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HomeMy WebLinkAboutAPR - JULY 1971 MINUTES RA-98- Bakersfield, California, April 20, 1971 Minutes of the Special Meeting of the Bakersfield Redevelop- ment Agency held in the Council Chambers of the City Hall at 5:15 P.M. April 10, 1971. The meeting was called to order by Chairman Robert King, and the secretary called the roll as follows: Present: Robert King~ Chairman Vincent Casper Gerald Clifford Bill Lee James Stewart Theron Taber Absent: Dr. Glenn Puder The chairman introduced Mr. James Stewart who was recently appointed as member of the Redevelopment Agency to fill vacancy created by the resignation of Mrs. Peggy Ghezzi. The chairman staled that this is a special meeting of the Bakersfield Redevelopment Agency to receive a letter from the Kern County Economic Opporfunity Corporation regarding redevelopment programs. He asked Mr. Bergen, City Manager, to give the background on this letter from KCEOC. Mr. Bergen explained that the letter was read at the City Council meefing of April 12, 1971, and at that time it was received, ordered placed on file and referred to the Redevelopment Agency. Considerable discussion took place at the Council meeting regarding this matter. Also, he has had calls from several property owners who wish fo be heard at this meeting. Agency, matter Mr. Gene Jacobs, stated that he had which is relevant. attorney retained by the Redevelopment obtained additional information on this The Kern County Economic Opportunity Corporation has filed an application with OEO seeking funds for an Innovative Program to make a study on the types of programs they might use in the City of Bakersfield for the poverty area. The major basis of the application is found in the possibilify of a redevelopment project on the east side of California Avenue, and is the relevant portion of that application. The Corporation received a -99- Bakersfield, California, April 20, 1971 - Page 2 notice from OEO that in filing their application they had to add to it specific commitments from the Bakersfield Planning Commission and the City Council indicating support and cooperation for the proposed endeavor. Mr. Jacobs stated that it is boundaries as now established may fail his judgment that this project's to meet eligibility requirements for HUD funds and that do not have sufficient KCEOC is asking for. the Redevelopment Agency and the City Council information on what is before HUD and what the He stated that he believes Mr. Taylor of the Corporation will join in this recommendation, that he meet with them and ascertain specifically what the proposal is so that they can come up with more detail and place before the Agency and the City Council more specifically what it is they desire, as he does not think there are sufficient details for the Redevelopment Agency to take any action on it at the present time. Mr. Taylor, Executive Director of KCEOC, stated that he and Mr. Sundaram are satisfied with Mr. Jacob's recommendation. They feel they are very fortunate to have Mr. Jacobs working with them and helping them formalize a document to present to this body which will be enlighting to the Agency and from which it could make a recommendation to the City Council. Mrs. Helen Graf asked for a ruling on a 1966 election in which Bakersfield residents voted to prohibit City participation in anti-poverty programs, stating that she feels endorsement by the Council of the proposal would be overruling the people'~ vote. Mrs. Selena A. Stevens, who resides at 1118 Chico Street, stated that she was present as a representative of the Sunset-May- flower Progressive Club, who were objecting to a contribution made by the Kern County Economic Opportunity Corporation to a newly organized non-profit corporation designated as the United Progress Corporation. She stated that thereare many organizations in the area in which KCEOC will not contribute and in her opinion there was no reason to organizae another group and fund it. 100 Bakersfield, California, April 20, 1971 - Page 3 Mr. King commented that he is not familiar with the matter discussed by Mrs. Stevens, and he suggested that she leave her name and address with the City Manager and a meeting can be arranged with Mr. Jacobs to bring out the points she has presented here. After a study is completed, a decision will probably be made to hold a public hearing and at that time she can submit pertinent information to the Agency. The chairman stated that is going to hold a meeting with Mr. as he understands it, Mr. Jacobs Taylor to study the various matters which have been submitted to him, and come back with a recommendation to the Agency as soon as possible. Mr. Jacobs suggested that the matter be continued until the May meeting of the Redevelopment Agency and if he can have something ready sooner than that, a special meeting can be called. It was then moved, seconded and carried that Mr. Jacobs' recommendation be accepted. Mr. Bergen recommended that this action be sent to the Council so that they will understand why no report was forthcoming at the next Council meeting. After some additional discussion from persons in the audience, the meeting was adjourned at six o'cock P.M. Assis~t-a~t Secretar~y to the Bakersfield Redevelopment Agency 101 Bakersfield, California, July 6, 1971 Minutes of a special meeting of the Bakersfield Redevel- opment Agency held in the Council Chambers of the City Hall at 11:00 A.M., July 6, 1971. Vice-Chairman Vincent Casper called the meeting to order in the absence of Mr. King, Chairman, and asked the Secretary to call the roll. Present: Vincent Casper, Vice-Chairman Gerald Clifford Bill Lee Dr. Glenn D. Puder James L. Stewart Theron Taber Absent: Robert E. King, Chairman Mr. Casper introduced Mr. Bob Mathias, Congressman from the 14th District and his assistant Mr. Bob Jennings, Mr. Raymond Carrasco, Director of the Los Angeles Area Office of HUD, Mr. David Holloway, Urban Renewal Representative for this area, and Mr. Martinez, Labor Relations office. Mr. Bergen, City Manager, filed the following letters: Communication to Mr. William W. Stover, Washington, D. C. Consultant, from Mr. Robert E. King, Chairman of the Bakersfield Redevelopment Agency, dated April 29, 1971. Reply from Mr. William W. Stover, Washington, D. C., to Mr. Robert E. King's Letter, Communication from Mr. Gordon J. Production Division HUD, to Mr. dated June 14, 1971. dated May 20, 1971. Hunt, Director, H. E. Bergen, Communication to Mr. H. E. Bergen, from Mr. Dallas A. Martini HUD Program Manager, enclosing a partial laundry list containing comments, suggestions and objections made by the technical branches as a result of a review of City's Survey and Planning Application, dated July l, 1971. Mr. Eugene B. Jacobs, the City's Special Counsel, pro- vided the Agency with a status report on the City's Survey and Planning application, stating that the original application filed with HUD was for a Neighborhood Development Program (NDP) which carried to its ultimate, would have involved something in the neighborhood of a twelve to fifteen million dollar grant from the Federal Government. Later on the application was modi- 102 Bakersfield, California, July 6, 1971 - Page 2 fled to a Survey and Planning (S & P) application deleting the properties on Chester Avenue which reduced the grant request to around a five million dollar figure, on which no action has been indicated by HUD. He asked Mr. Raymond Carrasco, Director of the Los Angeles Area Office of HUD, to comment on the possibility of funding the project. Mr. Carrasco stated that HUD does not want to "lead the Agency down the primrose path," because there are many factors as far as funding is concerned. First of all, it is necessary to meet the national goals, of which one of the primary factors to take into consideration is low income housing. HUD has been working very closely with Congressman Mathias to see where they can get the funding, as this is the problem at the present time. There is no Survey and Planning money available at this time and no money is being allocated for new projects. This situation could change, in fact quite a bit of money could be allocated to this area, and if that is done, they could then proceed with the evaluation of this proposal. The City's application has to compete with other proposals in HUD's area office, and this is where the housing factor comes into consideration as far as heading the priorities. He pointed out that Congressman Mathias has really worked hard for this community and that there is a lot of push behind the project, however, at the present time they do not have the money to allocate to the project. He thanked the Agency for inviting him to visit the community and attend this session to discuss the problem. Congressman Mathias stated that he and his staff have been working on this project for several years and to him it is one of the most important projects in his Congressional District, as anyone who visits downtown Bakersfield can see that the area does need help, does need federal funds to get started on its revital- ization. He stated he is very optimistic over Bakers£ield's chances to receive federal funds, pointing out that there is not a great deal of money involved in the City's application compared with 103 Bakersfield, California, July 6, 1971 Page 3 projects in other communities. Also, another saleable point is that the City will put up the front money, however, will not be seeking the funds until a developer is interested in and committed to the project. He thanked the Agency for inviting him to the meeting and stated it is his hope that the problems can be ironed out and the project funded by HUD in the very near future. Mr. Clifford asked Mr. be available if the application find a developer to do the job. Jacobs how long the money would is approved by HUD in order to Mr. Jacobs stated he has sugges- ted a six month's period, however, this point would be something to negotiate with the Federal Government, for a commitment of money for at least a period of a minimum of six months, because in that time they would know whether or not it was really possible to bring a developer into the picture. Mr. Bergen asked Mr. Carrasco if there is anything further the City can do to expedite the City's application, and Mr. Carrasco replied at this point it is just a matter of waiting, it would be futile to spend any more money as far as the City is concerned. He stated that HUD favors approving the application at the time of funding, and any changes in the application can be made at that time as the economic situation may change in the City or other factors may enter into it as time goes on. Mr. Jacobs stated that the Bank of America is prepared, after a two year period, to move forward on the site at the north- east corner of Truxtun and Chester Avenues, but is not desirous of developing the property themselves. They have called for pro- posals from a number of developers who might want to come in and construct a building on a long term land lease and are accepting proposals. The Agency and the Council have been contacted regarding their position on the matter of making available public parking to encourage the development of the Bank of America site. Mr. Jacobs stated he has prepared a joint resolution upon the request of the City Attorney and members of the Agency and read the proposed 104 Bakersfield, California, July 6, 1971 - Page 4 joint resolution of the City Council and the Redevelopment Agency regarding public parking being made available to encourage the development of the Bank of America site in downtown Bakersfield. After discussion, it was moved by Mr. Clifford that the This motion carried by the following roll Resolution be adopted. call vote: Ayes: Noes: Absent: Clifford, Lee, Casper, Taber, Stewart None King, Puder (who had left the meeting previously) Mr. Bergen filed the following additional correspondence: Budget Bureau From #116-R047 - Application of KCEOC dated May 14, 1971 to OEO for funds for Innovative Program for the development of housing and economic development project in Kern County for the benefit of low income people. Communication from Planning Director Sceales to Mr. Eugene Jacobs relative to the Kern County Economic Opportunity Corporation application for an Innovative Program. Communication from Lanier C. Greet, ~xecutive Director of the Kern County Council of Govern- ments, dated July 6, 1971, asking to be advised on action taken on KCEOC's application for an Innovative Program by the Redevelopment Agency. Mr. Casper asked Mr. Jacobs to read his report on the Kern County Economic Opportunity Corporation's application to the Office of Economic Opportunity for funding of an Innovative Program for the development of an Urban Renewal and Economic Development Program in Southeast Bakersfield. This program is proposed to be carried out with a delegate agency entitled United for Progress Inc., a private non-profit housing development corporation formed to work as an advisory group for the Redevelopment Agency to implement a redevelopment project proposed by KCEOC's application. In his report Mr. Jacobs made the following statements: It is my judgment that the proposed project as presently conceived would not complement and be coordinated with the City's current and planned efforts to eliminate poverty. The area chosen is in the best condition in the general area. The most deteriorated area is in the County, not in the City. From a housing 105 Bakersfield, California, July 6, 1971 - Page 5 standpoint the areas south of the proposed project area are more in need of attention. From an economic standpoint it appears that a neighborhood commercial center is needed in the area, but academic economic research and studies are not what is needed. An active program to convince a developer and tenants to commit to the area would be more effective. There is substantial empty land in the proposed project area which would prove useful in per- mitting immediate development if public and private tenants can be motivated to come into the area. Moreover, such vacant land could result in property tax increment if the land is developed. It should be noted that well maintained County public housing is adjacent to the proposed project area. In conclusion Mr. Jacobs stated "I recommend that the City not submit a letter of support for KCEOC to HUD, but that the City consider commencement of a redevelopment project or projects in southeast Bakersfield both with and without Federal assistance in close cooperation and consultation with represent- ative citizen's groups in the area." Mr. T. M. Sundaram, Planning Coordinator of KCEOC, addressed the Agency, stating that some three months back KCEOC had requested the City Planning Commission to support the basic concepts of the Southeast Bakersfield Urban Renewal Project and the matter was referred to Mr. Jacobs for his recommendation. Later, he had appeared before the members of the City Council and requested that they give an endorsement letter for the Innovative Program to be sent to Washington, as he has been told by the Director of the Program that some funds were available and they would be able to assist the redevelopment projects in Bakersfield if they received the support of the City Council and also of the Redevelopment Agency. He did not ask that the Urban Renewal Project be turned over to KCEOC, as only the Redevelopment Agency can make the application and can be made completely responsible for a redevelopment project in Bakersfield. '[06 Bakersfield, California, July 6, 1971 Page 6 He pointed out that there were many minority people present in the audience who were in support of a renewal project in southeast Bakersfield. He stated that the last day for submitting applications for funds was June 30th, and since the deadline was passed, and they have not submitted an application for an Innovative Program to the Washington office, they do not need a letter of support from the City Council and they would like to withdraw that request. He asked that the Agency approve the basic concepts of the need for improvement in the minority area, approve the need for a feasibil- ity study to support this program, and approve the basic concepts of the need for the improvement in the southeast Bakersfield area by an Urban Renewal Program. With this, they will be able to obtain more federal funds for the City, can reinforce the downtown project and meet the national goals of the Urban Renewal Program. Mr. Jacobs stated that he had visited the project area, and it is his judgment that there is a very definite possibility of the need for a project in the area; however, anyone who has visited the project area would know immediately the problem of substandard housing is not to be f~und in that portion of south- east Bakersfield~ it is found in another area. He stated that there would be great difficulty in finding blight and HUD eligi- bility in the boundaries suggested and proposed. In a letter from KCEOC it was stated that this organization wanted the City Council and the Redevelopment Agency to delegate the program to KCEOC, and he would assume that Mr. Sundaram is now withdrawing that recom- mendation. He stated he feels a redevelopment project would be useful in the area, but he does not think the suggested program as set forth in KCEOC's application would be in the best interests of the City or of the southeast Bakersfield area. Dr. Richard Lyness, member of the Board of United For Progress, commented that he is in general agreement with Mr. Jacob's report but he does take exception to his opposition to delegating ~.07 Bakersfield, California, July 6, 1971 - Page 7 the program to United For Progress, which is an incorporated~ non- profit group entirely separate from KCEOC. United For Progress was started in order to help people help themselves, and when Mr. Jacobs opposes this kind of delegation without exploring what the delegate agency is and what the opportunities are, then he dis- agrees with him. He thinks there is a great deal of difference between a group doing something for themselves and a group sitting in an advisory capacity to the Redevelopment Agency. He stated that he is not disagreeing with Mr. Jacob's report, but he would not have made such a negative recommendation. Mr. Jacobs stated that he does not believe he and Dr. Lyness are in any disagreement at all because he does agree com- pletely that any value of the project is found in the economic area. He does not think it is in a housing project, as he would be very surprised if the project would produce more than five or six housing units. After additional discussion, it was moved and seconded to accept and adopt Mr. Jacobs' report dated July 6, 1971. The Council, Planning Commission and Kern County Council of Governments are to be advised of the action taken by the Redevelopment Agency and furnished with copies of Mr. Jacobs' report. This motion carried unanimously. There being no further business to come before the adjourned at 12:20/~.M. Agency, the meeting was ~~~l~~ y eld' - ' Redevelopment A Assisfant Secretary to the Bakersfield Redevelopment Agency