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HomeMy WebLinkAbout08/17/83 MINUTES RABakersfield, California, August 17, 1983 Minutes of a Joint Public Hearing of the Council of the City of Bakersfield and the Bakersfield Redevelopment Agency, held in the Council Chambers of City Hall at 5:00 p.m., August 17, 1983. The meeting was called to order by Mayor Shell and Agency Chairman Barton, followed by the Pledge of Allegiance and a minute of silent prayer. Deputy City Clerk Gafford called the roll of the Council as follows: Present: Mayor Shell. Councilmen Christensen, Payne, Rockoff, Barton Absent: Deputy City Clerk Gafford called the roll Councilmen Means, Ratty of the Agency as follows: Present: Agency Members Absent: Agency Members Christensen, Payne, Rockoff, Means, Ratty CORRESPONDENCE Barton Deputy City Clerk Gafford stated that other than the co~'respondence contained in the Final Environmental Impact Report correspondence was received from the Historic Preservatio~ ~ission, City of Bakersfield, dated August 16, 1983, regarding the Hall of Records Building. STAFF REPORTS City Manager and Executive Director of the Redevelopment Agency Kelmar introduced Mr. Harry Tow of Quad Consultants who prepared the Environmental Impact Report. Mr. Tow exp]~ne~ ~e ~'oc~s required by the California Environmental Quality Act (C?i~7). ~ stated the CEQA regulations require that an Environmental Impact Report be prepared for any- thing with impacts of environmental significance. Mr. Tow also explained that the proposed Truxtun Galleria Project is a $70,000,000 project, which consists of two office towers, one thirteen stories and one e~ghteen stories, connected by 90,000 square feet of commercial development. The office towers contain Bakersfield, California, August ]7, 1983 - Page 2 400,000 square feet of gross building area with 1,200 parking spaces, which the consultants have indicated is adequate for the project. The project occupies the two blocks between Truxtun Avenue, 17th Street, "H" Street and Chester Avenue, excluding California Republic Bank. The principal commercial and professional offices have a positive impact in terms of City revenue with a proposed combined revenue by the Agency and City with a better than 10-1 ratio of revenues versus expenditures over a period of time. The City has a positive balance in revenues in terms of Sales Tax, Business Licenses and indirect benefits which will occur. City Manager and Executive Director Kelmar gave a report regarding the purchase of the Hall of Records property owned by the County of Kern. He stated that the Agency authorized a letter to be submitted to the Board of Supervisors, which requested an indication from the Board as to their interest in selling the Hall of Records for the purpose of developing the Truxtun Galleria. He stated that a few weeks ago the Board met regarding the project and presentations were made by architects and the developer. The Board agreed to hold a meeting of the whole regarding the responses to the questions that had been raised. City Manager and Executive Director Kelmar read a letter from Mr. R. S. Holden, County Administrative Officer, to the Board of Supervisors, dated August 16, 1983, as follows: RE: Galleria Project: Board of Supervisor's Action Following August 15, 1983 Committee of the Whole Meeting On August 15, 1983 the Board of Supervisors held a Committee of the Whole meeting to discuss the City of Bakersfield downtown "Galleria" redevelop- ment project. To facilitate this meeting, the Board had received a report that was prepared by this office with the principal assistance of the Property Management Department. In addition, individual letters were received and presentations were made by the Bakersfield City Manager, by the architects of the Moreland Development Corporation, and by individual citizens. Bakersfield, California, August 17, 1983 - Page 3 The purpose of this report is merely to assure that an adequate understanding is had by all interested parties relative to the direction of the Board following the Committee of the Whole meeting. The results of the Committee of the Whole meeting are summarized as follows: ---The Board took action to provide contingent approval relative to the sale of the Hall of Records. ---The Board directed this office to attend the August 17, 1983 joint Bakersfield City Council/Board of Directors of the City Redevelopment Agency hearing relative to the certification of the draft Environmental Impact Report on the Galleria Project and the proposed disposition and development agreement to be formalized with the More- land Corporation. ---This office is to continue its evaluation of the County's occupancy of space in the Galleria project with principal attention given to costs and operating efficiency. ---This office is also to evaluate and compare the alternative proposal relative to a Kern County Government Center that was submitted by the Mosesian Development Company. If there are no errors or omissions in this office's understanding of the Board's August 15, 1983 action, IT IS RECOMMENDED that this report be received and filed. Sincerely, R. S. HOLDEN County Administrative Officer He further stated that the Board indicated that they were interested in selling the Hall of Records to the Redevelopment Agency and directed County staff to meet, subject to the outcome of this hearing relative to negotiating a satisfactory price and possible relocation of the Hall of Records during the construction, if the project were to move forward. City Manager and Executive Director Kelmar gave a report to reset date for hearing on the Disposition and Development Agreement for the Truxtun Galleria Project. He explained that the agreement could not be completed in time for the adequate noticing for public review and requested that the hearing be reset for September 27, 1983, at 5:00 p.m. Bakersfield, California, August 17, 1983 - Page 4 Upon a motion by Councilman Barton, the date for the hearing on the Disposition and Development Agreement for the Truxtun Galleria Project was reset for September 27, 1983, at 5:00 p.m. Upon a motion by Agency Member Payne, the date for the hearing on the Disposition and Development Agreement for the Truxtun Galleria Project was reset for September 27, 1983, at 5:00 p.m. HEARINGS This is the time set for public hearing on the Draft Environmental Impact Report for the Truxtun Galleria. The hearing was duly advertised and posted. Mayo~ Shell declared the hearing open for public partici- pation. Mr. Richard D. Crowe, Vice-President of the Kern County Historical Society, stated that his point of view and the Board of Trustees' point of view is that the Hall of Records should be preserved and restored to its original state and not be part of the Truxtun Galleria Project, unless it can be utilized in the project in accordance with its present shape and appearance. He commented on the Hall of Records portion of the EIR and stated that the Kern County Historical Society is pleased to note that the report of the independent consultant, contrary to the public statements of the developer and his associates, has determined that the Hall of Records has great architectural and culi~ural significance, and that the building has a viable commercial future. This is a conclusion which the Kern County Historical Society had previously reached and with which the Society strongly concurs. The Society, therefore, wishes to go on record as recommending that every effort be made, and all avenues explored, toward pre- serving and restoring the Hall of Records. He further stated that the Society was pleased that the City has formed a Historic Preser- vation Commission. Bakersfield, California, August 17, 1983 - Page 5 Mr. Norman Walters stated that the City has not proven that a need exists for the proposed Galleria, and that the proposal is an expense to be put upon the pocketbooks of the citizens. He stated that the Galleria is not self-supporting unless private enterprise buys, builds and owns the property and improves it without the help of the City or Redevelopment Agency. He further stated that the Hall of Records is a sound and functional building, and suggested that a ballot be mailed get their responses. Mr. Richard McBurnie, Attorney to the public in order to for California Republic Bank, stated that the published notice of this hearing indicated that the proposed project, as well as the proposed Disposition and Development Agreement, will cover the entire two block area bounded on the west by "H" Street and east by Chester Avenue, north by 17th Street and south by Truxtun Avenue, which includes the present site of the California Republic Bank and parking garage behind the bank. City Manager and Executive Director Kelmar clarified that the California Republic Bank building and garage is not included in this project. Mr. Richard Monje, Chairman of the Bakersfield Historic Preservation Commission, stated that the Commission has unanimously concluded that the Hall of Records is historically, architecturally and culturally significant and should be preserved and restored. They have found a developer, Mr. Tim Gannon, who is interested in restoring the building at his expense, and the City and Agency should be looking for these types of alternatives. Mr. Monje also commented on the Environmental Impact Report. He noted that on page 33 under Setting, it states "a building which may be of historical significance," but, in fact, the building is of historical significance and that determination was made by the Commission and the City's consultant and concurred by the Historical Society. Also, on the same page, it makes Bakersfield, California, August 17~ 1983 - Page 6 reference that "The Hall of Records would appear to meet the Cultural Resource Designation Criteria that are listed in the Ordinance." He clarified that the building does meet that desig- nation, and that decision was made by the Historic Preservation Commission. Also, on page 34, it states that the Hall of Records "could be viewed as an economic liability." Mr. Monje explained that he reviewed the entire report and there is no support for that statement. He commented that it appears to be a conclusion pulled out of thin air, and if the conclusion is going to be in the report, CEQA requires that there be some support. On page 35 of the report, there is an extensive discussion of how difficult it will be to do a cost analysis of restoring the Hall of Records to its original condition. He stated that the report should have to include a cost analysis of the expenses that would be incurred in restoring the Hall of Records rather than just a statement that it would be difficult to make such an analysis. Also on page 35, there is some indication that if someone wanted to restore the building, there would be a 20% investment tax credit available. What the report does not indicate is that if the building were eligible for National Register status, which the independent consultant has concluded may be true, the tax credit would be 25%, and there are some additional tax benefits to a private developer who wants to restore the building. Mr. Monje also noted that on page 36, there is a proposed additional mitigation factor, which is in essence to incorporate the design elements of the building into the Truxtun Galleria and there is not discussion of what elements should be incorporated. He explained that we cannot have anyone consider a mitigating factor until we know exactly what would be done to mitigate the destruction of the Hall of Records. Mr. Monje further commented upon the comments received by the County Clerk, which the consultant has included a statement referencing the historic significance of the site snd that historical significance could be preserved by having the County Recorder's Bakersfield, California, August 17, 1983 - Page 7 function included in the tower. He stated that the Historic Preservation Commission does not see how putting the County Recorder's function on the 12th floor of an office tower, after tearing down the 75 year old building, preserves the historic significance of the site. Mrs. Richard Bailey stated that if her husband was able to attend the hearing he would be here. She commented upon what her husband had stated to her about the Hall of Records from the time he came to Bakersfield in 1929 and the emotional impact of the colored lights and stained dome and large interior that was held up by the four marble columns. The big windows, broad stairs and ionic pillars were evident. She stated that her husband hoped that the building would be preserved as a monument to the future and as a viable building to the present. Mr. Hugh Sill, businessman, stated that he was definitely against preserving the Hall of Records building. He commented that it is not a serviceable building, and is not in line with the City codes of today. He further commented that there is no way that the building will fit into the Truxtun Galleria Project. Mr. Harry Rubin, merchant, has been in Bakersfield since 1919 and stated that the City has lost all of the historical buildings, except the Hall of Records. He stated that he does not intend to impede the progress of the growth of Bakersfield or the Galleria Project, but that he is not in favor of destroying or moving the Hall of Records. Mr. Harry Tow stated, for the record, that the comments that have been made and responded to previously in the EIR and the letters received and comments made at the hearing will be incor- porated into the Final EIR, and that they do not require quantitatiw~ responses. Martha Walters stated that it is not too significant that the Hall of Records be restored to its original condition. If it functions and meets the needs, in this economy, it should be Bakersfield, California, August 17, 1983 - Page 8 considered. She stated that the voters should have input. Mrs. Walters also requested an accounting of the monies that have been spent to date by the Redevelopment Agency in buying properties for landbanking and the monies taken in as revenue. Mayor Shell requested an updated report be given regarding landbanking and revenue and expenditures at a future Council Meeting. Fran Smith, businesswoman, commented on the Hall of Records and stated that she was against destroying the building. Mayor Shell questioned the City Attorney as to the meaning of certifying the Environmental Impact Report. City Attorney Oberholzer stated that the California Environmental Quality Act (CEQA) process requires that there be a determination of the environmental impacts of the project. It does not obligate the Council or Agency to proceed with the project. This would recognize any mitigations, and if there are no miti- gations, then the City would take the consequences of whatever impacts there might be. Councilman Rockoff asked if the Draft EIR and Final EIR are the two documents upon which the action is being made. Mr. Harry Tow explained that the Draft EIR is the document for which comments are received. The Final EIR constitutes the comments and responses to comments together with the record of hearing. These three components make up the Final EIR, which is the item to be certified. There being no further comments received regarding the Environmental Impact Report for the Truxtun Galleria Project, ~ayor Shell closed the public portion of the hearing for Council and Agency deliberation and action. City Manager and Executive Director of the Redevelopment Agency Kelmar stated that he recognized all the concerns expressed regarding the Hall of Records. that the building can be moved, with Mr. Gannon to restore it. He commented that it is his feeling and that a transaction can be made He suggested to the Council and Bakersfield, California, August 17, 1983 - Page 9 Agency that, if they would certify the EIR and direct staff to negotiate for the removal of the building to another site in the downtown, hopefully, that would alleviate the public concern regarding the building and allow the Truxtun Galleria Project to move forward. He further stated that staff could report back to the Council and Agency at the hearing on the 27th of September regarding a transaction on moving the building. Agency Member Christensen stated that he has read the material and that comments have been received by individuals and groups regarding this project. He stated that the suggestion by the City Manager was good, and that the City should follow up on the cost of moving and rehabilitating the building. He expressed concern that with the comments received tonight, there is great interest in the Truxtun Galleria Project and Hall of Records, and, therefore, suggested that the Council and Agency take additional time to consider the EIR before making a decision. This will ensure that all input has been received and the body has had an adequate opportunity to consider the matter before taking action. ile stated that he did not want to delay the resolution, and, therefore, made a motion that the hearing approving and certifying the EIR be continued to September 27, 1983, with the hearing on the Disposition and Development Agreement. He further suggested that, at the same time, a report be given regarding the expenses of the Redevelopment Agency on landbanking and a cost for moving the Hall of Records and rehabilitating the building. City Manager and Executive Director Kelmar stated that pursuant to discussions with Tim Gannon, he has expressed an interest in incurring the cost for moving and rehabilitating the boilding himself. City Attorney Oberholzer stated that the hearing has been closed, and that the decision of the body can be continued, but not the hearing. Agency Chairman Barton questioned staff, based on Agency Member Christensen's motion, if the delay on the EIR prohibits staff from proceeding with investigating the relocation of the building Bakersfield, California, August 17, 1983 - Page 10 with Tim Gannon, negotiations with the County and the Disposition and Development Agreement with Terry Moreland. He questioned if the delay would stop part of the process. City Manager and Executive Director Kelmar stated that the action on the certification of the EIR and discussion on moving the Hall of Records are not related. He explained that the efforts of the County might be stalled because they would like to be assured that the City is behind this issue before they seriously negotiate in terms of sale price and possible relocation. Agency Chairman Barton expressed concern that the Agency should proceed with the EIR and also direct staff to pursue with the discussions with Gannon for relocation and find a site for the structure. City Manager and Executive Director Kelmar explained that the County Board of Supervisors have indicated that they have a willingness to sell the Hall of Records, subject to a fair price and subject to the certification of the EIR. This would allow staff to negotiate a price with them. He felt that until the EIR is certified, the County would not seriously negotiate with the City and developer. Agency Member Christensen stated that he did not want to impede the action of the Galleria because he supports it. He stated that many projects have been proposed for the downtown, but did not go forward, and that there are many hurdles before the project is finished. He further stated that at the end of the 15-month period, if nothing is accomplished, then maybe the Redevelopment Agency should be dissolved because of excessive false starts. Upon a motion by Agency Member Rockoff, Redevelopment Agency Resolution No. RA13-83 making findings and recommending certification by the City Council of the Final EIR for the Proposed Truxtun Galleria Development Project, was adopted by the following Bakersfield, California, August 17, 1983 roll Ayes: Noes: Absent: call vote: Agency Members Christensen, Payne, None Agency Members Means, Ratty Mayor Shell complimented the City's Historic Rockoff, Barton Preservation She Commission and stated they have done a yeoman's task. questioned how long the Disposition and Development Agreement will be available for the public, Councilmen and herself to review. City Manager and Executive Director Kelmar stated that it will be available two weeks prior to the hearing. Upon a motion by Councilman Barton, Resolution No. 110-83 of the Council of the City of Bakersfield declaring it has reviewed, evaluated and considered the information contained in the Final EIR for the proposed Truxtun Galleria Project, making findings and certifying that said Final EIR has been completed in compliance with the California Environmental Quality Act, State EIR Guidelines and Council Resolution Ilo. 60-80, was adopted by the following roll call vote: Ayes: Councilmen Christensen, Payne, Rockoff, Barton Noes: None Absent: Councilmen Means, Ratty Agency Member Payne made a motion to direct staff to submit a contingent offer to the County of Kern for purchase of the Hall of Records. This motion was unanimously approved. City Manager and Executive Director Kelmar requested authorization to proceed with negotiations to determine if the City can come to an agreement for moving the building. Agency Member Christensen made a motion to direct staff to proceed with negotiations for relocation and cost of rehabilitating the Hall of Records. This motion was unanimously approved. ADJOURNMENT Upon a motion by Agency Member Christensen, the Redevelop- ment Agency's portion of the joint public hearing held before the Bakersfield, California, Aogust 17, 1983 -Page 12 Council on the Environmental Impact ~eport for the proposed Truxtun Galleria Project, was adjourned at 6:35 p.m. Upon a motion by Councilman Christensen, the joint public hearing before the Council and Redevelopment Agency on the Environ- mental Impact Report for the proposed True, tun Galleria Project, was adjourned at 6:35 p.m. {~M~ES J. ~ZARTON, Chairman Bakersfield Redevelopment Agency