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HomeMy WebLinkAbout06/01/09 RDA AGENDA s .G BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REGULAR MEETING OF JUNE 1, 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 May 4, 2009 regular meeting. b. Approval of department payments from April 24, 2009 to May 21, 2009 in the amount of $445,313.43. Staff recommends approval of Consent Calendar items 3. a. and 3. b. 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. Amendment No. 1 to Agreement No. RA08-010 with Baker Street Village, LLC, and BSV Phase 2, LLC, to extend Agency Construction Assistance for the construction of 37 residential units at Phase 1 of the project located at 706 Lake Street. Staff recommends approval. b. Amendment No. 1 to Agreement No. BRDA08-004 with Cornerstone Engineering for $12,000 to provide additional engineering services for the preparation of bid packages for two demolition projects in the area of the Mill Creek Linear Park. Staff recommends approval. c. Approve Certificate of Conformance between the Bakersfield Redevelopment Agency and United States Government (the Owner) for property located at 510 19"' Street. Staff recommends approval. d. Agreement between the Bakersfield Redevelopment Agency and Watoddy Collins for For a housing assistance loan in an amount not to exceed $40,000 for acquisition of a new manufactured home located at 1818 Lewis Street in the Filson Street Area Targeted Neighborhood Revitalization Program within the Southeast Bakersfield Redevelopment Project Area. Staff recommends approval. e. Proposed Budget for the Bakersfield Redevelopment Agency (RDA) - Fiscal Year 2009-2010. Staff recommends approval. 8. AGENCY STATEMENTS 9. CLOSED SESSIONS 10. WORKSHOPS 11. ADJOURNMENT Respectfully submitted, l Tandy Executive Director BA O~ ~covoS ADMINISTRATIVE REPORT IF MEETING DATE: June 1, 2009 AGENDA SECTION: Consent Calendar ITEM: 3.a. TO: Bakersfield Redevelopment Agency APPROVED FROM: Pamela A. McCarthy, City Clerk DEPARTMENT HEAD 'n DATE: May 26, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Minutes of the May 4, 2009 regular meeting. RECOMMENDATION: Staff recommends approval of the minutes. BACKGROUND: BA O~ rCpW14 ADMINISTRATIVE REPORT c~ :r 6~ MEETING DATE: June 1, 2009 AGENDA SECTION: Consent Calendar ITEM: 3 b. TO: Bakersfield RDA APPROVED FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD DATE: May 22, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Approval of department payments from April 24, 2009 to May 21, 2009 in th amount of $445,313.43. RECOMMENDATION: Staff recommends approval of payments totaling $445,313.43. BACKGROUND: Individual payments exceeding $3,500 in the above total are listed below. Townsend Public Affairs $ 5,130.00 3r Payment for Professional Services For The Month of December 2008 Per Agreement BRDA 08-021. City of Bakersfield $ 368,582.26 Building Permit Fees for 501 19 Street, Senior Housing Project. Pacific Gas and Electric CFM/PPC $ 7,200.84 Payment for Installation of Traffic Controller Circuit located at 501 18 Street. California Eminent Domain Law Group $ 5,125.40 7 Payment for Professional Services For The Month of March 2009 Per Agreement BRDA 08-018 & BRDA 08-019. California Redevelopment Association $ 4,900.00 Annual Membership Dues. Aleshire & W nder LLP $ 6,625.00 4 Payment for Professional Services through March 31, 2009. Overland Pacific & Cutler $ 10,465.00 13 Payment For Professional Services For The Mill Creek Mixed Project. Arts Council of Kern Count $ 6,250.00 3r and Final Payment "Dressing U Chester" Per Agreement BRDA 08-001. Meyer Civil Engineering Inc $ 11,036.60 19 Payment For Professional Services For The Mill Creek Project. S:Utichard\AP\ADMIN--BRDA\ADMIN--BRDA-AP-06-01-09.doc 1 I1AJ\ AP i ADMINISTRATIVE REPORT gym., un MEETING DATE: June 1, 2009 AGENDA SECTION: Reports ITEM: $ , TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: May 26, 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:\Admins\RDA\RDA Admins 2009\Baker Street update 060109.doc 5/26/2009 12:18 PM lldl~j -496 s ADMINISTRATIVE REPORT MEETING DATE: June 1, 2009 AGENDA SECTION: Reports ITEM: 15. b. TO: Bakersfield Redevelopment Agency APPROVED L~ FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAC( , DATE: May 26, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Update status of Mill Creek RECOMMENDATION: No action required. BACKGROUND: Staff will provide an update on the Mill Creek Project. S:\Admins\RDA\RDA Admins 2009\Mill Creek update 060109.doc 5/26/2009 12:20 PM ?,;ff ADMINISTRATIVE REPORT MEETING DATE: June 1, 2009 AGENDA SECTION: New Business 7 ITEM: TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEA 4izE DATE: May 21, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Amendment No. 1 to Agreement No. RA08-010 with Baker Street Village, LLC, and BSV Phase 2, LLC, to extend Agency Construction Assistance for the construction of 37 residential units at Phase 1 of the project located at 706 Lake Street. RECOMMENDATION: Staff recommends approval. BACKGROUND: On August 25, 2008, the Bakersfield Redevelopment Agency approved an Amendment and Partial Assignment of the 2006 Disposition and Development Agreement Containing Covenants Affecting the Use and Occupancy of Real Property at Baker Street Village - Phase 2. The agreement amended the original DDA to allow the original development group to sell two phases (Phase 2 and 4) of the project to BSV Phase Il, LLC. The original development group, Baker Street Village, LLC, would still be responsible for the development of Phases 1 and 3. Phase 1 was under construction by Baker Street Village, LLC, but was halted due to termination of the construction contract between the developer and the construction company. Phase 1 is the'h block south of Lake Street, east of Baker Street and west of Kern Street. This portion of the project includes 24 town homes, and 13 residential lofts (37 total units) above the 9,000 sq. ft. of commercial space fronting Baker Street. A July 2010 completion date is anticipated. Baker Street Village, LLC has been actively working with a new contractor to re-start the project. The proposed amendment extends the expiration date to May 30, 2010 of Agency Construction Cost Assistance revising the existing June 30, 2009 date. Provisions of the previously approved grant to the developer for $1,635,000 of HOME Investment Partnership monies do not change. These funds will to be used towards the residential construction of 31 affordable units restricted to 60-80% of median income that will be located in Phase 1. Staff recommends approval of this amendment to allow for the completion of this essential affordable housing project located in the Old Town Kern-Pioneer Redevelopment Project Area. S:1Admins\RDA\RDA Admins 2009\Baker St amendment Phase 1.doc 5/21/2009 10:22 AM 1i A J : ADMINISTRATIVE REPORT MEETING DATE: June 1, 2009 AGENDA SECTION: New Business ITEM: 'I• b. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: May 21, 2009 GENERAL COUNSEL 116e~_ EXECUTIVE DIRECTOR SUBJECT: Amendment No. 1 to Agreement No. BRDA08-004 with Cornerstone Engi er' g for $12,000 to provide additional engineering services for the preparation of bid packages for two demolition projects in the area of the Mill,Creek Linear Park. RECOMMENDATION: Staff recommends approval. BACKGROUND: On March 3, 2008, the Bakersfield Redevelopment Agency entered into Agreement No. BRDA08-004 with Cornerstone Engineering for $39,000 to provide engineering services for the preparation of bid packages for several demolition projects on Agency owned parcels. The City Council's recent acquisition of Catholic Charities, 525 18th Street, and the pending acquisition of Eston's Warehouse, 825 13th Street, has resulted in the need for additional engineering services to prepare two bid packages for demolition projects. Both sites are located along Mill Creek Linear Park. Cornerstone will prepare the two separate bid packages to City of Bakersfield standards, coordinate asbestos testing, advertise bid packages, conduct pre-bid meetings, and evaluate proposals while working closely with the City. These additional services have resulted in additional costs in an amount of $12,000. Staff is recommending that the Agency approve the amendment for $12,000 for additional engineering services required for these projects located in the Old Town Kern-Pioneer and Southeast Bakersfield Redevelopment Project Areas. Compensation for all work, services, or products called for under this Agreement shall not exceed a total payment of $51,000. S:\Admins\RDA\RDA Admins 2009\Cornerstone Engineering amend#1.doc 5/21/2009 10:03 AM li 11~~ ADMINISTRATIVE REPORT rn MEETING DATE: June 1, 2009 AGENDA SECTION: New Business ITEM: , C TO: Bakersfield Redevelopment Agency APPROVED, FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: May 22, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Approve Certificate of Conformance between the Bakersfield Redevelopment en y and the United States Government (the "Owner) for property located at 510 19th Street. RECOMMENDATION: Staff recommends approval. BACKGROUND: The General Services Administration of the United States Government has announced that the Federal Courthouse will be constructed in downtown Bakersfield. The courthouse project is being funded from the 2009 American Recovery and Reinvestment Act (the Federal economic stimulus program recently passed by Congress). It will be constructed in the central downtown business district on a site donated by the City of Bakersfield at 19th Street, between R and S Streets. Keeping with the GSA's "Design Excellence Program" the architecture will be compatible with the new Mill Creek linear park area being developed by the City adjacent to the court house site. When complete, the courthouse will be approximately 33,400 square feet, with an estimated cost between $17 and $22 million dollars. Prior to transferring the property the General Services Administration working as agent for the United States government has requested the Certificate of Conformance be approved by the Redevelopment Agency to certify that the federal government (the "Owner') is a sovereign and federal governmental entity and that it is not subject to the Agency's jurisdiction, including, but not limited to the Agency's powers of eminent domain, tax-increment financing and building design standards. The Certificate of Conformance is condition precedent to the transfer of the property which will occur in July, 2009. S:\Admins\RDA\RDA Admins 2009\GSACertificateofConformance6.1.2009.doc 5/22/2009 3:44 PM ADMINISTRATIVE REPORT MEETING DATE: June 1, 2009 AGENDA SECTION: New Business ITEM: 7. of TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: May 26, 2009 GENERAL COUNSEL 14V L~~( EXECUTIVE DIRECTOR SUBJECT: Agreement between the Bakersfield Redevelopment Agency and Watoddy Collins for a housing assistance loan in an amount not to exceed $40,000 for acquisition of a new manufactured home located at 1818 Lewis Street in the Filson Street Area Targeted Neighborhood Revitalization Program within the Southeast Bakersfield Redevelopment Project Area. RECOMMENDATION: Staff recommends approval of the loan and authorize the Executive Director or his designee to execute all necessary agreements and documents and make minor revisions if required. BACKGROUND: During Fiscal Year 2005-06 the Redevelopment Agency confirmed and the City Council authorized the use of approximately $1,000,000 in Southeast Redevelopment Project Area tax increment funds to implement the Filson Street Area Targeted Neighborhood Revitalization Program. Staff developed a three year program for a five block area bounded by Brook Street to the south, Hale Street to the east, E. Planz Road to the north and Cottonwood Road to the west. The area is a blighted tract with 132 structures, ranging from wood frame commercial buildings, some new and older mobile home units and deficient wood frame single family homes. 21 vacant lots are scattered throughout the neighborhood with various amounts of debris, abandoned vehicles and substandard structures. On January 7, 2008 the Bakersfield Redevelopment Agency formally approved the Filson Street Targeted Neighborhood Revitalization Housing Programs consisting of the Single Family Rehabilitation Loan Program; Front Porch Loan Program; Foreclosure Policy; Down payment Assistance; and Downpayment Assistance for Manufactured Homes. On September 23, 2008, the RDA authorized an increase in the downpayment assistance from $35,000 to $50,000 for the Housing Urban Bakersfield and the Southeast Targeted Area Neighborhood programs. On October 13, 2008, the RDA approved a Sewer Connection Grant Program up to $10,000 and a Demolition Grant Program up to $8,000. Over the past 18 months staff has experienced difficulty marketing the program due to issues of credit availability for low and very low income persons, job instability, the decline of the real estate housing market, and unprecedented times when upheaval in world financial markets has severely impaired the ability and willingness of lending institutions to make loans to even the most credit worthy customers. J:\Admins\RDA\RDA Admins 2009\1818Lewisloanrequest(1).doc 5/26/2009 11:49 AM ADMINISTRATIVE REPORT Page2 Mr. Collins property at 1818 Lewis Street was identified by City Code Enforcement staff as one of ten locations in the area with the most serious health and safety violations. The property could not be brought up to code standards and therefore was targeted for condemnation and demolition. Staff has worked diligently with Mr. Collins over the past year to qualify for a housing assistance loan for the acquisition of a manufactured home. During this time Mr. Collins was also working with a loan officer from Bank of America to secure the necessary primary loan in order to qualify for the down payment assistance program for the manufactured home. After more than twelve months of working with Mr. Collins to secure the primary loan staff was informed by the loan officer that final approval of Mr. Collins loan request was denied by the loan review committee. In today's real estate market it is apparent that Mr. Collins will be unable to qualify for the required primary loan, therefore, staff is recommending approval of a small primary loan from Agency funds to complete the transaction. Amerinational Services, Inc., a loan processing agency which services citywide Economic and Community Development down payment assistance loan programs will collect and monitor the loan until the debt is paid off. Total Agency funds committed to this single family residence would not exceed $111,265 which is comparable to the Agency's commitment on a per unit basis in the Parkview Cottages and the Baker Street Mixed Use Projects. Pictures of Mr. Collins residence and a memorandum recommending improvements to the process to ensure future transactions are handled efficiently are provided for your information. J:Wdmins\RDA\RDA Admins 2009\1818 Lewisloanrequest(1).doc 5/27/20093:41 PM ADMINISTRATIVE REPORT MEETING DATE: June 1, 2009 AGENDA SECTION: New Business ITEM: i. e. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEA 1..,t DATE: May 26, 2009 GENERAL COUNCIL EXECUTIVE DIRECTOR SUBJECT: Proposed Budget for the Bakersfield Redevelopment Agency (RDA) - Fiscal Yea (00 -10 RECOMMENDATION: Staff recommends the Agency authorize the transmittal of the Fiscal Year 2009-10 RDA budget to the City Council for approval. BACKGROUND: Attached is the proposed Bakersfield Redevelopment Agency Budget for Fiscal Year 2009-10, which has been prepared in accordance with the Agency's goals and objectives. There continues to be significant redevelopment activity in each of the three project areas with several projects in various stages of planning, negotiation, demolition or construction. The following is a summary of the proposed budget for Fiscal Year 2009-10 in addition to key highlights of redevelopment project activity. Redevelopment Aaencv Proposed Budoet - Fiscal Year 2009-10 The Redevelopment Agency budget is comprised of nine separate funds. Each of our three redevelopment project areas has three distinct funds; an Operating fund, a Housing Set Aside fund and a Debt Service fund. California Redevelopment Law requires redevelopment project area operating funds be kept separate from those of other areas and that Tax Increment Revenues are only used within the area of which it was generated. The Bakersfield Redevelopment Agency may, however, use its Housing Set Aside monies anywhere deemed necessary within the City, provided an "of benefit" finding is made by the governing body. Highlights of the redevelopment budget proposed for Fiscal Year 2009-10 include the following appropriations: $125,000 for the Downtown Enhancement Program, including lighting, banner replacement, maintenance, and trolley service; $50,000 for professional and consulting services for Old Town Kern Redevelopment Projects; $300,000 for affordable housing projects in the Old Town Kern Redevelopment area; $200,000 for outside legal counsel and relocation services for Southeast Redevelopment projects; $340,000 for affordable housing projects within the Southeast Redevelopment area; $500,000 Cal HFA loan for the Residential Development Loan Program for infill housing; and $800,000 for acquisition, appraisals, demolition, and site clearance for redevelopment projects in Southeast Bakersfield. In addition, there are three Capital Improvement Projects planned for Fiscal Year 2009-10: 1) $350,000 for design of parking lot improvements at 420 201h Street east of Mill Creek Linear Park; 2) $500,000 for the Mill Creek Linear Park Plaza development on 17th Street to 18th Street; and S:\Admins\RDA\RDA Admins 2009\RDA FY09-10 Budget Admin.doc 5/26/2009 9:51 AM ADMINISTRATIVE REPORT Page2 3) $800,000 for infrastructure improvements including streetlights, curbs, gutters, and streets from the canal to "S" Street in South Mill Creek. In addition to the Capital and Operating Budgets, the Debt Service Budgets include appropriations for contractual long term debt, including the payment of principal and interest on Redevelopment Tax Allocation Bonds, Certificates of Participation, Notes, Interagency loans, Section 108 loans for Baker Street and Mill Creek South, the I-Bank loan for Mill Creek Linear Park and 2009 RDA Bonds Series A, B, C,&D. Focus on Implementation of Redevelopment Projects in the Mill Creek Area FY 2009-10: There are 6 major redevelopment projects underway in the Mill Creek Area currently under construction or moving toward the implementation phase during fiscal year 2009-10. These include the completion of the Mill Creek Linear Park project with the remaining canal and park improvements in phases 2,4, and 5A and 5B. The grand opening ceremony of Central park was held in late May 2009 and final construction of the park and canal improvements is targeted for late Summer, 2009. The Mill Creek Courtyard project includes 57 mid-rise apartments with construction anticipated to begin September 2009. The Creek View Villas is the construction of 36 upscale townhomes and the Village at Mill Creek includes 65,000 square feet of commercial space for retail, restaurants, community events, and neighborhood services. The Chelsea Apartments DDA has been approved for 70 mid-rise garden style affordable rental units with construction anticipated to start September 2009. The final area of focus includes the 19th Street Plaza which is a mixed use project adjacent to the Mill Creek Linear Park. Amenities for this project include office, commercial and residential space. On-aoina Redevelopment Activity: The Parkview Cottaaes - Sina/e Family Housing Protect (OTK-P) The Parkview Cottages consists of 74 single-family housing units, ranging from 1,280 to 1,820 square feet. Each unit will be two stories and have a two/three car garage. Currently, home buyers occupy 30 units and 15 additional units are pre-constructed and available for sale. Due to the unstable real estate market sales have slowed considerably over the past several months. Staff is currently assisting the developer in exploring alternatives to the existing home buyer program such as a lease to own option managed by a qualified non-profit. Staff participated in a community meeting on May 14, 2009 with the current home-owners to discuss these options. Baker Street - Old Town Kern Mixed Use Protect (OTK-P) Foundation work and grading has been completed for Phase I of the project on the half block east of Baker Street south of Lake Street. When finished, this phase will include 24 three-story town homes, 13 residential lofts and 9,000 square feet of commercial space on Baker Street. The residential and commercial developments are for-sale units. Neighborhood type services are anticipated for the commercial space. There has been a slight delay in construction due to the developer changing General Contractors and shifting to an owner-builder development format utilizing existing subcontractors where feasible. Construction began on schedule in May, 2009 with completion anticipated in May, 2010. The next three phases will include more residential and commercial units, and 41,000 square feet of new commercial space, such as a grocery store and pharmacy as possible key anchors. To assure wage compliance, the Agency approved a contract with an outside firm to monitor construction draws and wages paid to the various trades. Total project value is approximately $35 million. S:\Admins\RDA\RDA Admins 2009\RDA FY09-10 Budget Admin.doc 5/26/20099:51 AM ADMINISTRATIVE REPORT Page 3 19th Street Plaza (OTK-P) This proposed mixed use project adjacent to the Mill Creek Linear Park will include office, commercial, and residential space. The developer envisions approximately 35,000 square feet of office and commercial space with a restaurant in a four level building adjacent to the canal; 67 one and two-bedroom units of affordable senior rental housing in a three story structure; a 3,000 square foot food court; and an 132 space parking garage. The RDA has entered into an Owner Participation Agreement with Southwest Consulting, Inc., to build the project on approximately 2.5 acres of vacant land east of the canal between 18th and 19th Streets, 501 -19th Street. Grading was completed as scheduled at the end of May 2009. Construction of the senior housing component should be completed in April 2010. Southeast Neighborhood Revitalization Prolect - (SE) Staff has developed a three-year comprehensive targeted neighborhood revitalization program. This program includes the addition of one dedicated Code Enforcement position, partial clerical support, equipment, and supplies to provide various code enforcement activities, such as removal of junk cars and the demolition of substandard structures. The program focuses on a five-block area bounded by Brook Street to the south, Hale Street to the east, E. Planz Road to the north and Cottonwood Road to the west. Housing Programs currently available for low income residents not exceeding 120% of the area median income include a targeted owner-occupied housing, no interest-deferred rehabilitation loan to $40,000 per unit. Qualifying homeowners occupying substandard homes with clear title to their property may be eligible for down payment assistance up to $50,000 to purchase or construct a new home on their existing lot or purchase a manufactured home. A front porch grant program is also available to improve the appearance of the exterior of a residence. The maximum project cost cannot exceed $5,000 and the program requires a matching contribution of 10% of the total project cost from the applicant. In addition, the Redevelopment Agency approved a sewer grant program not to exceed $10,000 and a demolition grant up to $8,000. The program is funded with Southeast Tax Increment funds. Over the past year staff worked diligently with the property owner at 1818 Lewis Street to guide him through the application process in an effort to replace a dilapidated residence with numerous building code violations, health hazards and safety issues. A new 1,240 sq. foot three bedroom two bath manufactured home has been installed, along with a new driveway and sidewalk. Another applicant recently closed escrow on the purchase of an existing property on Filson Street and Habitat for Humanity recently completed construction of a new home at 1812 Filson Street. Due to numerous economic challenges associated with this area, staff plans to reevaluate the program. Habitat for Humanity -1812 Filson (SE) On May 5, 2008, the Bakersfield Redevelopment Agency approved an agreement to sell a vacant parcel located at 1812 Filson Street to Habitat. This parcel is located within the 5-block Southeast Targeted Neighborhood program area and was purchased by the Agency through a tax default sale. Habitat for Humanity volunteers and the prospective new homeowner completed the home, and a dedication service was held on April 5, 2009. South Mill Creek Plaza Cinema Complex (SE) South Mill Creek Plaza is a mixed-use lifestyle, ground-up development on approximately 7 acres. The site is designed to accommodate a total of 89,000 square feet of space, featuring 28,000 sq. feet of entertainment related retail, restaurant space and a 61,000 square feet state of the art 16 screen, 2,600 seat multiplex cinema. Maya Cinemas North America, the developer, plans to develop the project south of Rabobank Arena and Convention Center, and south of the railroad tracks between California Avenue, "M" Street and the Kern Island Canal. Maya Cinemas North America and D.W. Sivers have acquired all the property necessary for the development of the $32 million dollar project and will take 24 months to construct and stabilize. S:\Admins\RDA\RDA Admins 2009\RDA FY09-10 Budget Admin.doc 5/26/20099:51 AM ADMINISTRATIVE REPORT Page 4 The South Mill Creek Plaza will be a major factor in reducing blight in the area and will provide the Southeast Redevelopment Project Area with an anchor tenant that will be a catalyst for additional development along California Avenue. The ground breaking ceremony was held on July 29, 2008. Construction began on the Maya Cinema phase of the project in September 2008, with completion anticipated in the fall of 2009. In addition, construction on the 28,000 sq. feet of entertainment related retail, restaurant space is estimated to begin in March 2010, with completion by December 2010. Southeast Bakersfield Infill Housing Protect (SE) The City was awarded a $500,000 CaIHFA loan to build affordable housing on scattered lots in southeast Bakersfield. The RDA assumed all rights and obligations of the loan on February 26, 2003. Round four of the infill housing project began in Fall of 2006. The agreement period will be in place for two years and the contractor will be obligated to complete at least four homes within the two-year period. To date, seventeen new homes have been constructed. Hybrid has completed the construction of a home at 226 East 6th Street and has begun construction on their third home located at 1213 Murdock Street. Due to the current economic climate, construction has slowed down at 1213 Murdock. The anticipated completion date is September 2009. Bakersfield College Foundation Construction Alliance for Student Achievement (CASA) Program The Redevelopment Agency approved the donation of three residential lots to Bakersfield College Foundation (BCF) to build infill affordable homes in the Southeast. The CASA program enhances job opportunities among low-income residents while assuring developers and construction firms have an adequate skilled labor pool to meet market demands for affordable housing. This activity addresses the demand for skilled craftsmen/women in the construction field, and provides job training skills among minority populations of Bakersfield. The CASA program is participating in the Southeast Bakersfield Infill Housing Project. BCF took title to the lots located at 339 Brown, 124 Hayes and 301 Owens Streets in November, 2005. The 1St home located at 339 Brown Street has been completed and sold to a low-income family. The 2"d home located at 124 Hayes Street closed escrow at the end of March 2009. Madison Place Apartment Rehabilitation (SE) The RDA approved an Owner Participation Agreement (OPA) on May 4, 2009 for the use of $350,000 to rehabilitate 56-units at 1885 Madison Street which is located within the Southeast Bakersfield Redevelopment Area. The site is currently operational and benefits very low and low income residents (between 40% to 60% of the area median income) on 4.67 acres. The property owner is Mercy Housing California and the operator/lessee is Mercy Housing California XI, A California Limited Partnership. The estimated cost for the rehabilitation of the Madison Place Apartments is approximately $375,000 (RDA - $350,000; 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 scope of work will generally consist of on-site exterior work such as: installing new entry gates and unit railings, painting; repairing of stucco, installing handicap accessibility improvements and siding for eight (8) residential buildings, landscaping and miscellaneous roof work. The Madison Place Apartment rehabilitation is expected to occur by end of summer. S:\Admins\RDA\RDA Admins 2009\RDA FY09-10 Budget Admin.doc 5/26/20099:51 AM