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HomeMy WebLinkAbout11/06/89 MINUTES RABakersfield, California, November 6, 1989 Minutes of the Regular Meeting of the Central District Development Agency of the City of Bakersfield, California, held in the Council Chambers of City Hall, 1501 Truxtun Avenue, at 3:00 p.m., November 6, 1989. The meeting was called to order by Chairperson Dunn. City Clerk Williams called the roll as follows: Present: Agency Members Dunn, Killmer, Kronenberg, Rubin, Watson, Araujo Absent: None Paynter, PUBLIC STATEMENTS Ms. Cathy Butler, Executive Vice President of the Downtown Business Association, 1401 19th Street, spoke regarding Christmas decorations. Agency Chairperson Dunn referred the matter of Christmas decorations to the Design Review Committee. Mr. Charles Drew, President of the Downtown Bakersfield Business Association, 10621 Meachem, spoke regarding Central District Development Agency meeting start times. CONSENT CALENDAR The following items were listed on the Consent Calendar: ae Approval of Warrant Nos. 109 to 129, inclusive, in the amount of $117,073.69. b. Minutes of the Regular Meeting of October 16, 1989, for approval. Authorization for a transfer of funds to cover the settlement o f an acquisition related to the Clarion Hotel Project. Upon a motion by Agency Member Kronenberg, Items a, b, and c of the Consent Calendar were adopted by the following roll call vote: Ayes: Noes: Abstain: Absent: Agency Members Dunn, Killmer, Kronenberg, Rubin, Watson, Araujo None None None Paynter, 54 Bakersfield, California, November 6, 1989 - Page 2 REPORTS Agency Member Watson, Chairperson of the Development Committee, read Report No. 89-7 regarding the approval of Parking Structure (18th and Eye) Reimbursement Agreement as follows: On Tuesday, October 24, 1989, the Development Committee met to consider entering into the reimbursement agreement with the City of Bakersfield relating to expenses incurred for the 18th and Eye Street Parking Structure. A review of the records indicates that on July 18, 1984, the Redevelopment Agency and the City Council approved a lease agreement and a reimbursement agreement for the 18th and Eye Street Parking Structure. Since that date the Redevelopment Agency and its successor, the Central District Development Agency, has made an annual payment to the City of Bakersfield for the operational deficit of this structure. The amount for this current fiscal year was included in this year's approved budget. This agreement merely formalizes past and current year practices and policies. Upon a motion by Agency Member Watson, Development Committee Report No. 89-7 was accepted. Approval of Agreement No. RA89-10 with the City of Bakersfield for reimbursement of expenses incurred for the 18th and Eye Street Parking Structure. Upon a recommendations of implemented. motion by Agency Member Watson, the Development Committee Report No. 89-7 were Staff report regarding Tegeler Hotel. Upon a motion by Agency Member Kronenberg, the staff report regarding the Tegeler Hotel was accepted. City Attorney Art Saalfield stated that the specific reference in paragraph 2 of the report, that the City Attorney's Office notified Mr. Desai to take care of the exterior problems that related to the fire damage, the smoke damage defacing the exterior of the property, the City Attorney's Office initially contacted with Mr. Desai last spring, and at that time he indicated that he was having an architect look at some possible plans for the building and anticipated some grand plan to take care of all the building problems at one time, and he expected to be coming to the City in a short time with his architect to present this plan. There were subsequent discussions with Agency and Community Development staff, and at some point, possibly September when things appeared to be stalled, when no action had taken place, the City Attorney's Office sent him another letter stating he had until the 1st of October to take care of this problem. By the 1st of October the fire damage, at least what appeared on the outside of the building, had been taken care of. At this point he is in accordance with requirements of our property maintenance ordinance. There is nothing else in the ordinance that gives the City the power to do anything more with the condition of the exterior of that property. Bakersfield, California, November 6, 1989 - Page 3 Building Director Cal Bidwell stated that the Tegeler Hotel building, under present codes, does not present a hazard or a conflict. At the present time the City is attempting to comply with a law that addresses unreinforced masonry structures in the City. That building would be subject to any ordinance requirements that will come from the adoption of such an ordinance. Mr. Bidwell stated that the City is presently working with the committee, and it is the intent of the committee to have a provision that if the property owner does not comply with strengthening the structure within the time frame that will be specified, then the City would have the option to demolish the structure. Mr. Bidwell provided an update on the report. Item No. 1 said that the City was going to remove the signs. Those signs were removed last week, and the contractor has a demolition permit for the work that is taking place on the interior of the structure. deferred NEW BUSINESS Adoption of Resolution No. RA3-89 of the Central District Development Agency of the City of Bakersfield fixing the dates of meetings of the Central District Development Agency for the calendar year 1990. Upon a motion by Agency Member Watson, this to the meeting of November 20, 1989. issue was AGENCY STATEMENTS ae Statements from Agency members on Central District Development Agency progress. Agency Member Paynter stated his high for the year was the welcoming of the new Chief Executive Officer and the full department status; the Chester and 19th Street accomplishments; the City Center Building; and the successful improvements to the Civic Auditorium. Agency Member Paynter stated the low for the year was the Clarion Hotel project. Agency Member Araujo stated she would like the Agency to consider applying for money for streetscaping one block at a time. She stated she supported holding the Central District Development Agency meetings in the evenings, and does not approve of the Consent Calendar. Agency Member Rubin concurred with the previous comments made by Agency Members Paynter and Araujo. He stated he is looking forward to the streetscaping plan, and stated that the Agency needs to concentrate more on the Center for the Arts project. Agency Member Killmer stated that the most impressive thing this past year has been the amount of work the various committees have addressed and the accomplishments thereof. Also included is the recognition of the diversity of thoughts and beliefs of the members of the Agency and how they work collectively to well serve the citizens of Bakersfield. Bakersfield, California, November 6, 1989 - Page 4 follows: Agency Member Kronenberg read his progress report as Thank you Madam Chair. I would offer the following observations on the Central District Development Agency's progress during the 1989-90 budget year: In terms of the Program Objectives outlined in our budget document, I feel that there is definite progress on many of the seven goals. With a third of the year gone, it is critical that agency and staff work on the Redevelopment Element revision be accelerated to meet our deadline. The Executive Director and his staff are to be commended on the thoughtful, thorough and pragmatic management of the Convention Center Hotel dispute. while the courtroom waltz continues, we have taken the necessary steps to move the project forward when all the legal underbrush is finally cleared away. Two areas that should be put on the fast track are agency financing and expansion of its boundaries. Revitalizing downtown is a function of establishing and sustaining a momentum. Without more resources we invite an unnecessary lull in progress. In the two years I've served on this agency I've seen the emergence of good rapport and communications among its members. This teamwork approach with its emphasis on depoliticizing agency deliberations and decisions has helped maintain our credibility and preserved the agency's freedom to tackle its mission. Our openness in answering recent Grand Jury inquiries, even to the extent of preparing a special briefing, speaks to our commitment to accomplish the redevelopment of downtown Bakersfield simply, honestly and without hidden agendas. Bakersfield, California, November 6, 1989 - Page 5 Staff, under the direction of Jake Wager, has begun to emerge as a professional unit that wears both hats, Redevelopment and Economic Development, equally well. The continued improvement in dialogue between staff and agency members enhances our ability to meet agency objectives. City Manager Dale Hawley, who serves as Executive Director of the agency, deserves a great deal of credit for fostering greater inter-department communication and cooperation. The agency's work could not be accomplished without the help of numerous other city departments, and I find this inter-department coordination encouraging. Specifically, I can point to the enthusiastic assistance provided by Don Hoggatt and Brad Underwood of Public Works on the 19th and Chester intersection project and the current planning effort for a Master Tree Planting program. Cal Bidwell's diligence at the Building Department has helped the Design Review Committee balance urban design guidelines with city ordinance requirements. Since this year has been devoted more to internal and planning matters than to project development due to our financial condition, I think it is important to note the emergence of a more systematic approach to project and planning efforts. These systems provide a solid foundation for negotiating project developments, fighting legal challenges, carrying out enforcement actions, and setting a tone for professionalism. Continuation of these efforts should be encouraged. Overall, I am encouraged with our progress to date. The agency and staff continues to exercise due diligence regarding its mission. I believe the newly constituted City Council will find the Central District Development Agency a valuable asset in revitalizing downtown. Agency Member Watson stated that the cooperation effort from the staff with the Agency has been very good this past year. He feels it is important to get on with the expansion of the boundary. Suggested the Agency consider things as a bonded area; there needs to be a movement into the area of bonding to be reimbursed through an assessment district. We could also set up a maintenance district for maintaining these improvements that are put into the downtown area. Bakersfield, California, November 6, 1989 Page 6 Agency Chairperson Dunn stated her own observations as Chairperson for the past eleven months. She feels that the watchword for any Chairperson of this Agency is patience. All previous comments are accurate and appreciated. The community does not understand that every member of this Agency also sits on two other committees within the Agency to address the problems of the downtown area. We need to remember that Agency redevelopment is a long-term business. The frustrating thing is lack of money. Agency Chairperson Dunn thanked City Manager Dale Hawley and his staff for their continued support. Agency Chairperson Dunn read the following Press Release regarding the Clarion Hotel Project: On Friday, October 27, 1989, Judge Roland Brumbagh, of the United States Bankruptcy Court for the District of Colorado, agreed with the Central District Development Agency (CDDA) in rejecting the Disposition and Development Agreement (DDA) with Bakersfield Convention Center Hotel Associates. The attempted termination of the DDA on March 31, 1989, which was forestalled by the Bankruptcy proceedings, has now been accomplished. The technical effect of this ruling is that the CDDA may now proceed with its own plan to complete the Downtown Convention Hotel Project. While the CDDA is pleased with this latest success, there are still a number of significant issues which must be resolved prior to the Agency's ability to bring about the completion of this project. First there is litigation still pending in the Bankruptcy Court regarding the nature of the relationship between the Agency and the Developer. It is the claim of the Developer that the Agency was a joint venture partner in the project. If the relationship is construed as such, the exposure of the Agency on the debts, claims and liens could be increased. Diane Dunn, Chairwoman of the Central District Development Agency, states, "The claim being made by the developer has no factual basis. It is quite clear in reading the agreement that our relationship cannot be construed as a joint venture partnership." Legal counsel for the CDDA believes that there is a strong likelihood of a favorable ruling dismissing this cause of action. Bakersfield, California, November 6, 1989 - Page 7 The other s~gnificant issue which requires resolution are the claims and liens filed by the general contractor, the subcontractors and material suppliers involved in the project. The Central District Development Agency wishes to again state its position relative to those claimants. The Agency is making every effort not only to protect its interest, but is also attempting to insure equitable resolution of all valid liens and claims against the project resulting from the failure by the developer to meet all of its contractual obligations. This position is unequivocal. In summary, the CDDA is pleased with the progress being made in resolving all the outstanding issues relating to the Downtown Convention Hotel. The Agency first committed to this project knowing that a full service luxury hotel designed to serve the needs of the adjacent convention center would be of great benefit in revitalizing the downtown. The information gathered since the project was halted and the progress made by the Agency since that time has further strengthened our resolve to complete the hotel as originally envisioned. Before that can happen there are, as discussed, several significant issues which require careful and deliberate action prior to the recommencement of construction and fulfillment of the Agency's goal of completing the downtown hotel. With the continued support of the citizens of Bakersfield, the business community, and its elected officials, a hotel which will contribute significantly to the revitalization of the downtown and be the cause of great civic pride, will be completed. ADJOURNMENT There being no further business to come before the Agency, upon a motion by Agency Member Watson, the meeting was adjourned at 3:45 p.m. CHAIRPERSON of the Central District~evelopment Agency of the City of Bakersfield ATTEST: SECRETARY of the Central District Development Agency of the City of Bakersfield kdsc