CARLSBAD — The city is exploring potential uses for 67 acres on several of its parking lot properties surrounding The Shoppes at Carlsbad.
The Carlsbad City Council unanimously approved a resolution forming a project team and “future negotiating” agents to work with mall owner Brookfield Properties to research options for the city-owned land during its March 14 meeting.
The decision comes after Brookfield submitted a letter on Jan. 20 requesting to negotiate a lease or sale of the Carlsbad property, according to Curtis Jackson, the city’s real estate manager.
Before a sale can commence, the city must comply with the Surplus Land Act, which promotes affordable housing on unused or underutilized public land. As part of the adopted resolution, city staff will review compliance with Surplus Land Act (Assembly Bill 1486).
The Shoppes parking lot properties surround the regional shopping center, located south of Highway 78, north of Marron Road, east of Monroe Street, and west of El Camino Real, including the southwest corner of El Camino Real and Marron Road.
The city-owned parking properties total approximately 67 acres — 57 acres in Carlsbad (with deed restrictions) and 10 acres in Oceanside.
The Carlsbad Parking Authority acquired the parcels from developer Plaza Camino Real LP in two phases starting in 1969 when the first portion of the mall was built. The second acquisition phase was between 1975 and 1981 when The Shoppes was expanded to its current form.
“The land that was dedicated perpetually to public use as a municipal parking lot contains a reversionary clause that could revert the properties back to Brookfield or its successor if the city does not maintain it as a municipal parking lot,” Jackson said.
Before a sale, the city must declare the land as either surplus or exempt surplus land.
If the land is not declared as exempt surplus land, the city must send a written notice of the availability of surplus land to develop as low- and moderate-income housing to the California Department of Housing and Community Development, local public entities and other interested parties.
After the declaration, the land must be available for 60 days. Then, if an offer is made, the city must enter a 90-day good faith period of negotiations, Jackson said.
The council has previously discussed mixed-use and residential developments at properties adjacent to The Shoppes, which it has considered ideal housing locations.
In 2017, the City Council approved the Real Estate Strategic Plan for a more coordinated approach to manage significant, city-owned real estate assets, according to the staff report. The city wants to maximize its return on the investment of public dollars and leverage properties for the most significant public benefit.
As for the city’s parking lot properties, the plan recommended the city should explore options for entering into a long-term lease agreement for the properties with the owner of the regional shopping center.
Generally, the city’s stated preference in the Real Estate Strategic Plan is to retain ownership and lease assets on the properties it owns, given the long-term value of ongoing revenue versus the one-time payment from a sale, the report reads. However, parking lot properties in the plan identified both a lease and a sale as options.
