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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. /~~- ~~ ~i~ ARTHURBakersfieldL.ROCK flE~_~ R e'de~opme n t~hairmanAgency ~ke]~.~N~ ~ ' ry