HomeMy WebLinkAbout03/27/85 MINUTES RAMINE, TES
BAKERSFIELD REDEVELOPMENT AGENCY
Regular Meeting--March 27, 1985
The Regular Meeting of the Bakersfield Redevelopment Agency
was called to order by Chairman Rockoff on Wednesday, March 27,
1985, at 5:05 p.m. in the City 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
AGENCY STATEMENTS
Agency Member Christensen stated that rumors are circulating
that efforts are being made to bring the Truxtun Galleria project
back for consideration. He explained that the project has been given
more than its fair share of staff and Agency time, and to devote
more of the City's limited resources to the Galleria can only come
to the expense of other potential developments.
REPORTS
1. Report from AIRCOA regarding financing for the proposed
Convention Center Hotel.
Mr. Gordon Bell, representative of AIRCOA, stated that on
Monday, March 25, he received a letter of commitment from the
Bank of America for the $14 million in the form of a letter of credit
that will be used to support the lending on the hotel. He stated
that the letter, which expires on April 30, 1985, is explicit in
all of the requirements that are standard to a mortgage lending under-
writing. He stated that this letter has been submitted to Agency
staff to be reviewed by the legal counsel.
Mr. Bell explained that the hotel project is an $18 million project.
The financial structure involves $4 million of equity which will be
cash investments by limited partner investors. AIRCOA is investing
$1 million of working capital in order to support the hotel during
the start-up phase. He stated that the letter of credit covers the
$14 million mortgage debt. The bank, as part of its commitment, has
requested that the developers provide backup collateral of $4 million
therefore increasing the commitment by the developers from $5 million
to $9 million. He stated that the additional $4 million is collateral
as opposed to actual cash investment, and it is at risk, should the
project not be financially successful. He indicated that the bank
has requested that the credit be separate from and attachable from the
hotel so that it is a liquid asset that is attachable by the bank.
The net effect is that it reduces the risk of the bank, but it does
increase the capital commitment on the part of the developer. He
stated that they are proceeding with three different alternatives
for meeting the requirements. Mr. Bell further explained that the
provision of collateral changes the relationship between the limited
partner, AIRCOA and Bob Corsaro, in the ownership of the project. It
changes the equities and ownership in the project.
Agency Member Childs stated that he very much favors the hotel
project. He questioned the date in which staff received the letter
of credit, and what information contained within it could not be
viewed by the Agency.
Mr. Kennon stated that the letter was received by staff this
afternoon. He explained that there are confidential finances and
credit data of the developer and those participating in the develop-
ment that the staff and Agency are obligated to hold in confidence.
BAKERSFIELD REDEVELOPMENT AGENCY MEETING, MARCH 27, 1985 - Page 2
Executive Director Caravalho stated that the issue is
confidentiality between the Agency and a partner. He stated that
they are not differentiating between the staff and Agency members,
but that staff is obligated to keep it confidential.
Agency Member Childs questioned the status of the DDA and if
there was a penalty phase associated with financing at this time.
Executive Director Caravalho stated that the Agency could go
through the process of default if the Agency feels the developer
is not performing to the best of his ability to gain financing.
Mr. Bell stated that they are well beyond the time schedule
as established in the DDA, and requested that the DDA Schedule of
Performance be coterminous with the first meeting of the Agency
beyond April 30 in order that the developer may come back with a
final arrangement on the $4 million.
City Attorney Oberholzer stated that the Agency should take
some action as to whether to proceed, or default, in order to
provide some acknowledgment from the Agency that they will extend
to April 30.
Agency Member Dickerson questioned how long the Agency con-
tinues a project on a handshake. He questioned if the Agency is
keeping anyone else from participating in this project. He also
expressed concern about the consistency with the redevelopment
projects.
Executive Director Caravalho stated that each project should be
treated on its own merits because they are very complicated projects.
He commented that as long as they are working diligently to comply
with the DDA, then the Agency should be encouraging and supportive.
Agency Member Dickerson made a motion to grant an extension
to the developer until May 10 for the financing.
City Attorney Oberholzer stated that there are other dates that
will be affected and suggested that the Agency wait for a firm date
of financing and then proceed with making corrections to the entire
Schedule of Performance. He stated that until the developer is put
on notice, then he is still performing.
Agency Member Dickerson withdrew his motion.
Presentation by Agency consultants regarding important
urban design decisions in the downtown.
Mr. Kennon stated that in August of 1984, the Agency approved
the Redevelopment Element of the General Plan which deals with
the urban design problems and land use in the downtown in a progressive
fashion.
Mr. Harry Tow, of Quad Consultants, stated that they are working
with the urban design firm of Daniel, Mann, Johnson, Mendenhall (DMJM)
with respect to updating the Zoning Ordinance insofar as it involves
implementation of the downtown program.
Mr. Ron Landy, of DMJM, planning, engineering and urban design
consultants, gave a brief slide presentation on the urban design
elements that his firm has worked on in the past and provided some
ideas that they will use for Bakersfield. He explained that urban
design should provide a focus on excitement which images the future of
what downtown Bakersfield can be.
Report from Executive Director regarding the status of
developer selection for the proposed Downtown Regional
Shopping Center.
Executive Director Caravalho stated that several weeks ago staff
sent information packages to a number of department stores to express
BAKERSFIELD REDEVELOPMENT AGENCY MEETING, MARCH 27, 1985 - Page 3
what the City wants to accomplish as well as provide some basic
information. Since that time, staff has received some response
from department stores. Staff also sent a package of material
including a Request for Qualifications to developers in order to
select someone to be the developer of the shopping center prior to
the first of May. He stated that interest has been received from
developers, and a management technical team will be established to
review the proposals. The three strongest proposals will be selected
for further consideration and for the purpose of making a presentation
to the Agency in late April or early May.
CONSENT CALENDAR
(a) Approval of Vouchers No. 195 through 232 totaling
$43,405.83.
(b) Approval of Design Review Board recommendations:
Transmission Tower for
Californian located on
building.
the Bakersfield
the Bank of America
2. Signage for the Potato Shed, 1804 Chester Avenue.
3. Exterior Paint and Signage for the Showcase Theatre
1300 19th Street.
4. Awnings for American Jewelry, 20th and Eye Streets.
[,pon a motion by Agency Member Barton, items (a) and (b) of the
Consent Calendar were approved by the following roll call vote:
AYES: Barton, Childs, Christensen, Dickerson, Moore, Rockoff
NOES: None
ABSENT: Ratty
NEW BE, SINESS
(a)
Resolution of the Redevelopment Agency of the City of
Bakersfield fixing the dates of meetings of the Agency
during the months of April through December, 1985.
Agency Member Barton made a motion to approve the Resolution
of the Redevelopment Agency fixing the dates of meeting so the Agency
during the months of April through December, 1985.
Agency Member Dickerson made a substitute motion to adopt the
Resolution with the exception of June 26, 1985.
Executive Director Caravalho stated that this date has been
scheduled for approving the Agency's budget.
Agency Member Dickerson withdrew his substitute motion.
Agency Member Barton's motion, to approve Resolution No. RA1-85
of the Redevelopment Agency fixing the dates of meetings during
the months of April through December, 1985, was approved by the
following roll call vote:
AYES: Barton, Childs, Christensen, Dickerson, Moore, Rockoff
NOES: None
ABSENT: Ratty
ADJO[,RNMENT
There being no further business to come before the Redevelopment
Agency, Agency Member Christensen made a motion to adjourn at 5:05 p.m.
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ARTH[R L. 'RO~OF~ C.h.F/rman
Bakersfield Re~e~/e~ Agency