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.
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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
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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