HomeMy WebLinkAbout07/18/84 MINUTES RA MINUTES
BAKERSFIELD REDEVELOPMENT AGENCY
Regular Meeting .... July 18, 1984
The Regular Meeting of the Bakersfield Redevelopment Agency was
called to order by Chairman Rockoff on Wednesday, July 18, 1984 at
5:10 p.m. in the City Hall Council Chambers. The Secretary called
the roll as follows:
MEMBERS PRESENT:
James Barton
Chris Christensen
James Childs
Rollie Moore
Thomas Payne
Art Rockoff
Members Absent:
Donald Ratty
MINUTES
Upon a motion by Agency Member Childs, the Minutes of the
Regular Meeting of June 20, 1984 were approved as presented.
REPORTS
1. Oral report from staff regarding the operation of the
18th and Eye Street Parking Structure.
Mr. Kennon stated that,
on the operation of the 18th
requested.
at the last Agency meeting, an update
and Eye Street Parking Structure was
Agency Member Moore questioned the current gross income of the
structure.
Mr. Kennon responded that it was approximately $4,300. He
stated that the expenses exceeded the revenue by approximately
$1,000.
Agency Member Moore questioned if there was any projections as
to when this figure is anticipated to change.
Mr. Kennon stated that each month there seems to be greater use
of the facility, but nothing has been projected out. He explained
that this facility would require an excess of 210 term parkers to
exceed the expenses.
Agency Member Moore questioned if all of the parties, companies,
businesses, etc. that had indicated an interest in long-term parking,
had accepted that commitment.
Mr. Kennon stated that these companies or businesses that had
indicated they would take a large number of parking spaces have not
responded. If they had, the structure would be at capacity.
Agency Member Moore questioned if there is any indication why
they are not participating.
Mr. Kennon indicated that there is no indication. He explained
that staff has solicited their cooperation on several occasions, and
received no notification of any change in that regard.
Agency Member Moore questioned if it would be possible to
solicit their reasons for not participating.
Acting Executive Director Russell stated that one of the issues
discussed with one of the larger businesses in the downtown area is
that they would try to work that into an agreement with their union.
They would pick up the cost of the employees, but not until they are
in negotiations with the union.
Oral report from staff regarding the status of the financing
for the Convention Center Hotel project and the scheduling
for final bond closing and site acquisition activities.
Approval of the basic issues under which an irrevocable
letter of credit could be issued to the Agency for the
primary purpose of starting the site acquisition is being
requested.
Mr. Kennon stated that there are on-going discussions with the
developer regarding the issuance of a letter of credit in order
to allow the Agency to begin acquisition of the site.
Agency Member Barton made a motion to direct staff to initiate
negotiations with the hotel developer for the purpose of generating
an agreement and an irrevocable letter of credit to protect the
Agency for costs associated with the acquisition of the proposed
Convention Center Hotel site.
Agency Member Childs questioned if the developer is still
asking the City to acquire the land prior to receiving financing
commitments.
Mr. Kennon stated that as a result of the recent discussions
with all parties, there are now only two basic conditions. One of
those conditions required by the underwriters (and the lender)
requires a leasehold interest be conveyed to the developers
prior to the refinancing of the bonds. The Agency on the other hand
is requiring that financing be in place before the Agency acquires
the site. He stated that the catch 22 situation will be removed
with the letter of credit which will provide protection on the
acquisition.
Agency Chairman Rockoff questioned if there is a time frame for
this effort to take place.
Mr. Kennon explained that the conference is going to take
place in October in San Francisco. It will be an industry-wide
business conference that will bring in hi-tech companies. The
City's participation would amount to a promotion of its effort in
redevelopment and economic development. He stated that there will
be several other companies from Bakersfield attending the conference.
Agency Chairman Rockoff stated that a booth will be provided
for Tennaco, and Rio Bravo will also be represented. He has
suggested that the South East Enterprise Zone participate in this
effort. The cost has not been determined, but it would not be a
major expenditure. He, therefore, suggested that this item be
deferred until the next Agency meeting.
Oral report from the developer of the Truxtun Galleria
regarding the financing for the project and the status
of required agreements between the developer and
Chester Avenue Associates.
Mr. Bob Eddy, of Millard Archuleta, Eddy, Paynter Associates,
representing the Moreland Corporation, gave a status report on the
Truxtun Galleria project stating that they have been in contact
with all of the principals involved. He stated that the revised
plans, reflecting the minor modifications that were felt essential
to their interests, are under review and, hopefully, an early
agreement can be reached. He indicated that after talking with
Mr. Guay, owner of the California Republic Bank building, it is
apparent he has a number of concerns with respect to the draft
agreement. He further stated that Mr. Guay is not as optimistic,
but Mr. Eddy feels comfortable that a resolution can be reached
regarding the concerns to Mr. Guay's building and property.
He stated that Mr. Moreland is 14 days from delivering his final
letter of permanent financing, and he has a second institution as a
backup if the original lender should default.
Mr. Kennon stated that the developer is in his first 90-day
extension for acquiring the financing and reaching an agreement
with the property owners. The second 90-day period begins on
August 22, 1984.
CONSENT CALENDAR
a) Approval of Vouchers No. 346 thru 379 totaling $34,213.09
and 1 thru 4 totaling $65,966.29.
b) Approval of Design Review Board recommendations.
1. Signage for Valley Olds West, 2211 Chester Avenue,
Design Review Board recommends approval.
2. Garage Storage Addition at 2210 "N" Street, Design
Review Board recommends approval.
Upon a motion by Agency Member Barton, items (a) and (b) of
the Consent Calendar were approved by the following roll call vote:
AYES: Childs, Christensen, Moore, Payne, Rockoff, Barton
NOES: None
ABSENT: Ratty
NEW BUSINESS
1. Approval of the plans for construction of the 19th Street
Parking Lot.
Mr. Kennon stated that the building that was located at 1212-1216
19th Street was demolished and the site was cleared. Plans have been
prepared to construct a parking lot. He stated that there will
be striping and meters on the site, and access at the 19th Street
entrance and the alley. The improvements will amount to approximately
$13,000 and the meter fee will be 25 cents an hour.
Upon a motion by Agency Member Barton, the plans for
construction of the 19th Street Parking Lot were approved by the
following roll call vote:
AYES: Childs, Christensen, Moore, Payne, Barton
NOES: None
ABSENT: Ratty
2. Lease Agreement between the Redevelopment Agency and
City of Bakersfield for the 18th and Eye Street
Parking Structure.
Upon a motion by Agency Member Barton, the Lease Agreement and
Reimbursement Agreement were approved and approval was recommended
to the City Council by the following roll call vote:
AYES: Childs, Christensen, Moore, Payne, Barton
NOES: None
ABSENT: Ratty
Acting Executive Director Russell introduced Mr. George Caravalho,
the new Executive Director to the Redevelopment Agency, and stated
that he will be attending the next Agency meeting.
ADJOURNMENT
There being no further business to come before the Redevelopment
Agency, Agency Member Christensen made a motion to adjourn the
meeting at 5:35 p.m. /~~-
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