HomeMy WebLinkAbout05/10/10 RDA AGENDA
v o BAKERSFIELD REDEVELOPMENT AGENCY AGENDA
REGULAR MEETING OF MAY 10, 2010
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 20, 2010 special meeting.
b. Approval of department payments from April 9, 2010 to April 29, 2010
in the amount of $241,116.82.
C. Amendment No. 3 to Agreement No. RA03-012 with Parkview Cottages, LLC
for the development of 74 affordable residential units known as Parkview
Cottages located at the corner of 21 st Street and R Street.
d. Resolution to find that Fiscal Year 2010-11 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.
Staff recommends approval of Consent Calendar items 3. a. through 3. d.
4. PUBLIC HEARINGS
a. Public Hearing to consider Resolutions Adopting the 2009/2010 to 2013-14 Five
Year Implementation Plans for the Downtown, Old Town Kern-Pioneer and
Southeast Bakersfield Project Areas.
Staff recommends adoption of Resolutions.
b. Public Hearing to consider the following;
1. Resolution approving the Sale of Real Property, located at the corner
of East California Avenue and South Robinson Street ( a portion of
parcel #018-040-02) by the Bakersfield Redevelopment Agency, for
$1.00 to Clinica Sierra Vista, a non-profit corporation.
2. Disposition and Development Agreement with Clinica Sierra Vista, a
non-profit corporation, for the construction and development of an
approximate 3,863 square foot Dental Clinic located at the corner of
East California Avenue and South Robinson Street.
Staff recommends adoption of Resolution and Disposition and Development
Agreement.
5. REPORTS
a. Legislative update regarding the Supplemental Revenue Augmentation funds
(SERAF) lawsuit for 2010 and new strategic plan for redevelopment.
b, Update status of Baker Street Mixed Use Project
C. Update status of Mill Creek Project
6. DEFERRED BUSINESS
7. NEW BUSINESS
a. Proposed Budget for the Bakersfield Redevelopment Agency (RDA) - Fiscal
Year 2010-11.
Staff recommends approval and transmittal to City Council.
8. AGENCY STATEMENTS
9. CLOSED SESSIONS
10. WORKSHOPS
11. ADJOURNMENT
Res tfully s ► ed
andy /
Executive Director
BAKEn
COFPOR4
ADMINISTRATIVE REPORT
cyL~i0~
MEETING DATE: May 10, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3.a.
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Roberta Gafford, Secretary DEPARTMENT HEAD
c
DATE: April 29, 2010 GENERAL COUNSEL
A -Al-
EXECUTIVE DIRECTOR
SUBJECT: Minutes of the April 20, 2010 special meeting.
RECOMMENDATION:
Staff recommends approval of the minutes.
BACKGROUND:
0 42~
V ~ d
ADMINISTRATIVE REPORT
10
MEETING DATE: May 10, 2010 AGENDA SECTION: Consent Calendar
ITEM:
TO: Bakersfield RDA APPROVED
FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD
DATE: April 29, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Approval of department,payments from April 9, 2010 to April 29, 2010
in the amount of $241,116.82.
RECOMMENDATION: Staff recommends approval of payments totaling $241,116.82.
BACKGROUND:
Individual payments exceeding $3,500 in the above total are listed below.
California Utility Consultants Inc $ 12,250.00
Design and consulting services era rmt #BRDAO-008
Housing Authority of the Count of Kern $ 33,401.41
Baker St. Village Phase I draw request era rmt #RA10-003
California Eminent Domain Law Group $ 4,401.60
Legal services era rmt #BRDA08-018
Creekview Villas LLC 22,594.66
Disbursement request era rmt #RA09-001
University of La Verne 6,000.00
Semi-annual installment of Real Property interest era rmt #RA07-001
Creekview Villas LLC $ 113,826.43
Disbursement request era rmt #RA09-001
Mercy Housing of California 32,381.09
Madison Place rehab draw request #4 era rmt #RA09-005
City of Bakersfield 5,615.25
Planning fees for Creekview Villas tract ma
SAKim GIADMIN-BRDA\ADMIN-BRDA-AP-201 MADMIN-BRDA-AP-05-10-10.doc 1
,ADMINISTRATIVE REPORT
MEETING DATE: May 10, 2010 AGENDA SECTION: Consent Calendar
ITEM:
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEA
DATE: April 29, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Amendment No, 3 to Agreement No. RA03-012 with Parkview Cottages, LLC for
the development of 74 affordable residential units known as Parkview Cottages
located at the corner of 21 Si Street and R Street.
RECOMMENDATION:
Staff recommends approval.
BACKGROUND:
On May 9, 2003 the Bakersfield Redevelopment Agency entered into an agreement with
Parkview Cottages, LLC for the development of 74 affordable residential units. Parkview
Cottages, LLC has completed phase 1 and 2 of the project which consists of the construction
of 45 affordable residential units. Due to the general economic downturn, construction on
phase 3 was stalled. Before the economic downturn the developer was successful in selling 30
of the units to affordable homebuyers, however 15 of the units remained unsold and vacant
for the past two years. In July of 2009, the developer reduced the prices of the homes
substantially and began an aggressive marketing strategy which has led to the sale of the
remaining constructed units.
The developer and staff have negotiated new terms and conditions to extend the time for the
developer to complete the construction of the final 29 affordable residential units in phase 3.
Under the terms of this amendment, the developer will construct on a schedule, a minimum of
two units to be built as speculative homes at all times within an approximate 4 month
construction period. In addition, prior to the sale of each home a Certificate of Occupancy
will be issued and 2 more homes constructed until the completion of the project. Construction
on Phase 3 will begin within 60 days of approval of this Agreement. It is anticipated that it may
take as long as four years to build, market and sell to qualified buyers the remaining 29 units.
In addition, if at any time prior to the completion of the construction and sale of the 29 units,
the Developer ceases active construction and marketing of the project for a period of greater
S:\Admins\RDA\RDA Admins 2010\ amend #3 Parkview.doc
4/29/2010 4:06 PM
--ADMINISTRATIVE REPORT Page 2
than 12 months then the Project will be considered abandoned and the Agency will have the
right to exercise its option to repurchase any unsold lots for the price of one (1) Dollar per lot
and retain all construction plans and related documents.
Construction financing will be provided by the developer. The Agency will continue to
provide down payment assistance to continue to make the project affordable to eligible
borrowers. Completion of the entire project is anticipated for 2014.
S:\Admins\RDA\RDA Admins 2010\amend #3 Parkview.doc
4/29/20102:20 PM
HA
ADMINISTRATIVE REPORT
MEETING DATE: May 10, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3. d
TO: Bakersfield Redevelopment Agency AMROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEA
DATE: April 29, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Resolution to find that Fiscal Year 2010-11 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.
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.
For fiscal year 2010-11, the Agency has budgeted $108,117 in the Housing Funds for planning and
administrative services for housing related projects. The elimination of the Economic and
Community Development Department's General Fund Budget resulted in planning and
administrative expenditures previously paid through the General Fund for the Redevelopment
Agency to be shifted to the Redevelopment Low and Moderate Income Housing Funds. These
appropriations are supported by the high level of affordable housing development activity
currently underway.
Attached is a resolution finding that planning and administrative costs are necessary for the
production, improvement, or preservation of low-and moderate-income housing for fiscal year
2010-11.
S:\Admins\RDA\RDA Admins 2010\Bak RDA Housing Fund 10-11.doc
4/29/2010 12:17 PM
ADMINISTRATIVE REPORT
MEETING DATE: May 10, 2010 TAGENDA SECTION: Public Hearings
ITEM:
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L, Kunz, Deputy Executive Director DEPARTMENT HEX~W
DATE: April 29, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Public Hearing to consider Resolutions Adopting the 2009/10 to 2013/14 Five-Year
Implementation Plans for the Downtown, Old Town Kern-Pioneer, and Southeast
Bakersfield Project Areas.
1. Resolution adopting the 2009/10 to 2013/14 Five-Year Implementation Plan
for the Downtown Bakersfield Redevelopment Project Area
2. Resolution adopting the 2009/10 to 2013/14 Five-Year Implementation Plan
for the Old Town Kern-Pioneer Redevelopment Project Area
3. Resolution adopting the 2009/10 to 2013/14 Five-Year Implementation Plan
for the Southeast Bakersfield Project Area
RECOMMENDATION:
Staff recommends conducting the public hearing and approve resolutions adopting the 2009/10
to 2013/14 Five-Year Implementation Plans for the Agency's Downtown, Old Town Kern-Pioneer,
and Southeast Bakersfield Project Areas.
BACKGROUND:
In 1993, the State of California enacted Assembly Bill 1290 adding Section 33490 to the California
Community Redevelopment Law ("Law"). Section 33490 of the Law, requires Five Year
Implementation Plans ("Plan") to include the following for each project area :
• Specific Agency goals and objectives for the Project Area.
• Specific programs, potential projects, and estimated expenditures proposed by the Agency
over the five-year planning period,
• An explanation of how Agency goals, objectives, programs, and expenditures will eliminate
blight within the Project Area and improve and increase the supply of housing affordable to
very low, low, and moderate income households.
SAAdmins\RDA\RDA Admins 2010\2010 Public Hearing Implementation plans.docx
4/29/2010 2:38 PM
ADMINISTRATIVE REPORT Page 2
The Law also requires the Plan to address the Agency's affordable housing production and
replacement housing needs and achievements, These items are specifically addressed in the
Housing Component of the Plan.
The Plans serve as a blueprint for current and future Agency activities to eliminate blight and the
Agency's implementation of its low and moderate income housing obligations under the Law
within the Project Areas for the five year period from 2009/10 to 2013/14 ("Planning Period").
The Plans are divided into two separate components: a Redevelopment Component and a
Housing Component. The Redevelopment Component addresses the following issues:
• Reviews the goals and objectives of the Project Area;
• Identifies the Agency's strategy to achieve these goals and objectives;
• Presents the projects, programs and expenditures (other than those relating to low and
moderate income housing) that have been developed as a means to attain the goals and
objectives; and
• Describes how the goals and objectives, projects, programs and expenditures will eliminate
blight within the Project Area.
Additionally, pursuant to Section 33490 of the Law, the Plan must explain how the Agency will
meet its various requirements regarding low and moderate income housing which are contained
in the Housing Component of the Plan.
The Housing Component addresses the following areas:
• Outlines how the Agency intends to implement the requirements of the Law regarding the
use of the tax increment for affordable housing; and
• Identifies any unmet obligations for affordable housing; and
• Shows how the Agency's goals and objectives for low and moderate income housing
preservation and production will be implemented.
The Plan is a guiding tool for the Agency and is not intended to obligate and commit Agency
funds to any specific projects or programs. It was prepared to set priorities for redevelopment
activities within the Project Areas for the five-year period covered by the Plan and incorporates
the currently known financial resources and constraints in developing a program of activities to
accomplish the Agency's goals. However, challenges and opportunities are commonly
encountered during the course of administering the Plan during the five-year period and
therefore, the Plan may be amended if necessary,
Redevelopment Activities
The Agency will undertake projects and activities in the Project Areas over the next five years to
alleviate blighting conditions and achieve its goals and objectives. The projects are designed to
remove economic and physical blight while promoting the generation of revenue and
employment in the Project Areas. The activities to be undertaken by the Agency include
property acquisition, business retention and attraction, commercial rehabilitation, and assistance
with on-site and off-site public improvements if necessary for the redevelopment of inadequate
and underutilized property as well as obsolete, unsafe, and nonconforming structures.
S:\Admins\RDA\RDA Admins 2010\2010 Public Hearing Implementation plans.docx
4/29/20102:38 PM
ADMINISTRATIVE REPORT Page3
The Agency will be focusing its activities over the next Planning Period to address any high
concentration of older, inadequate, and nonconforming uses. Additionally, the Agency is
targeting economic blight by promoting the attraction of retail and service operations that are
currently lacking in the community, and that will service the daytime population, as well as the
residents of the City, Necessary commercial amenities such as pharmacies, restaurants, and
commercial retail shops will be the main uses within redeveloped commercial centers,
Affordable Housing Activities
The Agency will achieve its affordable housing goals to create and preserve affordable housing
by meeting the housing requirements set forth by the Law during the 2010-2014 Planning Period.
The following housing goals were developed using the goals and activities set forth in the Housing
Element:
• Create and promote home ownership and improved housing facilities for individuals and
families.
• Encourage the coordination of services provided by public agencies and other service
providers,
• Encourage the cooperation and participation of property owners, public agencies and
community organizations in the elimination of blighting conditions and the promotion of
new or improved development in the Project Areas.
FISCAL IMPACT
There is no immediate fiscal impact. The first year (fiscal year 2009/10) of the Plans and Affordable
Housing Implementation Plans includes programs, projects, and expenditures that were approved
in the fiscal year 2009/10 Agency Budget, Those for fiscal years 2010/11 to 2013/14 are shown for
planning purposes only. No funds are committed at this time.
PUBLIC HEARING
Notice of Public Hearing was published on April 9, April 16 and April 23, 2010 as required by state
law.
S:\Admins\RDA\RDA Admins 2010\2010 Public Hearing implementation plans.docx
4/29/20102:38 PM
46
;xADMINISTRATIVE REPORT
MEETING DATE: May 10, 2010 AGENDA SECTION: Public Hearing
ITEM: b,
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Economic Development Director DEPARTMENT HEAD
DATE: April 29, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Public Hearing to consider Resolution to authorize the Bakersfield Redevelopment Agency
to sell Real Property located at the corner of East California Ave. and South Robinson St. (a
portion of parcel #018-040-02) for $1.00 to Clinica Sierra Vista, a Non-profit Corporation for
the development of an approximately 3,863 square foot Dental Clinic. (Ward 1).
1. Resolution approving the Sale of Real Property, located at the corner of East
California Ave. and South Robinson St. (a potion of parcel #018-040-02) by the
Bakersfield Redevelopment Agency, for $1.00 to Clinica Sierra Vista, a Non-profit
Corporation.
2. Disposition and Development Agreement with Clinica Sierra Vista, a non-profit
Corporation for the construction and development of an approximate 3,863
square foot Dental Clinic located at the corner of East California Ave. and South
Robinson.
RECOMMENDATION:
Staff recommends adoption of resolution, approval of sale of Real Property, and approval of the
Disposition and Development Agreement.
BACKGROUND:
On May 7th, 2008 the City of Bakersfield Economic and Community Development Department posted a
Request for Proposal & Qualifications on the City of Bakersfield's EDCD webpage to acquire and develop
the 2.69 acre commercially zoned parcel on East California Ave. between South Owens Street and
South Robinson Street. Clinica Sierra Vista expressed an interest and willingness to negotiate with the
Redevelopment Agency for the development of the property.
In August of 2009 the Redevelopment Agency entered into an Exclusive Negotiation Agreement (ENA)
with Clinica Sierra Vista 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 have been incorporated into a
Disposition and Development Agreement for the development of an approximately 3,863 square foot
dental office on the .6 acre eastern portion of the parcel. Clinica Sierra Vista applied for and was awarded
funding for the construction of the project from the American Recovery and Reinvestment Act 2009
S:\Admins\RDA\RDA Admins 2010\Clinica SV May 10 RDA Admin2.docx
4/29/2010 4:30 PM
ADMINISTRATIVE REPORT Page 2
(A.R.R.A). One of the major requirements of receiving the Stimulus funds is the applicant has to
demonstrate reasonable site control prior to the start of project construction.
1. Public Hearing
Pursuant to Section 33433 of the California Health and Safety Code, the Bakersfield City Council may,
after a duly noticed public hearing, authorize the Redevelopment Agency to sell or lease the property, for
development pursuant to the Southeast Area Redevelopment Plan upon a determination by the City
Council that the proposed consideration is not less than the fair reuse value of the Property, that the
disposition of the Property will assist in the elimination of blight, and is consistent with the implementation
plan adopted for the Southeast Redevelopment Project Area.
Under Redevelopment Law, Health and Safety Code Section 33433, whenever an agency disposes of
property acquired directly or indirectly with tax increment funds, the agency must sell the property for not
less than the fair market value at its highest and best use in accordance with the redevelopment plan, or at
a price not less that the fair reuse of the propose use and with the affordability covenants, conditions and
development costs authorized by the sale.
A summary report and reuse analysis prepared by GRC and Associates has been attached that reflects
that the Agency's sales price of $1.00 for the property is not less than the fair reuse value for the property
and with the required covenants and restrictions, and validated in the enclosed reuse analysis that is
based on the proposed use. The summary report and reuse analysis were available for public inspection
consistent with the requirements of Health and Safety Code Section 33433. In addition, the project will
not result in any significant effects relating to traffic, noise, air or water quality and therefore qualifies as
CEQA exempt under Section 15332 under Infill Development.
2. Disposition and Development Agreement
The City of Bakersfield will convey the .6 acre site to Clinica Sierra Vista at a cost of One Hundred Twenty
Five Thousand and One Dollars. The purchase price shall be paid in $1.00 of cash and a performance
promissory note of $125,000.00. Credit towards payment of the performance note shall begin at issuance
of the certificate of completion, and the payment shall be credited each year thereafter for fifteen (15)
years of continuous operation of the dental clinic uses by Clinica Sierra Vista.
The City has also agreed to complete street improvements, including curb, gutter, a right turn lane, drive
approach, and a handicap access ramp. The street improvements will cost a total of $54,000 funded
through Southeast Tax Increment funds.
The Bakersfield City Council as the legislative body authorized the Redevelopment Agency to sell the
property at the May 5, 2010 meeting.
S:\Admins\RDA\RDA Admins 2010\clinica SV May 10 RDA Admin2.docx
4/29/20104:30 PM
ADMINISTRATIVE REPORT
MEETING DATE: May 10, 2010 AGENDA SECTION: Reports
ITEM: 5. q .
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L, Kunz, Deputy Executive Director DEPARTMENT HEAC(W
DATE: April 29, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Legislative update regarding the Supplemental Revenue Augmentation Funds
(SERAF) lawsuit for 2010 and new strategic plan for redevelopment.
RECOMMENDATION:
No action required,
BACKGROUND:
Staff will provide a legislative update regarding the SERAF lawsuit for 2010 in addition to the new
strategic plan for redevelopment.
S:\Admins\RDA\RDA Admins 2010\SERAF lawsuit 2010 update.docx
4/29/2010 3:25 PM
k ADMINISTRATIVE
REPORT
MEETING DATE: May 10, 2010 AGENDA SECTION: Reports
ITEM:
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD
DATE: April 27, 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.
S:\Admins\RDA\RDA Admins 2010\Baker Street update 051010.docx
4/27/2010 8:58 AM
ADMINISTRATIVE
,,.r 1dr REPORT
MEETING DATE: May 10, 2010 AGENDA SECTION: Reports
ITEM:
TO: Bakersfield Redevelopment Agency APPROVED
FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD
DATE: April 27, 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.
S:\Admins\RDA\RDA Admins 2010\Mill Creek update 051010.docx
4/27/2010 9:01 AM
ADMINISTRATIVE REPORT
MEETING DATE: May 10, 2010 AGENDA SECTION: New Business
ITEM: 1. q
TO: Bakersfield Redevelopment Agency APP ED
FROM: Donna L. Kunz, Economic Development Director DEPARTMENT HE D
DATE: April 30, 2010 GENERAL COUNCIL
EXECUTIVE DIRECTOR
SUBJECT: Proposed Budget for the Bakersfield Redevelopment Agency (RDA) - Fiscal Year
2010-11
RECOMMENDATION:
Staff recommends the Agency authorize the transmittal of the Fiscal Year 2010-11 RDA budget to
the City Council for approval.
BACKGROUND:
Attached is the proposed Bakersfield Redevelopment Agency Budget for Fiscal Year 2010-11,
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 2010-11 in addition to key highlights of
redevelopment project activity.
Redevelopment Aaencv Proposed Budget Fiscal Year 2010-11
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.
Major changes based on the reductions in the general fund budget for Fiscal 2010-11 include the
reallocation of staff salaries and benefits according to area of benefit within the three
redevelopment areas; resulting in an increase in total salaries of over $741,000 in the
redevelopment funds. In addition, pending the outcome of the California Redevelopment
Association law suit against the State of California regarding the State Educational Revenue
S:\Admins\RDA\RDA Admins 2010\RDA FY10-11 Budget Admin.dom
4/30/20101:59 PM
ADMINISTRATIVE REPORT Page 2
Augmentation Fund (SERAF), $2,780,190 has been set aside to be paid May of 2010 should the
CRA not prevail. For fiscal year 2010-11, $600,000 has been budgeted for the SERAF state take.
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,
Residential Development Loan Program Site Acquisition for Creekview Villas Townhomes, and
2009 RDA Bonds Series A & B.
Highlights of the redevelopment budget proposed for Fiscal year 2010-11 include the following
appropriations:
Downtown Redevelopment Project Area
The Downtown Project Area has budgeted $125,000 for the Downtown Enhancement Program,
including lighting, banner replacement, maintenance, and trolley service; $50,000 for graffiti
removal in the Downtown Redevelopment area; and $600,000 for affordable housing projects in
the Downtown Redevelopment area.
Old Town Kern Redevelopment Project Area
The Old Town Kern Project Area has budgeted $50,000 for professional and consulting services for
Old Town Kern Redevelopment Projects and $300,000 for affordable housing projects in the Old
Town Kern Redevelopment area.
Southeast Redevelopment
The Southeast Project Area has budgeted $100,000 for outside legal counsel and relocation
services for Southeast Redevelopment projects; $50,000 for graffiti removal in the Southeast
Redevelopment area; and $200,000 for affordable housing projects within the Southeast
Redevelopment area.
Focus on Implementation of Redevelopment Protects in the Mill Creek Area FY 2010-11:
South Mill Creek
There are 5 major redevelopment projects in the Mill Creek Area that are in the implementation,
pre-construction or construction phase for fiscal year 2010-11. Currently, staff is marketing the
Village at Millcreek, a proposed 65,000 square feet of commercial space for retail, restaurants,
community events, and neighborhood services. The South Millcreek Affordable Apartments, a
70-unit mid-rise garden style affordable rental complex is anticipated to begin construction in the
Fall of 2010 with completion of the project in the Fall of 2011.
The Bakersfield Redevelopment Agency amended the Disposition and Development Agreement
with Chelsea Investment Inc. to develop seventy (70) units of affordable mid-rise multi-family
apartments urban market rate apartments. Chelsea Investment Inc. anticipates finalizing building
permits and lender/investor financing during the summer of 2010, with construction to start in
December 2010. Completion is estimated to be December 2011.
The Disposition and Development Agreement with Southwest Consulting to develop the
Creekview Villas consisting of thirty-six (36) for-sale condominiums and the Mill Creek Courtyard
consisting of fifty-seven (57) units is moving forward. Southwest Consulting encountered
S:\Hdmins\RDA\RDA Admins 2010\RDA FY10-11 Budget Admin.docx
4/30/20101:59 PM
ADMINISTRATIVE REPORT Page 3
numerous obstacles in obtaining construction financing due to the persistent economic crisis.
Therefore, the Agency recently approved amendments to both Disposition and Development
Agreements, to borrow $1.5 million from the Millcreek Courtyard affordable mid-rise apartment
project, to provide a cash flow loan for construction of the first 14 units of the Creekview Villas
townhomes. The Developer will be required to pay back the entire loan from sales proceeds
from the first 14 units, or construction on the Millcreek Courtyard project will not be permitted.
The Millcreek Courtyard project is deferred up to 36 months to allow additional time for
repayment of the cash flow loan from the sales of the Creekview Villas townhomes. Construction
on the Creekview Villas is anticipated to begin in May 2010. In addition, staff is currently working
with a local engineering firm and landscape architect to provide engineering design, surveying,
landscaping, and preparation of construction documents for construction of the interior streets
within the South Millcreek project area. Funds for these improvements will mostly be paid from
the State of California, Infill Infrastructure grant secured in 2009.
19th Street Plaza (OTK-P)
The final area of focus includes the 19th Street Plaza which is a mixed use project including office,
commercial and residential space adjacent to the Mill Creek Linear Park. The site has been
cleared and graded, but construction is on hold pending the developer obtaining the financing
for the construction loan. Due to tight lending practices, securing the loan has been difficult.
When completed, the project will offer 67 units of affordable senior rental housing, a food court,
and a 132 space parking garage.
On-going Redevelopment Activity:
The Parkview Cottages - Single Family Housing Project (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 41 units leaving 4 pre-constructed units to sell. Staff hopes to have these escrows
closed by the end of the July 2010.
Staff has negotiated an amendment to the disposition agreement requiring the
developer/builder to construct two speculative homes at a time and continue to build out the
development as the houses sell. With this revised schedule the project should achieve sellout in
four years or less.
Baker Street - Old Town Kern Mixed Use Project (OTK-P)
Baker Street Village Phase 1 is moving forward, with the purchase of the project by the Housing
Authority of the County of Kern from the previous developer. The Housing Authority received a
federal grant that will enable it to complete the construction of 37 units of affordable housing.
Construction is expected to resume in September 2010.
South Mill Creek Plaza
Maya Cinema Complex opened its doors in July 2009 and has sold 420,000 tickets since opening.
When complete, the $32 million dollar South Mill Creek Plaza will include a 78,140 square foot 16
screen state of the art movie theater and 25,000 square feet of retail and commercial space
including restaurants. The project is located south of the railroad tracks between California
S:Wdmins\RDA\RDA Admins 2010\RDA FY10-11 Budget Admin.docx
4/30/20101:59 PM
ADMINISTRATIVE REPORT Page 4
Avenue, "M" Street, and "P" and "Q" streets, on approximately 8.4 acres. The commercial
component of the project has been delayed due to a lack of construction financing.
State of California Infill Infrastructure Grant
The Bakersfield Redevelopment Agency was awarded a $10.8 State of California, Infill
Infrastructure grant to provide funding to assist with the costs of construction, rehabilitation,
demolition, acquisition, or other infrastructure improvements in the Mill Creek Area. Specifically,
the 171h/18th Street Mill Creek Plaza, 201h Street Parking structure, Q Street Streetscape, interior
street improvements for South Mill Creek and the Friendship Gardens in Central Park. These
infrastructure improvements support higher-density affordable and mixed-income housing in
locations designated as infill within the Mill Creek Qualifying Infill Area. Construction on these
projects will commence as soon as the funds are released by the State of California.
SAAdmins\RDA\RDA Admins 2010\RDA FYI 0-11 Budget Admin.dom
4/30/20101:59 PM