordingly with respect to the goals and strategies as outlined below: -- 1. 2. 3. 4. District shall sell the Pine School site to the City for the appraised value prior to May 31, 1999. An appraisal of the site shall be commissioned to determine a fair and equitable purchase price for the 7.2 acre site referred to as the Pine School property. i. City and District shall seek to retain the appraisal services of a mutually acceptable, reputable and neutral party at a shared cost. ii. In an effort to identify a fair and equitable property value, shared input to the appraisal process from the City and District shall be encouraged. Issues related to that process will include but may not be limited to utilizing underlying General Plan and Zoning designation (absent public use of the property), facility demolition and removal, hazardous waste removal, etc. iii. In the event either party shall disagree with the appraised value, an additionaj appraisal may be commissioned. The total cost of such appraispf shall be assumed by the requesting party. The actual purchase price may then require further negotiations, resulting in an inability to meet the time deadlines stated above. All efforts shall be made to implement the appraisal process and complete the acquisition in a timely manner to accommodate C.U.S.D.'s need to fund the acquisition of the Calavera School site. City shall lease back the Pine School site to the District for the continuation of current District functions occurring on the property. Specifically those functions are the Carlsbad Village Academy, the Pine School classroom use by elementary students until their relocation to the Jefferson School, and the District maintenance functions currently existing onsite. Terms of the lease shall address but may not be limited to the following: 035 i. A minimil time frame to allow occupancy by f' - District for all District functions ,mently in use on the site shall be h, (2) years from the date of purchase. ii. Relocation efforts shall be actively pursued by the School District and the District will waive any rights to reimbursement for relocation expenses. iii. A fair Lease rate will be negotiated by the parties. iv. Contingent upon future development plans for the site, adequate notice for the Scfiool District to vacate the site shall be provided. v. Indemnification of City will be provided by District during the Lease-back term. CARLSBAD UNIFIED SCHOOL DISTRICT Steve Cade, President .. ,?' 036 February 19, 1999 ‘I The Tagg Company Randy A. Tagg, MA1 8321 Lemon Ave. La Mesa, CA. 91941-5287 Dear Randy, At the Carlsbad Unified School Board meeting on February 11 , 1999 and the Carlsbad City Council meeting on February 16, 1999, each respective Board approved a Memorandum of Understanding between both agencies outlining an acquisition strategy for the Pine School property. Pursuant to the interview with yourself and City / School District staff on February 4, 1999 to discuss your qualifications, expertise and interest in performing the appraisal for the Pine School property, your services have been recommended and approved by both parties. Therefore, notice is hereby given for you to proceed with the appraisal process and you may begin immediately. As discussed during the interview, our expectation is that the appraisal will be completed within 60 days and performed for an amount not to exceed $1 2,000. Enclosed for your information is supporting documentation of public record which approves the Memorandum of Understanding between the City and School District outlining the acquisition strategy for the subject property. We look forward to working with you on this matter and are prepared to respond to any requests for additional information which you may require with respect to this appraisal process. Sincerely, iif LrP &4 KEITH BEVERLY SENIOR MANAG NT ANALYST CITY OF CARLSBAD CARLSBAD UNIFIED SCHOOL DISTRICT EXHIBIT 2 c: Assistant City Manager, Frank Mannen Recreation & Park Planning Manager, Ken Price CUSD Business Manager, John Blair 7 -- Carlsbad. CA 92008-1 989 (61 9) 434-2825 FAX (61 9) 434-71 85 @ 037