Carlsbad faces challenges, opportunities in 2005

By: BARBARA HENRY - Staff Writer | Saturday, January 1, 2005 9:16 PM PST ∞

CARLSBAD ---- A lawsuit over a key road project, concerns about state funding cuts and a decision on whether to allow large retail stores in Carlsbad are among the challenges city leaders will face in the coming year.

Among the opportunities Carlsbad can seize are the planned renovation of the "blighted" Ponto neighborhood, the creation of a business improvement district for the hotel industry, and the selection of a location for a proposed civic center, city leaders said as 2004 ended.

Adding to the mix is the November election of a new councilwoman to a council noted for its longevity.

"To me it's kind of an exciting time," said Councilman Matt Hall, as he discussed the recent election of waterfront hotel owner Norine Sigafoose.

The year may start with a bang. Many of the contentious issues, including a court hearing on the roadway lawsuit and a council debate on the large retail store proposal, will come up early in the year.

As lawyers negotiate and council members talk, construction will proceed on a series of park projects and planners will consider renovation plans for the Ponto area. The biggest challenge of all may be keeping a handle on the finances, said City Manager Ray Patchett.

"One of the primary, if not the primary thing, will be to maintain our fiscal health in the face of challenging situations," he said.

Financing the future

The prosperous city of some 94,000 people has run regular budget surpluses for years, but that trend is forecast to end as the city enters its "build-out" stage within the next decade. As many large, upscale housing projects now under way across the city conclude, revenue will dip and city leaders are debating how to handle that.

The situation isn't helped by financial troubles at the state level. Carlsbad estimates it will lose $1.2 million to $1.5 million in state funding next year, Mayor Bud Lewis said.

Against that backdrop, the city is planning a series of park construction projects, including a swim complex proposed for the future Agua Norte Park. The trouble with building the parks isn't a lack of construction money ---- that's available. It's the ongoing expense of maintaining them that causes concern, Patchett said.

The city is seeking new sources of revenue, but those proposals have had their share of controversy.

Building bigger boxes

One revenue-building suggestion is to allow large, free-standing retail stores in industrial areas in Carlsbad. The sprawling Costco store on Palomar Airport Road is currently Carlsbad's only representative in the "big-box store" category.

Plans to change that situation met with fierce opposition at a Planning Commission meeting last summer, and the issue was tabled for months. It's now expected to reappear in 2005, when council members will decide whether to study the effects large stores could have on Carlsbad.

The subject became a campaign issue in the November election, and Councilwoman Ann Kulchin, who won her seventh term on the council, said in late December that she wants it settled.

"I think the quicker we make the decision, the better it is," Kulchin said as she described the calls she's gotten from people who don't want Wal-Mart to come to town.

Kulchin initially supported the idea of allowing large retail stores, but said she has since changed her mind.

Expanding lodging options

Another controversial topic ---- carving roads and a business park into a creekside area near Palomar Airport Road ---- also may be settled early in January when a federal court in San Diego reviews a preliminary injunction request against the project.

An attorney for the environmental group Preserve Calavera has filed the request, charging that the U.S. Army Corps of Engineers should not have issued a wetlands permit for the project. The city has gotten involved because the project's derailment could end plans to extend Melrose Drive and Faraday Avenue. The developer is paying for the roadway extensions.

As the courts hear that case, the city will be moving forward on other projects. Rough concept redevelopment plans for a long-forgotten portion of town ---- the neighborhood known as Ponto, at the southern end of Carlsbad's oceanfront strip ---- will go before the city's Planning Commission early this year.

Included in the concept drawings are three privately funded hotel projects. Those hotels were frequently cited on the November campaign trail as a great revenue boost to the city.

Raising hotel revenue also will be on the minds of the folks with the Carlsbad Convention and Visitors Bureau. They're talking about approaching the city with plans for a tourism business improvement district, said Kurt Burkart, the bureau's executive director. The district would be a self-taxing entity, collecting revenue from an assessment on hotel rooms.

"So much of what we're hoping to do depends on the creation of the (district)," he said, listing ways the money could be used for publicity. "It's the old adage that you have to spend money to get money."

Contact staff writer Barbara Henry at (760) 901-4072 or bhenry@nctimes.com.

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