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HomeMy WebLinkAbout1966-01-07; City Council; MinutesI I I b i CITY OF CARLSBAB i Minutes of: CITY COUNCIL (Adjourned ideeting) : Date of Fleeting: January 7, 1966 ' '\ : Name '<, ' r Time of Neeting: 7:OO P.M. : of \' ', : ("""""""""""""-""-""""-~~"""""""""""""*""""~~"-""""-" Place of Pieetina: Council Chambers : Member ! ROLL CALL was answered by Councilmen Dunne, ! Neiswender, Atkinson, Hughes and Jardine. Also i i present were City klanager Marnaux, City Attorney : : I?!i fson and Ci ty C1 erk Adams. I 1 i Mayor Atkinson announced this adjourned meeting i ; was called for the purpose of discussing the pro-: : posed agreement between the City of Carlsbad and ; ",,-\.\",,-' '\\ ", '\ I I I I I I' 1. 1 I 4 [ the Hay Department Stores Company. i The City hianager stated this is one of the most I i important decisions before the Council this ; eveni ng. i Mr. Robert Gelz, Vice President of Play Department! i Stores Company was introduced. i Nr. Getz presented drawings of the shopping centek complex, and outlined details of the development.! i He stated that seven years ago the 8ission Valley! t site was chose. The thought then and is now that; i more sites would be needed in San Diego County, i .I In the North County the population and economic ; I conditions have grown while San Diego has stood i :still. They need a population of 150,000 to I I i 200,000 for a major department store. According r' i 125,000 population in this area. There are i probably more that would use a major shopping ; center. San C?emente would no doubt b~? divided ; i between the Santa Ana area and this area. Also ; : this would apply to the Escondido area. Their i i records show that approximately $17,000,000 in I :sales are lost to this area. : The location of the site for Carlsbad was chosen ! i as it is close to the 101 Freeway and also on a i !major inland route. The corner of El Camino Real: : and V'ista \<Jay is an ideal location. Due to the : i location the name of Plaza Camino Real was chosen! : for the development. Their plans are,for a two i i phase development. The first phase will be a i ; two level air-conditioned enclosed mall, featurinb : shops. An area of 580,000 square feet is antici-; I pated for the first phase of the development. !When population and economics warrant the complexi i will become a three department store complex with! : between 900,000 and l,OOO,OOO square feet of 1 I store space. I Rr. Getz further stated there will be two prime I i sources of tenancy. {l) Individual merchants I I : that are interested, as their experience has beenj i that individual merchants do a much better job : : than the chain stores; and (2) the people they I i have in tbIission Valley Center. i As an example of the type of development they i expect to build in this area Hr. Getz explained i : the development 'they have in Topanga known as 1 Topanga Plaza This is an air-conditioned en- ! ;closed maul with all open store fronts. This is i i a two level development. The two level develop- : :rnent has proven more satisfactory to the shopper : i as it cuts down the walking. It is a place where! ; the family goes and spends the day. Due to the i i entertainment and eating places offered in the : i complex, 1/3 to 1/2 of the stares stay open on i : Sundays. ! 4 I I I I I I I I 1 I L I I I I I I 4 I I I ! to their figures there is between 110,000 and ! I I I I I s I I a I I i two large department stores and 40 small special tJ I s I t I t I I I I b I I I I 8 I I ; I I I I I I I I I 4 I I 1 I I I I t I L b i I I I I I * I I t I 8 I 1 t I -2- I ~""""""""""""~""~"""""""""""""""""~"~~"~~~-~~- ! L I *\' '\ -\, ', ', '\ '\ ', \ ' N a me '\, **! of '3 < , '\ ' Member ."""""" i It is not their intention to include service shop$ ;in this development, as they have found when they: i try to put everything int'o ane devefopment it is i :not successful. In the blission Valley Developmen! I the service shops are located to the west of the ; jshopping development. i In presenting the drawings Mr. Getz pointed out i i the May ColiIpany would retain title to the proper-: Ity uhere the buildings are located. t 8 !MR. WILLIAl4 KNOTT asked Hr. Getz if he could stat4 :at this time who would operate the other depart- : 1 ment store? I I jNr. Getz stated they expect to be able to name i !the other department store in about six weeks. I 4 b :Cmn. Neiswender asked hotrd the merchant would go i jabout leasing these stores? 8 t :Hr. Getz stated they should contact him. !Nr. Knott asked when the ground breaking would bel land !4r. Getz stated he could not say when the :ground breaking would be as such, however, they ! [would expect to start grading within the next twoi :or three months. I t ICmn. Hughes inquired as to what could be expected I :as far as employrnent for this area? 1 I !Mr. Getz stated for the first phase of the develod- jZ,OOO persons, depending upon the season. When ; :the second phase is completed it would run betweerf i2400 to 3500. At the blission Valley Center there; !are only two or three key personnel that are not i :local residents. I I {Cmn. Jardine asked if they contemplate building ! jany type of entertainment in this complex, f.e. i itheater? :iqr. Getz stated they dery definitely feel that : :entertainment belongs in this type of complex. I I :MR. LA MOFJTE asked hcw many specialty uni ts would i :be built in the first phase, and Mr. Getz inform- : :ed him there would be 40. I I :3r. Knott asked about the improvement of €1 Cam- i ii no Real? !The City Nanager stated El Camfno Real will be i :widened from Vista !\Jay to Chestnut Avenue by :August of 1967. iNr. Mamaux informed the Council that each member i :of the Council had received a copy of the Finan- i !cia1 Consultants report, which includes the park- ; jing lot. :Nayor Atkinson requested the City Attorney to :report on the legal documents that have been re- i jceived for consideration. e I 4 I f I t 1 I t I I < t t I I I 8 I b I I I I * I I I t I I * I I t 1 I I I tment t'hey would expect to ernploy between 1200 and; 1 I I I I * I I t I I t I I I I 8 I I I I I e I I I I I I I I I I I I I * 8 I I 8 4 r I t t 1 I I I I I I 1 1 I I I I I I I t I I I I I t I f ! I I 8 f I I ! I ! " .\ .\ % I J I t t I -1, " ' I , '\ I -3- I ', '\ ' t : of " 1 I The City Attorney stated at this time the exact i I cost of construction is not known. There have I ! been certain maximums incorporated into the agree:- ! ment, i .e. that the cost to the City will not ex-! 1 ceed $2,000,000 or $4.00 per square foot per re- ; i tail stare area. It is *+e$ +o the site of the ! i building and the maximum cost of $2,000,000. Thi f minimum building they can build is 270,000 square! i feet. The architect has been instructed to use : I a ratio of 3 to 1 for parking area, and the City i i has the right to review all plans. i The City Manager stated he felt the citizens : should know the gymnastics of this project. A i i non-profit corporation was formed for the purpose: : of financing off-street parking facilities for : I the City, and they will construct or cause to be i ! constructed a parking facility. There are eight : i members of this non-profit corporation who are i / residents of the City of Carlsbad. No member re-: : ceives a salary. The corporation will sell bonds: i to pay for the cost of construction of the park- ; i facility will be borne by the i4ay Company, NO i t bonds will be sold until the ;lay Company has been! i in operation for one quarter. Bartle and Wells, 1 : Financial Consultants for the City, in their * t i report used a ruleof thumb, showing annual sales i i of $50.00 per year per square foot of the t I ; shopping complex. On this basis the City would I i derive $320,000 a year in revenue and would be : : paying $156,000. They have used the highest I i building cost figure and the lowest revenue rate.! i ivlayor Atkinson introducted General U. I:!. Rogers, ! 1 President, and Hike Daugherty, Secretary, of the ; i non-profi t corporation. I The City Planager further stated the non-profit I : corporation is in the process of recommmding to ; ! the Council that the Council accept the agree- ! i ment as presented. I I i General bl. i!. Rogers stated he has given this : matter careful consideration and in his opinion i i the margin of gain far exceeds the possibility : ; of loss to the City. Y I : It snlas also pointed out by the City Manager the i I firm of O'Melveny and Myers has been the attorney: : on this matter and they in turn will issue their i i opinion on the bonds. 1 Cmn. Dunne asked if the bonds would be amortized?! i The Council was informed the bonds will be set i i up on a 26 year basis; however, the Financial I i callable in 15 years. I I ! I t '\ ', i Name '', 9 ,""""""""""""""-"""~""""""-~"""""""""""""~"""""~". I : Member a I 1 I I I I 1 I t 1 ing facility. The management of the parking t t I I I I I J I I I 8 ? I t t I I I * I I I I I I 1 I I 1 : Consultants feel that some of the bonds can be i I I I After further consideration, the Mayor was authorj : ized and directed to execute on behalf of the I i City of Carlsbad those certain documents entitled! I Sublease and Agreement, Grant Deed, Lease and I I : Agreement, and Escrow Instructions, reviewed by i i the Council on this date, relating to the build- ; : ing of Plaza Camino Real Shopping Center within i : the City of Carlsbad. b ,I ! I I I Dunne Nei swende Atki nson Hughes Jardi ne I I 1 I J I I I I I I I i 1 I I I I I I 1 * t t I I I ! I -4- I I I I I I I )C"""""""""""-"""""""""""""""""" 0 : '\, '8,'8\, 8\ I I I I ',, 'x, '. i Name '\, + ; of '+ '< * ' *' ' '. ', 8 ', : Member """"""""-!""""""" i Cmn. Neisnencier stated he would like to extend i : his appreciation to a71 the members of the non- i { profit corporation, the City staff and the May i 1 Company representatives. He feels this is a I I 1 great step forward and shows there is leadership! ! I in the community. * I i hyor Atkinson stated this goes far beyond what I f most of us can visualize. It is his feeling tha4 i a71 of us are going to be proud and that it will : ; benefit all in the City. This goes much deeper i i than just the convenience of a shopping center. i i Cnn. Jardine stated it would be very difficult : : to put a value on what this wiII mean to the Ci$y i of: Carlsbad. I i Cmn. Hughes stated the employment benefits, the i ; additional sales tax and property tax are only a : i few of the things that wilt benefit all the peopfe I in the City of Carlsbad. i By proper motion the meeting was adjourned at : : 8:08 P.M. L I I ! : Respectfully submitted, $ I I I I I I I I I I I I I I I I I t i I I 1 L-. /) i fl(Q2n fL?&/ F qL&/.e/Wfi i O.TARG&T E: ADA~;IS \ c -. , : Ci ty k1 erk I 1 I t I 1 I I 1 6 I I I L t I I I I 1 1 I I I s 3 I I L I I I I I t I a 8 8 I I I I I I I I I I I I i I I I I I t I I I 1 I I I I I I I I I 1 1 1 I I I 4 t I t * I I I I I I I + I I I I 1 I * I I f I I I i I I I I I t s I I $ I I I t t a 1 I I * $ I l a I I I I I I I I I I I I I I I t I I I I I I I I I I I t I t I I I I 1 I I * I I I I b 1 I I I I I I I I 1 I I I !