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Home My WebLink About05/04/09 RDA AGENDA BAKERSFIELD REDEVELOPMENT AGENCY ° AGENDA REGULAR MEETING OF MAY 4, 2009 Conference Room A, City Hall North 1600 Truxtun Avenue 4:00 p.m. REGULAR MEETING 1. ROLL CALL 2. PUBLIC STATEMENTS 3. CONSENT CALENDAR a. Minutes of the April 13, 2009 regular meeting. b. Approval of department payments from April 3, 2009 to April 23, 2009 in the amount of $283,999.47. C. Resolution of the Bakersfield Redevelopment Agency to find that Fiscal Year 2009-10 Planning and Administrative Expenses from the Agency's Low and Moderate Income Housing Funds are Necessary for the Production, Improvement or Preservation of Low and Moderate Income Housing in the City of Bakersfield. d. Full Release and Termination of Disposition and Development Agreement No. 01-088/RA04-001, dated March 28, 2001 between Ray Olmsheid (later assigned to MAYA Cinemas North America), the City of Bakersfield and the Bakersfield Redevelopment Agency. e. Full Release of and Termination of Disposition and Development Agreement RA04-001, dated January 5, 2004 between Ray Olmsheid and the Redevelopment Agency. Staff recommends approval of Consent Calendar items 3.a. through 3.e. 4. PUBLIC HEARINGS 5. REPORTS a. Update status of Baker Street Mixed Use Project. b. Update status of Mill Creek 6. DEFERRED BUSINESS 7. NEW BUSINESS a. Agreement between the Bakersfield Redevelopment Agency, Mercy Housing California and Mercy Housing California XI, A California Limited Partnership to rehabilitate an affordable residential housing project (not to exceed $350,000) consisting of fifty-six (56) affordable housing family rental units at 1885 Madison Street, Bakersfield, CA. Staff recommends approval. 8. AGENCY STATEMENTS 9. CLOSED SESSIONS 10. WORKSHOPS 11. ADJOURNMENT lly submi , u Re 7dy r a Executive Director BAK Fyt0PtOR4t~ V ADMINISTRATIVE REPORT cq~ ROi MEETING DATE: May 4, 2009 AGENDA SECTION: Consent Calendar ITEM: 3.a. TO: Bakersfield Redevelopment Agency APPROVED FROM: Pamela A. McCarthy, City Cler>L/ DEPARTMENT HEAD DATE: April 27, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Minutes of the April 13, 2009 regular meeting. RECOMMENDATION: Staff recommends approval of the minutes. BACKGROUND: A ADMINISTRATIVE REPORT t MEETING DATE: May 4, 2009 AGENDA SECTION: Consent Calendar ITEM: 3.6. TO: Bakersfield RDA APPROVED FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD DATE: April 24, 2009 GENERAL COUNSEL V EXECUTIVE DIRECTOR SUBJECT: Approval of department payments from April 3, 2009 to April 23, 2009 in th amount of $283,999.47. RECOMMENDATION: Staff recommends approval of payments totaling $283,999.47. BACKGROUND: Individual payments exceeding $3,500 in the above total are listed below. Aleshire & W nder LLP $ 7,882.00 T Payment for Professional Services through February 28, 2009. GRC Accociates, Inc. $ 7,000.00 1$ Payment for Professional Services through February 2009 Per Agreement BRDA 08-022. Meyer Civil Engineering Inc $ 4,186.50 18 Payment For Professional Services For The Mill Creek Project. Overland Pacific & Cutler $ 8,000.00 Payment for Actual Reasonable Moving and Related Expenses of Property Abandonment located at 730 California Ave. San Joaquin Fence & Supply $ 2,347.02 Payment for Fencing Materials for the Mill Creek Park. University of La Verne $ 6,000.00 5 Payment for Interest in Real Property located at 1600 Truxtun Ave Per Agreement 07-081 and RA 07-001. AT & T California $ 38,858.02 Aerial Relocation for 19 Street Senior Plaza ATD-American Co $ 27,862.35 Payment for the Mill Creek Park - 32 Plexus Litter Trash Receptacles Whitaker Contractors Inc $ 74,458.20 4 and Final Payment for Construction for the Mill Creek Canal Waterway Project. Pacific Gas and Electric CFM/PPC $ 105,190.20 Payment for Electric Overhead to Underground Conversion located at 501 19th Street. S:1Richard\APWDMIN-BRDAIADMIN--BRDA-AP-05-04-09.doc 1 ADMINISTRATIVE REPORT MEETING DATE: May 4, 2009 AGENDA SECTION: Consent Calendar ITEM: S. c. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: April 30, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Resolution of the Bakersfield Redevelopment Agency to find that Fiscal Year 2009-10 Planning and Administrative Expenses from the Agency's Low and Moderate Income Housing Funds are not necessary for the Production, Improvement or Preservation of Low and Moderate Income Housing in the City of Bakersfield. No funds have been budgeted for FY 2009-10. RECOMMENDATION: Staff recommends adoption of the resolution. BACKGROUND: In accordance with State Health and Safety Code Section 33334.3 (d), redevelopment agencies may use a portion of monies from the Low and Moderate Income Housing Funds to provide planning and general administrative costs. The Agency must determine annually that the planning and administrative expenses are necessary for the production, improvement, or preservation of low-and moderate-income housing. Attached is a resolution finding that planning and administrative costs are not necessary for the production, improvement, or preservation of low-and moderate-income housing for fiscal year 2009-10. S:\Admins\RDA\RDA Adm ins 2009\13akrdahousing fund 09-10.doc 4/30/2009 10:02 AM w = ADMINISTRATIVE REPORT MEETING DATE: May 4, 2009 AGENDA SECTION: Consent Calendar ITEM: 3.d. TO: Bakersfield Redevelopment Agency FROM: Donna L. Kunz, Economic Development Director DEPARTMENT HEAD DATE: April 30, 2009 CITY ATTORNEY CITY MANAGER SUBJECT: Full Release and Termination of Disposition and Development Agreement No. 01- 088/RA01-04, dated March 28, 2001 between Ray Olmscheid (later assigned to MAYA Cinemas North America), the City of Bakersfield and the Bakersfield Redevelopment Agency. RECOMMENDATION: Staff recommends that the City Council authorize the Full Release and Termination of the Disposition and Development Agreement No. 01-088/RA01-04 for recordation. BACKGROUND: The City of Bakersfield and the Bakersfield Redevelopment Agency entered into a Disposition and Development Agreement (DDA) with Ray Olmscheid to facilitate a mixed use commercial project that included the development of a Theater and approximately 25,000 square feet of retail space in the Southeast Redevelopment Project Area. The DDA called for the Redevelopment Agency to pledge the new tax increment generated from the project towards development of a new multipurpose stadium. In the ensuing years, the theater development ran into several financing hurdles resulting in a long delay. In addition, several financial obstacles concerning the planned stadium development arose for the City and the stadium plans were later cancelled. Maya Cinemas ultimately secured financing for their theater building in late 2008, long after the expiration of the original DDA. Still committed to the development of the theaters and retail, Maya Cinemas began construction of the theaters in November 2008, with a completion timeline estimate of August 2009. Maya Cinemas is now in the process of obtaining a loan to purchase and install the interior equipment and fixtures for the theater. The theater property will be used as collateral for the loan and requires a title insurance policy for the lender. In order to deliver an unencumbered property title to the lender, the original DDA (now expired) along with its related covenants must be removed from the title. To achieve this, a document releasing the DDA has been prepared by legal and is attached. The release document will be recorded and acknowledges that the City of Bakersfield and the Bakersfield Redevelopment Agency authorizes the covenants and conditions outlined in the original DDA to be cancelled. A similar release document has been prepared for the City of Bakersfield. Authorization of the release of the DDA will not change or cancel the Joint Parking Agreement or the sale of Property Agreement that currently exists between the City of Bakersfield and Maya Theaters. S:Wdmins\RDA\RDA Admins 2009\Maya2.doc 4/30/2009 9:55 AM I~lh,rnrf~ ADMINISTRATIVE REPORT MEETING DATE: May 4, 2009 AGENDA SECTION: Consent Calendar ITEM: 3. e . TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: April 28, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Full Release of and Termination of Disposition and Development Agreement RA04-001, dated January 5, 2004 between Ray Olmsheid and the Redevelopment Agency RECOMMENDATION: The Redevelopment Agency authorize staff to execute the Full Release and Termination of Disposition and Development Agreement document for recordation. BACKGROUND: The Redevelopment Agency entered into a Disposition and Development Agreement (DDA) with Ray Olmsheid to facilitate a mixed use commercial project that included the development of a Theater and approximately 25,000 square feet of retail space in the Southeast Redevelopment Project Area. The DDA called for the Redevelopment Agency to pledge the new tax increment generated from the project towards development of a new multipurpose stadium. In the ensuing years, the theater development ran into several financing hurdles resulting in a long delay. In addition, several financial obstacles concerning the planned stadium development arose for the City and the stadium plans were also cancelled. Maya Cinemas ultimately secured financing for the theater building in late 2008 long after the expiration of the original agreement. Still committed to the development of the theaters and retail, Maya Cinemas began construction of the theaters in November 2008, with a completion timeline estimate of August.2009 Maya Cinemas is now in the process of obtaining a new loan to purchase and install the interior equipment and fixtures for the theater. The theater property will be used as collateral for the loan and requires a title insurance policy for the lender. In order to deliver an unencumbered property title to the lender, the original DDA (now expired) along with its related covenants must be removed from the title. To achieve this, a document releasing the DDA has been prepared by legal and is attached. The release document will be recorded and acknowledges that the Redevelopment Agency authorizes the covenants and conditions outlined in the original DDA to be cancelled. Authorization of the release of the DDA will not change or cancel the Joint Parking Agreement or the sale of Property Agreement that currently exists between the City and Maya Theaters. S:\Admins\RDA\RDAAdmins 2009\Maya1.doc 4/28/2009 11:37 AM ADMINISTRATIVE REPORT MEETING DATE: May 4, 2009 AGENDA SECTION: Reports ITEM: j.0.. TO: Bakersfield Redevelopment Agency OVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEA nC DATE: April 24, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Update status of Baker Street Mixed Use Project ! RECOMMENDATION: No action required. BACKGROUND: Staff will provide an update on the Baker Street Project. S:Wdmins\RDA\RDA Admins 2009\Baker Street update 050409.doc ADMINISTRATIVE REPORT MEETING DATE: May 4, 2009 AGENDA SECTION: Reports ITEM: 5. h. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: April 24, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Update status of Mill Creek RECOMMENDATION: No action required. BACKGROUND: 0 Staff will provide an update on the Mill Creek Project. S:Wdmins\RDA\RDA Admins 2009\011 Creek update 50409.doc 4/24/2009 3:33 PM ADMINISTRATIVE REPORT MEETING DATE: May 4, 2009 AGENDA SECTION: New Business ITEM: '~.a. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: April 22, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Agreement between the Bakersfield Redevelopment Agency, Mercy Housing C fliforni'a and Mercy Housing California XI, A California Limited Partnership to rehabilitate an affordable residential housing project (not to exceed $350,000) consisting of fifty-six (56) affordable housing family rental units at 1885 Madison Street, Bakersfield, CA (Ward 1). RECOMMENDATION: Staff recommends approval. BACKGROUND: On April 1, 2007, the non-profit submitted a proposal to rehabilitate the property located at 1885 Madison Street, Bakersfield, CA in the Southeast Bakersfield Redevelopment Project Area. The affordable housing residential project is before the Agency in the form of an Owner Participation Agreement (OPA). The site is currently operational and improved with 56 affordable units to benefit very low and low income residents on 4.67 acres. The property owner is Mercy Housing California and the operator/lessee is Mercy Housing California XI, A California Limited Partnership. Mercy Housing California is a California based non-profit with substantial experience in public/private partnerships for affordable housing. The estimated cost for the rehabilitation of the Madison Place Apartments is approximately $375,000 (RDA - $350,000 Low-Mod funds; Mercy Housing California XI, A California Limited Partnership - $25,000). The RDA contribution will be in a form of 55-year forgivable (declining balance) loan. The apartments include six one-bedrooms, twelve 2-bedrooms, thirty-one 3 bedrooms, and seven 4 bedrooms The area median income for the typical renter is between 40% to 60%. Some renters also receive assistance from section 8 vouchers. The scope of rehabilitation work will generally consist of: on-site work; exterior painting; repairs of stucco and siding of eight (8) residential buildings. It will also include constructing a new gutter system, rehabilitating the roof, providing new entry gates and unit railings; installing handicap accessibility improvements; replacing rubberized playground surface; installing a bike rack; and building an arbor to create an outdoor shady area. A map of the project site is attached. SAAdmins\RDA1RDA Admins 2009\Madison Place Apts-OPA.doc 4/22/2009 2:13 PM