HomeMy WebLinkAbout11/05/90 MINUTES RABakersfield, California, November 5, 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., November 5, 1990.
Due to the absence of Chairperson Paynter and Vice
Chairperson Rubin, Agency Member Araujo proposed that Agency
Member Watson chair the meeting.
The meeting was called to order by Acting
Chairperson Watson.
City Clerk Williams called the roll as follows:
Present: Agency Members Watson, Ruddell, Araujo, Sceales
Absent: Agency Members Paynter, Dunn, Rubin
CONSENT CALENDAR
The following items were listed on the Consent
Calendar:
ae
Approval of Warrant Nos. 111 to 129
inclusive, in the amount of $261,728.66.
bo
Minutes of the Regular Meeting of
October 15, 1990, for approval.
Ce
Design Review Application No. 90-13
submitted by R. M. Patel for approval of
paint color for the building located at
19th and "M" Streets.
de
Design Review Application No. 90-14
submitted by Vital Signs for approval of
sign for Griffin Communications, located
at 1930 Truxtun Avenue. (Tim Fryer)
Upon a motion by Agency Member Ruddell, Items a, b,
c, and d of the Consent Calendar were adopted by the
following roll call vote:
Ayes:
Noes:
Abstain:
Absent:
Agency Members Araujo, Ruddell, Sceales, Watson
None
None
Agency Members Dunn, Paynter, Rubin
REPORTS
Economic Development Director Wager presented an
oral report regarding the status of the Tegeler Hotel, as
follows:
On Tuesday, October 30, 1990, staff met
to review the necessary business points
for the Tegeler Project. In addition to
Community Development and Redevelopment
staff, Gregory Klimko and Alan Daniel
participated in the dialogue.
Bakersfield, California, November 5, 1990 - Page 2
Of paramount importance (as agreed by all
parties) was the necessity to ensure the
completion of the project. Equally
important will be the ongoing maintenance
of the project, once completed. Staff
also recognized the recommendation
stressed by Dennis Needham and Joe Moesta,
Lieutenant with the Police Department
(based on their Porterville tour), that an
on-site residential manager is a key item
if the project is to prove to be an asset
to the downtown. Also critical, from
staff's standpoint, is that each room be
self-contained including cooking facility
and a three-quarter bath.
The above points are only the major points
staff will be addressing in its discussion
with the Developer. Failure to reach
accord on the above would, however, in my
mind, be considered to be "deal-breakers",
and negotiations would be terminated.
The existing owner has indicated his
desire to close escrow prior to the end of
this year. We are presently waiting for
the completion of a financial analysis
being performed by a consultant. General
instructions have been provided to special
counsel regarding the drafting of an
agreement. Our schedule calls for final
action by the Agency and the City Council
during the month of December.
NEW BUSINESS
Approval of Exclusive Negotiation
Agreement No. RA90-7 with Hallmark
Ventures/Signet Hotels for the
Construction of the Convention Center
Hotel.
At the request of Acting Chairperson Watson,
Economic Development Director Wager provided an update
regarding the agreement, as follows:
On October 19, 1990, the Central District
Development Agency selected Hallmark
Ventures/Signet Hotels, hereinafter the
Developer, for the completion of the
Downtown Convention Center Hotel.
The Exclusive Right to Negotiate Agreement
grants to the Developer an exclusive
period of 180 days to negotiate a
Disposition and Development Agreement with
the Agency. Based on your approval today,
the exclusive period would run until May 4,
1991.
Bakersfield, California, November 5, 1990 - Page 3
The agreement calls for an initial study
period of 60 days in order for the
Developer to establish the completion cost
and the necessary financing mechanisms.
Upon expiration of the initial period and
satisfactory conclusion of the studies
described above, the Developer will be
required to provide a deposit of $25,000
to the Agency. That deposit, by the way,
can be given either in the form of a
letter of credit or cash. The deposit may
only be retained by the Agency if the
Developer does not negotiate in good
faith.
The agreement further provides that the
Agency will be entitled to copies of any
studies relating to the feasibility of
the project conducted by the Developer.
This would include studies such as an
update on the hotel market demand and any
engineering studies that may be conducted.
The agreement has been prepared with the
assistance of the Developer. Upon approval
by the Agency, copies will be forwarded to
them for execution and returned to the
Agency.
I'd like to add that, although we didn't
have an opportunity to call together the
Development Committee, we were able to
forward a copy to them as soon as we
became aware that that was the final copy.
No comments were really forthcoming from
that discussion that I had individually
with the members of the Committee and, in
addition, the agreement has been reviewed
by the Executive Director, the Finance
Director and the City Attorney's Office
and myself, in accordance with the
Executive Director's established policy.
Upon a motion by Agency Member Araujo, Exclusive
Negotiation Agreement No. RA90-7 with Hallmark
Ventures/Signet Hotels was approved and the Executive
Director authorized to execute the Agreement.
AGENCY STATEMENTS
Economic Development Director advised that Business
Manager Randall has performed a parcel-by-parcel examination
for delinquent taxes owed in the downtown. He was able to
determine a delinquency in the amount of $43,731.00 for the
City Center Project, which has since been paid. Mr. Wager
stated that the parcel-by-parcel examination will continue in
order to bring to the County Tax Collector's attention those
parcels that are delinquent and try to facilitate the
collection of those taxes to the extent that proper flow of
revenues to the Agency can be ensured. Additionally,
Mr. Wager distributed a copy of a memo dated October 30,
1990, from Maurice Randall to Jake Wager, to the Agency
Members.
Bakersfield, California, November 5, 1990 - Page 4
City Manager Hawley advised that the City Council
has requested a Joint Workshop with the Agency, which is ten-
tatively scheduled for January 9, 1991, at 5:15 p.m., in the
Council Chambers. Mr. Hawley stated that a notice will go
out to all the Agency Members once that date is confirmed.
ADJOURNMENT
There being no further business to come before the
Agency, upon a motion by Agency Member Sceales, the meeting
was adjourned at 3:10 p.m.
CHAIRPERSON of th~ Central District Development
Agency of the City of Bakersfield
ATTEST:
SECRETARY of The-C~trai District Development
Agency of the City of Bakersfield
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