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HomeMy WebLinkAbout12/04/89 MINUTES RABakersfield, California, December 4, 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., December 4, 1989. The meeting was called to order by Chairperson Dunn. Deputy City Clerk Welty called the roll as follows: Present: Absent: Agency Members Dunn, Kronenberg, Paynter, Araujo (seated at 3:03) Agency Members Killmer, Watson Rubin, PUBLIC STATEMENTS Mr. Jack Haddad, Board of Realtors, 331 18th Street, spoke regarding Committee Report No. 89-8 relative to General Plan Amendment No. 4-89, Segment VI, and stated that the Bakersfield Board of Realtors is opposed to a change in the General Plan or any change of zoning without individual notice of public hearing to property owners. CONSENT CALENDAR The following items were listed on the Consent Calendar: Approval of Warrant Nos. 0144 to 0160, inclusive, in the amount of $306,290.67. b. Minutes of the Regular Meeting of November 20, 1989, for approval. Grant Deed from Texaco Refining and Marketing, Inc., for acquisition of additional land for the Clarion Hotel Project. Agency Member Kronenberg stated that the Minutes of the Central District Development Agency for the meeting of November 20, 1989, need to be changed to reflect the actual motion on Application No. 89-39. The second paragraph should read: "Specifically the awning is a fixed steel frame covered with a dark green color cloth and white fringe " Agency Member Kronenberg made a motion to pull Warrant No. 0148 for VanCuren and DeMarco and hold it until it can be discussed among staff or in committee. Chairperson Dunn asked staff to research what was approved for the VanCuren property and have a report at the next meeting. Finance Director Gregory Klimko clarified that the warrant number is actually 0150 and not 0148. The motion by Agency Member Kronenberg to pull Warrant No. 0150 for VanCuren and DeMarco was approved. Bakersfield, California, December 4, 1989 - Page 2 and c of No. 0150, Ayes: Noes: Abstain: Absent: Upon a motion by Agency Member Paynter, Items a, b the Consent Calendar, with the exclusion of Warrant were approved by the following roll call vote: Agency Members Araujo, Dunn, Rubin None None Agency Members Killmer, Watson Kronenberg, Paynter, REPORTS Chairperson Dunn read Development Committee Report No. 89-8 regarding General Plan Amendment No. 4-89, Segment VI, with site location three and one-half blocks generally between "A," "C," 17th and 20th Streets as follows: On Monday, November 26, 1989, the Development Committee met to review General Plan Amendment No. 4-89, Segment VI (generally located between "A" Street and "C" Street, 17th Street and 20th Street). After a presentation by Planning Staff members and discussion among those in attendance, the Development Committee arrived at the following recommendation: That consideration of this General Plan Amendment be deferred until work presently underway on the update of the Redevelopment Element is completed. That update will require extensive dialogue and study by the Redevelopment Advisory Committee. In appointing this Committee, the Central District Development Agency fully intended to have the broadest possible representation. The purpose behind that broad representation was to ensure that all viewpoints would have the opportunity to comment on land use policies, traffic circulation, and other important issues relevant to redevelopment. Since the area being considered for the General Plan Amendment is within the redevelopment study area, it is the Committee's opinion that a thorough examination of land uses and their potential impact occur prior to the approval of such a General Plan Amendment. The Committee would therefore recommend that the Central District Development Agency request that the Planning Commission consider continuing the application for General Plan Amendment No. 4-89, Segment VI, by authorizing execution of the attached letter by Chairperson Dunn. Bakersfield, California, December 4, 1989 - Page 3 Upon a motion by Agency Member Paynter, Development Committee Report No. 89-8 was accepted. Upon recommendations implemented. a motion by Agency Member Paynter, the of Development Committee Report No. 89-8 were NEW BUSINESS Approval of transmittal of Annual Housing and Financial Transaction Report of the Central District Development Agency to the City Council and the State of California. Chairperson Dunn requested staff to address this matter. Finance Director Gregory Klimko spoke regarding the Annual Housing and Financial Transaction Report of the Central District Development Agency. Agency Member Araujo requested a walk-through of the Annual Housing and Financial Transaction Report of the Central District Development Agency. Finance Director Gregory Klimko explained, by sections, the Component Unit Financial Report. Agency Member Kronenberg stated for the record that the expenditure for recreational facilities is really the Auditorium improvement, and the Economic Development Section, the $657,000, is the City Center contribution the Agency made. Chairperson Dunn asked where the report would be made available if someone wanted to review it. Finance Director Gregory Klimko stated 100 copies of the Annual Housing and Financial Transaction Report are available at City Hall, and three copies are also sent to the College, the University, and the local library; also, the Downtown Business Association and the City Clerk's Office have copies on file. News media can obtain extra copies from the Finance Department. Agency Member Kronenberg asked Mr. Klimko to summarize, for the record, what the Agency's financial condition is at the end of the fiscal year. He didn't think there would be anything new that had not been heard before in quarterly updates, but felt it should be stated and, also perhaps, Mr. Klimko's interpretation of what Peat Marwick thinks of the way the City accounts for their money. Agency Member Kronenberg then suggested that a copy of the Annual Housing and Financial Transaction Report of the Central District Development Agency be sent to the Grand Jury for their information. Finance Director Gregory Klimko advised that this is a capsule of a picture at a point in time, June 30, 1989. What this does not convey is what we have projected for future year cash flows and that the Agency is experiencing some difficulty in their cash flow. Bakersfield, California, December 4, 1989 - Page 4 Upon a motion by Agency Member Kronenberg, the Annual Housing and Financial Transaction Report of the Central District Development Agency to the City Council and the State of California was accepted, and transmittal to City Council and State of California was approved. This is the time set for a public hearing before the Central District Development Agency for the purpose of the biennial reviewing of the Redevelopment Plan for the Downtown Bakersfield Redevelopment Project. Economic Development Director Jake Wager identified the purpose of the hearing. Development Associate Donna Barnes provided a slide presentation. Business Manager Maurice Randall provided a walk-through of the year-to-year cash flow of the Central District Development Agency of Bakersfield Downtown Project Area. He stated that starting with the 1988-89 fiscal year, when the budget was put together, there was an anticipation made that there would possibly be a sale of a note on the Bank of America parking structure on 17th Street, which did happen, and the Agency received $850,000. In the Fiscal Year 1988-89, the Agency drew $600,000 of the $1,000,000 loan from the City sewer fund, and it is anticipated that an additional $400,000 will be drawn in the current Fiscal Year. In the next couple of years, 1990 through 1992, the beginning balances of those two years are shown as positive, and as we move into 1992-1993, then we would begin to see a negative. Staff is already looking at making plans on ways to possibly come up with additional revenues. One of the things is that we project our revenues, and sometimes they come in higher, and with expenditures we often have savings and do not end up spending all the money as budgeted. Therefore, we are optimistic that we will be able to deal with the negative shortcomings in the future years. Agency Member Paynter inquired as to how the tax increment formula is calculated. Maurice Randall stated those are projected by using the current year and increasing it by 2 percent in any new development that is anticipated in the future year. Agency Member Kronenberg asked for an explanation of the footnotes for City Center, Williamsburg Square and the Clarion Hotel. Maurice Randall responded by stating that the first year is the year that the County first assesses the property. Once it is assessed, it continues to be assessed at that same amount, except for when there is a project that is not completed, and one year is shown as a partial assessment in that year and then in the subsequent year they would pick up the balance of it. For example, City Center has $70,000 in 1989-90; in 1990-91, an additional $50,000 would be assessed when the building is completed. The county would then assess it at 100 percent. Agency Member Rubin inquired as to the possibility of eliminating the deficit and having sufficient revenues with which to attract development in the future. 70 Bakersfield, California, December 4, 1989 - Page 5 Agency Member Kronenberg suggested that the Development Committee put a game plan together for the future. Chairperson Dunn declared the hearing open for public participation. There being no public comments, Chairperson Dunn closed the public portion of the hearing. AGENCY STATEMENTS Agency Member Paynter commented about CDDA Progress Report dated December 4, 1989; under City Center there is a statement, "Aside from the landscaping, the only outstanding items regarding City Center are administrative in nature." He stated he takes exception to that and that he thinks the water element is definitely a problem that is not administrative in nature and should not be overlooked. Economic Development Director Jake the water element is currently being administrative. Wager stated that categorized as Economic Development Director Jake Wager made a request to "go dark" December 18, 1989. Chairperson Dunn took a vote of the members of the Central District Development Agency as to "going dark" (not to hold a formal meeting of the Agency) for December 18, 1989, and to resume the next regular meeting on January 2, 1990. Agency Member Kronenberg suggested being on-call for a special meeting if the need arises. Agency Member Paynter asked about Committee meetings for the week of the cancelled Agency meeting. Economic Development Director Jake Wager stated if there is business to be attended to by the Committees, those meetings would continue as scheduled. Agency Central 1989. Chairperson Dunn requested the Clerk to advise absent Members Killmer and Watson of the cancellation of the District Development Agency meeting of December 18, Upon a motion by Chairperson Dunn, the Central District Development Agency meeting scheduled for December 18, 1989, was cancelled. Finance Director Gregory Klimko spoke regarding making a payment on a debt due January 1, 1990, in the amount of $175,000, which is a semi-annual payment on the $2,000,000 loan from American National Bank for the convention hotel public improvements which was assumed by the Agency as part of the hotel Development and Disposition Agreement (DDA). The payment will be made in accordance with previous direction from the Agency. Bakersfield, California, December 4, 1989 - Page 6 ADJOURNMENT There being no further bus~ness to come before the Agency, upon a motion by Agency Member Watson, the meeting was adjourned at 4:00 p.m. '~ CHAIRPERSON of th~Central District Development Agency of the Ci~ of Bakersfield ATTEST: SECRETA~ of the Central District Development Agency of the City of Bakersfield kdsc