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HomeMy WebLinkAbout01/30/85 MINUTES RAMINUTES BAKERSFIELD REDEVELOPMENT AGENCY Regular Meeting-January 30, 1985 The Regular Meeting of the Redevelopment Agency was called to order by Chairman Rockoff on Wednesday, January 30, 1985, at 5:05 p.m. in the City Hall Council Chambers. The Secretary called the roll as follows: MEMBERS PRESENT: James Barton James Childs Chris Christensen Mark Dickerson Rollie Moore Art Rockoff MEMBERS ABSENT: Donald Ratty MINUTES Upon a motion by Agency Member Childs, the Minutes of the Regular Meetings of November 14 and December 12, 1984, were approved as presented. SCHEDULED PUBLIC STATEMENTS 1. Mr. Norman Walters, citizen, spoke in opposition to the use of eminent domain, and addressed the rights of property owners who are located in the area of the proposed Truxtun Galleria project. 2. Mr. Ralph Wegis, on behalf of Terry Moreland, stated that as a result of the County's decision not to sell the Hall of Records, they are proposing an alternative to allow the Agency to proceed with the agreement in assembling the site for the project. He stated that the changes are very minor, the square footage is almost the same to what is stated in the DDA. He stated that there is a slight encroachment upon the property owned by the City; approximately 80 feet. He stated that four pages of the DDA would need to be modified, and changes would have to be made to the description of the site which would require the elimination of the need for the Hall of Records property. He stated that this redesign would eliminate approximately a $1 million expense to the Agency. Mr. Wegis requested that the Agency refer this matter to staff in order that the developer can meet with the consultants and receive their advice as to whether they feel the changes are minor or major; to participate in a resolution of that matter and report back at the next scheduled meeting; and that they be allowed to move forward from that point. Mr. Bill Paynter, of Millard Archuleta, Eddy, Paynter and Associates, presented a design drawing of the changes relative to the project and provided insite into the design of the new proposal. He explained that one tower will be 14 stories in the first phase, and in the second phase there will be a 20 story tower with a retail Galleria between the towers. He commented that he would prefer the elevations to be equal. Agency Member Childs asked what the Agency's obligation is at this time with regard to the Galleria. City Attorney Oberholzer responded that with this new proposal, staff is not prepared to make a recommendation. He stated that there are changes to the DDA which will also require changes in the economic report. He indicated that although there may be changes on only a few pages, the overall project appears to be "different" than the original proposal. He recommended that the Agency refer this issue to staff for recommendation back to the Agency. BAKERSFIELD REDEVELOPMENT AGENCY, JANUARY 30, 1985 - Page 2 Agency Member Barton made a motion to refer the new proposal to staff and have a report back with a recommendation at the February 6, 1985 meeting. Mrs. Martha Walters, citizen, requested that there be an injunction against any further deliberations or actions on the Galleria project while the Grand Jury is pursuing an investigation. Agency Member Dickerson stated that there should be discussion by the Agency Members as to their feelings relative to the current ongoing investigation. Agency Member Childs stated that he believes an individual is innocent until proven guilty, and that there is no reason for delaying this issue if the Agency is going to continue with the Galleria. He commented that additional information is needed for this new proposal. Agency Member Moore questioned if the correspondence received from Bank of America, dated January 29, 1985, regarding an extension of the loan commitment to February 28, 1985, was acceptable to staff for the continuance of the financial obligation. City Attorney Oberholzer stated that the letters appears to extend the financing. Agency Member Moore questioned the status of the DDA as a result of the County's negating the sale of the Hall of Records. City Attorney Oberholzer stated that the agreement at this point recognizes no project from the standpoint that the Agency is unable to acquire the site. He stated that there is a provision in the DDA that says if the Agency could not acquire the site after a diligent effort, that the Agreement could be terminated. Agency Member Moore questioned if staff concurred with the Attorney's statement that the changes to the DDA are minor. City Attorney Oberholzer reiterated that staff has not had sufficient time to review the proposal. He stated that because the cost of construction would be less, another financial report would be necessary. He indicated that the Agency is in the position of a "no project," and a weeks delay would not jeopardize anybody's position. He explained that the Agency can amend the DDA or adopt a new DDA to accomplish the development. Agency Member Dickerson questioned if the Agency directs staff review the changes, would it set a precedent for continuing the project. to City Attorney Oberholzer indicated that no precedent would be set. Mr. Tommy Townsend, citizen, stated that the Chairman had at one time mentioned that the Budget and Finance Committee should set up some type of fine for developers so that they do not take advantage of taxpayers' money. He stated that if the Agency grants an extension, then a fine should be imposed. Agency Member Barton's motion to refer the new proposal to and have a report back with a recommendation at the February 6, meeting, was approved by the following roll call vote: AYES: Moore, Rockoff, Barton, Childs NOES: Christensen, Dickerson ABSENT: Ratty staff 1985, Agency Member Dickerson stated that the Agency has been involved with this project for more than two years, and that there are other developers who have other projects they want to present. Agency Member Childs stated that he was not present when the agree- ment was entered into with the developer, but that he feels that the Agency is a partner and that the Agency should be acting in good faith. BAKERSFIELD REDEVELOPMENT AGENCY, REGULAR MEETING, JANUARY 30, 1985 Page 3 Ms. Jean Kamrar, citizen, stated that this project will be very helpful to the downtown. She expressed support for a continued study of the project. REPORTS 1. Oral report from the Convention Center Hotel developer regarding financing for the project. Mr. Gordon Bell, representative of AIRCOA, stated that in November the legality of the use of Industrial Revenue Bonds was questioned, and as a result, the developer was not able to go forward with that form of financing. In December, they worked to identify alternative financing approaches using modified conventional financing forms. On January 11, 1985 they approached the Bank of America as an alternative to seek credit accommodations for this project. He stated that as of January 28, they have received a letter from the Bank of America which is not a financial commitment, but is a Memorandum of Understanding outlining and confirming the terms on which financing would go forward. He stated that the conditions are a normal part of any mortgage financing. He explained that they will immediately begin the work of the engineers and the architects in order to have the documents ready that will be necessary for the commitment. Agency Member Christensen and Agency Member Childs expressed concern that a written staff report was not available. Mr. Kennon responded that prior to this presentation by the developer, there was nothing to report on. Agency Member Dickerson expressed concern that the project should be moving forward. Mr. Bell stated that he would be prepared to report back in writing on the time schedule at the February 27, 1985 Agency meeting. DEFERRED BUSINESS 1. Request for additional tax increment funding for the Facade Grant Program. Agency Member Moore asked that since the program was intended to create incentive for rehabilitating the downtown, has there been positive response among other businesses that have not been a part of this program. Mr. Kennon responded that a number of the projects that have been completed have resulted in the upgrading of properties adjacent to them. The completion of Henley's Photo has resulted in two other buildings being upgraded. He stated that one aspect is the impact of creating new interest. He stated that this project was approved as an experiment to see what can be done to provide incentive, and this is occurring. Agency Member Moore questioned staff regarding their opinion on continuing one more year and come back at the next meeting with a recommendation of how to convert this into a program that would be self- sustaining whereby people that would be taking advantage of this program would support a pay-back system so that others could participate, and would therefore be at no cost to the Agency. Mr. Kennon stated that staff could provide a report on February 27. Agency Member Moore made a motion to approve an increase of $25,000 in the funding of the Facade Grant Program for this program year; to proceed with one more year of funding; and to have a staff report at the February 27 meeting on facilitating this program into a self-help program for the following year. Mr. Kennon Reed, President of the Downtown Business Association, expressed support for the program and the success in upgrading some businesses in the downtown. BAKERSFIELD REDEVELOPMENT AGENCY REGULAR MEETING, JANUARY 30, 1985 Page 4 Mr. Joe Henley, of Henley's Photo, stated that all his experiences with the Redevelopment Agency have been good and expressed support for this program. Agency Member Dickerson questioned staff regarding the method in which this program was advertised or promoted. Mr. Kennon responded that workshops have been held, circulars have been mailed out, and door-to-door contact has been made to inform the public of this program. Mr. Reed stated that they mailed circulars to over 300 businesses within the core area of downtown. He stated that they distributed newsletters and brochures with instructions to the public. Agency Member Dickerson requested that something be available from staff which would provide that new businesses moving into this area, or those who are issued new business licenses in this area, have some type of communication about participating in this activity. Agency Member Moore's motion to approve an increase of $25,000 in the funding of the Facade Grant Program for this program year; to pro- ceed with one more year of funding; and to have a staff report at the February 27 meeting on facilitating this program into a self-help program for the following year, was unanimously approved. CORRESPONDENCE Communication received from Bank of America to Terry L. and Peggy Moreland, dated January 29, 1985, regarding an extension of the loan commitment to February 28, 1985. 2. Communication received from Kathryn Kirby, dated January 25, 1985, in opposition to the Galleria project. Upon a motion by Agency Member Moore, the communications received from Bank of America, dated January 29, 1985, and from Kathryn Kirby, dated January 25, 1985, were received and placed on file. AGENCY STATEMENTS Agency Member Dickerson stated that there is an Jury investigation dealing with the Truxtun Galleria, Agency has taken no action on that issue. ongoing Grand and that the CONSENT CALENDAR (a) Approval of Vouchers No. 130 thru 177 totaling $209,915.42. (b) Approval of Design Review Board recommendations: 1. Signage for American Hearing Aid Co., 1414 Design Review Board recommends approval. 18th Street, 2. Signage for Bell Tower Associates, 1200 Truxtun Avenue, Design Review Board recommends approval. 3. Signage for Denton Shoe Service, 1926 "L" Street, Design Review Board recommends approval. Eipon a motion by Agency Member Childs, items (a) and (b) of Consent Calendar were approved by the following roll call vote: AYES: Christensen, Dickerson, Moore, Rockoff, Barton, Childs NOES: None ABSENT: Ratty the RECESS There being no further business to com~ before the Redevelopment Agency, Agency Member Moore made a motion to recess the meeting until February 6, 1985, at 5:00 p.m. G r~e~~~~ary Bakersfi'eld Redevelopment Agency ~THUR L. ROCKOF~, Chairr~jW Bakersfield Redevelopment/Rg~ncy