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