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BAKERSFIELD REDEVELOPMENT AGENCY
Recessed Regular Meeting - duly 26, 1978
The Recessed Regular Meeting (recessed on July 25, 1978, to be recon-
vened at this time) of the Bakersfield Redevelopment Agency was called to order
by Chairman Casper, Wednesday, July 26, 1978, at 4 p.m. in the City Council
Chamber.
The secretary called the roll as follows:
PRESENT:
Vincent Casper, Chairman
Jeanne Foth
Frank S. Lewis
John S. Mooneyham
Ralph H. Poehner, Vice Chairman
Dr. Glenn D. Puder
ABSENT: Robert E. King
STAFF:
H. E. Bergen, Executive Director
Philip Kelmar, Treasurer
Richard Oberholzer, Assistant City Attorney
Eugene B. Jacobs, Agency's Special Counsel
OTHERS: Mr. Dan Donahue, President, John S. Grifflth & Company
FINANCIAL
a) 1978-79 Budget - Mr. Kelmar presented the 1978-79 Agency Budget,
explaining the effects of the recent Jarvis Amendment passage on the Agency's
tax increment revenue, and anwered questions from Agency members. Following dis-
cussion, on motion by Ms. Foth, seconded by Mr. Mooneyham, and carried, the Agency
adopted the 1978-79 budget as presented.
PROJECTS
a) Proposed Metro Plaza Hotel - Mr. Jacobs reviewed his memo to the Agency
dated July 26, 1978, covering progress so far in the Agency's attempt to bring a
first-class hotel to the City. He stated in discussions with some of the property
owners of the selected site (on Truxtun between "0" and "P" Streets, north to 18th),
they have expressed a desire that the project not go forward. He reported the
latest development was notification by Reverend Fred Cottriel, First Assembly of
God Church, that the Church had received an offer of purchase and/or lease for
their property; therefore they needed an immediate response from the Agency
regarding its intention to purchase. Mr. Jacobs explained that an immediate
purchase by the Agency was not possible in light of the need to restructure the
financing for this project caused by passage of Proposition 13.
Mr. Jacobs stated he discussed this problem with staff, then contacted
Mr. Robert Schwartz of Metro Plaza again "...to see if he would reconsider his
requirement that the hotel be north of Truxtun Avenue and move the hotel to a
site south of Truxtun on the parking area of the Convention Center with structured
parking for the hotel and the Convention Center." Mr. Jacobs stated Mr. Schwartz
agreed (by letter dated July 24, 1978) to such a move, as did Holiday Inns, Inc.
(letter dated July 26, 1978) and Omni International hotels, Inc. (telegram dated
July 25, 1978). Both of these hotel chains are interested in the convention
hotel, and Mr. Jacobs stated there was a possibility of a merger of the two to
operate a prestige line of hotels.
Following discussion, as recommended by Mr. Jacobs, on motion by Ms.
Foth, seconded by Mr. Poehner, and carried, the Agency approved recommendation
to the City Council that the hotel be developed on the parking area of the Conven-
tion Center, and that the two blocks bounded by Truxtun Avenue, "P" Street, 18th
Street, and "0" Street not be used for the hotel site; and that the Executive
Director of the Agency be directed to prepare a new agreement with Metro Plaza
for the development of the hotel on the parking area of the Convention Center with
Metro Plaza required to have financing by November 1, 1978; and that the Executive
Director of the Agency be directed to prepare Redevelopment Plan Amendments and
other actions necessary to accomplish placing the hotel on the parking area of
the Convention Center.
Dr. Fred Cottriel at this time asked if he could make a statement. He
was recognized by Chairman Casper.
Dr. Cottriel stated he was happy with the Agency's decision, however,
he reviewed the process used by the Agency in attempting to obtain the property
for this project, pointing out that this lengthy process caused some hardship to
the Church. He stated they were not able to proceed with their program while they
waited for the Developer.
b) Proposed Regional Shopping Center - Chairman Casper introduced Mr. Dan
Donahue who wished to give the Agency an up-date on this project. Mr. Donahue
read a letter from the J. C. Penney Company stating that they have made the
decision to pursue negotiations for a new full-line store to be part of the
proposed Redevelopment Project in downtown Bakersfield. The letter also assured
that the only project Penney~s is working on in Bakersfield is the Redevelopment
Project in the central business district. Mr. Donahue emphasized that this is
not a commitment from Penney's, but a statement of fact that they have judged
downtown Bakersfield to be a market that they want to enter into. He stated he
had just come from Fresno where Gottschalk's had taken the same position as
Penney's. He stated that assuming the economics, co-tenancy, design, land prices,
etc. can be worked out, an agreement can be reached. He stated he had not talked
with Brock's recently, but believes they are still interested, and he is also in
negotiations with three other large department stores.
Following discussion, on motion by Ms. Foth, seconded by Mr. Mooneyham,
and carried, the Agency agreed to an extension of the Exclusive Offer to Negotiate
Agreement with Mr. Donahue until November 1, 1978~
ADJOURNMENT
There being no further business to come before the Bakersfield Redevelop-
ment Agency, Chairman Casper adjourned the meeting at 4:56 p.m.
Bernice E. Stewart, Secretary
to the Redevelopment Agency
. ~I~ICENT CASPER,,~halrman ~ ~ --
~ Bake rs f i e 1 d Re'eve 1 opme?t~gen cy