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Home My WebLink About06/08/83 MINUTES RA NI NU TE S BAKERSFIELD REDEVELOPMENT AGENCY Regular Meeting ..... June 8, 1983 The Regular I;eeting of the Bakersfield Redevelopment Agency was called to order by Chairman Barton on June 8, 1983 at 5:06 p.m. in the City Council Chambers. The Secretary called the roll as follows: HENBE2S PRESENT: James J. Barton Chzis Christensen John Means Thomas Fayne Art Rockoff MEMBERS ABSENT: Donald Ratty HINUTES ~inuces of the Regnla~- hee~ ns~ of Nay 11, and continued meeting of I[ay 12, and Special Meeting of Nay 18, 1983 were approved as presented. AGEi4CY STATEMENTS ~5. Barton indicated that since Mr. S:rong ::esigned and is no iongeT a memOer of the Agency, there are six members on the Agency and committees are structured with three membex's. ~,~. Oberholzer clarified that any Jnformal meeting would have ~2o oa less than three membe~-s because h :z'ee now const...,_anes a quo'cum, he ~ - ' that the committees should be reduced to hr. Barton requested that staff come bacR with a method of eit::at' havimg three committees or some formnla for reducing the humidlY' of nembars on each committee at the next Agency meeting. ir. Rockoff read ~,epor~ l~o. 2-83 of the D~velopment and ,~loca~._or~ Commxttee regarding i:he retention of Donalct Renfro and d ' £~ssocSstes for the ~es:,.gn of proposed additions to the Civic i. lr 2ockoff made a motion to accept the report und have ~- ].-._rman e:r~u-e .... the agreement with Donald Renfro an,~ ~ ~ ~ssoc:~ates. ~ 0-,ozT.on was cart_tea by the following vote: ..~>. s~. _e~, C:~,r~sLensen, P~ckoff, I]eans, Payne I.i.q~t T: RaUiV (a) Approval of Vouchers No. 259 through 305 totaling $31,002.76. ~-:~:. ~eans made a motion to adopt item (a) of Cri~;;-id~. which was approved by the following roll ".!.~E;~: CI~ :"_s~ensen, Rockoff, ~ieans, Fayne, ~arton · ,', Z~: ~one 7-[ STAi~,S: ~one A SE~:T: 2atty the Consent call vote: Resolution No. 1A12-83 of t?~e Bakersfield Redevelopment A/lency approving and authorizing the execut:;on of a Second i~'olementat'~on Ag.:'e~r~ent to t[~e E'tsqoosltfon and Develop- ment Ag'ceement between t]:e P,e~eve]o.nment Agency and Bake:-sfield lietropolitar~ Assoc'iation. '7. J eP,.FtS ·,3, ~' ' a P~Ot{ Olq lO PDn570-v'~, :2u, c _,-es0!!- .;.]'-' 0n I]0. [.'_/~z--o~ r,q. Mr. Rockoff stated that he saw nothing in the agreement that ~lows for the forfeiture of the developer's deposit if he doesn't ii~:~ his permanent financing. He stated that had been his intention ~n~ Mr. McBride indicated that there was no problem with the issue of forfeiture. Mr. Oberholzer stated that at the b~ay 12, 1983 meeting the forfeiture wss never agree~ to and the full Agency did not support that position so it was not ~ncorporated into th~s agreement. Mr. Means stated that the reason he had not supported the issue of forfeiture was because his understanding was that although they didn't initially agree to the forfeiture, that somehow if they didn't deliver the financing they would lose their deposit, that is why he didn't s~pport what Art suggested because it was already included. Mr. Oberholzer state~ that Mr. McBride did not find that to be an acceptable condition and that he may not agree to go along w~th the extension with that provision. He stated that as the agreement reads now, ~r. McEride has the right to the return of the deposit. Mr. Payne stated that in looking at the minutes of the meeting, Mr. Rockoff would oppose the motion because the developer does not have sufficient financing, lie sta~ed that there is no in~?ca~ion ~hat the City keeps that deposit. ~ir. Oberholzer stated that ~here were some specific reaso~s why 1,~r. LcE~ide could receive his deposit, but at this stage the only way l~r. McBride can get the deposit is if he fails to obtain the permanent financing. He has met all the other steps. He further indicated that the only way the developer can obtain the deposit after this permanent financing phase is completed, is if the City ~s unable to convey title to the property. ~r. Rockoff stated that he understood that ~r. McBride needed the letter of credit to present to the regional director of Bank of America and to our Attorney ~hich would serve as evidence of permanent financing that he ~eeds, and the $100,00 becomes non~efundable. l'ir. Oberholzer stated that ~r. McBride neede sufficient time to assure the limited partners and the State Corporate Commissioner that he would be able to have the opportunity to get permanent financing. [~. Kennon stated that ~,r. documentation i~o the Corporate a ruling. ~'icBride has submitte6 ~.11 Com~,~issioner~ but has nob ?ece'.'ved Idr. Means stated that his other conce~'n was the recovery of costs and making sure that the expenditure on the part of the City was going to be included in this agreement and that staff was going to show how that would be done. He stated that all the costs and the potential costs incurred or expended would be included in this agreement and that is why he supported it. bir. Oberholzer stated !;hat the discussion was in regards to the bond financing, as to how the City would recover its costs. }le stated that there would be a lower interest rate which would p~oduce a greater return to the developer, and the City should be able to participate in i;hat return. ~r. Kennon stated that all costs associated with the issuance of abond would be recovered from the bond proceeds or a flat one-fourth of one percen~ could be recovere~ from bond proceeds. -2- Mr. Means' motion to approve the Resolution No. carried by the following roll call vote: AYES: Means, Payne, Barton, Christensen NOES: Rockoff ABSTAINS: None ABSENT: Ratty RA12-83 was k~. hea~s indicated that he wanted to change his vote to "no". ho. Means' motion for reconsideration of the previous motion to allow additional discussion was carried by the following roll e~!l vote: AYES: ideans, Payne, Barton, Christensen, Rockoff NOES: None AfSTA.]NS: None ABSEI~T: Ratt/ ~r. Oberholzer stated that the membership of the Agency is six, and with Mr. Ratty not voting on the Agency issues it will take four votes to pass something. He stated that if this does no~ pass then the Agency should be prepared to give the developer 30 gays' notice that he is in default and terminate the hotel project. Ue stated that this vote would determine if the hotel project would be terminated or continued. He stated that if the Agency is concerned about the deposit, then we should give the developer 30 days' notice so that he can come back and renegotiate or pay something for this extension. I.~r. Barton stated thst he understoo8 that if the developer can acquire that letter of commitment from the Bank c~ ~nerica and submit it to the Agency, he has fulfilled the ~e]~glct~on of financing, and the $100,000 would be nonref~ ~. Mr. Rockoff stated that he is po~ ~'~:'e.~c',~.-i to vote for this resolution, but he would give M;r. Ic!~.~'~ '~ .'n opportunity to be heard at the next Agency meeting. P~r. Means raade a motion to approve Resolution No. RA12-83 ap:0roving and authorizing the execution of a Second Implementation Ag?eement to the Disposition ang Development Agreement between the Redevelopment Agency and Bakersfield Metropolitan Association. The motion was carried by the following roll call vo~e: ~YES: Payne, Christensen, Means, Bare, on LOSS: ?,oci:of f A ?TINS: i:ione ALSEI.iT b Hr. P~</ne made a motion to approve the agreements with P~au'hln Well, Ba~'~-on-Aschman Associates, and OUAD Consultants as consultants for the Environmental Impact Report for the Truxtun Galleria project. The motion was approved by the following roll call vote: AYES: i~ayne, Christensen, ~eans, Barton, Kockoff NOES: None AESTAIi~S: lone AESENT Ra_ty c Mr. Payne made a motion to approve the agreement with J;ailey, Ruppel and Nunneley as auditors for the Redevelopment Agency's annual audit repo~'t. The motion was carried by the fo]lowing roll call vote: AYES: Christe~sen, Rockoff, Payne, I~eans, Barton NOES: ABSTAINS: None AESENT: Zatty -3- ADJOURNMENT There being no furi~her business to come before the Redevelop- ment Agency, Mr. Rockoff motioned to adjourn at 5:45 p.m. ./~BARTON, Chairman rsfi~ld Redevelopment Agency W. D./j~ginb0t~,/Jr., Secretary BakerBf~ield Redevelopment Agency -4-