HomeMy WebLinkAbout06/11/81 MINUTES RA MINUTES
BAKERSFIELD REDEVELOPMENT AGENCY
Special Meeting June 11, 1981
A Special Meeting of the Bakersfield Redevelopment Agency was called
to order by Chairman Casper Thursday, June 11, 1981 at 7 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
Dr. Glenn Puder
Gene Winer
ABSENT: None
STAFF PRESENT:
OTHERS PRESENT:
(This list was
ordered deleted
at the 6/23/81
R/A meeting)
Philip Kelmar, Executive Director
Richard Russell, Deputy Executive Director
W. D. Higginbotham, Treasurer
Richard Oberholzer, City Attorney
Tom Swallow, Deputy City Attorney
Calvin E. Hollis, Agency Financial Consultant (Katz, Hollis, Coren)
Dennis Needham, Director of Fire & Development Services
Dale Hawley, Director of Public Works
David Kennon, Economic Development Coordinator
Messrs. Daniel W. Donahue and Tom Schreiber, John S. Griffith & Co.
Messrs. Don Milliken, Larry Sunderland and Wayne Knowles, Daon
Development Corporation.
Mr. Thomas D. McBride, J. H. Hedrick/McBride Development Company
Mr. Donald M. Hart
Mr. H. E. Bergen
Councilmen Christensen, Means, Ratty and Strong
ITEM I: PRESENTATION BY MR. DAN DONAHUE REGARDING SHOPPING CENTER PROJECT:
Mr. Donahue, President, John S. Griffith & Company, reviewed the past
sequence of events in attempting to put this project together, and announced the
formation of a new 50/50 partnership consisting of his firm and Daon Development
Corporation, a real estate development and holding company based in Vancouver,
British Columbia, Canada. He introduced Messrs. Larry Sunderland, Wayne Knowles
and Don Milliken of Daon; and stated that his former partner, the May Company,
would still have a store in the mall, but would no longer be an equity partner
in the development. The project, Mr. Donahue noted, would remain essentially the
same, i.e., a two-story, air-conditioned mall, located between "M" and ,IQ,, and
2Oth and 23rd Streets, with three major stores (Penney's, Gottschalk's and May
Company) who will build to suit, with space available for a fourth store. Mr.
Donahue mentioned he is contemplating building office or commercial structures
between the mall and Chester Avenue to tie it into the City's main thoroughfare.
Mr. Milliken, Senior Vice President of Shopping Centers for Daon,
presented Chairman Casper with a cashierls check in the amount of $500,000, which
Mr. Donahue stated shows "...we mean business." Mr. Donahue stated an additional
$2.5 million would be forthcoming around September, if all goes according to
schedule, for acquisition of property. He stated Daon is prepared to invest
$45 million in the Developer's portion of the project, which would include the
parking facility for which the City had previously applied for federal grant
funds. Mr. Donahue said "Bakersfield Town Center" is scheduled for a fall 1983
opening.
Mr. Hollis reviewed Agency responsibilities, stating it would take
60 days to restructure the public portion of the financing for this project.
Following discussion, Dr. Puder moved that AGREEMENT NO. RA3-81,
"IMPLEMENTATION AGREEMENT," allowing the Developer 60 days to negotiate all neces-
sary changes to the Joint Development Agreement dated December 10, 1979 be executed
by the Chairman, that the $1OO,OOO Letter of Credit on the former Agreement be
relinquished, and that the City Council be advised of this action by directing
staff to submit a~l necessary data to the Council for their consideration and
concurrence. The motion was seconded by Ms. Foth, and adopted by the following
vote:
AYES: Casper,
NOES: None
ABSENT: None
Foth, Bilas,
Lewis, Mooneyham, Puder and Winer
ITEM Il: RECOMMENDATION FROM REDEVELOPMENT AGENCY'S DEVELOPMENT COMMITTEE ON
HOTEL DEVELOPMENT PROPOSALS, AND ACTION BY THE AGENCY TO GRANT AN
EXCLUSIVE PRELIMINARY 60-DAY AGREEMENT:
A report from the Agency's Development Committee dated June 2, 1981,
following their meeting (June 1) to review proposals submitted relating to the
development of a convention center/hoteT, recommended that a 60-day exclusive
preliminary negotiation period be granted to the Hedrick/McBride Development
Company of Los Alamitos, California. Developer would be Bakersfield Metropolitan
Hotel Association, a joint venture partnership consisting of Le Baron Hotels and
Hedrick/McBride Development Company.
Mr. Russell introduced Mr. McBride who reviewed his firm's activities
and their plans for the hotel project in Bakersfield. He stated their initial
plans were for a small hotel to be located on Highway 99; however, he was advised
during a discussion with Ms. Jeri Bruce of the City's Convention Bureau that a
major hotel was needed in downtown Bakersfield. He stated his firm favors
Site No. 2 located directly east of the Civic Auditorium, rather than the present
parking lot west of the Auditorium. Mr. McBride noted that plans presently call
for construction of a $15 million hotel (market value), with up to approximately
400 rooms, and for an opening date eleven months after signing of the ground
lease.
Following discussion, Mr. Winer moved that J. H. Hedrick/McBride
Development Company be granted a 60-day excluslve preliminary negotiation period
to negotiate for the purpose of developing lease terms, and developing an accep-
table conceptual program and drawings; and that the City Council be advised of
this action and recommend their approval; and that staff be directed to provide
tegal survey of the site establishing property lines, develop parking require-
ments, design and estimate costs for the parking facility for the Auditorium,
and conduct an initial study for the required Environmental Impact Report. The
motion was seconded by Mr. Mooneyham, and adopted by the following vote:
AYES: Casper,
NOES: None
ABSENT; None
Foth, Bilas, Lewis, Mooneyham, Puder and Winer
ADJOURNMENT:
There being no further business to come before the Agency, Chairman
Casper adjourned the meeting at 8 p.m...i . .~~]/~. ~
V'I N~ ~NT'~ASyE R, C~ T~n~
~ ~.~~~ ~ Bakersfie~ Redeve~fnent~/ Agency
Bernice E. Stewart, Secretary to the
Bakersfield Redevelopment Agency