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HomeMy WebLinkAboutJUN - DEC 1970 MINUTES RA-85- Bakersfield, California, June 3, 1970 Minutes of a special meeting of the Bakersfield ment Agency held in the Council Chambers of the City Hall P.M., June 3, 1970. Chairman Roberf King called the secretary Present: Redevelop- at 7:30 project. Mr. Gray explained in detail version, the necessity of such conversion, and the tact fhat Federal Government is no longer funding new applications for Furthermore, the indications are that the Federal Government the purpose of such con- the NDP. would not fund a project at the present time that runs over $5,000,000. Also, the NDP application previously submitted could not success- tully have been carried out because the City, in the opinion of the financial consultants, could not have met their matching share towards the project. Mr. Gray has suggested a modified application converted to Survey and Planning which will run in the neighborhood of $5,000,000. Themodified version would increase the boundaries of the project area to the east fo extend the boundary from "M" Street to "N" Street. The reason for this is that the acquisition of property along Chester Avenue is so expensive as to make the prior plan unfeasible. By allowing the property to remain along Chester Avenue and moving to the east for off-street parking, the the meeting to order and asked to call the roll: Robert E. King, Chairman Vincent Casper Gerald Clifford Dr. Glenn Puder Theron Taber Absent: Bill Lee Mrs. Margaret Ghezzi The purpose of the meeting was to hear from Mr. John Gray and Mr. Jim Magnet relative to the conversion of the NDP application to a Survey and Planning Application for a downtown -86- Bakersfield, California, June 3, 1970 - Page 2 acquisition cost will be materially reduced. Mr. Gray also gave a dissertation on national goals and other matters which HUD officials will look at in respect to the conversion. Mr. Jim Magner explained the advantages and disadvantages relative to prior NDP application and the proposed Survey and Plan ning application. The advantages of the modified application would reduce the local share from $6,000,000 to approximately $2,500,000. Mr. Gray and Mr. Magnet stated that by submitting such an application they would be hopeful of receiving a Survey and Planning grant of approximately $90,000. Such a grant would be used for a precise study of the development including a market ability study which would be necessary in order to interest developers in the project. It was the opinion of Mr. Gray that the City could not meet their local share of the NDP project formerly applied for. It was his opinion that the City would be able to meet its local share on the newly proposed Survey and Planning application. Mr. Gray proposed to have the Survey and Planning Application available for considera- tion in approximately two weeks. Also the project name should be changed to delete reference to Empire Square Project. After questions and answers by members of the board, the meeting was adjourned at 8:45 P.M. until further notice. AIR~AN~F/~/~OPMENT AGENCY As~istar~t Secretary'to the' Redevelopment Agency. -87- Bakersfield, California, June 23, 1970 Minutes of a special joint meeting of the City Council, Redevelopment Agency and the Planning Commission held in the Council Chambers of the City Hall at 7:30 P.M., June 23, 1970. In the absence of Mayor Hart, Vice-Mayor Stiern called the meeting to order and asked the City Clerk to call the roll: COUNCIL Present: Councilmen Bleecker, Rees, Stiern, Whittemore Absent: Mayor Hart. Councilmen Heisey, Rucker, Vetter REDEVELOPMENT AGENCY Present: Vincent Casper - Vice-Chairman Gerald Clifford Mrs. Margaret Ghezzi Theron Taber Absent: Robert King Bill Lee Dr. Glenn Puder PLANNING COMMISSION H. Alston Thomas, Chairman C. Robert Frapwell Burr Baldwin Joe H. Davis Dr. James L. Fredrickson Albert C. Lum Dean A. Gay Absent: None Vice-Mayor Stiern asked Mr. Gene Jacobs, the City's consultant, to explain to the members of the various agencies present, the purpose of tonight's meeting. Mr. Jacobs stated that the meeting was being held for the purpose of converting the Neighborhood Development Program (NDP) application to a Survey and Planning (S & P) application. Originally the City was requesting a $13,000,000 grant which was the only way to get into the pipeline with the federal government. This application was denied, along with a hundred other applications throughout the country. Now, the City has been told that if it modifies its NDP application and converts it to an S & P application for a loan and grant contract before June 30, 1970, it will have the same priority in date as it would have had last September for the NDP application. HUD officials no longer wish to grant funds for Present: -88- Bakersfield, California, June 23, 1970 - Page 2 a large amount such as the $13,000,000 requested in application, but the modified application converted Planning will run in the neighborhood of $5,000,000. the City's NDP to Survey and Mr. Jacobs pointed out that the acquisition of property along Chester Avenue is very expensive and in moving the boundaries of the project area to the east to extend the boundary from "M" Street to "N" Street, the value of the land dropped dramatically. This permitted bringing the grant requested from the federal government down to the sum of $5,000,000. Copies of an S & P application which he has prepared pursuant to federal government requirements have been distributed to all agencies. It provides for a program using the strength on Chester Avenue, hoping it will either rehabilitate itself or certain aids might be available for the rehabilitation. There is no way of telling whether or not the federal government will be willing to go for this kind of project, but it is reasonable to think that the S & P application is in a position where the federal government will grant the funds. Mr. Jacobs explained that there is one other problem involved in the federal government approach, and that is the problem of national goals. By referring back to the original date, the statement has been made in the S & P application that the City feels it should be granted national goals. He pointed out a number of typographical errors in the application which will be corrected before it is forwarded to HUD officials. If the City desires to file the S & P application in place of the NDP application dated September 22, 1969, which was rejected by HUD, it will be necessary for the Redevelopment Agency and the City Council to adopt the resolutions contained in the application. It can then be filed on Friday, June 26, 1970, which will be in adequate time to meet the final filing date of June 30, 1970. Mr. Jacobs stated that it is necessary for the Redevelop- ment Agency to adopt the resolution as it is the body which will -89- Bakersfield, California, June 23, 1970 - Page 3 ultimately enter into a contract with the federal government. This resolution approves the undertaking of surveys and plans for an Urban Renewal Project and the filing of an application. The area proposed as an Urban Renewal Area, situated in the City of Bakersfield, County of Kern, and State of California, is described as follows: Bounded by Twenty-third Street on the north, Chester Avenue on the west, Truxtun Avenue on the south and "N" Street on the east Councilman Rees asked how this application would relate to the plans of Empire Square Associates. Mr. Jacobs replied that the ultimate goals in terms of bringing about a revitalization of downtown with a retail shopping center, would be fairly close. However, the procedures and processes of accomplishing these goals differ substantially. The project is substantially less in cost because of changing the boundaries and taking considerably less expensive land, it will arrive at about the same amount of square footage of land available, but it will not touch the basic portion of the Chester Avenue properties which are the most expensive. It would be a slightly smaller retail center as now contemplated, but that could increase or decrease depending on the market. It relies partially on the development of the Bank of America building, or at least some development on that corner; it proposes the idea of a parking garage in the neighborhood of 500 to 700 Stalls. These things are not necessarily in the actual application to be shown at this time, but they are assumptions to be made in order to proceed with an orderly development. There is nothing that would preclude Empire Square from coming back in and seeking to be the developer on this at an earlier date, there's nothing that requires that since the contract with Empire Square is zero except for the fact that the contract is developed on the basis that if the City gets the money and attempts to move forward on projects substantially similar to Empire Square's there would be some repayment. There is a possibility that there could be a settlement of that -90- Bakersfield, California, June 23, 1970 - Page 4 at an early date. He has open issue, but he is not tion the City should go. been looking into it, prepared to recommend Councilman Bleecker commented on discontinuing the Transit System and there is still an tonight what direc- that the City is planning proposing that a Metro- politan Transit District be formed in cooperation with the Board of Supervisors. If the City did not have a transportation system to serve certain areas, what effect would this have on the S & P application? Mr. Jacobs replied that they have not developed it on the basis of a high class and efficient transportation system, it is based primarily on the fact that the people to be transported are really not too far away from their destination. If in the future it is developed that no transportation system would be running into this area, it would hurt the application with HUD. Before they would let the City go forward, HUD would have to be satisfied that there would be an adequate system to come into town. Mr. Clifford, a member of the Redevelopment Agency, commented that it would seem to him that if the Agency moved to adopt the resolution, it would be obligating itself to nothing except asking the federal government for $89,980 to conduct a survey and to give an answer as to whether it will be practicable or not, and any questions, such as Mr. Bleecker's regarding the transportation system, would be answered at the time the survey is made. Mr. Jacobs stated that the $89,980 is an advance from the federal government, and is not repayable if they decide not to move forward and is repayable out of project funds, if they do move forward with the project. Mr. Vincent Casper, as vice-chairman of the Redevelopment Agency, took charge of the meeting. Mr. Clifford moved to adopt Resolution No. RA 1-70 of the Redevelopment Agency of the City of Bakersfield, California, approving undertaking of surveys and plans for an Urban Renewal Project and filing of an application, which carried by the following roll call vote: Ayes: Casper, Clifford, Ghezzi, Taber Noes: None Absent: King, Lee, Puder -91- Bakersfield, California, June 23, 1970 - Page 5 Vice-Mayor Stiern commented that possibly the next action would be for the Council to adopt a similar resolution. He asked Mr. Jacobs what the situation is as far as a potential future developer in relation to the type of application being made now. Mr. Jacobs stated the federal government by and large gives the Agency the money to go out and buy the eleven blocks in question, tear them down and put the land on the market. In a couple of years when the City is certain of owning 100% of the land, at that stage and enter into a contract. more to the idea of having they can go out and seek a developer The federal government is now leaning a committed developer before spending large amounts of money. A developer is not essential at this point, but part of the $89,000 should be spent toward finding an appropriate developer, making sure of the stores, and that sort of thing. After some further questions by the Council and answers by Mr. Jacobs, Councilman Bleecker moved to adopt Resolution No. 41-70 of the City Council of the City of Bakersfield, California, approving undertaking of surveys and plans for an Urban Renewal Project and filing of an application. This motion carried by the following roll call vote: Ayes: Councilmen Bleecker, Rees, Stiern, Whittemore Noes: None Absent: Councilmen Heisey, Rucker~ Vetter Mr. Dean Gay, a member of the Planning Commission, asked for permission to speak and inquired about the cost of the 35-acre portion of downtown Bakersfield to be developed. Mr. Jacobs stated this would amount to about $1.25 per square foot resale price, however, they hoped to get more. Mr. John Gray answered all questions posed by Mr. Gay relative to the developing of this area after the grant of $5,000,000 has been received from the federal government. Mr. Gay commented that one of the problems that has confronted him in the last year and a half has been that downtown properties have had a shadow over them of the proposed Bakersfield, California, June 23, 1970 - Page 6 revitalization program, which has not been able to get off the ground. They have had opportunities to lease properties down- town but were unable to find tenants because of the uncertainty regarding what was going to happen. If this project is going to go, the property owners should be told how long their property can be encumbered. Mr. Jacobs stated that how soon it will go at this stage depends on how soon the federal government acts on the application. The day the federal government acts on the appli- cation, a fairly definitive schedule can be set up relative to exactly what they will be dealing with, which properties will be bought and on which dates, and what action will be taken on the balance. Adjournment. There being no further business, upon a motion by Councilman Bleecker, the meeting was adjourned at 9:15 P. M. -92- ~ f id VICE-MAYOR~f the C.~ity__~of ~a~.kers ie VI'CE~CH~J~AN~of ~he R~el~pmen~Agcn~y CHAIR~ ning Commission ATTEST: CITY O~RK and Ex~Offi6io Clerk of the Council of the City of Bakersfield Assistant Secretary to Redevelopment Agency -93- Bakersfield. California, November 19 1970 Minutes of a special meeting of the Bakersfield Redevelop- ment Agency held in the Council Chambers of the City Hall at four o'clock P.M., NOvember 19, 1970. Chairman Robert King called the meeting fo order and asked the Secretary to call the roll Presenl: Robert E. King Vincent Casper Gerald Clifford Mrs. Margaret Ghezzi Mr. Bill Lee Theron Taber Absent: Dr. Glenn Puder Mr. King acknowledged receipt of a letter from Huntley A. Webb, Oildale, California, which he referred to the executive officer for handling. Mr. Bergen stated that due to other commitments, Mr. Gray and Mr. Jacobs were unable to attend this meeting. However, a meet- ing of the Redevelopment Agency is planned for December 1, 1970~ at which time both of these gentlemen will be present to bring the Agency up to date on the status of its S & P application to HUD. The chairman stated that the meeting was called for the purpose of discussing the status of the Bank of America Project and he asked Mr. Clifford to make a report. Mr. Clifford referred to letters written by Mr. Fred L. Morris, president of the Greater Bakersfield Chamber of Commerce~ and himself, as President of the Bakersfield Board of Realtors, to Mr. A.W. Clausen~ President of the Bank of America in San Francisco~ both of which requested some assurance that the Bank's decision to commence operations on a high-rise office building will be carried out as originally announced. Replies were received to both letters from Mr. A. R. Zipf, Executive Vice-President of the Bank of America. Mr. Zipf stated thai the withdrawal of a co-venturer and a change in economic con- ditions have greatly influenced the delay which has occurred. -94- Bakersfield, California, November 19, 1970 - Page 2 While they have had a number of offers to proceed with a smaller development than they had envisioned, all of the proposals have been predicated upon a considerable subsidy by the bank which makes the project uneconomic at this time. In all of the studies reviewed, the difference between an economic and an uneconomic project is the required parking structure. The Bank agrees that parking is imperative, but the project cannot stand the added burden of a there is a solution to this it. parking structure. He stated that if problem, they will be pleased to discuss Mr. Clifford commented that he feels sure the Bank of America would proceed with the construction of the ten story build- ing if it were possible for the Redevelopment Agency to solve the parking problem. After discussion, Mr. Bergen was requested to ask Mr. Jacobs to prepare a letter for the Redevelopment Agency stating in general terms that the Agency and the City are interested in working out a solution of the parking problem. Also include in the letter an invitation to a representative from the Bank to attend the December 1st meeting to discuss this matter in detail. There the meeting was being no further business to become before this body, adjourned at 4:30 P.M. ~ CHAI'I~AN bf~c~_~development Agency / Assistant SecYetary to the Redevelopment Agency -95- Bakersfield, California, December 9, 1970 Minutes of a special meefing of the Bakersfield Redevelop- ment Agency held in the Council Chambers of the City Hall at 7:30 P.M. December 9, 1970, for the purpose of discussing the redevelopment of downtown Bakersfield. The meeting was called to order by Chairman Robert King, who asked the Secretary to call the roll. Present: Robert E. King, Chairman Vincent Casper, Vice-Chairman Gerald Clifford Mrs. Margaret L. Ghezzi Bill Lee Absent: Dr. Glenn Puder Theron Taber Mr. King reminded the members of the Redevelopment Agency that at the last special meeting a communication was ordered sent to the Bank of America stating that possibly there was some area to be explored to facilitate the construction of the proposed Bank of America Building on Truxtun and Chester Avenues. A reply was received from Mr. A. R. Zipf, Executive Vice-President, stating that they have not been able to interest a developer in making a binding commitment to build a high rise office building and pay for a substantial number of parking spaces~ without passing this cost on to the Bank. The Bank is anxious to proceed as rapidly as possible on an economic, justifiable course of action. Recognizing its very handsome invest- ment in land, the Agency will appreciate that the Bank would very much like to have a return on this investment. Mr. Zipf went on to say that they will be delighted to accept the offer to meet with the Agency to discuss possible solutions to the problem. He has asked Mr. Raleigh DeBow, President of Continental Service Company, the Bank's wholly-owned subsidiary responsible for its building program, to meet with the Agency personally. He will be joined by as many of the Bank's colleagues as is necessary to contribute to the solution. This letter was not received until December 7, 1970, Mr. Bergen called Mr. DeBow relative to aftending tonight's meeting, he was unable to be present due to a previous commitment. -96- Bakersfield, California, December 9, 1970 - Page 2 Mr. Leslie Knutson, vice-president of the local Bank of America, was present in the audience as an observer, and Mr. King asked him to report to Mr. Zipf that the Bakersfield Redevelopmenf Agency is anxious and willing to meet with representatives of the Bank of Amercia or their service organization at any time to negotiate a plan to provide publicly owned parking within one block of the proposed Bank building. Mr. King asked the and place it on file. Mr. Eugene Jacobs, secretary to receive the correspondence the Agency's attorney from Los Angeles, discussed the status of the agency's to revitalize downtown Bakersfield. of HUD has been totally reorganized~ application for federal funds He stated that every department and now has an office in the Los Angeles area which includes Bakersfield. There are new rules to follow and it has been a very difficult period of time for every- body in the field. President Nixon vetoed the HUD funding bill, which resulted in a shortage of funds, and no funds being made available for many of the commitments already made. He stated that there is no chance of either a positive or negative answer on the application until some time after the first of the year, or at least until Congress does vote additional funds. Mr. Jacobs does not believe it is feasible for a retail shopping center to develop downtown by itself, as a retail shopping' center does not generate the cash flow, which would push the project through. A redevelopment project needs high-rise buildings and could develop without a retail shopping center. He stated that they are making contacts with major developers while working on other redevelopment projects, and it might be that two or more major outlets will decide to come into Bakersfield. A major factor in redevelopment of downtown Bakersfield is the location of a freeway on the northern limits of the downtown busi- ness district. If this freeway is constructed, it would change the -97- Bakersfield, California, December 9, 1970 - Page whole nature of the project because downtown and would have a great economical center. In response to aquestion from Mr. it would provide easy access to impact on the shopping Lee, Mr. Jacobs stated that he feels the City will receive a federal grant ultimately, the problem is just when it will be; however, he is very optimistic that it will be in the forseeable future. After additional questions and answers, the meeting was adjourned at 8:45 P.M. CHAIRMAN of the Redevelopment Agency Assisth~t-Secretary to the Redevelopment Agency