HomeMy WebLinkAbout2009-07-07; Housing & Redevelopment Commission; 19886; Property acquisition on State St and Oak AveCITY OF CARLSBAD AND
HOUSING AND REDEVELOPMENT COMMISSION
JOINT MEETING AGENDA BILL
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AB# 19,886
MTG. 7/7/09
DEPT. HIRED
ACQUISITION OF PROPERTY
2829-2833 STATE STREET AND 405 OAK AVENUE
7^^DEPT. HD.L/T
CITY MGR/r-y
2009-175 . APPROVING certain actions and
RECOMMENDED ACTIONS:
That the City Council ADOPT Resolution No.
financing related to the Carlsbad Redevelopment Agency's acquisition of City-owned property located at
2829-2833 State Street and 405 Oak Avenue for redevelopment purposes.
That the Housing and Redevelopment Commission ADOPT Resolution No. 473 APPROVING
certain actions and appropriating funds related to the Carlsbad Redevelopment Agency's acquisition of
City-owned property located 2829-2833 State Street and 405 Oak Avenue for the purposes of property
redevelopment, area revitalization, blight elimination and economic development, and authorizing the
Secretary of the Carlsbad Redevelopment Agency to execute the Certificate of Acceptance of the
Deed for the purchase of the City-owned properties located at 2829-2833 State Street and 405 Oak
Avenue for redevelopment purposes.
ITEM EXPLANATION:
The Housing and Redevelopment Commission previously authorized the Housing and Redevelopment
Director to prepare the appropriate documents required for the Carlsbad Redevelopment Agency to
purchase the subject property from the City of Carlsbad for programs and/or projects to eliminate blight
or blighting influences and/or to implement economic development activities for continued
redevelopment of the Village Area. The City Council also previously agreed to sell said property to the
Carlsbad Redevelopment Agency for the noted purposes. After completing an assessment of
commercial property values in the Village Area, Agency and City staff have agreed to a purchase price
of $1,260,000 for the State Street properties and $3,100,000 for the Oak Avenue properties. Staff is
recommending that the City Council and the Housing and Redevelopment Commission take appropriate
actions to authorize sale of the subject property by the City of Carlsbad and purchase by the Carlsbad
Redevelopment Agency with all of the individual actions described below, including appropriation of the
required funding.
Consistency with the Goals and Objectives of the Village Master Plan and Design Manual.
The Village Master Plan and Design Manual indicates that one of the goals for the Village
Redevelopment Area is to "establish Carlsbad Village as a Quality Shopping, Working and Living
Environment." The Agency intends to use the subject properties to create additional commercial and
arts, culture and entertainment opportunities to further enhance the redevelopment and/or commercial
revitalization of the Village Area. The properties are all located within the Village Redevelopment Area,
DEPARTMENT CONTACT: Debbie Fountain 760-434-2935 debbie.fountain@carlsbadca.gov
FOR CITY CLERKS USE ONLY,
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
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D
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CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN O
RETURNED TO STAFF D
OTHER - SEE MINUTES D
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and are within easy walking distance of many of the local residents, service facilities, retail locations,
mass transit and other amenities offered within the Redevelopment Area. The provision of additional
opportunities for the development of new commercial and/or arts, culture and entertainment
businesses/services will enable the Agency to accomplish the goal of creating a Quality Shopping,
Working and Living Environment, and is therefore consistent with the Goals and Objectives of the
Village Master Plan and Design Manual.
Also, the main objective of any Redevelopment Project Area is to eliminate blight and blighting
influences that presently exist in the project area. Although physical blight is not a specific concern for
the proposed properties, economic blight is represented due to underutilization of the properties for
commercial opportunities which can greatly enhance the business environment within the Village.
Agency ownership of the subject properties will allow for implementation of economic development
opportunities through enhancement of existing commercial businesses and the addition of arts, culture
and entertainment businesses which will create more enhanced business diversity within the Village.
The Carlsbad Redevelopment Agency's 2005-2009 Redevelopment Implementation Strategy for the
Village Area includes economic development goals and expenditure of funds for related costs, which
include acquisition of property, if appropriate and necessary. Therefore, the acquisition of said
properties is consistent with the Redevelopment Implementation Strategy for the Village Area. At this
time, staff is proposing that the Redevelopment Agency retain ownership of the subject properties. If so
desired, at a later date, a decision may be made to allow a private developer or developers to lease the
property from the Agency to develop projects and/or programs which will accomplish the economic
development goals set forth above.
Consistency with Village Redevelopment Plan
The Village Redevelopment Plan allows for the
the Carlsbad Redevelopment Agency, to acquire all
but does not compel the acquisition. The Commission
the absence of the public agency's consent. The C
subject properties to the Commission.
General Plan Consistency:
civic and cultural functions while retaining the villag
for the Village as set forth in the General Plan is "to
Housing and Redevelopment Commission, on behalf of
real property located within the Village project area,
however, may not acquire publicly owned land in
ity of Carlsbad has previously consented to sell the
The City's General Plan includes a Goal for the Village Redevelopment Area, which states that the City
"preserves, enhances, and maintains the Village ss a place for living, working, shopping, recreation,
e atmosphere and pedestrian scale." The objective
implement the Redevelopment Plan by developing a
comprehensive plan to address the unique residential and commercial needs of this segment of the
community." Purchase of the subject properties is consistent with the General Plan because the long
range plan for the properties will result in new economic development near the existing Commuter Rail
Station, as well as within the core Village Redevelopment Area which is in close proximity to other
businesses and residential which will greatly benefit by the increased commercial, art, culture and
entertainment amenities and diverse opportunities.
The Carlsbad Planning Commission adopted Resolution No. 1569 on November 28, 1979 indicating
that the Village Redevelopment Plan, which includes acquisition of property within the project area by
the Commission, conformed to and was consistent with the City's General Plan. Therefore, the
proposed acquisition has been previously determined by the Planning Commission to be consistent with
the City's General Plan.
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FISCAL IMPACT:
The negotiated price for the State Street properties is $1,260,000 and for the Oak Avenue properties is
$3,100,000. With fees, total acquisition costs are estimated to be $4,365,000. The estimated acquisition
cost of $4,365,000 is included as part of the $14.4 million previously approved by the City Council. The
properties are being purchased with the consent of the City of Carlsbad. The Village Operations Fund
has an existing cash balance of approximately $4.8 million. Because the Agency has other
redevelopment project and/or program expenses which will require funding from the cash balance, staff
is recommending that the acquisition be financed with $2.5 million in cash from the Agency. The
remaining cost of the acquisition, approximately $1,865,000, will be paid overtime (in the form of a loan
from the City to the Agency which must be repaid with interest by no later than July, 2019). Adequate
funding will be available from future tax increment revenue for the Commission/Agency to repay the
noted acquisition loan from the City. The noted cash funds will be released to the City upon execution
of the Certificate of Acceptance for the Deed by the City Clerk on behalf of the Housing and
Redevelopment Commission.
ENVIRONMENTAL IMPACT:
The action to acquire the subject property is exempt from environmental review under CEQA. Initially,
the acquisition will result in a continuation of an existing facility involving no expansion of use and is
therefore exempt from environmental review pursuant to Section 15301 of the State CEQA Guidelines.
However, any future development proposed for the site will require separate environmental review
under CEQA at a later date.
EXHIBITS:
1. City Council Resolution No. 2009-175
2. Housing and Redevelopment Commission Resolution No. 473
3. Agreement for Purchase and Sale of Real Property between City of Carlsbad and the Carlsbad
Redevelopment Agency
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2 CITY COUNCIL RESOLUTION 2009-175
3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
4 CARLSBAD, CALIFORNIA, APPROVING CERTAIN ACTIONS AND
5 FINANCING FOR ACQUISITION OF CITY-OWNED PROPERTY AT
2829-2833 STATE STREET AND 405 OAK AVENUE BY THE
6 REDEVELOPMENT AGENCY OF THE CITY OF CARLSBAD FOR
REDEVELOPMENT PURPOSES
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WHEREAS, the City Council and Housing and Redevelopment Commission previously
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authorized City and Redevelopment Agency Staff to enter into negotiations and execute a
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contract for the City to sell and the Agency to purchase properties at 2829-2833 State Street and
11 405 Oak Avenue for the purposes of property redevelopment, area revitalization, blight
12 elimination and economic development; and
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WHEREAS, City and Redevelopment Agency Staff have completed negotiations for the
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City to sell and the Agency to purchase the properties at 2829-2833 State Street and 405 Oak
15 Avenue, under no threat of condemnation and with the consent of the City of Carlsbad at a fair
16 market value, for the purposes of redevelopment as set forth above; and
17 WHEREAS, the Planning Commission adopted Resolution No. 1569 on November 28,
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1979 approving a determination that the Village Redevelopment Plan is consistent with the
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General Plan, and said Village Redevelopment Plan allows for the sale of said properties by the
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City Council, on behalf of the City of Carlsbad, and purchase of said properties by the Housing
21 and Redevelopment Commission, on behalf of the Carlsbad Redevelopment Agency, which sale
22 and acquisition has also therefore been determined to be consistent with the General Plan; and
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WHEREAS, based on the facts presented to the City Council, the Council has
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determined that the sale of the City-owned properties to the Commission, on behalf of the
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Carlsbad Redevelopment Agency, is consistent with the goals and objectives of the Village
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Redevelopment Plan and of benefit to the project area; and
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1 WHEREAS, the Commission, on behalf of the Agency, will provide a cash payment of
2 approximately $2,500,000 to the City for purchase of said properties upon acceptance of the
3 Deed which will transfer ownership from the City to the Agency; and,
4 WHEREAS, the Commission, on behalf of the Agency, has requested a loan from the
5 City which will allow the Agency to make payments over time with interest on the remaining
6 acquisition cost of approximately $ 1,865,000 with a final payment made by the Agency no later
7 than July, 2019; and,
8 WHEREAS, per Section 15301 of the State CEQA Guidelines, the sale and acquisition
9 of the property is exempt from environmental review under CEQA because the sale and
10 acquisition will result in a continuation of an existing facility involving no expansion of use and
11 is therefore exempt from environmental review, and any future development for the site will
12 require separate environmental review.
13 NOW, THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City
14 of Carlsbad, as follows:
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1. The above recitations are true and correct.
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2. The City Council previously provided authorization for the negotiation of a purchase
1 o agreement with the Housing and Redevelopment Commission, on behalf of the Carlsbad
Redevelopment Agency, for the sale of the City-owned properties at 2829-2833 State
19 Street and 405 Oak Avenue, within the Village Redevelopment Area, and for purchase by
the Commission for redevelopment purposes.
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21 3. The City Council hereby APPROVES the purchase agreement attached as Exhibit 3 and
incorporated herein by reference which authorizes the sale of City-owned properties at
22 2829-2833 State Street and 405 Oak Avenue to the Carlsbad Redevelopment Agency for
redevelopment purposes in the total amount of Four Million Three Hundred Sixty
Thousand dollars ($4,360,000) for the purposes of property redevelopment, area
24 revitalization, blight elimination and economic development, subject to all terms and
conditions set forth in the purchase agreement and related escrow instructions, if
25 applicable.
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1 4. The Finance Director is hereby authorized to accept a transfer of a total of Two Million
Five Hundred Thousand dollars ($2,500,000) from the cash balance of the Village
2 Redevelopment Operations Fund to the General Fund for partial payment by the
Commission, on behalf of the Carlsbad Redevelopment Agency, for said acquisition costs
of the subject City-owned properties.
4 5. The Finance Director is hereby authorized to accept principal and interest payments over
5 time from the Commission, on behalf of the Carlsbad Redevelopment Agency, for the
remaining acquisition costs of approximately One Million Eight Hundred Sixty Five
6 Thousand dollars ($1,865,000), subject to the terms and conditions set forth in the
previously approved Reimbursement and Debt Repayment Schedule Agreements, as
7 amended, between the Council and the Commission.
o0 6. The City Council authorizes the Mayor to execute the subject purchase agreement, and
„ the City Manager to execute all other documents required for the City to sell said
property to the Housing and Redevelopment Commission, on behalf of the
Carlsbad Redevelopment Agency, as deemed appropriate and subject to prior approval of
the City Attorney.
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7. The City Council authorizes the Mayor to execute the Deed for subject property to
12 acknowledge the transfer of property ownership from the City to the Agency, upon
preparation and subject to prior approval of the City Attorney.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad City Council and Carlsbad Housing and Redevelopment Commission held on
the 7th day of July, 2009, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Packard and Blackburn.
NOES: None.
ABSENT: Council Member Hall.
ATTEST:
<LU-*-~,
L6T^RA/Nt M. VtfCto'D, City Clerk 0
7SEAL)(J U
i
2 HOUSING AND REDEVELOPMENT RESOLUTION NO. 473
3
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT
4 COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA,
APPROVING CERTAIN ACTIONS AND FINANCING, AND
5 APPROPRIATING FUNDING FOR ACQUISITION OF PROPERTIES
AT 2829-2833 STATE STREET AND 405 OAK AVENUE BY THE
REDEVELOPMENT AGENCY OF THE CITY OF CARLSBAD FOR
7 REDEVELOPMENT PURPOSES
WHEREAS, the Redevelopment Agency of the City of Carlsbad, hereinafter referred to
as "Agency", is a Community Redevelopment Agency organized and existing under the
Community Redevelopment law, health and Safety Code Section 33000, et. Seq., hereinafter
referred to as the "Act"; and
12 WHEREAS, the Agency is authorized to implement the Redevelopment Plan for the
Carlsbad Village Redevelopment project Area; and
14 WHEREAS, the Housing and Redevelopment Commission, previously authorized
Redevelopment Agency Staff to enter into negotiations with City of Carlsbad staff to execute a
contract to purchase City-owned properties at 2829-2833 State Street and 405 Oak Avenue for
1 7 the purposes of property redevelopment, area revitalization, blight elimination and economic
development; and
WHEREAS, Redevelopment Agency and City Staff have completed negotiations for the
20 City to sell and the Commission, on behalf of the Agency, to acquire the properties at 2829-
2833 State Street and 405 Oak Avenue, under no threat of condemnation and with the consent of
22 the City at a fair market value, for redevelopment purposes as set forth above; and
23 WHEREAS, based on the facts presented to the Commission, the Commission has
24 determined that the acquisition of the subject property is consistent with the goals and objectives
25 of the Carlsbad Village Redevelopment Plan, the Village Master Plan and Design Manual, and
the 2005 - 2009 Village Redevelopment Area Implementation Plan; and
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1 WHEREAS, per Section 15301 of the State CEQA Guidelines, the acquisition of the
2 property is exempt from environmental review under CEQA because the acquisition will result
3 in a continuation of an existing facility involving no expansion of use and is therefore exempt
4 from environmental review, and any further development proposed at a later date will require
5 separate environmental review under CEQA before proceeding.
6
7 NOW, THEREFORE, BE IT HEREBY RESOLVED, by the Housing and
8 Redevelopment Commission of the City of Carlsbad, as follows:
9n
1. The above recitations are true and correct.
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2. The Housing and Redevelopment Commission previously provided authorization for the
, 2 negotiation of a purchase agreement with the City of Carlsbad for the properties at 2829-
2833 State Street and 405 Oak Avenue for redevelopment purposes.
13
3. The Housing and Redevelopment Commission hereby APPROVES the purchase
14 agreement attached as Exhibit 3 and incorporated herein by reference which authorizes
the sale of City-owned properties at 2829-2833 State Street and 405 Oak Avenue to the
Carlsbad Redevelopment Agency for redevelopment purposes in the total amount of Four
Million Three Hundred Sixty Thousand dollars ($4,360,000) for the purposes of property
redevelopment, area revitalization, blight elimination and economic development, subject
to all terms and conditions set forth in the purchase agreement and related escrow
instructions, if applicable.
18"
19 4. The Finance Director is hereby authorized to transfer a total of Two Million Five
Hundred Thousand dollars ($2,500,000) from the cash balance of the Village
20 Redevelopment Operations Fund to the City's General Fund for partial payment by the
Commission, on behalf of the Carlsbad Redevelopment Agency, for said acquisition costs
of the subject City-owned properties.
22
23 5. The Housing and Redevelopment Commission, on behalf of the Carlsbad Redevelopment
Agency, does hereby accept a loan from the City for the remaining property acquisition
24 costs of approximately One Million Eight Hundred Sixty Five Thousand dollars
($1,865,000), subject to the terms and conditions set forth in the previously approved
25 Reimbursement and Debt Repayment Schedule Agreements, as amended, between the
Council and Commission.
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1 6. The Finance director is hereby authorized to make the loan principal and interest
payments over time for the Commission, on behalf of the Carlsbad Redevelopment
2 Agency, through a transfer of said funds from the Village Redevelopment Operations
Fund to the City's General Fund, as appropriate and as redevelopment tax increment
funds are available for said payments.
4
7. The Housing and Redevelopment Commission authorizes the Commission Chairman to
5 execute the subject purchase agreement, and the Executive Director of the Carlsbad
Redevelopment Agency to execute all acquisition documents as deemed appropriate and
6 subject to prior approval of the City Attorney, who serves as legal counsel for the
Commission.
7
8. The Housing and Redevelopment Commission authorizes the Secretary of the
° Commission to execute the Certificate of Acceptance of the Deed for the subject
property, on behalf of the Redevelopment Agency and subject to prior approval of the
General Counsel.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Housing and Redevelopment Commission and Carlsbad City Council held on
the 7th day of July, 2009, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Packard and Blackburn.
NOES: None.
ABSENT: Council Member Hall.
)E A LEWIS, Chairman
ATTEST:
EXHIBIT 3
AGREEMENT FOR PURCHASE AND SALE OF
REAL PROPERTY BETWEEN THE CITY OF CARLSBAD AND THE
CARLSBAD REDEVELOPMENT AGENCY
THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY
AND ESCROW INSTRUCTIONS (the "Agreement") is made this *£**- day of
<^>^\jJL^ , 2009, by and between the City of Carlsbad, a municipal corporation of
the Sfcte ofjCalifornia ("Seller"), and the Carlsbad Redevelopment Agency, a body
corporate and politic ("Buyer").
RECITALS
WHEREAS, Seller is the owner of certain real properties in the City of Carlsbad,
State of California, ("the Properties"). The Properties are located in the Village
Redevelopment Area at 2829 - 2833 State Street, APN: 203-294-02 through 203-294-06;
and 405 Oak Avenue, APN: 204-010-05 and 06; and
WHEREAS, Buyer desires to purchase the Properties owned by the City for use
in removing blight and/or blighting influences and/or for economic development activity
in the redevelopment of the Village area; and
WHEREAS, Seller desires to sell the Properties to Buyer for that purpose.
NOW, THEREFORE, the parties hereto agree as follows:
TERMS AND CONDITIONS
1. SALE. For good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Seller agrees to sell and Buyer agrees to
purchase from Seller the Properties, together with all improvements thereon, upon the
terms and conditions contained in this Agreement.
2. PURCHASE PRICE. The purchase price for the Properties shall
be One Million Two Hundred Sixty Thousand Dollars ($1,260,000) for the State Street
properties and Three Million One Hundred Thousand Dollars ($3,100,000) for the Oak
Avenue property for a total acquisition cost of Four Million Three Hundred Sixty
Thousand Dollars ($4,360,000) for said properties.
3. PURCHASE TERMS. The Purchase Price shall be paid by Buyer to
Seller in full prior to July 21, 2009. Upon transfer of the purchase price to the City's
account, Buyer shall receive grant deeds from Seller for the Properties.
4. CONDITIONS OF PURCHASE. The purchase of the Properties shall
be subject to the following conditions:
A. The purchase of the property located at 2833 State Street, APN:
203-294-06 shall be subject to the existing lease expiring April 15,
2010, between the City of Carlsbad as Lessor and Rosa H.
Hernandez d/b/a the Village Grille as Lessee.
B. The purchase of the property located at 405 Oak Avenue, APN:
204-010-05 and 06 shall be subject to the current occupancy of the
City of Carlsbad's Public Works Maintenance and Operations
Department for its administrative offices and service yard. The
City of Carlsbad shall be allowed to continue to occupy the
property until such time as Buyer gives notice that it requires that
the property be vacated to further its redevelopment purposes.
C. Seller will file the grant deeds for the Properties with the County
Recorder's Office upon their execution and payment of the
purchase price.
5. REPRESENTATIONS AND WARRANTIES.
A. Property Purchased "As-Is". Buyer acknowledges that it has inspected the
Properties and investigated their physical characteristics and conditions, and hereby
waives any and all objections to the physical characteristics and conditions of the
Properties which would be disclosed by such inspection. Buyer acknowledges that
neither Seller nor any of its officials, employees, agents, or representatives has made any
representations, warranties or agreements to or with Buyer on behalf of Seller as to any
matters concerning the Properties, the present use thereof, or the suitability of Buyer's
intended use of the Properties.
6. POSSESSION. Possession of the Properties not currently occupied
shall be delivered to Buyer upon close of Escrow.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement of Purchase and Sale
of Real Property as of the date set forth above.
CITY OF CARLSBAD, a Municipal
Corporate
Date:200^
DATE:
M. WOOD, CityCllerk
body
REDEVELOPMENT AGENCY, a
te and politic
'ESTABLISHED';
1970 i
APPROVED AS TO FORM:
RONALD R^BALL, General Counsel
Assistant GeneraTCtJunsel