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.
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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.
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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.
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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.
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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.
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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.
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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~
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