HomeMy WebLinkAbout04/20/10 RDA AGENDA
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BAKERSFIELD REDEVELOPMENT AGENCY AGENDA
SPECIAL MEETING OF APRIL 20, 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 March 8, 2010 regular meeting.
b. Approval of department payments from February 26, 2010 to April 8,
2010 in the amount of $2,837,704.65.
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 the Mill Creek Project.
6. DEFERRED BUSINESS
7. NEW BUSINESS
a. Agreement to purchase real property from Cain AME Church for three parcels
located east of "R" Street for property located at 700 California Avenue and
1231 "R" Street in the amount of $534,000.
Staff recommends approval.
b. Amendment No. 1 to Agreement No. RA09-004 with Mill Creek Courtyard LLC,
for the development of a 57 unit multi-family apartment complex in the South
Mill Creek Mixed Use Redevelopment Project providing for the interim use of
$1.5 million of project funds to be used to provide construction financing for
Phase 1 of the Creek-View Villas Townhomes.
Staff recommends approval.
7. NEW BUSINESS CONT.
C. Amendment No. 2 to Agreement No. RA09-001 with Creekview Villas, LLC,
($1,500,000 in an amount not to exceed $5,638.121) for the construction and
Development of 14 units, phase 1 of 36 affordable multi-family townhomes in
the South Mill Creek Mixed Use Redevelopment Project.
1) Authorize a construction loan advance in the amount of $1,500,000 from
the Mill Creek Courtyard, LLC; and
2) Authorize a contribution of $933,120 for necessary offsite construction
improvements.
Staff recommends approval.
8. AGENCY STATEMENTS
9. CLOSED SESSIONS
10. WORKSHOPS
a. Preview of the Budget for the Bakersfield Redevelopment Agency (RDA) -
Fiscal Year 2010/11.
11. ADJOURNMENT
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Alan TanExecutive
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ADMINISTRATIVE REPORT
MEETING DATE: April 20, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3.a.
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Roberta Gafford, Secretary DEPARTMENT HEADW94) AF
DATE: April 7, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Minutes of the March 8, 2010 regular meeting.
RECOMMENDATION:
Staff recommends approval of the minutes.
BACKGROUND:
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ADMINISTRATIVE REPORT
MEETING DATE: April 20, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3 . ~D.
TO: Bakersfield RDA APPROVED
FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD Al-'5
DATE: April 9, 2010 GENERAL COUNSEL Ae)
EXECUTIVE DIRECTOR /~r/
SUBJECT: Approval of department payments from February 26, 2010 to April 8, 2010
in the amount of $2,837,704.65.
RECOMMENDATION: Staff recommends approval of payments totaling $2,837,704.65.
BACKGROUND:
Individual payments exceeding $3,500 in the above total are listed below.
Meyer Civil Engineering, Inc 10,185.74
Pre of plans andspecs for phase 4 & 5 Mill Creek era rmnt #08-044
Tierra West Advisors 6,997.50
Professional services eragreement BRDA 09-018
Creekview Villas, LLC 242,395.70
Civil Engineering services for Pinnacle eragreement RA#09-001
GRC Associates, Inc 4,560.00
Professional services eragreement BRDA # 10-005
HDL Coren & Cone 15,000.00
Property analysis eragreement BRDA #08-020
Chicago Title Company 50,000.00
Down a ment assistance eragreement DAP # 10-001
Gilliam & Sons 18,165.40
Demolition at 730 California Ave eragreement #09-114
Pacific Gas & Electric 14,917.78
Electric distribution and service extension for Mill Creek
Tierra West Advisors 6,833.75
Professional services eragreement BRDA 09-018
US Bank 2,453,975.00
Bakersfield refunding COP- Series A & B principal and interest due
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ADMINISTRATIVE REPORT
MEETING DATE: April 20, 2010 AGENDA SECTION: Reports
ITEM: S.r1.
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD
DATE: March 31, 2010 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 Mixed Use Project.
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ADMINISTRATIVE REPORT
MEETING DATE: April 20, 2010 JAGENDA SECTION: Reports
ITEM: 95-b.
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD
DATE: March 31, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Update status of the Mill Creek Project
RECOMMENDATION:
No action required.
BACKGROUND:
Staff will provide an update on the Mill Creek Project.
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ADMINISTRATIVE REPORT
MEETING DATE: April 20, 2010 AGENDA SECTION: New Business
ITEM:
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD
DATE: April 14, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR 17
SUBJECT: Agreement to purchase real property from Cain AME Church for three parcels located east
of "R" Street for property located at 700 California Avenue and 1231 "R" Street in the
amount of $534,000.
RECOMMENDATION: Staff recommends approval.
BACKGROUND:
The property is located adjacent to the Mill Creek public improvements west of "R" Street and is an
integral piece of property needed to complete the South Mill Creek improvement plans along "R" Street
and California Avenue in conjunction with the public improvements already constructed, and to
compliment the future South Mill Creek housing developments planned for the area. Current plans
include the creation of additional linear park enhancements and public parking including handicap parking
spaces
The Bakersfield Redevelopment Agency staff met with leaders of Cain AME Church over the past year
and expressed interest in acquiring the three contiguous assessor's parcels. The property's frontage along
California Avenue provides good visibility, with full access available to the property from "R" Street
frontage as well. One parcel is currently a dirt section of land that is bisected by the canal and is fenced
along the canal, the property identified as 700 California Avenue is currently leased to a transmission
repair shop whose lease expires December 31, 2013. The building is 6,000 square feet, rectangular in
shape, and contains a land area calculated at 8,719 square feet. The 1231 "R" Street building is 2,000
square feet; the property comprises 3,827 square feet and is presently leased to a funeral home for
vehicle storage on a month to month basis. Other improvements considered include a small 6' chain link
perimeter fenced site area that is located between the California Avenue and "R" Street buildings. The
purchase price does not include all relocation costs and any potential goodwill claims. Staff is working
with a relocation consultant to coordinate the relocation process.
The owners have agreed to sell the property to the Redevelopment Agency for an amount of $534,000.
Valuation of the subject property was derived by an MAI, SRA certified appraiser of the firm Karpe Fisher
Merriman, Inc. The appraiser considered the cost, income, and sales comparison approach to valuation,
however, due to the characteristics of the property, which comprises older building improvements, the
income approach was deemed most appropriate.
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ADMINISTRATIVE REPORT
MEETING DATE: April 20, 2010 AGENDA SECTION: New Business
ITEM: "l. .
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD
DATE: April 12, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Amendment No. 1 to Agreement No.RA09-004 with Mill Creek Courtyar ALLC for
the development of a 57 unit multi-family apartment complex in the South Mill
Creek Mixed Use Redevelopment Project providing for the interim use of $1.5 million
dollars of project funds to be used to provide construction financing for Phase 1 of
the Creek-View Villas Townhomes.
RECOMMENDATION: Staff recommends approval.
BACKGROUND:
The Developer has encountered numerous obstacles in obtaining construction financing for both
the 57 unit Courtyard Apartment Project and the adjacent 36 unit Creekview Villas townhome
development planned in the South Mill Creek Village. This financing difficulty is primarily due to
the upheaval experienced in world financial markets causing the current economic crisis. This
has directly resulted in banks being unwilling to loan funds for commercial and residential
development without significant equity.
In 2007, the Agency secured a commitment of $3,000,000 of funds from CaIHFA to assist with land
acquisition and for construction costs of the 36 unit Creekview Villas townhome development.
The Agency has drawn down $1,000,000 for land acquisition, leaving $2,000,000 available for the
construction costs. In 2009, a one year extension was obtained from CaIHFA for the expenditure
of these remaining construction funds. CaIHFA has recently informed staff that no further time
extensions will be allowed and that these remaining funds must be fully expended by August 29,
2010 or we risk their loss. It is imperative that the Creekview Villas development commence
construction immediately in order to meet this expenditure deadline associated with these funds,
A construction phasing plan has been created for Creekview Villas starting with 14 units as the
first phase. To achieve the development of this phasing plan, an additional $1.5 million dollars in
construction funds are required and will be combined with the CaIHFA funds providing a total of
$3.5 million dollars needed for construction. Since the Agency does not have any uncommitted
resources on hand to provide the $1.5 million cash flow loan to the Developer for the Creekview,
Villas project, staff is proposing the interim use of a portion of the funds that are currently
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ADMINISTRATIVE REPORT Paget
earmarked by contract for the Mill Creek Courtyards project. The developer is in agreement with
this proposal and phasing plan,
To provide the cash flow loan funds it is necessary to amend both the Mill Creek Courtyards
development agreement and the Creekview Villas development agreement, Below are the key
points that are included in the proposed Mill Creek Courtyards Amendment # 1:
• The agreement development timeline for Mill Creek Courtyards is extended for an
additional 3 years.
• The Developer is allowed to "borrow" up to $1.5 million dollars from the Mill Creek
Courtyards project for interim construction use for Phase 1 of Creekview Villas at 0%
interest cost,
• The Developer will repay the Agency the Mill Creek Courtyard loan advance of $1.5
million in the amount of $107,143 per Creekview Villas unit sale through escrow settlement.
• The Agency will not replenish or substitute funds for the Mill Creek Courtyards development
in the event the Creekview Villas units remain unsold.
• Creekview Villas will be completed and sold (36 units) prior to commencement of
construction of Mill Creek Courtyards unless the Developer obtains private financing to
construct both projects concurrently.
Staff recommends approval of Amendment # 1 for the Mill Creek Courtyards development
agreement under the terms and conditions outlined above.
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ADMINISTRATIVE
REPORT
MEETING DATE: April 20, 2010 AGENDA SECTION: New Business
ITEM: 'I - C.
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L, Kunz, Economic Development Director DEPARTMENT HEAK'
DATE: April 12, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Amendment No, 2 to Agreement No. RA09-001 with Creekview Vill s, LC,
01,500,000 in an amount not to exceed $5,638,121) for the construction and
development of 14 units, phase 1 of 36 affordable multi-family townhomes in the
South Mill Creek Mixed Use Redevelopment Project.
1) Authorize a construction loan advance in the amount of $1,500,000 from the Mill
Creek Courtyard, LLC; and
2) Authorize a contribution of $933,120 for necessary offsite construction
improvements.
RECOMMENDATION:
Staff recommends approval,
BACKGROUND:
On July 23, 2007 the California Housing Finance Agency and the Bakersfield Redevelopment
Agency entered into a $3,000,000 residential loan agreement to assist with site acquisition
($1,000,000), and construction assistance ($2,000,000), for the development of Creekview Villas
(Creekview), a 36 unit affordable family townhome development, The loan is for a period of five
years at 3% simple interest, has to be expended by July 23, 2009, and must be repaid by July
2012. To date $1,000,000 has been drawn down from the loan for site acquisition. Previously the
Agency requested and received a one year extension on the use of the $2,000,000 construction
assistance funds. The deadline to drawdown and commit the funds is July 23, 2010 or the
Agency will lose the remaining construction assistance and the loan will be cancelled, The loss
of these funds for the project would be catastrophic to the development as it would be nearly
impossible in this challenging economy to replace the $2.0 million for construction in the near
future. The threat of the loss of these funds is the primarv reason for the amendment to the DDA
The Developer for both the Creekview Villas and the Courtyard Apartments has encountered
numerous obstacles in obtaining construction financing for both projects planned in the South
Mill Creek Village. This financing difficulty is a direct result of the persistent economic crisis and
the banks being unwilling to loan funds for commercial and residential development without
significant equity,
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ADMINISTRATIVE REPORT Page 2
To provide a catalyst for development, staff has developed a construction phasing plan for the
Creekview Villas starting with 14 units as the first phase, To achieve the development of this
phasing plan, an additional $1.5 million dollars in construction funds are required and will be
combined with the Cal HFA funds referenced above providing a total of approximately $3.5
million dollars for construction. Since the Agency does not have any uncommitted resources on
hand to provide the $1,5 million cash flow loan to the Developer for Creekview, staff is proposing
the interim use of a portion of the funds currently earmarked for the Millcreek Courtyards. In
addition, as the 14 units are sold a significant portion of the sales proceeds will be returned to the
Agency for reinvestment in future phases. The Courtyard project will not begin construction until
the entire Creekview Villas project is constructed and the units are sold. Therefore, a 3 year
extension is being requested for the Courtyard project under separate consideration on this
agenda.
Staff is requesting approval to amend Disposition and Development Agreement RA09-001 for the
Creekview Villas. Significant action items to the amendment are as follows:
1. Developer Note for Housing Construction and Land: the $1,000,001 land purchase
price assistance and the $2,588,848 construction assistance will be secured by a
revised note and deed of trust. The Agency will provide a cash contribution to the
project for direct construction costs in the amount of $911,152. Total housing
construction and land contribution equals $4,500,001,
2. Infrastructure Improvements: authorize an Agency contribution up to $ 933,120 from
matching funds required for the Prop 1 C grant to contract for the construction of the
Project's required streets and off-site improvements for the 14 units in Phase 1 to include
curbs, gutters, landscaping, trees and lighting. The improvements will be constructed
at prevailing wage.
3. Authorize the Developer to borrow $1.5 million from the Millcreek Courtyard project, to
provide a cash flow loan for construction of the first 14 units of the Creekview Villas
townhomes. This amount is included in the total housing construction budget
referenced in action item # 1 above.
4. A portion of the construction assistance ($184,918 per unit) will be repaid to the
Agency as the first 14 units are sold. These funds will be reinvested into future phases
for the completion of the remaining 22 units.
5. Authorize an advance to the Developer up to one hundred percent (100%) for
Predevelopment Expenses and Construction costs.
6. Require all investors on title to subordinate to Agency's new $1.5 million cash flow loan
to the Creekview Villas project.
If this amendment is approved, construction on the Creekview Villas is anticipated to begin in
May 2010.
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- ..,r ADMINISTRATIVE REPORT
MEETING DATE: April 20, 2010 AGENDA SECTION: Workshop
ITEM: 16. A.
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD C
DATE: April 12, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Preview of the Budget for the Bakersfield Redevelopment Agency (RDA) - Fi al
Year 2010/11.
RECOMMENDATION:
No action required,
BACKGROUND:
Staff will provide a preview presentation of the RDA Budget for the Fiscal Year 2010/11, The full
budget presentation will be given at the May 10, 2010 meeting.
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