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HomeMy WebLinkAbout08/06/90 MINUTES RABakersfield, California, August 6, 1990 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., August 6, 1990. The meeting was called to order by Chairperson Paynter. Deputy City Clerk Welty called the roll as follows: Present: Absent: Agency Members None Paynter, Watson, Ruddell, Dunn, Araujo, Rubin, $ceales PUBLIC STATEMENTS Mr. Charles Drew, 1918 19th Street, spoke regarding the Unreinforced Masonry Ordinances and encouraged the Agency to be more involved in the process during the next two years in looking at the buildings affected, tracking what needs to be done to those buildings, and trying to come up with some ideas to assist the property owners. CONSENT CALENDAR The following items were listed on the Consent Calendar: Approval of Warrant Nos. 375 to 399, inclusive, in the amount of $98,107.18, and approval of Warrant Nos. 1 to 13, inclusive, in the amount of $272,262.87. b. Minutes of the Regular Meeting of July 16, 1990, for approval. Design Review Application No. 90-8 submitted by Bilco Neon for American Way Off Price for installation of wall mount sign on the east and south wall elevations. The east elevation will be 64 square feet in size, and the south elevation will be a maximum of 60 square feet. Design Review Application No. 90-9 submitted by $tan Mosley dba Waterbed Warehouse at 1534 19th Street, for changing a sign panel on an existing sign. Design Review Application No. 90-10 submitted by Marjorie C. Minner for Global Gifts at 1516 18th Street, for a hanging sign 10 inches by 56 inches to hang 8 feet above sidewalk. Design Review Application No. 90-11 submitted by Bilco Neon for Best Furniture at 2014 Chester Avenue for a wall mount sign 44 square feet in size. Upon c, d, e, and f following roll a motion by Agency Member Ruddell, Items a, b, of the Consent Calendar were adopted by the call vote: Ayes: Noes: Abstain: Absent: Agency Members None None None Araujo, Dunn, Paynter, Rubin, Ruddell, Sceales, Watson Bakersfield, California, August 6, 1990 - Page 2 UNFINISHED BUSINESS This is the time set for continued public hearing before the Central District Development Agency for the purpose of receiving oral and/or written comments concerning the proposed purchase of that property at 1400 18th Street, Bakersfield, and the proposed sale of that property at the southwest corner of 17th and "G" Streets, Bakersfield. This hearing was continued from the meeting of July 16, 1990. Chairperson Paynter declared the hearing opened for public participation. Economic Development Director Wager reviewed the status of the documents indicating this matter was continued in order to resolve some language difficulties. For the most part, that has taken place. There are still some matters pending, and they relate primarily to the exhibits that would be attached and that would be necessary for the opening of escrow. Mr. Barry Goldner from Klein, Wegis, DeNatale, Hall, Goldner and Muir explained his clients had some minor language changes that needed to be made to the documentation (the Exchange Agreement) just to make sure that there were no ambiguities. They also had requested that all the exhib- its to the Escrow Instructions be prepared so that everyone concerned understood what the deal was. He felt that his concerns about the exhibits were not insurmountable and requested that the Escrow Instructions and the Exchange Agreement be formally approved at this meeting. He stated further that his clients are eager to complete this transaction, as well as the Agency, and did not want to come back here today and ask for yet another continuance of this hearing and have the Agency become concerned in any way that there is some problem with the transaction, because there is no problem with the transaction. Everyone is in agreement about what the deal is. It's just a matter of getting all the lawyers to focus in to get things finalized, and he felt that can be done, hopefully, within the next few weeks with- out any further difficulty. In response to a question from Chairperson Paynter, Economic Development Director Wager stated the documents that are being referenced are escrow documents, and they wouldn't require execution at this point, in any event. They would require execution prior to the commencement of escrow. The two agreements that are being submitted for approval outline the understanding between the two parties. The balance of the documents are items that would be submitted to the escrow company. If the parties are unable to resolve any kind of differences or settle on language, then, escrow never opens and the deal falls to the wayside without anybody having been impinged or harmed. Deputy City Attorney Ma~ino stated that her under- standing of what was being requested was to open the hearing on this matter; however, she was concerned with having the agreements approved by the Agency when it does not know what the terms of those agreements are. She recommended that the hearing be opened and testimony taken, and the Agency take action in approving the agreements at the next meeting since the items that are up for discussion are incorporated into those documents, and felt that it would be best if the Agency had an opportunity to review everything before it took action. Bakersfield, California, August 6, 1990 - Page 3 Chairperson Paynter then declared the hearing open for public participation. Mr. Charles Drew, 1918 19th Street, expressed his concern as to where people will park if the property that is currently being used as a parking lot is developed. Economic Development Director Wager responded that Banducci-Walker Enterpises currently is the primary tenant for that parking lot; however, there will be additional park- ing available in the area and within the distance allowed by the Parking Ordinance. In response to a question by Mr. Drew regarding the monetary consideration involved in the exchange of properties, Economic Development Director Wager stated that there is an appraisal for that parking lot of $425,000. Banducci-Walker is selling their parcel for $125,000. The agreement calls for a $300,000 Promissory Note and Deed of Trust which secures the City and the Agency's interest. In the event that a project commences by a given date, is com- pleted within two years, and whose building value is $4.5 Million, the Agency assumes the obligation to pay $300,000 at 10 percent interest over 10 years to the City. The City is kept whole. The Agency has generated a project of some con- siderable value to the downtown. Upon a motion by Agency Member Watson, the hearing was continued until the Regular Agency Meeting of August 20, 1990. AGENCY STATEMENTS Chairperson Paynter spoke regarding the story by Mr. Medina in The Bakersfield Californian of August 6, 1990, discussing City/County problems with redevelopment, and who gets the bucks, a portion of which read: "However, the Bakersfield Central District Development Agency, which over- sees redevelopment downtown, is opposed to SB998." Mr. Paynter stated that the matter has never come before the Agency, and it has never expressed an opinion or taken action on SB998. Chairperson Paynter spoke regarding the Banducci-Walker agreement. He referred the establishment of developing criteria for interviewing, and preparation of a job description for a Contract Administrator, to the Development Committee. In response to a question by Agency Member Araujo regarding whether the Contract Administrator would be bonded, as is done in the real estate field, Chairperson Paynter stated that it should be a point of serious consideration. In response to a question by Agency Member Rubin regarding the status of the Convention Center Hotel, Economic Development Director Wager stated the proposals are due to the consultant on August 13, 1990. It will take approxi- mately two to three weeks to evaluate and forward their rec- ommendation concerning the top three candidates. The intent was to have three candidates appear before the Agency for the opportunity to answer questions about qualifications, how they can bring about the completion of the project, and per- haps some questions about the gross terms that will be out- lined in each proposal. 122 Bakersfield, California, August 6, 1990 - Page 4 Economic Development Director Wager further stated that it will then be a matter of settling on one proposal and preparing an exclusive right to negotiate, which would proba- bly be for a period of 180 days. This will allow staff and the developer an opportunity to work out the terms outlined in the proposal. This procedure would require the active participation of the Agency and the Development Committee. Mr. Wager stated that the status is in line with the schedule to present to the City Council in October. He further stated that nine firms were invited to submit proposals and, of those nine, three are local entities. ADJOURNM~T Upon a motion by agen~/~ember Rubin, was adjourned at 3-28 . ~/ Agency of the City of Bakersfield the meeting Development ATTEST: SECRETARY of the Central District Development Agency of the City of Bakersfield ndw