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HomeMy WebLinkAbout05/21/86 MINUTES RA MINUTES BAKERSFIELD REDEVELOPMENT AGENCY Regular Meeting - May 21, 1986 The regular meeting of the Redevelopment Agency was called to order by Acting Chairman Childs on Wednesday, May 21, 1986 at 5:10pm in the City Hall Council Chambers. follows: MEMBERS PRESENT: James H. Childs Chris Christensen Mark Dickerson Mark Salvaggio The secretary called the roll as MEMBERS ABSENT: Rollie Moore Donald Ratty Patricia Smith Agency Member Christensen made a motion that the minutes of the Redevelopment Agency Meeting of May 5, 1986 be approved as presented. The motion was approved unanimously. SCHEDULED PUBLIC STATEMENTS Mr. Ben Benton, Owner, Haberfelde Building, was scheduled to make a public statement regarding the Center City Commercial Office Project. Mr. Benton asked that his public statement be delayed until the time that the meeting gets to item F.1. on the Agenda "Proposed Business terms of the Center City Project". NEW BUSINESS 1.~ Resolution to update local resolution pertaining to implementation of the California Environmental Quality Act (CEQA) Deputy City Manager Mary Strenn explained to the Agency the con- tents of the Resolution relative to the recent changes in the state law to the California Environmental Quality Act. Agency Member Dickerson made a motion to approve the Resolution pertaining to implementation of the California Environmental Quality Act (CEQA). The motion was approved unanimously. 2.~A resolution of the Redevelopment Agency of the City of the Bakersfield authorizing investment of Redevelopment Agency monies in the Local Agency Investment Fund (LAIF). City Manager George Caravalho explained that this resolution will allow the City Treasurer the flexibility to invest monies within the State when the investment pool interest rates paid by the private sector are greater than our normal investment markets. Agency Member Dickerson made a motion to adopt the resolution. The motion was approved by the following roll call vote: Ayes: Salvaggio, Dickerson, Christensen, Childs Noes: None Abstaining: None Absent: Moore, Ratty, Smith REPORTS: 1. Proposed Business Terms of the Center City Project Economic Development Director Dave Kennon gave a report regarding the business terms and the scope of work. He indicated that although these have been completed, the attorneys are working to get the Disposition Development Agreement completed at this time. The terms, as they are delineated in the report from Kaiser-Marston & Associates to the Agency, indicates the development team will build an office tower of seven stories containing approximately 100,000 square feet. Mr. Kennon recommended that the negotiation period be extended another 30 days, in order to complete the draft of the DDA. A public hearing will be held on the 9th of July. Mr. Ron Beardsley, representing Beardsley Development, general partner of the development team, and PSL as a limited partner, gave a report on the Center City Office Commercial project and pointed to a photo montage showing a seven story building, approximately 104,000 square feet, and a parking structure containing three levels of parking. The main tower will be at 17th & L. The construction tech- nique is a precast concrete building, which is of a quality level above anything else that has been constructed to date. It has a cen- tral core elevator with two high speed elevators, with landscaping and set-backs at the ground level. The garage next to Paramount Savings will come out and be landscaped. The proposal calls for the closing of one-half of "K" Street. They have been conscious from the start of trying to make the three level parking garage on a human scale. They have a plan adopted now which is flexible enough to provide some additional parking, if ever needed, for the Haberfelde Building. -2- The office building created has been designed to attract renters. Mr. Beardsley indicated that they have been out marketing the project, and to date have a very strong interest from two major tenants and have approximately 15 to 18 thousand square feet worth of letters of intent. Agency Member Christensen asked how much surplus parking there was surrounding the project. Mr. Beardsley indicated that the building has been designed to accommodate an additional parking level at the City's expense to accommodate the Haberfelde Building. Agency Member Dickerson asked how much the additional level of parking would cost. Mr. Beardsley replied that the cost would be approximately $800,000. Acting Chairman Childs indicated that the Haberfelde Building needs to be taken into consideration for parking facilities. He indicates that he supports this project, but something must be done for Haberfelde. Economic Development Director Dave Kennon gave the Agency some insight on what that project will support in additional parking. The issue for additional parking is real and the City has set out to determine the value and the size of the market for parking. At this point in time we have hard commitments to lease at least fifty spaces at market rate. Mr. Ben Benton made a statement regarding the parking problem for the Haberfelde Building. Mr. Benton stressed the need for parking and asked the Agency to consider the Haberfelde Building as a historical structure. Acting Chairman Childs made a motion to extend the period of nego- tiation for 30 days to allow the Agency's, special counsel to draft a proposed Disposition Development Agreement for the Center City pro- ject. The motion was approved by group vote. Acting Chairman Childs also made a motion to direct staff to imme- diately begin negotiations with Mr. Ben Benton regarding his parking situation. -3- Economic Development Director Dave Kennon indicated that he had several meetings with Mr. Benton and that Mr. Benton wants the City to provide him the parking at little or no cost. Mr. Kennon indicated we are looking for ways of underwriting the cost of that parking insofar as Mr. Benton is not willing to make an investment in the parking. Agency Member Christensen questioned the group vote for Item F.i., "Proposed Business Terms of the Center City Project". He also asked if the motion was carried. Acting Chairman Childs indicated that it was carried by a 3-1 vote. Agency Member Christensen asked for a roll call vote on Item F.1. Acting Chairman Childs checked with City Attorney Oberholzer if the Agency had a quorum for this meeting. Because of three (3) ayes and one (1) nay, he asked if the motion passed? Agency Member Dickerson made a motion that the motion on Item F.1. on the Agenda, be reconsidered and take a roll call vote. This motion was approved by a unanimous vote. Agency Member Dickerson made a motion for a five minute recess at 5:45pm. The Redevelopment Agency meeting reconvened at 5:50pm. Mr. Richard Monje made a statement on behalf of the Center City Office Commercial Project. He indicated that the problems of the Haberfelde Building are not due to parking alone. If the amount of parking that is needed for Center City Office project, than the office structure. the Haberfelde Building is built on the the parking structure will become larger The motion on Item F.i., "Review business terms and extend period of negotiation for 30 days to allow the Agency, special counsel to draft a proposed Disposition Development Agreement for the Center City project" was defeated by the following roll call vote: Ayes: Childs, Salvaggio Noes: Christensen, Dickerson Abstain: None Absent: Moore, Ratty and Smith Acting Chairman Childs questioned the legality of the defeat of the motion which had been previously approved. -4- City Manager George Caravalho replied by saying motion failed. He expressed concern, and suggested that this item be deferred until all of the Agency Members are present at the Agency meeting. Also, he said that the City went through a lengthy process to get this project and indicated that the Agency is sending mixed signals to the people we are working with. He indicated that the Agency needs to decide if it is in the business of redeveloping downtown, and if not, it's time to get out of the business because a lot of time, money and efforts are being wasted. Agency Member Dickerson made a motion that this item be considered when the full Agency is present and available. City Attorney Oberholzer replied by saying that the project is "dead". The deadline has not been met and the Agency has decided not to extend the deadline, therefore there is no longer an agreement. A new agreement will have to be entered into with a new developer or with the same developer if the Agency wants to proceed with the pro- ject downtown. Agency Member Dickerson made a motion for a five minute recess. Acting Chairman Childs asked for a roll call vote. The motion was approved by the following roll call vote: Ayes: Salvaggio, Dickerson, Christensen Noes: Childs Abstaining: None Absent: Moore, Ratty and Smith A five minute recess was called at 6:05pm. The Redevelopment Agency meeting was reconvened at 6:10pm. Agency Member Salvaggio asked that one of the members of this Agency make a motion to rescind the previous motion that was voted on or the Agency is going to send "shock waves" throughout the community and it will be just another indication that the Council does not know what they are doing as the Redevelopment Agency. The whole community is keeping an eye on the Agency and will feel that perhaps the Agency should be turned over to a private group that knows what they are doing. -5- City Attorney Oberholzer expressed concern that the full Agency is not represented this day, two members that are active are absent. A member of the body could make a motion to review the business terms and extend the period for negotiations for two weeks when the full Agency will be present, at which time it could then be determined whether or not the Agency wants to grant additional extensions to com- plete negotiations. Acting Chairman Christensen made a motion to reconsider the previous vote. The motion was approved unanimously. Agency Member Christensen made a motion to review business terms and extend period of negotiation for 30 days to allow the Agency's, special counsel to draft a proposed Disposition Development Agreement for the Center City project. The motion was approved by the following roll call vote: Ayes: Salvaggio, Christensen, Childs Noes: Dickerson Abstaining: None Absent: Moore, Ratty and Smith 2. Proposed Kern County Administration Facility City Manager George Caravalho gave a brief report and referred to a motion on the County Administrative Building that was approved by the City Council to be transmitted to the Board of Supervisors that the City supports the option with a modification that there would be an exchange of the property valued at $2.8 million or consider another proposal. The Board of Supervisors were not in favor of the City's proposal and discussed various alternatives. In concluding the discussion, Mr. Caravalho asked the Board of Supervisors to allow the City a little more time to work with their staff and the developer to refine the proposal to meet the County's criteria. This will be on the Board of Supervisor's Agenda for their meeting of June 10. The City is continuing negotiations with the County and the developer and substantial progress is being made. A report will be made to the Agency and the Council in the packets to be delivered on May 30th for the next meeting of June 4th. Based upon discussions with Board mem- bers and their staff, it seems to be the City's last opportunity to bring closure to this proposal. -6- Agency Member Salvaggio asked Mr. Tom Anton, Counsel to Carver Development, to give a brief report on the County Administration pro- ject. Mr. Anton made reference to a proposal to the City Council and City Staff to build the Administrative building and parking structure on the south side of Truxtun Avenue so it is contiguous with the pre- sent county buildings. This project will be built without any monies being expended by the City. Carver Development will pay the $3.2 mil- lion to acquire the property. He asked that the City to do all that is necessary to give Carver Development the opportunity to acquire that property. If the City can deliver the property, Carver Development will to pay the $3.2 million to build the project. Agency Member Salvaggio asked if Mr. Anton is going on record by saying that the City would not have to provide the $3.2 million assis- tance to the County. Mr. Anton confirmed positively. Mr. Richard Monje, Attorney, spoke regarding the County Administration project. He indicated that he submitted a letter to the County regarding the McCarthy position and indicated that they have guaranteed a price of $22.9 million backed up by a bid bond of $2.3 million with an ability to begin and complete the project by December 1987. It will be catty-corner to the present site. Mr. Monje indicated that McCarthy is not competing with the Carver propo- sal, the McCarthy proposal was developed because it became very clear that Carver Development may not get the project. Mr. Monje indicated that they have a project that meets with the County's criteria and it doesn't require any financial contribution from the Agency or the City, the property is already within the Agency boundaries. He asked that the Agency indicate their support of the McCarthy project if the County should not support the Carver project. Mr. Monje stressed that they are not competing with the Carver project, but if the County should decide against the Carver project, the McCarthy project is available for consideration. Agency Member Christensen indicated that the County Board of Supervisors are the ones that will make the decision on the Developer for the County Administration building. -7- Agency Member Christensen made a motion to Direct staff to meet with McCarthy and the County staff and Members of the Board of super- visors regarding McCarthy's proposal and the Carver proposal and have the County reach a decision. This motion was approved by a unanimous vote. CONSENT CALENDAR 1. Claim Vouchers #235 to 247 totaling $4,527.01. Agency Member Dickerson made a motion to approve Claim Vouchers totaling $4,527.02. This motion was approved unanimously. There being no further business to be brought before the Redevelopment Agency, Agency Member Chirstensen made a motion to adjourn the meeting at 6:40pm. irman James H. Chil~ -8-