HomeMy WebLinkAbout2021-06-15; City Council; ; Third Annual Update on the Real Estate Strategic Plan, Wireless Communication Facilities, and acquisition of Open Space parcelsCA Review __AF___
Meeting Date: June 15, 2021
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: Third Annual Update on the Real Estate Strategic Plan, Wireless
Communication Facilities, and acquisition of Open Space parcels
District: All
Recommended Action
Receive the third annual update on the overall implementation of the adopted Real Estate
Strategic Plan, the city’s management of its Wireless Communication Facility license
agreements and acquisition of open space parcels.
Executive Summary
In October 2017, the City Council approved the Real Estate Strategic Plan (Resolution No. 2017-
200). At that time, city staff indicated that they would provide annual updates to the City
Council on the plan’s overall implementation.
This report presents the City Council with an update on the status of the plan, the city’s
management of its wireless communication facility license agreements and the acquisition of
open space parcels for the 2020 calendar year (third annual reporting period – Jan. 2020 – Dec.
2020). As detailed below, this report shows that during the reporting period:
•The city continued to carry out the strategic plan’s recommendations
•The lease agreements for all city-owned properties generated $661,323.62 in annual
revenue
•Wireless communication agreements generated $737,767 in annual revenue
•The city completed its second acquisition of open space in compliance with a 2017
lawsuit settlement agreement
Discussion
Background
The purpose of the plan was to take a more strategic approach to how the city’s 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, including addressing future city facility
needs. The city’s Real Estate Division has also been tasked with managing the city’s wireless
communication facility portfolio and with negotiating acquisition of open space parcels in
compliance with General Plan lawsuit settlement agreement established with North County
June 15, 2021 Item #8 Page 1 of 33
Advocates in 2017, which requires the city to continue to consider and evaluate properties to
acquire for open space.
Real Estate Strategic Plan
The strategic plan addresses 22 properties over a five-year planning horizon with targeted
timeframes that include:
• A plan for completing six real estate transactions that were in progress
• A one-to-three-year strategic plan for nine specific properties
• A longer-term plan for seven properties that are currently being used for city purposes
and are likely to be needed for the foreseeable future
The third annual, or 2020, update on the overall implementation of the strategic plan is
included with this staff report for the City Council’s consideration as Exhibit A. This update
covers the reporting period of January through December 2020.
Real Estate Property Leases
This third annual reporting period update addresses properties that were included in the
adopted 2017 Real Estate Strategic Plan, as well as properties that were not included:
Properties included in the Real Estate Strategic Plan
During the second annual reporting period, the city received approximately $346,648 in annual
lease revenue. Over the third annual reporting period, no new leases were executed. However,
annual lease revenue increased $163,715, to $510,363, an approximately 47% increase. The
primary source of the revenue increase was the Bob Baker Auto Group lease becoming fully
effective and the corresponding commencement of rent, as well as annual lease rate increases.
Over the next annual reporting period in calendar year 2021, the city anticipates finalizing
renegotiations for the Mira Costa lease at the Las Palmas building, which will result in additional
overall lease revenue. In addition, the city anticipates finalizing the sale of one property
(Pajama Drive), which will net approximately $245,000 in one-time revenue to the city. Staff
also anticipates issuing requests for proposals for the long-term lease of Golf Course Lots 4 and
5, and the Foussat & Mission Avenue property located in Oceanside.
Properties not included in the Real Estate Strategic Plan
The Real Estate Division manages leases on other city properties that were not included in the
Real Estate Strategic Plan. These include the Callaway Golf lease, the MAAC project lease at the
Library Learning Center and the Rey River Farms lease at the future Cannon Lake Park site.
Collectively, the city received approximately $150,960 from these three leases.
Over the next annual reporting period in calendar year 2021, the city anticipates finalizing new
leases for both the Callaway Golf and Rey River Farms properties.
Combined, the lease agreements for all city properties generated $661,323.62 in annual
revenue for the city over this third-annual reporting period. Overall, the city anticipates
combined property lease agreement revenues to increase approximately 3% over the fourth
annual reporting Period to $681,163.33, primarily generated from annual rental increases.
Wireless communication facility agreements
The city’s Real Estate Division is responsible for managing the city’s wireless communication
facility portfolio, which currently includes 14 macro facility license agreements and five small-
June 15, 2021 Item #8 Page 2 of 33
cell master license agreements. Managing the portfolio includes negotiating new licenses on
city property, renewal of existing licenses on city property, and the negotiation of new master
license agreements for small-cell within the city’s right-of-way. A detailed breakdown of the
city’s facility assets is attached as Exhibit B.
Macro wireless communication facility agreements
Over the second annual reporting period, 12 macro wireless communication facility agreements
were effective and generated annual revenues of $497,824, a $70,424 increase over 2018. In
this third annual reporting period, revenue increased from $497,824 to $505,986, a $8,162 – or
2% – in annual license revenue. During the third annual reporting period, two new macro
facility agreements were entered into. However, rent will not commence on these agreements
until those sites have been constructed and are operational.
Small-cell wireless communication facility agreements
Throughout the city, small-cell facilities may be placed on city-owned street-light poles, vendor
owned poles, telephone poles, power poles and any other location with line-of-site of personal
cellular devices. As part of this update, city staff conducted an audit of the city’s small-cell
wireless communication facilities to determine an accurate count of how many small-cell
facilities are located on city-owned poles. The results of the audit found that there is a total of
161 small-cell facilities located on city-owned poles.
The correct amount of small-cell facilities reported in 2019 should have been 133. This
discrepancy resulted from the inclusion of 53 small-cell facilities located on vendor-owned
poles in the previously reported count of 186 small-cell facilities.
In the third annual reporting period, 28 new small-cell facilities were installed, which brought
the overall number on city-owned poles to 161. Additionally, staff entered into one new small-
cell facility master license agreement, with ExteNet, bringing the total number of master license
agreements to five. ExteNet has yet to install any facilities.
During the second annual reporting period, small-cell wireless communication facility revenues
were reported to be $309,740. However, that number was based on the inclusion of 53
additional Crown Castle small-cell facilities, which are actually located on vendor-owned poles.
The city only receives rent revenue from small-cell facilities located on city-owned poles. Actual
revenue received from small-cell facilities on 131 city-owned poles in the second annual
reporting period was $205,044. Small-cell facility revenues for the third annual reporting period
totaled $231,781, a $26,737 increase in annual small-cell facility revenue, primarily due to 28
new AT&T small-cell facility licenses becoming effective in 2020.
Combined, the macro and small-cell facility agreements generated $737,767 in annual revenue
for the city over this third annual reporting period. Overall, the city anticipates revenues to
increase approximately 3% over the fourth annual reporting period to $759,900, primarily
generated from annual rental fee increases.
Open Space Acquisitions
The city’s Real Estate Division completed the acquisition of the Aura Circle property (APN 207-
100-48) for $2,070,000 during the reporting period. Aura Circle is a 15.02-acre vacant parcel,
located at the terminus of Aura Circle, north of Hillside Drive and west of Kelly Drive. The Aura
Circle property is the second acquisition of open-space the city has completed in compliance
June 15, 2021 Item #8 Page 3 of 33
with the 2017 settlement agreement with North County Advocates. The city’s acquisition of this
property became effective on March 16, 2020.
In addition, although the city purchased its first open-space acquisition property, the Paseo del
Norte Preserve, in 2019, the official transfer of the property occurred within this reporting
period, 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 wireless communication facility 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, 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 wireless communication facility portfolio and open space
purchases.
Environmental Evaluation (CEQA)
This action does not constitute a “project” within the meaning of the California Environmental
Quality Act under Public Resources Code section 21065 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 and Outreach
Public notice of this item was posted in keeping with the Ralph M. Brown Act and it was
available for public viewing and review at least 72 hours before the scheduled meeting date.
Exhibits
1. Real Estate Strategic Plan update, other properties
2. Wireless communication facility update
June 15, 2021 Item #8 Page 4 of 33
Real Estate
Strategic Plan
Annual Update
January 2020 – December 2020
June 15, 2021 Item #8 Page 5 of 33
Exhibit 1
2 City of Carlsbad
2020 Real Estate Strategic Plan Update
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. On Nov. 18,
2018, staff presented the First Annual Update (First Annual Reporting Period – Nov. 2017 to
Oct. 2018), and on Jan. 28, 2020, staff presented the second annual update (Second Reporting
Period – Nov. 2018 to Dec. 2019). The purpose of this report is to update the City Council on
the status of the Strategic Plan, the city’s management of its WCF license agreements, and
the acquisition of Open Space parcels, for the 2020 calendar year (Third Annual Reporting
Period – Jan. 2020 – Dec. 2020).
The purpose of the strategic plan was to take a more strategic approach to how 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:
June 15, 2021 Item #8 Page 6 of 33
3 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
Continue to implement and monitor the ground lease with Grand
Pacific Carlsbad, L.P. on Lot 9.
Specific
Milestones
During Reporting
Period
• Staff commenced negotiations on Lease Amendment No. 1,
related to a) reducing the amount of Phase 2 hotel rooms
from 31 rooms to 25 rooms; b) extending the additional
Sheraton building’s “outside completion date” from Aug. 31,
2022, to Dec. 21, 2026; and c) adding a provision for early
construction of Phase 2 if certain metrics are met.
Lease Start Date
Lease Term
• December 15, 2016.
• 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
Period Revenue
• Initial Annual Lease Revenue Rate: $159,965
• Annual Lease Revenue Rate/Increase: 0% increase over first 5-
years of lease term.
• Current Annual Rent: $159,965 (Year 3 of Agreement)
• Amount Received in Reporting Period: $159,965 (12 months)
June 15, 2021 Item #8 Page 7 of 33
4 City of Carlsbad
2020 Real Estate Strategic Plan Update
Village Grille - Shorehouse Kitchen
Property Shorehouse Kitchen
Size • Lot: 0.11 Acres
• Building: 1,850 Square Feet
Location 2833 State Street
Strategic Plan
Recommendation
Continue to implement and monitor the retail lease agreement
with Shorehouse Kitchen.
Specific Milestones
During Reporting
Period
• New sidewalk dining enclosure opened to use by restaurant
patrons.
Lease Start Date
Lease Term
• April 4, 2018.
• 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
Period Revenue
• Initial Annual Lease Revenue Rate: $95,000
• Annual Lease Revenue Rate/Increase: 3% increase annually
• Current Annual Rent: $101,672 (Year 3 of Agreement)
• Amount Received in Reporting Period: $101,672 (12 months)
June 15, 2021 Item #8 Page 8 of 33
5 City of Carlsbad
2020 Real Estate Strategic Plan Update
Dove Library Café - Chapters
Property Dove Library Cafe
Size Square Feet: 750
Location Dove Library
Strategic Plan
Recommendation
Staff to return to the City Council for authorization to release a
Request for Proposals (RFP) for leasing the Dove Library Café
space.
Specific Milestones
During Reporting
Period
• Due to COVID-19, Tenant Received one (1) Rent Deferral
Amendment that deferred rent for nine months from May 1,
2020 to Jan. 31, 2021.
Lease Start Date
Lease Term
• April 30, 2019
• Five (5) years, with one (1) option to extend for five (5) years.
Next Steps • Continue to monitor and manage Lease Agreement.
• Assist tenant with rent deferral process due to COVID-19.
Annual Reporting
Period Revenue
• Initial Annual Lease Revenue Rate: $14,796
• Annual Lease Revenue Rate/Increase: 0% increase
• Current Annual Rent: $14,796 (Year 2 of Agreement)
• Amount Received in Reporting Period: $2,000 (12 months)
o COVID-19 Rent Deferral Lease Amendment Received
through Jan. 31, 2021.
June 15, 2021 Item #8 Page 9 of 33
6 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
Staff to negotiate a one-year lease agreement with a nominal
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
During Reporting
Period
• Lease terminated Jan. 28, 2020. Bio, Tech, and Beyond
purchased and relocated to a new 7,200 square-foot building
in Carlsbad on Corte Del Cerdo.
Next Steps • NA
Annual Reporting
Period Revenue
• Initial Annual Lease Revenue Rate: $8,820
• Annual Lease Revenue Rate/Increase: 0% increase
• Current Annual Rent: $0.00 (Lease Terminated January 2020)
• Amount Received in Reporting Period: $0.00 (12 months)
June 15, 2021 Item #8 Page 10 of 33
7 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
• Staff received City Council Direction to Negotiate New Long-
Term Lease Agreement: January 2020.
Lease Start Date
Lease Term
• Apr. 9, 2019
• Five (5) years, with no renewal or extension options.
Next Steps • Continue negotiations for a new long-term lease agreement.
• 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: $6,000 (12 months)
June 15, 2021 Item #8 Page 11 of 33
8 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
For staff to staff continue to implement and monitor the
Community Benefit Agreement and the Poinsettia 61 project
approvals.
Specific Milestones
During Reporting
Period
• Park construction commenced in November 2020
Next Steps • Park improvements were to be completed by January 25,
2021.
• Unforeseen property conditions have delayed construction
beyond January 2021.
• Park improvements to be completed by December 2021.
Annual Reporting
Period Revenue
• Initial Annual Lease Revenue Rate: NA
• Annual Rent: NA
• Amount Received in Reporting Period: NA
June 15, 2021 Item #8 Page 12 of 33
9 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
Staff to complete an appraisal of the property to establish the
minimum asking price and list the property for sale by owner in
an “as-is’ condition.
Specific Milestones
During Reporting
Period
• Issued RFP: February 2019
• Sold Property: June 11, 2019
• Deed Recorded: July 10, 2019
Next Steps • None.
Annual Reporting
Period Revenue
• Sold property for $803,333 in July 2019, $158,333 above the
Strategic Plan’s estimate of $645,000 (April 2016).
June 15, 2021 Item #8 Page 13 of 33
10 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
Staff to issue a competitive RFP for a short-term lease that
included a right of first offer to purchase the property.
Specific Milestones
During Reporting
Period
• Bob Baker Auto Group finalized improvements and
commenced paying rent.
Lease Start Date
Lease Term
• Nov. 4, 2019
• 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
Period Revenue
• Initial Annual Lease Revenue Rate: $156,000
• Annual Lease Revenue Rate/Increase: 3% increase
• Current Annual Rent: $160,680 (Year 2 of Agreement)
• Amount Received in Reporting Period: $160,680 (12 months)
June 15, 2021 Item #8 Page 14 of 33
11 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
For staff to explore options for entering into a long-term
lease agreement for the parking lot properties with
Brookfield Properties, and to return to City Council for
review and approval of documents as required and as
appropriate.
Specific Milestones
During Reporting
Period
• Rouse Properties sold mall to Brookfield Properties.
Next Steps • Continue discussions with Brookfield Properties.
Annual Reporting
Period Revenue
• N/A
June 15, 2021 Item #8 Page 15 of 33
12 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
For staff to issue a competitive RFP for offers for a long-term
ground lease of the properties for either a hotel or class A
multi-tenant corporate commercial office building.
Specific Milestones
During Reporting
Period
• No reportable action milestones during the Annual
Reporting Period.
Next Steps • Contract with real estate broker to assist in the RFP and
leasing of the property: Fall/Winter 2021/22.
• Release RFP for long-term ground lease of Property:
Winter 2022.
• Negotiate long-term ground lease for property:
complete by end of Fall 2022.
Annual Reporting
Period Revenue
• The Plan estimated lease revenues of approximately
$86,062 per month, or $1,032,739 annually (September
2017).
June 15, 2021 Item #8 Page 16 of 33
13 City of Carlsbad
2020 Real Estate Strategic Plan Update
Pajama Drive - Oceanside Properties
Property Pajama Drive Property
Size Lot: .25 Acres
Location Pajama Drive, Oceanside, CA
Strategic Plan
Recommendation
For staff to issue a competitive RFP for offers for the sale of
the Pajama Drive Property.
Specific Milestones
During Reporting
Period
• Property re-Appraised at $220,000 on Nov. 30, 2020.
• RFP Issued Sept. 17, 2020 and closed with no responses
on Nov. 5, 2020.
• Staff thereafter received five offers to purchase.
Next Steps • City Council approved purchase and sale agreement on
May 4, 2021.
Annual Reporting
Period Revenue
• The Plan estimated city sale proceeds of approximately
$220,000 to 245,000 (September 2019 and November
2020 Appraisal).
• City is selling property for $255,000.
June 15, 2021 Item #8 Page 17 of 33
14 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
For staff to issue a competitive RFP for offers for the lease of
the Foussat & Mission Avenue Property.
Specific Milestones
During Reporting
Period
• No reportable action milestones during the Annual
Reporting Period.
Next Steps • Contract with real estate broker to assist in the RFP and
leasing property: Summer-Fall 2021.
• Release RFP to lease property: Fall/Winter 2021/22.
• Negotiate long-term ground lease for property:
complete by end of Fall 2022.
Annual Reporting
Period Revenue
• The Plan estimated city lease proceeds of approximately
$16,737 per month, or $200,842 annually (September
2017).
June 15, 2021 Item #8 Page 18 of 33
15 City of Carlsbad
2020 Real Estate Strategic Plan Update
Las Palmas
Property Las Palmas Property
Size • Lot: 2.29 Acres
• Building: 22,627 Square Feet
Location 2075 Las Palmas.
Strategic Plan
Recommendation
Staff to negotiate a rent increase with an annual minimum
rent adjustment percentage that would cover all of the 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
During Reporting
Period
• Staff and Mira Costa continued ongoing negotiations at
the property, based on City Council direction.
Next Steps • Negotiate extension of Lease Agreement.
• Continue to monitor and manage Lease Agreement.
Annual Reporting
Period Revenue
• Annual Lease Revenue Rate: $64,881
• Annual Lease Revenue Rate/Increase: 0% increase
• Current Annual Rent: $64,881
• Amount Received in Reporting Period: $64,881 (12
months)
June 15, 2021 Item #8 Page 19 of 33
16 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
Staff to retain ownership of the Calavera property until the
city explores and identifies a long-term solution that
addresses the city’s storage needs.
Specific Milestones
During Reporting
Period
• No reportable action milestones during the Annual
Reporting Period.
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting
Period Revenue
• NA
June 15, 2021 Item #8 Page 20 of 33
17 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
Staff recommended to continue to utilize the Farmers
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
During Reporting
Period
• No reportable action milestones during the Annual
Reporting Period.
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting
Period Revenue
• The Plan estimated city sale proceeds estimated to be
between $25,206,000 and $38,493,843 (December
2016).
June 15, 2021 Item #8 Page 21 of 33
18 City of Carlsbad
2020 Real Estate Strategic Plan Update
CMWD Property
Property CMWD Property
Size • Lot: 6.09 Acres
• Building(s): 18,000 square feet
Location 5950 El Camino Real
Strategic Plan
Recommendation
Staff to continue to utilize the CWMD property for its
current uses for the foreseeable future. When the CMWD
property is no longer needed due to completion of the Orion
Center, it is recommended that the city issue a competitive
RFP for lease of the property.
Specific Milestones
During Reporting
Period
• No reportable action milestones during the Annual
Reporting Period.
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting
Period Revenue
• The Plan estimated lease revenues of approximately
$31,590 per month, or $379,080 annually (September
2017).
June 15, 2021 Item #8 Page 22 of 33
19 City of Carlsbad
2020 Real Estate Strategic Plan Update
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
Recommendation
Staff to continue to utilize the Village Properties for their
current uses for the foreseeable future.
Specific Milestones
During Reporting
Period
• No reportable action milestones during the Annual
Reporting Period.
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting
Period Revenue
• NA
June 15, 2021 Item #8 Page 23 of 33
20 City of Carlsbad
2020 Real Estate Strategic Plan Update
Faraday Center
Property Faraday Administration Center
Size • Lot: 7.24 Acres
• Building: 68,000 Square Feet
Location 1635 Faraday Avenue
Strategic Plan
Recommendation
For staff to continue utilizing the Faraday Center for city
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
During Reporting
Period
• No reportable action milestones during the Annual
Reporting Period.
Next Steps • Continue to use, monitor, and manage the property for
the foreseeable future.
Annual Reporting
Period Revenue
• The Plan estimated city sale proceeds between
$9,800,050 and $17,798,950; and lease revenues of
approximately $165,240 per month, or $1,982,880
annually (September 2017).
June 15, 2021 Item #8 Page 24 of 33
21 City of Carlsbad
2020 Real Estate Strategic Plan Update
OTHER PROPERTIES NOT INCLUDED IN THE REAL ESTATE STRATEGIC PLAN
The following properties were leased at the time of Plan adoption, however, we omitted
in the Plan. These properties are now under the purview of the Real Estate Department.
Callaway Golf
Property Callaway Golf Testing Facility
Size • Lot: 0.84 Acres
Location APN: 212-270-08-00
Specific Milestones
During Reporting
Period
• Lease negotiations for a new lease agreement commenced in
September 2019 and continued throughout 2020.
Next Steps • Renegotiate new 10-year lease agreement with Callaway to
continue using property as part of their golf testing facility.
Annual Reporting
Period Revenue
• Initial Annual Lease Revenue Rate: $18,996
• Annual Lease Revenue Rate/Increase: 3.5% increase
• Current Annual Rent: $31,860 (Lease expired August 2019)
• Amount Received in Reporting Period: $31,860 (12 months)
June 15, 2021 Item #8 Page 25 of 33
22 City of Carlsbad
2020 Real Estate Strategic Plan Update
MAAC Project
Property Library Learning Center
Size • Building: 4,800 Square Feet
Location 3368 Eureka Place, Carlsbad, CA 92008
Specific Milestones
During Reporting
Period
• No reportable action milestones during the Annual Reporting
Period.
Next Steps • Lease executed June 26, 2019 and expires June 25, 2022.
Annual Reporting
Period Revenue
• Initial Annual Lease Revenue Rate: $118,124
• Annual Lease Revenue Rate/Increase: 2% increase
• Current Annual Rent: $120,486 (Year 2 of Lease)
• Amount Received in Reporting Period: $120,486 (12 months)
June 15, 2021 Item #8 Page 26 of 33
23 City of Carlsbad
2020 Real Estate Strategic Plan Update
Rey River Farms
Property Future Cannon Lake Park
Size • Lot: 3.01 Acres
Location APN: 210-090-17-00
Specific Milestones
During Reporting
Period
• NA
Next Steps • Lease expires on May 6, 2021. City staff will renegotiate new
one-year lease agreement with extension options with
tenant.
Annual Reporting
Period Revenue
• Initial Annual Lease Revenue Rate: $2,250
• Annual Lease Revenue Rate/Increase: 0% increase
• Current Annual Rent: $2,250
• Amount Received in Reporting Period: $2,250
June 15, 2021 Item #8 Page 27 of 33
24 City of Carlsbad
2020 Real Estate Strategic Plan Update
IV. Appendix
Properties Included in the Real Estate Strategic Plan
Property APN SF Acres Acquisition
Date
Acquisition
Price
Source of
Funds
Estimated
Sale Price
Estimated
Lease Price
Lot 9 137,214 3.15 1952 NA NA NA $159,965/Yr
Village Grille/ Shorehouse Kitchen
2833 State Street
203-294-02 203-294-03
5,000
0.11
1977
$118,000
General Funds
NA
$95,000/Yr 3% Annual Inc.
Dove Library Café 215-050-70 750 0.017 1999 NA General Funds NA $14,796/Yr
Bio, Tech, and Beyond
5815 El Camino Real
213-062-13
6,000
(Bldg. SF)
1.46
2002
$1,699,909
10% of Total
Price
CFD No. 1
NA
$998360/Yr
($1.38/SF/Mo)
Bauer Lumber/
New Village Arts
203-295-01
203-295-02
10,019
0.23
1997
$498,944
Redevelopment
Tax Bonds
$1,376,310
$6,000/Yr
Buena Vista Reservoir
156-200-16
119,339
2.74
1958
Unknown
General Fund
NA
NA
Old Fire Station #3
3701 Catalina Drive
167-154-20 9,200 0.21 1966 $94,850 General Fund $803,333 NA
Hawthorne
2065 Camino Vida Roble
213-061-28 114,409
*5,000
(Bldg. SF)
2.63 2010 $2,487,000 CFD No. 1 $2,250,000
To
$3,100,000
$156,000/Yr
The Shoppes
at Carlsbad
Parking Lot Properties
(Rouse Properties)
156-301-06
156-301-10
156-301-11
156-302-24
165-120-59
69,260
63,162
1,033,679
39,204
1,273,259
1.58
1.45
23.73
0.90
29.23
1969
1969
1969
1969
1992
$1,535,000 1969 Parking
Revenue Bonds
(paid off in
1995)
Unknown
Unknown
Golf Course Lots 4 & 5
College Blvd.
& Palomar Point Way
212-270-04
212-270-05
217,800
304,920
18.51
2010
$4,229,417
General Fund
Up to
$15,109,875
Up to
$1,032,739/Yr
Oceanside Properties
Foussat & Mission
Pajama Drive
160-550-01
149-070-47
119,790
10,891
2.75
0.25
1952
1952
Unknown
Unknown
NA
NA
Up to
$3,012,626
$245,000
Up to
$200,842/Yr
NA
Las Palmas
2075 Las Palmas Drive
213-061-19
22,627
2.29
1987
$1,602,000
PFF
$4,600,479
$659,803/Yr
Calavera Waste Water
Facility
167-101-09 198,198 4.55 1982 Unknown Unknown NA NA
Farmers Property
5815 El Camino Real
213-062-12
(Building)
213-062-13 (Claims
Center)
213-062-14
(Land)
588,496
*133,922 (Bldg. SF)
13.51 2002 $15,730,000 CFD No. 1 $25,206,000
To
$38,493,843 *As-Is
vs.
Renovated
NA
CMWD Property
5950 El Camino Real
209-050-19 265,280 6.09 1973 $18,000 Enterprise Fund $5,500,000 Up to $379,080/Yr
June 15, 2021 Item #8 Page 28 of 33
25 City of Carlsbad
2020 Real Estate Strategic Plan Update
Property APN SF Acres Acquisition
Date
Acquisition
Price
Source of
Funds
Estimated
Sale Price
Estimated
Lease Price
Village Properties
State and Grand
Parking Lot
2829-2897 State St. South State Street
Parking Lot
3045 State Street
Roosevelt Street
Parking Lots
2922, 2936-2944
Roosevelt St.
2992 Roosevelt St.
Oak Yard
405 Oak St.
203-294-02
203-294-03
203-296-06 203-304-02 203-304-05 203-296-06 204-010-05 204-010-06
5,000
16,117 14,375 10,890
39,204
0.11
.37 0.33 0.25 0.90
1977
2009 1985 1995 1965
$1,260,000
$1,150,000
$990,000
$765,000
Unknown
General Fund
Parking In-Lieu Redevelopment Tax Bonds Redevelopment Tax Bonds General Fund
$1,376,310
$2,213,992 $1,974,694 $1,495,959 $5,385,453
NA
NA
NA
NA
NA
Faraday Center
1635 Faraday Avenue
212-130-31
315,810
7.25
2001
$9,100,000
PFF
$11,667,500
$1,982,880/Yr
June 15, 2021 Item #8 Page 29 of 33
26 City of Carlsbad
2020 Real Estate Strategic Plan Update
V. Appendix
Other Properties Not Included in the Real Estate Strategic Plan
Callaway Golf Test
Facility
212-270-08 36,590 0.84 2010 $4,229,417
(portion)
General Fund NA $31,860
MAAC Project
3368 Eureka Place
205-112-37 4,800 0.11 2004 Unknown General Fund NA $118,124
Rey River Farms
Cannon road
210-090-17 131,116 3.01 1976 Unknown General Fund NA $2,500
June 15, 2021 Item #8 Page 30 of 33
Wireless
Communication
Facility
Annual Update
January 2020 – December 2020
June 15, 2021 Item #8 Page 31 of 33
Exhibit 2
2 City of Carlsbad
2020 WCF Update
Macro Wireless Communications Facilities (WCF) Revenue
Annual Reporting Period (January 2020-December 2020)
Carrier Location License Term
Beginning
License
Term
Expiration
Second
Annual Rent
Reporting
Period
Rental Rate
Third Annual
Rent
Reporting
Period
Rental Rate
Minimum
Annual Rent
Increase
1) Sprint
Safety Center 11/6/2006 5/23/2022 $46,691 $47,482 CPI
2) Sprint Utilities
Safety Center 11/6/2006 5/23/2022 $6,755 $7,277 NA
3) Sprint Calavera Hills
Comm. Park
2/24/2004 11/19/2022 $50,130 $51,792 3%
4) Sprint/Crown
Castle
Ellery
Reservoir
8/19/2016 8/18/2026 $47,426 $49,647 4%
5) Crown Castle* Robertson
Ranch
7/28/2020 7/27/2023 $0.00 $10,000 3%
6) T-Mobile/Crown
Castle
Calavera Hills
Comm. Park
04/12/2019 4/11/2029 $46,929 $46,928 4%
7) Verizon Squires Dam 6/14/2017 3/2/2020 $47,618 $49,184 3%
8) Verizon** La Costa High
Reservoir
2/26/2020 2/25/2030 $60,792 $60,792 0%
9) Verizon Calavera Hills
Comm. Park
8/1/2014 7/2/2023 $49,046 $54,617 3%
10) Verizon Twin D
Water Tanks
12/17/2016 12/16/2026 $45,769 $43,637 2%
11) AT&T Twin D
Water Tanks
8/15/2016 8/14/2026 $48,929 $50,851 4%
12) AT&T*** The
Crossings
7/1/2018 6/30/2028 $47,739 $33,738 4%
13) AT&T Calavera Hills
Comm. Park
6/11/2020 6/10/2030 $0.00 $0.00 3%
14) San Diego County
Regional
Communication
System
Ellery
Reservoir
4/13/2017 4/12/2037 $0.00 $0.00 NA
Annual Reporting Period Total Revenue: $505,986
• * = new WCF Macro Agreement
• ** = New WCF Macro Agreement for Existing Facilities
• *** = Any rental payments not matching rental rates are due to some rental payments occurring outside this Third
Annual Reporting Period. All Tenants are reasonably current in their rental payments at this time.
June 15, 2021 Item #8 Page 32 of 33
3 City of Carlsbad
2020 WCF Update
Small-Cell WCF Master License Agreements
Annual Reporting Period (January 2020 – December 2020)
Negotiated new WCF Micro Master License Agreements
• ExteNet – Small- Cell (0 new WCFs to date)
Carrier Facilities Second Reporting
Period Revolving Fees Collected
Second Reporting
Period Total Revenue Crown Castle 133 $213,225 $213,225 Mobilitie 0 $0 $0 AT&T 28 $18,556 $18,556 Verizon Wireless 0 $0 $0 ExteNet (New) 0 $0 $0 Annual Reporting Period Total Revenue: $231,781
June 15, 2021 Item #8 Page 33 of 33
Annual Update on the Real Estate Strategic Plan
and
Wireless Communication Facilities
and
Open Space Acquisitions
June 15, 2021
Curtis M. Jackson, Real Estate Manager
•Third annual update on:
•The Real Estate Strategic Plan
•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
•Third annual update covers Jan. 2020 through Dec. 2020
•Other properties not in 2017 Strategic Plan
Reporting Period Highlights•Lot 9 Lease Amendment (Grand Pacific)
•New Village Arts: New Lease negotiations commenced
•Hawthorne Property/Bob Baker Auto Group Lease: Lease effective
•Pajama Drive: listed for sale
Revenue During Reporting Period
•Properties Listed in the Strategic Plan
•Lease Revenue:Increased from $346,648 to $510,363 (+47%)
•Other Properties Not Included in Strategic Plan
•Lease Revenue: $150,960
•Combined:$661,324
2021 Reporting Period Projected Revenue
•Projected 2021 lease revenue: $681,163 (+3%)
•Projected 2021 one-time revenue:to $255,000
Wireless Communication Facilities (WCFs)•Macro WCFs:
•Existing Licenses:14 total License Agreements
•Micro WCFs (Small Cell):
•5 Existing Master License Agreements
•Crown Castle,Mobilitie,AT&T,Verizon Wireless ,and ExteNet (new)
•161 Facilities
Combined WCF Revenue During Reporting Period
•2020 Revenue: $737,767
•Projected 2021: $759,900 (+3%)
Open Space Acquisition Highlights
•Paseo Del Norte Preserve
•1.31 acres; $94,100
•Closed Escrow:Jan. 6,2020
•Aura Circle
•15.02 acres; $2,070,000
•Closed Escrow:March 16,2020
•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 2021 Annual Reporting Period.
Next Steps