HomeMy WebLinkAbout04/11/84 MINUTES RA MINUTES
BAKERSFIELD REDEVELOPMENT AGENCY
Regular Meeting---April 11, 1984
The Regular Meeting of the Bakersfield Redevelopment Agency was
called to order by Chairman Rockoff on Wednesday, April 11, 1984 at
5:03 p.m. in the City Hall Council Chambers. The Secretary called
the roll as follows:
MEMBERS PRESENT:
James Barton
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 March 14, and the Regular Meeting of March 28,
1984, were approved as presented.
REPORTS
Report from Robert Corsaro, representative of the
Convention Center Hotel developer, regarding the
financing of the proposed Convention Center Hotel.
Mr. Corsaro stated that Aircoa has completed several projects
and outlined each of them. He stated that in addition to the original
investors, several others have indicated a desire to buy shares in
the hotel. He stated that with the complexity of the project, it
has taken the banks a little longer to present their proposal.
Verbal commitments have been made by five institutions and Aircoa
has now eliminated it to two whom they will meet with next week.
He stated that there is also a chance that they can do this with a
private placement and save a lot of underwriting fees which could go
back into the project and secure their downside risk in the first
two or three years. He commented that he is 101 percent sure that
this deal will be financed, and they will get the guarantee for the
letter of credit. He explained that the conceptual plans are in
progress and should be completed. He stated that they will probably
have the information by the 23rd, but no later than April 30th, on
who the lender will be or who will be doing the financing.
He stated that the Agency should take a close look at the offer
for the second hotel. He stated that they talked to Mr. Gill and
offered to let him look at their study because, in their opinion, there
is no room for another hotel at this time. He commented that they
believe that the Moreland Corporation should start with the first
phase of the building and then work into the second phase.
Agency Member Christensen asked when the final day of financing
can be assured.
Mr. Corsaro stated that they have the commitments, and it is
a matter of finalizing these commitments. The final date would be
April 23, and no later than the 30th to give the Agency the name
of the lender.
Agency Member Childs questioned if the financing of the project
is finalized by the 30th, when would construction be anticipated to
begin.
Mr. Corsaro stated that as soon as they get the plans from the
architect which would take approximately five months. They
would like to start sometime in 1984 to break the ground.
Agency Member Childs questioned the status of acquiring the
property.
Mr. Kennon explained that upon the submittal of the developer's
proof of financing (letter of credit), the Agency has 30 days to
review and approve it. Upon approval, the Agency has a minimum
of six months to acquire, assemble and prepare the site for develop-
ment. He stated that it is difficult to really determine how quickly
the process might go. He further commented that there are certain
public hearings that must occur.
Agency Chairman Rockoff requested that Mr. Corsaro come back
to the April 25 meeting to tell the Agency whether or not they
have the financing, so that the Agency can start acquiring the land.
Agency Member Childs questioned if there would be any problems
with acquiring the area.
Mr. Kennon stated that they have had numerous contacts with
the property owners, and they are aware and supportive of the
project and its benefits, and seem to be cooperative. He stated
that the old Meat Packing Plant which is owned by an estate, would
require a little effort, but no major problems are anticipated.
City Attorney Oberholzer explained that several years ago the
City went to court on that property and got an order in 1980
allowing the sale of that property, but the estate has been in
probate since 1967 and it is still not completed. The trustee
has notified the City that he is interested in pursuing a sale
of that property.
Agency Member Childs questioned how this would affect the
project.
City Attorney Oberholzer stated that it would proceed in
eminent domain and the Agency would have to go with an action of
immediate possession, and act out the litigation with respect to
fair market value.
Report from Gordon Gill, representative of Moreland
Development Corporation, regarding the status of
negotiations with California Republic Bank.
Mr· Gordon Gill, of Millard Archuleta, Eddy, Paynter Associates,
stated that they have had discussions with California Republic
Bank with regard to acquisition of approximately 10,260 square
feet of the parking ramp and parking facilities for the construc-
tion of the first phase of the Galleria. He commented that the banks
have been cooperative, and they are in the final stages of preparing
the agreement. As a part of the DDA, they are required to settle
the acquisition of the parking ramp, with a portion of the parking
structure, with the bank and the owners of that property. He
stated that there are four entities that they have to discuss the
acquisition with: California Republic Bank, Chester Avenue Associ-
ates, First Interstate Bank, and the tenants of the California
Republic Bank building. To accomplish this acquisition, all
parties have to agree to a final resolution with regard to the
acquisition of that property. He stated that it is premature
whether they would be successful in negotiating a lease and purchase
price with all the parties.
He stated that if they are unable to successfully negotiate
an agreement with all parties concerned, they request the Agency's
consideration with regard to eminent domain proceedings at that
point, only if they are unable to proceed with the acquisition
based upon the provisions of the DDA.
Agency Member Christensen questioned if they were going to
use eminent domain because it is ablighted area.
City Attorney Oberholzer stated that the basis of eminent
domain would be an issue of public necessity. He explained that
the whole redevelopment project area has a general provision
that it is to be determined to be a blighted area, not any specific
piece, but it is a general overall concept, and the requirement
is public necessity. A resolutionof public necessity must be
adopted which requires an affirmative vote of five members.
Agency Member Childs questioned the properties involved in
this matter.
Mr. Gill responded that it is the ramp that leads to the
second level of the parking structure and approximatley 16 feet
of depth on the existing structure on the southerly side. This
property is owned by California Republic Bank.
City Attorney Oberholzer stated that the most the Agency
could do is indicate that they would consider eminent domain
at this time. There are procedures that have to be followed to
change the DDA.
Agency Member Moore questioned who would initiate the
proceedings.
City Attorney Oberholzer responded that, whether or no~ the
Agency must use eminent domain will depend upon whether the
developer can make or negotiate a purchase of the property, if
not, then the Agency can consider the use of eminent domain.
This particular property was not included in those properties
to be acquired by the Agency, but instead, it specifically provided
in the DDA the developer was to acquire it. There is no
provision for the Agency to either negotiate for the purchase
of the subject property or for the Agency to use powers of
eminent domain. Before any action could be taken, a public
hearing would have to be held to make changes to the DDA.
Anything the Agency does would not be binding, at this time,
but it may indicate the intent of the Council.
Agency Member Payne questioned if Mr. Gill's request was for
the Agency to use eminent domain to insure the continuation and
progress of the Galleria project.
Mr. Gill responded that only if it is necessary, if they cannot
negotiate with all the parties concerned and the Galleria project
would be stopped because of it.
Agency Member Moore questioned if the parking structure in
question was part of the Redevelopment Agency project for the
California Republic Bank building.
City Attorney Oberholzer stated that the parcel of land which
includes the parking structure and California Republic Bank was
all part of the negotiation for that project and the City
acquired portions of that land. He commented that the only
reason the Agency should consider eminent domain is if the de-
veloper is unable to acquire the property.
Agency Member Childs stated that since the Moreland Corporation
is still negotiating, it might cause some resentment to the
other parties if the Agency should grant to consider this issue.
He questioned if they could consider this matter until after the
May 15 deadline, when Mr. Gill comes back with his proposal
regarding the status of the parking problem.
Mr. Terry Moreland, of Moreland Development Corporation,
stated that it is up to the Moreland Corporation to submit the
financing of the project to the Agency. He stated that they have
commitments in writing, and that a half a million dollars, non-
refundable, would have to be put up, and every six months they
would have to put up an additional $250,000. He stated that he
did not want to put up that money and then deal with California
Republic Bank, and therefore, asked that the Agency consider
eminent domain now, because the deadline is May 21.
Agency Member Moore questioned how long it would take to get
the notice of public hearing and the changes made if the DDA needs
to be changed.
City Attorney Oberholzer stated that it would take approxi-
mately 30 days, if they rush it through.
Agency Member Childs made a motion, that since the Moreland
Corporation is asking for a change in the DDA, to direct staff
to begin proceedings to see what changes the Moreland Corporation
is requesting in the DDA and provide the Agency with all the
information necessary in case there is a need to implement some
of those changes.
City Attorney Oberholzer explained that eminent domain was
used for the purpose of allowing the property owners of California
Republic Bank the right to take advantage of the tax benefits,
but did not proceed to trial on the acquisition of any of these
properties.
Agency Member Payne questioned staff if downtown redevelopment
would work without the ability to exercise, or the Agency expressing
a willingness to use powers of eminent domain and whether it is part
of downtown redevelopment.
Mr. Kennon stated that it is an important part of redevelopment.
He explained that the Agency can do many things without concerning
itself with eminent domain. However, major developments involving
multiple properties owned by many different individuals cannot
be achieved without eminent domain being a part of the strategy.
He stated that there would be concern of any developer's ability
to acquire and assemble a site if the Agency were reluctant to
use eminent domain when it is necessary.
Mr. Lawrence Guay, of Chester Avenue Associates, stated that
they have been studying this proposal and before he makes any
comments on the outcome of this project, that they must complete
the negotiating phase that they are currently involved with.
He commented that closing Eye Street is a problem for their
project. He stated that he did not like being threatened by
eminent domain during the middle of negotiations. He stated
that anything else would be said at a public hearing.
The motion made previously by Agency Member Childs, to direct
staff to begin proceedings to see what changes Moreland Development
Corporation is requesting in the DDA and provide the Agency with
all the information necessary if they have to implement some of
those changes, was carried.
CONSENT CALENDAR
(a) Design Review Board recommendations for approval:
Signage for Western Outfitters, 1229 19th Street;
2. Signage for Emporium Western Store, 10t~ 19th Street;
3. Exterior remodel of the Morenet Building, northeast
corner of 18th and Eye Streets;
4. Signage for the Potato Shed, 1804'Chester Avenue;
5. Signage for Ice Cream & Yogurt, 1408 18th Street;
6. Signage for Country Classic Gifts, 1919 Chester Avenue;
7. Exterior remodel and signage for L.A. Connection,
1615 19th Street.
Upon a motion by Agency Member Payne, item (a) of the Consent
Calendar was approved by the following roll call vote:
AYES: Childs, Christensen, Moore, Payne, Rockoff, Barton
NOES: None
ABSENT: Ratty
DEFERRED BUSINESS
(a)
Consideration of Moreland Development Corporation
regarding request for a feasibility study to allow
for consideration of a hotel within the proposed
Truxtun Galleria project.
Mr. Gordon Gill requested continuance of this issue until
the April 25, 1984 Agency meeting.
Agency Member Childs made a motion, to defer this item until
the April 25, 1984 meeting, which was carried.
NEW BUSINESS
(a)
Resolution No. RA2-84 of the Redevelopment Agency of
the City of Bakersfield declaring the completion of
the public parking facility located at 18th and Eye
Streets.
Agency Member Barton made a motion to adopt Resolution
No. RA2-84 declaring the completion of the public parking facility
located at 18th and Eye Streets, which was carried by the following
roll call vote:
AYES: Childs, Christensen, Moore, Payne, Rockoff, Barton
NOES: None
ABSENT: Ratty
City Attorney Oberholzer stated that the sale could not be
completed until the bonds, which were public bonds, were taken
from the 18th and Eye Street garage and placed on the other
garage.
(b) Appointment of Design Review Board Members
Acting Executive Director Richard Russell stated that the
information would be presented at the next Agency meeting regarding
the Design Review Board and the process for filling the vacancy.
Martha Walters was recognized by Agency Member Moore and
expressed her concern that the downtown should be preserved and
that the developers should locate and develop with their own
money.
ADJOURNMENT
There being no further business to come before the Redevelop-
ment Agency, Agency Member Christensen made a motion to adjourn
the meeting at 6:10 p.m.
ARTHUR L. ROCROFF, ~/~4~an
Bakersfield Redevelop~ht Agency
~~R~e~o~tS~ry