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HomeMy WebLinkAbout12/17/99 BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM December 17, 1999 TO: HONORABLE MAYOR AND CITY COUAIClL~ FROM: ALAN TANDY, CITY MANAGER SUBJECT: GENERAL INFORMATION 1. ,Under separate cover, included with your agenda for the Budget and Finance Committee meeting, are documents related to the City's Comprehensive Annual :Financial Report (CAFR) and financial statements prepared for Ogden Entertainment, Inc. related to the Bakersfield Centennial Garden and Convention Center operations. The City has consistently received two prestigious awards for it's CAFR over the last 20 years. These awards are contingent upon the CAFR receiving an "unqualified opinion" from the City's independent auditors. In order to receive an "unqualified opinion" the CAFR must be in compliance with Generally Accepted Accounting Principles (GAAP). The awards are issued by the Municipal Finance Officers' Association of the United States and Canada, an international organization and the California Society of Municipal Finance Officers, a state organization. The City will be submitting its CAFR for the fiscal year ended June 30, 1999 to these award programs and anticipates receiving the appropriate certificates. The Ogden financial statements have also received an "unqualified opinion" in accordance with GAAP. 2. We have recently received verbal confirmation from the developer that a proposed theatre and restaurant complex on Rosedale Highway near the Hungry Hunter will be annexing prior to development. 3. The Community Services Committee meeting was postponed this week. Please see enclosed a memo authored to the Committee on the status of the ice skating facility. 4. The skate park at Beach Park is actively under construction. 5. We think the traffic signal plan for the downtown signal at 20th and M has resolved that longstanding issue. It is hoped it can be operational by early January. 6. Staff attended the Citizen's Advisory Board on Annexations on Wednesday, December 15th. A report is enclosed. Honorable Mayor and City Council December 17, 1999 Page 2 7. EDCD has generated the attached report updating the list of companies who have received a proposal from staff outlining incentives and other forms of assistance. We have more current prospects than usual - a good potential time. 8. EDCD's Activity Report on the status of Housing and Community Development Activities for the past quarter is enclosed. 9. Attached is a report on the latest Southeast Bakersfield Project Area Committee meeting, which was held on Thursday, December 16th. 10. There is a memo enclosed with information regarding a request from Affordable Home, Inc. for HOME Investment Partnership Program funds. It will be placed on a future Council agenda for your consideration. 11. The December Activity Report from Development Services is enclosed for your information. 12. A memo is attached from Public Works regarding plans to work with CalTrans and Kern County to repair the railroad crossing on East California Avenue near Washington Avenue. cc: Department Heads Pamela McCarthy, City Clerk Trudy Slater, Administrative Analyst BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM December 13, 1999 TO: COMMUNITY SERVICES COMMITT/~/ /" FROM: ALAN TANDY, CITY MANAGER SUBJECT: ICE RINK Recently the City Council sent to the Community Services Committee a referral in response to citizen requests for an ice skating facility. A copy of the first report to the Committee, dated October 18, 1999, is enclosed. The purpose of this memo is to supplement that information. A total of four firms have now responded, in some form, to our calls. Three have visited Bakersfield. The fourth had visited several years ago when affiliated with another firm. At this point, the interest level would probably be characterized more accurately as "browsing", rather than final interest after serious study. None of these firms would locate here as a standard private sector investment. It simply does not "pencil out" in that way. At an absolute minimum, land would have to be provided, as well as other incentives to lower the construction cost. The measure of benefit to the City would have to include factors such as job creation, economic revitalization of a project area, and quality of life issues, in addition to the recreational aspect. Major issues could be characterized, as follows: 1) Where would the money come from to build it? There appear to be three theoretical models, as follows: a) Private sector loaned or generated. This appears unlikely, based on preliminary contacts. Some capital contribution may be obtained but not the majority of the funds. b) Certificates of Participation (similar to bonds, they are called "COPS") that involves issuance by a non-profit corporation, in concert with the Redevelopment Agency or City. There appear to be models done for other recreational facilities, some of which do not fall back to the City for debt repayment. The debt is secured by the land and building, and the revenues the building produces. It would require subsidy to make this work - land and/or job creation incentives, for example, which would reduce the debt to Community Services Committee December 13, 1999 Page 2 an appropriate level to make the COPS saleable. This is preliminary; more information is needed to determine if the COPS can be sold, based on the specifics of our market. c) City debt - with repayment obligation. This is the easiest but, of course, carries the need to repay if, in fact, revenues are not adequate to cover debt service. In an ideal world, the management contract would repay the principal and interest. This version would also require a subsidy to reduce capital costs. It would carry a considerably lower interest rate than A or B above, perhaps as much as 1 to 1-1/2%. Summary of Issue Private capital is the most desirable and least likely. The not for profit COP issue without recourse to the City is the second most attractive i_f the economics work, but that may be a problem. Debt issuance with the obligation to repay would carry the lowest interest cost but also the highest risk. 2) Where would the building be located? In theory, it could be located on any appropriate commercial zone, with the following limitations: a) It must make business sense to the operator. A location which made patrons feel uncomfortable dropping off children, for example, would not work, nor would a location that was hard to see or access. b) It should be central enough to serve the entire City population. c) We know that "making it happen" will require incentives. We have far more tools in redevelopment project areas and areas of block grant eligibility than we do elsewhere. d) A potential site between M and N, at California, has been identified. Other locations that fit the above can be considered, as well. We are currently looking into some properties to see if they have potential. If the City Center project happens, that opens up new opportunities, such as land trades, to facilitate this site. The City Center would also make it a stronger project, as the visibility of the facility is enhanced by people passing it to go to the theatres, restaurants, etc. Ideas about alternate sites should be generated as quickly as possible, so that cost and acceptability to the interested firms can be studied. Community Services Committee December 13, 1999 Page 3 3) Single sheet of ice or add space for other ice / non-ice events? The difference is really between about a 30,000 square foot building used only for skating, or a 60,000 square foot building with one ice rink and a second area used for multiple purposes. Obviously, the smaller building is cheaper to build, estimated at $3.4 million (without land) and cheaper to operate. The larger building would be estimated in the $5.2 million range, and it requires more land, so that cost increases, as well.. The extra space could serve multiple needs. It could be used for roller hockey, indoor soccer, volleyball (we recently had a request from the volleyball club to rent the Civic), dance lessons, self defense lessons, after school drop in athletic program, etc. Just as the Condors need ice for practice, if we get arena football and/or indoor soccer, those teams will need a practice facility and a place to do youth lessons, etc. In short, it becomes something of a community center, based on modest charges for use. We do have demands for such space regularly, and the Recreation and Parks Department could certainly help schedule, book, and program it, if the facility is owned by a non profit or the City. A memo from them, showing both practical and survey information on areas of unmet community demands is enclosed. The economics would not improve if space is added, however. Even with charges for use, more subsidy would be needed for the larger multi purpose version, than the ice alone version. Its use would be much more diverse and broad based, however. Going with the larger version would help address Council goals to facilitate the development of cultural and recreational facilities and to promote programs for youth. It also, of course, makes it more costly and difficult to achieve. An alternate would be to start with the smaller structure and design it to be expandable at a future date. Guidance from the Committee on this issue would be valuable. 4) Even with all of the reasonable incentives the City can offer, private sector support and donations may be critical to getting this done. It will not be an easy task for either sized version. The Condor hockey team has agreed to some cooperative actions..Please see the letter attached. Those items are primarily marketing in nature, rather than capital support. What next? The various firms have individualized approaches to studying the issue further. Some wanted names of people in town with interest in hockey, figure skating, etc. Others are reviewing demographic data. It is likely that we will end up with varying leve~s of interest at the end of that process, with one or more firms pulling out, even before specifics are discussed. There may also be differing philosophies on the smaller or larger model as different firms take different approaches. Please do not assume that this opportunity will Community Services Committee December 13, 1999 Page 4 be competitively sought after. More likely is the scenario that we will be fortunate to have an interested, qualified firm at the end of the process. In terms of steps, the following would be indicated: 1) Further financial/legal research is needed to determine which method can be used to generate the money to build. 2) We need to either focus on the larger or the smaller version in order to make discussions productive. 3) We need to keep exchanging concepts / proposals with the interested parties to more precisely define what level of incentives is necessary for the best deal, if a deal can be made. 4) If there are business or private sector donations or contributions out there, now is the time to come forward! 5) Staff will run some financial models and plans to help determine if the project is affordable. AT:rs Attachment cc: Honorable Mayor and City Council Interested Parties (see attached list) ;L,,~'; ;~-~07--1999 11: ~ 1 AM FROM NATIONAL SPORTS SVCS 422 89& 3704~ P. 2 BRKERIFIELD CDNDORI PROFEIIIDNR[ HOCK ~e.[ield Centmniol ~r~ December 7, 1999 Mr. Alan Tandy City Manager City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Alan, The Bakersfield Condors certainly endorse the addition of a recreational ice rink to the Bakersfield community. The Condors would be willing to offer the following assistance to a developer, ownership interest or facility management company -. 1. Purchase of ice time for practice when Centennial Garden is not available. Based on previous usage, the Condors would rent approximately 80 - 90 hours of ice time in ~he new facility. . . 2. Transference to the new facility of the rights to operate the Junior Condors Hockey League program. Presently, the JCHL has 88 members generating approximately $38,000.00 in gross revenues from participants. 3. Donation of 300 pairs 'i~f rental skates purchased new in October 1999. Total value at time of purchase 'exceeded $I 5,000. 4. Transference to the new facility e summer hockey school generating a minimum of 20 rental hours at Ce ice rink. 5. Discount admission to selected Condors games with coupon distributed at ice rink. 6. Distribution of coupons and promotional materials to drive traffic into the ice rink at every Condor game. 7. Complimentary. advertisement in the Condors yearbook. 8. Access to Condors databases (season ticket holders, youth fan club, etc.) for direc~ mail and telephone solicitation. ....... 9. Player appearances and mascot, appearances at the ice rink. 10. Additional cross marketing between the Condors and the venue as determined. P.O. Box 1806 "" Bak~rlfield, CA 9]]0]-1806 (805) 324-PUCK (78Z5). ~ox: (805) ]24-6929 ....... w~.bokersfieldcondormm ¢..~.~? 1~-07-1999 11:12AM FROM NATIONAL SPORTS SVCS 423 894 3704 P. 3 The Condors look forward to working with the City of Bakersfield and any interested parties in an effort to make a recreational ice rink a reality. In addition to the above, the Condors would certainly make a financial contribution to the project in exchange for reduction in per game rental fee at Centennial Garden. ,Sin ce~,,ly, . ~ Davidson . President cc: Jonathan Fleisig Matt Riley DEPARTMENT OF RECREATION AND PARKS DATE: December 9, 1999 TO: Alan Tandy, City Manager FROM: Stan Ford, Director of Recreation and Parks SUBJECT: Potential Demand/Use of Indoor Space I have reviewed the survey information that the department has collected in the past year, as well as other input we have received regarding demand for recreation facilities and programs. The department recently received a draft of our master plan. Although the highest demand identified in the plan is for aquatic facilities, there is a substantial need for indoor, multi-purpose space (i.e. community center). A major factor in determining this need is the fact that the city is substandard in it's provision of this type of space. This is based on established national standards for facilities. In analyzing the potential use of additional indoor space, should it become available, our data indicates high existing interest in indoor basketball (55.4% of the citizens) as well as a strong demand for additional indoor facilities such as gymnasiums (61.4%). Demand for new programs include: · Aerobics 53.&% · Arts and Crafts 64.3% · Basketball 59.0% · Cooking 56.2% · Dance 53.0% · Drawing and Painting 58.8% · Volleyball 54.8% There a much higher demand for city-wide events. Activities such as: · Arts and Crafts Fairs 82.3% · Car Shows 62.1% · Cooking Competitions 65.8% · Dances 67.8% · Exhibit/Product Fairs 69.0% · Holiday Events 80.3% · Pet Shows 70.8% Any of these activities would be well-suited for a large, multi-purpose facility. Availability of a facility to meet this need is limited in Bakersfield. There is a need, and the potential, for the department to offer any of these programs, if the facility was available. Some of these program demands could also be met through private-sector provision. All of the activities, especially the city-wide events, have good revenue potential. City-wide events would likely generate more revenue and require minimal modification to a large, common space. Whereas, accommodating activities such as basketball and aerobics would generate a smaller, more consistent revenue, but would require some space dedicated to each activity, as well as some' equipment, setup, and storage. BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM October 18, 1999 TO: Community Services Commi~ee/y,- FROM: Alan Tandy, City Manager../~ H SUBJECT: Public Ice Rink .Efforts to Date Contacts have been made with multiple firms in the business. Two have expressed enough interest to visit Bakersfield, explore potential sites, and discuss the possibility. Key Issues · If there were a clear profit to be made in our market size as a purely private business venture, Bakersfield would already have a facility. Most often, in our size market, rinks are thought of like parks, as a publically owned recreation / quality of life amenity. Lease back arrangements to private sector operators are common, which may (if prices are right), cover debt service, as well as operation and maintenance costs. · A ball park estimate of costs runs + $3.4 million for a single sheet to + $5.2 for a double sheet. Both figures are without land but do include equipment. · We can get interest and a quality operator, but it will require incentives and possible generation of the capital. · Private sector support / contributions / donations through the Bakersfield Foundation (501C3) would be enormously helpful. Next steps Staff will continue to work with potentially interested firms. The primary issue is developing a plan that is economically feasible with acceptable and affordable terms for all parties. AT:rs ,. i: Alan T~nd~/: statics RePO'rt From: Darnell Haynes To: Alan Christensen; Alan Tandy; John W. Stinson St... Date: Wednesday, December 15, 1999 10:21:03 AM Subject: Status Report I attended the Citizen's Advisory Board Meeting on Annexations this morning. The following items were discussed: The Committee is sending a letter to the Board of Supervisors requesting a Supervisor to make a formal presentation to the City Council on the proposed legislative changes to the Cortese-Knox Act drafted by the Committee. (The propOsed changes were presented by Barbara Patrick to the Local Commission on Governance in Sacramento at its October 27, 1999 meeting). Members of the Committee and or citizens, i.e. Fowler, Baugher, etc., will approach or work with a Council member(s) to-get the proposed legislative changes on the agenda for a future Council meeting. The Committee also would like to see the voluntary annexation improvements implemented and City annexation policies codified into City Ordinances. The proposed City voluntary improvements are as follows: 1. Provide individual notification to each property owner of an intention to initiate an annexation. 2. Publish all notices in the newspaper at least three times. 3. Publish display advertisements in the newspaper regarding protest hearings. 4. Published notices should give 30 to 45 days advances notice of hearings/meetings. 5. Adopt a policy not to bundle neighborhoods. 6. Convert annexation policies to City Ordinances. 7. Provide information on how to effectively protest anannexation proposal. Proposed County Voluntary Actions: 1. Notify all land owners within the area proposed annexation upon learning of the proposal. 2. Notify the Citizen's Advisory Committee on Annexations of a proposed annexation. (The Committee would then issue a press release and hold a press conference to bring the proposal to the attention of the public). 3. Translate the Citizen's Guide to Annexations by Cities into Spanish. 4. County staff knowledgeable in the annexation process should attend City Council meetings to monitor the information being disseminated at the meetings. 5. Make use of Public Service Announcements through, the local television and radio stations to inform the public of pending and proposed annexations. Finally, the current by-laws of the Citizen's Advisory Committee calls for the Board of Supervisors to evaluate whether the Committee should continue beyond June 30, 2000. The Committee will begin discussions on defining the future role of the Committee beyond June 30, 2000 at next month's meeting. CITY OF BAKERSFIELD ECONOMIC DEVELOPMENT ACTIVITY REPORT NOVEMBER 1999 Contacts for the . · Month Type of Contact· FY 92/93- FY 93/94 FY 94/95 FY 95/96 FY 96/97 FY 97/98 FY 98/99 FY 99/00 9 Expansion/Relocation 85 95 102 87 93 110 113 34 3 Enterprise Zone 72 57 79 68 73 82 96 35 ' '15 Specific Information 69 85 89 96 165 174 155 73 · 4 Startup Business 42 17 17 19 35 32 22 19 2 Financial/SBA Loan 27 19 16 22 58 42 35 14 7 Redevelopment Areas N/A N/A N/A N/A N/A . N/A N/A 21 ACTIVITY SUMMARY (Includes substantial new prospects in italics made during the month.) Date :. .,~Type of Business .' ' ':':: JobS (sq. ftC):.=-.' Acres Comments or Prospect Status ':"' GENERAL SUMMARY 11/12/99 Commercial - Call Center 400 40, 000 N/A Site consultant provided demographics and potential sites for large call center. 11/10/99 Commercial - Call Center 150 15, 000 ' N/A Mayor and staff met with owner of Las Vegas call center (KEDC Client #11/124/99) wanting to relocate to more available workforce. KEDC provided tour of potential sites. 11/8/99 Retail - Restaurant N/A IV/A N/A Staff met with consultant of national restaurant chain considering store site in northwest Bakersfield. 10/9/99 Commercial - Pdvate School N/A N/A 10 Private school development company provided demographics and potential sites for consideration. 10/8/99 Commercial - Telecom Office 20 5,000 · N/A Telecommunication company considering sites, outlined potential city incentives for locating. 9/20/99 Industrial - Concrete Products 15 25,000 5 Utah company considering relocation to serve west coast markets, staff provided potential sites. 9/13/99 Commercial - Shopping N/A N/A N/A Staff met with management of older existing shopping center to discuss options of rehabilitation. 8/27/99 Retail - Merchandise N/A N/A N/A Provided sites to consultant for retail chain considering new sites for metropolitan cities in California. 8/31/99 Industrial - Manufacturing 33 N/A N/A Meeting with existing business on options for wastewater disposal needs which are impacting future. 6/17/99 Commercial - Call Center 30 4,000 N/A Meeting with client considering city for small dental referral call center, discussed labor and incentives. 5/13/99 Commercial - Call Center 2;000 100,000 N/A Director met consultants to large call center operations (KEDC Client #05/058/99). Company requested numerous incentives. City did not make short list of company site locations. 5112/99 Industrial - Manufacturing 20 5,000 N/A Company opening firearms manufacturing facility, staff assisted in resolving City permit issues. 5/5/99 Commercial - Call Center 200 25,000 N/A KEDC Client #10/110/99 had meetings with Mayor, City Manger & Director to discuss potential benefits of locating catl center. City provided incentive proposal to company, competing with Redding. i-Flint contact Bldg. Size Date Type of Business Jobs (sq. ff.) Acres Comments or Prospect Status ~ GENERAL SUMMARY 5/3/99 Industrial - Industrial Rubber 15 15,000 1 Oilfield rubber products company to hire 15 people initially, 60 within a couple of years. 4/9/99 Commercial - Call center 300 40,000 N/A Consultant for call center collection agency provided city proposal for locating facility. ' 12/8/98 Commercial - Call Center 500 30,000 N/A Consultant and call center client provided site tour of potential facilities. 10/14/98 Commercial - Lowe's 60 135,000 10 Company provided demographics/building informatiOn. Store now open at Coffee & Rosedale Hwy 8/13/98 Commercial - Stier's RV 30 30,000 8 Constructing facility in Auto Mall, $60,000 in financial assistance being provided for job creation. 7/22/98 Commercial - Pleasant 200 30,000 4 New call center office on District Bird had grand opening on 9/9. City provided $250,000 in financial Holidays assistance for cell center equipment for building. ENTERPRISE ZONE SUMMARY 9/9/99 Industrial - Agricultural 80 200,000 150 Meeting with consultant considering sites for processing facility, discussed Enterprise Zone benefits. 8/23/99 Industrial - Warehouse 15 250,000 50 Consultant for company provided city proposal on benefits and incentives of locating facility in Zone. 8/19/99 Industrial - Dry Distribution 55 660,000 350 KEDC Client #08/101/99 provided incentive proposal on city owned property for new facility. 7/27/99 Commercial - Call Center 500 30,000 N/A Call Center provided incentive proposal, including expansion of Zone to building under consideration. 7/26/99 Industrial - Warehouse 500 500,000 40 KEDC Client #05/061/99 offered So. Mt. Vernon property and redevelopment financial assistance as incentives for $35 Million project. Company recently choose another city. 7/21/99 Commercial - Equipment N/A 5,000 1 Director met with owner and broker to discuss potential expansion and need or new facility. 6/24/99 Industrial - Potato Processor 40 50,000 N/A Met with KEDC Client #0707398 to discuss Zone benefits and potential city incentives available. 5/6/99 Industrial - Warehouse 250 450,000 20 KEDC Client #03/033/99 provided proposal on city owned property for new.$22M warehouse facility. 5/3/99 Industrial - Manufacturing 400 350,000 40 KEDC Client #04/044/99 provided incentive proposal on city owned property for new facility. 4/19/99 Industrial - Manufacturing 600 200,000 50 Consultant provided incentive proposal on city owned property for new $40M manufacturing facility. 4/14/99 Industrial - FSI Equipment 10 6,000 1 Fresno company purchased site for equipment facility in Gateway Industrial Park. 3/16/99 Industrial - Distribution 300 1,000,000 80 National hardware company considering distribution sites, meeting with city officials on city incentives. 12/8/98 Industrial - Rubber Products 20 15,000 2 LA company considering relocation for new facility, discussed zone and other city incentives. 11/30/98 Industrial - Warehouse 100 75,000 20 Provided proposal to KEDC Client #08/088/98 for distribution center for food products. 11/26/98 Industrial - Steel Products 250 100,000 25 Conditional Use Permit approved for Canadian company looking for manufacturing site, provided proposal on 25 acres of City owned land. Staff assisting with air quality permits required for facility. 11/2/98 Industrial - Ennis Paint Mfg 20 20,000 2 Located existing vacant building for paint company, expanded zone to include site for benefits. 2/25/98 Commercial - AFSA Data 400 50,000 12 AFSA opened facility after remodeling old Kmart building at 34~' Street. As an incentive to locate here, city agreed to expand Zone boundaries to site. First Contact Bldg. Size Date Type of Business Jobs (sq. ft.) Acres Comments or Prospect Status GENERAL SUMMARY REDEVELOPMENT SUMMARY Downtown Project Area 11/10/99 Commercial - Carpet Store N/A 10,000 N/A Carpet business considering rehab of building for new location, requesting redevelopment assistance. 10/12/99 Commercial - Office N/A N/A N/A Discussions with national telecommunications company looking for office sites, offered redevelopment assistance for downtown locations. 9/30/99 Commercial - Office N/A 68,000 3 Staff coordinated Team Bakersfield meeting for developer considering large office project. Continued discussions with Director on redevelopment assistance to offset costs. 9/23/99 Commercial - Retail N/A 50,000 N/A Developer provided downtown demographics for consideration of retail/entertainment facility. 8/30/99 Commercial - Intemet 50 10,000. N/A Meetings with LA internet server considering relocation to City, needs downtown site due to fiber optics. Southeast Bakersfield Project Area 10/21/99 Industrial - Food Products 100 150,000 25 KEDC Client #10/121/99, a manufacturer of food products, provided city incentive proposal including redevelopment assistance. 10/19/99 Industrial - Distribution 250 600,000 100 Provided revised city proposal to KEDC Client #10/120/99 including redevelopment assistance. City proposal will go to Company Board for approval in December. 10/1/99 Industrial - Warehouse 375 350,000 40 A city incentive proposal was provided to KEDC Client #10/116/99. 9/7/99 Industrial - Warehouse 225 250,000 40 KEDC Client ¢K)9/106/99 provided city incentive proposal including redevelopment assistance. 8/24/99 Commercial - Motel N/A N/A N/A Meeting with owner of abandoned motel on Union Ave. to discuss potential redevelopment. 5/21/99 Commercial - Shopping Mall N/A N/A N/A Staff met with shopping center developer interested in doing project in Southeast Redevelopment area to tour area and potential sites. Developer provided additional information to evaluate retail potential. 3/8/99 Commercial - Call Center 1,000 100,000 10 KEDC Client ~)3/028/99 continue to meet with City and ETR on city incentives and labor issues for call center facility. Company considering Agency property and assistance on S. Mt. Vernon for facility. Old Town. Kern - Pioneer Project Area 9/7/99 Commercial - Restaurant N/A 3,000 15 Restaurant wants to remodel building, staff discussed potential assistance available, 7/22/99 Commercial - Grocery Store 100 35,000 3 Director met with representative of grocery chain considering sites within redevelopment project areas. BAKERSFIELD Economic and Community Development Department MEMORANDUM December 15, 1999 TO: Jake Wager, Economic Development Director FROM: Vince A. Zaragoza, Principal Planner //2_. SUBJECT: Status of Housing and Community Development Activities This memo will serve as an update for the past quarter regarding on-going housing and community development projects. CAPITAL IMPROVEMENT PROJECTS 1. Neighborhood Street Lighting Improvement Project (PH II) Upgrading of existing street lights to City standards and the placement of new street lights. and poles to existing residential streets in an area bounded by East California on the north, the Southern Pacific RR tracks on the east and on the south and Lakeview Avenue on the west. Design was completed last year. Installation was started in October and is scheduled to be completed in December, 1999. Approximately $52,000 was budgeted for this activity. 2. Chester Avenue #3 Annexation Street Improvement Project Approximately $100,000 was budgeted for street improvements for this area in FY 1997-98. Street lights were installed in October, 1997. Remaining funds will be used for designing a water system upgrade and improving fire protection. Design will begin after approval of a project agreement between City and Cai-Water Company. City Public Works is the lead agency, and they requested a cost estimate from Cai-Water on 6/9/99 and again on 11/15/99. Construction is scheduled to take place in the Spring of 2000. 3. Casa Loma #6 Annexation Street Improvement Project Approximately $ ! 10,250 was budgeted for street improvements for this area in FY 199%98. Installation of street light upgrade will be completed, when P G&E energizes the lights at the end of December, 1999. Design for storm drains has been completed and acquisition of a future sump site should be completed by the end of December, 1999. Installation of sump and storm drain lines should be completed by March, 2000. First phase o£curb and gutter installation and street reconstruction was completed in November, 1999. S:WZ\QuarterlyXR4thquart99.WPD 1 4. Casa Loma #6 Fire Hydrant and Water System Improvement Project Funds in the amount of $189,750 (FY 1997-98) for design and construction of fire hydrant installation and water line upgrade were budgeted for this project. Design will begin after approval of a project agreement between City and Cai-Water Company. City Public Works is the lead agency, and they requested a cost estimate from Cai-Water on 6/9/99 and again on 11/15/99. Construction is scheduled to take place in the Spring of 2000. 5. Architectural Barrier RemoVal for Parks Playground Equipment Funds in the amount of $110,000 (FY 1998-99) were set aside to meet American's with Disabilities Act (ADA) compliance for stationary playground equipment at 17 existing City parks. Design and bid package preparations are underway. Installation is planned for Spring of 2000. 6. Casa I, oma #6 Storm Drain (Phase II) Funds in the amount of $275,000 (FY 98-99) were budgeted for design and construction of storm drainage improvements to alleviate drainage problems in the Casa Loma #6 Area Design for storm drains has been completed and acquisition of a future sump site should be completed by the end of December, 1999. Installation of sump and storm drain lines should be completed by March, 2000. 7. Casa Loma #6 Curb and Gutter Project Funds in the amount of $16,500 (FY 98-99) were budgeted for design of curb and gutter' improvements in the Casa Loma #6 Area. First phase of curb and gutter installation was completed in November, 1999. 8. Casa Loma #6 Fire t!~drant and Water S_vstem Project (Phase II) Funds in the amount of $101,000 (FY 1998-99) were earmarked for replacement of undersized water mains and fire hydrant upgrade in the Casa Loma #6 Area. Design will begin after approval of a project agreement between City and Cai-Water Company. City Public Works is the lead agency, and they requested a cost estimate from Cai-Water on 6/9/99 and again on 11/15/99. Construction is scheduled to take place in the Spring of 2000. 9. Chester Avenue #3 Fire I-!?drant and Water S_vsterns Improvements (Phase II) Funds in the amount of $45,000 (FY 1998-99) were budgeted for design and engineering costs and related improvement to replace undersized water mains and fire hydrant upgrade in the Chester Avenue Area. Design will begin after approval ora project agreement between City and Cai-Water Company. City Public Works is the lead agency, and they requested a cost estimate from Cai-Water on 6/9/99 and again on 11/15/99. Construction is scheduled to take place in the Spring of 2000. P:\QTLYLR4thquart99.WPD 2 10. Hale_v Street Area Reconstruction Project (Phase II) Funds in the amount of $71,400 (FY 1998-99) were budgeted for reconstruction of sidewalks in the Haley Street Area. The annual CDBG concrete contract was awarded to Jim Alfter on March 17, 1999. Construction started last March and was completed in August, 1999. 11. Lake Street Area Reconstruction Project (Phase VII) Funds in the amount of$138,500 (FY 1998-99) were budgeted for the reconstruction of Lake Street from Robinson Street to Haley Street. Design to be completed in January, 2000 and construction is scheduled to start in Spring, 2000. 12. Street Improvement Project Funds in the amount of $300,000 (FY 1998-99 Amendment gl) were budgeted for street materials for street resurfacing in CDBG eligible neighborhoods. The street material contact was awarded on April 14, 1999. Installation of street materials started in Casa Loma #6 last April and Phase I was completed in November, 1999. Any remaining funds will be used in Phase II and be completed by spring of FY 2000-01. 13. Chester Avenue #3 Water System Improvement (Phase III) Funds in the amount of $54,000 (FY 1998-99 Amendment #3) were budgeted to upgrade the water system in the Chester Avenue #3 area to City fire protection standards. Design will begin after approval of a project agreement between City and Cai-Water Company. City Public Works is the lead agency, and they requested a cost estimate from Cai-Water on 6/9/99 and again on 11/15/99. Construction is scheduled to take place in the Spring of 2000. 14. Union glO Street Improvement Project Funds in the amount of $39,500 (FY 98-99 Amendment #3) were budgeted for street materials for street improvements in the Union # 10 area. The Streets Division is preparing to go out to bid for street materials. Asphalt work, curb and gutter installation and sidewalk reconstruction is scheduled to start in the Spring of 2000. 15. Martin Luther King Jr. Community Center HVAC (Phase II) Funds in the amount of $14,500 ( FY 1995-96 Amendment gl0) were budgeted for the installation of two HVAC's to an existing neighborhood community center. Installation to take place in January, 2000. 16. Martin Luther King Jr. Communi~_ Center Kitchen and Conf. Room Rehab. Project Funds in the amount of $10,522 (FY 95-96 Amendment #10) were budgeted to rehabilitate the kitchen and conference room at the MLK Jr. Center. General Services completed the remodeling in October, 1999 and is scheduled to install the built-in appliances in January, 2000. S:WZ\Quartefly~R4thquart99.WPD 3 17. Martin Luther King Jr. Communi~_ Center Tennis Court Resur£acing Project Funds in the mount orS 11,500 (FY 95-96 Amendment # 10) were budgeted to resurface two tennis courts and two practice courts at the MLK Center. Installation is planned for by December of 1999. 18. Wilson Park ADA PlaFground Improvement Project Funds in the amount of $114,546 (FY 96-97 Amendment #10) were budgeted to install handicap accessible playground equipment and surfacing. A construction bid was awarded on 11/17/99 and installation should take place in January, 2000. 19. MLK Jr. Playground Improvement Project Funds in the amount of $92,100 (FY 99-00) were budgeted to install handicap accessible playground equipment and surfacing. Installation is planned for the Spring of 2000. 20. Downtown Streetscape Expansion Project (Phase I) Funds in the amount of $200,000 (FY 99-00) were budgeted for streetscape improvements within the public-right-of-way of 18th Street from Eye to K Streets (the CDBG portion of the project). The total streetscape project is bounded by 17th Street in the south, K Street in the east, 21 st Street in the north and Eye Street in the west. An Environmental Enhancement Mitigation Grant (EEM) has been applied for to raise $250,000 for the non CDBG portion of the project. Public Works has prepared a Transportation Efficiency Act (TEA) grant application for $550,000. The TEA application is to be submitted in December, 1999. Preliminary cost estimates and project design is completed. Construction will start after the two above grant funds are obtained around September, 2000. 21. Casa Loma #6 Street Improvement Project (Phase III) Funds in the amount of $50,000 (FY 99-00) were budgeted for street improvements in the Casa Loma #6 area. First phase of curb and gutter installation and street reconstruction was completed in November, 1999. 22. Filson Street Cul-de-sac Project Funds in the amount of $45,000 (FY 99-00) were budgeted for a landscaped cul-de-sac at the' east end of Filson where it now intersects with Hale Street. Design was finished, and additional right-of-way was acquired in October, 1999. Construction is. to be completed in December, 1999 by the Streets Division. 23. Lake Street Area Street Reconstruction Project (Phase VIII) Funds in the amount of $142,500 (FY 99-00) were budgeted to reconstruct Lake Street from Robinson Street to Haley Street to facilitate traffic flow and drainage for the area. Design to be completed in January, 2000 and construction is scheduled to start in Spring, 2000. 24. South Union Avenue Median Landscape Project S:WZ\QuarterlyLR4thquart99.WPD 4 Funds in the amount of $65,000 (FY 99-00) were budgeted for street related improvements within the public right-of-way along South Union Avenue from Brundage Lane to Ming Avenue to facilitate traffic flow, drainage and to enhance visual appearance. The County is preparing a two agency project agreement. 25. Union #10 Street Improvement Project Funds in the amount $57,500 (FY 99-00) were budgeted to provide materials and installation. to reconstruct streets and install curbs and gutters in the Union # 10 area. Asphalt work, curb and gutter installation and sidewalk reconstruction is scheduled to start in the Spring of 2000. 26. Haley Street Area Sidewalk Reconstruction Proiect (Phase lid Funds in the amount of $58,500 (FY 99-00) were budgeted for the reconstruction of sidewalks in the Haley Street area. Work was completed in November, 1999. 27. Architectural Barrier Removal for Park Playground Equipment At 12 parks Funds in the amount of $16,825 (FY 99-00) were budgeted to make playgiound equipment accessible to the handicapped at 12 existing parks. Installation is scheduled for Spring of 2000. 28. Architectural Barrier Removal for Jastro Park Playground Equipment Funds in the amount of $71,610 (FY 99-00) were budgeted to install handicap accessible playground equipment and surfacing in Jastro Park. Installation is scheduled for Spring of 2000. 29. Chester Avenue #3 Fire Hydrant and Water Systems Improvement (Phase III) Funds in the amount of $33,800 (FY 99-00) were budgeted to bring the water system in the Chester Avenue #3 area up to fire protection standards. Design will begin after approval of a project agreement between City and Cai-Water Company. City Public Works is the lead agency, and they requested a cost estimate from Cai-Water on 6/9/99 and again on 11/15/99. Construction is scheduled to take place in the Spring of 2000. 30. Clearance and Demolition Program Funds in the amount of $50,000 (FY 99-00) were budgeted to clear lots in low-income areas, and 104 lots have been cleared or authorized to be cleared of weeds and/or debris. 31. Acquisition and Demolition Program Funds in the amount of $91,000 (FY 99-00) were budgeted to acquire and to demolish deteriorated structures in economically distressed area. The former AAA Pet Hotel at 1015' 13th Street has been acquired and an asbestos survey has been completed. The proposed demolition has gone out to bid and demolition is scheduled to be completed in February, 2000. The asbestos survey for structures owned by MAOF at 725 East California Ave. has been completed. The proposed demolition has gone out to bid, and demolition is scheduled to be completed by January, 2000. ~ S:\VZ\Quarterly~R4thquart99.WPD 5 NON-PROFIT/PUBLIC FACILITY PROJECTS Economic and Community Development staff is assisting the following various non-profit organizations to acquire or improve their facilities. COMMUNITY DEVELOPMENT BLOCK GRANT & HOME FUNDED 1. Clinica Sierra Vista Communi~ Services Center Site Acquisition/(MAOF) CSV was not able to procure the necessary financing to implement the urgent care drop-in facility, so a default notice was issued to CSV. A meeting was held with the Mexican American Opportunity Foundation (MAOF) to discuss their interest in the E. California property as a possible location for a child care center. Agreement 99-215 granted the East California Avenue property to MAOF and they took possession of the property on November 22, 1999. The existing building on the property must be demolished, because the cost to make it structurally sound exceeds the cost to demolish and rebuild it. The City will assist with the demolition process. 2. Golden Empire Gleaners Rehabilitation Improvement Pro]ect Approximately $340,000 in FY 96-97 funds have been earmarked for rehabilitating a 37,033 sq.ft, facility at 3100 Chester Avenue into administrative offices and a food distribution warehouse. The County provided acquisition assistance for the Gleaner's new facility as well as a portion of the rehabilitation costs. JTS Construction submitted an invoice for payment on November 24, 1999, indicating that the work is 90% complete. The architect is developing a punch list of items to be completed before final payment is issued. 3. Bakersfield Police Activities League Youth Center and Rehabilitation Project The City Council approved $116,500 in the 1999-2000 Action Plan for pal to purchase approximately 6 acres for the installation of athletic playing fields at their 301 4th Street Facility. The environmental clearance is in progress at this time. Release of funds is anticipated by January 18, 2000. After the City receives the release of funds from HUD, the agreement will be submitted to the City council for approval by the second council meeting in January at the earliest. County of Kern is scheduled to contribute $116, 500 to the PAL Center for rehabilitation of the existing structure. 4. Friendship House Improvement Project (Phase 1) The 1999-2000 Action Plan allocated $23,000 in CDBG to the Friendship House Community~ Center. Amendment # 10 added $13, 038 to the project on March 17, 1999. The total CDBG funds allocated t the project is $36,038. The environmental clearance was completed on September 17, 1999. The rehabilitation that is needed at the center exceeds the amount of fimds available to Friendship House at this time. On September 14, 1999, Mr. Lee Adams of Friendship House said he will meet with architects to reduce the project to a level that available funds can support. S :\VZ\Quarterly\R4thquart99.WPD 6 Bakersfield Homeless Center The 1998-99 budget allocated $55,000 in CDBG funds for the Bakersfield Homeless Center to acquire the property and buildings at 1620-1626 E. Truxtun Avenue. The total project consists of acquisition, rehabilitation and construction. The purpose of the project is to expand services at the existing center. Total cost of the project is approximately $560,000. The City's acquisition assistance was completed in June of 1999. Bethany Services is now' owner of the property and they are working with the County of Kern on the design and construction of the project. County of Kern is contributing approximately $240,000 towards design and construction with the remainder of funds coming directly from the Federal Department of HUD ($265,000). Project to be completed by Fall 2000. 6. Mt. Elgon Market Project The project is acquisition assistance to Mt. Elgon, a community-based development. organization (CBDO). The CBDO was incorporated to carry out neighborhood revitalization and community economic development projects. Property at 407 and 417 Lakeview is currently owned by the city and is under consideration for possible granting to Mt. Elgon. The property is to be developed as a non-profit job training and administrative center. The Mt. Elgon project will primarily serve residents of the southeast area. The CBDO is currently preparing a business and financing plan which is expected by December, 1999. 7. BakersfieM Senior Citizens Center The roof rehabilitation was completed on November 24, 1999. Staff is awaiting the notice of completion and final billing so the project can be closed out. The Senior Center is receiving funding from the County of Kern for additional design and rehabilitation of the facility. 8. Food Bank Acquisition and Construction (KCEOLD The 1999-2000 Action Plan allocated $255,000 to KCEOC towards the acquisition and construction of new food bank site and facility. The chosen site is in the process of being annexed into the City. When annexation is complete, work will begin on the environmental phase of the project. Property acquisition is projected for May 2000. 10. Precious Years Day Care and After School Enrichment Center Construction Project (Church of Christ) The 1999-2000 Action Plan allocated $11,000 towards the construction ofa daycare and after school enrichment center operated by Baker Street Church of Christ. The center is in the. development phase of its project, but they have not identified all funding for the project. 11. Restoration Communi~ Project, Inc. (RCPI) RCPI used City HOME funds to acquire a single-family home, and to rehabilitate the house and the adjacent property (main structure), formerly known as the Friese Maternity Home, for use as a transitional housing project. Approximately $130,000 has been set aside for this project. The facility will house women and their children as they recover from substance abuse and gain the skills to be self-sufficient. Kern County is also contributing to this project. S:\VZ\Quarterly~R4thquart99.WPD 7 This project has been rendered inactive because there was not sufficient funding to complete the additional items that were identified after the job had started. The additional items include: Total rewiring of the buildings; removal of surfaces that contain lead-based paint (e.g., all interior doors, windows, and frames); installation of a one hour fire corridor in main hall; roof replacement, and fire sprinklers. The total estimated cost of these improvements is an additional $120,000. Gil Anthony, of RCPI, is working on proposals to obtain the additional funding. When the new funding is in place, the work will commence and a new completion date will be given. 12. Haven Enterprises (HE) and Mercy Charities Acquisition/Rehabilitation City Council approved an agreement with Haven Enterprises and Mercy Charities in' December 1998. The agreement grants HE $230,000 to purchase and rehabilitate 24 residential rental units located at 231 Quantico Avenue. After the rehabilitation is completed, HE will turn the property over to Mercy Charities and Mercy Charities will assume all terms and liability of the HE agreement. As of June 1999, the lot line adjustments were complete, and Haven has acquired the property. A preconstruction conference with Strickland Construction was held on December 8, 1999. The $49,359.00 construction project is scheduled to begin December 13, 1999. The date of completion is early March, 2000. EMERGENCY SHELTER GRANT FUNDED 1. Bakersfield Homeless Center An agreement between the City and Bethany Services for FY 1999-00 ESG funds ($41,474) will be on the agenda for City Council action in December of 1999. Bethany Services, (al.b.a.' Bakersfield Homeless Center), will continue operation and services at the facility using Emergency Shelter Grant (ESG) funds. These funds will be used to support operation and maintenance'costs of the center as well as the expansion of child care services over a twelve- month period. Services are on-going. 2. Alliance Against Famil_v Violence An agreement between the City and Alliance Against Family Violence for FY 1999-00 funds ($17,483) for on-going services will be on the agenda for Council in December of 1999.' These funds will be used to support homeless services and facility maintenance over a twelve-month period. Homeless prevention services at their shelter site using Emergency Shelter Grant (ESG) funds are being expended. 3. Kern County Mental Health Association (KCMHA) An agreement between the City and KCMHA for FY 1999-00 funds ($12,761) will be on the agenda for City Council action in December 1999. ESG funds will be used to support. assessment and outreach activities for homeless and high at-risk for homelessness persons with mental disabilities. Services are on-going. S:\VZ\QuarterlyLR4thquart99.WPD 8 ~ 4. Count_ qf Kern Mental Health S_vstem o]' Care An agreement between the City and KCMHASOC for FY 1999-00 funds ($22,332) is being reviewed by the County. The funding will support operations essential services and' homeless preventions activities of the association. It is anticipated that the agreement will be ready for City Council action in January or February of 2000. NEIGHBORHOOD REVITALIZATION AND HOUSING 1. First Time Home BuYers Program The FTHB program continues to process loans from the HOME entitlement for first time home buyers. Up to $3,500 per applicant is provided in the form ora no interest, no monthly payment loan for use toward the down payment and non-recurring closing costs associated with the acquisition. The loan is repayable in full at the time the borrower sells the residence. The average turn around time from the date the file is accepted and the funds released has been consistently less than 14 days. During the past quarter, 28 loans were made and $72,167 expended. This has leveraged about $2,158,372 in non-HOME funds (about $38 million since inception of the program). 2. Looking Good Neighborhood (LGN) Program. The LGN Program for C.T.'s 13, 15, 21 and 22 is for general public service activities such as clean-up days, public health awareness, educational campaigns and an annual neighborhood awareness festival. The Good Neighbor Festival was held on October 23, 1999 at Martin Luther King Park. Approximately 60 vendors participated in the festival and 1,500 to 2,000 people attended. This is the fourth year that the Bakersfield African-American. Cultural Association (BAACA) has coordinated event. There is some discussion that BAACA will join with the Southeast Neighborhood Partnership to host two events in the Southeast; a winter event on Lakeview Avenue and a spring event at the'Martin Luther King Jr. Community Center. Staff will continue to participate is some capacity with the Good Neighbor Festival committee. 3. Multi-£amiiv and Single-£amilv Rehabilitation Projects The proposed changes from the previous report have been implemented. During this past quarter, rehabilitation staff completed four single family rehabilitation projects; four rehabilitation projects are in various stages of construction, and ten applications are under review for approval. Thirteen rehabilitation applications were received during quarter. In an attempt to enhance the multi-family rehabilitation program, staff put out an RFP for an interest subsidy program. The responding proposals RFP did not meet staff's expectation, so all proposals were refused. Staff is reviewing its approach to multi-family rehabilitation' funding. A second modified RFP was issued and zero bids were returned. The program is now on hold pending further review. S:\VZ\QuarterlyLR4thquart99.WPD 9 4. Home Accessibility Program Community Developmem Division received twenty-three requests for assistance through the Home Accessibility Program this quarter. Fourteen disabled clients were assisted, and staff is working on another seven applications. Public demand for this program continues to be high. 5. Housing Rehabilitation Marketing Staff'received approximately 120 inquiries about our various programs and mailed that many applications for assistance to potential clients. Approximately 500 housing brochures have also been sent out to potential clients. Staff has also enhanced marketing by installing Home Improvement Program marketing signs in from of all current construction projects. Also, presentations are being made to approximately three agencies or groups per month. 6. URM Incentive Program During the past quarter, four applicants have been granted funds for a total of $16,165. These properties were all retrofits. This brings the total to $283,884 in assistance for 62 applicants (59 retrofits and three demolitions). In October, we sent a letter to each property owner who has an active application with the program. With this letter, we asked to know whether each property owner would be submitting a request for reimbursement through the program and, if so, by what date. These mailings were sent certified mail to each property owner. We included a stamped, self- addressed postcard so each property owner could easily indicate his or her intentions. Through this mailing, we will be able to determine who plans to submit a reimbursement' request as we approach the termination date of this program of December 31, 1999. 7. Business Assistance Program Marketing efforts continue for the CDBG Jobs Funds. An agreement for Stier's RV was approved by the Council last April for $60,000. The assistance will pay for equipment, permit/fee related costs, and provide 30 jobs. Stier RV is completing the construction of its new facilities. An agreement with Pleasant Holidays, LLC for assistance up to $250,000 was approved last July by the City Council. The assistance will help provide 150 jobs. The company opened up its new call center last September. Staff is curremly working with the following businesses: car dealership, warehousing firm, call center, and a manufacturer. S:\VZ\Quarterly~4thquart99.WPD 10 8. Fair Housing Quarterly statistics compiled fi.om reporting data collected between October through December indicate approximately 234 calls on the fair housing hotline. This quarter, 35% of the formal discrimination cases were referred to DFEH, 20% were referred to legal assistance or a private attorney and 45% were successfully mediated. Housing discrimination complaints and inquires to the Fair Housing Hotline breakdown as follows: Race .............. 60% Disability ........... 5% Familial Status ...... 20% Gender ............. 5% Other Arbitrary* .... 10% *Other includes age, marital status, sexual preference and other protected classes under case law. Presentations were given to four various non-profit agencies this quarter and a Housing Provider Workshop was also offered. These efforts were aimed towards providing information on Fair Housing rights and issues. Fair Housing staff has produced a public awareness announcement for television, educating the public on Fair Housing. It includes the Fair Housing Hotline numbers for both the city and the county. There is a Spanish and English version of the PSA and it has been distributed to all the television stations in the area. Fair Housing staff participated in the Looking Good Neighborhood Festival and the 34th Street Partnership Street Fair this quarter, performing community outreach in passing out Fair Housing flyers and brochures. 9. Enterprise Zone Marketing/Training The City, County, Employers' Training Resource (ETR), and Kern Economic Development Corporation continue to market the Enterprise Zone. An agreement between the agencies sets out the duties and responsibilities of each organization in marketing the Enterprise Zone.' City and County each contribute one-half of the funding for the $28,000 agreement that extended through June 30, 1999. A majority of the funds goes towards ETR to provide assistance in employee vouchering, job training, and employee referral services. Staff is working with the County on a new agreement. 10. New Construction Assistance The FY 96-97, FY 97-98 and FY 98-99 budgets have earmarked about $116,000, $50,000, and $140,000 respectively for housing development assistance for construction of affordable housing. Currently, staff has identified about eight vacant lots that are being offered in a public tax delinquent sale by the County. On August 21, ! 996 the Council approved a request that the County withdraw these sites from the tax sale in order for the City to make an offer to purchase them for future housing development. Two affordable housing developers have agreed to participate. Transfer of title on five of the properties was completed in September, 1997. Construction of the first unit was completed last year. The S:WZ\QuarterlyXR4thquart99.WPD l 1 developer of these five properties, Engineered Communities Inc. (ECI), started construction on two more houses last April. No anticipated date of completion has been offered by ECI. The City assisted Habitat for Humanity in closing escrow on three tax sale properties earlier this year. Habitat is also seeking additional HOME funds to pay the costs of construction related fees connected with their three acquired properties. It is anticipated that Habitat for Humanity will complete their units by June, 2000. 11. Green Garden Affordable Housing Project Last August the City funded approximately $140,000 in infrastructure improvements using a combination of CDBG and HOME funds to construct infrastructure improvements to benefit an affordable multi-family housing project located at 2300 South Union Avenue (the northeast comer of Union Avenue and White Lane). The total project involves acquisition of 7.3 acres, substantial rehabilitation and re-use of two existing structures (a vacant motel). Building construction is complete and tenancy occupation is underway. The Green Garden project will consist of 90 SRO affordable housing units for low income single, homeless, and disabled persons and 10 market rate SRO units (five of these units will be providing free space to supportive service agencies). The monthly rents for the 90 affordable housing units will be income restricted and generated from a HUD Shelter Plus Care (SPC) grant for at least ten years (at $319/unit/month this equates to $3,445,200 over a ten year period). The County Housing Authority Section 8 office is administering the SPC grant on behalf of HUD. Supportive services will be provided by local, county and non-profit agencies. The Green Garden facility will be a permanent housing complex with job training, medical, and recreational facilities. The Public Works Department is currently completing the infrastructure design and specifications. Construction is anticipated by early 2000. 12. Golden Empire Affordable Housing, Inc. (GEAHI) On June 30, GEAHI was approved by Council to receive $550,000 of HOME funds for. acquiring 3 acres for a senior housing project at the northeast comer of 21 and "R" streets (north of Central Park). The total cost of the project is about $6.18 million and will create 80 senior using units. GEAHI, which is a non-profit arm of the Kern County Housing Authority, will operate and maintain the project. GEAHI has received tax credits of about $ 4.6 million from the State of California Tax Credit Allocation Committee (TCAC). The remainder of the funds will come from City tax increment financing ($800,000) and Developer's equity ($208,972). Escrow closed this month. We anticipate that GEAHI will start construction by Spring of next year. 13. Cedar Housing Rehabilitation Project A request for $25,000 has been made from Living Connections Inc. for a nine bed licensed residential care facility for seriously mentally disabled women. The funds will be used for rehabilitation of the facility located at 2429 19th street. Plans and specifications are being prepared. Staff anticipates an agreement before the Council for their approval by spring 2000. P:\QTLY~R4thquart99.WPD 12 BAKERSFIELD Economic and Community Development Department MEMORANDUM December 16, 1999 TO: Alan Tandy, City Manager ~ FROM: Jake Wager, Economic Development Directo SUBJECT: HOME CHDO Funding Assistance - Affordable Home, Inc. Affordable Home, Inc. (AHI) a non-profit public benefit corporation has requested HOME Investment Partnership Program (HOME) funds to construct single-family homes, or purchase existing single-family for rehabilitation and resell to qualified homebuyers. Incorporated in 1994, AHI was organized to expand the opportunities to residents and groups to obtain adequate Iow cost housing accommodation by constructing, rehabilitating, and providing decent, safe and sanitary housing. Since it's inception, AHI has developed both single-family and multi-family rehabilitation projects in Los Angeles, Fresno, Lemoore, San Luis Obispo County, Phoenix, and Bakersfield. In the last three years AHI has acquired and rehabilitated a total of 82 single- family units and 154 multi-family units. AHI has been certified as a Community Housing Development Organization by the State of California which then allows AHI to access CHDO funds throughout the State: The HOME Program statutes and regulations offer very specific guidance to assure that CHDO's are: · Legally recognized not-for-profit corporations. · Organizations controlled by, and in service to, Iow-income communities, and · Organizations committed to, and capable of engaging in the development of affordable housing. The CHDO allocation for the City (15% HOME Allocation) for FY 1999/2000 is $195,000. AHI has requested $195,000 of HOME CHDO funds be allocated to assist them to purchase properties and construct or rehabilitate single-family homes that would be sold to qualified CDBG eligible families. No more than $15,000 would be spent per property.. After the home is purchased by an eligible homebuyer AHI shall use any'n~t;~i~co~e~.. ~ realized from the resale to purchase other eligible properties. An annual re~iii~b~-~ ., OEO I ? 1999 dlk:P:\OEORGE\ahi mcmo.wpd submitted by AHI identifying properties bought and sold to eligible homebuyer. AHI will maintain a HOME eligible revolving pool of funds to continue with their efforts to expand the availability of affordable housing in Bakersfield. We would like to put this item on the January 2000 City Council meeting for their consideration. dlk:P:\GEORGE\ahi memo.wpd BAKERSFIELD Economic and Community Development Department MEMORANDUM December 17, 1999 TO: Alan Tandy, City FROM: Jake Wager, Economic DL~vefdpment r)wec~r ' - SUBJECT: Update of December 16, 1999 SoutheastcBakersfield PAC meeting The Southeast Bakersfield Project Area Committee (PAC) met on December 16. (As a reminder, the Old Town Kern-Pioneer PAC is not meeting, at their request. Their last meeting was held on April 27th.) The Southeast PAC agenda covered the following items: Presentations: A. By Economic and Community Development staff regarding Enterprise Zone. B. By Mr. Jerry Gaines regarding recycling operations. Reports: A. Business Subcommittee: an update on the Dave Cross project and business incubator. B. Community Organization Subcommittee. C. Community Relations Subcommittee. D. Staff Old Business: A. Request for Services for Economic Development Study on Union Avenue. New Business: A. PAC Request for Master Plan for Project Area. Chairman Art Powell called the meeting to order at 6:32PM. Nine of the ten PAC members were present. One alternate was present. Reverend Curtis Richardson gave the invocation. There were no public statements. Pursuant to comments made by Charles Owens about the need for job training, Marvin O__ motion to form a committee to research employment training services available. ~Theimotion was · I S:\REDVAREA\PAC meeting 12-16 memo.wpd .... Alan Tandy December 17, 1999 Page 2 amended to say that the issue be referred to the Business Subcommittee. The motion passed. David Lyman gave a presentation on the enterprise zone; this was deferred form last month's meeting. Mr. Jerry Gaines made a presentation about a proposed recycling operation in the area and is looking for any input from the PAC. Vice Chair Stephanie Campbell made a motion to have the Business Subcommittee look at Mr. Gaines' proposal, see how the PAC could assist him, and make a recommendation at the next meeting. The motion passed. Under the Business Subcommittee report, Ms. Campbell said Mr. Gary Chapman was unavailable to attend the meeting but would attend the January 20 meeting to present an update on the incubator idea. Mr. Dean said Mr. Dave Cross was to attend the PAC meeting but was held up at the Planning Commission meeting. Mr. Dean provided an update on Dave Cross' proposal which, according to Mr. Dean, is still very much alive. A supermarket has signed a letter of intent to locate in the Dave Cross project. Mr. Cross wants to keep the community informed of his project. He is talking to the Superintendent of Schools regarding the Rafer Johnson School site to develop something similar to the Downtown School. Under the Community Relations Subcommittee report, Ricky Peterson gave a report about the condition of street lighting in the area. His committee drove specified areas and determined all the areas had deficient street lighting and would require improvements. He made a motion to adopt the Southeast Project Area Street Lighting Proposal with staff to review the proposal and return recommendations to the PAC. The motion passed. Under the Community Organization subcommittee report, Isaiah Crompton asked that Barbara Harris or a representative from Mt. Elgon be placed on the next agenda to discuss their business incubator plans. Under Staff Report, Charles Webb discussed the draft Downtown Implementation Plan, which was passed out. Under Old Business, the PAC discussed the proposed Request for Services for an Economic Development Study for Union Avenue. Ms. Campbell left the room due to a potential conflict of interest, because she may be bidding on the study. Mr. Peterson made a motion to adopt a Request for Services with conditions as set forth by staff for repayment. The motion failed. Under New Business, Mr. Dean made a motion to not budget one dime on a master plan but to request a Request for Proposals be sent out to interested professionals to conduct a master plan for Southeast Bakersfield. The motion died for lack of a second. Mr. Dean then made a motion to table this item to a furore meeting. The motion passed. S:\REDVAREA\PAC meeting 12-16 memo.wpd Alan Tandy December 17, 1999 Page 3 Under PAC Member Statements, Vice Chair Campbell said she has brought several proposals to the PAC. Some are still being worked on, while others are not. The PAC has spent a lot of time talking. At a certain point, the PAC needs to come together and decide what the PAC should do. The PAC needs to decide which items it wishes to present to the City Council. The group does not have a vision and has not brought anything to the table. Mr. Peterson said that Cottonwood Lane from Casa Loma Drive to East Brundage Lane is in the county area. He will be going to the Board of Supervisors to see if they will fill the gap on street lighting. Mr. Peterson also said the PAC needs to set elections for chair and vice chair as required by the bylaws. Mr. Dean said he is disappointed in members of the Redevelopment Agency who do not have the courtesy to show up at meetings. He attended the last meeting and no quorum was present. He cited a previous meeting where members were late and the meeting could not begin on time. PAC chair Art Powell said he went on record in agreeing with Mr. Dean. Mr. Dean continued that he had a different view of what is going on with the PAC. Everyone should keep a long term vision of what is going on. The PAC needs to avoid piecemeal action and work on an overall vision, like a master plan for the area. Reverend Richardson said he agrees with Vice Chair Campbell and would like to see something happen. Mr. Peterson said the area on Cottonwood Road from Planz to Casa Loma has no commercial businesses and he would support Mr. Gaines' efforts to locate his recycling business there. Ms. Campbell said it would have been nice to come into 2000 with a plan to assist small businesses. She also asked if anyone had heard from Devon Johnson, who has missed several meetings. Staff will follow up. Mr. Powell said that he is disappointed that the PAC did not proceed with the Union Avenue study and reminded the PAC that Rome was not built in a day. Mr. Owens stated he is going to find out how many jobs are coming into the area and get the qualifications for every job. The meeting was adjourned at 8:35PM. cc: Bakersfield Redevelopment Agency S:\REDVAREA\PAC meeting 12-16 memo.wpd DEVELOPMENT SERVICES NOTES DECEMBER 1999 1. Coleman Company representatives met with the Planning Commission Committee to review a proposed shopping center at Buena Vista Road and Stockdale Highway. Despite assertions in public hearings that this would be a special shopping center with design features that played off its relationship to the linear park and would be set up to better relate to the neighborhood, the plan proposed another typical arterial corner shopping center. 2. The South Beltway Alignment Study is back to the Planning Commission. Earlier hearings were continued to study an alternative alignment south of Taft Highway. 3. An application has been filed for general plan amendments and zone changes on 689 acres owned by L & J Alfalfa, Inc. and Mountain View Bravo northwest of Mesa Marin. The environmental impact report work should begin by the new year. There are also some circulation and land use relationships that need to be worked out. 4. The 2010 update meeting with the county and RBF Consulting was held Wednesday afternoon (12/8/99) to refine the work program and go over a draft contract. This should be to the City Council in January. 5. Notice of Intent to sue the city over approval of a negative declaration for the Jeffrey Brothers project at the southeast corner of Camino Media and Haggin Oaks was delivered on Thursday (12/2/99). However, the lawsuit was not filed by the deadline (12/6/99). 6. Code Enforcement has been directed to put together a proposal to pursue a more aggressive program to abate the most notorious problems we are trying to solve. Although we have been chipping away at them, I sense some impatience on the part of City Council and would like to review options in a workshop. 7. Permits and inspections have returned to a more normal pace much to the relief of the plan checkers and building inspectors. They really put forth extra effort to keep up with this past year's building surge. I; DEC I 3 1999 BAKERSFIELD PUBLIC WORKS DEPARTMENT MEMORANDUM DATE: DECEMBER 9, 1999 TO: ALAN TANDY, CITY MANAGER FROM: RAUL M. ROJAS, PUBLIC WORKS DIRECTOR~,--~~-~ SUBJECT: EAST CALIFORNIA AVENUE RAILROAD CROSSING NEAR WASHINGTON AVENUE As you know, the existing railroad crossing on East California Avenue just west of Washington Avenue is in desperate need of repair. In addition to the rough surface that exists at the crossing, the three spur tracks are situated at different elevations making it difficult to traverse the crossing. faster than about 10 miles per hour. Recently, we received notice from CalTrans that the railroad intends to improve the crossing through a Federal program that will pay 90% of all costs. These improvements will eliminate one of the tracks, reconstruct the remaining tracks with concrete crossings and install much improved signal warning devices. The local agency must pay the remaining 10%. Since this crossing is on the border of the City and County, we have approached the County to determine if they would participate in the cost of the local agency obligation. They indicated they would be willing to split the local agency share thereby making our total obligation 5%. The total cost for these improvements is estimated to be approximately $375,000. The local share would therefore be $37,500 with the City and County sharing that amount equally. We propose to budget this as a capital project next fiscal year.