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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 ndw