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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~