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