HomeMy WebLinkAbout09/24/90 MINUTES RABakersfield, California, September 24, 1990
Minutes of the Special 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., September 24, 1990.
The meeting was called to order by Chairperson
Paynter.
Deputy City Clerk Welty called the roll as follows:
Present:
Absent:
Agency Members Paynter, Watson, Ruddell (seated at
3:07), Dunn, Araujo (seated at 3:08),
Sceales
Agency Member Rubin
REPORTS
Agency Member Watson, Chairperson of the
Development Committee, read Report No. 90-8 regarding
Interviews with Convention Center Hotel Developers, as
follows:
On Wednesday, September 19, 1990, the
Development Committee met to discuss the
interviews held on Wednesday, September 12,
1990, with four candidates for the
Completion of the Downtown Convention
Center Hotel.
By way of background, the procedure
followed to date in identifying qualified
candidates is as follows:
Twenty-four operators, investors,
franchisers were contacted from
May 7 through June 21.
Eighteen were sent information
packets and Request for Qualifica-
tions on June 21.
Ten submitted Qualifications by
July 6.
Ten were sent Request for Proposals
on July 13.
Six submitted proposals by August 13
Four firms submitted acceptable
proposals by August 13.
Four firms were interviewed by the
CDDA on September 12, 1990.
Bakersfield, California, September 24, 1990 - Page 2
The proposals submitted can be broken down
into two general categories. The categories
both relate to an assessment by Williams,
Kuebelbeck & Associates of the financial
risk to the City and/or CDDA. Two of the
proposals submitted suggest that the City
and/or CDDA assume all risk (P.J.G. Corpo-
ration and American Property Fund). In the
two remaining proposals, the financial risk
is assumed by the developers (Signet/Hallmark
Ventures and Moreland Corporation/Interstate
Corporation). The discussion by the Committee
on September 19, 1990, focused on those
proposals which thus offered the least
financial risk. In regards to the options
offered in the Signet/Hallmark proposal, one
option offers conventional (private) funding.
This proposal does require the conveyance of
existing improvements as added equity and may
require additional City/Agency participation
derived from the project.
The proposal submitted by Moreland Corpo-
ration/Interstate Corporation is also
funded through conventional funding. It
further requires the contribution of all
tax increment revenues combined with the
project's transient occupancy tax and
potential proceeds from an unrelated
lawsuit.
As part of the assessment performed by
Williams, Kuebelbeck & Associates (which
included a risk analysis and comparison
of funding programs), the consultant has
recommended that Signet/Hallmark Ventures
be awarded an Exclusive Right to Negotiate
(ERN). City Staff is in concurrence with
this recommendation.
Based on these recommendations and the
discussion among the Committee members,
the Development Committee recommends that
the CDDA grant a 180-day Exclusive Right
to Negotiate to Signet/Hallmark Ventures
based on their proposal to secure
conventional financing.
Upon a motion by Agency Member Watson, Development
Committee Report No. 90-8 was accepted.
Upon a motion by Agency Member Watson, the recom-
mendations of Committee Report No. 90-8 were implemented.
Economic Development Director Wager stated staff
expects to bring the Exclusive Right to Negotiate to the
Central District Development Agency at its next meeting on
Monday, October 1, 1990.
152
Bakersfield, California, September 24, 1990 - Page 3
ADJOURNMENT
There being no further business to come before the
Agency, upon a motion by Agency Member Watson, the meeting
was adjourned at 3:10 p.m.
CHaIR~''~f~strict Development
Agency of the City of Bakersfield
ATTEST:
SECRETARY of the Central District Development
Agency of the City of Bakersfield
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