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HomeMy WebLinkAbout07/13/83 MINUTES RAt'i I N U T E S ~AKERSF..~I,~ P. EDEVELOP~!ENT AGENCY Regular Fleeting ..... July 13, 1983 The Regular £'.eeting of the i~ake~sfie!4 Redevelopment Agency was called to order by Chai:,:man I!,arton on Wednesday, July 13, 195~ ai:- 5:00 p.m. -:n tl'e City :-fall Co,moil Chambers. The Secretary called the roll as follows: MEMDERS PRESENT: James Barton MEHBERS ABSENT: Chris Christensen John Means Thomas Payne Art Rockof~ Donald Ratty MINUTES l>i~nutes of the Special ~,eeting of June 27, 1983, were approved as presented. z, CnE~.ULE~ PUBLIC oTAT~2:ErTo 1) Mr. J,sck Cass~dy, representing Hedrick/lqcBride Developmen Corapar. y, was present to give a silatus report on the developme~:r of ~:_,~. ~,~o~v~,~-~..,.,--o~,'~ ~,.n,~--, ...... :o,_el. '~ s..ate~ ,.nc,_ tLey wLil :,e con- xo~"el abe that k.. [';cgrSde is ready to prepare tie documents, oee...s ~ ' e Age:ocy's financial advisors to resolve the Cii:y's program crSteria in the event of bond fi~'ancSng, r';r. Cass~clv .s-~'-~'.~.,.c. ~hat he 'nar:' 'ra~ke6] ' ~.~fth staff regarding ~ sign being plsce:~ on if, ne triangular portion of the C~vic Center wf~'s a large rendar~p of the '~xo,_e]~ along w~th the names of the investors: that this create additional interest in tl'xe downtown hotel project. Ir. ",eans questioned ~ahen ;rl'te developer would nave the le,_.er ' . s.a,.ec a~= letter of credit wonld be avaS1- h ...... They have set s deadline for a. lew]_,_a]n the next few wee~.s. Augwst 1,.,=or' a c~ec~' 's~on on permanen;~ financing p, ~lr. Rockoff c. uescione'J staff if the C:~ty was ~ t.. 5ennon ,,:-x_ ,,~, -':,o ,mol ~-~c..~_.oP. of ;C e 6eveloper's po., cr ~e"r~-. of ~'~,:~ ~ we wot:!~ ~mmeCia~ely !:e~:;_n ~cqu~si~ion. 2) ira. Z:.!l Paynter of kill_lard Archuleta, Eddy, Paynter gssocigles, representSng lloreland Corporation, was present to ,:ecues an exclusive ~r~ghh to negotiate for the development off a downlov:n retail shopping center, flr. Faynizer rev{ewed the concept for this project and indicated that ii: encompasses 13 city blocks wi[:k approximately 3,000 parking spaces proposed, ile further' ex.:]alned that the project will be in a phsse development on both s!?.es of Chester Avenue. lie exl:la~ned ~:hat a bridge is proposed ::o link the easz side to the west si,de of Chester Avenue. ,~[r. Kelmar s~ated tha~ one cf q"xe concer~ns ~s %,~e amount of lan?. to ~;e acqui-,'e~ fo~- ~_~:'i.s .-,~',oject. Ir. Kelmsr sta~ed ~hat ~' ~s won]~ probgbll be m compac? ~evelopme~t 10ecause of t~e ~;:~gh ~nost of land. !7-,'. Christensen cornmeal]er' q~a~ ]]ere are many inta,~f~ibl, es ~n a projec~ like chis. L]e slate~:~ that Yacts cannot be ~ssued until t~ey f~o throu[~!~, all ;~',.e p-e]<~&nar~es~ ~-ccv~!ng t';~e lgn~, and ~ inane Cng. Mr. Payne questioned l!r. Paynter's personal feelings about the viability of the project if Penneys leaves the downtown. Pit. Paynter stated that if Penneys leaves downtown it would hurt the project. He stated ~hat there are other majors that want to be downtown that axe not located in Valley Plaza. ~4r. Payne questioned that if the Agency gives a one-year exclusive ~ight for this s4te location, and three weeks from now there is an announced commitment of Penneys to move outside the downtown, would their intent be to abandon or porsue this project. b~r. Paynter stated that he hopes that if Penneys does leave the downtown that no one will give up on downtown because of that action, it will hurt the project, but it is not going to be devastating; another m~or will have to be found to fill the spot. ~r. Payne questioned if this proposal, as now conceived, could be modified to two or three majors along with a couple of semi-majors and st~ll be a viable project. ~ir. Paynter stated that the rea] key is how much shop space can be located in the mall. P4r. Means questioned if the $10,000 good faith deposit is refundable, if in 180 days they have not submitted a preliminary financial analysis. i']r. Oberholzer stated that there is nothing 4. n the agreement to prevent the developer from getting the deposit back if he didn't perform one of these items. P~r. Means stated chat he prefers the agreement to state thal the City would be able to keep the deposit. He also commented that an agreement with t.1cDonald Group, Ltd. Development is anticipai:ed to occur within the next couple of weeks and he recommended that the joint develope~:' agreement be part of the schedule (Exhibit "B") ~n 30 days along with the qualificat4ons. ~4r. Means recommended that the 90 days be changed to 30 days. Mr. Chnistensen questioned Mr. Means as to why he was reducing the number of days. Y~r. Means responded stating that based on discussions with the consultants -it would not be unrealistic to move from 90 days to 30 days. ]lc felt that the ~'~cDonald G~'oup should ge,~ involved as quickly as possible to try to put together a .d, eal wi~[~ May Co. and Penneys. ~r. Christensen expressed concern about the traffic flow in the future and questioned staff 4f there has been a survey on the traffLc flow in these street sreas. ~ir. Kelmar stated that there was a recent study done by Kern COG for the metro are~ in which they p~ojected traffic flow in different streets by the year 2000. Iir. Rockoff stated that he would like to see the project come together earlier, and he questioned why it was set at 90 days. blt. Kelmar stateJ that it was the suggestion of the consultan~ and~ under normal ci?cumstsnces, this is a reasonable period of time. t,,ir. Rockoff suggested that the ,!eveloper and co-developer sobmi~ ~he~r f~nanci~l statements at the same time they sub~.~it their o'~:.slificat"ons snd t1-e joint development agreement. slso stated that since ~he t:~me is stipulated in the agreement it should be noted on the time table (E×hiLit "E"). He further commen~ed that if there ~.~ss a prol. lem with getting the f~nancial statements he wouldn't want this agreement to be executed. Mr. Christensen questioned the hurry with the project and if someone was standing in the wings if the project faulters at' the end of the 30th day. He stated that the agreement states that the joint developer shall be a recognized, successful developer of regional shopping centers. Mr. Rockoff stated that the agreement with the co-developer is probably the most important effort to get this project off the ground and get the wheels in motion. Mr. Means stated that the financial statement could be de- livered very easily, that the agreement does not have to be terminated because they didn't deliver it to the Agency on time. Nr. Benjamin Benton, representing the Haberfelde building, expressed his concern about the local merchant not being able to afford the spaces in the new malls that have been proposed, and indi- cated his experience with Valley Plaza. He stated that the City should take care of what exists first. ~r. Payne stated his concern toward granting a one-year ex- clusive r~ght to a developer who is not present. Nr. ~eans supported Mr. Payne's position. He further stated that in response to an article that inferred that Nr. Christensen or himself were against some downtown projects, he stated that he had never been against a downtown project and his concern was the way the projects have been done and is in favor of a mall being coDstrucEed. ~r. Payne questioned Mr. Moreland about his personal feelings as to how feasible this project would remain if Penneys does leave tke downtown and make a commitment to Valley Plaza in the next few weeks. N~'. Tez~'? Nore]andof Moreland Development stated that the prcjatt woul6 be in severe jeopardy ~f Penneys or May Co. consumates a /%nl with Valley Plaza. He stated that the exclusive r~ght has be~.n subordinated in order to let Penneys and May Co. know that ~ g'~3a serious about this project. Ur. Payne q~,astioned the effect of the exclusive right if the c~,-develoDers are no longer interested in pursuing this project beca'~se of the ?~.~!1 out of May Co. !..r. Oba~olzer stated that there is no specific reference to any particula~ major store coming into the downtown. As long as t%~e developer continues to meet the Schedule of Performance the Agency w~ll be obligated for the 15-month period. lit. Chr~stensen stated that he has consistently pushed for downtown ~evelopment and more parking in the downtown. He commented that the mall previously proposed died of its own weight. £~r. 2ockoff asked Mr. Moreland if the change in Exhibit ~ndicating 30 days instead of 90 to submit the qualifications, f~nancial statements and joint development agreement would be a major hurdle. Nr. I~oreland stated that there would be no problem with the ci~ange. Nr. Pockoff made a motion to adopt the Exclusive Right to I~iegotiate to change Exhibit "B" ~o state 30 days for the submittal of joint developer qualifications for Agency approval, a copy of ~e ~greement with joint developer and the financial statements of both the developer and joint developer. The motion was carried by ~he following vote: AYES: ~rton~ Christensen, Neans, Payne, Pockoff ~OES: None ABSTAINS: None ABSEi~T: P. atty CONSENT CALENDAR A) Approval of Design Beview Boar~ recommendation relative to a projeci: located tn the Redevelopment Project Area. l. Approve communication to~,Jer for Communication Enterprises at 2315 "Q" Street. Mr. Kennon stated that the structure ~s located on the corner of 23rd and "Q", standing 160 feet tall and would be used for transmitting signals to pagers. Mr. Rockoff questioned if the tower would have any adverse effect on telephone computers or any communication throughout the downtown, because they would not be able to run their computer. Mr. Kennon stated that the use of this equipment is regulated by the Federal Communications Commission. Mr. Christensen questioned what the communication deals with. Mr. Kennon stated thaz the company is privately owned and sends out signals to the pagers (beepers). Mr. Rockoff made a motion to defer this item until the next meeting in order to receive more detailed information. 7')~e r;~etion was carried by the following vote: AYES: Chrlstensen, ~eans, Payne, Rockoff, Patton NOES: ~one ABSTAINS: None ABSENT: Ratty ~DJOURN~iENT There being no further bus~ness to come before the Xedevelopment Agency, [~r. Christensen made a ~otion to adjourn the meeting at 6:06 p.m. ~AMES J. F~4RTO~!,. C, airman ~akersfield Re(eYeJopment Agcnc?