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
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