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