HomeMy WebLinkAbout08/29/84 MINUTES RA MINUTES
BAKERSFIELD REDEVELOPMENT AGENCY
Regular Meeting--August 29, 1984
The Regular Meeting of the Bakersfield Redevelopment Agency was
called to order by Chairman Rockoff on Wednesday, August 29, 1984 at
5:00 p.m. in the City Hall Council Chambers. The Secretary called
the roll as follows:
MEMBERS PRESENT:
James Barton
James Childs
Chris Christensen
Rollie Moore
Thomas Payne
Art Rockoff
MEMBERS ABSENT:
Donald Ratty
MINUTES
Chairman Rockoff questioned the error made regarding the
address for property under discuss at the last meeting and requested
an explanation.
Mr. Kennon responded that the misinformation came from the
owner of the property who incorrectly identified the property in the
proposals that they had submitted to the Agency. The address was
incorrect and a re-appraisal of the property will be made.
Upon a motion by Agency Member Barton, the Minutes of the
Regular Meeting of July 18, 1984 were approved as amended.
REPORTS
1. Report to the Agency regarding final conceptual plans for
the proposed Convention Center Hotel.
Mr. Kennon explained that one of the requirements of the Third
Implementation Agreement was the final conceptual drawings which must
be submitted for the Agency's review and approval. The drawings and
model presented for review by the Fire Department, staff of the
Auditorium, Engineering and Agency staff.
Mr. Gordon Bell, of Aircoa, was present and stated that one of
the important design requirements established was that the design
be compatible with existing architecture and functions of the
auditorium. He stated that they have been working with Security
Pacific Bank and have made significant progress in defining many
technical details for closing the bond issue.
Mr. Bell explained that the next step willbe to provide specific
design development plans for construction and then go into working
drawings to be completed before the end of the year. At the first
of next year they will apply for a building permit to begin con-
struction. He stated that within a very short period of time they
will have fixed-price bids on the hotel portion of the project.
Mr. Paul Chelminiak, Project Manager for Callison Partnership,
stated that the basic changes from the last plans are with the
re-orientation of the tower located parallel to Truxtun Avenue in
order to better integrate the ballroom and meeting room facilities
along Truxtun Avenue frontage. Mr. Chelminiak gave an overview of
the design for the project.
Upon a motion by Agency Member Moore, the conceptual plans for
the Convention Center Hotel and the support facilities for the con-
vention complex were approved by the following roll call vote:
AYES: Christensen, Moore, Payne, Rockoff, Barton, Childs
NOES: None
ABSENT: Ratty
REDEVELOPMENT AGENCY MEETING, AUGUST 29, 1984 Page 2
Report to the Agency regarding the extension of a contract
for professional services with Donald Renfro and Associates,
AIA. This contract will provide design consultant services
for the purpose of designing and construction administration
for the improvements of the Civic Auditorium, required as
a result of the Convention Center Hotel project.
Mr. Kennon stated that as a result of the hotel DDA, the Agency
took on the responsibility of the construction of a portion of the
proposed project, as well as the new additional storage area for the
auditorium. After the adoption of the Third Implementation Agreement,
a bidding process was held and Donald Renfro & Associates was hired.
As a result of the need for consultation and expert advise in other
areas, this firm helped in putting these designs together.
Because of the knowledge Renfro & Associates have gained in their
work on the initial design phase of this project, staff recommended
that the Agency allow Donald Renfro & Associates to provide services
for the design development and working phase.
Agency Member Payne questioned if the $860,000 includes every-
thing.
Mr. Kennon explained that this amount includes the cost of the
design and construction of the new storage area, but not the total
obligation of the Agency. The maximum amount for the design con-
sultant is $14,000. The cost of the services for the design/development
phase and working document phase is based on an estimate of the
overall project cost; approximately $80,000, which is not a fixed
amount. He stated that the estimated cost, at this time for the
total project, is $3.6 million, and the $80,000 has been included
in that amount.
Chairman Rockoff questioned what is included within the $3.6
million.
Mr. Kennon stated that it includes the acquisition of the site,
relocation of existing businesses and design, construction and
improvements that the Agency is responsible for. He stated that
the original amount esti. mated was $1 million, and the original amount
of site acquisition and relocation was $1.6 million.
Chairman Rockoff questioned what the Agency is obligated to in
this contract.
Mr. Kennon responded that the first phase would be a contract
with Renfro & Associates to continue to function as our design consul-
tants, providing expert advise in terms of the design and development
standards of the project.
After further discussion, Agency Member Moore made a motion that
the Agency accept Donald Renfro & Associates as architect for the
design and construction administration of the improvements to the
Civic Auditorium, which was carried by the following roll call vote:
AYES: Christensen, Moore, Payne, Rockoff, Barton, Childs
NOES: None
ABSENT: Ratty
Staff report regarding attendance of Insite '84 in
San Francisco for the purpose of promoting economic
development opportunities in Bakersfield.
Mr. Kennon stated that this conference examines the issues, de-
velopment and expansion of high tech companies. Cities and agencies
are given an opportunity to meet and confer with these companies to
discuss their needs and show how their community might satisfy reloca-
tion or expansion requirements of the company.
Each agency is provided the opportunity to have literature distributed
and graphics displayed in a booth at a cost of $500. Each booth will
be limited to 5 organizations within that booth. He stated that they
will be making a report regarding the impacts and value of this effort.
Agency Member Childs questioned why the City is not a major
part of the representation.
REDEVELOPMENT AGENCY MEETING, AUGUST 29, 1984 - Page 3
Mr. Larry Moxley, President of the Chamber of Commerce, stated
that the program runs from October 10 thru the 12th, and staff and
Agency Members would be encouraged to attend in order to address
some of the technical questions asked concerning the downtown develop-
ment opportunities.
Chairman Rockoff stated that it would be in the best interest of
the City to have representation at the conference in order to answer
any questions regarding redevelopment because it is different from
other developments.
Agency Member Barton made a motion that the Agency authorize
the expenditure of $500 for the booth and participation, and authorize
the Executive Director to work out a schedule for participation and
manning by staff and approval of printing materials for distribution.
The motion was carried by the following roll call vote:
AYES: Christensen, Moore, Payne, Rockoff, Barton, Childs
NOES: None
ABSENT: Ratty
Agency Member Moore asked Mr. Gordon Bell if he had been aware
of the article regarding the luxury hotel Grande Palace Plaza Inn
and questioned if this would affect the hotel project.
Mr. Bell responded that they are committed to this project, and
they are not paying attentionto what anyone else is doing.
4. Report from staff and Galleria developer regarding site
acquisition and financing for the project.
Mr. Kennon gave a brief overview of the sequence of events
involving the Galleria project.
Agency Member Christensen made a motion for a five minute
recess at 5:55 p.m.
Agency Chairman Rockoff reconvened the Redevelopment Agency
meeting at 6:00 p.m.
Mr. Gordon Gill, of Millard Archuleta, Eddy Paynter & Associates,
was present and gave a report on the Galleria project. He stated
that the appraisals have been completed on the site. The total
appraised value of both phases has increased from the original price
of $58.4 million to $87.9 million. The taxes would be valued at
$941,100 for both phases. Mr. Gill presented a commitment letter
from Sears Savings Bank for $25 million for the construction of
phase one. He stated that the Executive Board of the California
Republic Bank has approved an agreement with Moreland Corporation and
will make a recommendation to their Board on September 13 for
approval. He also indicated that agreements have been entered into
with Wayne, White, Ramsey, financial consultants, and Jones, Hall,
Hill & White, bond counsel, with regard to the sale of industrial
development bonds to be used for the parking facility. Included
in that bond issue is the $2.5 million which the agency has requested
be a part of the bond issue for Agency's use in the project. These
bonds must be sold by the end of fiscal year. He stated that they
have not reached an agreement with Chester Avenue Associates who
holds a leasehold interest in the California Republic Bank parking
facility. He stated that a verbal agreement was reached, but when
the written agreement was prepared, it was rejected by Chester
Avenue Associates. He stated that they restructured the parking
plan, taking only the parking ramp and none of the parking structure.
He indicated that Chester Avenue Associates stated that they were not
in favor of the project, and that the Moreland Corporation has not
been able to contact them to discuss further negotiations.
Agency Member Moore questioned if the document from Sears
Savings Bank is valid evidence of financing.
REDEVELOPMENT AGENCY MEETING, AUGUST 29, 1984 Page 4
Mr. Kennon stated that staff has not seen the document.
Agency Member Moore made a motion to recess the meeting at
6:12 p.m. in order to give staff time to review the letter of
commitment. The motion was approved.
Agency Chairman Rockoff reconvened the meeting at 6:17 p.m.
Executive Director Caravalho stated that staff reviews the
document only as a proposal and not a commitment. Therefore, the
developer has not met their financing requirement.
Mr. Gill introduced Ms. Colleen Head as a representative of
Sears Financial Bank and explained that she could respond to any
questions.
Ms. Head explained that the documents are with the attorneys, and
Mr. Moreland has not signed them, but the bank is willing to make
a commitment to him. She stated that she is the representative of
Sears Savings Bank and she is with Alpha and Omega Realty Develop-
ment Corporation. She is a real estate agent.
City Attorney Oberholzer asked Ms. Head if she is an employee of
the bank, and if she could commit the bank to a loan.
Ms. Head replied that she is not an employee of the bank nor
a representative, but they have been negotiating between the bank
the Moreland Corporation.
and
Agency Member Payne questioned if the bank has committed to
Ms. Head, and if they had entered into agreements similar to this
in the past.
Ms. Head responded that they have had similar commitments, and
the bank has committed to her office.
City Attorney Oberholzer stated that the DDA has specific
conditionsgiving the Agency the right at its option to terminate the
agreement. They are as follows: 1) if the redeveloper fails to
submit sufficient evidence for construction financing of the site in
the manner and date provided; 2) if the redeveloper fails to submit
the necessary equity capital and mortgaging financing for development
of the site in the manner and date provided; and 3) if the
redeveloper fails to submit at the proper time an agreement between
the redeveloper and California Republic Bank. He stated that the
agreement entered into between the Moreland Corporation and California
Republic Bank has two conditions which are that the Moreland Corp.
must enter into an agreement with Chester Avenue Associates and all
the tenants of Chester Avenue Associates relating to acquisition by
Moreland of their rights, or there must be an entry of an Order for
Possession and an action brought by the appropriate condemning authority.
Agency Member Payne questioned Ms. Head if the terms that were
being reviewed by the committee are substantially the same as the terms
outlined in the letter.
Ms. Head stated that the only concern that the committee had was
the Disposition and Development Agreement, and they are reviewing the
document at this time. She stated that the estimated time for final
approval would be 30-40 days.
Agency Member Moore expressed his concern regarding changes in
the condition of the community since the December date of final
approval of the DDA and the financing requirements. He was also
concerned about the number of projects that have been completed and
the high vacancy factor for office space. He stated that there was
no guarantee on the occupancy to confirm what the income to the city
would be. He stated that this project should have been re-evaluated
much earlier for its economic viability, and that a continued
extension would mean that the Agency would be unable to participate
or provide monies for any activities in redevelopment for five years,
and he therefore made a motion to deny any request for extension
and have the order of the DDA carried out in its finality as of this
date.
REDEVELOPMENT AGENCY MEETING, AUGUST 29, 1984 - Page 5
Mr. Terry Moreland was present and stated that they have been
in contact with many lending institutions, and the document from
Sears Savings Bank is a proposal to the Moreland Corporation as to what
Sears will do; it does not mean that it would be accepted by the Moreland
Corporation. He indicated that the City has conditions to meet such
as the agreement with the County of Kern for the acquisition of the
Hall of Records building. He further commented that they have a
viable project, and they have been continuing their efforts to make it
feasible. He stated that they have put up the money and, therefore,
feels this project will go.
Mr. Gill indicated that there were many extensions granted to the
hotel developer and requested that only equal cooperation be extended
to this project. He stated that this cooperation is needed in order
to revitalize the downtown. He stated that because the agreement has
not yet been entered into with the County, the progress has been
hampered with regard to financing. He stated that the vacancy factor
should not have any bearing on this project because those numbers fluctuate.
Agency Member Christensen made a substitute motion to Mr. Moore's
motion that this matter be referred back to staff for review and
recommendation to the Agency no later than September 12.
Agency Member Payne questioned staff as to the agreement with
the County for the Hall of Records.
Mr. Kennon responded thatthe basic agreement has been drafted
and reviewed by both staffs, but has not been submitted to the Board
of Supervisors or the Agency. The approval of this Agreement is not
required until 30 days after the approval of the developer's financing.
He stated that there are some conditions
that can only be resolved after the developer has submitted the
financing. He stated that some of the conditions to be met by the
Agency are the attempt to restore or relocate the structure or the
inclusion of that into the actual design of the Galleria, that
satisfactory relocation of the County Recorder's Office be made, and the
Board of Supervisors have agreed to sell the Hall of Records building
to the Redevelopment Agency.
Agency Member Christensen questioned if a positive commitment
was made on the amount of space that the County might have in the
project.
Mr. Gill stated that they have signed an agreement with the County
to take two floors of the Galleria with an option on four additional
floors.
Agency Member Childs made a motion to call for the question, which
was approved.
Agency Member Payne questioned what effect Agency Member
Christensen's motion would have on the project.
Executive Director Caravalho stated that during this period
staff will analyze the project's performance and progress and assess
its viability and then make a recommendation as to whether it should or
should not go forward.
Agency Member Christensen's substitute motion to refer this
issue to staff for review and recommendation to the Agency on
September 12 was approved by the following roll call vote:
AYES: Christensen, Payne, Rockoff, Barton, Childs
NOES: Moore
ABSENT: Ratty
Upon a motion by Agency Member Childs, the Redevelopment Agency
meeting was recessed at 7:00 p.m. until the completion of the City
Council meeting.
Agency Chairman Rockoff reconvened the meeting at 10:05 p.m.
REDEVELOPMENT AGENCY MEETING, AUGUST 29, 1984 - Page 6
CONSENT CALENDAR
(a) Approval of Vouchers No. 005- thru 046 totaling $45.060.63.
(b) Approval of Design Review Board recommendations:
1. Approval of exterior painting for Showcase Adult
Book Store, 1300 19th Street.
2. Approval of storage room addition, running track
and amphitheater at YMCA of Kern, 900 20th Street.
3. Approval of MCI tower at Bank of America, 1430 Truxtun
Avenue.
4. Approval of signage for AT&T Communications at
1520 20th Street.
5. Approval of verticle Public Parking sign for 18th
and Eye parking garage.
6. Approval of exterior alterations, canopy, and signage
for the Guardian Federal Savings and Loan, 2210 Chester
Avenue, Suite A.
7. Approval of exterior painting and signage for Circuits,
at 2026 Chester Avenue.
Agency Member Moore questioned item one, the exterior painting
for the Showcase Adult Book Store.
Mr. Kennon explained that the original color of the building
was not approved through the Design Review Board, and after dis-
cussions between building owners and the Board, they came to an
agreement to modify the paint scheme. No funds were being expended
by the City for this effort.
Upon a motion by Agency Member Moore, items (a) and (b) of
the Consent Calendar were approved by the following roll call vote:
AYES: Christensen, Moore, Payne, Rockoff, Barton, Childs
NOES: None
ABSENT: Ratty
NEW BUSINESS
(a)
Resolution of the Redevelopment Agency fixing the dates
and times of the Redevelopment Agency meetings for the
months of September 1984 through March, 1985.
Agency Member Barton made a motion to adopt the Agency reso-
lution.
Agency Member Christensen questioned if the Agency could
schedule to have their meetings at 4:00 p.m.
Agency Member Childs indicated that he could not meet at
4:00p.mo
Agency Member Christensen made a substitute motion to
schedule the Redevelopment Agency meetings after the City Council
meetings.
Agency Member Barton suggested that the scheduling of dates
meetings could be set when there is no Council meeting in order
to have the appropriate amount of time to conduct the meeting.
Executive Director Caravalho requested time until the first
of the year to prepare for an alternative.
Agency Member Christensen withdrew his motion.
of
REDEVELOPMENT AGENCY MEETING, AUGUST 29, 1984 Page 7
Agency Member Barton's motion to adopt the resolution of the
Redevelopment Agency fixing the dates and times of the meetings
for the months of September, 1984 through March 1985 was approved
by the following roll call vote:
AYES: Christensen, Moore, Payne, Rockoff, Barton, Childs
NOES: None
ABSENT: Ratty
(b)
Agreement for letter of credit to be issued in favor of
the Agency for the purpose of beginning the site acqui-
sition program for the proposed Convention Center Hotel.
City Attorney Oberholzer stated that this agreement provides
that the Agency would begin acquisition of property and because
there is still potential that the project could not go forward,
the developer would put up a $2 million irrevocable letter of
credit. The letter of credit will provide that if the Agency
begins acquisition of the property, they could be reimbursed for
the cost if the project falters. He stated that staff is also
proposing an approach which would offer purchase options to the
property owners for the purchase of their property, and the offers
will be financed by the developer.
Agency Member Payne questioned what whould happen if the
City did not receive a voluntary option.
City Attorney Oberholzer explained that the Agency would
proceed with eminent domain to acquire the property only after
the city has received the letter of credit.
Agency Member Barton made a motion to recess at 10:20 p.m.
into Executive Session in order to discuss options of agreement
on acquisition of property for the Convention Center Hotel.
Agency Member Moore made a motion to authorize staff to
tender the option agreements to the property owners to allow the
construction of the Convention Center Hotel to move forward,
and authorize the Chairman to execute said options and agreements.
The motion was carried by the following roll call vote:
AYES: Christensen, Moore, Payne, Rockoff, Barton, Childs
NOES: None
ABSENT: Ratty
(c) Urban Design Guidelines for the Design Review Board.
Mr. Kennon explained that the Design Review Board has
been operating with few guidelines relative to the review of
projects in the redevelopment area.
Agency Member Barton made a motion to approve the Urban
Design Guidelines for the Design Review Board. The motion was
approved by the following roll call vote:
AYES: Christensen, Moore, Payne, Rockoff, Barton, Childs
NOES: None
ABSENT: Ratty
ADJOURNMENT
There being no further business to come before the Redevelop-
ment Agency, Agency Member Christensen made a motion to adjourn
the meeting at 10:30 p.m.
id Redevelopment Agency
ARTHUR L. ROCKf~Iml~-~a~i~man
Bakersfield Redev~16pment Agency