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HomeMy WebLinkAbout03/19/86 MINUTES RAMINUTES BAKERSFIELD REDEVELOPMENT AGENCY Regular Meeting - March 19, 1986 The regular meeting of the Redevelopment Agency order by Acting Chairman Childs on Wednesday, March Council Chambers. The in the City Hall follows: MEMBERS PRESENT: James H. Childs Chris Christensen Mark Dickerson Rollie Moore Patricia Smith Mark Salvaggio MINUTES Agency Member Moore made a motion sented. The motion was approved unanimously. CORRESPONDENCE was called to 19, 1986 at 5:05pm Secretary called the roll as MEMBERS ABSENT: Donald Ratty to approve the minutes as pre- Correspondence was received from Don Chin, regarding the demoli- tion of Stoner Apartments, 1923 Truxtun Avenue, address to James H. Childs, Redevelopment Agency. Agency Member Dickerson made a motion to refer to staff. The motion was approved unanimously. asked if there were any deletions or addi- replied by suggesting that Item E on the Mr. Jaconi is not present at the time the meet- on the Agenda. Acting Chairman Childs tions to the Agenda. City Manager Caravalho Agenda be deferred, if ing reaches this point REPORTS 1. Report regarding City Project. Economic Development memorandum addressed to the Mosesian Development Company's Center Director Kennon referred to a supplemental the Agency pursuant to the requirements of the developer's exclusive right to negotiate. These requirements called for a final concept and schedule of the project be presented to the Agency within 45 days. These have been reviewed by staff and staff is recommending that the Agency go forward with this project based upon the proposed concept and schedule. Redevelopment Agency March 19, 1986 page 2 City manager Caravalho suggested that the developer make a few com- ments regarding the progress of this project. Mr. Ron Beardsley, a joint venture partner in this project gave report on Beardsley Development background and the various projects they have developed in the City. He explained how they will be the lead for the City Center Project. Architects have, over the past three weeks, been developing more detailed schematic plans on the con- cept and have designed a building that is not only buildable, but financeable, and leasable. He feels that they must develop an eco- nomic package based upon known rent levels, so they worked on the pro- ject from that standpoint. With the assistance of the Redevelopment Agency, they feel the numbers will work, making the project finan- ceable and are anticipating with the Agency's go-ahead today that they would be on the financing market within the next two weeks. It has been determined that with interest rates, at the 9% level at this time the next two months is critical to get something to the lenders. Mr. Beardsley made a brief presentation regarding the proposed concept. Agency Member Dickerson asked how much additional parking will be available on the proposed parking structures for uses not connected with the project. Mr. Beardsley replied that at the moment there are none. One and one-half levels are underground and two levels above ground. It is not possible to go down any more levels because of the expense involved, and to go up another level will impact the leaseability on the building on the north side of the building. At the present time there are no plans to add additional parking. Each additional level requires $1,000,000. Agency Member Dickerson expressed that the parking problem in the downtown was extremely important to him and that the parking problems in the downtown should be resolved, he also said that one of the rationale that he was using in accepting this developer and project, was that they mitigate this problem. Mr. Dickerson also asked how much parking is allowed for the Paramount Savings Building. Redevelopment Agency March 19, 1986 page 3 Mr. Beardsley replied that at the present there is enough parking for the Paramount Savings building and the new structure, it shows four per thousand. City Manager Caravalho indicated that there is of $1,000,000.00 for each additional parking level. with Mr. Benton have occurred ing problem. However, he is tive to the developer and his on several occasions regarding his park- not aware of the type of discussion rela- project. Acting Chairman Childs suggested that someone talk to owner of the Haberfelde Building regarding his needs. Agency Member Salvaggio asked Mr. Benton if he feels his partners have been involved in some sort of project in perhaps approving the parking. Mr. Benton, that he and dialogue regarding this Mr. Benton replied that there be constructed for the purpose of ing problem. was a time when this parking was to aiding the Haberfelde Building park- Acting Chairman Childs asked staff to communicate with Mr, Benton and prepare a report for the Redevelopment Agency. Agency Member Christensen asked if the east end of the Haberfelde Building was ever offered for four or five tiers of parking. Mr. Benton replied that at one time the possibility of three tiers on Eye Street and three tiers on "K" Street were discussed and he asked the Agency to do their best on this project. Agency Member Dickerson expressed that he is not ready to approve the concept to direct staff to proceed with the discussion either with the Developer, with staff or with Mr. Benton. Mr. Dickerson made a motion that this item be put on the Agenda for the next Redevelopment Agency meeting in order to allow the Agency Members time to discuss and decide their feeling on what to proceed with. an additional cost He suggested that this additional cost and construction be addressed as part of the sec- ond phase. He expressed that the City wants this project built and to be successful. Acting Chairman Childs asked if Mr. Benton, owner of the Haberfelde Building was contacted in the discussion of this project. Economic Development Director Dave Kennon replied that discussions Redevelopment Agency March 19, 1986 page 4 Acting Chairman Childs expressed that the City has been get something started in the City, and he is concerned for Mr. Benton. City Manager Caravalho indicated that he feels that we ahead and start the discussions on the DDA and include Mr. that. Agency member Moore made a substitute motion that cept be reviewed and direct staff to proceed in some her in the development in the Disposition Development Agency Member Dickerson expressed that parking is trying to should move Benton on the basic con- appropriate man- Agreement. a paramount con- cern with him relative to redevelopment projects, he feels that if the Redevelopment Agency is going to spend monies on the redevelopment projects, it needs to spend it on building the project, and also, alleviating problems with parking that are faced in the downtown area. Mr. Monje, Attorney for the project gave a brief report and indi- cated that when the Mosesian Development Company was selected, they agreed to the scope of the project. Part of that agreement was that the developer was to get the scope together and be at tonights meeting so that it could be approved at this meeting. Forty-five days from this meeting they may have a DDA ready for the Agency's review. Also, it was suggested by Mr. Caravalho, that he wanted the developer out in the financial market as quickly as possible. All of this is being done, and now it is being suggested that this project be postponed to talk a little more about parking. There is another project pending, which certainly has a much preferable site location, he would like both projects to go, but also would like a head-start. It was City staff's idea, to get some momentum going downtown. If the Agency is going to start "ham stringing" the developer, there are only two ways to deal with that problem, either both projects don't go or the Agency's contribution to one of the projects will increase. An eco- nomical package has been offered to the Agency, there is nothing in the proposed draft DDA that is different than the proposal that the Agency accepted, when they were selecting among the competing develo- pers. The Developer has done exactly what has been asked and followed the timetable on the Agreement that the Agency signed and allow the Redevelopment Agency March lg, 1986 page 5 developer to go forward. They will work on the parking issue, but it must be kept in mind that adding 150 spaces to a parking structure on this project, may affect its economic viability, unless the Agency wants to come up with the $1,000,000. Agency member Dickerson, on the basis of Mr. Monje's report withdrew his motion. The call for the question was approved The motion to review basic concept and in some appropriate manner in the development of DDA was unanimously. CONSENT CALENDAR Agency Member Dickerson made a motion to approve the items Consent Calendar. The motion was approved unanimously. NEW BUSINESS 1. Memorandum of Understanding for proposed Office Commercial Project. City Manager Caravalho indicated that he wants to bring up to date on this project. He asked that Mr. Jaconi or Mr. be recognized. Agency Member Dickerson made a motion Mr. Stanners. unanimously. direct staff to proceed approved on the Californian/Jaconi the Agency Stanners to recognize Mr. Jaconi or Mr. Joseph Jaconi gave a brief report on the progress of this pro- ject. Mr. Jaconi indicated consideration is being given regarding the reuse of the historic structure fronting on Eye Street including the low rise one story building. The development plan includes two towers. One building will be housing the newspaper, and that will be about a six or seven story building containing approximately 70,000 square feet of area, the second building is proposed to be approxima- tely 12 stories in height, and contains about 150,000 square feet of area. This building will be leased in the general office market and will also serve as the new home for American National Bank. We have had discussions with Mr. Ray Dezember and Mr. Wiley of American National to relocate the bank into this tower which will then be identified as the American National Bank Building. Redevelopment Agency March 19, 1986 page 6 The parking for the project is something that we are examining closely. We appreciate the interest of the Agency in providing ade- quate parking for a project such as this so that other parking areas in the city are not impacted. The parking ratios that the city has established, are reasonable ones and we intend to comply with those and provide the parking that the project needs. Mr. Jaconi indicated, with respect to the Mosesian/Beardsley pro- ject, that the concept of the City Center Project, seems to be a viable project. Mr. Jaconi stated that they are discussing with staff the phasing of our project. As the Center City representative said "give the Mosesian/Beardsley a head-start" is something that we will consider and act upon reasonably. Mr. Jerry Stanners, Chief Executive Officer of the Bakersfield Californian stated that they have a board meeting on March 27, 1986, and will be meeting on the conceptual presentation that they have done with Dave Kennon's staff. They will be making a decision at that meeting on their participation in this project and they hope to have the conceptual phase completed with the staff so the responsibilities of the City and Bakersfield Californian are understood. Mr. Stanners also stated that they are excited about the project and very pleased it is moving as well as it has, they have had good cooperation by the staff and they are very pleased with the progress so far. Mr. Stanners explained that they are very sensitive to the tenants in the block across the street from them and they have been updating them of the progress with the City. Mr. Ray Dezember, Chairman of American National Bank, announced the intention of the Board of Directors of American National Bank to participate to what they think is a very significant project and one that they think will help spur the growth in downtown Bakersfield, an area that they have always held very close to their hearts and they are very pleased to participate in it. Agency Member Moore made a motion to receive the report and direct staff to proceed with the development of the owners participation agreement. Redevelopment Agency March 28, 1986 page 7 The motion was unanimously approved. Agency Member Dickerson stated that he is in great favor of the project from the concepts that he saw. He thinks that it is criti- cally important that the front running projects deal with the issue of parking a little more heavily than perhaps the projects down the road. He is in support of continuing with the review of this project, but he makes this comment as a concern and he wants to make it known. ADJOURNMENT Upon a motion by Agency Member Christensen the meeting was adjourned at 6:00 p.m. Acting Chairman James ~T. Childs