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HomeMy WebLinkAbout07/26/78 MINUTES RA MINUTES 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