HomeMy WebLinkAbout01/19/10 RDA AGENDA
u o BAKERSFIELD REDEVELOPMENT AGENCY AGENDA
SPECIAL MEETING OF JANUARY 19, 2010
Conference Room A,
City Hall North
1600 Truxtun Avenue
4:00 p.m.
SPECIAL MEETING
1. ROLL CALL
2. PUBLIC STATEMENTS
3. CONSENT CALENDAR
a. Minutes of the January 4, 2009 regular meeting,
b. Approval of department payments from December 22, 2009 to January 7,
2010 in the amount of $56,056.15.
C. Resolution regarding the use of Housing Set-Aside Monies from the Downtown
Bakersfield and Southeast Bakersfield Redevelopment Project Areas in the Old
Town Kern-Pioneer Redevelopment Project Area, and Making of Benefit
Findings in Connection Therein.
d. Agreement with Baker Street Village, LLC to amend and terminate the
Disposition and Development Agreement No. RA06-017 and Amendment No.
08-010 and amendments for Baker Street Village Phase 1 and 3.
e. Owner Participation Agreement with the Housing Authority of the County of
Kern for the construction and development of Baker Street Village Phase 1
consisting of 24 units of affordable housing and 9,975 square feet of
community/commercial space.
Staff recommends approval of Consent Calendar items 3. a. through 3. e.
4. PUBLIC HEARINGS
5. REPORTS
6. DEFERRED BUSINESS
7. NEW BUSINESS
8. AGENCY STATEMENTS
9. CLOSED SESSIONS
10. WORKSHOPS
11. ADJOURNMENT
Res ully~sabmif~
lain Tan
Executive Director
A
U p
ADMINISTRATIVE REPORT
n
MEETING DATE: January 19, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3.a.
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Roberta Gafford, Secretary DEPARTMENT HEAD A~fi- -
DATE: January 7, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Minutes of the January 4, 2010 regular meeting.
RECOMMENDATION:
Staff recommends approval of the minutes.
BACKGROUND:
Lr
ADMINISTRATIVE REPORT
MEETING DATE: January 19, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3.6.
TO: Bakersfield RDA APPROVED
FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD
DATE: January 7, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Approval of department payments from December 22,. 2009 to January 7, 2010
in the amount of $56,056.15.
RECOMMENDATION: Staff recommends approval of payments totaling $56,056.15.
BACKGROUND:
Individual payments exceeding $3,500 in the above total are listed below.
Krazan & Associates Inc $ 3,764.50
Testing and Inspection services per A rmnt #07-416
First American Title Company $ 50,000.00
Down payment assistance for 606 21st Street per DAP A rmnt 09-008
SAKim G\ADMIN-BRDA\ADMIN-BRDA-AP-2010\ADMIN-BRDA-AP-01-19-10.doc 1
ADMINISTRATIVE REPORT
MEETING DATE: January 19, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3.c•
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEA
DATE: January 6, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Resolution regarding the use of Housing Set-Aside Monies from the Downtown Bakersfield
and Southeast Bakersfield Redevelopment Project Areas in the Old Town Kern-Pioneer
Redevelopment Project Area, and Making of Benefit Findings in Connection Therein.
RECOMMENDATION:
Staff recommends adoption of resolution.
BACKGROUND:
California Community Redevelopment Law (Health and Safety Code Section 33000 et.seq.), (the "Law"),
imposes specific obligations on all redevelopment agencies to respond to housing needs within their
jurisdictions, including, but not limited to, establishment of a Low- and Moderate-Income Housing Fund.
Section 33334.2 of the Law provides that the redevelopment agency may use not less than twenty percent
(20%) of all taxes allocated to it for the purposes of increasing, improving, and preserving the community's
supply of low- and moderate-income housing. Section 33334.2(g) gives the redevelopment agency the
option of using housing set-aside funds outside the project area from where they were collected, if by
resolution the legislative body and agency find use of these funds will be of benefit in another part of the
city.
Over the years, various conditions have limited the ability of private developers to provide residential
housing in Central Bakersfield. A concentration of commercial land uses, socio-economics, and limited
land suitable for housing development has stifled central housing projects in the past. New housing for
low-income families and seniors (80% and below of median income) in the central area has been
essentially non-existent.
With City assistance numerous central city housing projects are now underway. Baker Street Village
located close to the downtown, is partially completed. South Mill Creek has numerous housing projects in
predevelopment stages. All of these projects have required public financial assistance to make them
economically feasible.
Federal HOME funds were originally intended to complete Phase 1 of Baker Street Village. However, with
the proposed purchase of Phase I by the Housing Authority for the County of Kern, HOME funds cannot
be used due to the federal prohibition against HOME funding for public housing developments. Therefore,
S:\Admins\RDA\RDA Admins 2010\Hgency DT OTKP Housing Benefit Baker Street.Docx
1/6/2010 2:58 PM
ADMINISTRATIVE REPORT Page 2
it is proposed that housing set-aside funds be used as an alternative to the HOME funds. The HOME
funds originally intended for Phase I would be reallocated to a proposed South Mill Creek project, the
Chelsea Apartments. The HOME funds can be used for off-site improvements including impact fees,
permit fees and utility hook-ups and on-site construction costs.
The resolution authorizes the use of redevelopment housing set-aside monies from the Downtown
Bakersfield and Southeast Bakersfield Redevelopment Project Areas to the Old Town Kern - Pioneer
Project Area. This resolution was approved at the January 13, 2010 council meeting.
S:\Admins\RDA\RDA Admins 2010\Agency DT OTKP Housing Benefit Baker Street.Docx
1/6/20102:58 PM
li
-r ~
ADMINISTRATIVE REPORT
MEETING DATE: January 19, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3-J.
TO: Bakersfield Redevelopment Agency APP VED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEA
DATE: January 8, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Agreement with Baker Street Village, LLC to amend and terminate the Disposition and
Development Agreement No. RA06-017 and Amendment No. 08-010 and amendments for
Baker Street Village Phase 1 and 3.
RECOMMENDATION:
Staff recommends approval.
BACKGROUND:
On September 25, 2006, Baker Street Village, LLC and the Bakersfield Redevelopment Agency entered
into a Disposition and Development Agreement (DDA) RA 06-017 to develop the Baker Street Village
Project. The project located along Baker Street and north of Kentucky Street was and still is being
developed in four phases. The original developer, Southwest Consulting, formed a new limited liability
corporation, Baker Street Village, LLC to develop the project.
On August 11, 2008, by Agreement No. RA 08-10, the original DDA was amended to allow Baker Street
Village, LLC to sell two phases (Phases 2 and 4) to BSV Phase II, LLC. The original development group,
Baker Street Village, LLC, was to remain responsible for the development of Phases 1 and 3. As part of
the sale, BSV Phase II, LLC assumed from Baker Street Village, LLC all of the rights and obligations
under the DDA with respect to those portions of the DDA that are applicable and which pertain to Phases
2 and 4 of the project.
Phase 1 was under construction by Baker Street Village, LLC until construction halted last year when the
loan from United Commercial Bank was substantially reduced, creating a gap in construction financing.
An additional gap in permanent financing arose when the original development, "for sale" housing units to
low- and moderate-income buyers, was no longer viable due to the economic downswing in the housing
market. Drastic market changes necessitated Baker Street Village, LLC to re-evaluate their development
plan, timing, and product for the project.
Baker Street Village, LLC has determined the original development plan is economically infeasible and
has therefore decided to sell Phase 1 to the Housing Authority of the County of Kern and deed Phase 3
(Coronet Building lot) back to the Agency.
S:\Admins\R DA\RDA Admins 2010\Baker Street DDA Amend & Term. Docx
1/8/2010 9:07 AM
ADMINISTRATIVE REPORT Page2
The Housing Authority applied for and received an $8,059,521 Capital Fund Recovery Competition Grant
(CFRC). These monies will be used to fill the capital investment gap in the replacement "for-rent" project.
Phase 1 is the'/2 block south of Lake Street, east of Baker Street and west of Kern Street. This portion of
the project includes 24 town homes, 9,000 sq. ft. of commercial space and 13 residential lofts above the
commercial space fronting Baker Street. A June 2011 completion date is anticipated.
Phase 3 which contains the former Coronet Building will be demolished by the Agency and redeveloped at
a later date. BSV Phase II, LLC remains responsible to develop, construct, market and operate (or
contract for the operation of) Phase 2 and 4. Phase 2, the 'h-block site west of Baker Street and south of
Lake Street, will include residential and commercial. Phase 4, the '/2-block site at the northeast corner of
Baker and Kentucky streets, is reserved for a commercial tenant, such as grocery store. These phases
are not yet under construction.
S:\Admins\RDA\RDA Admins 2010\Baker Street DDA Amend & Term.Docx
1/8/2010 9:07 AM
all
r
. ADMINISTRATIVE REPORT
MEETING DATE: January 19, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3.C•
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD L
DATE: January 7, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Owner Participation Agreement with the Housing Authority of the County of Kern for the
construction and development of Baker Street Village Phase I consisting of 24 units of
affordable housing and 9,975 square feet of community/commercial space.
RECOMMENDATION:
Staff recommends approval.
BACKGROUND:
Baker Street Village, Phase I was under construction by Baker Street Village, LLC until construction halted
last year when the loan from United Commercial Bank was substantially reduced, creating a gap in
construction financing. Subsequently, an additional gap in permanent financing arose when the original
development of "for sale" housing units to low- and moderate-income buyers was no longer viable due to
an economic downswing in the housing market. Due to these unforeseen circumstances, the private
developer has agreed to sell the project to the Housing Authority of the County of Kern ("Owner").
The Housing Authority has applied for and received an $8,059,521 Capital Fund Recovery Competition
Grant (CFRC). These funds will be used for the construction of the "for-rent" affordable family project
which is targeted to be under construction by June, 2010. The Bakersfield Redevelopment Agency has
committed $4,962,188 from Cal HFA and redevelopment low-mod housing funds for acquisition and
construction costs. The Housing Authority has obtained and executed an option to purchase the project
with the developer. The developer will in turn sell the project to the Housing Authority for $3,100,000. The
Housing Authority will use $7,500,000 of the CFRC funds for the construction and the remaining $559,521
in CFRC funds will be used for contingency and administration.
Phase I will consist of 24 newly constructed three-bedroom townhomes at 1,893 square feet each with
underground garages, and 13 one-bedroom loft style units at 1,130 square feet each, located above 9,975
square feet of community/commercial space. The project is ready to proceed with all public approvals in
place. Phase I has a June 2011 completion date. When completed, Phase I will be operated and
maintained by the Housing Authority for a minimum of 55 years.
S:\Admins\RDA\RDA Admins 2010\Housing Authority OPA Baker Street DL Comments. Docx
1/7/2010 2:36 PM
ADMINISTRATIVE REPORT Page2
Baker Street Village Phase II, LLC remains responsible to develop, construct, market and operate (or
contract for the operation of) Phases II and IV. Phase II, the 1h-block site west of Baker Street and south
of Lake Street, will include residential and commercial components. Phase IV, the '/z-block site at the
northeast corner of Baker and Kentucky streets, is reserved for a commercial tenant, such as grocery
store. These phases are not yet under construction. Phase III contains the former Coronet Building which
will be demolished by the Agency and developed at a later date.
S:\Hdmins\RDA\RDA Admins 2010\Housing Authority OPA Baker Street DL Comments.Docx
1/7/20102:36 PM