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HomeMy WebLinkAbout08/01/84 MINUTES RA MINUTES BAKERSFIELD REDEVELOPMENT AGENCY Regular Meeting--August 1, 1984 The Regular Meeting of the Bakersfield Redevelopment Agency was called to order by Chairman Rockoff on Wednesday, August 1, 1984, at 5:02 p.m. in the City Hall Council Chambers. The Secretary called the roll as follows: MEMBERS PRESENT: James Barton Chris Christensen James Childs Thomas Payne Art Rockoff MEMBERS ABSENT: Donald Ratty Rollie Moore MINUTES Upon a motion by Agency Member Christensen, the Minutes of the Regular Meeting of July 18, 1984 were approved as presented. AGENCY STATEMENTS Agency Chairman Rockoff stated that Agency Member Rollie Moore has asked that the Agency be reminded of the reason for his absence. As approved by the Council, he is participating with a University of California Cooperative Extension Water Task Force sponsored activity whose goal is to increase understanding on a state-wide basis of water management and related problems. ACTION ON BIDS (a) 19th Street Parking Lot, between "L" and "M" Streets. Agency Member Childs made a motion to accept the low bid from Griffith Company, reject all other bids and authorize the Chairman to execute the contract. Agency Member Payne questioned the location of this lot relative to 1231 19th Street. Mr. Kennon responded that this lot is located at 1212 19th Street, and 1231 19th Street is on the opposite side near "M" Street. Agency Member Childs' motion to accept the low bid from Griffith Company, reject all other bids and authorize the Chairman to execute the contract was approved. NEW BUSINESS (a) Modification of Donald Renfro & Associates', AIA, contract to provide consulting and design services for modification of the Auditorium. Mr. Kennon stated that in 1983, after receiving bids from various architectural groups, an agreement was entered into with Donald Renfro for the design of the storage area that was to be built as a result of the construction of the hotel. Following that, the project was modified and the developer and the Agency took on new and dif- ferent responsibilities relative to the design of the hotel. The Agency has agreed to construct the banquet rooms as well as new meeting space in the existing auditorium, and the developer has the responsibility for the design and construction of the hotel. The developer has agreed to develop the conceptual and design development plans of all of the facilities which has necessitated the use of a design consultant on the part of the Agency. Staff is therefore requesting, based on the information submitted by Mr. Renfro, that the Agency direct staff to modify the original agreement to allow him to continue as the consultant. Mr. Kennon stated that Mr. Renfro has already generated and gathered information in his original work and has worked with staff in dealing with the developer. It is indicated that he is willing to do that, and it is felt that there will be some efficiency in cost and time if this were allowed. Agency Member Christensen questionedwhat the estimated added cost would be. Mr. Kennon stated that staff's best estimate at this time is $60,000, and a more detailed assessment of the work required would allow a precise "not to exceed" amount. Agency Member Childs stated that in the original contract he understood that the design of the ballroom and the other area was to be the responsibility of the developer, and the Agency was not to be involved in any of the monetary costs. Mr. Kennon stated that only to the point of developing conceptual drawings and design development drawings which proceeds the final working drawings. At that point, the Agency and architect would be responsible for detailing and preparing the documents for the banque5 and meeting rooms. Agency Member Christensen made a motion that no action be taken until a report has been submitted in writing that shows exactly what has to be done in relation to completing the project and in rela- tion to what has been done. Agency Member Childs indicated that he would support this motion, but stated that there was discussion that the developer would be responsible ~(;r the addit~ona.[ costs and therefore wo~.~id ~2. k~ to review the contract that was approved. City Attorney Oberholzer indicated that there was discussion as to whether the City would have to pay for the storage facility or the Agency, but the discussion was that the Agency ~.~ould pay for the expansion of the Civic Auditorium. Agency hember Childs explained that he rei~e ~bered ~iscussJng the res[~onsibility for the ballroom and design. Agency Nember Christensen's motion, that no action be taken until a report is submitted to the Agency Nembers, was approved. (b) Amend proposal from Truxtun Tower Associates reoarcin the purchase of the 17th and "K" Street Parking Agency ~ember Payne questioned who made the allegation l?roperty is worth more than $75,000. Mr. Xennon indicated that an a?praisal was conducted that seh value of that property at $150,000. ~gency Nember Payne questioned if the Agency is being aske,i ,_o pay ~r. iennon indicated that staff recommends that an appraisal occur to escablisR a fair market value. Agency Me~aber Payne stated his concern that the Agency has not been successful with their real estate holdings downtown, and that the $75,000 might be more beneficial to the Agency than the property. Agency Member Barton stated that he would support acquisition of the property for $75,000 in cash and expedite the escrow on the parking structure, but would prefer to see another appraisal that lists the actual value of the property. Agency Member Payne made a motion that the Agency request staff to obtain an updated appraisal on this property, based on the fact that the premises will be vacated. Agency Chairman Rockoff questioned if the Agency took the property, would the present tenant have lease rights to the property. City Attorney Oberholzer stated that Mr. Younger, whose mother owns the property, has indicated that he gave notice to the tenant to vacate the premises, but at that time the City was discussing that purchas~ on the open market and one of the conditions was that the City would not buy the property as long as it was occupied by a porno shop. Agency Chairman Rockoff suggested that the motion be modified to indicate that the Agency only wants the appraisal if it is shown that the Agency would not take the present occupant. Agency Member Payne made a motion to direct staff to acquire an appraisal on the property if the Agency is assured that the property will be appraised as vacant. Agency Member Childs explained that it was his understanding that the present tenant has been officially evicted, but is still on the premises and has not paid rent for a few months. He stated that the Agency entered into a verbal agreement and that if they broke the lease, the Agency would be willing to consider purchasing the property. City Attorney Oberholzer explained that a verbal agreement carries no weight. The agreement was not made between the Agency and the owner. There were some negotiations carried on and a letter sent to Mr. Younger which indicated that the Agency was interested in con- sidering negotiations for the property, but that particular negoti- ation stipulated that the City would not discuss the purchase as long as there was a porno business existing there. That issue was never resolved, and in January of 1984, a letter was sent retracting the offer to negotiate. Agency Member Childs explained that he remembered entering into negotiations with a property owner and being assured that if they broke the lease, the property owner would no longer be a porno shop and we would consider purchasing that property. From his under- standing, the property owner did break the contract and it was assumed that the Agency would begin negotiations for the purchase of the property. City Attorney Oberholzer stated that negotiations were being carried on by Mr. Kelmar and Mr. Younger and that there was nothing in writing other than the letter to Mr. Younger from Mr. Oberholzer, which was not an offer. Agency Member Payne's motion to direct staff to obtain an updated appraisal on the property located at 17th and "K" Streets if the Agency is assured that the property will be appraised as vacant, was approved and carried. ADJOURNMENT There being no further business to come before Agency, Agency Member Christensen made a motion to meeting at 5:30 p.m. -' the Redevelopment adjourn the p~/t Agency