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Home My WebLink About03/31/09 MINUTES RA-286. BAKERSFIELD REDEVELOPMENT AGENCY SPECIAL MEETING OF MARCH 31, 2009 Conference Room A, City Hall North, 1600 Truxtun Ave Special Meeting - 4:00 p.m. SPECIAL MEETING 1. ROLL CALL Present: Agency Members Pickett, Koman, Knapp, Ordiz, Prince, Takii, Bentley, L 2. 3. 4 PUBLIC STATEMENTS None CONSENT CALENDAR a. Minutes of the March 9, 2009 meeting. b. Approval of department payments from February 27, 2009 to March 19, 2009 in the amount of $1,268,968.11. Motion by Prince, seconded by Takii, to approve Consent Calendar items 3.a. and 3.6. PUBLIC HEARINGS a. Public Hearing to consider a Resolution to authorize the Bakersfield Redevelopment Agency to transfer and sell 1.53 acres of Real Property located at 1303 "S" Street in the amount of $1,000,001 and hold a $2,700,000 zero interest note with a balloon payment due and payable in 55 years from Millcreek Courtyard LLC to the Bakersfield Redevelopment Agency, for the development of 57 affordable apartments as phase 3 of the South Mill Creek Mixed Use Redevelopment Project. 1. Resolution approving the Sale of Real Property, located at 1303 "S" Street by the Bakersfield Redevelopment Agency to Millcreek Courtyard LLC for $1,000,001 and hold a $1,000,000 take-back note to be forgiven when the project is completed and the units have achieved rent up and stabilization. ACTION TAKEN APPROVED RA004-009 3~ 2 87, Bakersfield, California, March 31, 2009- Page 2 PUBLIC HEARINGS CONT. 2. Approve Disposition and Development Agreement between the Bakersfield Redevelopment Agency and Millcreek Courtyard LLC and a $2,700,000 zero interest note with a balloon payment due and payable in 55 years from Millcreek Courtyard LLC to the Bakersfield Redevelopment Agency, for the development of 57 affordable apartments as phase 3 of the South Mill Creek Mixed Use Redevelopment Project. Hearing Opened at 4:02 p.m. Staff report given by ED/CD Director Donna Kunz Agency Member Ordiz asked questions. Agency Member Prince asked questions. Agency Member Takii asked questions. Agency Member Koman asked questions. Mr. Keel, project manager for the Courtyard gave status of the construction start date which should commence in late fall early winter 2009, with an estimated complete date of 2010. Hearing Closed at 4:25 p.m. Motion by Prince, seconded by Takii to approve the adoption of the Resolution. 5. REPORTS None 6. DEFERRED BUSINESS None 7. NEW BUSINESS a. Resolution authorizing the Bakersfield Redevelopment Agency to apply for State of California Department of Housing and Community Development Infill Infrastructure Grant Program funds in the amount of $10,847,200 for Southeast Bakersfield and Old Town Kern Redevelopment Project Areas. Staff report and power point given by ED/CD Director Donna Kunz, with written material provided. ACTION TAKEN RA09-004 APPROVED RA005-09 Chairperson Bentley commended Staff on a job well done in preparing the report and asked questions. 288 L Bakersfield, California, March 31, 2009- Page 3 NEW BUSINESS CONT. Agency Member Ordiz commented also and asked questions. Agency Member Prince asked questions. Agency Member Koman asked if the State had this money, and if not what were the alternatives. Manger Alan Tandy gave comments. Motion by Prince, seconded by Ordiz for approval b. Redevelopment Agency Tax Allocation Bonds 2009 Series A, B,C&D. 1. Resolution of the governing board of the Bakersfield Redevelopment Agency authorizing issuance of not to exceed $16.5 million of 2009 Tax Allocation Bonds; approving the form of related legal documents, authorizing modifications thereto and authorizing and directing execution and delivery thereof, as modified; approving and authorizing distribution of Preliminary Official Statements and preparation and distribution of an Official Statement to be derived therefrom following sale of the bonds; and authorizing related actions. 2. Resolution of the governing board of the Bakersfield Redevelopment Agency authorizing the expenditure of Bakersfield Redevelopment Agency funds for construction of those certain public improvements specified in the Series "A" and Series "B" 2009 Tax Allocation Bonds and making certain determinations in connection therewith. 3. Resolution of the governing board of the Bakersfield Redevelopment Agency authorizing the expenditure of Bakersfield Redevelopment Agency low and moderate housing funds for construction of affordable housing projects outside the individual project areas and the combining of the low and moderate housing tax increment for all three project areas as the security of the Series "D" 2009 Tax Allocation Bonds and making certain determinations in the connection therewith. Staff report given by City Manager Alan Tandy ACTION TAKEN APPROVED RA006-09 RA007-09 RA008-09 - 289. Bakersfield, California, March 31, 2009- Page 4 NEW BUSINESS CONT. ACTION TAKEN Finance Director Nelson Smith provided the agency members with an overview of the proposed financing structure, including a review of the three resolutions being considered for adoption; their form and substance, including bond indentures, preliminary official statements and bond purchase agreements; makes findings that the projects funded with Series A & B bonds are of public benefit; and findings allowing the joint pledge of housing set aside funds from all three project areas as the repayment source for the Series D bonds. The Board was advised the financing team is also contemplating a bond rating from Moodys and possible bond insurance to strengthen the marketability of the bonds. Assistant ED/CD Director Rhonda Barnhard provided a project by project overview of those items being financed in the various bond series. Agency Member Koman gave comments and asked questions. In response to questions from Agency Member Koman, Mr. Doug Houston, Sr. Vice President of George K Baum and Company provided an overview of current market conditions and advised the agency members that the bonds were structured in a conservative manner with fairly high coverage ratios. Mr. Houston also stated that the payments on the bonds would be funded with today's tax increment so that the agency would not be using any part of the bond proceeds to make payments on the bond debt. Agency Member Pickett left at 5:00 p.m. for another meeting. ED/CD Director Donna Kunz left for another meeting at 5:00 p.m. Agency Member Knapp asked questions. City Manager Alan Tandy left the meeting at 5:15 p.m. for another meeting. APPROVED Motion by Koman, seconded by Prince for approval of qg p/CKETT Resolutions. J 2 9~ Bakersfield, California, March 31, 2009- Page 5 NEW BUSINESS CONT. ACTION TAKEN c. Amendment No. 1 to Agreement No. RA08-009 with RA08-009(1) AMCAL Santa Fe Fund, L. P. for the construction of 55 affordable multi-family units and 1 Manger's Unit located at 701 Union Avenue in an amount not to exceed $400,000 for eligible project construction costs. Assistant ED/CD Director Rhonda Barnhard gave staff report; and introduced Craig Smith with AMCAL. Agency member Koman asked questions,Craig Smith the developer responded to the questions. Agency Member Koman asked what would happen if they did not approve the Amendment. Craig Smith stated they had the funds to back the project. Assistant ED/CD Director Rhonda Barnhard gave additional comments and stated that the agreement was approved back in June. APPROVED Motion by Prince, seconded by Takii for approval. AB P/CKETT 8. AGENCY STATEMENTS Agency member Takii thanked staff and guests for great information on the upcoming project. Agency member Koman commented on the several presentations and asked that in the future could they be provided with maps. Agency member Koman mentioned the bonds with the downtown projects and the Arena. Assistant ED/CD Director Rhonda Barnhard responded to questions. Chairperson Bentley asked the status of the Downtown project and if there was any changes upcoming. Assistant ED/CD Director Rhonda Barnhard responded to the questions. 9. CLOSED SESSION None 10. WORKSHOP None 29~ Bakersfield, California, March 31, 2009- Page 6 11. ADJOURNMENT Agency Chair Bentley adjourned the meeting at 5:37 p.m. r CHAIR ERS f the akersfield Redevel pment Agency ATTEST: /r>Sf., S RETARY and Officio Clerk of the Council of the City o Bakersfield