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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