HomeMy WebLinkAbout04/28/81 MINUTES RA MINUTES
BAKERSFIELD REDEVELOPMENT AGENCY
Regular Meeting - April 28, 1981
The Regular Meeting of the Bakersfield Redevelopment Agency was called
to order by Chairman Casper Tuesday, April 28, 1981 at 4 p,m, in the City Council
Chamber. The secretary called the roll as follows:
MEMBERS PRESENT:
Vincent Casper, Chairman
Jeanne Foth, Vice Chairman
Dr. Richard Bilas
Frank Lewis
John Mooneyham
Gene Winer
ABSENT:
Dr. Glenn D. Puder
STAFF PRESENT:
Philip Kelmar, Executive Director
Richard Russell, Deputy Executive Director
W. D. Higglnbotham, Treasurer
Richard Oberholzer, City Attorney
Tom Swallow, Deputy City Attorney
Dennis Needham, Director of Fire & Development Services
Dale Hawley, Director of Public Works
David Kennon, Principal Planner, Community Development
OTHERS PRESENT:
William Kuhs and Wilbur Rickett, Partners of Bell Tower Associates
Robert A. Miller, Project Director, Bell Tower Associates
Robert Clayton, Financial Consultant, Bell Tower Associates
Lawrence Guay, Developer
Ivo "Buck" Keyser, General Manager, Golden Empire Transit District
MINUTES
Minutes of the Special Meeting of March 16, 1981, and the Regular Meeting
of March 24, 1981, were approved as mailed.
FINANCE
a) Voucher Approval ~. Following discussion, on motion by Ms. Foth, seconded
by Mr. Mooneyham, and carried, Vouchers Nos. 127 through 146, totaling $16,711.65
(See Voucher Register dated April 28, 1981), were approved for payment. Staff was
instructed to withhold payment of Voucher No. 126 in the amount of $1,503.90,
payable to Alliance Appraisal Company, for further review.
CORRESPONDENCE
a) UDAG Letter - The secretary read a letter received April 10, 1981 from
Margaret B. Sowell, Deputy Director of HUD's Office of Urban Development Action
Grants, Washington, D, C., notifying the City that its application for a grant for
~he Shopping Center Project "...has not been approved." Reasons for not approving
were listed as "...J.C. Penney's Capital Appropriation Committee approval occurred
after the end of the review round, firm financing for the acquisition and construc-
tion of Gottschalk's Department Store and clarification of some public expenditures
are required." The letter stated the City had made great progress during the past
calendar quarter to ready the project for funding consideration, and June 6, 1981
was given as the date all supplementary information could be received at the UDAG
office in Washington in order to be considered for the next quarter funding.
Mr. Needham reported he spoke with a UDAG eligibility expert regarding
the City's status. He explained there were seven categories, and the three which
Bakersfield became eligible under were: 1) Per capita income increase,
2) Unemployment rate, and 3) Poverty level. Bakersfield became ineligible,
Mr. Needham explained, because the City's per capita income increased more than
the allowable rate. He stated he was advised that Bakersfield's application could
be rolled over several more quarters, even past July; however, no new applications
for this City, past July, would be considered.
b) Letter from Mr. Ted Fritts - The secretary read a letter dated April 7,
1981, from Mr. Fritts, Co-Publisher and Editor of the Californian, who expressed
his disappointment that the City's UDAG application had not been approved, and
offered his I't00% support" for the shopping center project. Following discussion,
on motion by Mr. Wirier, seconded by Mr. Lewis, and carried, staff was instructed
to send a copy of Mr. Fritts~ letter to Mr. Dan Donahue, and to pursue the last
paragraph of the letter.
To Dr, Bilas' question regarding pursuing other methods of financing,
Mr. Kelmar responded he had met with the project developer, Mr. Dan Donahue,
explaining that his feeling at this time was that the City would not be receiving
the UDAG funding~ nor probably would the City support another application. Mr.
Kelmar stated he had asked the Agency's financial consultant for a current
financial analysis of the project in light of the fact that the Agency is now
looking six months down the~road as a possiblity for doing anything if the
Council does not want to continue with the application for UDAG funds.
Mr. Kelmar stated the developer is very actively pursuing private
financing, and that he apprised the developer of the fact that the City was going
to have to seek other developers if the Griffith Company was not forthcoming with
financing. Mr. Donahue asked for a little more time, and Mr. Kelmar told him he
would be allowed another couple of months to put his package together, noting that
the developer does have the stores committed.
PROJECTS
a) Specific Plan - Mr. Kennon reviewed the preliminary goals and objectives
of the Specific Plan as pointed out in his memo dated April 22, 1981, and as pre-
sented at last month's meeting, and suggested that Agency members m~ght wish to
refer the proposed Plan to its Development Committee for review in order that the
Agency will know in what direction it wishes to go prior to submission of the
Plan to the Council wlth its recommendations, and prior to starting the second
phase of the Plan. Chairman Casper asked that input from members be given to the
Development Committee.
b) Hotel - Mr. Russell referred to a memo dated April 22, 1981 from his
staff, with an attached list of individuals and organizations who received copies
of the RFP for the proposed hotel. He noted that a list of land appraisers who
had recently been active in the central business district was provided each reci-
pient of the RFP in response to a number of inquiries concerning land and lease
values in the project area, Mr, Kennon stated contact had been made by several
developers who seem interested in the project. It was the consensus of Agency
members that proposals should be reviewed by the Development Committee first, then
brought to the Agency with the Commlttee~s recommendations for the Agency's selec-
tion of those developers to be interviewed. Mr, Russell noted the RFP allowed
60 days to respond.
c) Muttimoda! Terminal - Mr, Kennon reviewed the progress on this project,
noting that by their letter of February 17, 1981Caltrans notified the City that
the application for SB-620 funds had not been included in the budget for the coming
year. Mr. Kennon stated reasons given were incomplete environmental documentation
and incomplete intercity terminal site selection process. He stated these are
being resolved, and the project should receive strong consideration for future
funding.
Mr. Keyser stated that rejection of the application for SB-620 funds
would not hurt GET, that the'bus district had applied for federal Urban Mass
Transit Administration money to build its terminal. Under this funding, the
government would supply 80% of the funds. He stated alternative sites were now
being considered since the proposed shopping center is now uncertain, although
the block bounded by K, L, 19th and 2Otb Streets, across from the proposed mall,
is the number one location being considered.
Copies of a letter from Quad Consultants dated April 28, 1981, reviewing
the status of this project, was given to Agency members. Mr. Kennon noted that
the next phase of the project will be the financing, Mr, Guay, developer,
commented that when Quad's report is completed, he and Mr. Keyser will get the
package ready for a formal presentation to the Agency,
d) Bell Tower Associates' Rehab Project - Chairman Casper introduced
Mr. Kuhs, a partner in Bell Tower Associates, who in turn introduced another
partner, Mr. Wilbur Rickett; their Project Director, Mr. Robert A. Miller; and
Mr, Robert Clayton, their Financial Consultant from Newport Beach.
Mr. Kuhs presented a proposed major commercial rehabilitation loan
program for their Old Church Plaza project in Block 288 on Truxtun Avenue, which
provides for the issuance and sale of bonds of the Agency under either the
Community Redevelopment Law or the Marks Historical Rehabilitation Act of 1976.
(Bell Tower applied for, and received, placement of this structure in the
National Register of Historic Places.) Mr. Kuhs explained that the proceeds of
the bonds would be used for rehabilitation of buildings which are in the
Redevelopment Project Ar~a, and repayment of the bonds would be limited to the
revenues produced from loan agreements entered into between the Agency and the
developer.
Mr. Robert Clayton related his successful experiences with this type
financing for projects in the City of Santa Ana, He assured the Agency that
neither they, nor the City, would have any liability in the event of default by
the developer (the property would be security for the loan), and that the Agency
would receive the tax increment benefit for the project. He also noted that the
Agency may also receive an eighth of a point on the loan to service the cost on
the bonding.
Mr. Oberholzer recommended adoption of two resolutions presented by
Bell Tower Associates, stating that they have several escape clauses through
which the Agency could withdraw if they so desire, i.e., if not sent to the
Council, or if the Agency is not satisfied with any aspect of the project.
Mr. Kuhs assured the Agency that they did not know of anything bad about this
proposal, and if they learn of anything, they will bring it to the Agencyls
attention and Bell Tower would withdraw the proposal.
Following discussion, on motion by Dr. Bilas, seconded by Mr, Winer,
RESOLUTION NO. RA2-81, "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
BAKERSFIELD ADOPTING A MAJOR COMMERCIAL REHABILITATION LOAN PROGRAM," was
adopted by the following vote:
AYES:
NOES:
ABSENT:
Casper, Foth, Bilas, Lewis, Mooneyham and Winer
None
Puder
Following discussion, on motion by Mr. Lewis, seconded by Ms. Foth,
RESOLUTION NO. RA3-81, "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
BAKERSFIELD AUTHORIZING BOND ISSUES FOR THE FUNDING OF PERMANENT LOANS FOR
REHABILITATION OF SPECIFIED PROPERTIES AND MAKING CERTAIN FINDINGS IN CONNEC-
TION THEREWITH," was adopted by the following vote:
AYES:
NOES:
ABSENT:
Casper, Foth, Bilas, Lewis, Mooneyham and Winer
None
Puder
Mr. Kuhs thanked Agency members for their time and expediency.
e) Parking and Office Project - By his letter of April 23, 1981 to the
Agency, Mr. Lawrence E. Guay requested an exclusive right to negotiate for a
long-term ground lease on City-owned property located between "K" and "L" on
18th Street. The site currently has parking for 97 cars, and Mr, Guay's proposal
is for a multi-story office complex with more than three times the number of
existing parking stalls (four levels), and five stories of office space,
totaling approximately 15,000 square feet per floor.
Following discussion, on motion by Mr. Lewis, seconded by Ms. Foth,
Mr. Guay was granted a 60-day exclusive right to negotiate for a long-term
ground lease on the City's property on 18th Street between "K" and "L" Streets
(one-half of Block 272), by the following vote:
AYES: Casper,
NOES: None
ABSENT: Puder
Foth, Bilas,
Lewis, Mooneyham and Winer
f) Contract for Special Counsel - Mr. Swallow stated he recommended the
firm of Weiser, Kane, Ballmer & Berkman be notified that their services are no
longer needed except as Special Counsel for the Shopping Center Project, that a
letter of thanks for their services be sent; and that the Agency Chairman be
authorized to execute the agreement as presented in correspondence in last
month's packet for the services of Mr. Joseph E. Coomes, Jr., of the firm
McDonough, Holland & Allen of Sacramento and Newport Beach, as Special Counsel
for the Agency on all new projects.
Ms. Foth stated she believed the firm Weiser, Kane, Ballmer & Berkman
should be retained only as long as the present developer is on the Shopping
Center Project. Mr. Swallow concurred. Mr. Lewis asked if this would be dual
representation, and Mr. Swallow assured him it would not be, since the new firm
would be used only on new Agency projects.
Mr, John Brock spoke from the audience, asking the question was the
Agency going to retain the former Jacobs~ firm and hire additional counsel. Me
also asked how come City Counsel couldn't handle those situations, and why does
the Agency have to go outside Bakersfield for these services. Both, Agency
members and the Deputy City Attorney, responded that it takes many hours of
study and research to investigate some of the problems encountered, which the
City Attorney's office does not have time for, and which can be done cheaper by
a specialist firm that keeps current on all changes in California Community
Redevelopment Law.
Dr, Bilas stated Mr. Brock had raised questions that ought to be con-
sidered. He said he would llke to know how much money this Agency has expended
retaining Mr, Jacobs' firm, and what it would cost to hire a City Attorney (or
whatever the tltle would be-~a person who has the expertise) so this might be
considered in the future.
Chairman Casper thanked Mr. Brock for his comments.
Following discussion, on motion by Ms. Foth, seconded by Mr. Lewis,
and carried, RA2-81, "AGREEMENT FOR LEGAL SERVICES," by and between the Agency
and McDonough, Holland & Allen was approved and the Chairman authorized to
execute. Staff was directed to notify Weiser, Kane, Ballmer & Berkman that their
services were no longer needed except as Special Counsel for the Shopping Center
Project, and only for as long as John S. Griffith & Company is the developer,
and to thank them for their services.
5:30 P.M. DR. BILAS ASKED TO BE EXCUSED TO KEEP A PREVIOUS APPOINTMENT.
GENERAL
a) Future Planning Activities - Mr, Kennon briefly reviewed progress on
this Plan, and stated staff had begun puting together some data they had been
collecting relating to land use patterns, circulation, and a graphic display of
the parking problems, which will be brought before the Agency soon.
b) NAHRO Annual Conference ~ Information on this conference to be held in
Santa Clara May 16 through 19, 1981, at the Marriott Hotel, was given to Agency
members, and they were requested to get their requests for reservations to staff
by Friday, May 1st.
c) League of Calfiornia Cities Seminar - This Economic Development Seminar
is to be held June 4, 1981, at the Fresno Hilton. Agency members were asked to
get their requests for reservations to staff by Friday, May 1st.
ADJOURNMENT
There being no further business to come before the Agency, Chairman
Casper adjourned the meeting at 5:40 p.m.
Bernice E. Stewart, Secretary to the
Bakersfield Redevelopment Agency
VINCENT CASPk'~E/, Chairma~'~J
Bakersfield Redevelopm~Agency