HomeMy WebLinkAbout03/23/83 MINUTES RA MINUTES
BAKERSFIELD REDEVELOPMENT AGE?~TCY
Regular Meeting---March 23, 1~ 72
The Regular Meeting of the Bakersfield Redevelopment Agency
was called to order by Chairman Barton on Wednesday, March 23, 1983,
at 5:05 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
Vernon Strong
MINUTES
Minutes of the Regular Meeting of March 9, 1983, were approved
as mailed.
SCHEDULED PUBLIC STATEMENTS
Mr. Jack Cassidy, of Bedrick/McBride Development Company,
reported on the status of the Convention Center Hotel project. H ~
stated that May 15 is the deadline to provide evidence of permanei ~
financing. He stated that their firm is working with San Joaquin
Capital Corporation for financing, and they feel very positive at
this time concerning this effort. Since the City is unable to begin
to acquire land for the project until three to four months from
the point financing is secured, and because of the resultant delay
in ~%aking the site available for construction, it will be difficult
to complete construction of the hotel during the period established
for the commitment for permanent financing. It may be necessary
· to secure additional commitments from their lenders to account for
this time differential. He further stated that a meeting has been
scheduled in April with representatives of pension funds and title
company and Bank of America to discuss this issue.
Hr. Barton questioned if the three to four months will affect
the long-term planning.
l~r. Cassidy stated that it would not create a problem at this
time. He further stated that they are trying to pay as few points
as possible on a permanent loan.
~[r. Xelmar explained that the loan commitment is for a period
of 12 months, and due to the fact that the City can't begin
acquiring the property until after Mr. Cassidy presents the
evidence of financing, there seems to be a question of the time
it will take to deliver the site and construct the project. He
stated that it can be done within a year, and that Mr. Cassidy
may have to work out an 18-month, or longer, commitment period.
[ir. Rockoff asked Mr. Cassidy if he would go on record to say
· that by [lay it would be available.
[4r. Cassidy stated that probably by May 15 the total financing
package will be completed including the equity and debt financing.
Mr. Rockoff stated that he is going to be very rigid on the
iday date.
Mr. Strong asked if after the meeting in April with the in-
vestors, will ?'lt. Cassidy be able to better advise the Agency as
to the status of this project.
Mr. Cassidy stated that they are in a hurry to get this
project completed because of certain events in 1984 regarding
the Olympics; political activity; conventions; and other types
of business.
Mr. Bob Eddy, of Millard Archuleta, Eddy, Paynter Associates,
was present to give a report regarding the Truxtun Galleria project
proposed for downtown. He stated that the firm has been in the
process of preparing the model, designs and the presentation
documents. He further stated that they have contacted people and
businesses which are located in the project area, and the responses
received were very encouraging.
Mr. Bill Paynter, of Millard Archuleta, Eddy, Paynter Associ-
ates, project designer, explained the general concept, plans and
parking for this project.
Mr. Terry Moreland, representing Anglen/Moreland Development,
was present to report on financing of the proposed project.
Mr. Means questioned the degree of interest shown in the
discussion with Gottschalks.
Mr. Moreland stated that they met with representatives of
Gottschalks, and their comments were favorable. He further stated
that they will be meeting with Gottschalks on the 5th of April,
and will bring back information to the Agency.
Mr. Rockoff questioned the financing for this project.
Mr. Moreland stated that their financing is done through two
institutions. He commented that no money will have to be raised.
Mr. Christensen commented enthusiastically about the proposed
parking, the free flow of traffic and local financing stating it
is a can't-fail project.
Mr. Christensen made a motion to grant Truxtun Galleria the
exclusive right to negotiate. The motion was carried.
AYES: Barton, Christensen, Means, Payne, Rockoff, Strong
NOES: None
ABSTAINS: None
Reports
Mr. Kelmar gave a report on the issuance of bonds for the
construction of the 18th and Eye parking structure, stating that
after talking with the consultants he would like the Agency to
consider the sale of bonds at a maximum amount available based
upon our present tax increments. He also stated that the City is
experiencing very favorable market conditions to make it possible
for the City to get a bond issue at approximately 8½ to 9 percent.
He stated that on July 1, the federal regulation for bond registra-
tion goes into effect, whereas, presently the bonds that are sold
are bearer bonds and are much more desirable from an investment
standpoint. He further stated that the City is planning to
construct a parking garage at 18th and "K" Streets, and by
"bonding-out" the City would save approximately $100,000 in
additional bond issuance costs. Mr. Kelmar recommended that
the Agency bond out to the maximum at approximately $5,000,000 to
$5,500,000 with about $2,500,000 towards the 18th and Eye
parking structure. He stated that the remaining funds will be
invested on an interim bases, and would provide additional cash
flow to the Agency.
Mr. Rockoff stated that he agreed with the recommendation, and
said that nothing could be lost by this act because funds that are
not expended on the first parking garage would remain invested
at interest rate; probably higher than the City would be paying
for the bonds.
Mr. Rockoff made a motion to accept Mr. Kelmar's recommenda-
tion and bond to the maximum amount available. A roll call vote
was made and motion carried.
AYES: Barton, Christensen, ~4eans, Payne, Rockoff, Strong
NOES: None
ABSTAINS: None
Consent Calendar
The following items were listed on the Consent Calendar:
a) Aproval of vouchers 203 through 221 totaling $34,209.89.
b) Approval of Design Review Board recommendations relative
to projects in the Redevelopment Project Area.
Payless Shoesource, 1517 19th St.
Recommendation: Approve exterior renovation.
Building located at 2111 Chester Avenue.
Recommendation: Approve exterior renovation.
Move existing sign located on "F" St. 19 1912 Chester Aw~.
Recommendation: Approve signage.
B. F. Goodrich, corner of 21st and "K" St.
Recommendation: Deny signage.
Butterfield Savings, 1530 Truxtun Ave.
Recommendation: Deny signage.
Casablanca Night Club, 1209 20th St.
Recommendation: Approve signage.
National Jewelers Co., 1910 Chester Ave.
Recommendation: Approve signage.
Upon a motion by Mr Strong, Items (a) and (b) 1-7 of the
Consent Calendar were adopted by the following roll call vote:
AYES: Barton, Christensen, Means, Payne, Rockoff, Strong
NOES: None
ABSTAINS: None
~ir. Oberholzerstated that the Agency authorized the purchase
of two pieces of property, the buildings located at 2022 "L" Street
and 1212-1216 19th Street, and both are ready to close escrow. He
recommended a motion accepting the deeds to those properties in
order to be recorded.
Upon a motion by Mr. Rockoff, the deeds to the buildings
located at 2022 "L" Street and 1212-1216 19th Street, was adopted
by the following roll call vote:
AYES: Barton, Christensen, Means, Payne, Rockoff, Strong
~OES: None
ABSTAINS: None
Adjournment
There being no further business to come before the kedeve]op-
ment Agency, Mr. Strong made a motion to adjourn at 5:30 p.m.
Lobccta F. Gazfer_d, ~J~retary
I~3. kermfield Redevelopment Agency
J~S J.~BARTO[~ Chairman
B~ersfield Redevelopment Agenci~