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HomeMy WebLinkAbout11/20/85 MINUTES RA MINUTES BAKERSFIELD REDEVELOPMENT AGENCY CONTINUED MEETING -- NOVEMBER 20, 1985 The continuance of the Bakersfield Redevelopment Agency meet- ing from November 13, 1985 was called to order by Acting Chairman James Childs on Wednesday, November 20, 1985 at 5:02pm in the City Hall Council Chambers. The Secretary called the meeting to order as follows: MEMBERS PRESENT: James Childs J.M. Christensen Mark Dickerson Rollie Moore Mark Salvaggio Patricia Smith ABSENT: Donald Ratty A motion made by Acting Chairman Childs to elect Agency Member Rollie Moore as new Chairman of the Redevelopment Agency was defeated by the following roll call vote: AYES: NOES: ABSENT: Agency Members Childs, Moore and Smith Agency Members Christensen, Dickerson and Salvaggio Agency Member Ratty A motion made by Agency Member Dickerson that this election be deferred to the next scheduled Redevelopment Agency meeting was approved by the following roll call vote: AYES: NOES: ABSENT: Agency Members Christensen, Dickerson and Agency Members Childs, Moore and Smith Agency Member Ratty Salvaggio A motion made by Acting Chairman Childs that there be recon- sideration of the previous motion to elect Agency Member Rollie Moore as Chairman of the Redevelopment Agency was defeated by the following roll call vote: AYES: NOES: ABSENT: Agency Members Childs, Moore and Smith Agency Members Christensen, Dickerson and Salvaggio Agency Member Ratty -1- B. REPORTS 1. Senate Bill 690 and Assembly Bill 265 Economic Development Director Dave Kennon reported on the impacts of AB-265. The law as it exists requires that project areas adopted after August 1976, set aside 20% of the tax increments gener- ated from those areas for low and moderate income housing. AB-265 makes this set-aside requirement retroactive to include all of the project area, subject to a Resolution that will be brought to the next Redevelopment Agency meeting. Acting Chairman Childs called a five minute recess at 5:10pm in order that those individuals wishing to make public statements may have an opportunity to sign-up. The meeting was again called to order at 5:15pm. C. NEW BUSINESS 1. Center City Office Commercial Development City Manager George Caravalho gave a report regarding the three developers that submitted proposals for the City Center develop- ment in the downtown. The Coleman Co. proposal will provide a parking structure with somewhere between 650 to 750 parking spaces. The pro- ject will have a direct impact on the 19th Street area. The ground level parking structure will also contain about 20,000 square feet of retail commercial. Mr. Caravalho indicated that the staff feels that the project addresses those concerns of the City and allows the City to masterplan this area and deal with the parking deficiency through- out the project area. Based upon this criteria, it is staff's recom- mendation that the Agency get involved in an exclusive right to negotiate with the Coleman Development Company for the purpose of developing a Center City Office Commercial Project. PUBLIC STATEMENT Mr. Robin Ablin, Partner, Ablin-Klassen Co. gave a statement regarding the proposal from Ablin-Klassen Co. regarding the Center City Officer Commercial Development, encouraging the Agency to con- sider their proposal. -2- Agency Member Christensen asked Mr. Caravalho why the Mosesian project had not moved forward. City Manager Caravalho responded by saying that it was his understanding that the Mosesian Co. was unable to get financing for the project. Agency Member Christensen asked what language was suggested with regard to the bank's concerns. City Manager Caravalho replied by suggesting a motion to "direct staff to develop an exclusive right to negotiate with the Coleman Co. with the purpose of developing a Center City Office Commercial project. Such agreement shall also address the concerns raised by the Community First Bank dealing with the property both on the stated project site as well as on the Chester Avenue site." Agency Member Christensen asked if it was not possible for the Mosesian project to move ahead as well as the Coleman project? City Manager Caravalho answered that what the Agency needs to do is select a project and move forward that project to assure suc- cess. Agency Member Christensen asked why there were still many vacancies in the Bank of America Building. Mr. Kennon replied that at last report Bank of America had ten percent (10%) vacancy rate, which is generally blamed on the lack of adequate parking. They are proposing to correct this problem with an additional level to their parking structure. Agency Member Moore asked the City Manager to respond to the Public Statement made by the representative of the Ablin-Klassen Co. Mr. Kennon responded to Mr. Moore's request by referring to the staff's analysis and indicated that three basic issues were con- sidered. A quantitative analysis was made. Also a judgment of the secondary impacts of the project, as it was proposed was considered and also they looked very closely at the developer's experience. In terms of the economics or the quantitative issues, it was felt that the Coleman project was more viable. -3- Agency Member Moore made a motion to accept the recommenda- tion made by staff and select the Coleman Company as the project deve- loper. Agency Member Dickerson asked Mr. Kennon about parking in the Downtown. Also, Mr. Dickerson referred to the parking prob- lems in and around the Haberfelde Building and the Bank of America Building. Mr. Dickerson indicated he feels that the Coleman project does not address these concerns in this area, and that the City would not be able to build more than one of these projects in the next one year or two year span. He also asked that the Agency be very sure that this project is the one that we want to go with and accomplish the problems that need to be accomplished. Mr. Dickeerson suggested that later date to get input on one project. He expressed way. this meeting be reconvened at a the projects that we have rather than just that he feels that this would be the best City Manager George Caravalho replied by saying that there were extensive hearings on the Downtown Element of the General Plan and the Request for Proposal for this project was approved by the Agency and was public. The City needs to get a developer involved on a contractual basis so that we can get more specific as to what is actually feasible. Without that, the City will simply go out and per- form another planning exercise. Acting Chairman Childs commented that he has learned to value the expertise of City staff as well as the various developers, and expressed that the City, as a corporation needs to make a decision and once recommendations are received from staff and a developer. Mr. Childs expressed that he agrees with the staff recommendation of selecting the Coleman Co. project and at a future date the other pro- jects should also be considered. The City cannot continue to have individuals come before the Agency with projects and continually delaying them. It's important to make a decision. Mr. Childs indi- cated he supports the staff recommendation. -4- City Manager George Caravalho stated that he is concerned that anytime the City works with a developer it costs money. If one talks about an exclusive right and dealing with proformas, analysis, etc., it is costly, therefore if the Agency is going to get into pro- jects the Agency needs to take a strong, consistent position because a message is being sent out to the public. Also, Mr. Caravalho men- tioned that if the Agency is not sure about redevelopment, then it should get out of it before there's a lot of money invested in it. He stressed that he thinks the Agency should give staff a policy as to what they expect to be done, the area where it should be done and the rest should be left up to the experts. Agency Member Moore spoke regarding the possible change in location and expressed that it would be extremely unfair to the devel- opers that have come forward through an RFP process where we desig- nated what the City wanted and where it wanted the project and now change the perimeters of where we want the project. The ability of the Agency to participate in the area would be extremely limited. Agency Member Moore reminded the Agency that we showed concern for the blighted area on 19th Street and wanted to start to eliminate that problem. As a part of that, the land banking process was used so that we might in fact, enhance some sort of commencement for a change in that blighted area and that was the purpose of the RFP and the direc- tion that we have been going. The only way that we can be successful is to start with what we have done and continue with this process and not redefine what our objectives are at this time. Upon a roll call vote, the motion presented by Agency Member Moore was defeated by the following vote: AYES: Agency Members Childs, Moore and Smith NOES: Agency Members Christensen, Dickerson and Salvaggio ABSENT: Agency Member Ratty Agency Member Dickerson made a motion that the Agency con- sider these projects in the month of January 1986 and consider putting this project on 19th Street between "L" and "M" Streets and the prac- ticality of using surface parking rather than a parking structure. -5- In addition to that, that we evaluate the need between "K" & "L" Streets. Acting Chairman Childs made a comment for parking on 17th that the Agency is by no means experts in everything, such as where parking should be, where development should be, or where the front of a building should be. The City has experts and pay them a substantial salary to make these recommendations to us. The Agency continually gives negative signals to the community. Mr. Childs also expressed that the Agency is doing a disservice to the community and to the individuals that give us expert advice, as well as the developers and the business people in the community. Also, he expressed that an unfortunate decision had just been made. Agency Member Moore addressed the motion that Mr. Dickerson made by indicating that he feels that it would be unfair to the devel- opers to be held in limbo through this long a period of time. They have made a valiant effort to come forward and indicated their support for downtown and their projects. It looks as though it is being sug- gested that the entire redevelopment process be reevaluated and sug- gested that this be done in a workshop and address these things but not leave the developers in limbo. He also asked that the Agency define its goals and what the Agency wants to do with redevelopment. This was suggested as a substitute motion. Agency Member Dickerson indicated that he does not view this as a defeat for these proposals. He looks at this as time to recon- sider or review further. Agency Member Christensen expressed that this defeat is not killing the proposal at all. He feels that there is a lack of rela- tionship between the staff and the Council. He indicated that the staff deals with only a few and letting them on the inside. He indi- cated that the first time he knew of this project he read it in the papers. City Manager George Caravalho indicated that the meeting prior he made a report to the Agency about the proposal. The article in the newspaper appeared in Tuesday's paper, each of the Council members -6- were sent a report to their homes, delivered by the Police on Friday, the week-end before the article in the newspaper. Mr. Caravalho expressed shock by the action of the Agency. For the last month he has given many speeches about the redevelopment of our downtown. He expressed that people are very interested in the projects in downtown such as the hotel. He indicated that the Agency is continuing to send negative message to these people who are ready to close a busi- ness deal for downtown. A motion to conduct a workshop for Agency Members was approved unanimously. A motion to adjourn was defeated by the following roll call vote: AYES: NOES: ABSENT: Agency Member Moore Agency Members Childs, Christensen, Salvaggio and Smith Agency Member Ratty Dickerson, Agency Member Dickerson made a motion that following the City Council meeting the Redevelopment Agency meeting would continue was unanimously approved and The meeting was Childs. President of Development, the Agency meeting was recessed at 7:00pm brought to order at 7:14pm by Acting Chairman A public statement was made Coleman Co. by Mr. John Bodenburg, Vice Mr. Bodenburg expressed that he wasn't asking for approval of the project, just an exclusive right to negotiate. He said the project's final form might be changed to meet concerns of the City and landowners. Mr. Bodenburg said the Agency's rejection left him with a "bad taste" and if the Agency continues put off developers, the enthusiasm is going to die. Personally, he expressed disappointment because he felt the Coleman Co.'s reputation was tarnished, where they have worked hard to build it up. If the Redevelopment Agency wants to take a few months to look at whether they want to do redevelopment, the Coleman Co. may no longer be inter- ested in a proposal like this. They have other projects to do. Agency Member Moore made a motion to reconsider the previous "motion to direct staff to develop an exclusive right to negotiate -7- with the Coleman Development Company for the purpose of developing a Center City Office Commercial Project. Such agreement shall also address the concerns raised by the Community First Bank dealing with the property both on the stated project site as well as on the Chester Avenue site." Agency Member Dickerson expressed that it is difficult to understand the signals that are being generated. He's not sure what this motion sends. He indicated that he is going to vote "no" again. The focus here is that he needs more time to review this propo- sal. He will evaluate all of this and make the best possible deci- sion. Asked that we wait to make a decision in January 1986. Agency Member Moore indicated that this motion is in order to review to concept of what we set out to do and if this is not the case, then we should terminate this and continue another direction such as having a workshop to determine what the desires, philosophy and development process is going to be in the future rather than keep- ing the developers on the line. Mr. Moore indicated that the devel- opers have spent much money and time to come forward with their proposals. The motion to accept staff recommendation to accept the Coleman Co. to develop an exclusive right to negotiate was defeated by the following roll call vote: AYES: Agency Members Childs, Moore, Smith NOES: Agency Members Christensen, Dickerson, Slavaggio ABSENT: Agency Member Ratty Agency Member Moore made a motion to terminate this project and commence with the workshop at the earliest opportunity and deter- mine the philosophy and goals of the Agency towards the center core of the community. Agency Member Dickerson indicated that the workshop had already been voted on and made a substitute motion to continue this process of reviewing these proposals to the first available regular meeting in January and make a determination, or when sufficient mem- bers of the body want to have a special meeting to discuss this. -8- Acting Chairman Childs recognized Attorney Richard Monje, representing Peter P. Mosesian Co. Mr. Monje asked that the Agency not follow at least half of Mr. Moore's motion to terminate the the whole process and go back to a workshop. He expressed that he asks this on behalf of all three deve- lopers. All developers have a substantial investment. Asked that the Agency set another meeting as soon as the Agency is comfortable and perhaps ask all of the developers to submit further written informa- tion, and make presentations but give them one last chance to decide. Mr. Monje indicated that the Mosesian Co. will not give up this pro- ject if the Agency waits until January to make a decision. Mr. Robin Ablin also made a statement on behalf of the Ablin-Klassen Co. regarding this project and expressed that he under- stands the Agency members desire to postpone making a decision until January. Mr. Ablin expressed that postponment will not affect the Ablin-Klassen Co.'s enthusiasm and are willing to wait until the Agency is comfortable in making a decision. The motion to have another meeting of the Redevelopment Agency to consider the project until January 8th was approved by the following roll call vote: AYES: Agency Members Smith, Salvaggio, Dickerson, Christensen NOES: Agency Members Moore, Childs ABSENT: Agency Member Ratty A motion to adjourn was made by Acting Chairman Childs was approved at 7:50pm. Chairman Bakersfield Redevelopment Agency -9-