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HomeMy WebLinkAboutMAY - NOV 1973 MINUTES RA126 Bakersfield, California, May 4, 1973 Minutes of a special meeting of the Bakersfield ment Agency held in the Council Chambers of the City Hall A.M., May 4, 1973. In the absence of the chairman, the meeting was called to order by Vice-Chairman Vincent Casper. The secretary called the roll as follows: Present: Redevelop- at 10:30 Vincent Casper, Vice-Chairman Ralph H. Poehner Dr. Glenn Puder James L. Stewart Theron Taber Absent: Robert E. King, Chairman Bill Lee Staff members present were Community Development Director Bergen, Planning Director Dewey Sceales, and Special Counsel Eugene Jacobs. Preliminary plans involving the proposed construction of a 255 space three-level parking garage directly south of 17th Street adjacent to the Bank of America complex currently under construction at Truxtun and Chester Avenues were discussed by Mr. Eugene Jacobs, City's redevelopment consultant and by Community Development Director - City Manager Bergen. Mr. Jacobs outlined in detail proposed participation agreements with (1) Mr. Julian W. Weston, owner of the land United California Bank occupies, and (2) United California Bank for the parking facility. The American Legion property at the corner of L and 17th Streets recently purchased by the City will not be utilized at the present time, but may be the site of another high rise tower in a later project. After all questions of the members of the Redevelopment Agency had been answered, the following action was taken: 1. Upon a motion by Mr. Taber, seconded by Mr. Stewart and carried, the Community Development Director was authorized to execute a participation agreement by and between the Bakersfield Redevelopment Agency and James Aloe Weston and/or Julian Weston, regarding property bounded by Truxtun, K. L. and 17th Streets in the Bakersfield Downtown Redevelopment Project, in substantially the form presented. 127 Bakersfield, California, May 4, 1973 - Page 2 The Agency discussed employment of Architects Associated, a partnership related to Arcon, Inc. the development firm, con- cerning architectural and engineering services for the Parking Structure. A letter submitted by Architects Associated, dated April 26, 1973, was read into the record by Vice-Chairman Casper, and upon a motion by Dr. Puder, seconded by Mr. Taber, the letter was received and ordered placed on file. Upon a motion by Dr. Puder, seconded by Mr. Taber and carried, the Community Development Director was authorized to sign the Architectural and Engineering Services Agreement for the public parking structure to be constructed in the area bounded by Truxtun, 17th, L and Chester, said agreement to be by and between the Bakersfield Redevelopment Agency and Arcon, Inc., and Architects Associated, in the form presented. A communication was received from John S. Gri££ith & Co., dated April 30, 1973, requesting an extension o£ the term of Agreement to Negotiate Exclusively, executed July 6, 1972 and extended to May 15, 1973, by prior correspondence. This letter requested extension to August 15, 1973, which should provide sufficient lead time with which to commence and consummate a Disposition and Development Agreement. After discussion, upon a motion by Mr. Steward, seconded by Mr. Taber and carried, the Community Development Director's action granting John S. Griffith and Co. an extension of Agree- ment to Negotiate Exclusively to May 15, 1973, was ratified and approved, and he was authorized £o extend such agreement to August 15, 1973. Mr. Jacobs stated it was his judgment that by August 15, 1973, or prior to that time, all of the documents to create a suggested and proposed redevelopment in the regional shopping area, as well as Disposition and Development Agreement worked out with the developer which would be subject to the adoption of the redevelopment plan, will be ready for presentation to the Agency. Bakersfield, California, May 4, 1973 - Page 3 It will be necessary for the Agency to hold a series of meetings in order to make decisions on the parking facility con- cerning the financing, issuance of bonds, working out the leases and subleases, etc., which will be coming back to the Agency as a result of the authorizations granted to the Community Develop- ment Director today. Mr. Bergen commented that he wanted the record to show that if the Regional Shopping Complex proceeds, it will be necessary to employ an Executive Director to assume responsibility for day-to-day operation. Adjournment There being no further business to come before the Agency, the meeting was adjourned at ll:15/A~. CA~ Bax~rs ieljd/~development Agency /~// ASSIS~A~T'SECRETARY' ~pment Agency 128 129 Bakersfield, California~ May 4, 1973 - Page BAKERSFIELD REDEVELOPMENT AGENCY ADDENDUM TO MINUTES lA 2. Upon a motion by Mr. Stewart, seconded by Mr. Poehner, the Community Development Director was authorized to execute a participation agreement by and between the Bakersfield Redevelopment Agency and the United California Bank regarding property bounded by Truxtun, K, L, and 17th Streets in the Bakersfield Downtown Redevelopment Project, in substantially the £orm p~esented. ASSISTANT SECRETARY' to Redevelopment Agency Bakersfield, California, November 16, 1973 Minutes of a special meeting of the Bakersfield Redevelop- ment Agency held in the Council Chambers of the City Hall at 10:00 o'clock A.M. on November 16, 1973. The meeting was called to order by Vice-Chairman Vincent Casper. The Secretary called the roll as follows: Present:Vincent Casper, Vice-Chairman Bill Lee Ralph H. Poehner James L. Stewart Theron Taber Absent: Robert E. King, Chairman Dr. Glenn D. Puder Vice-Chairman Casper stated that this meeting was called to consider the Downtown Bakersfield Redevelopment Project and asked City Manager Bergen, the Community Development Director, to review the project for the benefit of the Agency members. Mr. Bergen stated that the Agency will recall that it entered into a participation agreement with the Bank of America and Arcon on August 12, 1972, for construction of a parking garage. The long delay in coming to an agreement with United California Bank has been caused by several factors: (1) United California Bank has a lease from Mr. Weston which requires that the City also deal with the owner and (2) Various changes in personnel of United California Bank involved with the negotiations. The staff now has agreements with Mr. Weston and the United California Bank, and he asked Mr. Eugene Jacobs, the Agency's legal consultant, to explain the participation agreements. Mr. Jacobs stated a delay was caused due to Mr. Weston changing his mind regarding the agreement with the Agency, and after negotiating, a transaction which substantially results in the previous agreement but with the financing and legal techniques different. The agreement now provides that Mr. Weston will sell a parcel of land to the Agency for the parking structure at a cost of $130,000. A parcel belonging to the City will be sold to him for $15,000 and the United California Bank lease will be readjusted so that it will continue as before. In addition, Mr. Weston will 130 131 Bakersfield, California, November 16, 1973 - Page 2 be given the first refusal to buy and develop the American Legion property in accordance with Agency plans for $100,000. Additional discussion took place on details of the proposed participation agreements. Then Mr. Jacobs suggested thai Mr. Bergen explain the garage plans from the map mounted on the wall of the Council Chambers. Mr. Bergen stated that these are the preliminary plans only, they call for a fhree floor, split-level garage with approximately 260 spaces. It is proposed to operate the garage with an automatic gate, requiring one man to take tickets or money at the exit. Our agreemenf with Bank of America and Arcon provides for the rental of 150 spaces. The proposed agreement with United California Bank will provide it with 30 spaces with an option for ten more, and the remaining 70 spaces will be open for customers and other businesses located in the complex. It was originally planned to design and construct the garage to allow for one, two or even three story expansion. How- ever, the garage consultants have advised that to add one or two floors, would require complete redesign of ingress and egress and in addition it would be necessary to construct an elevator. There- fore, no provisions are being made to allow for possible expansion of the garage. Furthermore, if more parking is needed in the future, it is better for the City to construct a similar parking structure on the City parking lot one half block to the north. Also the design cost of this garage must be kept well within the present and immediate future parking needs, and not rely on distant projections. It must be economically feasible at this time. Mr. Bergen carefully reviewed the garage plans and answered questions from the Agency members. After further discussion, upon a motion by Mr. Lee, seconded by Mr. Taber, the Community Develop- ment Director was authorized to execute the participation agreement between the Bakersfield Redevelopment Agency and James Aloe Weston, in substantially the form presented. Bakersfield, California, November 16, 1973 - Page 3 132 Upon a motion by Mr. Taber, seconded by Mr. Poehner, the Community Development Director was authorized to execute the participation agreement between the Bakers£ield Redevelopment Agency and the United California Bank, in substantially the form presented. Upon a motion by Mr. Stewart, seconded by Mr. Poehner~ the preliminary plans for the Parking Garage to be constructed on the blocks bounded by Truxtun Avenue, Chester Avenue, 17th and "L" Streets, were approved. Mr. Jacobs stated the staff will come back to the Redevelopment Agency for approval of the specific working drawings ~or the garage in order to advertise for competitive bids which he estimated could be opened in January or mid-February. Mr. Jacobs stated that there would be a number of additional documents, such as operational lease agreements, etc. to be submitted to the Agency later for approval. In connection with the issuance of the bonds, Mr. Jacobs explained that the technique which would be used is that the Agency would be issuing the bonds based on a lease of the garage, which is called lease-back financing. The City would be guaranteeing rental payments to the Agency, which together with revenues from the garage itself would be used to pay off the bonds. He estimated the amount of the bonds would probably be in the million dollar category, depending on the exact bid. This bond issue should sell easily without question, because in effect it has the guarantee of the City behind it. In order to do this, it is necessary to employ the services of a financing consultant to advise and assist in the development of a financing plan and in the marketing of the bonds so as to obtain the lowest practicable interest cost. He recommended the firm of Blyth Eastman Dillon & Company, Incorporated, which is one that is used extensively by Redevelopment Agencies and is far and away the best firm for this purpose. Upon approval of the 133 Bakersfield, California, November 16, 1973 - Page 4 contract, of the bonds, an additional Mr. they would be paid a fee of $2,500 and upon the and only if the bonds are issued, they will $12,500, or a total fee of $15,000. Jacobs went on to say that the firm of O'Melveny & issuance be paid been granted, with the most recent An Agency meeting had been planned canceled, and Mr. Jones of John S. expiring on November 13, 1973. for November 13, 1973, which was Griffith & Company was prepared to make a report to the Agency, however, the meeting was delayed until today, and a three day extension was granted to November 16, 1973. The staff has had various meetings with Mr. Jones and his Myers is the best bond counsel in the State of California, for this type of project and he recommended employment of this firm to advise and instruct the Agency regarding the authorization, sale and delivery of the bonds. Also, to issue the legal opinion on the bonds to the Agency and to the purchaser of the bonds. Fee for this service will amount to $6,000, which is relatively inexpensive. After further discussion, upon a motion by Mr. Poehner, seconded by Mr. Stewart, the Community Development Director was authorized to execute Bond Finance Contract between the Bakersfield Redevelopment Agency and Blyth Eastman Dillon & Company, Incorporated, in substantially the £orm presented. Upon a motion by Mr. Taber, seconded by Mr. Poehner, the Community Development Director was authorized to execute the Bond Legal Counsel Agreement between the Bakersfield Redevelopment Agency and O'Melveny & Myers, in substantially the form presented. Mr. Jacobs recommended that the next meeting be held some time prior to December 15 in order to review the entire technical package of documents which will need Agency approval. Mr. Bergen stated that on July 6, 1972, the Redevelopment Agency entered into an Agreement to Negotiate Exclusively with John S. Griffith & Company for development of a regional shopping center and mall in the downtown area. Several extensions have Bakersfield, California, November 16, 1973 Page 5 134 consultants, Agency. Mr. Nelson addressed the Agency, and he is here today to give a status report to the Jones, employed by John S. Griffith & Company, and submitted a brief history of the activities of his company for the past 25 years. Most of the company's efforts have been devoted to developing regional shopping centers in Southern California, and they have worked with redevelopment agencies in many instances in the redevelopment of a downtown area, which would be duplicated here in Bakersfield. They have experience to draw on with shopping centers which are done within the structure of redevelopment financing. They have been working very diligently with their engineers and architects in trying to achieve a workable package that fits all entities and all parties in the proposed regional shopping center in Bakersfield. It is not always easy to achieve this in a downtown area where it is necessary to work with certain fixes such as established traffic flows, high grade improvements that should or must remain and can't be removed, etc. They are in the advanced stages of research with a couple of major stores, the input from them to date has been very encouraging. This input involves what the area can absorb in the way of additional retail stores, what is good for the area, what is a workable package, such things as parking configuration, the possible tie with one of the existing department stores, etc. It does take some time, but in the last two or three weeks the project has come together very nicely and he is sure that they are close to achieving a very workable plan. Mr. Jacobs stated that John S. Griffith & Company has requested an extension until March 15, 1974, which is well within the time for submitting a binding agreement back to the Agency similar to the other participation agreements signed earlier in the meeting, but more complicated because this is a complex problem. This company has arrived at enough certainty of the possibilities 135 Bakersfield, California, November 16, 1973 - Page 6 here that they are willing to enter into an agreement. He has recommended this company because they are the only company willing to work at this moment on a downtown area leaving the existing department store and working with the various fixes. This isn't an amateur company, his they are talking about. After further experience has been that they know what discussion, upon a motion by Mr. Poehner, seconded by Mr. Lee, the Community Development Director was authorized to extend the term from November 16, 1973 to March 15, 1974 in the Agreement to Negotiate Exclusively between the Bakers- field Redevelopment Agency and the John S. Griffith & Company. The action of the Community term from November 13, 1973 at this time. There being no further business to come Bakersfield Redevelopment Agency, the meeting was 11:05 A.M. Development Director in extending the to November 16, 1973 was also ratified before the adjourned at ~VICE C~I~AI~MAN ~ o f/f/tie~-Re d e v e 1 opme nt Agency ASSISTANT SECRETARY to Redevelopment Agency