Loading...
HomeMy WebLinkAbout04/13/83 MINUTES RAMINUTES BAKERSFIELD REDEVELOPMENT AGENCY Regular Meeting---April 13, 1983 The Regular Meeting of the Bakersfield Redevelopment Agency was called to order by Chairman Barton on Wednesday, April 13, 1983, at 5:02 p.m. in the City Council Chambers. The Secretary called the roll as follows: MEMBERS PRESENT: James J. Barton Chris Christensen John Means Thomas Payne Art Rockoff MEMBERS ABSENT: Vernon Strong Donald Ratty MINUTES Minutes of the Regular Meeting of March 23, 1983, were approved as presented. SCHEDULED PUBLIC STATEMENTS Mr. McBride, of Hedrick/McBride Development Company, was present and gave a report regarding the status of the proposed Convention Center Hotel project. Mr. McBride stated that their firm is working with five entities to complete the financing. The first entity is Bank of America which is the perspective construction lender. The second is Wallace Moir a permanent lender. The third is the title company which is Title Insurance and Trust. The fourth entity is the State of California Corporation Commission, and the fifth is the City who will own the property. Mr. McBride stated that they feel confident with the status of the permanent loan from the Coalition of Trade Union Pension Funds. He stated that the Coalition of Trade Union Pension Funds has an operational standard which allows only 12 months on a permanent loan commitment, The fee for commitment, depending on the negotiating strength and size of the loan, will be between $180,000 and $240,000 which must be part of the investment package. Mr. McBride stated that Bank of America wants to be assured the entire loan commitment period will be available for construction before they make a construction loan. Mr. McBride stated that they are discussing a 14 to 15-month permanent loan com- mitment. He explained that Title Insurance and Trust is trying to work out a program to protect the Bank of America and the Pension Fund. Mr. McBride stated the City was perhaps the most important part of this effort because the Agency must acquire the property and this could not begin until the financing commitments were in place. Mr. McBride further stated that they are working with the Agency's financial consultant, Richard Botti, and they will be meeting with staff to work out a program to bring this all together. Mr. Rockof£ asked staff if the City could begin acquiring the land subject to the developer completing his financing package. Mr, Oberholzer stated that the City cannot utilize eminent domain to acquire the land subject to commencement of the project. He explained that the City could make open-market offers for purchase contingent on commitment of the project. This could only be done with the concurrence of the property owner. Mr. Barton asked if all these efforts can be timed where they all come together in one week. Mr. McBride stated that except for the California Corporation Commission, all the various entities have to see a program that will come together at one time. Mr. Barton questioned if staff can help in the course of acquiring the properties and as to how long it will take. Mr. Oberholzer stated that the City must follow certain procedures with respect to acquisition of properties which are in the eminent domain law. He stated that the City would have to make an offer to the property owner prior to the approval of a resolution of necessity for acquisition of property. He stated that a notice of public hearing must be sent to the property owners providing 15 days of notice of that hearing. After that, it would take approximately 60 days to acquire possession of the property. Mr. Christensen asked the number of parcels involved in this acquisition. Mr. Kelmar stated that there are five individual property owners to deal with. Mr. Oberholzer stated that one of the properties is an estate that the City has tried to acquire in the past, but now has a court order issued. He stated ~hat the property will probably end up in litigation before it is finally settled. He further stated that the City, in order to take possession of the property, will have to establish a value for the property and will have to post that money in court and, sometime within that year, there will be a trial to determine the final value of the property. Mr. Rockoff questioned if there were five willing sellers. Mr. Kelmar explained that the City has not approached the property owners. He stated that the City does not know if there is a project, and will not know until the developer presents the financing. Mr. Payne asked how the members can help with this project. Mr. McBride stated that Bank of America might possibly take a construction loan without being covered. He stated that another solution would be the developer present a letter of credit that would guarantee the City will not get stuck with the land if the Agency were willing to begin acquisition before the developer purchased his financing commitment. Mr. Payne asked if the developer is working with the initial time frame, or do they need additional time. Mr. McBride stated that they might need an extension of the May 15 deadline because of the complexity of the financing. AGENCY STATEMENTS Mr. Means stated that he has had numerous calls from people asking questions about the proposed construction of the two high rise buildings in the downtown area. He stated that he told them that the City does not have a lot of information. He stated that he is particularly concerned with the amount of money that will come out of the general fund to allow the project to start, and further stated that his mind is not made up regarding the project and won't be until it is time to vote. He stated that this project is in its initial stage, and a number of questions still need to be answered. Mr. Christensen said that a few people have commented to him regarding the project, and he told them to get all the facts~ He stated that he is leaning toward the situation as it exists, but will have to wait until all the facts are in. NEW BUSINESS a) Mr. Christensen made a motion to adopt the Resolution No. RA4-83 of the City of Bakersfield Redevelopment Agency, de- claring its intention to sell bonds of said Agency in the amount of six million one hundred thirty thousand dollars ($6,130,000) fixing time and place for taking bids and directing publication of notice inviting bids, which was carried by the following roll call vote: AYES: Christensen, Means, Payne, Rockoff, Barton NOES: None ABSTAINS: None ABSENT: Strong, Ratty b) Mr. Payne made a motion to ~opt Resolution RA5-83 of the City of Bakersfield Redevelopment Agency, authorizing the issuance of Tax Allocation Bonds of said Agency inthe principal amount not to exceed six million one hundred thirty thousand dollars ($6,130,000) to finance a portion of the redevelopment project known as the Downtown Redevelopment Project, which was carried by the following roll call vote: AYES: Means, Rockoff, Barton, Christensen, Payne NOES: None ABSTAINS: None ABSENT: Strong, Ratty c) Mr. Rockoff made a motion to adopt Resolution No. RA6-83 of the City of Bakersfield Redevelopment Agency, approving the official statement to be used in connection with the "Downtown Bakersfield Redevelopment Project, Tax Allocation Bonds, 1983" of said agency, which was carried by the following roll call vote: AYES: Payne, Rockoff, Barton, Christensen, Means NOES~ None ABSTAINS: None ABSENT: Strong, Ratty d) ~r, Christensen made a motion to adopt Resolution No. RA7-83 of the City of Bakersfield Redevelopment Agency, amending the Lease Agreement made as of August 1, 1984, which was carried by the following roll call vote: AYES: Rockoff, Barton, Christensen, Means, Payne NOES: None ABSTAINS: None ABSENT: Strong, Ratty e) Request for Proposals to prepare an Environmental Impact Report for the City of Bakersfield General Plan Redevelop- ment Element. Mr. Kelmar stated that this Environmental Impact Report is in connection with the proposed plans for the downtown area, and that it could cost between $50,000 and $75,000 for the whole Downtown Redevelopment Plan EIR. Mr. Means questioned if some of the cost could be reimbursed by developers of projects downtown. Mr. Kelmar stated that there is a possibility that some of it could be reimbursed if things materialize with some other development. Mr. Means made a motion to authorize staff to proceed with the issuance of the Request for Proposals to prepare an Environmental Impact Report for the General Plan Redevelopment Element. The motion was carried. AYES: Barton, Christensen, Means, Payne, Rockoff NOES: None ABSTAINS: None ABSENT: Stron~ Ratty f) Design and Construction of 18th and Eye Parking Structure. Mr. Rockoff made a motion to accept bid "A" of Parr Contracting Co. for design and construction of the 18th and Eye Parking Structure to be financed by the sale of Tax Allocation Bonds, reject all other bids, and recommend approval fo this bid to the City Council. The motion was carried. AYES: Christensen, Menas, Payne, Rockoff, Barton NOES: None ABSTAINS: None ABSENT: Strong, Ratty ADJOURNMENT There being no further business to come before the Redevelopment Agency, Mr. Rockoff made a motion to adjourn the meeting at 5:35 p.m. Bakersfield Redevelopment Agency