HomeMy WebLinkAbout02/20/85 MINUTES RAMINUTES
BAKERSFIELD REDEVELOPMENTS AGENCY
Special Meeting--February 20, 1985
The Special Meeting of the Redevelopment Agency was called to order
by Chairman Rockoff on Wednesday, February 20, 1985 at 5:06 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
REPORTS
1. Report from staff regarding the proposed changes to the
Truxtun Galleria project.
Executive Director Caravalho stated that at the last Agency meeting
the Agency directed staff to analyze and review the proposal and come
back with a recommendation. He explained that as of this afternoon they
have reached an agreement on a proposal which he outlined to the Agency.
The modifications include two fourteen story towers and the inclusion
of the Butterfield Savings' site. The towers are turned inward, the
parking will be above ground, and retail will be located in the
towers and at the Butterfield Savings' site. The office space will be
reduced to 312,000 square feet and the retail will be 75,400 square
feet. The mall area will be reduced to 29,400 square feet, parking
will be reduced to 1,060 spaces, and the site area is reduced to
100,200 square feet because of the elimination of the Hall of Records
site. The cost for the proposed acquisition of the properties is
reduced to $2.8 million, the relocation cost is $250,000, and the
demolition costs will be $285,000, administrative costs are $50,000, and
lease payments for parking will be zero for a total of $3.7 million.
The total net cost savings will be $2.1 million. He stated at this time
the Agency will need to set a public hearing for the approval of the
Amended Disposition and Development Agreemnt (DDA) on March 13, and
establish a hearing date for the Resolution of Necessity for March 20.
Agency Member Barton made a motion that a public hearing be held
on March 13, 1985 to consider the Amended Disposition and Development
Agreement for the Galleria project.
In response to Agency Member Moore's question, Mr. Kennon stated
that the closure of Eye Street was studied when the Environmental
Impact Report was initially drafted for the original project.
Agency Member Moore questioned the total cost of the project, and
the price that the City is selling the property for.
Executive Director Caravalho responded that $2.8 million is the
total cost.
Mr. Cal Hollis, Financial Consultant for the Agency, stated that
the developer would pay a total of $1 million for the property. He
stated that the total land and improvement costs have been estimated to
be $2.9 million. He explained that $2.4 million is being paid to
private land holders, and $500,000 is being paid for the City-owned
property.
Agency Member Moore questioned if this proposal represents a new
project.
Mr. Dave Beatty, Special Council for the Redevelopment Agency,
responded that it is not a new project, but it is a significant change
to the original concept, therefore, the City is required to hold
a public hearing and prepare reports in accordance with that. He
stated that the members can vote on this as a new project, because they
REDEVELOPMENT AGENCY SPECIAL MEETING, FEBRUARY 20, 1985 - Page 2
have the discretion with regard to voting for significant amend-
ments to the DDA.
Agency Member Moore expressed concern that the location of the
project is in the least blighted area within the Redevelopment Agency
boundaries, and that the type of project is primarily office space when
there is an abundance of office space in the downtown. He stated
that his constituents have overwhelmingly opposed an office complex in
this area. He stated that he has not had an opportunity to vote his
conscience because he felt morally and legally obligated to uphold the
contract which he had inherited in this project. This proposal
for a new project creates the necessity for a new contract between the
City and the developer.
Agency Member Dickerson questioned how the reduction occurs between
the original project and the new proposal for the Agency.
Mr. Cal Hollis responded that the reduction from $5.5 million to
$2.7 million is a combination of three factors: 1) a reduction of the
site; 2) the requirement for the Agency to lease parking spaces from
the developer which has been eliminated; and 3) the developer's
purchase price has increased from $500,000 to $1,000,000.
Agency Member Childs made a substitute motion to call for termination
of the project.
In response to Agency Member Childs' question, Executive Director
Caravalho stated that the denial would probably have some impact on
redeveloping downtown Bakersfield. He stated that there is a need to
create some confidence in downtown redevelopment. He explained that
the development must occur in peripheral areas in order to encourage
activity and provide a more positive impact in the areas that are more
crucial. He stated that there has been tremendous costs incurred in
this project.
Mr. Hollis stated that they have some concern that if something
does not happen in the near future in the downtown, that it may lose
its opportunity. The developer has continued within this project for
two years. Many developers would not have.
Agency Member Christensen stated that his constituents expressed
concern that there is no need at this time for offices in the downtown,
but that there is a need for department stores and shopping centers.
Agency Member Dickerson expressed concern that there was not enough
time allowed for the members to study the activities before making
a decision.
Ms. Martha Walters, citizen, asked several questions and stated
that staff indicated at the last meeting that they have never seen any
documents indicating who the tenants would be.
Mr. Hollis stated that the developer has the commitment from the
Bank of America to financing the project, and staff has been told that
this project meets their pre-leasing requirements.
Agency Chairman Rockoff stated that the City Council and the
Planning Commission adopted a Resolution for a commitment to downtown
redevelopment. He stated that the developer has proceeded in good faith
even though there were individuals who opposed the acquisition of the
Hall of Records. He indicated that with the negotiations of staff and
the developer, this project is approximately $2 million less costly to
the Agency. This project should continue because it would send
positive signals to other develoeprs and give credibility to commit-
ments made by the Agency.
Agency Member Christensen stated that Bakersfield is one of the
fastest growing development cities, and there are several developing
companies or individuals that are interested in developing downtown.
He stated that Bakersfield needs shopping centers, not office buildings.
REDEVELOPMENT AGENCY SPECIAL MEETING, FEBRUARY 20, 1985 Page 3
Agency Member Childs expressed concern for the preservation of
downtown, and that the development could have a positive impact on the
Lakeview area.
Mr. Kenny Reed, President of the Downtown Business Association,
stated that Agency Member Moore commented that his constituents could not
support new office space downtown because of the 40 percent vacancy rate.
He explained that the 40 percent exists because the older buildings could
not supply the types of facilities and space required by large companies.
He further commented that Mr. Moore's constituents would be hard pressed
to support more office space in downtown because they view this as
competitors.
Agency Member Dickerson made a motion for a five-minute recess at
6:30 p.m.
The Redevelopment Agency meeting was reconvened at 6:40 p.m. by
Chairman Rockoff.
Agency Member Moore responded to Mr. Reed's statements stating that
the proposed area is the least blighted area in the Project Area. He
stated that he is in support of downtown redevelopment, and that there
are a lot of proposals for development, none of which are office space.
He stated that not one of his constituents which were contacted suggested
that this project be located in the southwest.
Agency Member Dickerson expressed concern regarding the vacancy
rate in the Bank of America building.
Mr. Hollis stated that the vacancy information is available, and
clarified that the property was recently purchased which would indicate
that it is a valuable piece of property.
Agency Member Childs withdrew his substitute motion to terminate
the project.
Agency Member Barton's motion to schedule a Public Hearing for
March 13, 1985, to consider the Amended Disposition and Development
Agreement for the Galleria project was approved by the following roll
call vote:
AYES: Rockoff, Barton, Childs, Dickerson
NOES: Moore, Christensen
ABSENT: Ratty
Agency Member Dickerson stated that he is voting to discuss this
project further, not to approve it. He requested that the Agency not
take any further action until the Agency decides where it wants to go
with this project.
Agency Member Barton made a motion to schedule a Public Hearing
for March 20, 1985 to consider the Resolution of Necessity for the
Galleria project, which was defeated by the following roll call vote:
AYES: Barton, Childs
NOES: Moore, Rockoff, Christensen, Dickerson
ABSENT: Ratty
ADJOURNMENT
There being no further business to come before the Redevelopment
Agency, Agency Member Barton made a mo~ion to adjourn the meeting
at 7:01 p.m.
~/~'/: ~/,.~'I ~ I,,/ ~' /co./ /
ARTHUR L. ROCKOFF,~airman
Bakersfield RedeveLopment Agency
Agency