HomeMy WebLinkAbout2013-11-05; Municipal Water District; Minutes (5)MINUTES
MEETING OF: THE CITY OF CARLSBAD MUNICIPAL WATER DISTRICT
BOARD OF DIRECTORS, PUBUC FINANCING AUTHORITY
BOARD AND CITY COUNCIL
(Joint Special Meeting)
DATE OF MEETING: November 5,2013
TIME OF MEETING: 6:00 P.M.
PLACE OF MEETING: City Council Chamber, 1200 Carlsbad Village Drive, Carlsbad
CALL TO ORDER: President/Chairman/Mayor Hall called the Meeting to order at 7:47 p.m.
ROLL CALL was taken by Secretary/City Clerk, as follows:
Present: Board/Council Members Hall, Packard, Wood, Blackburn, Douglas.
Absent: None.
APPROVAL OF MINUTES:
On a motion by Vice President/Vice Chairman/Mayor Pro Tem Packard, the minutes ofthe
following meeting were approved as presented.
Minutes ofthe Joint Special Meeting held July 23, 2013 (Public Financing Authority Board only).
DEPARTMENTAL AND EXECUTIVE DIRECTOR REPORT:
16. AB #21.414 - AUTHORIZE EXCLUSIVE NEGOTIATIONS FOR THE GROUND LEASE OF THE
PROPERTY KNOWN AS THE CROSSINGS AT CARLSBAD WEST VIEW LOT 9.
Board Member/Council Member Douglas recused herself from the meeting due to a potential
conflict of interest and left the dias at 6:49 p.m.
Administrative Services Director Chuck McBride and Community and Economic Development
Director Kathy Dodson gave the staff report and PowerPoint presentation (on file in the office
ofthe City Clerk).
Casey Kinslow, Chief Financial Officer, the Irving Group, outlined assumptions from
independent research. Mr. Kinslow covered proposed construction financing, developing the
model and delivery ofthe project. His summary was that either party, Legoland or Grand
Pacific Resorts, would be a very good partner with the City.
November 5, 2013 City of Carlsbad Municipal Water District Board of Directors, Public Financing Authority Board Page 2
and City Council Joint Special Meeting
Michael Lyon, Partner, Procopio Law Firm, gave an overview regarding the complexities and
attributes of each project, legal aspects, and possible risks involved in ground lease
transactions, duration ofthe lease, brand franchise agreements, financing from a legal
standpoint having several negotiating parties, and reversion rights.
Staff and Mr. Lyon responded to questions from Boards/Council regarding the principals of
reversion, complexities of negotiation and strength ofthe Cit/s negotiating position.
Legoland General Manager Peter Ronchetti gave a PowerPoint presentation regarding the
Adventure Lodge proposal (on file in the office ofthe City Clerk).
Grand Pacific Resorts Co-President Tim Stripe gave a PowerPoint presentation regarding their
proposal to expand the Westin Hotel brand (on file in the office ofthe City Clerk).
The following people spoke in support ofthe Grand Pacific Resorts proposal and gave brief
PowerPoint presentations (on file in the office ofthe City Clerk):
Tim Shinkle, Chief Financial Officer, Grand Pacific Resorts
Rick Mansur, President/CEO, Azul Hospitality Group
Randi Coopersmith, Principal, Latitude 33 Planning and Engineering
Bruce Baltin, Senior Vice President, PKF Financial Advisors
Suzanne Mellen, Senior Managing Director, Hotel Valuation Services
Karen Johnson, President, Pinnacle Advisory Group, spoke in support ofthe Legoland proposal
and gave a brief PowerPoint presentation (on file in the office ofthe City Clerk).
The following people spoke in support ofthe Legoland proposal:
John Robinson, Chief Executive Officer, California Attractions and Parks Association
Stephanie Mullen, Carlsbad
Geoff Waddell, Hotel Manager, Marriott Residence Inn and Marriott Courtyard, Carlsbad
The following people spoke in support ofthe Grand Pacific Resorts proposal:
Greg Nelson, Carlsbad
Don Schempp, Carlsbad
Torie Hardee
Fred Arbuckle, Rancho Sante Fe
Mark Reiser, Carlsbad
Linda Geldner, Carlsbad, thanked staff forthe excellent job analyzing the proposals and
suggested minimizing the effects ofthe view of Legoland, if approved.
Discussion ensued regarding the proposed construction schedules, opening dates, California
Coastal Commission approval, 'cannibalization' of existing hotel rooms, appearance, branding
and compatibility of Legoland with the Sheraton.
November 5, 2013 City of Carlsbad Municipal Water District Board of Directors, Public Financing Authority Board
and City Council Joint Special Meeting
Page 3
ACTION:
AYES:
NOES:
ABSENT:
ACTION:
AYES:
NOES:
ABSENT:
ACTION:
AYES:
NOES:
ABSENT:
On a motion by Vice President Packard, Board adopted
RESOLUTION NO. 1483. as amended, authorizing the Carlsbad
Public Financing Authority to enter into exclusive negotiations
with Grand Pacific Resorts for the ground lease ofthe property
known as The Crossings at Carlsbad West View Lot 9 and to act on
behalf of the Carlsbad Municipal Water District in all future
decisions and actions related to the ground lease ofthe property.
Packard, Wood and Blackburn.
Hall.
Douglas.
On a motion by Vice Chairman Packard, Board adopted
RESOLUTION NO. 65. as amended, recommending that its two
member agencies authorize the Carlsbad Public Financing
Authority to enter into exclusive negotiations with Grand Pacific
Resorts for the ground lease ofthe property known as the
Crossings at Carlsbad West View Lot 9 and authorizing the City of
Carlsbad to negotiate with Grand Pacific Resorts for the ground
lease ofthe property in its capacity as lease manager for the
Carlsbad Public Financing Authority.
Packard, Wood and Blackburn.
Hall.
Douglas.
On a motion by Mayor Pro Tem Packard, Council adopted
RESOLUTION NO. 2013-258. as amended, authorizing the
Carlsbad Public Financing Authority to enter into exclusive
negotiations with Grand Pacific Resorts forthe ground lease of
the property known as The Crossings at Carlsbad West View Lot 9
and to act on behalf of the City of CaHsbad in all future decisions
and actions related to the ground lease ofthe property.
Packard, Wood and Blackburn.
Hall.
Douglas.
ADJOURNMENT:
Boards/Council adjourned the Joint Special Meeting of November 5, 2013 at 9:57 p.m.
BARBARA ENGLESO
Secretary/City Clerk
DONNA HERATY
Deputy Secretary/Deputy City Clerk