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HomeMy WebLinkAbout07/19/1999 B A I~E R S F I E L D : Mark Salvaggio · AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, July 19, 1999 12:00 noon City Manager's Conference Room 1. ROLL CALL Call to Order at 12:07 p.m. Present: Councilmembers: Patricia J. DeMond, Chair; Mike Maggard; and Mark Salvaggio 2, ADOPT JUNE 21, 1999 AGENDA SUMMARY REPORT Adopted as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None $. DEFERRED BUSINESS A. UPDATE OF AGREEMENT AND SECOND DEED OF TRUST WITH THE BAKERSFIELD MUSEUM OF ART Assistant City Manager Alan Christensen provided a status report on the progress of negotiations with the Bakersfield Museum of Art. The City has agreed in principle with the Museum representatives on a new arrangement that will allow the City's and Museum's interests to be met. The arrangement includes an agreement with a second deed of trust that would eliminate the reverter clause and allow the City to have first right of refusal if the Museum were to sell the property. Terry Werdell, Counsel for the Museum, has received the draft agreement and trust deed. Due to the Museum's time constraints, they were unable to review the ADOPTED AS SUBI~ITTED ON AUGUST 20, 1999 FILE COPY AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, July 19, 1999 Page -2- documents before this meeting, but have agreed to have the documents reviewed and returned with comments by the next committee meeting date. The Committee discussed the City's options should the Museum upgrade the property, sell, moVe or attempt to move to another location. Based on the language that was agreed to in concept, the City would have first dght of refusal to purchase the property back for the appraised market value. The Committee discussed placing additional language into the agreement to further protect the City's interest should the Museum relocate. There was general agreement among the Committee members that the Museum intended to stay at its present location and would not be investing significant amounts of money into this project if they intended to move to another location. The Committee agreed to move forward with the agreement .as submitted to the Museum and directed staff to bdng this item back to the next Budget and Finance Committee meeting for final resolution. 6. NEW BUSINESS A. REVIEW ALLOCATION OF APPROPRIATION 1998-99 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR PROPOSED AMENDMENT a. Request authorization to reallocate CDBG funds. Economic and Community Development Director Jake Wager reported staff has identified $456,906 of CDBG monies to be made available to assist in encouraging the establishment of a grocery store in Southeast Bakersfield, as well as provide rehabilitation assistance to Living Connections, Inc., a nine bed residential care home for disabled women. Additionally, the proposed amendment will continue the funding of the acquisition and demolition program. This will allow the purchase and removal of deteriorated industrial, commercial, and residential properties in Census Tracts 15, 16, and 20. The funds to support these projects resulted from a CDBG loan repayment and the cancellation of the Casa Royale demolition, Bakersfield Sign rehabilitation and Unreinforoed Masonry Program. All projects were completed with funds other than CDBG funds. A public notice was published on July 5, 1999 initiating the amendment and public review and comment pedod. The Committee directed staff to scheduled this item for the July 21, 1999 City Council meeting for approval and submit the proposed CDBG amendment to the Department of Housing and Urban Development for approval after the 30-day comment period is over on August 4, 1999. Committee member Mark Salvaggio moved to support the CDBG reallocation, and the Committee unanimously voted in favor. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, July 19, 1999 Page -3- b. Request to terminate agreement with Clinica Sierra Vista and direct staff to work with Mexican American Opportunity*Foundation (MAOF) to identify replacement project. Economic and Community Development Director Jake Wager provided the Committee with an update on the 1997 agreement between the City and Clinica Sierra Vista (CSV), in which the City was to provide financial assistance for acquisition of a 27,000 square-foot facility. The property was to be developed as an urgent care medical services center, open seven days a week. After Clinica Sierra Vista was unable to meet critical deadlines with respect to CSV's funding for the construction and operation of the proposed facility, it was the consensus of both City staff and CSV that to pursue this project further would not be productive. As staff evaluated the City's course of action on CSV's project, Mexican American Opportunity Foundation (MAOF) expressed interest in developing a child care project in the immediate area. The replacement project identified by MAOF is a 144-slot child care center attending children ages 2-1/2 to 5. MAOF has been notified' by the State Department of Education that it has been awarded funding for their child care project. MAOF's application did include the East California Avenue property as an ideal site for their child care center. Staff informed the Committee that City Council action at the July 21,1999 meeting would be necessary to terminate the CSV agreement in order for staff to proceed with the necessary, steps to consider MAOF's request to be given title to the East California Avenue site for a child care center. Pending Council approval, the Committee directed staff to immediately begin a HUD amendment process identifying this new project and concurrently begin preparing an agreement with MAOF for City Council action at the August 11, 1999 meeting. Committee member Mike Maggard moved to approve, and the Committee unanimously voted in favor. c. Consider Police Athletic League (PAL) request to substitute land acquisition for approved building acquisition. Economic and Community Development Director Jake Wager informed the .Committee that shortly after the FY 1999-00 budget was approved by the City Council, PAL secured private financing to complete the acquisition of property located at 301 E. 4th Street. PAL would now like to purchase the adjacent 6.1 acre parcel for a recreation/athletic field and has requested that the funds allocated in the FY 1999-00 budget for the acquisition of the 301 E. 4th Street property be transferred to the purchase of the 6.1 acre parcel. This transfer will require an amendment to the FY 1999-00 CDBG Action Plan and completion of an environmental review of the new site. Staff is requesting approval to substitute this project and add it to the amendment currently being prepared. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, July 19, 1999 Page -4- Committee member Mark Salvaggio moved for approval, and the Committee unanimously voted in favor. d. Request to amend CDBG to identify KCEOC request for assistance for land acquisition. Economic and Community Development Director Jake Wager introduced this item that came up after posting of the Budget and Finance Agenda for July 19, 1999. The Committee unanimously agreed to address the item because action needed to be taken immediately. Kem County Economic Opportunity Corporation (KCEOC) received funding consideration by the City in the FY 99-00 budget to help acquire 18.72 acres for developing a campus facility complex. At the time of KCEOC's original request to the City, no specific site had been identified. Subsequently, negotiations have been concluded on a site in the County. In order for KCEOC to receive funding from the City of Bakersfield, the land must be annexed into the City to qualify for CDBG funds. Staff is requesting approval to amend the CDBG FY 1999-00 Action Plan to specifically identify the site. Committee Chair Pat DeMond moved for approval, and the Committee unanimously voted in favor. 7. COMMITTEE COMMENTS None 8. ADJOURNMENT The meeting was adjourned at 1:15 p.m. Staff present: Assistant City Manager Alan Christensen; City Attorney Bart Thiltgen; Assistant to the City Manager Darnell Haynes; Economic and Community Development Director Jake Wager; Community Development Coordinator George Gonzales; and Principal Planner Vince Zaragoza. Others present: Marc Benjamin, Bakersfield Californian; and Martin Castro, MAOF. cc: Honorable Mayor and City Council DWH:al S:\Darnell\Bud and Fin\BF99july19sum.wpd