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HomeMy WebLinkAbout09/14/09 RDA AGENDA BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REGULAR MEETING OF SEPTEMBER 14, 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 August 4, 2009 special meeting. b. Approval of department payments from July 30, 2009 to September 3, 2009 in the amount of $2,186,703.85. C. Amendment No. 1 to Agreement No. BRDA 08-018 with outside counsel, California Eminent Domain Law Group, APC for legal services ($40,000, total not to exceed $80,000) in the matter of redevelopment and/or other miscellaneous matters as directed by City Attorney for property located at 730 California Avenue. d. Amendment No. 1 to Agreement No. BRDA 08-019 with outside counsel, California Eminent Domain Law Group, APC for legal services ($50,000, total not to exceed $90,000) in the matter of redevelopment ar)d/or other miscellaneous matters as directed by City Attorney for property located at 825 13th Street. e. Exclusive Negotiation Agreement with AMCAL Multi-Housing Inc. for the development of 56 units of affordable senior housing units located at 408 and 424 20th Street. f. Assignment and Assumption Agreement for Agreement No. RA06-014 from Bakersfield College Foundation, and the Kern Community College District to Habitat For Humanity, Golden Empire for the purpose of constructing an affordable single-family home at 1301 Owens. Staff recommends approval of Consent Calendar items 3.a. through 3.f. 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. A Resolution of the Bakersfield Redevelopment Agency Recommending Extensions to Certain limits Relating to the Agency's Redevelopment Plans Pursuant to Health and Safety Code Sections 33333.2(c) and 33333.6(e). Staff recommends adoption of resolution. b. Amendment No. 1 to Agreement No. RA08-014 between the Bakersfield Redevelopment Agency and 19th Street Senior Plaza, LLC to develop an affordable residential housing project consisting of sixty-seven (67) senior rental units. Staff recommends approval. 8. AGENCY STATEMENTS 9. CLOSED SESSIONS a. Conference with Legal Counsel - Existing Litigation Closed; session pursuant to subdivision (a) of Government Code section 54956.9 for Bakersfield Redevelopment Agency vs. David Cross, et al. KCSC Case No. S-1500-CV- 265175 SPC b. Conference with Legal Counsel - Existing Litigation Closed session; pursuant to subdivision (a) of Government Code section 54956.9 for Bakersfield Redevelopment Agency vs. Whitlock Property, LLC, et al. KCSC Case No. S-1500-CV-265174 SPC RECESS TO CLOSED SESSION 10. CLOSED SESSION ACTION 11. WORKSHOPS 12. ADJOURNMENT Respectfully submitted, 4 t) e,- 9- Alan Tandy Executive Director A 4 ADMINISTRATIVE REPORT er 1 MEETING DATE: August 14, 2009 AGENDA SECTION: Consent Calendar ITEM: 3.a. TO: Bakersfield Redevelopment Agency APPROVED FROM: Pamela A. McCarthy, City Clerk DEPARTMENT HE DATE: September 14, 2009 GENERAL COUNSEL ` EXECUTIVE DIRECTOR SUBJECT: Minutes of the August 4, 2009 special meeting. RECOMMENDATION: Staff recommends approval of the minutes. BACKGROUND: A ADMINISTRATIVE REPORT MEETING DATE: September14, 2009 AGENDA SECTION: Consent Calendar ITEM: TO: Bakersfield RDA APPROVED FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD DATE: September 4, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Approval of department payments from July 30, 2009 to September 3, 2009 (irf the, amount of $2,186,703.85. RECOMMENDATION: Staff recommends approval of payments totaling $2,186,703.85. BACKGROUND: Individual payments exceeding $3,500 in the above total are listed below. Jim Alfter Cement Contractor $ 484,583.32 Mill Creek Linear Park concrete work eragreement #07-196 Krazan & Associates $ 3,557.50 Mill Creek project eragreement #07-416 Chicago Title Company $ 40,000.00 Housing assistance loan eragreement *RA 09-007 Chicago Title Company $ 61,550.00 Down payment, sewer and demolition assistance re: 1818 Lewis St. eragreement #FA 09-001 Rudnick Fence Company $ 33,817.49 Mill Creek Linear Park project and railing eragreement #08-089 GRC Associates, Inc $ 5,040.00 Professional services eragreement #BRDA 09-008 Kern Sprinkler Landscaping, Inc $ 13,033.90 Mill Creek Linear Park irrigation & landscape Rudnick Fence Company $ 45,405.00 Mill Creek Linear Park and railing eragreement #08-089 Ter Bedford's Concrete $ 9,420.00 Concrete work at 181.8 Lewis Street eragreement #09-010 WestAmerica Bank $ 42,505.98 Mill Creek Linear Park escrow in lieu of retention per agreement #09-031 A-C Electric $ 145,665.00 Traffic signal and lighting install at Mill Creek Linear Park per agreement #08-117 Elite Landscaping Inc $ 382,553.82 Mill Creek Linear Park canal refurbishment eragreement #09-031 S:\Richand\AP\ADMIN-BRDA\ADMIN-BRDA-AP-2010\ADMIN-BRDA-AP-09-14-09.doc 1 A ADMINISTRATIVE REPORT P G & E $ 19,601.02 Relocation/Rearrangement costs for 501 18 Street California Eminent Domain Law Group $ 4,395.75 Legal services re: eminent domain eragreement #BRDA 08-018 Brown Armstrong $ 8,046.00 Consultant services regarding 08/09 audit eragreement #09-033 Desmond, Marcello & Amster, LLC $ 18,966.25 Professional services eragreement #ED08-015 GRC Associates, Inc. $ 4,560.00 Professional services eragreement #BRDA 09-008 Maya Cinemas Holding Co LLC. $ 150,000.00 Reimbursement of underground utility costs eragreement #RA 09-009 Structure Cast $ 28,241.23 Precast bridge arch for Mill Creek Linear Park project W esco $ 95, 606.40 ANP Pole and base. Granite Construction $ 124,838.08 Construction of the Mill Creek Linear Park phase 5A canal facility per agreement #08/211 Cornerstone Engineering $ 4,346.00 Plans and specs regarding clearing and demolition of various properties Per agreement #BRDA 08-004 Mood 's Investors Services $ 7,500.00 Professional services Kern Pacific Construction $ 6,326.80 Construction of Mill Creek Linear Park phase 4 eragreement #08-210 California Eminent Domain Law Group $ 7,720.35 Legal services re: eminent domain eragreement #BRDA 08-018 California Eminent Domain Law Group $ 20,775.00 Legal services re: eminent domain eragreement #BRDA 08-019 Meyer Civil Engineering, Inc $ 9,479.00 Preparation of plans and specs for Mill Creek, Linear Park phase 4 & 5 Per agreement 08-044 Wells Faro Bank NA $ 399,125.87 Payment of principle, interest and annual fee on bank loan sales agreement S:\Richard\AP\ADMIN-BRDA\ADMIN-BRDA-AP-2010\ADMIN-BRDA-AP-09-14-09.doc 2 ADMINISTRATIVE REPORT MEETING DATE: September 14, 2009 AGENDA SECTION: Consent Calendar ITEM: TO: Bakersfield Redevelopment Agency ROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEA DATE: September 8, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Amendment No. 1 to Agreement No. BRDA 08-018 with outside counsel, California Eminent Domain Law Group, APC for legal services ($40,000, total not to exceed $80,000) in the matter of redevelopment and/or other miscellaneous matters as directed by City Attorney for property located at 730 California Avenue. RECOMMENDATION: Staff recommends approval. BACKGROUND: On September 26, 2008, Agency staff entered into an agreement for legal services with California Eminent Domain Law Group, APC. California Eminent Domain Law Group. specializes in redevelopment law matters, including eminent domain issues. Therefore, the firm was retained as outside counsel to handle redevelopment matters in the South Mill Creek project specifically 730 California Avenue. The Agreement was approved in an amount not to exceed $40,000.00. At this time, the City Attorney's office requests that a new contract be executed for an additional $40,000.00 in compensation so that outside representation may continue. The Southeast Redevelopment Project area has sufficient funds within its budget to accommodate this request for additional compensation. Currently, there are two separate condemnation matters underway with individual agreements for each case. S:\Admins\RDA\RDA Admins 2009\calif eminent domain law amend #1 08-018.doc 9/8/2009 8:23 AM ADMINISTRATIVE REPORT MEETING DATE: September 14, 2009 AGENDA SECTION: Consent Calendar ITEM: 3. J. TO: Bakersfield Redevelopment Agency ROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAi;~O /,4' 2,t DATE: September 8, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Amendment No. 1 to Agreement No. BRDA 08-019 with outside counsel, California Eminent Domain Law Group, APC for legal services ($50,000, total not to exceed $90,000) in the matter of redevelopment and/or other miscellaneous matters as directed by City Attorney for property located at 825 13th Street. RECOMMENDATION: Staff recommends approval. BACKGROUND: On September 26, 2008, Agency staff entered into an agreement for legal services with California Eminent Domain Law Group, APC. California Eminent Domain Law Group specializes in redevelopment law matters, including eminent domain issuds. Therefore, the firm was retained as outside counsel to handle redevelopment matters in the South Mill Creek project specifically 825 13th Street. The Agreement was approved in an amount not to exceed $40,000.00. At this time, the City Attorney's office requests that a new contract be executed for an additional $50,000.00 in compensation so that outside representation may continue. The Southeast Redevelopment Project area has sufficient funds within its budget to accommodate this request for additional compensation. Currently, there are two separate condemnation matters underway with individual agreements for each case. S:\Admins\RDA\RDA Admins 2009\calif eminent domain law amend #1.doc 9/8/2009 8:23 AM l- ADMINISTRATIVE REPORT MEETING DATE: September 14, 2009 7AGENDA SECTION: Consent Calendar ITEM: 3. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: September 1, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR y' SUBJECT: Exclusive Negotiation Agreement with AMCAL Multi-Housing Inc. for the dev lopment of 56 units of affordable senior housing units located at 408 and 424 201h Street. RECOMMENDATION: Staff recommends approval. BACKGROUND: In the Fall of 2007 AMCAL Multi-Housing Inc. (AMCAL) was selected for the development and construction of the Santa Fe Apartments, a 56-unit multi-family affordable housing project located within the Southeast Redevelopment Project Area. AMCAL has a successful background in obtaining complex financing and completing affordable housing projects within a specified time frame and defined scope of work. In April 2009, AMCAL assisted Agency staff in preparing a housing analysis for the State of California Department of Housing and Community Development to secure a Prop1C grant in the amount of $10,847,200 in which a portion of these grants funds will be used towards the cost of constructing a joint use parking garage for the project. AMCAL expressed an interest and willingness to negotiate with the Agency for the development of a new affordable senior housing project on City-owned property located at 408 and 424 201h Street. In addition, during the economic downturn, AMCAL has maintained success in obtaining complex financing and completing affordable housing projects within specified time frames. Staff has prepared an Exclusive Negotiation Agreement between the Bakersfield Redevelopment Agency and AMCAL Multi-Housing Inc., to cover a period of 180 days with an option for a 90 day extension from the date of execution of the Agreement. During this period the deal points for the project will be negotiated and will be incorporated into a Disposition and Development Agreement which will include the specific scope of the development, Agency financial participation requirements, a schedule of performance, evidence of private financing, and required insurance. The current scope of the project consists of 56 units of affordable senior rental housing in the Old Town Kern-Pioneer Redevelopment Project Area. AMCAL Multi-Housing Inc. is a California based company which has focused on the affordable housing sector, including family "workforce" and senior apartments over the past 30 years. During the past several years, AMCAL has developed or is currently in the planning process of building and developing approximately 1,000 housing units. In addition they have a successful track record in obtaining state and federal tax credits in California in excess of $100,000,000. S:Wdmins\RDA\RDA Admins 2009\AmcalENA 20th.doc 911/2009 9:36 AM r, 4 ADMINISTRATIVE REPORT MEETING DATE: September 14, 2009 ]AGENDA SECTION: Consent Calendar ITEM: TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: September 2, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR D SUBJECT: Assignment and Assumption Agreement for Agreement No. RA06-014 from Aakersfield College Foundation, and the Kern Community College District to Habitat For Humanity, Golden Empire for the purpose of constructing an affordable single-family home at 301 Owens. RECOMMENDATION: Staff recommends approval and authorization to enter into a single-lot agreement with Habitat for Humanity. BACKGROUND: In September 2005, the Agency entered into an agreement with the Bakersfield College Foundation (BCF), and Kern Community College District (District) to construct affordable single family homes on three Agency-owned tax default properties located at 339 South Brown Street, 124 Hayes Street, and 301 Owens Street. As part of the Southeast Bakersfield Infill Housing Program, BCF took title of the lots and worked with the District to build three affordable homes and sell them to qualified low income households. BCF was to build or cause to be built three affordable homes within 36 months of receiving title to the properties. A key element of the Agreement required Bakersfield College to train unskilled individuals in the different aspects of housing construction. An affordability period of 45 years applies to these homes. BCF successfully completed and sold two homes to low and moderate income persons within 36 months, however, was unable to complete the third home to be located at 301 Owens Street, due to the economic downturn and steep decline in the housing market. BCF borrowed construction funds up to $100,000 per home through the Agency's CaIHFA Southeast Bakersfield Infill Program. The CaIHFA funds have been repaid to the Agency for the two completed homes with no construction funds drawn on 301 Owens. Agreement No. RA05-005 allows for the assignment, transfer or sale of the property with Agency written consent. Habitat for Humanity, Golden Empire (Habitat) has agreed to accept the Assignment and assume the obligation to construct and sell an affordable housing unit at 301 Owens Street. Habitat also understands and agrees the Agency has no funding available for construction to Habitat under Agreement RA 05-005 and that the Agency's sole participation in this transaction is the contribution of the parcel. Habitat will be executing a single-lot agreement with the Agency to ensure the construction and sell of the home to a low-income person or family. S:\Admins\RDA\RDA Admins 2009\BC CASA AssigntoHabitatRDAadmin.doc 9/212009 2:30 PM U O:~ P ADMINISTRATIVE REPORT IF IF MEETING DATE: September 14, 2009 TG ENDA SECTION: Reports M: a . TO: Bakersfield Redevelopment Agency OVED FROM: Donna L. Kunz Deputy Executive Director DEPARTMENT HEAD~~'C~,~ DATE: September 4, 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:1Admins\RDA1RDA Admins 20091Baker street update 091409.doc 9/4/200911:30 AM A O p o +r~ Ste; It ADMINISTRATIVE REPORT MEETING DATE: September 14, 2009 AGENDA SECTION: Reports ITEM: 5. b, TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAI~- 'k DATE: September 4, 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 091409.doc 9/4/2009 11:33 AM ADMINISTRATIVE R SPORT MEETING DATE: September 14, 2009 AGENDA SECTION: New Business ITEM: TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: September 1, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: A Resolution of the Bakersfield Redevelopment Agency Recommending Extensions to Certain Limits Relating to the Agency's Redevelopment Plans Pursuant to Health and Safety Code Sections 33333.2(c) and 33333.6(e). RECOMMENDATION: Staff recommends adoption of resolution. BACKGROUND: On September 23, 2009, the Bakersfield City Council will consider amendments to extend the life of the redevelopment plan for each of the Agency's three project areas: Downtown, Old Town Kern-Pioneer, and Southeast Bakersfield. Under Health & Safety Code Sections 33333.2 © and 33333.6 (e), when a redevelopment agency is required to make a payment into its county's Educational Revenue Augmentation Fund (ERAF) for fiscal year 2003-04, California Community Redevelopment Law (CRL) allows redevelopment plans to be amended to extend by one year the time limit on the repayment of indebtedness and the time to receive tax increment and repay indebtedness. In addition, CRL provides that when an agency is required to make an ERAF payment during fiscal years 2004-05 and/or 2005-06, the time limit of a plan's limit of effectiveness and the time limit on the repayment of indebtedness and receipt of tax increment funds can be extended. This is contingent upon the time limit for the effectiveness of a redevelopment plan being either; 1) ten years or less from the last day of the fiscal year in which a payment is made, or 2) greater than ten and less than 20 years from the last day of the fiscal year in which a payment is made, upon the making of certain findings. Because the Agency made payments to the County of Kern ERAF pursuant to the relevant sections of the CRL during fiscal years 2003-04, 2004-05, and 2005-06, the three plans can be amended by Council action as follows: Downtown Redevelopment Proiect - increase by three years the limits on effectiveness and the time to pay indebtedness and receive tax increment for the original area and each of the added areas of the plan; Old Town Kern-Pioneer Project: extend the permitted limits by one year; and Southeast Bakersfield Proiect: extend the permitted limits by one year. S:\Admins\RDA\RDA Admins 2009\Reso Extending Limits Relating to ERAF.docx 9/1/2009 10:41 AM ADMINISTRATIVE REPORT Page 2 By approving this resolution, the Agency recommends extensions to certain limits relating to the Agency's redevelopment plans, recommends that the legislative body (City Council) adopt an ordinance for each of the redevelopment plans, and makes appropriate findings for the amendments. S:Wdmins\RDA\RDA Admins 2009\Reso Extending Limits Relating to ERAF.docx 9/1/200910:41 AM F F,Of1 "tSif ADMINISTRATIVE REPORT 0 MEETING DATE: September 14, 2009 AGENDA SECTION: New Business ITEM: "7• b. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: September 3, 2009 GENERAL COUNSEL _ EXECUTIVE DIRECTOR ' SUBJECT: Amendment No. 1 to Agreement No. RA08-014 between the Bakersfield Redevelopment Agency and 19th Street Senior Plaza, LLC to develop an affordable residential housing project consisting of sixty-seven (67) senior rental units. RECOMMENDATION: Staff recommends approval. BACKGROUND: On August 25, 2008, the Bakersfield Redevelopment Agency approved an Owner Participation Agreement (OPA) with Bakersfield Senior Plaza, LLC (Owner) for the Agency to contribute $3,650,000 towards the cost of development of an affordable senior housing project and a two-story parking structure. The OPA provides $1,000,000 of this amount to be reimbursed in escrow to the Owner for costs associated with the property acquisition, and for costs associated with architectural, engineering, city fees, and other approved pre-development costs. The remaining assistance in the amount of $2,650,000 can be used by the Owner for construction assistance and is to be reimbursed on a pro-rata share (48.28%) as provided in the Agency note. As part of escrow closing, Owner received the $1,000,000 and used it towards paying off the $750,000 balance of the land note and for expenses incurred for architectural and engineering costs. The Owner is now requesting release of additional Agency funds that were agreed to in the OPA. The Owner has asked for reimbursement at the agreed upon pro-rata share for costs that have been paid by the Owner for site grading work and to complete other engineering and utility work required for the site development. The language in the OPA currently allows for the assistance monies to be reimbursed to the Owner towards his construction expenses on a pro-rata basis once a construction loan is secured. It does not address reimbursement for construction work performed on the project in advance of securing the construction loan. In order for staff to reimburse the Owner, it is necessary to amend the existing OPA by adding language that would allow this. The Owner has submitted loan applications to three different lenders for construction financing. He has received positive feedback from two of them and expects to receive a conditioned approval within the next few weeks. One of the lenders has visited the site and staff concerning the project. The Owner has S:Wdm1ns\RDA1RDA Admins 2009119th St OPA #1 Admin Rpt.Doc 9/3/200910:20 AM ADMINISTRATIVE REPORT Page 2 advanced significant costs to date and would like to keep moving forward on the site improvements while he waits for loan approval. The Owner has asked for reimbursement to be able to do so. To date the Owner has expended an additional $471,342.22. Draws submitted for construction expenses are paid on a pro rata basis as allowed in the Agency note. A payment in the amount of $368,582.26 was released directly to the City of Bakersfield for the required development permit fees leaving a balance of $2,281,417.74 available from the construction funds approved in the agreement. Staff is seeking approval of the attached amendment to allow for reimbursement of these costs in the amount of $227,564.02 which will give the authority to continue reimbursements for direct site development costs at the previously approved pro rata basis. S:Wdmins\RDA\RDA Admins 2009\1 9th St OPA #1 Admin Rpt.Doc 9/31200910:20 AM A ADMINISTRATIVE REPORT BAKERSFIELD REDEVELOPMENT AGENCY MEETING DATE: September 14, 2009 AGENDA SECTION: Closed Session ITEM: GJ, a, TO: Bakersfield Redevelopment Agency APPROVED FROM: Virginia Gennaro, General Counsel DEPARTMENT HEAD DATE: September 1, 2009 GENERAL COUNSEL EXECUTIVE DIRECTOR z/ SUBJECT: Conference with Legal Counsel - Existing Litigation Closed session pursuant to subdivision (a) of Government Code section 54956.9. (Two Cases.) • Bakersfield Redevelopment Agency vs. David Cross, et al. KCSC Case No. S-1500-CV-265175 SPC • Bakersfield Redevelopment Agency vs. Whitlock Property, LLC, et al. KCSC Case No. S-1500-CV-265174 SPC BW:vl S:\Edcd\RDA(CDDA)\09-10 RDA Admins\ClSessAdmin9-14-09ExistLit.doc